07-04-2012, 11:23 AM
Livestock Slaughterhouse Pre‐Feasibility Study
Afghan_Slaughterhouse_Pre-Feasibility_Study_ADB-RBSP_November_2008.pdf (Size: 689.29 KB / Downloads: 93)
INTRODUCTION
This pre‐feasibility study forms part of the technical preparation for the Commercial Agriculture
Development Project (CADP). During the Project Preparation Technical Assistance (PPTA) of CADP,
the Livestock Specialist looked into the livestock related value chains. He found that in most places
livestock markets are haphazardly placed in urban areas with animals staying overnight in special
accommodations, and that, in most cases, slaughtering takes place in the open without any
provisions to guarantee quality and safety of the product. The processing of livestock by‐products,
such as intestines, hides and skins, is only partially done in Afghanistan while the highest value
adding steps occur in neighbouring countries.
COMMERCIAL AGRICULTURE DEVELOPMENT PROJECT (CADP)1
The PPTA report identified project interventions that focused on the development of competitive
and sustainable agribusinesses by removing constraints facing agribusinesses that occur throughout a
number of product value chains from the farm gate to the consumer. This will be achieved by: (i)
information support and match‐making assistance from Regional Agribusiness Centers set‐up in six
regions; (ii) core and value train training through a training‐of‐trainers approach; (iii) a Value Chain
Resource Fund to support research and demonstrations, technology transfer sub‐projects, the
development of feasibility studies and business plans (through links with Business Development
Providers), pubic‐private partnerships, in particular for abattoirs, and environmental mitigation
measures (including waste water treatment facilities); (iv) improving access to credit via technical
support for participating financial institutions and a $20 million credit line
CURRENT LIVESTOCK SLAUGHTERHOUSE SITUATION AND OUTLOOK
Agriculture’s Role in the Afghan Economy
Afghanistan’s agriculture sector contributes to about 53% of the GDP, over $500 million of exports of
mostly horticultural and livestock products, and provides employment for two thirds of the labor
force. The growth in agricultural production between 1979 and 2004 has, however, been meager,
only 0.85% per year. However, growth in the horticulture (mostly perennial horticulture) and
livestock sub‐sectors has started to increase at a much faster rate in the past few years as improved
rainfall, irrigation infrastructure, husbandry practices, and disease control have facilitated better
growing conditions. Such annual growth, i.e., 6‐8%, in these sub‐sectors is characterized by an elastic
demand both domestically and regionally.
Livestock Farming
Livestock farming has been traditionally the mainstay of many Afghans. Most farming systems in
Afghanistan, except the Kuchi system, are still of a mixed livestock and agriculture nature, which has
proven to be one of the most robust and shock resistant farming systems.
Buffalo and Cattle
Cattle production is concentrated mainly in the settled production system, in which families keep 1‐2
cows. The animals are important for the production of manure as fuel, calves for future animal
traction or fattening and sale / slaughter. Most young stock is slaughtered at a very young age with a
weight of around 100kg, probably so young and light because of shortage of feed for over wintering
and / or to maintain the family’s cash flow. Most local cattle, except in the peri‐urban areas and
around the areas of former state dairy farms, are of the traditional “Vatani” (local) breed and have an
adult live weight of anything between 180 and 300kg. With their size most butchers, who usually do
not have working cooling facilities, can sell a carcass in one day.
Peculiarities of the Afghan Livestock and Meat Sector
Financing of the Value Chain
Most operators in the value chain work with the money of others. It appears that the farmers and
the hides, skins and intestine traders are the main providers of cash to the other stakeholders. This
system of pre‐financing means that farmers are in many cases left waiting for their cash. Livestock
traders have “down‐time” in town until the butcher has sold the meat of the animal sold to him and
the hides, skins and intestine traders have considerable amounts of money outstanding before they
have procured their goods.
Customer Preference for “Warm” Meat
Afghans measure the freshness of meat by the temperature. This probably is related to traders trying
to sell defrosted meat as being fresh (e.g. de‐boned buffalo meat from India) or a remnant from the
times that every household slaughtered its own animals. Special cuts and price differentiation for the
different qualities are unknown.
Fragmentation and Little Development Potential for the Value Chain
Most traders and butchers work with small numbers of animals but have relatively high overhead
costs, slow turn‐over and high wastage. Investments, under the current conditions of no electricity
and no improved slaughter facilities, are not profitable.
Simple Value Chain and Little Value Addition
The main stakeholders in the value chain are farmers, livestock traders, butchers, and consumers.
Animals pass through the chain in small quantities at the time. For this reason, nobody has started to
bringing large quantities of animals into the market and to produce wholesale carcasses, since the
whole chain is geared towards small batches. The possibilities for value adding through deboning and
preparing cuts have not been exploited. There is no evidence of local sausage making.
SUPPLY OF LIVESTOCK AND DEMAND FOR MEAT
Potential Provinces Identified
The Livestock Chapter of the MAIL’s Master Plan identified 10 provinces (Badakhshan, Balkh, Faryab,
Ghazni, Herat, Kabul, Kandahar, Kunduz, Nangahar, Paktia) for the construction of slaughterhouses.
Data for both provincial and capital city populations suggests that the ten identified provinces
capture the main urban population centres, the exception being Baghlan province with the urban
centres of Pul‐i‐Khumri and Baghlan (see attached Table 1.1).
Indicative Provincial Capital City Demand
The estimated annual number of animals slaughtered in Kabul is 240,000 large ruminants and
1,000,000 small ruminants. This gives an annual figure of 68,000 mt of red meat, based on carcase
weights of 200 kg and 20 kg for large and small ruminants respectively. This result in an indicative
annual per capita consumption of 20 kg, based on a city population of 2.5 million, This per capita
consumption figure should be treated with caution but serves to give a basis for estimating provincial
urban capital city demand for red meat.