Pakistan Oilseed Meal Imports Surge May 30, 2014
Pakistan’s Marketing Year (MY) 2014/15 imports of soybean meal are projected at a record 800,000 tons, up 23 percent from the estimated import level of 650,000 tons the last year. Traditionally, the entire soybean meal requirement for Pakistan is sourced from India. During MY 2014/15 Trade sources reveal that Pakistan is likely to import 350,000 Metric Tons of Soybean Meal (SBM) from South American origin, more than double the quantity that was imported in the preceding year. During MY 2013/14 there was an import of 160,000 MT of soybean meal from Argentine mainly due to increased prices and quality issues of Indian SBM, a traditional source since decades.
Pakistan’s meal requirements are showing increasing trend due to the anticipated expansion of the poultry, dairy and livestock, and aquaculture sectors. Pakistan’s poultry meat production is growing at a steady pace of more than 10 percent per annum. The layer industry is also expanding rapidly as it is able to provide a relatively cheap protein source compared to other sources of protein. Simultaneously, dairy feed production is increasing at an accelerated pace to meet the demand of the expanding commercial dairy units that rely on high milk yielding animals which require balanced feeds. This has created business opportunities to several poultry feed manufacturers, which have started producing dairy feed and in turn spiking the demand for soybean meal to meet the rations’ needs of high protein content. This has resulted in a shift in demand of soybean meal by feed millers from the traditional 5-7 percent to 10-15 percent.
To date, U.S. exporters have not shown an interest in this market. However, the lack of consistency in the quality of Indian soybean meal and growing demand are creating potential sales. Based on an anticipated growth in meal industry the potential for quality SBM import is on the increase and post expects demand to grow to more than a million tons over the next 5 years. The United States with its high quality and consistent product is likely to become a strong competitor for SBM exports to Pakistan