BEIJING - The export of cement clinkers from Pakistan to China has increased in recent years, China Economic Net (CEN) reported on Sunday quoting Commercial Counsellor of Embassy of Pakistan Beijing Badar uz Zaman.
Meanwhile, Pakistan has invited big Chinese companies to set up cement factories and is looking for zero duty on these products to boost their exports to China.
China imported 359,621.31 tons of cement clinkers worth around $15 million in 2021 from Pakistan and was one of the main destinations for cement clinkers exports of Pakistan, whereas in 2020 it was 563,622.99 tons worth $ 22 million, according to the official data from the General Administration of Customs of the People’s Republic of China (GACC). “If we get duty-free access of cement clinkers immediately, we will have equal playing field as in China and the quantity of export will increase exponentially”, Badar uz Zaman told CEN.
The Commercial Counsellor further said that Pakistan has all the minerals required for cement production, like gypsum and limestone. Pakistan has one of the largest reserves of gypsum in the world, mainly in Kohat, Chakwal, and some other districts, whereas the quality of cement and clinkers Pakistan produces is one of the best in the world.
Vietnam remained the top exporter of cement clinkers to China, followed by South Korea, Japan, Indonesia, and Pakistan in terms of volume.
The total exports of cement clinkers to China in 2021 were 27,718,923.22 tons worth US$ 1,417.69 million, according to the official data from GACC.
Badar said that due to COVID-19, the supply chain has been disrupted, the ocean freight cost has increased 5 to 10 times in this period.
Pakistani cement companies are offering good prices to the Chinese buyers, but when these additional freight charges are added, other regional exporters have more advantage of price because of the shorter distance.
“We have seen strong interest from large Chinese cement manufacturers to explore the Pakistani market. They are talking with the Pakistani government to set up cement factories in Pakistan. Pakistani Prime Minister also has a very special focus on these areas and had an online meeting with these companies during his visit to China”, he mentioned. Badar is very hopeful that after the approvals are granted, big Chinese players will set up cement factories in Pakistan, which will give a big boost to the export of the segment not only to China but also to all over the globe.
Meanwhile, more feed additives from China will enter Pakistani market as Beijing Smile Feed Sci & Tech Co., Ltd., a high-tech company that specializes in the manufacturing of safe and environmentally friendly biofeeds, biofeed additives, and animal health products, set up a representative office in Pakistan in a recent move. “We will be directly involved in the Pakistani feed market, as well as through local distributors”, Dr. Waseem Abbas, the Pakistan national manager of the company told China Economic Net (CEN) in an interview.
Animal feed additives are essential for livestock health and aid in feeding, conception, immune system response, and overall health. Globally speaking, the market for animal feed additives experienced y-o-y growth of 5.1% in 2020-2021 and topped a valuation of US$40b in 2021, as per a recent market survey by Persistence Market Research.
In Pakistan, at least 60% of feed additives, such as enzymes, amino acids, choline chloride, vitamins premix, and straight minerals in animal feed, are imported from China, which is one of the largest producers and consumers of meat in the world.
“Rapid urbanization and changing consumer preferences regarding the consumption of meat are key factors shaping the demand outlook for animal feed additives in China. Increasing per capita expenditure on high-quality food products in China has also created lucrative growth prospects for players operating in the market”, Dr. Waseem analyses. China, as European nations, banned the use of antibiotics in feed to reduce the harm caused by antibiotic residues, which, if left unchecked, might cause more deaths globally than cancer by 2050.
“We’re also working in Pakistan to limit the use of antibiotics. By using our probiotics as antibiotic replacers in feed, we can deliver antibiotic-free meat and eggs to Pakistani people”, said Dr. Waseem.
According to Dr. Waseem, in Pakistan, livestock production contributes to over 60% of the total agricultural output value.
Pakistan produces about 8mln metric tons of feed annually, with about 150 registered feed mills and 200 unregistered ones catering to it. The industry generates an annual turnover of about PKR 200bln to PKR 250bln from local sales. As per Persistence Market Research, rising disposable income will continue spurring demand for nutrition-rich animal source foods, translating into better growth prospects for animal feed additive suppliers in Pakistan.
Dr. Waseem receives his doctoral education in China Agricultural University. “As a a country manager, I am in charge of sales and technical support for our goods. My engagement with the Chinese company will promote bilateral cooperation in the research and assessment of both markets”, he said.
Meanwhile, Pakistan has invited big Chinese companies to set up cement factories and is looking for zero duty on these products to boost their exports to China.
China imported 359,621.31 tons of cement clinkers worth around $15 million in 2021 from Pakistan and was one of the main destinations for cement clinkers exports of Pakistan, whereas in 2020 it was 563,622.99 tons worth $ 22 million, according to the official data from the General Administration of Customs of the People’s Republic of China (GACC). “If we get duty-free access of cement clinkers immediately, we will have equal playing field as in China and the quantity of export will increase exponentially”, Badar uz Zaman told CEN.
The Commercial Counsellor further said that Pakistan has all the minerals required for cement production, like gypsum and limestone. Pakistan has one of the largest reserves of gypsum in the world, mainly in Kohat, Chakwal, and some other districts, whereas the quality of cement and clinkers Pakistan produces is one of the best in the world.
Vietnam remained the top exporter of cement clinkers to China, followed by South Korea, Japan, Indonesia, and Pakistan in terms of volume.
The total exports of cement clinkers to China in 2021 were 27,718,923.22 tons worth US$ 1,417.69 million, according to the official data from GACC.
Badar said that due to COVID-19, the supply chain has been disrupted, the ocean freight cost has increased 5 to 10 times in this period.
Pakistani cement companies are offering good prices to the Chinese buyers, but when these additional freight charges are added, other regional exporters have more advantage of price because of the shorter distance.
“We have seen strong interest from large Chinese cement manufacturers to explore the Pakistani market. They are talking with the Pakistani government to set up cement factories in Pakistan. Pakistani Prime Minister also has a very special focus on these areas and had an online meeting with these companies during his visit to China”, he mentioned. Badar is very hopeful that after the approvals are granted, big Chinese players will set up cement factories in Pakistan, which will give a big boost to the export of the segment not only to China but also to all over the globe.
Meanwhile, more feed additives from China will enter Pakistani market as Beijing Smile Feed Sci & Tech Co., Ltd., a high-tech company that specializes in the manufacturing of safe and environmentally friendly biofeeds, biofeed additives, and animal health products, set up a representative office in Pakistan in a recent move. “We will be directly involved in the Pakistani feed market, as well as through local distributors”, Dr. Waseem Abbas, the Pakistan national manager of the company told China Economic Net (CEN) in an interview.
Animal feed additives are essential for livestock health and aid in feeding, conception, immune system response, and overall health. Globally speaking, the market for animal feed additives experienced y-o-y growth of 5.1% in 2020-2021 and topped a valuation of US$40b in 2021, as per a recent market survey by Persistence Market Research.
In Pakistan, at least 60% of feed additives, such as enzymes, amino acids, choline chloride, vitamins premix, and straight minerals in animal feed, are imported from China, which is one of the largest producers and consumers of meat in the world.
“Rapid urbanization and changing consumer preferences regarding the consumption of meat are key factors shaping the demand outlook for animal feed additives in China. Increasing per capita expenditure on high-quality food products in China has also created lucrative growth prospects for players operating in the market”, Dr. Waseem analyses. China, as European nations, banned the use of antibiotics in feed to reduce the harm caused by antibiotic residues, which, if left unchecked, might cause more deaths globally than cancer by 2050.
“We’re also working in Pakistan to limit the use of antibiotics. By using our probiotics as antibiotic replacers in feed, we can deliver antibiotic-free meat and eggs to Pakistani people”, said Dr. Waseem.
According to Dr. Waseem, in Pakistan, livestock production contributes to over 60% of the total agricultural output value.
Pakistan produces about 8mln metric tons of feed annually, with about 150 registered feed mills and 200 unregistered ones catering to it. The industry generates an annual turnover of about PKR 200bln to PKR 250bln from local sales. As per Persistence Market Research, rising disposable income will continue spurring demand for nutrition-rich animal source foods, translating into better growth prospects for animal feed additive suppliers in Pakistan.
Dr. Waseem receives his doctoral education in China Agricultural University. “As a a country manager, I am in charge of sales and technical support for our goods. My engagement with the Chinese company will promote bilateral cooperation in the research and assessment of both markets”, he said.
