If you are looking for a business in Pakistan that does not need a lot of money to start but can bring in a lot of money then you should think about exporting animal feed. Specifically you should think about exporting wheat straw and Rhodes grass. These two things are easy to find and easy to sell. People in other countries like the Gulf region always want to buy them. This guide will tell you everything you need to know to get started: what codes to use, which countries buy the how much money you can make where to find the products how to package them how people pay for them and what you need to do to register your business.
What is considered animal feed export from Pakistan
Pakistan exports kinds of animal feed including:
- Wheat straw, which is also called Toori and is the leftover part of wheat
- Rice straw, which is the leftover part of rice
- Peanut straw, which is what is left after peanuts are harvested
- Rhodes grass, which is also called root grass or rud grass
- Wheat bran
Out of all these wheat straw and Rhodes grass are the most exported. They make up 99 percent of all animal feed exports from Pakistan. The other things make up than 1 percent. That is why we are focusing on wheat straw and Rhodes grass in this guide. We will tell you all about wheat straw and Rhodes grass because they are the important animal feed exports, from Pakistan.
The HS Code for Wheat Straw and Rhodes Grass
Wheat Straw and Rhodes Grass have the HS code which is 1213.0000. This code is for animal feed and fodder products. We need to use the HS code for customs documentation. It is also important for calculating duties and clearing things at the port.
Top Countries That Import Wheat Straw and Rhodes Grass
This is news for people who want to export Wheat Straw and Rhodes Grass. The buyers are mostly in a countries that are easy to reach. The countries that import Wheat Straw and Rhodes Grass from Pakistan are
- Kuwait. This is the buyer
- United Arab Emirates. This is the second biggest buyer
- Oman
- Jordan
- Qatar
- Bahrain
- South Korea
- Saudi Arabia
Kuwait and United Arab Emirates buy most of the Wheat Straw and Rhodes Grass. This means new exporters can find buyers in these two countries first and then sell to countries. Wheat Straw and Rhodes Grass are in demand, in Kuwait and United Arab Emirates. So it is an idea for new exporters to focus on these two countries when they start exporting Wheat Straw and Rhodes Grass.
Profit Margin on Wheat Straw and Rhodes Grass Exports
The money made from selling Wheat Straw and Rhodes Grass is actually pretty good. People who sell these things can make a profit of around 12 percent to 15 percent. This is a lot more than some things that are sold like minerals, which only make around 5 or 6 percent. So making 12 to 15 percent on something like Wheat Straw or Rhodes Grass is really good especially since it is easy to get and does not cost a lot to start selling.
Where Is Wheat Straw Used
Wheat Straw is used in a lot of ways, which is why people in other countries want to buy it. Here are some of the things that Wheat Straw is used for:
- Animal feed. This is what Wheat Straw is used for the animals eat it easily
- Bedding material. It is used of hay to make a comfortable place, for animals to sleep
- Making paper and cardboard. Wheat Straw is used to make these things
- Biofuel. Wheat Straw is burned to make energy
- Land clearing. It is used to help take care of the land on farms
Where Is Rhodes Grass Used
Rhodes grass is used only as food for animals. It has a lot of nutrients, which makes it very popular with people who raise animals in Gulf countries. These countries do not have a lot of land where animals can eat grass so they need Rhodes grass.
Who Are Pakistans Competitors in This Market
Wheat Straw Competitors
There are some countries that sell wheat straw to countries. These countries are the United States, Spain, France, Australia and Canada.. These countries are very far from the countries that buy wheat straw like the Gulf countries. This means Pakistan has an advantage because it is closer. Pakistan does not have to pay much to send wheat straw to the Gulf countries. This makes Pakistani wheat straw cheaper. It is also important to note that India, which is, near Pakistan does not sell a lot of wheat straw to countries.
Rhodes Grass Competitors
Here is a list of the countries that sell Rhodes grass:
- Sudan. This country sells the most Rhodes grass
- Pakistan. This country is the biggest seller of Rhodes grass
- UAE. This country sells Rhodes grass that it bought from another country
- Saudi Arabia. This country also sells Rhodes grass that it bought from another country
- Australia
The fact that Pakistan is the biggest seller of Rhodes grass means that there are a lot of opportunities for new people to start selling Rhodes grass.
Market Growth Outlook
The animal feed export sector is really taking off. The part of this sector that deals with wheat straw and Rhodes grass is growing a lot. Around 10 to 20 percent every year. This means it is an area for new exporters who want to be in business for a long time not just make a quick sale.
If we look at how much of these products Pakistan has been exporting we see that the country sent out around PKR 830 million worth of wheat straw and Rhodes grass in nine months. This shows that even though these products are not very expensive a lot of them are being traded.
How Money Do You Need to Get Started
One of the best things about this business is that it does not cost a lot to get started. A big container that is 40 feet long can hold around 19 tons of wheat straw and Rhodes grass. To fill one container new exporters usually need to spend a lakh rupees, which is not a lot of money compared to other things you might export. This makes wheat straw and Rhodes grass a choice for people who are new, to exporting and do not have a lot of money to invest in wheat straw and Rhodes grass.
Packaging Requirements
Both of the products are packed in a way.
- The material is squeezed into bundles using special machines that make it compact and easy to handle.
- These bundles usually weigh between 15 and 21 kilograms.
- A big container that is 40 feet long can hold around 12 to 30 of these bundles depending on how big they’re how tightly they are packed.
It is very important to pack the bundles this affects how many products can fit in one container, which in turn affects the cost of shipping.
Quality Specifications Buyers Expect
Buyers from countries are very particular about the quality of the products and it is crucial to meet their requirements to be able to sell the products and avoid having the shipments sent back.
For wheat straw:
- It must be completely dry
- It must be free from dirt, contamination or insects
For Rhodes grass:
- The moisture level should be between 10% and 12%. If it is higher than this the grass may get. The shipment may be rejected.
- The color should be, at light green. Buyers usually do not accept grass that looks dull or has lost its green color.
Where to Find Wheat Straw and Rhodes Grass in Pakistan
Finding Wheat Straw
Wheat farming in Pakistan starts around April 15th beginning in Sindh and then moving to Punjab.
- In Sindh you can find wheat in Hyderabad, Nawabshah and Sukkur.
- In Punjab major wheat-producing areas include Faisalabad, Sialkot, Gujranwala and Multan.
Finding Rhodes Grass
- In Sindh Thatta and Badin are places to source Rhodes grass.
- In Balochistan Lasbela is another area to consider.
To get started with exporting it is essential to build connections with farmers or aggregators in these areas first so you can source Wheat Straw and Rhodes Grass then fulfill your export orders, for Wheat Straw and Rhodes Grass.
Setting the Right Payment Terms
As a first-time exporter payment security is a worry and rightly so. Unpaid shipments and buyer defaults can cause financial problems. Here’s how to set up payment terms:
- Try to get 100% of the payment upfront whenever you can.
- If the buyer won’t agree to that aim for least 50% upfront.
- If 50% is not possible try to get 40% upfront.
- As a resort accept 20-30% upfront to cover some of your costs.
- If a buyer can’t offer any payment and you don’t know them well consider using a Letter of Credit. This way you get paid through the bank once you provide the required documents and meet the banks conditions, which greatly reduces your risk.
The demand for these products is usually high so if one buyer backs out you can often sell the shipment to another buyer by just changing the paperwork. You might have to sell it for a bit less since the new buyer will know you’re, in a hurry.
Why You Need a Professional Business Website
When you are in trade your website is usually the first thing buyers see about your company. This is especially true since most communication happens remotely. Before buying from you buyers will search online to check if you are legitimate. A professional website that clearly shows your location, products and contact details makes you look credible. This makes buyers more confident, which means you get orders over time.
Steps to Legally Register Your Export Business in Pakistan
Before you can start exporting things like wheat straw or Rhodes grass you need to do important registrations:
- NTN registration
- Register with the Chamber of Commerce that is relevant, to your business
- Open a bank account in your business name to get payments
- Register with PSQCA
- Register for GST and Sales Tax
When these registrations are done you are legally allowed to export. It does not matter if you are exporting one carton or a whole ship full.
Calculating Your Export Price
To figure out your export price you need to consider costs. These costs include:
- Cost of material (Toori or Rhodes grass)
- Baling costs
- Loading charges
- Container and transportation arrangement
- International freight/shipping charges
- Customs clearance fees
- Freight forwarder charges
All these costs add up to your landed cost. So it is very important to calculate them. This helps protect your profit margin when selling Toori or Rhodes grass for export. You must consider the cost of material and then add baling costs loading charges and other costs. Accurate calculation of export price is crucial.
Final Thoughts
Wheat straw and Rhodes grass are really options for people in Pakistan who want to start exporting things to other countries. You do not need to spend a lot of money to get started. Many countries want to buy these things from Pakistan so you can make a profit. People in Gulf countries are especially interested in buying Wheat straw and Rhodes grass.
To be successful you need to find quality Wheat straw and Rhodes grass from the right places. You must make sure that what you are selling is what the buyers want. You should also try to get paid in a way that’s good for you. Having a website is important too. If you do all these things you can have an export business, with Wheat straw and Rhodes grass that will last for a long time.
