CCP terms meat price mechanism ineffective in country

Recommends regulatory mechanism for price, quality; govt-run slaughterhouses in dilapidated condition and animal slaughtering manually done under unhygienic conditions; study reveals over one million animals smuggled to Afghanistan, Iran

Islamabad

Just ahead of Eidul Azha, the Competition Commission of Pakistan (CCP) has termed price mechanism of meat as ineffective in the whole country and recommended that the regulatory mechanism for both price and quality should be improved.

The CCP in its conducted study on meat industry also revealed that there were estimates that around one million animals were smuggled to Afghanistan and Iran on per annum basis.

The study states that the meat price control mechanism is not effective. If the government decides to deregulate meat prices the problem of profiteering and hoarding will increase so meat price regulation is used as deterrence against this practice. This price control mechanism, however, needs to be made more effective and efficient. The price Competition Policy and Research Department Competition Commission of Pakistan which control mechanism to regulate meat prices at district level is ineffective and inefficient.

Since meat is an essential commodity the government regulates its prices. Meat prices are set in every six months or 12 months, but remain unregulated in the interim period. It is recommended that the regulatory mechanism for both price and quality should be improved and pricing of meat should be on the basis of meat quality and grading. 

Meat prices for urban and rural apply to all retailers whether in the formal or informal sector. These prices, however, in the formal and the informal sector differ by a large scale. The district food authorities have a mechanism of fining where the retailers of meat charge exorbitant profits. These fines range from Rs1000 to Rs100,000 however charging higher than the regulated meat price by the district authorities is a common practice by the meat retailers.

The price regulation of the meat sold in formal sector is weak as a result the meat prices are higher. Meat quality is improved nonetheless to make the meat industry more efficient and competitive price monitoring, as a consequence, needs to be more vigorous to ensure availability of quality meat at affordable prices for the consumers. 

The government-run slaughterhouses are in dilapidated condition and animal slaughtering is manually done under unhygienic conditions which pose severe consequences to human health. Conditions of slaughterhouses in the private sector are better therefore it is recommended there should be public-private partnership to run the government slaughterhouses. This will bring efficiency as well as improve animal slaughtering. 

There is no slaughterhouse is Islamabad and the meat butchers/retailers use the local government slaughterhouses of Rawalpindi which are overburdened and unable to meet the growing animal slaughtering of the two cities. 

These slaughterhouses of Rawalpindi are understaffed to check the health of animals before animal slaughtering and to ensure hygiene while handling the meat animals and the animal waste. It is, therefore, recommended that Islamabad should have an independent slaughterhouse to meet the growing needs of the capital city. 

There are financial constraints to enter this sector, therefore, easy access to credit must be available to farmers at small as well as at corporate level to improve livestock production and enhance quality meat availability in the meat market. 

Training of farmers is vital to increase per animal meat production. The government should train farmers at grassroots level where most of the meat production takes place. Small workshop should be conducted in villages to train rural farmers about animal breeding, disease control, feed and fodder and animal sale. 

Survey to Rawalpindi-Islamabad slaughterhouse: one veterinary doctor also working as general manager of the slaughterhouse, to check the health of around 500-600 animals before slaughtering. The Rawalpindi-Islamabad Slaughterhouse at Sihala built in 1967 over 17-acre land is in a dilapidated condition and has total staff of 13. 

One main issue in the meat sector still remains the accessibility of farmers to the markets. Animal markets across Pakistan are limited in number and located at extended distances from the farmers who are discouraged to bring their animals to these mandis (markets). Farmers, therefore, sell their animals at low prices to the middlemen who in turn bring them to animal mandis for sale and sell them at high profit margins. To make meat market more competitive the numbers of animal markets need to be increased so that farmers can easily access them and get their due reward from the sale of these meat animals. This will result in lower profits of the middlemen and higher rewards for the farmers and at the same time meat prices will become more competitive as increased number of farmers will bring their animals for sale to markets. 

Export of animals including live animals and animal meat is done and its permit is given by the Ministry of National Food Security and Research (MNFSR). However, smuggling of animals to neighbouring Afghanistan is a common problem. Export of animals should be limited as meat is an essential food item and the government must ensure it availability at affordable price to domestic consumers. This is an issue highlighted by the association of meat retailers for higher domestic meat prices.