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SOW Title and Work Plan Action:

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Chemonics International, Inc.

Office of Economic Opportunities

USAID Pakistan

September

Ian Auldist

Khyber Pakhtunkhwa Livestock Policy Framework

USAID Pakistan FIRMS Project

Provincial Livestock Policy Framework

Work Plan Level 33550 Action #6435, SOW #1901

The views expressed in this publication do not necessarily reflect the views of the United States

Agency for International Development, the United States Government or Chemonics

International Inc.

Data Page

Name of Component: Business Enabling Environment (BEE)

Author’s Name: Ian H. Auldist

Key words: Animal welfare, breed improvement, dairy, disease surveillance, extension, livestock, markets, meat processing, quality assurance, policy,

Abstract

Current livestock policies in Khyber Pakhtunkhwa are analyzed, and impacts and distortions identified. Based on survey data and stakeholder analysis specific policy impacts are assessed, and effects on livestock markets and meat processing identified. A policy framework is presented using principles drawn from international best practice, which provides a basis for public sector institutional reform, and increased participation and efficiency of the private sector.

Abbreviations and Local Terms

ACIAR

ADB

ADHIS

AI

AMPC

APVMA

AQIS

ASEAN

Australian Centre for International Agricultural Research

Asian Development Bank

Australian Dairy Herd Improvement Scheme

Artificial insemination

Australian Meat Processor Corporation

Australian Pesticides and Veterinary Medicines Authority

Australian Quarantine and Inspection Service

Association of South East Asian Nations

CCPP

DAGRIS

EU

FAO

FMD

GDP

Ha

Halal

Contagious Caprine Pleuropneumonia

Domestic Animals Genetic Resources Information System

European Union

Food and Agriculture Organisation

Foot and Mouth Disease

Gross domestic product

Hectare

Islamic Law permissible food designation

JAKIM Department of Islamic Development Malaysia

KPK Khyber Pakhtunkhua

L&DD Dept Livestock and Dairy Development Department

LOG

Mandi

MLA

MTDF

Local Government Ordinance

Marketplace

Meat and Livestock Australia

Mid Term Development Framework

NAREEAB National Agricultural Research and Extension Advisory Board

NGO Non Government Organisation

NVD

NWFP

National Vendor Declaration

North West Frontier Province

PPR Peste des Petits Ruminants

PROGEBE Regional Project on Sustainable Management of Endemic Ruminant Livestock

Rs

RSPCA

Rupees

Royal Society for Prevention of Cruelty to Animals

TMA

UNDP

USAID

UVAS

Tehsil Municipal Administration

United Nations Development Programme

United States Agency for International Development

University of Veterinary and Animal Sciences

Table of Contents

SectionI. Introduction

Section II Methodologyfor KPK Policy Development

2

Section III KPK policy background

1. Livestock industry context

2. Provincial government livestock functions

3. Policy reflected in budget priorities

4.Current livestock industry policies

5. Genetic improvement and indigenous breed conservation

6. Disease surveillance and treatment

7. Extension and capacity building

8. Research and development

9. Animal welfare

10. Livestock feed

12.Existing policy reviews

11. Rangeland management and pastoralism

Section IV International livestock policy models

1. Disease surveillance and prevention

2. Disease treatment

3. Vaccine production

5. Extension services

4. Feed production and monitoring

6. Breed conservation and improvement

7. Research and development

8. Livestock marketing

9. Meat processing and marketing

10.Government farms

11. Animal welfare

12. Rangeland management

Section V Policy principles based on international practice

Section VI. Proposed policy reforms for key areas of livestock sector

Section VII. Policy framework

References

Appendices list

10

12

30

30

31

31

29

29

29

30

32

33

33

34

35

16

23

24

25

13

13

14

16

25

25

26

26

28

37

39

44

60

61

Executive Summary

Livestock industry potential in KPK is constrained by distortions and imbalances in the policy and regulatory framework which have created inefficiencies in the planning, management and development of livestock infrastructure, facilities and services. The private sector is also affected by restrictions from entering areas of business dominated by government, such as livestock market management, and slaughter and processing for domestic consumption, limiting incentive to develop markets, create demand, and increase economic activity. Although there is potential for increased growth, demonstrated by the increase in dairy and meat price indices over the last ten years, the current policy environment has helped to reduce economic performance to a level which is unacceptable under the current conditions of demand. In this context the extension service also fails to meet the needs of producers, who supply markets where demand is limited by current policies and lack of quality assurance.

In response to this situation a range ofinternational policy models weredraw on to establish principles on which to base a new policy framework. These principles are as follows:

Elimination of market distortions through restriction on competition

Creation of a demand-driven approach to markets

Recognition that there is a cost for goods and services

Elimination of resource allocation distortions through public ownership of business entities

Representation for stakeholders in industry decisions

Industry self-regulation

Independence of regulatory bodies

Sustainable use of resources

Independent policy for social and economic disadvantage

Recognition of cultural attitudes

Using these principles policy recommendations were made for a number of key areas of livestock policy. These recommendations are listed as follows:

1. Disease surveillance and prevention

Surveillance and epidemiological analysis to be a core responsibility of government.

Institutional surveillance data collection to include mainstream industry sources such aslivestock markets and slaughterhouses.

Facilitation of private sector producers to provide routine information to government regarding disease incidence.

A specific agency at provincial level to address disease prevention issues

Interim need for a mechanism to provide prevention and control services to specific disadvantaged areas of the industry including subsistence producers.

2. Disease treatment

The public sector to maintain the responsibility for disease epidemic control

An independent body to undertake livestock medicine registration and labelling, to ensure that users including producers and private veterinarians comply with safe use, dosage rates, and with-holding periods, and provincial government to regulate through incentives and penalties to ensure compliance with labelling protocols.

A regulatory framework to include dispute resolution and accountability of veterinarians.

KPK government to maintain support for subsistence producers in disease treatment and control by providing training, availability of quality medicines, and a sustainable mechanism for delivering community livestock health services.

3. Vaccine production

Review of vaccine needs, identifying demand and assessing ability of industry sectors to pay

Facilitation of private sector entry through licensing, where commercially viable, vaccines to be imported or produced by the private sector while essential non-commercial vaccine production to be supported by the public sector.

An independent body and regulatory framework responsible for vaccine registration, standards and enforcement.

KPK Government vaccine production to be limited to essential non-profitable production.

4. Feed production and monitoring

Facilitation of trade in non-manufactured feeds/forage

An independent feed test laboratory to provide objective quality analysis, and use it as a basis for developing improved livestock nutrition

KPK Government to develop the capacity to establish a quality assurance process with vendor declaration procedures for non-manufactured feeds.

5. Extension services

Legislate mechanisms to enable funding of extension from industry contributions.

KPK Government to develop livestock production extension services, improving delivery through out-sourcing, and facilitating capacity development of private extension providers.

KPK Government to develop mechanisms to deliver extension services to subsistence production sector.

6. Breed improvement

Review cost-benefits to industry of current public breed improvement programs.

Regulate and develop standards for private semen production and imported and traded semen, and provide technical support for commercial breed development organisations.

Develop protocols for preservation of indigenous breeds.

KPK Government to support growth of a viable private sector breeding industry with appropriate breed standards.

7. Research and development

Research to be managed by an independent body which assesses and prioritizes projects, and links funding donors with stakeholders.

The independent coordinating body to have representation from government, funding agencies and industry end-users

Research agencies to compete for funding.

8. Livestock marketing

Legislate to enable competition from the private sector to hold livestock markets, with redefinition of the roles of various operators, and coordination by an independent regulatory entity, representing the major stake holders.

KPK government to establish market practices and standards, market information collection and distribution, and collection of levies from market participants to fund market development, infrastructure and facilities.

The private sector to operate markets within the KPK regulatory framework; markets to be economically sustainable based on fee for services.

9. Meat processing

Legislate to enable competition from the private sector to undertake domestic meat processing.

Repeal meat price regulation, and legislation which prohibits slaughter of useful animals and institutes meatless days.

Establish an independent body to provide accreditation for slaughter and processing facilities and ensure compliance with developed standards in all licensed processing plants.

10 Government and private farm management

Review all government participation in commercial livestock production, in terms of current function, and activities for the public good, determining criteria and standards for operation

Develop guidelines for future involvement in public/private partnerships and joint ventures.

Facilitate industry representation mechanisms to enable effective consultation and industry advice to government.

11. Animal welfare

Involve the community in assembling a code of practice for animal welfare in markets, slaughter, transport, research, and commercial production, including nutrition and management of farm animals

KPK government to facilitate and coordinate compliance with the code of practice by a selected animal welfare body.

Enlist animal welfare organizations to monitor and report neglect and cruelty.

12. Environmental protection

Set standards and regulate to ensure no negative effects on the environment as a result of livestock management, transport, marketing or processing, or disposal of waste associated with activities such as feedlots and intensive livestock industries.

Develop the capacity of the KPK Environment Department to undertake regulation and compliance activities.

13. Rangeland management

Support traditional grazing practices and management of rangelands by traditional grazing communities.

Establish management entities or Rangeland Development Advisory Bodies which include the widest range of stakeholders, including grazing community representatives, and

Forestry and Livestock Departments.

Establish practical and cost-effective ecological monitoring systems, including all nonforest wastelands and public grazing areas in monitoring and management planning.

Support livelihood interventions for traditional grazing communities, for example in the preparation and marketing of wool and hair products.

Where possible charge users with management costs.

Section I. Introduction

Livestock are important toPakistan’seconomy, with the sector’s total assets estimated to be worth more than US $19 billion. Contributing approximately 12% to the GDP 1 and more than 50% of value-added in agriculture 2 , livestock products (valued at Rs 165 billion) are assuming an increasing share of agricultural output, rising from 25% in 1996 to 52% in 2011-12.The estimated annual growth in the livestock sector of 3.7% 3 is mainly attributed to increasing value of livestock products. Dairy products contribute 75% to the total value of the sector, and a world dairy indicator price rise of 125% which occurred during the decade is background to the continued strong domestic demand for dairy products. Growthhas also been associated with developing markets.

Although world meat price rises of 86% over the past ten years have flattened since 2011, 4 meat exports from Pakistan are increasing. Export value ofmeat of US$123 millionin 2111-2012was up

14%on the previous year 5 , followed by a further 41% rise in the first seven months of 2012-

2103 6 .This trend follows India’s dominance of export beef markets since 2011 with mainly buffalo product.

7

Culturally KPKProvince is strongly associated with livestock production, as meat and milk are staple food items, andmore than 70% of families own ruminant livestock.

Rangelandoccupying46% of total land area dominates as the basis for production. Landless producers and traditional subsistence systems with informal marketing arrangements contribute to the status of KPK as the province with the highest poverty rating (39.2% rated poor compared to nationally 34.0%).As production becomes less dependent on rangeland grazing, and more on integrated crop-livestock systems, satisfying local and international demand will require increased efficiency, and transfer of resources from existing agricultural enterprises.So far modern largerscale systems have had limited impact on production, for example only 9% of buffaloes are managed on a commercial scale. Due to the high level of informal marketing and processing the contribution of livestock tothe KPK economy is difficult to measure, with one estimate 8 suggestingapproximately Rs 75 billion worth of livestock products per year, which is 30% by value 9 of the total KPK agriculture GDP.

With enterprise margins regarded as below potential in much of the industry, livestock is still treated as a sub-sector of agriculture. This potential is constrained by distortions and imbalances in the policy and regulatory framework which have created inefficiencies in the planning, management and development of livestock infrastructure, facilities and services. The private sector is also affected by restrictions from entering areas of business dominated by government, such as livestock market management, and slaughter and processing for domestic consumption, limiting incentive to develop markets, create demand, and increase economic activity. Although there is potential for increased growth, demonstrated by the increase in dairy and meat price indices over the last ten years, the current policy environment has helped to reduce economic performance to a level which is unacceptable under these conditions of demand. The extension service also fails to meet the needs of producers, who supply markets where demand is limited by current policies and lack of quality assurance.

1 ADB Report: National Agriculture Sector Strategy 2008

2

Pakistan Economic Survey 2011-12

3

Govt of Pakistan Planning Commission Report: Framework for Economic Growth 2011

4

FAO Meat Price Index

5

Business Recorder 6/6/2012

6

“The Nation” 25/5/2013

7

FAO Dairy Price Index

8

Prof M. Subhan Qureshi, Pakissan 29/4/2013

9

KPK Comprehensive Development Strategy 2010-2017

In this context the industry demands a framework which will redefine the role of government, and that of private sector stakeholders. This will allow stakeholders currently lacking the capacity to optimize the productivity and profitability of livestock to take advantage of existing demand, generate more economic activity, and use resources more rationally.

A policy reviewto create such a framework is important in the setting ofadditional responsibilities for provincial government as a result of the Eighteenth Constitutional Amendment in June 2011, which devolved most of the subjects in the Concurrent List, transferring the power to legislate on these subjects to the provinces. With the Provincial Legislature able to adopt, amend or repeal federal laws on these subjects, the fate of some existing laws, for example involving prevention of transfer of livestock diseases between Provinces, has become uncertain. The amendment also gave

Provinces the authority to directly deal with donors and to borrow from international financing agencies such as the World Bank and the Asian Development Bank.

To meet these challenges, the Government of KPK in 2013 asked FIRMS Project of USAID for assistance with policy development. This followed reviews in 2011 of livestock policies for the governments of Punjab, Sindh and Baluchistan and development ofpolicy frameworks based on international best-practice. Frameworks with long and short-term policy optionswere accepted by

Punjab, wheretwonew draft laws are currently being reviewed. Sindh and Balochistan have also accepted the policy principles developed with FIRMS Project, and are proceeding in the policy reviewprocess.

Section II. Methodology for KPK policy development

The FIRMS Project,with a background in policy development, hasanalytical capacity and valuable networks in each province. Added to experience working with governments, FIRMS Project is strategically positioned to understand provincial issues, and to use that experienceto achieve constructive outcomes.To take advantage of this intra-provincial learning FIRMS Project has deployed the same procedurewith KPK as that usedfor policy reviews in the other provinces. The same FIRMS team was mobilized, and as in the other provinces it was regarded as essential to have a thorough understanding of industry functionto enable identification of crucial factors limitingpolicy effectiveness.

The team included an Australian livestock policy specialist with experience in a number of countries as well as Pakistan, a legal specialist, Dr Dil Mohammad, to reviewthe general legal framework and legal instruments, and local expertise with capacity to survey and report on key areas.Background data relating to existing policy was assembled, and research initiated into important policy constraints for the industry. Trading and processing of the animals which form the main industry asset were seen as key areas where data was needed to understand policy breakdown. The experienced research team used to investigate the Punjab and Sindh livestock markets was deployed in KPK, with the object of analyzing market function and its relation to policy. In addition the team addressed the functioning and limitations of the slaughtering and processing sector.

Research was also undertaken to achieve an appreciation of the roles and responsibilities of sector participants, including those of provincial government leaders from KPK. Stakeholders interviewed included government officers at a range of levels, technical specialists, producers and producer organization representatives, female livestock professionals, environmental interest groups, and development program managers.

10 Data from these sources was complemented by specific L&DD Department policy and strategy statements, provincial economic reviews, and specialist evaluations of relevant issues.

Specific tasks in the consultant’s Scope of Work are listed as an appendix: 11

10Appendix 2 Record of Meetings and Interviews

11Appendix 1 FIRMS Project Consultancy Scope of Work

Section III KPK policy background

1.Livestock industry context

The industry is based on livestock populations which are poorly documented because of informal slaughter practices, unrecorded movements across international and provincial borders, a high degree of mobility associated with nomadic or transhumant grazing practices, and absence of data collection associated with industry facilities such as markets and slaughterhouses.As a result there is poor knowledge and documentation of parameters such as reproductive efficiency, turnoff, and mortality, which are essential for developing policy which addresses industry constraints and advances performance.

Table 1 KPK livestock population trends

1960

1972 12

1976

1986

1996

2006 13

2012 14

1960-2012% increase

1996-2006 % increase/year

2006-2012 % increase/year

Cattle

Buffaloes Sheep Goats Total

3.20 million 0.65 million 2.43 million 5.03 million 11.31million

2.96

3.00

3.28

4.24

5.97

7.43

132%

4.08%

3.28%

0.79

0.76

1.27

1.39

1.93

2.29

252%

3.82%

2.63%

2.45

3.67

1.60

2.82

3.36

3.60

48%

1.92%

1.1%

3.74

4.69

2.90

6.76

9.60

11.24

123%

4.19%

2.43

9.94

12.12

9.05

15.21

20.86

24.56

117%

3.71%

2.96%

2006-2012 increase/year

243,000 60,000 40,000 273,000 616,000

There is also limited data regarding animal flows in and out of KPK. The analysis by Shahid and

Arqum 15 in 2010 estimated that 682,550 buffaloes, 485,450 cattle, 57,670 sheep, and 37,960 goats enter KPK from Punjab per year. Dry buffaloes and young cattle predominate, followed by pregnant buffaloes destined for dairy production. Their estimate of animals which are legally exported live from KPKwas 25,000 per year 16 . In comparison an industryassessment of total animals illegally exported from Pakistan is 2.5 million 17 , with a large proportion assumed to leave from KPK. However most of the animals illegally exported from KPK to Afghanistan are understood to originate from Punjab 18 . Formal slaughter activities account for possibly 800,000 animals,but due to lack of data regarding the flow of KPK sheep and goats supplying Punjab markets,and lack of informal slaughter and illegal live export numbers,an accurate model of industry dynamics is difficult to construct.

12

TRTA II “Enhancing Livestock Sector Competitiveness”

13

Pakistan Bureau of Statistics

14

KPK L&DD Dept pers. Com. 2013

15

Shahid and Arqum (2010)

16

Shahid and Arqum (2010)

17

PAMCO quoted Shahram Haq Express Tribune 28 th A

18

KPK L&DD Dept, pers.com 2013

To construct a balance sheet, estimates of natural increase are difficult. Using the Census data in

Table 2, and assuming that there is a significant slaughter of cattle and buffaloes between birth and three years of age,it can be estimated that the total annual natural increase from breeding lies somewhere between 5.04 and 9.05 million animals. The turnoff, or number of animals slaughtered or exported from KPK, taking into account mortality, inflows and population increase would also approach this figure.

Table 2: KPK livestock breeding performance

Total number at census

Cattle 5.96

Buffaloes 1.93

Sheep 3.36

Goats 9.60

Total 20.85

2006

(millions)

Breeding

Females

Natural increase if reproduction rate is 80%

3.04 >3 years 2.43

1.09 >3 years 0.87

1.64 >1 year 1.31

5.55 >1 year 4.44

11.32 9.05

Total male and female animals below breeding age

3.07<1 years

6.85

Approx. actual natural increase(and est. reproduction rate)

1.97 <3 years 0.65 (21%)

0.74 <3 years 0.25 (22%)

1.07 <1years 1.07 (65%)

3.07 (55%)

5.04

The above discussion highlights the lack of reliable data for planning. One definite conclusion is that livestock numbers have more than doubled over the past twenty years, and animal populations continue to increase, although the rate of increase has fallen slightly. Thesustained cattle increases of more than 240,000 per year, and sheep and goats of more than 310,000 per year obviously have impacts on resources, particularly the environment, onlivestock disease, marketing and valueadding industries, and on government service needs.

2.Provincial government livestock functions

The Livestock and Dairy Development Directorate, which is part of the Agriculture Department, lists its functions on its website as follows:

 Provision of animal health facilities and services to livestock farmers through curative and prophylactic measures; establishment and maintenance of veterinary hospitals, dispensaries and centers in functional order.

Improvement of local breeds of cattle and buffalo through the provision of artificial insemination service to the livestock farmers; establishment and maintenance of artificial insemination centers and sub-centers.

Provision of livestock production extension services to the livestock farmers (and female farmers in selected cluster areas) through a network of veterinary institutions.

Provision of periodical in-service training to the departmental staff in animal husbandry, extension and animal health disciplines; practical pre-service training to Veterinary

Assistant students of Agricultural Training Institute (ATI), Peshawar; training to field staff, male and female livestock farmers for various NGOs and projects in livestock management and related subjects.

Establishment of livestock breeding farms for propagation of improved breeds of different livestock species, wherever feasible.

Improvement of poultry production through the establishment of demonstration- cum-egg

 production farms.

Provision of services to Local Government Department in the meat inspection by

 conducting ante-mortem and post-mortem examination of animals.

Undertaking livestock development related activities in collaboration with donor assisted area development projects and NGOs

The animal health and extension services are the same, delivered through 218 centres. The livestock breeding farms consist of Harichand farm for cattle, D.I.Khan for buffalo, and Jaba

Livestock Research Station for sheep. There is one government poultry farm at Peshawar. Meat inspection services are provided at 13 local government slaughterhouses. There is currently one

NGO assisted, the Sarhad Rural Support Program.

The Veterinary Research Institute lists its duties as:

Control of Poultry and Livestock diseases of economic and zoonotic importance.

Enhancement of Livestock Productivity per unit targeted at poverty alleviation, women development and improvement in human diet.

Assistance to the Universities in Academic Research.

Human Resource Development for generating self-employment and capacity building for establishing commercial enterprises.

Cooperation with Wildlife, Health and other Departments in areas of common interest

The L&DD Department has also responsibility for implementing specific projects including:

1. Preservation of indigenous breeds (Achai cow project).

2. Pastoralism unit.

3. Pastoral development projects: Burawei-Haripur and Mahodand-Khadokhei .

4. Disaster (flood) recovery.

Apart from flood recovery, these are recently-funded projects, initiated in response to government policy direction.

3.Policy assumptionsfrom budget indicators

Livestock policy prioritization is reflected in the delegation of funds towards particular activities.

This is summarized in Table 2 which lists the available figures for delegation of provincial funds towards Livestock Department activities.

Table 3: Livestock share of Annual Development Program budget

2008-9 ADP 2011-12

ADP

2012-13 ADP

Agriculture allocation (Rs million)

Agric. share of total ADP

715

1.7%

1355

1.6%

1470

1.5%

Livestock allocation (Rs million) 217 670 380

Livestock share of Agriculture ADP 30% 45% 26%

19

Taking into account the lack of a Development Program in 2009-10, there has been a downward trend in livestock’s share of the budget, despite the livestock industry’s strong potential for growth.

Funding detail has reflected policy attention to specific areas. In the 2011-12 ProgramLivestock extension received Rs 240million for ongoing and new schemes,which included the Achai cattle conservation and development project which started in 2009 with a requirement for Rs 222 million and was allocated in 2011 Rs 42 million. It also included a livelihood program for gender-based interventions intended to provide female livestock owners with training, animals and better communication,which was allocated Rs25 million.Small ruminants were a focus, through a goat and sheep research centre in Swat with Rs 70 million allocated to improving local goat species through crossing with high-quality foreign species, a project for preservation and development of local sheep in Hazara and Malakand costing Rs 25 million, and establishment of Barani research institutes for goat and sheep.

In the allocations for 2012-13 the most significant new itemout of the Rs 380 million was the allocation of Rs 150 million towards establishment of a Pastoralism Unit, with the aim of conservation and support for traditional transhumant livestock production systems. The other significant allocation indicated attention to ways of supporting small the transition of farmers into business entities, through theMeat and Dairy Development withMarket Linkages project which was allocated Rs30 million.

4.Current livestockindustry policies

4.1 Meat industry

4.1.1 Livestock markets

FIRMS commissioned in 2013 a Livestock Rapid Market Appraisal to provide a detailed study of

KPK slaughter houses and markets, and their operation.

20 KPK livestock markets cater for a series of live animal flows which service industry trade and slaughter needs. There are no large terminal markets (see Table 3) as in Punjab, there are only primary collection and secondary distribution markets. For example these enable traders to purchase sheep and goats to transport from KPK to

Punjab to meet demand for mutton. Old buffaloes transported from Punjab are also available in

19

KPK Planning and Development Department Annual Development programs

20

Appendix 1: Shahzad Saftar, KPK Livestock Rapid Market Appraisal

secondary markets in KPK to meet demand for low-priced beef and the illegal live trade to

Afghanistan. Younger cattle also flow in to meet demand for slaughter and export of beef to

Afghanistan..

Table 4 Livestock Market Characteristics 21

Type of Market Main Sellers Main Buyers Purpose of Purchase

Primary markets collection

Secondary distribution markets

Producers/traders

Producers/traders

Other producers For stock replacement or fattening

Local butchers

Traders

Slaughtering for retail selling of meat

For resale in larger markets

Other producers/ farmers For stock replacement or fattening

Local butchers Slaughter

Terminal markets Traders

Traders/buying agents

Local houses/butchers slaughter

Traders/exporters

Dairy farmers

For resale in terminal markets/supply to processors, dairy farmers and exporters

Slaughter for local supply as well as for export

For supply to different buyers/export

For dairy farms

KPK livestock markets have been controlled exclusively by Local Government, under West

Pakistan Municipal Committees (Cattle Market) Rules 1969.The subject was so exclusively vested in the Local Government, under Local Government Ordinance 2001, that the Provincial

Government had no role; and its authority did not extend to cattle markets. This defect has been removed, with the 2001 ordinance replaced by the KPK Local Government Act, 2012, which allows the Provincial Government to frame rules in all matters and empowers it to control the making of by-laws by the local government. 22

Table 5: Livestock markets administered by Local Government in KPK

S # District Number of Livestock Location/ Schedule

Markets

1.

Abbotabad

2.

Bannu

3.

Buner

1

2

3

Havalian (Wednesday)

Bannu (Friday), Kakki(Wednesday)

Swari (Saturday), Nagri (Tuesda)y, Budhal (Wednesday)

4.

Charsadda

5.

D.I.Khan

3

6

6.

Haripur

7.

Karak

8.

Kohat

9.

Lakki

10.

Malakand

11.

Mansehra

12.

Mardan

13.

Nowshera

14.

Peshawar

15.

Swabi

16.

Swat

1

5

3

4

1

3

2

1

7

4

2

Utmanzai (Tuesday), Charsadda (Wednesday), Shabqadar (Friday)

Ramak (Friday), Browa (Wednesday), D.I.Khan (Friday), Paharpur (Sunday),

Daraban Kalan (Friday), Kulachi (Monday)

Near District Council, Haripur (Thursday)

Takhtte Nasratti (Saturday), Ahmad Abad (Friday), Mayanki Banda

(Monday), Karak City (Sunday), Latambar (Wednesday)

Near Kohat Stand (Sunday), Lacchi (Friday), Bili Tang (Sunday)

Khudad Khel (Sunday), Sarai Naurang (Thursday), Fezu (Tuesday), Tajori

(Tuesday)

Dargai Bazaar (Sunday)

Mansehra (Monday), Shinkiari (Saturday), Garri Habibullah (Sunday)

Mardan (Saturday), Shabaz Gari (Sunday)

Main Road near Kabul River (Wednesday)

Sarband (Thursday), Nasir Pur (Saturday, Monday), Badabher (Saturday),

Palosai (Friday), Warsak Road (Tuesday), Ringroad (Saturday, Wednesday),

Naguman (Monday)

Swabi (Thursday), Karnal Sher kalli (Saturday), Tordher (Tuesday), Topi

(Wednesday)

Aman Kot (Thursday), Matta (Wednesday)

21

Appendix : Shahzad Saftar, KPK Livestock Rapid Market Appraisal

22

Preliminary KPK Legal Report: Dr Dil Mohammad

Source:- Livestock and Dairy Development Department, Peshawar, KPK.

This control has in the past enabled Local Governments to generate considerable revenue, by selling the rights to market management to private contractors, who have the right to charge market users. Although under LGO 2001 there is allowance for private livestock markets, in practice

Local Government has a monopoly, and as a result there is no competition from private entities to lower costs or provide better services.

Table 6: KPK livestock market charges 23

Sr. # Livestock Market

1. Bakra Mandi, Main

Road Near Kabul

River, Nowshera

(Public market)

2.

3.

Nasir Pur, Peshawar

(Private Market)

Havelian,

Abbottabad

(Public market)

Type of animals

Traded

Sheep and Goat

Large animals -

Buffalo and cattle

Large and small animals

Charges on Entry

(Rs.)

From producer

Rs. 20/animal.

From trader

Rs. 15/animal

From producers or trader carrying one or two animals

Rs. 100/animal

From other Traders

Rs. 500/load of 10 animals

Rs. 10/animal from every one for each type of animal

Charges on Transaction (Rs.)

From producers

7-10% of value

From Traders

Rs. 100-700/animal

From seller

Rs. 200/animal

From Trader buyer

Rs. 500-700/load of 8 animals and from buyer buying 1 or 2 animals Rs. 200-300/animal

Producer buyer 7% for all types of animals.

Traders/butchers pay Rs. 250-300/animal for sheep & goat and 7% for all types of large animals

4. Mardan

(Public market)

Large and small animals

Rs. 10/animal from every one for each type of animal

5. Aman

Mingora, Swat

Kot,

(Public market)

Large and small animals

Rs. 20/animal from every one for each type of animal

Producer buyers pay 7-10% per animal

Trader buyers pay Rs. 150-250/small and Rs.

600-700/large animal.

Producers buyers pay 10% of value while traders/butchers pay Rs. 150-170/small and

Rs. 600-650/large animal

The Terms and Conditions of the market contract include details the value of contract, payment schedule and schedule of charges which the contractor may charge.The survey of KPK markets provides some idea of the potential to generate income from a market. As detailed in Table 4 there are two types of market charges: entry and transaction. Entry charges may be Rs 10-20 per small animal, and Rs 100-200 for large. Transaction charges are variable, rarely publicly listed, and in some markets range between 5% and 7% of transaction value, in others a flat rate of Rs 300-700.

Traders are charged a discounted rate.

In return for these charges, Local Governments offers little in the way of facilities, as there are no guidelines or standards for housing, feeding, shade and water availability, truck loading ramps, or disease prevention through quarantine facilities. There are no standards for regulating and operating markets to meet the needs of vendors in the market, and a number of barriers inhibit the transparency and free flow of information necessary to remove market distortions. For example there are no facilities to allow weighing of animals, and there are no standard rules for transactions, which are conducted in secret and encourage collusive practices. Provincial veterinary officers do not provide any services, any certification of disease-free status to buyers, or collect information relating to diseases. No other record of any type is collected regarding number and type of animals traded, sources of supply, or destination, all valuable data for planning and industry development.

There is little coordination or organization between producers and vendors, other than sharing transport costs to reduce the cost of market participation. If livestock producers and vendors instead use informal markets to avoid conditions and charges they are operating illegally. Producers are handicapped by ignorance of prices and livestock weights and values, whereas traders and brokers have well-organized networks, knowledge of prices, and receive discounted market charges.

23

Appendix 1: Shahzad Saftar, KPK Livestock Rapid Market Appraisal

4.1.2 Domestic slaughterand meat marketing

The domestic slaughtering of animals is regulated by the Slaughter Control Act 1963, which prohibits the slaughter of livestock termed as useful animals (female animals within specified age or those which are pregnant or fit for breeding), slaughter outside municipal slaughterhouses, or slaughter on the meatless days of Tuesday and Wednesday. The operation of municipal slaughterhouseshas historically been controlled by bye-laws of the respective local governments under Local Government Ordinance 2001, providing the regulation for issues such as standards and revenue collection. The KPK Provincial government however has recently acquired the power to control the making of bye-laws by local government, under the Local Government Act

2012.

24 The scale of legal domestic slaughter is indicated in Table 5, based on the most recent available government data.

Table7: Animals slaughtered in Local Government Slaughterhouses in KPK 25

Cattle

Buffaloes

Sheep

Goats

2005-6

199 thousand

181

161

175

2006-7

219 thousand

201

180

195

2007-8

228 thousand

211

194

204

Total 716 796 835

Based on this data legal slaughter would provide only approximately 8 kg of meat per head of population per year, suggesting that the meat industry isalso supplied by a high level of informal slaughter occurring outside Municipal slaughterhouses. Survey results from the FIRMScommissioned Rapid Livestock Market Survey showed that Municipal slaughterhouses are mainly located to provide facilities for domestic slaughter in urban areas (Table 6). In rural and remote areas there is generally informal slaughter,a feature associated with subsistence livestock production, and as only eleven out of twenty-five KPK districts have municipal slaughterhouses 26 it is assumed that in the other fourteen districts informal slaughter is the normal practice.

A useful estimate of informal slaughter is difficult to obtain due to live animal movement in and out of KPK. A possible turnoff figure for KPK of 1.2 million can beestimatedon the basis of 24 million total KPK animals, one third adult females, and a turnoff rate of 15%,(typical for low reproductive rates and mature age of slaughter animals).

Table 8: Slaughterhouses in KPK

S# District Location of legal Slaughter Houses Public or Private

1.

Abbotabad

2.

Bannu

3.

Charsadda

4.

,,

5.

D.I.Khan

6.

Haripur

7.

Kohat

8.

Mansehra

9.

Mardan

10.

,,

11.

Peshawar

12.

,,

Abbotabad City

Bannu City

Shabqadar, Tangi

Tangi

Mufti Mehmood Eye Hospital

Near Sabzi Mandi, Haripur

Peshawar Chowk, Kohat City

Mansehra City main Chowk

Mardan,

Takht Bhai

TMA

,,

,,

,,

,,

,,

,,

,,

Haji Asghar Slaughter House, Ring Rd Private

Munir Meat Co Ring Rd

,,

,,

,,

24

Appendix: Dil Mohammad report

25

KPK Bureau of Statistics website 2011quoting L&DD data

26

Appendix 1: Shahzad Saftar, KPK Livestock Rapid Market Appraisal

13.

,,

14.

,,

15.

,,

16.

Swat

Hamza Halal Foods, Najoi Buduli Rd ,,

Euro Foods, Industrial Estate ,,

Charsadda Road

Saidu Sharif near Grassy Ground

17.

Swabi Near Badri Pull Swabi

Source:- Livestock and Dairy Development Department, KPK.

TMA

,,

,,

The Livestock Rapid Market Appraisal detailed the operation and policy implications of representative slaughterhouses in KPK. Obviously the frequency of informal slaughter indicates that the legal requirement to conform to slaughter in a Municipal facility is not widely enforced, and penalties are nominal. Legal slaughter may provide butchers with pre-slaughter inspection by a qualified inspector, andstamping of the carcase. This service is supplied by arrangement with

L&DD Department, but the conditions are not transparent, and field survey indicated little inspection being undertaken. Normally L&DD Department charges Local Government for this service,which is a part-time duty of veterinary staff.

Local government revenue collection to provide legal slaughtertypically consists of Rs 25 for small and Rs 50 for large animals slaughtered by independent butchers, or Rs 50 for small and Rs 150 for large animals slaughtered by a permanent team of slaughterers. Most of throughput consists of sheep and goats of all ages, and aged buffaloes are 90% of large animals, consistent with the law forbidding slaughter of useful animals. Fees are collected by Municipal Corporation staff or a contractor, and also other fees where possible such as for parking.

Atypical Municipal slaughterhouse has minimal facilities, consisting of little more than a roof, and water when electricity is available. There are with no cooling pens for animals, and rarely large animal restraining facilities to enable Halal slaughter, or large animal hanging equipment for removal of viscera or movement of carcases. There is no refrigeration, by-products utilization, or waste management systems.There are no hygiene standards in place, and limited inspections by qualified veterinarians with uncertain protocols and standards, and limited disease surveillance or condemnation of sick animals. Each TMA has its own priorities, so there are no consistent standards. The Local Governments collects substantial slaughter fees, with few costs, and without opportunity for any legal competition from the private sector. This discourages any opportunity for investment in the industry, which might bring more efficient systems, producing meat of higher quality. In addition the butchers in the meat processing industry are not equipped with the proper knowledge to maintain purpose-built slaughterhouses or ensure hygiene and quality control in slaughtering and inspection of meat.

27

Retail meat quality and price isregulated by Local Government, on behalf of the KPK Food

Department 28 . Under the 1977 Price Control and Prevention of Profiteering and Hoarding Act

District Price Review Committees regularly review and set meat prices, in a process unrelated to costs of production, meat quality or consumer demand, and without consistency between

Districts.Although meat prices are reported to have risen by 40% between 2010 and 2012 29 , as meat supply is increasing at a rate of 1.8%, while demand is increasing at 5-6%, effects of price control are slaughter of diseased animals to achieve profit margins.Inconsistent enforcement may allow some high-quality meat to be available at higher prices.

The KPK Health Department is also involved in the function of retail meat inspection and assurance.All departments involved view the current policy as unwieldy, as it 30 creates distortions

27

Trade-Related Technical Assistance Program. (2012) “Enhancing Livestock Sector Export Competitiveness”

28

KPK Food Department website 2013

29

Trade-Related Technical Assistance Program. (2012) “Enhancing Livestock Sector Export Competitiveness”

30

KPK Food Department website 2013

and inefficiencies in the market. The policy affects competition in the supply chain, limiting price rewards for quality, and ensuring that butchers use low-quality product to cut costs.

4.1.3 Export slaughter and marketing

Export slaughter and meat processing is a major component of the meat industry in KPK, which falls under Federal Government regulation. Slaughterhouses in KPK must be registered with the

Animal Quarantine Department of the Livestock Wing of the Ministry of National Food Security and Research.

31 Three private processors in KPK produce meat under these conditions for export to Afghanistan 32 . Slaughter facilities are basic with covered killing areas and blast chillers, and cold stores which are dependent on electricity supply. Most of this meat is processed from younger cattle of 160-200 kg liveweight, and fills an essential food supply role for Afghanistan. The business process varies from direct export by the owner of the slaughterhouse to contract slaughter for others. Typical costs for this are Rs 70 for entry by the animal owner, and Rs 27-30 per kg by the Afghan buyer of the meat. The actual meat sale price may be approximately Rs 275 per kg.

Transport to Afghanistan is byrefrigerated intermodal containers (known as “reefers”) with 16 tons capacity, owned by the slaughterhouses, at a cost of about Rs 50,000 per trip.

No apparent measures are taken to check for livestock diseases at the private slaughterhouses.

Although no food safety assurance systems were observed during the rapid survey, the quality certification process occurson demand of the meat buyers, and is believed to be undertaken by private sector veterinarians engaged by the Quarantine Department.Export of meat to Afghanistan is also facilitated in other ways by the Department, such as smoothing financial transactions with

Afghan purchasing entities.

33 Although private meat exporters are on record claiming export is constrained by taxes, interference from provincial departments, and lack of a clear policy 34 this was not observed.

4.1.4.Export of live animals

Illegal transport of live animalsfrom KPK over borders into Afghanistan in response tohigh prices is a livestock policy issue. This is in the context of traditional movement of flocks and herds across the Pakistan-Afghanistan border, and unfilled demand for meat within Afghanistan. Media analyses have condemned smuggling as the reason for rising meat prices 35 in KPK. With the total illegal flow out of Pakistan estimated at 2.5 million animals per year, 36 debate over the impact of cattle exports on domestic pricesincludes suggestions that policies associated with food security limiting legal export may encouragesmuggling.

Current policy is to prevent, through the use of roadblocks, live animals being transported over the national border without permits. Under the Constitution the Federal Government is responsible, and since the 18 th Amendment, the Ministry of Food Security and Research has created a

“Livestock Wing” with a redefined mandate which includes accountability for regulation of import and export of livestock and livestock products. Federal permits are issued for legal export, but these permits then are traded, possibly a number of times, after which transporters with permits illegally export more than permitted. Provincial implementation of policy in KPK has been transferred between L&DD Department, Food Department 37 , and Home and Tribal Affairs

Department, as movement of animals over Federal Agency boundaries is part of the issue. As freedom of cattle movement into Afghanistan reduces profits from illegal smuggling, managing

31

Ministry of National Food Security and Research websit 2011

32

Appendix 1: Shahzad Saftar, KPK Livestock Rapid Market Appraisal

3333

Regulatory Procedures for Export of Livestock and Livestock Products from Pakistan 2009 SMEDA

34

CEO Anis Associates quoted “The Express Tribune” 28/4/13

35

“Nation” 22/10/2012 High court orders KP Government to stop smuggling

36

Punjab Agriculture and Meat Company (2013)

37

KPK Food Department website

and restricting movement of cattle is now current policy, and responsibility has returned to L&DD

Department.

4.2. Dairy Industry

A livestock industry policy assumption has been that cattle and buffaloes are kept primarily for milk production, with beef as a secondary enterprise consideration. This is changing as meat demand and prices rise in relation to milk prices, although slaughter of buffalo calves at a young age continues to be a common practice. Cattle numbers continue to rise faster than buffalo numbers, reflecting some change in dairy production systems, partly associated with introduction of exotic dairy cattle genetics.

In a dairy industry dominated by small-holders the public or private sector has not made any significant investment in milk collection or preservation systems, chilling tanks, or milk processing plants. 38 This is because demand is for fresh milk, and not for the higher-priced less desirable

UHT milk, which is available from Punjab in the marketplace. Value-chain development for milk involving pasteurization is not policy for public or private entities, although it is regarded as the preferred compromise between scale of operation, treatment effectiveness, and consumer satisfaction.

Small-holders are dependent ontraditional supply chains to service consumers, sometimes organized into producer groups based around chilling centres. An example of programs designed to make them more productive elements of the industry is the L&DD Department supported (from

2005) innovative initiative “Milk Packaging in Central and Southern Districts of NWFP”, which adopted a bottom-up approach to develop the province’s dairy industry through cooperation between the public and private sectors. The project created groups of small-holders and marketing channels, with activities including technical and management support services, training particularly of women, and milk collection units. However policy associated with dairy valuechain development depends on projects financing units, and is let down by constraints such as transport and electricity.

Commercial dairy production enterprises in KPK are stated to be a victim of the cost-price squeeze 39 caused by rising input prices and fixed product prices. Fertilizer prices are claimed to have risen by 150% over five years to 2012 40 at the same time as food inflation has seenmilk price rises of little more than 20%.As with meat Local Government is empowered to set prices for milk, on behalf of the Food and Health Departments, andDistrict Price Review Committees impose milk prices in the retail market without reference to cost of production or demand in the retail market.The price is fixed as the maximum retail price, but in fact it serves as the minimum retail price,because consumers, although aware of official prices, are understood to pay a higher price to buy good quality milk 41 .

Regulation of quality of dairy products is the responsibility of Local Government, but as the Pure

Food Ordinance 1960 does not apply to these food items, implementation at grassroots level is extremely limited.

42

4.3 Fibre Industry

38

Umm E. Zia Pakistan: A dairy sector at a crossroads FAO 2009

39

Hafizur Rehman, Sarhad Dairy Farmers Association, (2004) Pakistan Press Association Service

40

M. Akbar 2012 Global Food Security website

41

Appendix 1: Shahzad Saftar, KPK Livestock Rapid Market Appraisal

42

Umm E. Zia Pakistan: A dairy sector at a crossroads FAO 2009

Wool and hair marketing is regulated under the Agricultural Produce (Grading and Marketing) Act

1937.Wool which enters the marketing chain may be graded according to the standards established under the Wool Grading and Marketing Rules (1953), at the major wool market centres which are in Punjab and Sindh. Termed Pakmark grades these differentiate between Pak Super, which applies to KPK breeds such as Kaghani, Hashtnagri and Michni (fibre diameters less than 40 microns),

Pak Medium, and Pak Coarse typified by the Bulkhi breed (fibre diameters greater than 45 microns). Indigenous goat breeds such as Damani and Kaghani also produce significant quantities of marketable hair.

Grading may be undertaken locally by traders who deal in wool and hair produced as a universal product of livestock in small-holder and transhumant/nomadic pastoral systems. As a product of traditional cultural importance and value, wool has the potential to become a greater contributor to pastoral incomes. However with the main processing capacity in Multan and Karachi this industry is unlikely to provide livelihood opportunities for pastoralists without further assistance in preparation and marketing coordination. Better shearing techniques, and washing and grading of wool from local breeds by producers does not appear to have been considered, as successfully introduced across the border in Balochistan.

43

Historically KPK government and donor agencies have invested substantially in the industry, for example through FAO and other agency investment in the Jaba Sheep Farm at Mansehra responsible for development and distribution of breeding stock with higher quality wool from the imported Rambouillet breed. However the availability of cheap high quality Australian and New

Zealand wool in the nineties limited industry development, with the result that only three wool processing units are currently listed in KPK.

5.Genetic improvement and indigenous breed conservation

Genetic improvement of livestock breeds is a clearly-statedobjective of government policy, as set out in the L&DD Department Rules of Business. Dairy breed improvement is through a network of 310 AI centres, and semen is producedfrom Harichand centre for cattle and buffalo. In a typical year 268,000 cows were inseminated at a cost of Rs 30 per year per cow. This is a supply-driven program, with annual targets set for each District. Although a major government budget item there is no evidence of any cost-benefit reviews, existing guidelines or standards for semen or breeding animals distributed, or any progeny-testing of sires used for semen production.Private enterprise also imports and distributes dairy genetics in KPK; in 2012 318,768 semen doses were imported into Pakistan, also 4300 embryos and 9500 live animals 44 , all focused on dairy production. The federal Ministry of National Food Security and Research Livestock Wing is responsible for quality standards for this imported genetic material.

Recently there has also been pressure for KPK government to establish a policy regarding the rapidly-eroding numbers and loss of genetic purity of indigenous breeds. These are regarded as future genetic resources, not only for Pakistan but for the wider livestock industry. In low-input situations,where there is disease incidence, harsh climate or poor nutrition they may have production and survival advantages over exotic crossbreeds. Breeds which have been recommended for conservation includeAchai cattle, Azikhali buffalo, Gabrali cattle from Swat and

Kohistan, Bishgali cattle and Kari sheep from Chitral, and Ajari goats. Conservation policies are consequently regarded as urgent to preserve the genetic diversity. There are a number of requirements if conservation is to be effective including phenotypic and genotypic characterization, zone-wise breeding strategies, establishment of conservation centres at appropriate sites, and promotional activities. KPK L&DD Department has undertaken to implement a conservation program for Achai cattle. Action has included registration of Achai cattle

43

USAID/FAO ABBA Project

44

Ministry of Food Security and Research 2012

herds, distribution of breeding bulls, and establishment of an Achai breeding farm for breed improvement.

Sheep and goats also are the subject of both breeding and conservation programs. Local geneticshave beenthreatened due to indiscriminate breeding and lack of any policy, as the

Provincial government has until now not undertaken any program for appraisal, improvement or selective breeding of these breeds.

45 For example there are concernsregardingdilution of the genetics of vulnerable breeds such as Kari sheep which have characteristics such as high fertility, short gestation periods 46 and disease resistance, all traits which are vital for reducing risk in pastoral production systems. RecentLD&D Department policy initiatives supporting such conservation programs are shown bycommencement in 2012 of a project aimed at preservation and development of local sheep in Hazara and Malakand.

Policies for sheep genetic improvement, on the other hand, have been focussed on a program to breed and distribute exotic Rambouillet sheep. Thishas continued since the 1980s from the FAOsupported Jaba sheep farm at Mansehra, resulting in extensive cross-breed development in areas such as Swat. There is also a current program to establish a goat/sheep research centre in Swat, with an allocation of Rs 70 million, for improving local goat species through crossing with exotic breeds.

6. Disease surveillance, prevention and treatment

Livestock disease policy is the subject of NWFP Animal Contagious Diseases Act 1948 as well as old federal laws. It is also an item in L&DD Department Rules of Business, with a mandate described as “provision of animal health facilities and services to livestock farmers through curative and prophylactic measures”.

47 Qualified staff and veterinary assistants at 98 veterinary hospitals, 218 veterinary centres and 363 veterinary dispensaries are involved in surveillance, assisted by 7 diagnostic laboratories. A Rapid Response Team also exists to act in the event of disease outbreaks. The KPK Veterinary Research Institute is mandated to “control livestock diseases of economic and zoonotic importance”, mainly through vaccine production. Although

L&DD staff are legally required to undertake a range of control measures, officers in the field regard quarantine is a federal responsibility.

The L&DD Department stated it does not charge for animal disease treatment provided from district dispensaries, although maintains that producers are willing to pay. The future plan is to convert Veterinary Centres into Farmer Community Centres, which will provide a range of programs. Private treatment services are either not available, or do not have the capacity to offer an alternative.

Disease prevention through vaccination is undertaken by the L&DD Department as a supplydriven service organised to meet annual targets.Vaccination programs are charged for at a rate of cost of vaccine plus Rs2 per animal, and delivered according to a seasonal calendar, with specific weeks for particular disease programs. Previous surveys have indicated 48 low coverage of landless producers. Stated constraints to more effective coverage include lack of awareness and willingness of farmers, the capacity of staff, and the cost of vaccines. L&DD staff claimtreatment rates would be higher if specialist vaccination teams were engaged, on good salaries. At the current low level of coverage vaccine production is not a constraint, except for FMD which is produced under an

FAO/USAID program, and can be expensive depending on vaccine source.Field staff reported failure of available vaccines to protect against new disease strainsassociated with migrating

45

M Afzal and AN Naqvi (2004) Livestock Resources of Pakistan. Science Vision 9

46

S. Ahmad and M. Sajjad Khan (2008) Nature

47

KPK Livestock and Dairy Development Department website

48

ADB Livestock Development Project Report Small Ruminant Unit1993

flocks.This is in the context of the most recent study of Pakistan government vaccine production facilities 49 which noted significant inadequacies in production systems and quality control.

Monitoring and quality control of livestock medicines and vaccines is a responsibility of the federal

Health Department, with the Drugs Act 1976 covering production, registration and saleHowever the current legal basis for this since the 18 th Amendment, and the assumption of Provincial responsibilities have to be clarified. L&DD Department maintains it has the capability to do this, and should be given the responsibility.

50

7.Extension and capacity building

L&DD Department extension policy is reflected in the stated mandate: “provision of livestock production extension services to the livestock farmers through a network of veterinary institutions.” 51 . In fact the extension services lack any measure of performance other than animals treated or serviced with AI. Transfer of technical knowledge such as“livestock production extension”, promoted bythe Asian Development Bank-funded Livestock Development

Project,stopped when Project funding ceased before 2000. 52 At present there is a stated objective of recreating such a focus, although last year the application to fund a unit for this purpose under a Director of Production Extension was rejected.

There has been an active tradition of capacity-building for livestock personnel in the KPK L&DD

Department. This has been based around the previously Dutch-assisted Animal Husbandry Inservice Training Institute. Stated mandates of the Institute include training of extension workers for L&DD Dept, changing attitudes from curative to preventative, creation of male and female activists as livestock extension workers, and developing extension messages.

Extension programs targeting specific industry needs such as dairy production have been supported by agencies such as the University of Agriculture Faculty of Animal Husbandry and Veterinary

Science which has sponsored the development of groups such as the Sarhad Dairy Farmers

Association, and the Faculty aims to take a leading role in promoting dairy business development.

Government action has supported social welfarelivelihood initiatives for gender-based interventions intended to provide female livestock owners with training. Recently the Australian government’s Pak-Australia Dairy Extension Project wasco-opted toundertake dairy extension training forKPK officers in Punjab.

53

8. Research and development

Although there are two KPK universities, a Veterinary Research Institute, and a number of

“research” projects managed by the L&DD Department, there is no means of coordinating livestock research direction, of funding research using industry contributions, or of ensuring accountability from research bodies.

9. Animal Welfare

Prevention of cruelty to animals is a mandated function of KPK L&DD Department, but the policy basis for this, the Prevention of Cruelty to Animals Act 1890, is outdated in the light of changing attitudes of urban society, and changing methods of managing and treating production livestock.

There is no comprehensive regulatory requirements ensuring humane treatment of animals, and

49Bevan RE & HO Pakistan Veterinary Vaccine Review 2007

50

Dr Sher, Director L%DD, pers. Com.

51

KPK Livestock and Dairy Development Department website

52

ADB Pakistan Livestock Development Project Audit report 2004

53

Australian Centre for International Agricultural Research ASLP Program (2012)

there is no regard for the welfare of animals during transportation, sale and purchase in marketplaces, slaughter, or other management processes.

10. Livestock feed

For an industry which is based completely on feed production and utilisation there is no forage policy which supports forage seed development, stimulates appropriate research and supports development of feed as a commodity. In regard to processed feed there is no law regulating the animal feed quality in KPK, or penalty for selling unhealthy or injurious animal feed.

11.Rangeland management and pastoralism

Management of rangeland has been traditionally a Forest Department responsibility.The Forest

Sector Master Plan defines 48% of the area under Forest Department management as rangeland which is 4.893 million ha. The policy instrument is the Provincial Forest Ordinance 2002 which supports the Department’s guiding principles 54 of integrated resource management of land-use types and resource types, as part of the ecosystem. The Department’s policy regarding stakeholders is to encourage participation in natural resource management activities.Although funded to manage rangelands, 55 a with a sum of Rs 960 million over six years provided for rehabilitation and development of range and pasture lands, the Forestry Department focus is on forestry issues.

Broad delineation of rangeland in KPK is difficultas estimates range from 27.5% to 46.5% of total land area, depending on criteria for mapping distinction of wasteland and degraded forest. The area of rangeland in KPK was regarded by Government of Pakistan in 1973 as 5.68 million hectares 56 .

Much of this area is regarded as degraded. For example quoted in the World Bank Strategic

Country Environmental Assessment,in 1995 57 the area of degraded rangeland was mapped as

4,106,000 ha. This rangeland is estimated to carry at least 60% of the livestock of the province.Livestock numbers have increased by at least 3.5% per year over that period, and it is assumed thattheincreased grazing pressure has resulted in further degradation. Livestock production based on rangeland is becoming less stable as animal numbers increase, the fodder resource depletes, and climate change potentially tightens the knot.

It is significant that the biggest increase in livestock numbers has been with the goat component of herds. For pastoralists and subsistence herders indigenous goat breeds provide milk, hair and mutton as well as possessing high reproductive rates. That goats are also damaging to the environment through their destructive browsing behavior was recognized in the passing of the

West Pakistan Goat (Restriction) Ordinance, 1959, and adopted by the Province through Adoption of Law Order 1975, which prohibits keeping and grazing of goats, except in animal sheds. There is now no effort to ensure compliance with this law, although goats are associated with accelerated loss of tree cover, estimated at over 2% annually by the World Bank.

58

The landless nomadic and transhumant communities which traditionally graze these rangelands are marginalised due to forestry and cropping development, degradation of grazing areas, exploitation by health and marketing service providers and land tenure conflicts over customary and statutory rights of use. Their traditional response to insecurity is not to stock more conservatively but to increase numbers as a “safety net”. However with progressive loss of rangeland forage resources a degree of self-limitation might be expected with these production

54

KPK Forestry Department website

55

KPK Comprehensive Development Strategy of 2010-17 (2010)

56

PARC (1993) “Sheep production in Pakistan”

57

World Bank Strategic Country Environmental Assessment (1995)

58

World Bank Strategic Country Environmental Assessment (1995)

systems. There is some evidence for this in the flattening off of livestock increases, for example in the Chitral data reported by Nasser. 59

Table 9: Chitral livestock trends

1986 census

1996 census

% Change 2006 census

% Change

Cattle

Sheep

Goats

Total

100,083

113,627

221,070

434,780

173,262

188,822

335,780

697,864

+ 42%

+ 66%

+ 51%

+ 60%

174,842

181,146

347,977

703,965

+

1%

- 4%

+4%

+4%

60

Data from Khan and Ahmad (2000) relating to nomadic graziers in Swat and Malakand districts support this with suggested figures of more than 50 % reduction in the size of Ajar sheep/goat flocks, and similar substantial reductions in Gujar cattle herds. Reasons advanced included squeezing of grazing resources by afforestation projects,closureof trekking routes, herders moving from grazing to employment, and lost access to privatized hillsides.

With the aim of addressing the current policy gap a newrangeland policy has beendrafted by The

Pakistan Forest Institute for the KPK Forest Department. This proposed policyis clearly aimed at environmental protection and identification of biodiversity threats, and will depend on extensive rangeland data collection and interpretation, to enable formulation of proposed range management plans. Conservation outcomes will mainly depend on natural regeneration of rangeland. Elements of the policy relating to rangeland include regulations to specify livestock movement routes, fixed periods of stay in grazing areas, and grazing fees to be set which are related to the productivity of the pasture.Policies will also involveawareness-raising regarding over-grazing, and capacitybuilding for grazing communities. This will be part of a “social range concept” and the forming of graziers associations, based partly on the Forest Department’s village land-use planning techniques.

Institutional changes will notreduce the Forest Department’s continued responsibility for rangelands, but a new Rangeland Development Advisory body proposed, with representation from a range of agencies including L & DD Department.AProvincial Range Development Fund is also proposed.Future rangeland management will require cooperation and coordination of overlapping initiatives, for example livestock health (eg vaccination campaigns) and herder livelihood initiatives specified in the draft policy.

L&DD Department has not indicated if it supports the concepts involved in the draft Policy.

However the Department has responded to increasing threats to pastoralist communities by establishing a Pastoralism Unit.

61 This will perform functions including compiling a comprehensive database, preparing development programs which address some of the constraints for the pastoralists, improving health and marketing services, and generally enhancing the capacity of the pastoralists to manage their traditional pursuits. The unit was allocated Rs150 million in

2012, and initially funded Rs35 million.In addition the Department has committed to support two pilot pastoral systems: the Burwahai-Haripur system (east of Indus River in Himalayan region), and the Mahodand-Khadokhei system (west of the Indus in the Hindu-Kush region). Rs 150 million have been allocated over three years to strengthen social capacity, enhance winter fodder supplies, establish transit facilities and services along movement routes, introduce financial support mechanisms, and monitor socio-economic and ecological impacts.

59

M.Nasser et al “Pastoral Practices in High Asia” ed Kreutzman

60

Pakistan Bureau of Statistics

61

Landless Mobile Pastoralists Workshop Proceedings, Islamabad 2012

12.CurrentKPK policy reviews

12.1 Provincial Reform Program

The KPK Provincial Reform Program 62 in 2011 encouraged policy review by government and industry, advocating multi-stakeholder “think tanks” to provide independent advice and feedback.

The outcome was a “Policy Action Plan for Implementation of Comprehensive Development

Strategy on Livestock Sector” 63 in consultation with Professor Muhammad Subhan Qureshi, Dean of the Faculty of Animal Husbandry and Veterinary Science at University of Agriculture. Reorganization of the L and DD Department is included in the strategy, based on wide consultation with provincial stakeholders. The financial requirement for implementation of this plan was estimated at Rs 200 million, with a need for outside investors. An autonomous Board and Services

Network has been proposed to promote commercialization and link stakeholder inputs to service.

12.2 FAO Agricultural Policy for KPK

A comprehensive policy review of agricultural and livestock policy was carried out by FAO in

2012 64 following a request for assistance by KPK government. This review details a number of strategies for agriculture, and includes recommendations for enhancing productivity and competitiveness associated with dairy, meat and wool value chains through removing price controls. The report also recommends limiting livestock movement out of the province for processing, improving livestock market systems, increasingmarket transparency and increasing quality control through improved food safety measures and Halal certification.

Otherrecommendations resulting from the FAO study which are relevant to livestock policy include the importance of the private sector in taking the lead in market development. It suggests the need for NGOs and community-based organizations to agree to protocols for transparency and accountability and tointerface with the government and private sector in a multi-stakeholder approach

KPK rangeland policy is covered by the study, with recommendations including the need for regulations for protection, and for proper mapping, capacity assessment, planning, and monitoring,

Also recommended is protection of the livelihoods of dependent pastoral communities, and promotion of facilities for transhumant communities.Community organizations and NGOs are instructed to resolve conflicts and develop ownership for common rangelands.

12.3 Previous policy reviews

The pace of policy development can be assessed in the light of previous opportunities to examine policies and introduce reform. The Asian Development Bank Livestock Development Project twenty years ago promoted some of the same concepts now discussed. These included encouraging private sector involvement, removing price controls, improving certification of medicine quality, and improved quality assurance for products such as milk. The author of this report, after field surveys in KPK in 1993, at that time recommended reform of inefficient and corrupt livestock markets, review of breed development policies particularly the rationale for distribution of exotic breeding stock of doubtful genetic value, and a review of disease prevention programs particularly regarding the effectiveness of vaccination and de-worming programs for landless and mobile pastoralists.Attention may have been paid to some of these issues, but in general the impression is one of no change after twenty years.

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Report (2011) “Towards Citizen-Centric Governance”

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Reported Prof M S Qureshi, Pakissan 29/4/13

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FAO (2012) KPK Agriculture Policy – A Ten Year Perspective.

Section IV. International livestock policymodels

As models for policy recommendations a number of jurisdictions have been selected for their particular application to the KPK situation, using the following criteria. They all represent governance systems based on both federal and provincial (state) levels. They are chosen from countries where livestock industries have a major role. Some have been selected to represent supposed “best practice”, where technology is advanced, regulation is effective, the private sector is active, and investment is encouraged. Other models represent jurisdictions where the full transition from subsistence to commercial production has not yet occurred.

For each major subject area, livestock policy approaches are described for three jurisdictions.

1. Disease surveillance and prevention

In Australia national coordination is undertaken by Animal Health Australia, which is an independent not-for-profit company funded by governments and industry (including a producer livestock transaction levy). It manages disease surveillance, emergency preparedness, animal health and welfare standards, veterinary accreditation,policy development, and coordinates state regulatory activity.

At the state level surveillance is undertaken by state Departments with activities including monitoring of all markets and slaughter and meat processing for disease. There are policies to regulate some state to state livestock movement for disease control purposes. Movement of livestock between NSW, Victoria and South Australia is regulated based on ownership (with registered Property Identification Codes), declarations of disease status (using National Vendor

Declarations), and compliance with identification requirements under the National Livestock

Identification Scheme (mandatory tagging of all animals).

Australia’s island situation and relative disease freedom is the economic basis for these extreme policies and investment in quarantine and surveillance. Action to preventroutine diseases is the responsibility of the private sector, (except for strategic programs for epidemics), using advice from state department extension officers, and vaccines/medicines from private suppliers.

In USA national identification schemes for disease monitoring have long been proposed and rejected by livestock producer representative organizations. The latest attempt to introduce a program was in 2013, and the policy adopted requires only regulation for livestock which cross state borders. There are also a number of exemption options which have reduced the potential effectiveness of the policy.

The Indian approach to surveillance and control is a strong national government policy supporting programs aimed at “trans-boundary diseases”. These programs include the National Animal

Disease Reporting System, the National Animal Disease Referral Expert System, and the

Assistance to States for Control of Animal Disease program. These initiatives against diseases such as FMD support India’s current status as a major beef exporter.

2. Disease treatment

In Australia producers normally carry out treatment of livestock with registered medicines except for specific drugs such as antibiotics. Treatment with registered medicines is regulated through a labelling process which specifies dose rates, conditions, and with-holding periods. It specifies correct use of medicines, preventing harm to treated animals, or harm to humans as a result of consumption of treated animals.Specific livestock medicines such as antibiotics must be administered by private vets, who must be accredited by Animal Health Australia.

Medicines are registered by the Australian Pesticides and Veterinary Medicines Authority which sets standards of use, and requires these standards on the label. Compliance with labelling standards is the responsibility of the particular State Department of Primary Industries. All medicines are available through private sector distribution. Treatment can be by private vets for specified medicines, or by producers and contractors for all other medicines. Private suppliers and retailers of vaccines and medicines also advise producers re treatment methods.

The Malaysia policy for registration of veterinary products comes under the National

Pharmaceutical Control Bureau,which is with the Ministry of Health. This process also allows access to the ASEAN Drug Harmonization program, so that registration is automatically accepted by the ASEAN countries including Indonesia and nine others.

3. Vaccine production

In Australia vaccines must meet defined standards of quality regulated by an independent body,the

Agricultural Pesticides and Veterinary Medicines Authority(APVMA) and also meet the

Australian Code of Good Manufacturing Practice. The Australian Quarantine and Inspection

Service controlsthe importing of vaccines, which must also meet the standards required by the

APVMA. Private sector multi-national vaccine manufacturers and smaller private producers provide for mass market and specific vaccine requirements, except in the rare instance of an essential vaccine not being a commercially viable production item.

In India private vaccine manufacturers have operated since the 1970s. Typically private manufacturing has been based initially on public/private collaboration, as with FMD vaccine in

1982. In 2010 there were 26 vaccine production units, of which 7 were private. The other 19 public sector vaccine units are required to produce specific vaccines where the high investment necessary and inadequate demand does not encourage private production. National supervision of quality comes under the Central Veterinary Standards Laboratory established in 1992.

For USA, Japan and the European Union the Veterinary International Harmonization Committee brings together the veterinary regulatory authorities of these countries, together with representatives from the animal health industry, to achieve scientific consensus regarding regulatory requirements for the three regions.

4. Feed production and monitoring

In Australia statelaws regulates analysis and identification of feed ingredients, and labelling of manufactured animal feeds. For non-manufactured feeds such as grain or hay, informal and formal markets exist. For formal markets suppliers are required to produce a vendor declaration which enables responsibility for ensuring freedom from contamination by chemical residues and fungal toxins. This policy regulates the trade of fodder as a commodity in large-scale export and domestic volumes.Traceback systems have been developed by private sector fodder exporters as a basis for industry development. The private sector provides feed nutritional quality (“Feedtest”) services to producers and traders which were initially developed by Government agencies andnow licensed to private sector.

In USAwhere the fodder industry exports 3 million tonnes of product to NE Asia, and the market is expanding in the Middle East, product integrity is an issue. Regulation of feed quality is implemented by the Division of Animal Feeds in the US Food and Drug Administration.

In Canada, where the second largest crop grown is hay for animal feed, this issue is taken very seriously, and a review was initiated in 2012 of the regulatory framework for livestock feed, under the Canadian Food Inspection Agency, to upgrade and modernize current regulation under the

Feeds Act 1985.

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5. Extension services

In Australia agriculture and livestock issues are not included in the Federal Constitution, and are delegated to the states. State government policy has traditionally provided farmer support and education, delivering extension services through a mix of methods including fee for service, and out-sourcing to private sector providers frequently funded through industrylevies.

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Canadian Food Inspection agency website

The shift by governments to the principle of “user-pays”varies from state to state in

Australia.Shifting extension towards commercial delivery, and emphasising efficiencies over welfare may be a threat to the ability of governments to deliver extension outcomes in important areas of public good. Although out-sourcing of government-funded research and extension programs by public sector agencies is quickly taken up by private consultants and agribusiness, privatisation may result in loss of control, and reduced ability to meet key government objectives.

In China over the last two decades the commercialism of extension units based on the former topdown government control of farmer activities resulted in disappearance of functional support for livestock producers. In its place there has been a move towards market-oriented operations, appearance of vertically-integrated production and marketing entities, and rationalization of subsistence-scale producers. Typically companies (termed “dragon-head”) have developed relationships with groups of small farmers, providing technical support in exchange for contracted supply of products. Farmer group development has also been an important trend, where industry associations have allowed more effective consultation and planning between government and farmers.

While USA maintains a system of farmer support based on technical specialists from land-grant universities, international agencies such as FAO have moved towards “farmer-centred” and participatory concepts using experiential learning such as the “farmer field” approach. Note that these still depend on finding agencies and inputs from technical specialists.

6. Breed conservation and improvement

In Australia development and improvement of livestock breeds is limited to the private sector since government or university-sponsored activities ceased more than forty years ago. There are no restrictions on investment and free competition by private producers and suppliers of breeding stock, semen and embryos. Semen production and sale is regulated by State Departments of

Primary Industry, and semen and embryo importation is regulated at national level bythe Australian

Quarantine and Inspection Service.

Breed societies exist for most breeds, which have objectives of maintaining breed standards and commercial promotion. For dairy cattle genetic progress is monitored through the Australian Dairy

Herd Improvement Scheme (ADHIS), a private company which receives government funding and technical support.

USA is committed to free enterprise activity to breed and select for production traits in farm animals. For example sixty two beef cattle breeds are represented by societies which promote and regulate standards. The Holstein Association has 45,000 members, coordinating production records for breeders who have selection programs conducted under very high levels of nutrition and health, tradingtheir genetics across the world.

The view of the International Livestock Research Institute is that if breeds such as Holstein-

Friesian and White Leghorn continue to spread in less-developed countries there is danger from the consequences of a narrowed genetic base. Indigenous breed preservation is gaining momentum to support low input, low risk pastoral production systems, and maintain pools of indigenous breeds against increasing risk of extinction, or dilution of specific genetic traits. Programs implemented include theDomestic Animals Genetic Resources Information System (DAGRIS), and the

Regional Project on Sustainable Management of Endemic Ruminant Livestock (PROGEBE).

7. Research and development

In Australia the policy principle is that rural end-user industries must help pay for research through levies, and research organisations compete for these funds. Research needs are prioritized by an independent body, the Rural Research and Development Council, and research funding at Federal and State level is managed by a series of R&D Corporations which are jointly funded by producers

and government 66 . Cooperative Research Centres compete for the same funds to create partnerships between private and public sector. Private agencies or farmer groups can also compete for funding and contract to undertake research. The principle is that researchers are accountable to funding bodies, and continued funding depends on monitoring, evaluation, and impact assessment by endusers.

USA policy underpins strong public support for agricultural R&D, which has been matched in dollars by private investment.

67 The National Agricultural Research, Extension, Education and

Economics Advisory Board (NAREEAB) advises the Secretary of Agriculture on policies and priorities for research. Federal-state partnership and coordination involves concepts such as Land

Grant University programs.

The Canadian model for agricultural and livestock research is based on centralized bodies, the

National Research Council, and the Natural Science and Engineering Research Council of

Canada.

68 These bodies report to government, and do not have the mechanisms for linking funding sources to research outcomes as in Australia.

8. Livestock marketing

The aim of Australian livestock market policy is to ensure free competition through transparency and fair business practice. Livestock markets are normally privately owned and managed, with a range of entities conducting markets including local governments and registered businesses.

Standardizationof market services, for example weighing protocols for cattle, and standards of open auction business practice are ensured through self-regulated industry Codes of Practice administered by Associations of Agents. Standards of service and infrastructure are the basis for competition between markets when aiming to attract buyers and sellers.

All formal livestock transactions at markets involve a levy administered by Meat and Livestock

Australia (MLA) a body which provides market information and development, and ensures product integrity. Market reporting is also funded by the producer levy uses standardized descriptions and mass media/internet to accurately and efficiently inform livestock sellers.

Livestock quality assurance, identification and traceability are regulated by the federal Primary

Industries Levies and Charges Collection Act 1991, and Australian Meat and Livestock Industry

Act 1997.

A significant market pathway is sale direct from producer to processor, with payment after processing on the basis of carcase weight and grade, termed “over the hooks”. The price of the skin, determined by tender is added in the case of sheep processing. Producers may choose to use an agent for this pathway as an insurance against payment failure by the processor.

Note that policy is informed by accurate data. All sheep producers are surveyed annually to determine trends in breed type, reproductive capacity and probable turnoff, allowing processors and government service providers to plan and prepare.

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Livestock markets in USA are regulated in part by the Packers and Stockyards Act 1921, which is enforced by US Department of Agriculture. The continued operation of a livestock markets is associated with the industry groups including the US Livestock Marketers Association which aims to support and protect auction market standards, and the National Cattleman’s Beef Association with the mission of market free competition and protection from government intrusion into domestic supply, cost or price.

66

National Strategic Rural Research and Development Investment Plan (2011).

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Alston JM (2011) Agriculture Knowledge Systems OECD Conf. Proc.

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NSERC website

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Australian Bureau of Agriculture and Resource Economics annual survey.

Canadian livestock markets privately managed, with support from industry organizations such as the not-for-profit Livestock Markets Association of Canada. Market organization is currently impacted by government pressure to introduce traceability tagging systems for livestock. This program under the Canadian Food Inspection Agency has been delayed by stakeholders and is under consultation, even though individual provinces have introduced legislation, as in Alberta where the Livestock Identification and Commerce Act of 2006 requires mandatory tagging of animals.

9. Meat processing and marketing

In Australia livestock slaughter and processing is undertaken entirely by the private sector.

Processors and abattoirs are given accreditation by an independent national body, to develop domestic standards and ensure compliance. Ausmeat Ltd is the private company which ensures industry compliance with meat processing standards. It is a joint venture of Meat and Livestock

Australia Ltd, which is producer-owned, and the Australian Meat Processing Corporation which is an entity composed of processor representatives. While all producers and processors have a stake in product quality assurance MLA is funded by statutory-based levies from producers, but AMPC is currently funded by non-statutory collection of industry funds.

For processors producing export product AQIS ensures compliance with export standards at cost to exporters (in addition to accreditation of abattoirs by specific destination countries.) All such processors have in place procedures which ensure product is Halal certified by an accredited

Islamic organisation.

Meat processing is also impacted by policies associated with issues such as workplace health and safety, and environmental implications. State environmental laws regulate activities which are the subject of compliance by the Environmental Protection Authority. Worksafe Victoria, for example, implements the Victorian Occupational Health and Safety Act (2004).

In China meat quality has been related to a largely informal meat industry, and inefficient and outdated larger-scale municipal processing facilities, which may have been taken over by commercial entities. Due to extreme income disparity, to some extent between urban and rural consumers, the informal sector continues to exist providing lower quality product at a lower price.

Improvement in food quality regulation has in recent years become a government priority with even more attention as a result of contamination of milk in 2008. At present consumers seeking confidence in product quality have to depend on defacto accreditation through reliance on the credibility and reputation of high-priced particular company branding. Chinese policy is to ultimately regulate the informal sector in the future, which still exists to cater for the disadvantaged consumer.Muslim minorities traditionally associated with meat processing normally ensure Halal status in the informal market. To cater for higher-value (supermarket) product Islamic Association accreditation has developed protocols.

In Malaysia the Department of Islamic Development Malaysia (JAKIM) provides a standardized process for Halal product assurance, for Malaysian or non-Malaysian institutions or other entities.

10.Government and private farm management

Australian governments are unwilling to own farming land or engage in commercial production activities unless for research purposes. Public grazing lands now leased to producers are currently being sold or converted to freehold title to allow private ownership. Policy is to support establishment of strong farmer organisations which are able to provide clear recommendations to government from the private sector. Farmer organizations at State level are represented at Federal level in commodity councils, for example the Cattle Council. However effectiveness of advice is constrained by conflict between organisations and states reflecting differing financial bases.

Individual producers may receive special assistance compared to other industries, such as taxation benefits, for example income averaging. Landholders may also benefit from government measures enacted for drought, flood and natural disaster, to ensure social resilience as well as production

stability, and food security. These measures are administered through state and federally-funded

Rural Assistance Authorities.

A series of other state policies regulate the normal functioning of livestock producers. These include Environment policies relating to impacts such as feedlot air, soil and water impacts, and

Workplace Safety policies relating to the conditions under which employees operate.

Policies in place in United States reflect a stronger political base for farmers than in Australia.

With a strong economic base provided by domestic consumption, a range of support policies are in place to make subsidies available to farmers,described as “farm income stabilization”.This support may significantly affect livestock industry investment, for example incommodities such as feedgrains.

China has demonstrated commitment to facilitation of private sector agricultural development, including privatization of former state-owned enterprises, and facilitation of land tenure regulations to enable large-scale livestock enterprises to function effectively. Policy also encourages foreign direct investment in situations where an industry does not have appropriate management and technical expertise to develop local production standards. Agricultural and livestock enterprises account for approximately 2.8% of the total contracted value of over US $600 billion of investment.

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11. Animal welfare

In Australia there are no national laws, but states regulate in their own jurisdictions. In NSW the

RSPCA has powers to enforce regulations which cover a number of issues including starvation of grazing livestock. A national Code of Practice sets out standards including husbandry, saleyard practice and transport. Responding to evolving cultural attitudes, a well-organised animal welfare lobby, and political pressure,the government is currently undertaking public consultation as a precursor to replacing these codes with mandatory Animal Welfare Standards for all states. The animal welfare lobby also aims to outlaw live animal export, and the government has introduced the Exporter Supply Chain Assurance System to regulate treatment of Australian animals in importing countries. The federal government also closed all cattle export for a period following ill-treatment of animals by Indonesian slaughterhouses.

In USA the Animal Welfare Act (2010) is the only Federal law that regulates treatment of animals and sets minimum acceptable standards. Farm animals are regulated by this act only when used in biomedical research, testing, teaching and exhibition. The Act is enforced by US Dept of

Agriculture, Animal and Plant Health Inspection Services, and Animal Care agency.

In China a new Animal Protection Law has been drafted in 2009. It not only covers farm animals, but also takes a stance on difficult social issues. For example it outlaws practice such as consumption of dogs for food, which as a normal practice for some cultural minorities,may create conflict.

12. Environmental protection

Intensive livestock industries are closely regulated in Australia, 71 with State environmental legislation requiring any development such as a feedlot, livestock market or slaughterhouse to be licensed by the state Environmental Protection Authority, as well as meeting requirements of the local government Local Environmental Plan. Issues where it must be demonstrated that no adverse effects will result include water management, soil and native vegetation effects, waste management, noise and odour control, chemical management, fire management, and cultural heritage impacts.

70OECD Working Paper 2000/4

71

Guidelines for establishment and operation of feedlots PIRSA 2006

In USA surface and groundwater pollution by cattle feedlots is one of the fastest-growing threats as a result of nutrient loading from manure waste. The Environmental Protection Authority has authority to regulate all animal feeding operations in USA. This authority is delegated to individual states in some cases. Any concentrated animal feeding operations are regulated under the National

Pollutant Discharge Elimination System (NPDES).

In China water pollution from operations such as feedlots, wool scouring, tanning and other processing is rarely regulated, although the China Environmental Protection Law is in existence, and standards were amended in 2013.

13. Rangeland management

In Australia rangeland management is not a federal responsibility, although the federal government provides guidelines for management and monitoring. The federal government also affects management associated with tenure by legislating land ownership by indigenous groups through

Native Title Legislation.

State jurisdictions have primary responsibility for natural resource management, with considerable variation between states. South Australia with the greatest economic dependence on rangeland may have the best policy framework, through two policy instruments administered by the Department of Environment, Water and Natural Resources. The National Resource Management Act of 2004 is the basis for regional Natural Resource Management Boards which are managed by local stakeholders. These influence private natural resource management through monitoring, education and incentive programs. Under this act reserves are administered on 20% of the state for biodiversity conservation purposes.

For rangeland areas which are government-owned and leased to private pastoral businesses policy is provided by the Pastoral Land Management and Conservation Act 1989. This regulates management on 41% of the state, leasing the land to private grazing businesses, but undertaking comprehensive programs of resource inventory and range condition assessment. Regular inspection uses standardised rangeland monitoring protocols as a basis for further lease extensions.Unfortunately while states have science-based policies which depend on measurement of ecological indicators and identification of management targets, the cost of scientific rangeland assessment procedures may limit their actual application. Environmental agencies are now moving to adopt market based instruments as a means of facilitating payments to rangeland owners for ecosystem services such as biodiversity conservation. In NSW “enterprise-based conservation” involves payment for de-stocking and meeting ground-cover requirements.

Legislation in NSW and Queensland also makes state government-owned land available for travelling livestock to graze, under the Queensland Land Act (1994). Owners are provided facilities such as water and holding yards and charged according to herd size, with daily travel conditions.

Disaster (drought or flood) mitigation policies for pastoralists are a federal government responsibility. Incentives to store income from good seasons in “Farm Management Deposits” are provided as tax relief when deposits are cashed in bad times.

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The principles in the Grassland Law enacted by China provide an example of strong policy regarding the use of public rangelands. Objectives of this policy are protection, rational use and sustainable development of these public lands, assisted by monitoring and the power to set stocking rates and close off these lands to exclude humans and livestock. (Chinese Grassland Law amended

2002). Note however that this authoritarian approach is accompanied by policy impacts which support social change such as sedentarisation, encouragement of alternative livelihood scenarios, and access to education and health facilities. These changes however may cause disintegration of traditional grazing management.

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Australian Govt Dept of Agriculture, Fisheries and Forestry website

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Kreutzmann H, (2013) Pastoralism Research, Policy and Practice 3

Modern world views of policy approaches to conservation management of common rangeland assert that the social control mechanisms of decentralized community governance deliver better outcomes than external government direction, or individual property rights. 74 This view is in contradiction with “tragedy of the commons” theory, but is associated with current assessment of privatization policy lack of success in halting rangeland degradation, and the cost and ineffectiveness ofregulation based on monitoring of ecological indicators.

As a good example of these models Bhutan Land Law (2007) has ensured that communities have the right to control and continue traditional grazing practices and management of livestock, as the optimal approach to sustainable management of rangelands and forests.

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Ostrom, E (2012) Inst. Of Economic Affairs, Hayek Memorial Lecture

Section V. Policy principles based on best international practice

1. Elimination of market distortions associated with restriction on competition

Provision of livestock market services and slaughterhouses is a legal function of local government.

The present regime of auctioning of collection rights, particularly for livestock markets, provides opportunity for rent-seeking, and prevents competition from the private sector. Introduction of policy which opens this area to competition from other entities would not only allow delivery of better and more cost-effective markets, but would reduce supply restrictions, and provide the stimulus for transparent sale and purchase systems and objective market information services, which are needed to remove current distortions in the pathway between producer and consumer.

2. Creation of a demand-driven approach to markets

In developing markets for livestock products there is an increasing need to recognize the association between consumer demand and product integrity, and to develop a demand-driven approach to delivery of livestock-related infrastructure, facilities and services. Policy to ensure product integrity involves creation of genuine processes which enable identification of disease or contamination (for example with chemicals, medicines or hormones) in the source animals.

Ultimately this can consist of systems for vendor identification, vendor declaration, and livestock identification. At the processing stage product integrity demands genuine food safety assurance, as well as internationally recognized Halal accreditation.

3. Recognition that there is a cost for goods and services

The reality of a competitive free-enterprise economy is that services have a cost. Currently provincial livestock policy ensures a range of government services are provided without regard for their true cost (for example vaccinations, artificial insemination), based on the genuine aim of industry development or support for poorer producers. Ultimately policies need to separate between stimulatory or social welfare functions, and normal livestock services, to allow policies which permit the private sector to become involved and develop competitively.

Under this principle, livestock producers demanding effective product integrity systems contribute to their cost, through mechanisms such as market levies. For example, livestock producers utilizing resources such as public land would also pay for access to grazing rights.

4. Elimination of resource allocation distortions associated with public ownership of business entities

Allocation of provincial resources to government ownership and operation of livestock production businesses such as farms and research is seen as irrational and inefficient use of staff and funding better deployed in effective regulatory activities. In particular this applies to farms and businesses which can be operated more efficiently by a well-regulated competitive private sector.

5. Representation for stakeholders in industry decisions

Policy developed without stakeholder support is unlikely to successfully meet objectives.

Stakeholder support assumes genuine stakeholder input, which requires commitment to formal processes. Development of organizations or networks to represent industry cannot happen easily in a livestock context with extreme disparity in cultures, production systems, and scales of operation. It is likely to require considerable investment and facilitation to enable the establishment of effective livestock producer organizations.

6. Industry self-regulation

Implementation of policy depends on successful and cost-effective regulation. By involving industry in developing codes of practice based on policy, compliance can be effective based on establishment of ownership of the regulations. Although this is feasible in well-managed industrial operations such as meat-processing, allowing minimal auditing, but is more difficult with areas such as marketing and transport where there are not yet well-developed industry associations. As

a policy option, the self-regulation has functioned in sectors such as poultry, providing a model for the livestock sector.

7. Independence of regulatory bodies

The effectiveness of autonomous and independent regulatory bodies has been established.

Currently provincial government functions as both regulator and service provider, breaching an established principle of law. It is necessary to have representation from all stakeholders (in the case of meat processing both producers and processors), to ensure that integrity of operation cannot be compromised by any players in the industry.

8. Sustainable use of resources

Government policy is obligated to adopt long-term approaches to natural resource management, and to reflect concepts of public responsibility for vegetation, soil and water resources, as well as application of the precautionary principle in relation to uncertain consequences of present actions.

These principles indicate policy should include mechanisms for protection of both privately-owned and publicly-owned rangelands and wetlands. Obviously grazing livestock are implicated in degradation of these resources, and protection policies may interact with livelihood considerations.

Particular requirements for policy should include flexibility and incentives for owners to easily adjust down inventories through markets (or across borders), for grazing communities to continue to use sustainable traditional systems, and for regulators to respond to changes in measured indicators.

9. Independent policy for socially and economically disadvantaged communities

Provincial livestock departments have traditionally been regarded as instruments for delivery of social welfare policies, for example through special gender capacity building programs, disaster relief, or poverty alleviation. Rational policy development for livestock should acknowledge and separate these from mainstream livestock issues, developing targeted measures (such as subsidies) which maintain social welfare functions do not distort the whole market.

10. Recognition of cultural sensitivities

Cultural diversity is an important context for policy considerations, for example in creating livestock policy which is responsive to the needs of communities such as mobile landless pastoralists with special traditions, constraints and vulnerability. Other more contemporary cultural sensitivities relate to animal welfare policy. For example, due to evolving cultural attitudes sections of society now consider some aspects of industrial farming management systems to involve cruelty.

Section VII. Proposed policy reforms for key areas

1. Disease surveillanceand prevention

This is a high priority area for the KPK Government, which is without adequate policy or regulatory procedures. District Veterinary Officers who now focus on curative measures rather than prevention need standard operating procedures and protocols for surveillance, including monitoring and reporting from all key areas such as livestock markets and slaughterhouses. They also need standard procedures for prevention through appropriate vaccination programs and strains of vaccine. This is particularly true for trans-boundary diseases such as FMD, where there is not at present the institutional capacity to ensure control measures, or undertake quarantine where necessary.

The developing private sector which is currently undertaking disease control on farms must also have a role, through establishment of appropriate protocols and regulations for surveillance and prevention.This should include training of private community animal health professionals. In the interim the Governmentneeds to develop specialized capacity to undertake disease prevention programs, particularly in relation to mobile pastoralists with particular needs and logistic challenges.

2. Disease Treatment

Policy in this area is inadequate, resulting in lack of regulation ofquality of livestock medicines in the marketplace. For veterinary professionals, community livestock health workers, or private livestock owners, regulation is essentialto identify fake products, and ensure registered and labelled medicines are available for purchase and use.Labelling will ensure that users are aware of conditions of safe use for humans, targeted animals, and the environment. Labelling will also specify how the medicine is to be administered, stored and disposed, and with-holding periods after treatment before consumption of treated animals is allowable. As medicine quality assurance is an area devolved to the Province as a result of the 18 th Amendment, an appropriate body to carry out these functions should be given the capacity once legal responsibility is clarified.

3. Vaccine production

Subsidised production of vaccines by the public sector has the effect of stifling the development of commercial supplies by the private sector. The issue of price, demand and availability of vaccines requires review. If the cost of vaccine produced by the private sector is limiting use by the livestock production industry, this is an issue for direct assistance from rural development and poverty alleviation sources. Vaccine which is priced in relation to the true cost of production would allow private sector vaccine production to develop, provided with technical support from government vaccine specialists. With policy to enable appropriate standards and protocols to be developed, registration of private sector vaccine production in Pakistan or importation of vaccines should then be undertaken by the same body which registers veterinary medicines. This should be followed by harmonization with other provincial registration bodies to reduce registration costs.

4. Feed production and monitoring

For an industry which is based completely on feed consumption, where it is known thatanimal production is directly related to feed intake, there is little government attention to forage policy.

Appropriate research is negligible, along with support for fodder seed production,development of feed as a commodity with appropriate basic feed testing facilities, or provision of systems for quality assurance for feeds.

With the current industry technical level government needs to have a policy for developing specialized capacity to adapt existing research, undertaking local research, harnessing and

regulating private enterprise for forage seed production, and developing feed quality standards and protocols.

5. Extension services

Extension includes public and private sector activities relating to technology transfer, attitude change, human resource development, and collection and dissemination of information. It does not include current government activities such as disease control and artificial insemination which aretermed extension by the government. There is a need for policy which sets standards of performance, inclusivity, and effectiveness to ensure extension services meet the needs of all levels of the industry.

If Government institutions do not have the capacity to deliver such programsit is necessary to develop mechanisms for managing and regulating private sector extension delivery. This would involve entities including consultants/agribusiness to be registered and facilitated to provide extension services where appropriate. For government extension managers, tertiary training in appropriate disciplines would be necessary.Policyshould enable contributions to funding of extension from industry, associated with accountability regarding extension needs.It would also require social development and poverty alleviation activities to be defined, and managed independently of L&DD Departments.

An extension coordination bodywould allow consultation and coordination between research, government institutions, NGOs and industry.

6. Breed improvement

Breed improvement services are currently provided below cost partly as an industry and social service, where production and supply of semen can be regarded as a public good, in the context of an industry which is dominated by landless and subsistence-level livestock owners. However the value to the industry of spreading exotic genes of unknown quality to producers who may not have production systems appropriate to exotic breeds is doubtful without systematic evaluation.

A review of the subject would determine:

Actual cost to government of production of semen and cost of insemination services

Assessment of genetic status of government semen (eg through progeny tests)

Actual costs to semen users including informal charges by government staff

Level of subsidy by government

Availability and cost of commercial insemination services

Survey of user characteristics and production systems

Analysis of ability of users to pay commercial rates

Analysis of constraints to public AI services including semen quality and quantity, availability and training of human resources, geographical limits to service, and awareness/adoption issues for users.

Results of this review would provide the information needed to understand if government AI programs are competing with commercial services, the importance of government services for livelihood development, and the costs to government of maintaining or increasing the scale of these actions.At the same time policy objectives should include facilitation and regulation of a viable breeding industry, with trading in genetics, private semen production and insemination, ensuring standards of business practice, and fair treatment for consumers in regard to standards of semen quality and insemination, including disease transmission.

7. Research and Development

Currently KPK tertiary institutions undertake research as well as the government Veterinary

Research Institute. Some L&DD Department projects are also classified as research to enable funding. There is no apparent coordination of these activities, priorities assigned, performance

evaluation, or input from stakeholders and end-users. Policy objectives should include prioritization of research based on formal engagement with each livestock industry end-users, funding contributions by end-user industries, accountability by researchers to funding bodies, evaluation and impact assessment by end-users, and measurement of adoption rates of research results. This would require governance by an independent body which assesses completed projects, and prioritizes and manages funding of future projects, and has representation from government, funding agencies and industry end-users. Outcomes should include competition between research bodies for grants, and linkagesbetween research bodies and extension entities.

8. Livestock Marketing

Recommended policy is that livestock marketsarenot limited to the public sector, with commercial entities competing to offer market services.Market management entities should be regulatedto ensure compliance with standards of market infrastructure and conduct, collection of data and collection of levies to fund market development.

Policy should require theKPK government to be responsible for licensing of market management entities, and developing standardized market rules (open auctions), levy collection, and market data collection. Provincial government will also regulate market livestock disease monitoring and quarantine, and movement restriction when required.

Recommended policy involves formation ofentities representing all functionaries involved in conducting markets, which can consult withKPK provincial governmentregarding market rules of conduct, and ultimately manage self-regulation processes. It also involves formation of livestock producer representative bodies which can consult with market management and government regarding market services and needs.It will facilitate an independent and autonomous regulatory organization funded from market transaction levies, representing government, producers, processors, agents and all other stakeholders.This organizationwill be responsible for advising market management entities regarding rules of market conduct, and developing capacity of industry associations to comply with regulatory framework, and establishing a market information and reporting service which employs specialists to develop standardized livestock descriptions, record prices, summarize data, assess trends, and coordinate information transfer to the media.

Policy should ensure that this organization has the capacity to manage the transition to a private sector led market system.

9. Meat slaughter, processing and marketing

The policy objective is a licensing process to enable private business entities to undertake domestic processing, with an accreditation and certification regime to ensure compliance with standards of infrastructure, operational hygiene and environment responsibility.

Policy will provide for the creation of an independent and autonomous regulatory body which is responsible for processor licensing, enforcing standards, and ensuring compliance with these standards in all licensed processing facilities. This body should be given the ability to manage the transition to private sector led processing through a program of capacity-building and awarenessraising. It should be able to be contracted out to provide similar services to exporters.

Policy should also ensure increased economic activity and standardization by removal of restrictions on the sale of meat on meatless days, and removal of price controls on the sale of meat in domestic markets.

10. Government farms and commercial enterprises

Government farms are limited in KPK to three which are ostensibly for producing and distributing genetic desirable material to industry, and a poultry farm for demonstration. While these farms

have a specific rationale which is not commercial, policy should be to retain them. Recommended policy should include development of guidelines for future involvement in public/private partnerships such as a joint venture Meat Development Company.

11 Animal welfare

The policy objective is a code of practice for animal welfare in markets, slaughter, transport, research, and commercial production including nutrition and management, which reflects good commercial livestock practice as well as current attitudes of society.

This would requireL&DD Department to take the lead in developing the code by consulting with livestock producers, and academic and citizen groups.Animal Welfare units would be established representing private animal societies, government and industry,to investigate cases of noncompliance, and to include animal welfare codes of practice in awareness programs.

12 Environment

Policy objectives are regulation of negative effects on the environment as a result of livestock management, transport or processing, or disposal of waste associated with these activities, giving particular attention to processors, feedlots and intensive livestock industries.Government will be required to develop the capacity of the KPK Environment Department toset standards and regulate livestock industry downstream effects impacting on the environment.Processors, feedlotters, intensive livestock managers will be required to comply with regulations associated with waste disposal.

13. Rangeland Management and pastoralism

In managing resources such as rangelands the role of technological interventions is very limited, and most of the issues, even seemingly technical issues, can only be addressed through policies.

Good policies should encourage a holistic approach which integrates ecological, economic and social aspects of use. They should involve multi-level governance that gives incentives and space for community participation in decision-making and adaptive co-management, and provide equitable and sustainable use of resources.Application of these principles, as pressure on KPK rangeland resources continues to increase, indicates the best environmental and livelihood outcomes will result from traditional communities being given the space and support to manage rangelands in customary and flexible ways.

Current policies were designed in the colonial era for forest resources. Recommended policies shouldaimto repair the socio-ecological setting that was the basis for traditional grazing systems.There are some policy initiatives available 75 whichinvolve strengthening of the capacity of transhumant communities to secure and manage traditional grazing routes, supported by community financial mechanisms to meet recurring costs of securing access to these routes.

A second policy area for repairing traditional settings involves re-establishing the winter and spring feedingsystems which through their attrition has forced earlier and damaging migration to summer pastures each year. Approaches include enhancement of winter lowland feed availability, partly through restriction of across-border flocks, administrative support to ensure migration routes remain open to grazing rather than forced trucking, and establishment of transit facilities on these routes to ensure grazing and health services are available.

As climate change and other uncertainties increase,a furtherbasisfor policywhich supports traditional users is reduction of risk for rangeland communities. This can be done by a range of means apart from adopting more conservative grazing practices which meet assessed stocking capacity. Risk mitigation is associated with the use of indigenous well-adapted breeds, with the adaptability that is gained from a spread of breeds, ages, types in an enterprise, and with ensuringflexibility of grazing regimes and management to meet environmental and economic

75

Landless Mobile Pastoralists Workshop Proceedings, Islamabad 2012

uncertainty.

76 Policy which supports customary management must also provide incentives for livestock owners to become less dependent on flock numbers as a risk management strategy or safety net. It must facilitate marketing channels and opportunities to realize economic returns from livestock when desired, building capacity for communities to manage issues such as livestock health. It must clarify land tenure where necessary to allow communities freedom to manage flexibly. It must also support opportunities for these rangelands to generate income for communities by alternative environment-based means, such as from ecosystem services in areas such as carbon sequestration, soil and water conservation, or biodiversity. Above all it must acknowledge that these communities have a huge incentive for sustaining the current environment if they are allowed the freedom to do so.

77 .

As well as support for socio-economic systems, policy must support the maintenance of the ecological resource. Science-based policies and regulatory systems have become ineffective for a number of reasons, particularly due to costs and the need for well-established tenure. However policy for these rangelands must include some biophysical assessment of livestock impacts. This should involve monitoring ecological condition using soil, water and vegetation parameters on grazed publicly-owned rangeland. By determining trends, measuringimpacts on endangered ecosystems, identifying causal factors, and setting benchmarks or trigger points there will be greater chance of predicting and managing ecological change.

The above policies should complement and support policies proposed in the Pakistan Forest

Institute draft Rangeland Policy. Where appropriate policiesshould include establishing principles for charging users with the costs of managing public rangelands, consulting with stakeholders to develop management strategies for improving the condition of public rangelands, and establishing education, awareness and incentive programsaimed at rangeland users. A Rangeland Advisory

Body to be constituted at provincial level with representatives from Departments of L&DD,

Forestry, Wildlife and other stakeholders will be essential to coordinate policy.

76

Holochek (2012) Proc Aust Rangeland Soc Conf.

77

IUCN Report: Supporting Sustainable Pastoral Practices (2012)

Section VIII Policy framework

1. DISEASE SURVEILLANCE AND PREVENTION

Policy – legal and regulatory basis

Institutional aspects Private facilitation sector

Current KPK NWFP Animal Contagious policy Diseases Act 1948 the basis for disease surveillance activities, but has deficiencies and lacks stakeholder involvement.

Veterinary Inspectors and

District Livestock Officers, who deal with disease control, have limited capacity and resources.

No formal role assigned to Private sector. Some

LDD vaccine programs.

Most commercial farms undertake their own disease surveillance and control.

Policy

Australia

Policy in

USA in Surveillance and control is by a not-for-profit company representing and funded by federal and state governments, and livestock industry stakeholders, (under the

Livestock Industries Funding Act

1996.)

It coordinates disease surveillance, emergency preparedness, animal health and welfare standards, accreditation, and vet. policy development.

At the local level surveillance and control is the responsibility of an

Authority funded by producer levies and government.

(NSW Stock Diseases Act 1923 and NSW Sock Disease

Regulation 2009)

Surveillance is limited by lack of national livestock ID programs.

Animal Health Australia

Ltd is the public company established by the Federal

Govt.

The Livestock Health and

Pest Authority is the NSW entity which monitors disease occurrence and advises re control at state level.

Regulations only apply to movement birders. across state

Private suppliers of vaccines and medicines may have formal training and advise farmer-clients regarding occurrence and control.

The private sector is unwilling to bear surveillance costs.

Policy in India

Recommended policy

Programs target trans-boundary disease

Surveillance, government. epidemiological analysis, and epidemic control to be core responsibilities of

Policy objectives to depend on technical feasibility of achieving disease-free status, or controlled status.

National Animal Disease

Reporting System, the

National Animal Disease

Referral Expert System, and the Assistance to States for

Control of Animal Disease program.

An agency at provincial level be identified to address disease control and surveillance issues

Where technically feasible existing institutional arrangements need strengthening to enable surveillance functions such

Facilitation of the private sector to provide information to government regarding disease incidence.

Interim need for a mechanism to provide control services to

as data collection at markets/slaughterhouses. specific areas of industry.

2. DISEASE TREATMENT

Policy legal and regulatory basis

Institutional aspects Private facilitation sector

Current KPK policy

Livestock and human medicine registration regimes are the same. The federal Drugs Act

1976, provides registration of drugs, while the sale of these drugs is regulated by the

Provincial Government.

Registration of vets is undertaken by the Pakistan

Veterinary Medical Council, which is a federal body

Government L&DD Dept.

Veterinary Services provides some level of free treatment; established under the Pakistan

Veterinary Medical Council

Act, 1996

There is limited producer confidence in the effectiveness of medicines available in the open market.

Policy

Australia in All medicines must be registered for use according to labels. Labelling directs correct use of medicines including specified conditions and dose rates, harm to treated animals, or with-holding periods.

Specific livestock medicines such as antibiotics must be administered by vets who must be accredited by Animal Health

Australia.

The Australian Pesticides and

Veterinary Medicines

Authority sets the standards of use (and requires these standards on the label)

Compliance with labelling standards is the responsibility of the State govt. Dept. of

Primary Industries.

Medicines are available private through sector distribution, to be used by private vets, producers and contractors.

Private suppliers and retailers of vaccines and medicines may advise producers re treatment methods.

Policy

Malaysia

Recommended policy in Regulation of veterinary medicines is on a national basis.

Livestock medicine registration and labelling to be carried out by an existing body, to ensure that users are aware of safe use, dosage rates, etc.

Regulatory framework along with dispute resolution and accountability of veterinarians, may be introduced through

Provincial legislation.

Managed by the National

Pharmaceutical Control

Bureau, which is with the

Ministry of Health

Also have access to ASEAN

Drug Harmonisation Programs

LD&D Dept. to provide incentives and penalties to ensure compliance with labelling protocols

Department to support subsistence farmers in disease treatment and control by providing training, raising awareness and ensuring availability of quality medicines

The public sector to maintain the responsibility for disease epidemic control.

Disease treatment by private sector vets or producers using labelled medicines.

Subsistence producers provided with a sustainable mechanism for delivering community health livestock treatment.

3. VACCINE PRODUCTION

Policy – legal and regulatory basis

Institutional aspects Private facilitation sector

Current KPK policy

The KPK govt. produces vaccines necessary for the livestock industry in the

Veterinary Research Institute.

There private is involvement sector vaccine production no of in

Policy in

Australia

Vaccines must meet defined standards of quality regulated by an independent body.

Australian Quarantine and

Inspection Service regulates importation of vaccines.

Australia production and imported vaccines must meet

Australian Pesticides and Vet.

Medicines Authority approval, and Australian Code of Good

Manufacturing Practice standards.

Essential vaccines not available commercially are produced by government entities. .

A range of multinational and smaller private producers meet mass market and specific requirements. vaccine

Policy in India Public-private collaboration commenced in 1982. Quality is monitored by the Central

Veterinary

Laboratory

Standards

Presently there are still 19 public vaccine producers.

There are 7 private vaccine producers

Recommended policy

KPK govt. to be responsible for assessing vaccine needs.

Where commercially viable, vaccines to be imported or produced by the private sector

KPK Government VRI production to be limited to essential non-commercially viable production.

Govt. facilitation of the private sector entry outsourcing through or licensing, identifying

while commercial essential nonvaccine production continuing to be supported by the public sector.

Legal framework be provided for regulation through registration, standards and enforcement.

4. FEED PRODUCTION AND MONITORING

Policy – legal and regulatory basis

Institutional aspects

Current policy

KPK No laws regulating animal feed. demand and assessing ability of industry sectors to pay.

Private facilitation sector

Policy in

Australia

Policy in USA

State policy requires analysis and identification of feed ingredients, and labelling of manufactured animal feeds,

(under the NSW Stock Foods

Act, 1940 and Stock Food

Regulation 2010.)

For non-manufactured feeds such as grain or hay, policy requirement is vendor declaration covering chemical residues and fungal toxins.

(Australian Meat and

Livestock Industry Act

1997).

A national policy as a basis for export and domestic trade in non-manufactured feeds is not in place.

Policy in Canada Currently upgrading and modernizing regulation under the Feeds Act 1985

Meat and Livestock Australia

Ltd is the industry-funded company compliance. which oversees

Regulation of manufactured feeds is by the Division of

Animal Feeds in the US Food and Drug Administration.

The Canadian Food Inspection

Agency is the federal regulatory body.

Analysis by private laboratories. nutritional quality

“Feedtest” services are licensed to private sector (previously developed by state agencies).

Feed

Regulation costs are resisted by the private sector

This industry is based on strict product standards.

Recommended policy

KPK Government to develop the capacity to administer feed quality testing and establish Vendor declaration procedures for nonmanufactured feeds.

Govt. to establish an independent feed test laboratory, and use it as a basis for developing improved livestock nutrition.

Develop trade in nonmanufactured feeds/forage as a commodity, supported objective by quality analysis, underpinned by quality assurance process.

5. EXTENSION SERVICES

Current policy

Policy – legal and regulatory basis

Institutional aspects Private facilitation sector

KPK There is no comprehensive policy regarding access, quality and effectiveness of various services.

LDD Directorate of extension services provides these through

District Livestock officers.

Health and AI services are regarded as Extension, limited in accessibility, quality and a production focus.

Little private sector involvement in extension services except limited activity of dealers in animal feed and medicines

Policy in

Australia

Agriculture and livestock issues are not included in the

Federal Constitution and are delegated to the states.

State government policy is to provide limited farmer support and education.

State governments deliver extension through a mix of methods including fee for service, and out-sourcing to private sector providers.

Private extension sector and training providers compete to offer specific products.

Policy in China There has been a move away from extension support and delivery by top-down public agencies.

Remaining extension agencies are required to generate their own funding.

Policy in USA Farmer technical support is still based on traditional rural university land grant system.

Verticallyintegrated production and marketing entities now provide technical support for producers

Strong sector influence private political

Recommended policy

Legislate mechanisms to enable funding of extension from industry contributions.

Improve management of production extension delivery through outsourcing.

Ensure government has management capacity to deliver subsistence extension to production sector,

6. BREED IMPROVEMENT

Policy – legal and regulatory basis

LDD to again develop production extension capacity, and areas such as market chain support.

Institutional aspects

Facilitate training and capacity of private extension providers.

Private facilitation sector

Current policy

KPK No regulation or standards regarding semen production and use.

Federal regulations control the import of semen or live animals

LDD operates breeding farms for production of breeding stock, and semen for use in AI centres.

Support for publicprivate partnerships importing genetics.

Policy in

Australia

USA policy

State policy regulates semen production and use.

Semen and embryo importation is regulated at notional level.

Breed improvement policy is implemented through the

Australian Dairy Herd

Improvement Scheme

(ADHIS) which has evolved from a government extension service into a private company interests of representing livestock breeders. ADHIS charges for services, but also receives government funding and technical support.

Limited regulation currently existing.

Regulation by State

Department of Primary

Industry and Federal

Australian Quarantine and

Inspection Service.

Measurement of genetic values through ADHIS.

Genetic development supported by producerfunded organisations.

No restrictions on investment and free competition by private producers and suppliers of breeding stock, semen and embryos. Breed standards maintained by private breed societies.

Breed promote and regulate livestock standards societies genetic

International policy

Recommended policy

International agency develop protocols and support for indigenous conservation. genetics

Review cost-benefits to industry of current public breed programs. improvement

Regulate to ensure standards of imported and traded semen.

Domestic Animals Genetic

Resources Information

System (DAGRIS), and the

Regional Project on

Sustainable Management of

Endemic Ruminant

Livestock (PROGEBE).

LDD to regulate standards of private semen production, and provide technical support for commercial breed organisations. development

LDD to develop protocols for preservation of indigenous breeds, and supply of semen to livestock owners.

.

Indigenous breed conservation is at odds with private sector breed marketing activities.

No restrictions on private investment and trading in livestock genetics.

LDD to support growth of a viable private breeding with breed standards. sector industry appropriate

7. RESEARCH AND DEVELOPMENT

Current policy

Policy – legal regulatory basis and Institutional aspects

KPK Partly covered by the NWFP

Agricultural Universities

Ordinance 1981 and WP

Milk Boards Ordinance 1963.

Limited undertaken research by is

LDD

Veterinary Research Institute and two universities

Private facilitation sector

Policy in Australia Livestock industries help pay for research through levies, and research organisations compete for these funds.

(Federal Science and Industry

Research Act 1949, and Rural

Industries Research Act

1985.)

.

Research priorities set by the

Rural Research and

Development Council.

Research funding at Federal and State level is managed by a series of R&D Corporations which are jointly funded by producers and government.

Cooperative

Research Centre programs aim to create partnerships between private and public sector.

Private agencies or farmer groups may also contract to undertake research.

Policy in USA Strong federal government support for state Land Grant university research programs

Policy in Canada Centralised federal management of research

. The National Agricultural

Research, Extension,

Education and Economics

Advisory Board

(NAREEAB) advises the

Secretary of Agriculture on priorities.

Coordinating bodies are the

National Research Council, and the Natural Science and

Engineering Research

Council of Canada.

Public sector funds are matched by private dollars.

Recommended policy

Research to be managed by an independent body which assesses current and completed projects, and links funding donors with stakeholders.

8. LIVESTOCK MARKETING

Policy – legal and regulatory basis

Research Coordinating body has representation from government, funding agencies and industry end-users.

Institutional aspects

Research bodies to compete for funding.

Private facilitation sector

Current policy KPK livestock markets have been controlled exclusively by Local Government, under

West Pakistan Municipal

Committees (Cattle Market)

Rules 1969

There are restrictions on establishing cattle markets and undertaking sale and purchase of animals in the

Local Government

Ordinance, 2001, Punjab

Agricultural Produce Markets

Ordinance 1978.

Policy in Australia The objective of livestock market policy is to ensure free competition with transparency of information and fair business practice (in the state of NSW under NSW

Stock, Property and Business

Agents Act 2002, NSW Stock and Business

Regulation 2003.)

Agents

Livestock quality assurance, identification and traceability are regulated by the federal

Primary Industries Levies and

Charges Collection Act 1991, and Australian Meat and

Livestock Industry Act 1997.

Policy in USA Regulation under the Packers and Stockyards Act 1921 limits intrusion government in markets. of

Local government auctions the rights to manage livestock markets and to collect revenue, without establishing standards of service or infrastructure.

Implementation of market policy is through Codes of

Practice administered by

Associations of Agents.

All formal livestock transactions involve a levy which funds Meat and

Livestock Australia (MLA) a body which provides market information, animal identification and traceback, product QA, and market development.

Regulations are enforced by

US Department of

Agriculture.

Private conduct of markets is illegal.

Livestock may be markets privately owned and managed.

Policy in Canada Regulation and free trade of livestock in markets is not widely supported, with principles of free trade important.

National monitoring programs under Canadian

Food Inspection Agency are being resisted by private sector.

Free market practice is guided by US

Livestock Marketers and the National

Cattleman’s Beef

Association which aims to support and protect auction market standards,

Private market management is supported by the notfor-profit Livestock

Markets Association of Canada.

Recommended policy

Competition from private sector to hold livestock markets, with KPK govt. regulation of market practices and standards, and collection of levies from market participants to fund market development.

Legislation is needed to reform the markets and redefine the roles of various operators, with coordination by an independent regulatory entity, representing the major stake holders.

The KPK government to establish market standards, and market information collection and distribution.

The private sector to operate these markets within the KPK regulatory framework. Markets to be economically sustainable based on fee for services.

Private entities should be encouraged to establish markets which offer more services, better infrastructure, and facilities.

9. MEAT PROCESSING

Policy – legal and regulatory basis

Institutional aspects

Current policy

Private facilitation sector

KPK Local Government has a monopoly over slaughter houses and slaughter control under LGO 2001.

Meat processing hygiene and quality standards are absent as product safety is regulated by the Food Safety and

Standards law which does not apply to raw meat.

Prices of meat, and legal slaughtering days are controlled by the KPK government, with outmoded laws preventing slaughter of so-called useful animals

(Slaughter Control Act

1963).

Local Government collects revenue from Municipal

Slaughterhouses but provides minimal facilities for efficient or hygienic operation.

Inspection and certification by provincial officers is also corrupt and ineffective.

The private sector operates export meat processing units with quality and hygiene standards set by the export customers.

Policy in

Australia

Policy in China

An independent national body represents producers and processors to develop domestic standards and ensure compliance. This body is responsible for processor accreditation.

The federal Meat Industry

Act 1993 is the basis for

Australian standards. The

NSW Meat Industry Act

1978 and Food Act 2003 regulate food safety compliance.

Poor regulation and informal sector domination ensure low income consumers have access to low quality meat.

Policy in Malaysia Regulated and standardised

Halal product assurance

An independent body Aus-

Meat Ltd is funded by producer levies and processor donations standards. to ensure

AQIS ensures compliance with export standards at cost to exporters.

All producers and processors have a stake in product quality assurance.

De facto accreditation for State-owned high-priced meat is available through reliance on the credibility and reputation of particular company branding. processing facilities had low standards; now largely taken over by private processors.

Department of Islamic

Development

(JAKIM)

Malaysia

Recommended policy

Competition from the private sector to undertake domestic meat processing.

Accreditation of processing facilities and compliance with standards to be undertaken by independent body. an

Repeal of legislation which requires slaughter in a

Municipal facility, prohibits slaughter of useful animals and instates meatless days.

Retail meat price regulation and controls on sale to be removed.

Establish an independent institution to be responsible for processor accreditation, and to develop standards and ensure compliance in all licensed processing plants.

10. GOVERNMENT AND PRIVATE FARM MANAGEMENT

Policy – legal and regulatory basis

Institutional aspects

The private sector should have freedom to establish and operate

Private facilitation meat production facilities within the regulatory framework or guidelines established by the government. sector

Current KPK policy No regulation of farming in the public or private sector.

LDD Dept. owns farms used for research and breed maintenance purposes.

Policy in Australia

Policy in USA

There is no government ownership of assets unless for the public good, and no participation in commercial production activities. There is no government ownership of farms except for research purposes, or for careful management of arid rangeland.

Farm policy supports establishment of strong farmer organisations to enable clear recommendations to government from the private sector.

Minimal regulation of farmers reflects strong political base.

Rangeland leased to farmers is administered by State agencies under strong environmental criteria.

Private farmer organizations at State level are represented at Federal level in peak commodity councils.

Private sector is free to engage in commercial livestock production but receives inadequate support from the public sector.

Special assistance for private farmers includes taxation benefits, low interest loans environmental for expenditure, and disaster assistance.

Private sector industry supports subsidy policy termed “farm income stabilization”.

Policy in China There was recent extensive privatization of former state-owned enterprises.

All land allocated to farmers is owned by the state.

Recommendation Review all government participation in commercial livestock production, in terms of current function, and activities for the public good, developing criteria and standards for operating these farms.

.

11. ANIMAL WELFARE

Policy – legal and regulatory basis

Develop guidelines for future involvement in public/private partnerships such as a joint venture Meat

Development Company.

Institutional

There government for has agricultural investment. been support corporate

Facilitate industry representation mechanisms to enable effective consultation and industry advice to government.

Private facilitation sector

Current KPK policy The Prevention of Cruelty to

Animals Act 1890 covers the subject, but does not deal with current farm animal management or neglect and cruelty adequately, and penalties need review.

Policy in Australia Reflects strong community attitudes to industrial farming concepts, with emphasis on standards for routine management, housing, transport, and slaughter.

(NSW Prevention of Cruelty to

Animals Act 1979. NSW

Prevention of Cruelty to Animals

Regulation 2006.

NSW Animal Research Act

1985).

Policy in USA Regulated under Animal Welfare

Act (2010), but with farm animal policy moderated by farm political status.

Policy in China A new Animal Protection Law was drafted in 2009 with broad objectives and possible social impacts.

Enforcement capacity is absent

There is no regular private sector involvement in the protection of animals.

Policy inspection research. involves and prosecution by RSPCA for a range of issues including starvation of grazing animals, and use of animals in

The Act is enforced by

US Dept. of

Agriculture, Animal and Plant Health

Inspection Services, and Animal Care agency.

Industry response is typified in Agents’

Saleyard Code of

Practice,

Livestock and

Transporters Code of

Practice.

Limited impact on private farm animal production.

Implementation of regulations in private farming sector likely to be minimal.

Recommended policy

12. ENVIRONMENT

Involve the community in assembling a code of practice for animal welfare in markets, slaughter, transport, research, and commercial production, including management. nutrition and

Policy – legal and regulatory basis

LDD to be responsible for enforcement by a selected animal welfare body. coordinating

Institutional

Establishment of grassroots oriented animal organizations welfare to monitor and report neglect and cruelty.

Private facilitation sector

Current KPK policy Before 18th Amendment regulated by Pakistan

Environment Protection Act,

1997. Now a provincial issue

Policy in Australia State environmental legislation requiring any development such as a feedlot, livestock market or slaughterhouse to be licensed by the state Environmental

Protection Authority and local government

Environmental Plan.

Local

Policy in USA

Policy in China

The Environmental Protection

Authority has authority to regulate all animal feeding operations in USA. This authority is delegated to individual states in some cases

China Environmental Protection

Law is in existence and amended in 2013

A license requires no adverse effects on water management, soil and native effects, vegetation waste management, noise and odour control, chemical management, fire management, cultural impacts. and heritage

Concentrated animal feeding operations are regulated under the

National Pollutant

Discharge Elimination

System (NPDES).

Environmental

Protection Authorities have weak compliance

Private sector compliance costs are a large component of feedlot establishment costs.

A rapidly increasing private sector issue.

Private sector industries may bribe regulators.

Recommended policy

Regulation of negative effects on the environment as a result of livestock management, transport or processing, or disposal of waste associated with these activities, giving particular attention to processors, feedlots and intensive livestock industries

Develop the capacity of the KPK Environment

Department to set standards and regulate livestock industry downstream effects impacting on the environment.

Processors, feedlotters, intensive livestock managers will be required to comply with regulations associated with waste disposal.

13. RANGELAND MANAGEMENT

Policy – legal and regulatory basis

Institutional aspects Private facilitation sector

Current KPK policy Current forest management is influenced by KPK Forest

Ordinance 2002.

Draft policy exists to regulate rangelands grazing management and environmental protection, but there is no LDD policy on rangeland management and no involvement

Department of LDD

Responsibility for public rangelands is placed with the Forest Department which has no coordination or linkages with the

Department

LDD

Private rangelands are not subject to any regulation.

Policy in Australia For public lands which are grazed there is State government regulation of grazing management, and for private land there are management incentives.

(NSW Protection of the

Environment Operations Act

1997 and General

Regulations 2009)

Policy in China

Policy in Bhutan

Recommended policy

China Grassland

(amended 2002) was promulgated for protection, rational use and sustainable development of public grazing lands.

Bhutan Land Law (2007) resulted from a period of consultation which included local communities and international agencies.

Law

.

Support traditional grazing practices and management of rangelands by traditional users, who have the most to lose from environmental degradation.

Establish practical and costeffective ecological monitoring systems.

Where possible charge users with management costs.

The State Department of

Environment and Water regulates impacts partly through locally-managed

Catchment Management

Authorities.

Private lessees lease

Government-owned rangeland under management terms and conditions.

Private owners of rangeland are educated regarding sustainable grazing management

Local government in consultation with provincial government is responsible for monitoring and has the power to close and exclude livestock from rangeland.

Communities have the right to continue traditional grazing practices in forest and rangeland areas.

Establish management entities or Rangeland

Advisory Bodies which include the widest range of stakeholders, including Forestry and

Livestock Departments.

Law aims to control private activities grazing on rangeland allocated to families.

Private livestock owners conform to community attitudes.

Include all non-forest wastelands and public grazing areas in monitoring and management planning.

References

Asian Development Bank (2008) Report: National Agriculture Sector Strategy

FAO (2013) “KPK Agricultural Policy: A Ten Year Perspective”

IUCN (2012) Report: “Supporting Sustainable Pastoral Practices”

KPK Planning Commission (2010) Comprehensive Development Strategy 2010-17

Kreutzman H (2013): “Pastoralism, Research, Policy and Practice”

Planning Commission GOP Report: (2011) “Framework for Economic Growth”

Trade-related Technical Assistance Project II (2012) “Enhancing Livestock Sector

Competitiveness”

World Bank (2002) Report: Pakistan Poverty Assessment,

World Bank (1999) Pakistan Strategic Country Environmental Assessment”

Zia U.E. (2009) “Pakistan: A Dairy Sector at Crossroads” (FAO)

Appendices

I. Scope of Work

Specific Challenges to Be Addressed by this Consultancy. Agriculture has a pivotal role in

Pakistan’s economy, accounting for about one-fourth of the GDP and employing almost half the population. Livestock is an important sub-sector of agriculture. The dairy and livestock sector plays a vital role in the economy of Punjab because of its contribution to rural incomes and its employment capacity. In 2009, value-added in livestock was about 50 percent of total agricultural value-added in Punjab, and approximately 30 to 40 percent of incomes in rural areas was derived from livestock-related activities. Major products of livestock include milk, mutton, beef, hides and skins, poultry, wool/hair, and farmyard manure.

Despite its importance to Pakistan’s agrarian economy, the dairy and livestock subsector faces a number of significant problems. To begin, there is no clearly-enunciated policy framework; what exists is a patchwork of rules and regulations that overemphasize the domain of the public sector and generally restrict the role of the private sector. Moreover, the existing policy framework has resulted in an inefficient sector beset by a host of problems, including rapidly deteriorating infrastructure, lack of standards, unreliable quality of inputs, and severe imbalances in market power that leave the small producers — who represent the majority of producers of meat and milk — vulnerable to exploitation. Owing to these difficulties, the sector has been growing at a dismally low rate of around 4.5 to 5 percent annually in recent years, which is significantly below its potential. It has also has not been able to contribute to exports.

A modern policy framework would address the proper role of state actors and private entities in matters such as setting of standards, research, breeding and extension services. To improve cattle markets, which are presently poorly managed and are devoid of demand driven market practices, an efficient policy framework would introduce, inter alia, the proper application of weights and measures; sale methods; provision of quarantine facility; disposal of carcasses; an application of rental and stall-allocation policies; time-sensitive and equitable means for dispute resolution; enforcement of environmental, public health, and food safety requirements; and mechanisms for meeting recurrent and periodic maintenance requirements.

The challenge of this consultancy is to draft a policy framework with improved institutional arrangements for the governance of livestock markets that is consistent with international best practice.

A. Objective of this Consultancy. The objective of this consultancy is to draft and recommend an international best practice livestock policy framework that promotes efficiency and eliminates rent seeking behavior and market distortions.

B. Specific Tasks of the Consultant(s). Under this Scope of Work, the Consultant(s) shall perform, but not be limited to, the specific tasks specified under the following categories.

1. Background Reading Related to Understanding the Work and Its Context. The

Consultant(s) shall read, but are not limited to, the following materials related to fully understanding the work specified under this Consultancy:

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a. Livestock policies of at least three jurisdictions recognized internationally as being the most progressive in this regard. b. USAID Firms Project Policy and Legal Reviews for Punjab, Sindh and Balochistan c. Economic Reports of the Khyber Pakhtunkhwa Province d. Relevant federal reports, census or surveys carried out to document productivity in the

Livestock Sector of KPK e. Public Sector Budgetary Documents such as the Annual Development Program f. Draft KPK Livestock Policy recommendations of the Food and Agriculture Organization, 2012 g. Existing laws applicable in Pakistan including: i. West Pakistan Animals Slaughter Control Act, 1963 ii. West Pakistan Animals Slaughter Control (amendment) Ordinance, 1965 iii. West Pakistan Animals Slaughter Control (amendment) Ordinance, 1970 iv. Punjab Animals Compound Feeding Stuff Act, 1974 v. Prevention of Cruelty to Animals Act, 1890 vi. West Pakistan Prevention of Cruelty to Animals Rules, 1961 h. Relevant reports prepared by the Federal Bureau of Statistics and the KPK Bureau of Statistics i. Schinzel, H. U. (1982), Demand, supply and marketing of livestock products: A case study of a selected area in Punjab. Report No. 9.Lahore: Pak.-German Technical Cooperation, Livestock

Production, Extension and Artificial Insemination Service. j. Livestock Action Plan (2003), Action Plan for Livestock Marketing Systems in Pakistan . Social

Sciences Institute, National Agriculture Research Centre, Food and Agriculture Organization of the United Nations. k. An Assessment of Livestock Production Potential in Pakistan: Implications for Livestock

Sector Policy, The Pakistan Development Review Part II (Winter 1999) pp. 615–628

2. Background Interviews Related to Understanding the Work and Its Context. The

Consultant(s) shall interview relevant individuals or groups of individuals in order to fully understand the work specified under this Consultancy. These shall include: a. Firms Project COP, Mr. Donald R. Hart b. Mr. Suleman Ghani, Firms Project Senior Policy Advisor c. Mr. Farrukh Mehboob Khan, Component Lead Value Chain Development d. Mr. Hassaan Ghazalli, Firms Project BEE Specialist e. Relevant short term technical experts associated with the Firms project f. Secretary Agriculture Department, KPK or his designee g. Secretary Forest Department, KPK or his designee h. Representatives of the Ministry of Food Security and Research, Islamabad i. Representatives of relevant firms, trade associations, international development organizations and non-government organizations working in the livestock sector of KPK j. Relevant members of the KPK Chamber of Commerce and Industry

Note that interviews a. through e. may be scheduled for the consultant in one session at the

Firms Project offices.

3. Value –added Tasks Related to Accomplishing the Scope of Work’s Objectives.

The Consultant(s) shall use his/her education, experience, knowledge of international best practices, and additional understanding gleaned from the tasks specified in A. and B. above to accomplish the following:

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a. Review the livestock policies currently in place or under consideration in the KPK Province and evaluate their alignment with international best practices along with their ability to improve performance of the livestock sector b. To compare and contrast the domestic policy framework to policies in jurisdictions recognized as having international best practices c. Identify and detail the deficiencies and distortions in the policy framework and estimate the economic impact and losses caused by such deficiencies/distortions d. Impact analysis related to improved regulations and business processes e. Draft an international best practice livestock policy in a format consistent with that used by the

Government of the KPK, including recommended regulatory framework, business processes and institutional set-ups consistent with fair, efficient, growth-oriented livestock markets. f. Identify the constraints in the provincial agriculture department and other relevant institutions and carry out a needs assessment of public and private sector institutions responsible for livestock market operations g. Identify down-stream Firms Project Actions (using the format in Annex B hereto) that will strengthen/support the livestock markets system of the province h. To perform the above tasks in coordination with Firms Project consultant(s) engaged to carry out a Rapid Market Appraisal i. To perform the above tasks win coordination with Firms Project consultant engaged to carry out a legal review and draft livestock sector legislation j. To provide a consultation and exit meeting with COR and other USAID staff as determined by

COR.

4. Deliverables. The substance of, findings on, and recommendations with respect to the above mentioned tasks shall be delivered by Consultant(s) in a written deliverable in the format described in sections IV., V., and VI. of Annex A – Standard Information that Applies to All

FIRMS Project Scopes of Work.

II. Period and Place of Performance

This assignment is planned to take place between April 20, 2013 and June 8, 2013 with 35 days in country and 9 days in Australia, the consultant’s home of record. By approving this SOW and

Personnel, the COR approves performance outside of the contract’s Place of Performance,

Pakistan, according to section F.4 of the Firms contract.

III. Budget LOE

The total labor for this Consultancy is 44 days LOE, including 3 travel days, as per Annex C hereto.

IV. Qualifications of the Consultant(s)

Consultant must have a Master’s degree, preferably a terminal degree in veterinary sciences, agronomy, natural resource management, livestock economics or related subjects, with at least ten years working experience in the field of livestock management or any other relevant field; measuring and monitoring changes in the efficiency of livestock markets; advising government institutions on the livestock policies; and creating and using various modeling techniques to improve the fair, efficient growth of livestock markets

2. Record of meetings conducted during consultancy

3. Preliminary KPK Legal Report Dr Dil Mohammad

4. Preliminary Rapid Market Appraisal Mr Shahzad Safdar

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