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BR Research

Meat heat grows, but none to blame for

Published March 9, 2010 Updated March 9, 2010 12:00am

The price of red meat has jumped 14 to 16 percent since the start of current calendar year. Try asking for a reason and you will have to merry-go-round a series of culpable factors. As one would expect, (hint, hint) meat retailers say they have no hand in the current price hike.
Instead, they blame livestock traders and farmers for increasing the market value of cattle. Traders, in turn, pass the blame to exporters and smugglers for creating shortage in market.
The fact that meat is being exported holds some truth. According to the data released by Federal Bureau of Statistics, meat exports during July-Jan FY10 rose to 21,588 metric tons from 15,083 metric tons in same period last year.
As for smuggling, livestock traders say that cattle smuggling to Middle East through Iran is increasing after local traders were offered double prices.
Likewise, smuggling to Afghanistan has also reportedly risen in tandem with the increasing number of foreign troops in the war-torn north western neighbour. Yes! Those gun wielding protein eaters are apparently creating a significant demand for Pakistani cattle.
Government officials, however, hold a different but still a rational view. One officer at the Ministry of Livestock, who prefers not to be named, asserts that in absence of documentation it is not meaningful to strongly relate current price hike to the rise in smuggling.
Similarly, the official argues, meat and livestock exports, though increasing, are negligible compared to the total domestic animal population and meat consumption at home.
Then who or what is behind the present meat price hike? A plausible reason offered by the government is that prices have increased in line with inflation - tracking the rise of the price of commodities and utilities.
If thats true, then what explains the sudden spike in prices, when inflation has been a gradual year round phenomenon?
Perhaps, one would never know the real reason nor find out who is capitalizing on whom - not unless the industry is documented. That would require another round of high level government meetings with plenty of pricey stakes on a plate to deal with.

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