Determinants of Mutton Exports from Pakistan

Although Pakistan’s meat industry is performing well however, there is more potential in the sector of livestock and hence for the exports of meat to all over the world. The study in hand is designed to estimate the impact of different factors that affect the mutton exports. The variables of the study are export of mutton from Pakistan to its existing markets, domestic prices, export prices, traveling distance of the Pakistani Markets from its major competitors in the mutton (i.e., Australia and New Zeeland), total number of goat and sheep in Pakistan and the distance of Pakistan to its mutton export markets. Also a dummy variable of a Muslim country was added in the model (1 for Muslim and 0 for non-Muslim country). Results revealed that mutton export of Pakistan was negatively affected by domestic price of meat. The coefficient of domestic price was -1.617. It means that one percent increase in domestic price of meat would decrease 1.617 percent decrease in the export of mutton. Contrary to domestic price, export price positively and significantly affected by export price e.g. more the export price more would be export. As expected, the competitor’s distance was positively associated with Pakistan’s export. For instance, if the distance of competitor (e.g. Australia) to destined market (e.g. Saudi Arabia) increases export of Pakistani meat increases. Pakistani distance to export market is positively and significantly associated with export of mutton.