Pakistan’s Largest Meat Exporter Reports 11% Sales Drop Amid US‑Iran Conflict

KARACHI: One of Pakistan’s leading meat exporters, The Organic Meat Company Limited (TOMCL), has recorded an over 11% decline in sales during the most recent fiscal year as a result of the ongoing United States‑Iran conflict in the Middle East. The company’s senior official disclosed this week that the war’s ripple effects have impaired export volumes and strained existing commitments.

TOMCL operates a major export network, shipping beef, mutton and camel meat to more than 16 countries. Its primary markets are Gulf Cooperation Council (GCC) nations, especially the United Arab Emirates and Saudi Arabia, which are highlighted on the firm’s website as key destinations.

The hostilities between the US and Iran, which erupted in February this year, have disrupted global energy markets and closed critical maritime chokepoints such as the Strait of Hormuz. This has driven fuel prices sharply higher and hampered shipments from Pakistan to Gulf markets.

According to TOMCL’s financial report filed on the Pakistan Stock Exchange (PSX), sales fell to Rs12.3 billion (US$44.4 million) in fiscal year 2026, down from Rs14 billion (US$50.5 million) the previous year. Profit also plummeted by 74% to Rs112.3 million (US$405,000) in FY26, compared with Rs429.8 million (US$1.55 million) in FY25.

“The company’s sales reduced due to this conflict,” said Rizwan Abbas Punjwani, TOMCL’s Chief Financial Officer, in an interview with Arab News on Friday. “Because of the crisis at the Middle East, at the Strait of Hormuz and Middle East, you know, we are working hard to maintain our sales or catch up with existing commitments.”

Punjwani was addressing queries about the government’s newly proposed scheme to waive duties and taxes on live‑animal imports that would later be re‑exported as live animals or processed meat.

This week, the Federal Board of Revenue (FBR) issued a notification eliminating such duties and taxes, aiming to lift Pakistan’s overall export performance. Total exports fell 6% to $30.1 billion last year. Meat and meat‑product exports for the fiscal year ending June 2026 amounted to roughly $530 million, with the bulk destined for the UAE, Saudi Arabia, Kuwait and Qatar.

Although the initiative is intended to stimulate meat exports, Punjwani expressed skepticism, citing continued uncertainty stemming from the war and disrupted shipping lanes. “This scheme may be very beneficial for some other industries, but this kind of effect is very unlikely in the industry of ours,” he remarked.

Share performance reflects the pressure: TOMCL’s shares have dropped 23% to Rs28.90 (US$0.104) per share since Feb. 27, the day before the US‑Iran war began, down from Rs37.32 (US$0.135) previously.

Commerce ministry spokesperson Chaudhry Naveed ul Haq Kallu did not respond to Arab News’ request for comment, and the President of the All Pakistan Meat Exporters & Processors Association, Mian Abdul Hannan, was also unavailable.

An industry insider who imports live animals and later exports meat noted that re‑exporting livestock or meat is economically challenging due to substantial freight and handling costs. Speaking on condition of anonymity, he said that importing sheep can cost up to $160 per head, while shipping cattle from exporters such as Brazil and Australia can run into millions of dollars.

“Sourcing young, growing animals suitable for fattening at competitive prices is already difficult,” the importer added. “Their high purchase price at origin, combined with transportation costs, makes the model commercially unattractive.”

He called on the government to reinforce domestic livestock farming, fattening programs, disease prevention, vaccination initiatives and overall animal‑health infrastructure. “The countries worldwide that import animals for fattening purposes, use them for local consumption and not for re‑export,” he observed.

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