Master of Business Administration
Faculty / School
Faculty of Business Administration (FBA)
Project Coordinator (Internal)
Dr. Nasir Afghan, Asad Ilyas, Salma Mirza
Engro Foods Limited
Committee Member 1
Ameer Rizvi, Institute of Business Administration, Karachi
MBA Research Project
Abstract / Summary
The proposed project consists of an analysis on a fattening cattle farm and a modern abattoir complete with a meat processing unit. Beef fattening project is an agricultural enterprise where young calves of average ten to eighteen months age are reared for a period of four months (120 days). Animals are fed on high protein; carbohydrates, fat & energy concentrate within a mixture of green fodder and/or silage also known as TMR (total mixed ration). Finished cattle of high end meat quality would then be sent to the slaughter house for processing and then the meat exported to international markets. Currently, Pakistan’s Sanitary and Phytosanitary (SPS) standards, animal disease status, traceability and food hygiene standards are major limiting factors to expanding the international reach of exports. Therefore, the global Halal markets are largely untapped by Pakistan. Malaysia (a key member of the ASEAN) is willing to import meat from Pakistan backed by the recent Free Trade Agreement (FTA) and because Pakistan’s livestock are grass fed and 100% halal. The scale of opportunity for meat exports from Pakistan to the GCC is substantial and liable to grow in the short to long-term future. Pakistan, due to its proximity to the GCC can export meat in chilled (fresh) form, which commands higher prices from consumers. Businesses that choose to respond in a forward-looking manner to the opportunity presented by a growing global halal meat demand have ample rewards to reap. Processed halal meat, slowly beginning to be perceived as an “ethical, premium product” in formal trade is attracting the secular meat consumers too. Halal meat, if the raw materials are high quality, and if the Halal guidelines are correctly followed, should be among the highest quality produce available anywhere. Correct Halal slaughter means less blood in the carcass, less toxin and bacteria content in the meat; it is safer, healthier and has a longer shelf life, and despite the negative image of Halal slaughter, when done correctly, it is less traumatic for the animals. Major players at the moment are secular (non-muslim majority) nations like India – Lowest cost producer, Brazil – Lowest value for money global producer and Australia/New Zealand as the highest quality producers of disease free animals. Though the challenges surrounding the sourcing of cost effective and quality centered livestock products in Pakistan is indeed high, and the threat of trade embargoes arising especially from disease outbreaks extremely disruptive to export; the opportunity for Engro to enter into meat processing and export marketing is nevertheless promising. The promise arises out of the fact that the livestock supply can surely be improved with the collaboration of the private and public sector, that the GCC (an agriculturally handi-capped region) is in very close proximity to Pakistan and the fact that demand for animal source foods in the domestic market is also rising. In conclusion, the Pakistani market with its huge supply of cattle holds promising future for exports to the international arena. The exploratory study gives thumbs up to Engro to enter the processed meat industry by establishing a modern slaughter house in the short run with the option on starting a fattening farm in the long run.
Shaikh, A. W., Shahzad, F., Khalid, M. H., Tariq, S., & Channa, Z. (2011). Exploratory study of halal meat processing plant Engro Foods Ltd (Unpublished graduate research project). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/research-projects-mba/184
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