Pakistan Tops South Asia in Value Added Agriculture

Livestock revolution enabled Pakistan to significantly raise agriculture productivity and rural incomes in 1980s. Economic activity in dairy, meat and poultry sectors now accounts for just over 50% of the nation's total agricultural output. The result is that per capita value added to agriculture in Pakistan is almost twice as much as that in Bangladesh and India.

Adding value is the process of changing or transforming a product from its original state to a more valuable state, according to Professor Mike Boland of Kansas State University. The professor explains how it applies to agriculture as follows:

"Many raw commodities have intrinsic value in their original state. For example, field corn grown, harvested and stored on a farm and then fed to livestock on that farm has value. In fact, value usually is added by feeding it to an animal, which transforms the corn into animal protein or meat. The value of a changed product is added value, such as processing wheat into flour. It is important to identify the value-added activities that will support the necessary investment in research, processing and marketing. The application of biotechnology, the engineering of food from raw products to the consumers and the restructuring of the distribution system to and from the producer all provide opportunities for adding value."

Crop Yield Comparison. Source: Kleffman Group

Although Pakistan's value added to agriculture is high for its region, it has been essentially flat since mid-1990s. It also lags significantly behind developing countries in other parts of the world. For example, per capita worker productivity in North Africa and the Middle East is more than twice that of Pakistan while in Latin America it is more than three times higher.

Agriculture Value Added Per Capita in Constant 2000 US$--Source: World Bank
There are lots of opportunities for Pakistan to reach the levels of value addition already achieved in Middle East, North Africa and Latin America.These range from building infrastructure to reduce losses to fuller utilization of animals and crops for producing valuable products.  Value addition through infrastructure development includes storage and transportation facilities for crops, dairy and meat to cut spoilage. Other opportunities to add value include better processing of  sugarcane waste, rice bran, animal hides and bones, hot treatment, grading and packaging of fruits, vegetables and fish, etc.

Agriculture Value Added Per Capita in South Asia, North Africa and Latin America--Source: World Bank
Pakistan's growing middle class has increased demand for dairy, meat and various branded and processed food products. Engro, Nestle, Unilever and other food giants are working with family farms and supermarket chains like Makro, Hyperstar and Metro Cash and Carry to respond to it by setting up modern supply chains.

Agriculture Value Addition in South Asia. Source: World Bank

Value Added Agriculture Per Worker. Source: World Bank

Growth of value added agriculture in Pakistan has helped the nation's rural economy. It has raised incomes and reduced rural poverty by creating more higher wage jobs. It has had a salutary effect on the lives of the rural poor in terms of their ability to afford better healthcare, nutrition and education. Doing more to promote value added agriculture can accelerate such improvements for the majority of Pakistanis who engage in agriculture and textiles and still live in rural areas.

Related Links:

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Agricultural Growth in India, Pakistan and Bangladesh

Pakistan's Rural Economic Survey

Pakistan's KSE Outperforms BRIC Exchanges in 2010

High Cost of Failure to Aid Flood Victims

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India and Pakistan Contrasted in 2010

Pakistan's Decade 1999-2009

Musharraf's Economic Legacy

World Bank Report on Rural Poverty in Pakistan

USAID Report on Pakistan Food & Agriculture

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China's Trade and Investment in South Asia

India's Twin Deficits

Pakistan's Economy 2008-2010

Comments

Riaz Haq said…

Agriculture and textiles are the largest employers in both India and Pakistan.

About 60% of India's and 42% of Pakistan's labor force are engaged in agriculture, according to World Bank.

About 60% of India's workforce is in agriculture. Textile industry is the second biggest employer, accounting for a fifth of India’s exports, and employs almost 10 percent of India’s workforce, or some 35 million people, and has the potential to add another 12 million new jobs --dwarfing the 1-2 million jobs created by the much-heralded IT and BPO sector, according to a World Bank report.

Agriculture in Pakistan accounts for 19.4% of GDP and 42% of labor force, followed by services providing 53.4% of GDP and 38% employment, with the remainder 27.2% of GDP and 20% workers in manufacturing sector. Over half of Pakistan's manufacturing jobs are in the textile sector, making it the second biggest employer after agriculture.

The dire situation in India's agriculture sector has been epitomized by over 200,000 farmers' suicides in the last decade. And the rising Indian rupee is now hurting India's textile sector by making its exports more expensive in the world market.

http://www.riazhaq.com/2010/10/agriculture-andtextiles-employ-most.html
Riaz Haq said…
Here's an Express Tribune story on educating Pakistani workers on value added agriculture:

The scope of corporate farming in Pakistan is growing, showing even greater potential for this sector in the coming years, mainly due to product diversification from many local and multinationals in food, beverages and dairy segments. But are the human resources of Pakistan related to this particular sector ready to convert threats in to opportunities, in terms of technology, innovation, researches.
For local companies and corporate farmers, finding such human resources might be a little tough, unlike multinationals which can rely on the transfer of knowledge from their global headquarters. Take for example the recent diversifications in the juices and dairy sectors in the past few years, from local and multinational consumer goods and food companies. Although these companies are now making profits, they are perturbed by the increasing gap of knowledge and human resources.
A few universities and government/NGO-supported institutions are working in this sector, providing basic and slightly advanced education and field training to students and farmers.
“There are basically two groups at the business level in this sector, corporate farmers who don’t know how to improve productivity and make greater financial gains; and those who know about business but don’t know much about practical farming,” said Magdi Batato, Nestle Pakistan’s Managing Director, while talking with The Express Tribune. Pakistan as an agrarian economy needs to develop a class of professionals educated and trained in the relevant discipline, he added.
One such initiative however has already been taken by Lahore university of Management Sciences (Lums) with collaborations of Nestle Pakistan. Economic development, poverty alleviation, enhancing productivity, managing supply chain issues, and research for further innovations through agribusiness is what the market wants. The success of the initiative taken by Lums and Nestle might force other business schools to introduce similar or more up to date courses.
“Such courses/certifications will have a cascading effect on the market as more entrepreneurs will be formed which will deliver much better then now”, said Doctor Arif Nazir Butt, Dean Suleman Dawood School of Business, Lums.
Companies related to dairy segments like Nestle, Engro Foods, Haleeb Foods are all contributing positively in rural economy by involving local dairy farmers in their network. Many locals have started successful modern dairy farming, JDW dairies among which is a prominent example.
Companies have now started projects of modern orchard farms for their survival. This once again is providing opportunities for locals to start modern orchard and tunnel farming. This portfolio would benefit low line farmers in future in terms of technical assistance, education, innovation, though the high price factor which the end consumer will pay to buy such products, as in case of dairy segment, is another story.


http://tribune.com.pk/story/663433/agri-business-educating-executives-key-towards-growth/
Riaz Haq said…
Here's a report on growth of beekeeping industry in Pakistan's Potohar region:

Battered by erratic weather patterns with decreasing and delayed rainfall, thousands of farmers in Pakistan’s northeast Potohar plateau are moving to beekeeping as an alternative source of livelihood that is less vulnerable to climate change.

A single flood, no or deficient rain in one cropping season, or lack of water in the river system due to delayed glacial melt can ruin farmers’ livelihoods. “However, training farmers in alternative climate-resilient livelihoods like beekeeping can go a long way in making farming communities resilient to climate change impacts,” said Dr. Zafar Iqbal, former chairperson of the National Disaster Management Authority, in Pakistan’s capital Islamabad.

The fact that many farmers find beekeeping a more profitable alternative and therefore reduce farming or completely shun it has its own impact on food security. But it helped many households survive in Potohar – a sprawling region between the Indus and the Jhelum rivers and stretching up to the foothills of the Himalayas. Around 70 per cent of rain in the region is received between July and August.

“Because of erratic weather patterns and unreliable crop harvests, our income had become irregular and was declining. But the beehives give us regular income,” said Hakim Khan, a beekeeper in Ghool village of Chakwal district, about 90 kilometres southeast of Islamabad.

The district — one of the four in Potohar along with Attock, Rawalpindi and Jhelum – is known for its exportable quality of groundnuts and stretches over 6,500 square kilometres of semi-arid terrain. It has a population of nearly 1.5 million and relies entirely on the rains for cultivation of crops.

It was known as an area for abundant rain. However, the situation has changed over the years. Until 1998, it would receive around 1,200 millometres rainfall annually. This has come down to less than 900 millometres, according to the Pakistan Meteorological Department.
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In this scenario, beekeeping has been a saviour for many families in the area. Hakim Khan from Ghool, for instance, survived the poor harvest by taking to beekeeping. He also continues to grow groundnut.

“The additional income from beekeeping has helped me survive crop losses. I adopted beekeeping three years ago to cover up income losses from the groundnut crop,” Khan said while examining the wooden bee boxes on a plot adjacent to his groundnut field.

He was amongst the lucky ones trained in beekeeping — producing honey, hives and wax — by the Pakistan Poverty Alleviation Fund (PPAF) under the Drought Mitigation and Preparedness Project. Farmers in various villages of Chakwal district have also been provided with financial aid.

In a ripple effect, Khan has taught other farmers about beekeeping and its benefits. “I learnt about the economic benefits of less labour and investment (in beekeeping)… Now, more and more farmers are approaching to me to learn about beekeeping,” he told thethirdpole.net.

Citing an example, he said a groundnut farmer-turned-beekeeper who purchased 10 wooden boxes of hives for Pakistani Rs.34,000 (about US$347) three years ago now has 90 boxes worth Pakistani Rs.1,020,000 (about US$10,400).


http://www.eco-business.com/news/pakistans-farmers-counter-climate-change-beekeeping/
Riaz Haq said…
From FAO on Pak Aquaculture growth:

Aquaculture in Pakistan is a recent development and in many parts of the country the management of the sector is still poor with culture practices varying across the different provinces. Two Asian Development Bank (ADB) assisted projects have assisted in strengthening the institutional structure, with infrastructure development such as the development of hatcheries and juvenile production, model farms, transfer of technology, human resource development as well as the strengthening of extension services.

Aquaculture has also received a substantial amount of government investment over the past decades and facilities are now in place that can provide the basis for a major future expansion in aquaculture production.

With the exception of trout culture in NWFP and the northern region, virtually all aquaculture currently carried out in Pakistan is pond culture of various carp species. Pakistan has not yet begun any coastal aquaculture operations although there is good potential all along Pakistan's 1 100 km coastline. Efforts have been made in the past to start shrimp farming along Sindh coast, which did not succeed, the main constraints being the non-availability of hatchery produced seed and a lack of expertise.

Freshwater fish culture in earthen ponds, both small and large reservoirs as well as community ponds was initiated in late 1960s by the provincial fisheries departments. From 1980 onwards the polyculture of Indian major carps and Chinese carps has been carried out in Punjab, Sindh and to some extent in NWFP.

According to the latest estimates, the total area covered by fish ponds across all provinces is about 60 470 ha, with Sindh having 49 170 ha, Punjab 10 500 ha, NWFP 560 ha and the other provinces (Balochistan, Azad Jammun Kashmir [AJK] and Northern Area [NA]) 240 ha.1.2Human resources:About 13 000 fish farms have so far been established across Pakistan, the size of these farms varies considerably, however, the average farm size ranges form 5-10 ha. No direct data on the number of fish farmers employed in this sector is available as fish farming in most parts of the country is carried out as an integral part of crop farming. According to a best estimates, about 50 000 people are either directly or indirectly employed in the sector.
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About 13 000 fish farms have so far been established across Pakistan, the size of these farms varies considerably, however, the average farm size ranges form 5-10 ha. No direct data on the number of fish farmers employed in this sector is available as fish farming in most parts of the country is carried out as an integral part of crop farming. According to a best estimates, about 50 000 people are either directly or indirectly employed in the sector.
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There has been a decreasing trend in inland fish production during the period between 2001 and 2003 resulting from severe drought and degradation of natural resources through pollution. Production from the inland capture fisheries has been affected most, inland aquaculture has, however, witnessed a relatively rapid increase....


http://www.fao.org/fishery/countrysector/naso_pakistan/en
Riaz Haq said…
Five farmers took their lives in Maharashtra in the three days to Monday.

The wave of farmer suicides in the rain-shadow regions of Marathwada and Vidarbha continues unabated despite the new Bharatiya Janata Party government announcing relief measures to combat the agricultural crisis affecting more than 19,000 villages in the State.

Three consecutive years of drought and unseasonable rain have broken the spirit of farmers.

Reports say changing weather patterns, mounting indebtedness and poor crop yield are driving farmers to suicide.

Tulsidas Madalwad, a minor farmer, electrocuted himself at Kakandi village in Nanded district unable to pay off the debts accumulated over multiple bad harvests on his two-acre farm. “He returned from his field and electrocuted himself by stringing wires to his feet around 10 a.m. When his wife and little daughter came with food, they found him charred to death,” a villager said.

Madalwad was devastated by the destruction of his soya bean crop and was worried about repaying more than Rs. 1 lakh to banks and local moneylenders, the people said.

In the neighbouring Latur district, Sangram Bemde, 46, another marginal farmer, immolated himself on Monday after his cotton crop failed for the third consecutive year, traumatising his family and relatives.

Kashiram Indore, 76, built a pyre and jumped into it on Friday following the poor soya bean yield from his one-acre farm at Manarkhed in Akola. Indore was despondent as just a quintal and a half of soya bean could be harvested this year.

The Javadekar family of Javda in Buldhana is facing the grimmest winter after their only son, Shivshankar, 24, hanged himself on Saturday evening as he could not repay the Rs. 60,000 loan his family took after their two-acre farm faced consecutive years of drought.

Family members said Shivshankar was aspiring to pursue higher education. Another farmer too committed suicide in the district.

http://m.thehindu.com/news/national/120-farmers-killed-themselves-in-maharashtra-in-november-activist/article6652123.ece/
Riaz Haq said…
INDIA’S monsoon is one of the world’s most important weather events. About half of the country's population—that is, 600m people—depend directly on the rain it bears. The monsoon sweeps northward across the subcontinent, bringing moist air from the south and south-west Indian Ocean. As it hits the land, and especially as it rises towards the Himalayas, it dumps its cargo of water, producing about three quarters of India’s total rainfall between June and September. Two-thirds of Indian agriculture is still fed by this rain, rather than by irrigation, which means India’s harvest depends on it. When the monsoon fails, as it has done this year, millions suffer. Crops wilt or fail altogether, farm land dries up, reservoirs, already too-small, run low, and winter crops (which are mostly irrigated) are imperilled. In some places this year, a lack of rain has led to shortages of drinking water.

Like all weather patterns, the monsoon is erratic. Four years in ten count as abnormal. But this year—in which total rainfall is 14% below the 50-year-average between June and September—is exceptional. Droughts of this sort happens about once every 18 years. There is also extreme variation within the variation. Some parts of the country, the western state of Gujarat for example, have seen higher-than-normal rainfall. Others, especially in the north and the eastern coast, have had precipitation that is 40% below average.

Climate change seems to be making the variations more extreme. The Intergovernmental Panel on Climate Change, an international group of scientists who advise governments on global warming, has warned that because of climate change monsoon rainfall extremes are likely to increase. But exactly why this should so be is up for debate. No one yet fully understands the link between the monsoon and El Niño, a warming of the waters in the central and eastern Pacific Ocean. Over the past century, most climate scientists have argued that a strong El Niño is associated with a weak monsoon because, as the Pacific warms, the air rises and comes down again over the subcontinent, driven by prevailing wind patterns. This descending warmer air is associated with higher pressure, less moisture and a weaker monsoon. The current El Niño is the strongest since 1997 and 1998, according to Australia’s Bureau of Meteorology, and will be at its most powerful at the end of the year.

During the 1980s and 1990s, however, this link seemed to be broken. The year 1997 saw one of the strongest El Niños on record, but a normal monsoon. Balaji Rajagopalan of the University of Colorado, Boulder, argues that the puzzle can be explained by looking at which part of the Pacific warms up during an El Niño. If the eastern waters warm, the air comes down again over Indonesia and South East Asia, which tend to be drier than normal. But this may not affect India. If the central Pacific warms, the high pressure tends to form over India and the monsoon fails. If Professor Rajagopalan is right, this year’s El Niño is getting stronger in the central Pacific than in the east. The Indian Meteorological Department is hoping to incorporate this information into its monsoon forecasting system.

http://www.economist.com/blogs/economist-explains/2015/10/economist-explains-0
Riaz Haq said…
University of #California #Davis, #Pakistan launch $17M food,agriculture Center For Advanced Studies at #Faisalabad

http://www.davisenterprise.com/local-news/ucd/ucd-pakistan-launch-17m-food-ag-partnership/ …


The launch of a $17 million collaborative project linking UC Davis and Pakistan’s leading agricultural university was celebrated today at UCD, which will receive $10 million of the funds.

The new U.S.-Pakistan Center for Advanced Studies in Agriculture and Food Security, funded by the U.S. Agency for International Development, will make it possible for faculty members and graduate students from both countries to study and do research at each other’s campuses. The project also is designed to update curriculum and technical resources at Pakistan’s University of Agriculture, Faisalabad.

Present for today’s ceremonial launch were dignitaries from Pakistan, USAID and UCD.

“UC Davis has been partnering with colleagues in Pakistan since 2009, sharing expertise in agriculture from crop production to post-harvest handling,” said James Hill, associate dean emeritus of International Programs for the College of Agricultural and Environmental Sciences at UCD.

“Establishment of this new center will allow us to build on those efforts, with a renewed emphasis on an exchange of faculty and graduate students,” he said.

During its first year of funding, the center will plan several workshops to assist the University of Agriculture, Faisalabad, with technology transfer and entrepreneurship to strengthen its connections to the private sector. UCD also will initiate programs in both research and curriculum development to improve graduate studies.

Hill noted that two other Pakistan-focused projects are already underway through the International Programs office, primarily in the area of horticultural crops and agricultural extension activities.

Agriculture is the largest sector of Pakistan’s economy, providing jobs for half of that country’s labor force. Some of the traditionally important crops in Pakistan are wheat, cotton, rice, sugar cane and maize. In recent years, crops like beans, peas, lentils, onions, potatoes, chilies and tomatoes also have increased in importance, along with fruit crops such as citrus and mangoes.


The newly funded center at UCD is the most recent of several partnerships of the U.S.-Pakistan Centers for Advanced Studies, a $127 million investment from USAID, linking universities in the two countries and using applied research to solve Pakistan’s challenges in energy, water and food security.

The overall program includes construction of laboratories, research facilities and libraries in Pakistan. Other participating U.S. universities include the University of Utah and Arizona State University, focusing on water and energy, respectively.
Riaz Haq said…
Over 300 #US dairy cows worth $700K exported to #Sialkot #Pakistan by Boeing 747 flight from #Miami on March 1, 2016 http://www.bradenton.com/news/business/article64983542.html …

Renee Strickland opened the door to U.S. cattle exports to Pakistan when she chartered a Boeing 747 and flew with 302 dairy cattle to Sialkot, Pakistan, on March 1.

The long flight was the easy part. It came after five years of frustration, planning, perseverance and negotiation.

"This was a real nail biter. We had three weeks to put this shipment together, and I got my passport at midnight, three hours before the departure to Pakistan," she said.

"It was a pressure-cooker experience," Strickland said, recalling how she brokered the sale and gathered cattle from Okeechobee dairies, north Florida and Kansas.

She could only wrangle those cattle after getting clearance from the U.S. and Pakistani governments, securing a health protocol, overcoming the language barrier and closing the deal with tough negotiators in Pakistan.

"A lot of times, I just kind of thought, my gosh, I am knocking my head against a brick wall," Strickland said.

Even so, Strickland said a lot of people "jumped through hoops to make this happen," citing her partners in Pakistan and the U.S. Department of Agriculture.

"I have a well-respected partner in Pakistan whose family has been in agriculture for 500 years. He is a gentleman, a good person and well respected," she said.

Dix Harrell of the USDA said the beef export market to Pakistan and many other countries closed after the outbreak of bovine spongiform encephalopathy, more commonly known as mad cow disease, in the United States.

Mad cow disease can have an incubation period as long as eight years.

"I know that in the last 10 years, the market wasn't really open to us," Harrell said. "After we had our first case, a lot of countries banned live cattle."

Strickland always flies with the cattle she brokers in sales to ensure no animal is hurt or stressed.

"The cattle traveled great and the unloading went smoothly," she said.

She has previously brokered and delivered cattle to Cuba, Oman, Trinidad and Tobago, Nicaragua, Honduras, Costa Rica, Panama, Guyana and Ecuador.

Pakistan is an attractive market because, with 182.1 million people, it has one of the world's largest populations. In addition, Pakistan is one of the world's largest dairy producers, ranking fifth globally in milk production.

As recently as 1986, buffalo produced most of the milk in Pakistan. Pakistani dairies, however, have been improving their cattle herds and dairy cows are now the dominant producers.

"We are known to have some of the best milking cattle in the world," Strickland said of the attractiveness of U.S. stock.

The Pakistani deal was valued at about $700,000.

"They are getting one heck of a deal," Strickland said, noting she had to sharpen her pencil in dealing with Pakistani buyers. "We are trying to open up this market. It's the most challenging export I have ever had in so many ways."

Renee Strickland, and her husband, Jim Strickland, are preparing a second airborne delivery of cattle to Pakistan for the first week of April. Jim Strickland will be the one handling escort duties next time.

While in Pakistan, Renee Strickland, an avid polo player, got to visit the Lahore Polo Club.

"I will be sending some polo ponies on my next shipment. Polo is a huge sport in that country," she said.

Read more here: http://www.bradenton.com/news/business/article64983542.html#storylink=cpy
Riaz Haq said…
PARC approves 16 projects worth Rs1.2bn
http://www.dawn.com/news/1296963/parc-approves-16-projects-worth-rs12bn

The Pakistan Agricultural Research Council (PARC) has approved 16 research projects with a total budget of Rs1.2 billion for 2016-17.

In addition, the PARC board of governors approved Rs194 million for projects under international cooperation and Rs183m for Agriculture Linkage Programme (ALP).

Talking to Dawn on Thursday, National Agricultural Research Centre (NARC) Director General, Dr Mohammad Azeem Khan said a hybrid seed processing plant will be set up at the NARC with a view to provide clean, treated and high quality seeds to farmers.

He said agricultural research facilities are now being extended to tribal agencies, particularly Waziristan.

The Arid Zone Research Institute in Dera Ismail Khan will also be expanded at the same time, he said.

Under a project, pesticides residue analysis laboratories will be set up in all parts of the country. These laboratories will cover food chains, health, and environment and production technology with a view to pursue international standards.

According to Dr Azeem, three projects will be set up in Balochistan covering horticulture and livestock.

The NARC is also developing a mechanism for the establishment of demonstration units of yogurt under public-private partnership (PPP).

The PARC has recently recommended 14 rice hybrids for different ecologies, two wheat varieties: ‘Borlaug 2016’ and ‘Zincol 2016’, two sugarcane varieties: ‘Thatta 2109’ and ‘Thatta 326’, working on commercialisation of genetically modified (GM) crops, and bioremediation on 86 sites full scale wastewater treatment facilities through Pakistan.

The performance of various PARC projects — including mobile veterinary clinic services, feed technology unit, high eggs and meat producing chicks, ostrich breeding facilities, American channel catfish hatchery at NARC, Tilapia hatchery and aqua feed production to promote intensive fish culture in the country — was also reviewed by the board of governors at a meeting.

Riaz Haq said…
Exclusive: CPEC master plan revealed

https://www.dawn.com/news/1333101


Enterprises entering agriculture will be offered extraordinary levels of assistance from the Chinese government. They are encouraged to “[m]ake the most of the free capital and loans” from various ministries of the Chinese government as well as the China Development Bank. The plan also offers to maintain a mechanism that will “help Chinese agricultural enterprises to contact the senior representatives of the Government of Pakistan and China”.
The government of China will “actively strive to utilize the national special funds as the discount interest for the loans of agricultural foreign investment”. In the longer term the financial risk will be spread out, through “new types of financing such as consortium loans, joint private equity and joint debt issuance, raise funds via multiple channels and decentralise financing risks”.

The plan proposes to harness the work of the Xinjiang Production and Construction Corps to bring mechanization as well as scientific technique in livestock breeding, development of hybrid varieties and precision irrigation to Pakistan. It sees its main opportunity as helping the Kashgar Prefecture, a territory within the larger Xinjiang Autonomous Zone, which suffers from a poverty incidence of 50 per cent, and large distances that make it difficult to connect to larger markets in order to promote development. The prefecture’s total output in agriculture, forestry, animal husbandry and fishery amounted to just over $5 billion in 2012, and its population was less than 4 million in 2010, hardly a market with windfall gains for Pakistan.
However, for the Chinese, this is the main driving force behind investing in Pakistan’s agriculture, in addition to the many profitable opportunities that can open up for their enterprises from operating in the local market. The plan makes some reference to export of agriculture goods from the ports, but the bulk of its emphasis is focused on the opportunities for the Kashgar Prefecture and Xinjiang Production Corps, coupled with the opportunities for profitable engagement in the domestic market.
The plan discusses those engagements in considerable detail. Ten key areas for engagement are identified along with seventeen specific projects. They include the construction of one NPK fertilizer plant as a starting point “with an annual output of 800,000 tons”. Enterprises will be inducted to lease farm implements, like tractors, “efficient plant protection machinery, efficient energy saving pump equipment, precision fertilization drip irrigation equipment” and planting and harvesting machinery.


Meat processing plants in Sukkur are planned with annual output of 200,000 tons per year, and two demonstration plants processing 200,000 tons of milk per year. In crops, demonstration projects of more than 6,500 acres will be set up for high yield seeds and irrigation, mostly in Punjab. In transport and storage, the plan aims to build “a nationwide logistics network, and enlarge the warehousing and distribution network between major cities of Pakistan” with a focus on grains, vegetables and fruits. Storage bases will be built first in Islamabad and Gwadar in the first phase, then Karachi, Lahore and another in Gwadar in the second phase, and between 2026-2030, Karachi, Lahore and Peshawar will each see another storage base.
Riaz Haq said…
#Swiss #agriculture #tech giant Syngenta
to invest $1.4bln in #Pakistan | Business | http://thenews.com.pk

https://www.thenews.com.pk/print/207811-Syngenta-to-invest-14bln-in-Pakistan

KARACHI: Syngenta Pakistan, a Switzerland-based company, dealing in premier crop protection and the third largest seeds business, announced to support small and medium growers to take up modern ways of farming, with the primary objective to ensure food security in the country, a statement said on Wednesday.

Tina Lawton, Syngenta’s head of Asia-Pacific Region, made her first visit to Pakistan and toured Syngenta’s research and development facility near Lahore to review Syngenta’s operations and understand the Pakistan agriculture market and how to support its further development, it added. She also met Syngenta franchisees and farmers to get insight on the market; whereby, assuring them Syngenta’s commitment to Pakistan and upholding its long tradition of 50 plus years presence in the country. She also discussed the modernisation of the Naya-savera Franchise model with the use of latest pioneering technology.

Lawton said that Syngenta’s transition of new ownership to ChemChina will not affect its status as a Swiss company and it will continue to focus on long-term investment through over $1.4 billion annual investment in research and development in Pakistan, the statement said.

Lawton’s visit proved extremely fruitful and truly demonstrated the Syngenta’s commitment to improve the life of farmers. Syngenta is all geared up to transform the agriculture sector of Pakistan, making it a self-sufficient economy to meet its food requirements by bringing in new technology and products, which will cater to the needs of the ever-growing agriculture industry in Pakistan, it added.
Riaz Haq said…
THE EXPRESS TRIBUNE > BUSINESS
Pakistan could eat India’s share of basmati rice exports

https://tribune.com.pk/story/1456663/pakistan-eat-indias-share-basmati-rice-exports/


Pakistan could target India’s basmati rice share in the global market, a likelihood sparked by stringent policies placed by the European Union (EU) on the presence of hazardous pesticides in the commodity, said an official.

From January 1, 2018, all countries that export basmati rice to the EU must bring down the maximum residue limit (MRL) level for Tricyclazole, a pesticide, to 0.01 mg per kg. Up till now, the EU was accepting 0.03 mg per kg from different countries, including India.

The chance that Pakistan could eat up a share of India’s market comes from the fact that the country’s farmers do not use such chemicals to protect their crops.

However, Indian farmers widely use the pesticide under scrutiny and exporters fear that up to 95% of basmati shipments could take a hit by the new regulation.

Since new EU regulations could completely choke off Indian basmati exports, an Indian government delegation is leaving for Brussels this week to discuss the restrictions.

On the other hand, a Pakistani basmati exporter says this presents an opportunity to grab India’s market share, because it will at least take two cycles to reduce the consumption of Tricyclazole in the country.

“Pakistan currently exports 100,000 tons of basmati to the EU a year, which can go up to 250,000 tons per annum after EU regulations,” Matco Foods Pvt Limited Director Faizan Ali Ghori told The Express Tribune.

India, the world’s biggest exporter of basmati rice with a share of about 70%, exported 350,000 tons of basmati to the EU worth $268 million in fiscal year 2016-17.

Raising Rs1 billion from the stock market

Meanwhile, Matco Foods – one of the leading basmati rice exporters in Pakistan – is expecting to raise Rs1 billion through the Initial Public Offering (IPO) it has planned for around September this year.

The company plans to invest the proceeds in its two rice glucose plants in Karachi. Rice glucose is the main ingredient for pharmaceutical, confectionery, and juice industries.

“We want to move towards value added products to increase exports,” said Ghori.

The company exports rice to over 60 countries.

Matco’s first rice glucose with a capacity of 10,000 tons per annum is being commissioned in Karachi at an investment of Rs350 million. The other factory will have a capacity of 20,000 tons that will be set up in the next one to two years.

The company will prefer international markets as it expects to fetch as much as $11,000 per ton against a price range of just $400-$500 per ton in the domestic market, Ghori said, adding that there is a growing demand in western markets for rice glucose.

Currently, there are two rice glucose factories in Pakistan – both in Karachi due to proximity to ports and export markets.

Matco’s management believes the demand for rice glucose will increase because it is not genetically modified and safer for children. At present, over 90% domestic demand of pharmaceutical and confectionary industries is being met by corn glucose.

CPEC opens avenues for agri-exports

“There is so much room for diversification in rice exports because Pakistan does not make value added products from rice that have huge domestic as well as international demand,” he added.

Riaz Haq said…
India: Agriculture value added per worker, constant USD: For that indicator, The World Bank provides data for India from 1980 to 2018. The average value for India during that period was 877.56 U.S. dollars with a minumum of 645.29 U.S. dollars in 1980 and a maximum of 1202.45 U.S. dollars in 2016. See the global rankings for that indicator or use the country comparator to compare trends over time.

https://www.theglobaleconomy.com/India/Agriculture_productivity/

Pakistan: Agriculture value added per worker, constant USD: For that indicator, The World Bank provides data for Pakistan from 1980 to 2018. The average value for Pakistan during that period was 1501.55 U.S. dollars with a minumum of 1011.2 U.S. dollars in 1981 and a maximum of 1757.26 U.S. dollars in 2015. See the global rankings for that indicator or use the country comparator to compare trends over time.

https://www.theglobaleconomy.com/Pakistan/Agriculture_productivity/
Riaz Haq said…
Cargill plans $200M expansion in Pakistan, with focus on poultry and dairy
Cargill will also start grain trading and add other operations in Pakistan.

http://www.startribune.com/cargill-plans-200m-expansion-in-pakistan-with-focus-on-poultry-and-dairy/504558562/

Cargill Inc. will invest $200 million in Pakistan over the next several years to build out the company’s supply chain there and harness growing demand for chicken throughout the region.


Cargill Inc. will invest $200 million in Pakistan over the next several years to build out the company’s supply chain there and harness growing demand for chicken throughout the region.

This marks a substantial expansion for the Minnetonka-based agribusiness — the world’s largest — which has run a small operation in Pakistan since the early 1980s. It’s also the company’s latest in a rapid series of investments throughout Asia, and specifically in the south and southeast parts of the continent.

Cargill currently has cotton, sugar, metals and animal feed business interests, as well as oil-crushing facilities, in Pakistan, but will scale up its legacy grain-trading business there over the next three to five years. Cargill did not provide additional details on what those operations will entail, but the company said it will increase its employee base beyond the modest 50 people currently working in the country.

“Finalizing one of our first investments in the agricultural supply chain in Pakistan is our top priority,” Imran Nasrullah, head of Cargill Pakistan, said in a statement. “We have received a very positive response from the Pakistani government and we value their support as we expand our presence here.”

Cargill’s investment will expand its dairy and meat business in Pakistan and deepen its focus on the Asia-Pacific region. Marcel Smits, the company’s former chief financial officer, was given a newly created role — head of Asia Pacific — in October amid a major executive reshuffle.

The company said Smits’ role was to “lead Cargill’s accelerated growth plan in the Asia Pacific region, a high-potential market for the company and its customers.” One month later, the company announced several multimillion-dollar investments in Thailand, Malaysia and the Philippines.

South and Southeast Asia hold some of the greatest growth potential in chicken, according to a recent Rabobank analysis.

Cargill is also growing its chicken business in another growth region: Central and South America. Cargill acquired Campollo in late 2018, less than a year after it acquired Pollos Bucanero, both Colombia-based chicken companies.

The office of Pakistan Prime Minister Imran Khan applauded Cargill’s investment. The news comes as Pakistan attempts to attract foreign investment to stabilize and grow its economy.
Riaz Haq said…
Trade churn: Who will milk the benefits?

https://www.financialexpress.com/opinion/trade-churn-who-will-milk-the-benefits/1750285/


According to the Food and Agriculture Organisation 2017, India is the largest milk producer in the world which contributes 21% to the world milk production followed by the United States (12%), Pakistan (5.3%), China (4.2%), Brazil (4%), Germany (3.9%), Russia (3.7%), New Zealand (2.5%), Netherlands (1.7%) and Australia (1%). In terms of numbers of dairy farmers, India is followed by Pakistan (7 million), the United States (0.038 million), China (0.013 million), New Zealand (0.012 million) and Australia (0.005 million).

India has around 73 million dairy farmers mostly holding one or two milch animal per farmer. Also, in India, farmers share in the retail price of milk is around 60%, the highest amongst other countries (International Farm Comparison Network, Dairy Report, 2018). Whereas, in the case of New Zealand and Australia, where average holding is 430 and 263 milch animals per farmer, respectively, price share is only 23% and 24%. Similar is the situation in the United States, Germany, France, and Denmark, where farmers receive only 43%, 45%, 34% and 43% of consumers’ price on milk and milk products, respectively.

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India’s livestock sector ensures food security, provides employment, which leads to a reduction poverty and, more importantly, rural inequity. This is also evident from the increasing dependence of Indian farmers on livestock. Share of livestock sector to Gross Value Added (GVA) increased from 4% in 2011 to 4.6% in 2016. While share of agriculture and allied sector to gross value added consistently declined from 18.5% to 17.9%, during this period share of livestock in agricultural and allied gross value added increased from 22% to 26%. Among the livestock products, milk and milk product consist the highest share (67%) in the value of output from the livestock sector. Besides, this sector has been growing 11%, compounded annually, whereas the agricultural and allied sectors have grown 9% over this period. In recent years, milk and milk products are the largest agricultural commodity generating 32% more output than combined output of paddy and wheat.
Riaz Haq said…
China says it will encourage Chinese enterprises to invest in Pakistan to build a corridor of green development, health and digital economy, fully make the use of China-Pakistan Free Trade Protocol and increase the agricultural products from Pakistan.

https://www.radio.gov.pk/16-02-2022/china-to-encourage-its-enterprises-to-invest-in-pakistan-wang-wenbin

This was stated by Chinese Foreign Ministry Spokesperson, Wang Wenbin while responding to a question during his regular press briefing in Beijing.

He said Prime Minister Imran Khan's visit to China and attendance at the opening ceremony of Beijing 2022 Winter Olympics carried on the fine tradition of mutual support between China and Pakistan.

He said during the visit, President Xi Jinping and Premier Li Keqiang met with Prime Minister Imran Khan.

The Spokesperson said the leadership of the two countries held important exchanges and reached consensus on deepening China Pakistan Economic Corridor, expanding science, agriculture and social livelihood cooperation
Riaz Haq said…
The challenge of shrinking farm sizes


https://www.dawn.com/news/1730732


Many research studies have explored and proven the inverse relationship between farm size and crop yields. In Pakistan, the solution undeniably lies in consolidating agricultural holdings into somewhat larger and more efficient farms. But the real challenge is to devise and execute effective policy measures. Among the options explored, cooperative farming and corporate farming are often the most cited.


In Pakistan, the average farm size has steadily declined from 5.3 hectares in 1971 to 3.1 hectares in 2000 and then subsequently to 2.6 hectares in 2010 (Agricultural Census 2010). As a result, the agriculture sector is now dominated by smallholders. Over 90 per cent of farms are smaller than 12 acres, out of which 67pc are below even five acres (two hectares).


The majority of farms have become so small due to successive land divisions that they are no longer economically and operationally viable. Small size is a major limiting factor for increasing labour and land productivity, mechanisation of farms, optimal application of quality farm inputs, and adoption of advanced agricultural practices and technologies.

At the same time, more than 8.2 million farms pose a serious challenge for the government to provide extension services, offer credit facility to all farmers, enhance their effective access to the market and even implement government programmes for farmers, primarily due to the high transaction costs involved. All these challenges translate into higher production costs and, in turn, a lack of competitiveness. As a result, farmers demand farm subsidies, putting additional pressure on the country’s scarce financial resources.

Interestingly, in East Asian countries like South Korea and Japan, instead of shrinking, farm sizes are increasing. In fact, thriving manufacturing and service sectors have provided lucrative employment opportunities, resulting in labour migration from agriculture to non-agriculture sectors.

Many research studies have explored and proven the inverse relationship between farm size and crop yields. In Pakistan, the solution undeniably lies in consolidating agricultural holdings into somewhat larger and more efficient farms. But the real challenge is to devise and execute effective policy measures. Among the options explored, cooperative farming and corporate farming are often the most cited.

Cooperatives (associations of persons united voluntarily) have been successful in many countries in empowering farmers to pool in multiple lands together, use collective bargaining to buy agricultural inputs and sell their produce, and collectively undertake value addition to attain greater efficiencies. Their success can be gauged from the fact that cooperatives in Europe have over 40pc market share in agri-food supply chains, whereas, in the USA, around 75pc of the country’s milk is marketed by dairy cooperatives.

Due to the peculiar socio-cultural context of our rural areas, particularly in Punjab and Sindh, people do not exhibit an inclination towards working together for common needs and aspirations. Therefore, cooperatives in the agriculture sector could not reap the desired results. In Pakistan, cooperatives often do not hire professional managers. Therefore, when the majority of members lose interest in managing the organisation due to one reason or another, a small group takes control and manages it for their own gains and interests.

Another widely mentioned option is corporate farming (large-scale agriculture by large companies). The arguments in favour include companies’ greater capacity and financial muscle to introduce mechanisation and new technologies, undertake effective marketing of farm produce, develop linkages with national and international value chain players, and improve farm and area infrastructure. All these factors result in higher productivity and competitiveness.


Riaz Haq said…
Pakistan's Rise as Strong Competitor Threatens India's Supremacy in Global Maize Market

https://krishijagran.com/news/pakistans-rise-as-strong-competitor-threatens-indias-supremacy-in-global-maize-market/


In the worldwide maize (corn) market, Pakistan has emerged as a strong rival to India, delivering the coarse cereal at a lower price in South-East Asia.


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"Pakistan is currently dealing with a number of difficulties. This year, India boasts a bountiful maize crop. The situation is expected to improve as new contracts are signed by Indian exporters to South-East Asia and Gulf countries," said Mukesh Singh, Managing Director of Mumbai-based MuBala Agro Commodities Pvt Ltd.

"Pakistan benefits from its currency's depreciation against the US dollar." However, it has limited numbers and is only targeting South-East Asia," said Rajesh Paharia Jain, a New Delhi-based exporter. According to a trade analyst in Delhi, Indian exporters cannot help with such buyer behavior, even though such cases are rare. "However, there are issues. No one is issuing letters of credit (LCs) to facilitate trade with Pakistan. Also, container availability is an issue," he added.

According to Prakash, Indian maize is being offered for USD 307-15 per tonne, while Pakistani maize is being sold at USD 293-95 cost and freight. According to Jain, Pakistan is offering its produce for USD 280 f.o.b., whereas India is requesting USD 295 f.o.b. "India should be able to reclaim the advantage, primarily through lower east coast freight rates."

Our maize, on the other hand, is hampered by a flat Indian currency and a lack of government support, in addition to greater handling and storage costs," Jain explained. "We don't have any supply issues. As prices have calmed slightly, we are getting maize supplied for USD 24,000 per tonne in Chennai', added Prakash.

The median price (rates at which most trades take place) of maize at Davangere in Karnataka is 2,017 per quintal, according to data from Agmarknet, a subsidiary of the Agriculture Ministry, down 150 since last month. This crop year's minimum support price (MSP) for maize is USD 1,962. Prices have fallen below the MSP in some Maharashtra marketplaces.

Corn futures on the Chicago Board of Trade (CBOT) are trading at a one-month high of USD 6.5 per bushel (USD ​255.89 per tonne) due to robust demand. According to Jain, the quality of Indian maize is superior, but it is unable to gain since it is desired for feed rather than human use. MuBala's Singh stated that he has had orders from Oman and Saudi Arabia, but in lesser lots of 5,000 tonnes. Vietnam and Malaysia were also buying in large quantities.

However, issues have arisen with shipments to Bangladesh, the main consumer of Indian maize, because Indian LCs are not being fulfilled. According to the analyst, demand for Indian maize would remain strong in light of agricultural concerns in the United States. "There is uncertainty about supply from the United States. In addition, supplies from Ukraine are in doubt. Maize demand remains strong, and India stands to benefit," he said.

A record high maize yield of 34.61 million tonnes (mt) is expected to help meet export requests. According to figures from the Agricultural and Processed Food Products Export Development Authority (APEDA), maize exports were 28.6 lakh tonnes (lt) valued at USD 931 million during the April-January period of the 2022-23 fiscal, with Bangladesh accounting for 15 lt and Vietnam contributing for 5.7 lt. Maize exports were 36.9 lt valued at $1.02 billion in 2021-22.
Riaz Haq said…
Pakistan’s maize output has grown 4.5 times between 2000 and 2020 in the face of looming climate change challenges.


https://propakistani.pk/2023/05/08/replicating-the-success-story-of-maize/

It has witnessed an estimated 60 percent increase in productivity in the last decade according to the data published by the Pakistan Bureau of Statistics and Economic Survey of Pakistan. It’s the third-biggest cereal crop. In addition to direct human consumption, its uses range from poultry, livestock, and fisheries all of which play a key role in ensuring Pakistan’s national food security.


Since the opening of the first maize research institutes of the country in Yousafwala (Sahiwal) and Pirsabak (NWFP) in 1971 and the introduction of spring maize cultivation in 1975, maize acreage and production have been growing steadily over the years.



A coordinated Maize and Millet Research Programme initiated the same year and simultaneous efforts by the private sector have brought us to the point where Pakistan has surplus stocks of maize to export. It’s one of the few instances where the government and private sector has jointly built something so immense from scratch, especially in the agriculture sector.

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Developing the market
The primary driver behind the growth of any commodity is sustainable demand and fortunately for maize, it found a robust market. Poultry, one of the biggest sub-sectors with an annual turnover of Rs. 1500 billion and 10-12 percent annual growth, has been the key recipient of maize grain.

An estimated 65 percent of Pakistan’s production goes to providing poultry feed while 15 percent goes to wet milling, a process that mainly gives starch and other by-products like corn oil, gluten, fibre, and several important chemicals. All of these have widespread use cases from beverages, bakeries, processed food, oil, industrial alcohol, textile, paper, and pharmaceuticals.

Another 10 percent is utilized to produce cattle feed while the little of what’s left is used for human consumption. All of this points towards the fact that if we want the same success in other major crops Pakistan is struggling with, we need to develop their market and demand will take care of the rest.

It is unfathomable to expect an increase in cotton acreage and productivity when the textile sector is suffering from inflating energy crisis, uncompetitive tariffs, lack of skilled labor and the lack of innovation and value addition.

The same is true for oil seed crops where 75 percent of the consumption for edible oil is met with imported palm oil while the informal sector which constitutes desi ghee and domestic mustard oil cover 70-80 percent of the market. We simply lack the conducive infrastructure that can incentivize and promote the growth of oil seed crops. As long as there will be uncertainty on the market end, farmers will remain cautious in following the trend.

Research & Development
While the market demand played its role, the same can also be said about cotton, which has the biggest sector of the economy to back it, but the country is still failing to revive production to 2014 levels, let alone making any new breakthrough. The answer is research. The way the public and private sector has developed and promoted the modern maize hybrid seeds among farming communities, is unforeseen for any other crop, even cotton.

Industry-led efforts and Pakistan’s cooperation with China to introduce hybrids for rice and wheat are still in the early stages, but maize hybrid has already made its mark. Although, hybrid maize accounts only for 40 percent of the maize grown in the country, it contributes far more to the overall production due to high-yielding cultivars.


According to the farmers we talked to, they are often lucky to get nearly 40 maunds per acre with traditional varieties, but hybrid maize can easily guarantee 100 maunds per acre with the right practices.

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