KARACHI: Pakistan’s fast-growing fodder industry is targeting up to $1 billion in annual exports within five years, but growers say reaching that goal depends on Islamabad securing market access to major buyers such as Saudi Arabia and China.

The country exported 930,802 tons of “feeding stuff for animals” worth $112.2 million in the fiscal year ending June, according to the Pakistan Bureau of Statistics (PBS) data shared with Arab News. The United Arab Emirates accounted for the largest share at $33.2 million, leaving exporters heavily reliant on a single market.

Industry representatives say expanding cultivation without opening new destinations risks a supply glut that could depress farm prices and undermine a rapidly emerging export niche.

“We have mainly one country, the UAE, which is a purchaser,” said Sarfaraz Ali Janjua, chief executive of GRJ Agriculture and Livestock Farms and head of the Pakistan Hay Association.

He urged authorities to engage major importing countries “at the government-to-government level.”

The appeal reflects the growing importance of a specific export crop driving the sector’s expansion.

Rhodes grass — a high-protein tropical fodder crop used to feed dairy cattle, horses and camels — has gained commercial value as water-scarce Gulf states rely on imports rather than domestic cultivation.

“There is no agricultural land there (Gulf region). There is mostly desert due to shortage of water,” said Irfan Mahmood, an animal feed expert managing GRJ farms in Sindh province.

“In Saudi Arabia, agriculture is limited. In Dubai, there is no agriculture. Sometimes, if it rains once or twice a year, then grass grows. There are big animal farms, such as horses, camels, goats and sheep. They have to import fodder from other countries. Pakistan is one of them.”

Pakistan’s exports to Saudi Arabia remain minimal at $307,000 annually, compared with much larger imports from Sudan, while China has yet to approve the product for import.

“China could be a big buyer if the government takes initiative because the product is not registered there,” Janjua said.

“Saudi Arabia imports [more] Rhodes grass from Sudan, not from Pakistan. If there is an agreement at the government level, then definitely Saudi Arabia is a bigger market than the UAE, and our Rhodes grass can go there as well.”

RAPID EXPANSION AT HOME

Farmers have rapidly expanded acreage in response to Gulf demand. Rhodes grass cultivation has increased more than 60 percent in three to four years to roughly 120,000 acres nationwide.

On GRJ’s farms in Mirpurkhas district, workers harvest up to 60 tons daily.

“Sometimes they earn Rs1,000 ($3.6) a day, sometimes Rs1,500 ($5.4) a day. It depends on the amount of work,” said labor supervisor Muhammad Soomar.

“If they harvest fewer acres, they earn less.”

GRJ plans to boost exports 36 percent to 30,000 tons this year but may pause expansion due to oversupply fears.

“If Pakistan’s agricultural setup exceeds 100,000 acres, naturally the market will not be local. People will be worried,” Janjua said.

“If no other country comes in, then there will be problems. Farmers will suffer and will not get proper market rates.”

The shift toward export crops is partly policy-driven rather than purely market-led.

The growth comes as Pakistan reduces crop subsidies under a $7 billion IMF stabilization program approved in September 2024, pushing farmers toward export-oriented agriculture instead of state-supported staples.

“There is no rate support for other crops. There is no government policy, no government subsidy, no cover,” Janjua said.

He said Pakistan’s Trade Development Authority should actively negotiate access abroad.

“There is a Trade Development Authority (of Pakistan). They should engage at the government level and send delegations,” he said.

“Buyers should be briefed. Our products should be sampled.”

Pakistan enjoys “very good relations” with China but must complete regulatory registration before exports can begin, according to Janjua.

“We should talk at the government level and get it registered. To China, we can also export animal feed by road, which would be a breakthrough,” he said

POTENTIAL AND OBSTACLES

Beyond regulatory approval, exporters cite taxation on imported machinery, foreign exchange conversion losses and customs duties as barriers to scaling production.

“Exporting is very difficult. When we bring in foreign exchange, we do not get favorable rates. We face customs and regulatory issues,” Janjua said.

“There should be zero taxes on machinery. Heavy machinery and tractors are not made locally, so we have to import them, and taxes are high.”

Despite the challenges, industry participants say Pakistan’s fodder quality now rivals established suppliers.

“There is also alfalfa and other animal feed products going from Pakistan, but not on a large scale,” Janjua said.

“We need to work on expanding other products as well. If these matters are addressed at the government level, exports can grow.”

Agriculture accounts for about 24 percent of Pakistan’s economy and employs roughly 38 percent of the labor force. Growers believe opening major markets could transform fodder into a major non-traditional export sector.

“If China and Saudi Arabia start importing from us, it (exports) can increase tenfold because there is a strong need for fodder,” Janjua said.

“They have a culture of keeping animals, and dairy products are needed everywhere.”

He identified Saudi Arabia and China as the two decisive markets:

“If our product goes to Europe, that would be very good. But the two big markets that can be worked on are China and Saudi Arabia.”