Pakistan Tops South Asia in Agriculture Value Addition

While Pakistan has lagged in South Asia region in manufacturing value addition, the country enjoys a significant lead in agriculture value addition over Bangladesh and India.  Livestock revolution and increasing farm mechanization have enabled Pakistan to significantly raise agriculture productivity and rural incomes since 1980s. There is rising tractor ownership and growing 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. However, Pakistan still gets less crop per drop than India which means there is significant opportunity for water saving.

Agriculture Value Addition. Courtesy: Dr. Krishna Prasad Pant


Agriculture Value Addition:

As of 2014, the agriculture value addition in Pakistan is estimated at $1,050 per worker, significantly higher than $700 per worker in India and $600 per person in Bangladesh., according to the World Bank data as reported by Dr. Krishna Pradad Pant in Agriculture Investment in his paper titled "South Asia:trends, opportunities and challenges".

Agriculture Value Addition. Courtesy: Dr. Krishna Prasad Pant


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."

Tractor Ownership:

Agriculture mechanization is measured in terms of tractor ownership in horsepower per hectare of cultivated land. It has grown in Pakistan from 1.02 hp per hectare in 1992 to 1.5 hp/ha in 2015,  according to a paper titled "In Pakistan, Agriculture Mechanization Status" by Muhammad Aamir Iqbal. It is still significantly lower than India's 2.50, China's 3.88 and Japan's 7.0.      

Pakistan's tractor market is growing. In 2017, over 60,000 tractors were sold. Production capacity stands at 70,000 units per annum and models range from 55 to 85hp, according to a report in Pakistan's Dawn newspaper.  Since the launch of the indigenization program initiated in the eighties by the Pakistan Tractor Corporation, the industry has achieved 95% localization in terms of production.

Crop Per Drop:

Data on irrigation efficiency in Pakistan highlights significant opportunities for saving water.

In an average rainfall year, the water productivity for wheat in Pakistan (0.76 kg/m3) is 24% less than the global average (~1.0 kg/m3), according to Water Watch . During the drought of 2001- 02, water productivities were at the same level as the global average. Hence, drought results in a more efficient utilization of water resources by wheat crops grown in the rabi (the dry winter season).

Water Watch found that rice yield in Pakistani Punjab is on-average 24% higher than in Sindh. The water productivity of rice (0.45 kg/m3) is 55% below the average value for rice in Asia (~1.0 kg.m3). Contrary to wheat, the water productivity of rice decreased during the 2001 drought, because rice is sensitive to water stress and to salinity that is intensified through increased groundwater withdrawals.

Crop Yield Comparison. Source: Kleffman Group

Pakistan lags India in water productivity. Crop yields show distinct North-South and East-West variations: wheat yields in the Indian Punjab average 29% higher than in the Pakistani Punjab to the west, and wheat yields in the Pakistani Punjab are 33% higher than in the Pakistani Sindh to the south. These spatial patterns of wheat yield are similar for 1984-85 and 2001- 02. Because crop evapotranspiration in the Pakistani Punjab and Indian Punjab are similar, the difference in crop yields between these two regions is also responsible for the difference in water productivity values. This important conclusion implies that increased water productivity can only be achieved by increased crop yields. Experiments of the Pakistan Agricultural Research Council across the country (n=41) have indicated that the overall yield of wheat can be increased by 54%, provided that inputs are optimal. Improved management of water quality (groundwater and canal water) and evacuation of drainage water are important components for improving agricultural production. Seed quality, fertilizers, and pesticide control should also be improved.

Summary: 

While Pakistan has lagged in South Asia region in manufacturing value addition, the country enjoys a significant lead in agriculture value addition over Bangladesh and India.  Livestock revolution and increasing farm mechanization have enabled Pakistan to significantly raise agriculture productivity and rural incomes since 1980s. There is rising tractor ownership and growing 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. Pakistan still gets less crop per drop than India which means there is significant opportunity for water saving.

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Comments

Riaz Haq said…
Pakistan among top three dairy producers
Amin Ahmed Updated June 01, 2017

https://www.dawn.com/news/1336575

ISLAMABAD: The Food and Agriculture Organisation (FAO) of the United Nations says Pakistan is among the three countries in Asia and Pacific region which are the world’s top dairy producing countries.

The total value of Asian dairy production exceeded $110 billion in 2013, and figured in the three top commodities in the region in terms of gross value of production. While the dairy production in Pakistan, India and China largely meet domestic consumption, Australia and New Zealand produce a surplus, FAO says on the occasion of World Milk Day being celebrated on June 1 (Thursday).

According to latest figures published in Pakistan Economic Survey 2016-17, milk production in the country is on the increase and during the current fiscal year the gross production of milk was estimated to be 56,080,000 tonnes.

FAO warned that while dairy has big potential, the sector needs to be more sustainable and competitive in Asia and Pacific region. This means helping smallholder farmers gain greater access to markets and services and develop successful dairy business models to increase domestic production.


The aim is to create a sector, which is socially responsible and produces safe and healthy food making more efficient use of the natural resources and reduces the effects on the environment. Only by doing so, will the sector become more sustainable for the benefit of future generations. FAO remains committed to working with all stakeholders to achieve a dairy sector that contributes to health and prosperity of the world.

An Asia Pacific Regional Audit done by the International Osteoporosis Foundation has concluded that the average dietary calcium intake in Asia is well below the FAO-WHO recommendation of 1,000 to 1,300 milligrams per day and most Asian countries have seen a two-to-three fold increase in the incidence of hip fractures during the past 30 years.

In order to facilitate dairy farmers, duty free import of calf milk replacer and cattle feed premix was allowed. During the current fiscal year, 310.2 metric tonnes of calf milk replacer and 298.9 metric tons of cattle feed premix was imported.

Last December, the Royal Friesland Company acquired 51 per cent of Engro Foods Pakistan, which was one of the largest private sector foreign direct investments in Pakistan’s dairy sector, amounting to $450 million.

Under the new deal and 2020 strategy arrangements, Engro Foods will aim for higher milk quality, variety of milk packages and products and farmers’ capacity building leading to a reduction in poverty.

In addition, regulatory duties to the tune of 25pc have been imposed on the import of skimmed milk powder and whey powder. This is to attract further investments in the dairy sector along with protecting small dairy farmers.
Riaz Haq said…
#Pakistani giant #Engro to bet big on rising #middleclass in #Pakistan. Engro weighing acquisitions and starting new businesses in #agriculture, #healthcare, #realestate , #communications and other #consumer-linked sectors to profit from rising #incomes. https://www.thenews.com.pk/latest/368531-in-shift-pakistani-giant-engro-to-bet-big-on-rising-middle-class

Pakistan’s chemicals-to-energy conglomerate Engro Corp has seen its fortunes rise on the back of massive Chinese investment, but plans to shape its future growth around the country’s vast population and expanding middle class, its chief executive said.

Engro Corp, best known for its fertilizer and petrochemicals factories, as well as engineering projects, is Pakistan’s largest listed conglomerate, and after recovering from a brush with bankruptcy in the early part of this decade is now sitting on a $500 million cash pile.

It has been a major beneficiary from Beijing’s Belt and Road Initiative splurge, working with Chinese firms on coal and power projects worth billions of dollars.

Engro’s rising fortunes since 2012, when its factories were crippled by gas shortages, mirror the improvements in Pakistan, a nuclear-armed nation where economic growth has accelerated due to vast Chinese investment and a sharp drop in militancy and power outages.

In the near term, Engro’s outlook is linked to a mile-long $1.5 billion coal mine in the Thar desert near the border with India, part of Beijing’s pledge to invest about $60 billion in Pakistan.

But with Pakistan’s new government hinting it may review Belt and Road contracts due to concerns they were too expensive, some analysts see risks on the horizon for Engro and say planned power plants around the mine may struggle to obtain financing.

Ghias Khan, Engro’s chief executive, told Reuters this week he was “pretty confident” the government would not re-open deals with sovereign guarantees.

“If they do, that will have a very negative impact,” Khan said.

This year Pakistan’s economy has also been shaken by a shortage of dollars, and speculation Islamabad may turn to the International Monetary Fund to ease current account pressures.

CONSUMER GROWTH

Undeterred by Chinese investment jitters and the recently wobbly economy, Khan said Engro was weighing acquisitions and starting new businesses in agriculture, healthcare, real estate, communications and other consumer-linked sectors to profit from rising incomes in the Muslim majority country of 208 million people, 60 percent of whom are aged under 30.

“We’ve come to a realization what has gotten Engro where it is today is not good enough for our next phase of growth,” Khan said in an interview at Engro’s ocean-front headquarters in Karachi, an Arabian Sea metropolis.

“What we are proud of is our ability to execute large-scale projects and put up large industrial complexes. But we are mindful we have to get into businesses which are more related to the population growth, and take us closer to the consumers.”

In Karachi, mushrooming shopping malls and ever-rising number of cars on the road point to a multi-year consumer boom as people’s disposable incomes have doubled this decade, analysts say.

Khan compared Pakistan’s current economic level, population growth and per capita income, which stands at about $1,600, to where China, South Korea and India were at earlier points in their development.

“If you look at sectors that did well when they were where Pakistan is today ... like real estate, automobiles, healthcare, logistics - everything is somehow related or linked to population growth or the middle class,” Khan said.
Riaz Haq said…
USAID to expand agri-tech-based private sector investment in Pakistan
October 16, 2018

https://pakobserver.net/usaid-to-expand-agri-tech-based-private-sector-investment-in-pakistan/

Dedicated to private sector agricultural technology innovation as a key to unlocking the full potential of Pakistan’s horticulture, dairy and livestock sectors, USAID Pakistan through the Pakistan Agricultural Technology Transfer Activity signed Memoranda of Understanding (MoUs) with 10 leading private sector agri-tech companies to help scale up investments in affordable new agricultural technologies. The project has signed MOUs with Ali Akbar Group Enterprises, CattleKit, Farm Dynamics, Haji Sons, Farm Solutions, Dairy Solutions, Solve Agri Pak, Matra Asia, Ravi Agriculture, and Noorani Industries.
The PATTA project partnership seeks to enable agri-tech knowledge transfer and eliminate the barriers to technology adoption, increasing awareness and ultimately enhancing farmers’ production, and profits. The results will improve Pakistan’s overall agriculture-fuelled economic infrastructure and contribute to food security.
PATTA’s partners demonstrate willingness to invest in technology expansion to convert agricultural innovation into commercial success with a pro-farmer approach. Chief of Party PATTA Dr. Daney Jackson stated, “These MOUs formalize PATTA’s partnership with leading private sector companies to support agricultural technology adoption across Pakistan.”
This local partnership-driven technical assistance is spearheading private sector development in the agricultural technology sector. USAIDPATTA will support at least 30 private sector companies to become more competitive and profitable by upgrading equipment, commercialising and marketing500 technologies and modernizing management practices. Technology, innovation and agriculture can increase agrarian production, profitability and expand the work forceby 3400 jobs. Private sector investment is expected to increase by USD 4.8 million and sector sales by USD 17.68 million in 4 years through PATTA’s initiatives.
In a recent MOU signing ceremony, CEO Farm Solutions Bilal Chaudhry stated that partnership with USAID will enable the private sector to accomplish gains that cannot be realized alone.
CEO Matra Asia Anwar-ul-Haq stated, “The partnership between Matra Asia and USAID will help increase farmer profitability by reducing the input costs and increasing yields.”
PATTA’s 10 private sector partners are also striving to narrow the gap between men and women by providing opportunities to women farmers and entrepreneurs. One of these partners – Haji Sons – has ensured that their technology demonstrations also reach female farmers, enabling them to adopt leadership positions in agricultural technology.
Riaz Haq said…
Why #Pakistan PM #ImranKhan’s #chicken and #eggs solution has been mocked for all the wrong reasons. As opposed to a #cash handout (Benazir Income Support) , chickens are an #investment. Such investments help empower women and reduce #poverty https://www.dawn.com/news/1449622

by Myrah Nerine Butt


I will start by comparing the cash handout with the chickens handout to poor rural women and why chickens might work better given the household dynamics in place.

Also read: Restricting non-filers from buying cars and property isn't sound policy. It's only good optics

Firstly, one is a cash transfer while the other can be termed as an asset transfer. Money is more fungible than chickens. While money can be controlled by the men of the household and spent on non-productive or non-household activities, it is likely that chickens would remain in the hands of the women.

Typically, the men tend to goats, cows and buffaloes; there is a masculine connotation attached to tending to superior forms of livestock.

Because chickens are culturally seen as inferior forms of livestock, women are likely to retain control of these assets.

This is likely to increase the role of women in household decision-making: they control the chickens so they may decide on how to divide the eggs in the house or where to spend the resulting income.

***
As opposed to a cash handout, chickens are an investment. They require low capital and the turnover is high.

They can also potentially help households climb out of poverty. However, the return on investment argument can be slightly confusing.

The remarkable high returns on investment are linked to commercial poultry farming; there are economies of scale on large chicken farms.

Rural households cannot tap into these massive economies of scale.

So, while rural households might not be able to capture the economies of scale, the eggs would still initially support subsistence of households and provide a steady basic income once the brood of chickens multiplies.

The idea of handing out chickens instead of cash is largely appealing because there is some evidence of its effectiveness in South Asia.

In addition to supplementing household income and providing subsistence, research shows that increased capacity gained by women and children through village poultry projects have impacts well beyond the improved village poultry production: chickens have increased food security and improved nutrition.

Related: I'm glad Imran Khan has highlighted stunting. But there is more to it than clean water and food

--------

The chicken intervention can and should be one of a number of poverty alleviation interventions, not a comprehensive solution. We cannot put all our eggs in one basket at the end of the day.

My fear, therefore, is that the intervention is top-down instead of being bottom-up. While global research and evidence is important, we need to ask ourselves: would it work in our context?

I am curious to find out whether a needs assessment has been conducted. Have the beneficiary women been consulted? Do they want chickens or are we going to force an additional burden on them? What kind of chickens work best in the local context?

For any intervention, the local communities need to be consulted right from the design stage. The intervention should be context-specific and bottom-up rather than top-down.

My key suggestion is to ignore the politicians sitting in the centre. They don’t need chickens like the rural woman might, but ask her before investing money first.

There is a need to step away from mocking PTI’s move to push forth this intervention. The decision is based on international research rather than a complete blind jump.

Let’s try giving the chickens a chance.
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…
#Pakistan, #US for enhanced #agriculture cooperation. #Agriculture mechanization, to augment the yield of #cotton, development of #oil seed and decrease the #import bill, #American market access to increase #mango and other #exports to #US. #trade #tech https://www.dawn.com/news/1492976

Ahead of Prime Minister Imran Khan’s visit to the United States of America, the two sides on Monday discussed measures for enhancing cooperation in the agriculture sector.

In a meeting, Minister for National Food Security and Research, Muhammad Mehboob Sultan and US Ambassador Paul Jones agreed that the forthcoming visit would be very important to highlight the preferred areas of cooperation especially in the field of agriculture.

Mr Sultan highlighted that the scope of Pakistani mangoes to the US market could be enhanced since the product meets all the international standards and is exported to almost 48 countries after vapour treatment.

This will give a great boost to mango exports and US could also work in collaboration for value-addition of mangoes in Pakistan which will be mutually beneficial. Mr Sultan further said that dates from Pakistan may also be granted market access in US. In view of the visit of the prime minister, dates and other products may also be granted market access on reciprocity.


US ambassador was of the view that Pakistan could import meat from the United States to which the federal minister explained that it could be explored after mutual consultation.

The agriculture minister said the two countries must explore venues for mutual cooperation especially when the prime minister’s agriculture emergency programme has already been launched.

He said the present government is making every effort to strengthen the agriculture sector, especially after the devolution. The government has identified few areas to be developed on priority and important of those areas are agriculture mechanisation, to augment the yield of cotton, development of oil seed and decrease the import bill.

He said the government as well as the agriculture ministry is open for cooperation from all provinces and friendly countries for mutually beneficial work in the agriculture sector.

Ambassador Jones said the United States is well aware that Pakistan is an important agricultural country, and exchange of technologies in the field of agriculture including cooperation in value-addition, and public-private partnership would be welcomed by both the sides.

Riaz Haq said…
PM asks industrialists to help promote corporate farming

https://www.blogger.com/comment.g?blogID=8278279504304651957&postID=8353606962549198723

Stressing the expansion of corporate farming, Prime Minister Imran Khan on Friday sought proposals from industrialists to modernise agriculture sector and enhance production of various crops.

In a meeting with the country’s leading industrialists and businessmen, the prime minister said national development and prosperity was linked with the development of the business community, facilitation of which was the responsibility of the government.

He said the government had included the industrialists’ proposals in policymaking, which have started producing positive results.

The PM directed the authorities concerned to resolve export-related issues faced by the industrialists at the earliest.

The delegation included Azam Farooq (Cherat Cement), Bashir Ali Muhamamd (Gul Ahmed), Muhammad Ali Taba (Lucky Cement), Saqib Shirazi (Honda Atlas), Fawad Mukhtar (Fatima Fertilizer), Arif Habib (Arif Habib Group Ltd) and Hussain Dawood (Engro Corporation).

Industries & Production Minister Hammad Azhar and Advisers to PM Abdul Razak Dawood, Dr Abdul Hafeez Sheikh and Dr Ishrat Hussain were also present on the occasion.

The delegation thanked the premier for patronizing trade activities in the country. They said the highest level of foreign exchange reserves reflected economic stability and expressed satisfaction over the availability of the government’s economic team for guidance.

The delegation also termed the country surplus current account ‘a welcome sign for national economy’.

They informed the PM that the demand of cement was highest in the country’s history due to promotion of construction activities, which helped generate immense employment opportunities during the pandemic.
Riaz Haq said…
FY2020-21: Tractors assembling witnesses 59% growth in 11 months

https://dailytimes.com.pk/791852/fy2020-21-tractors-assembling-witnesses-59-growth-in-11-months/

Owing to incentives offered by the government under its Agriculture Fiscal Package to mitigate the harmful impacts of COVID-19 pandemic and mechanization of agriculture sector, local tractor production witnessed about 59.03 percent growth in 11 months of current fiscal year as compared the production of corresponding period of last year.

During the period from July-May, 2020-21, 45,432 tractors were locally assembled as compared the assembling of 28,568 tractors of same period of last year, according the provisional quantum indices of Large Scale Manufacturing Industries (LSMI) for May 2021. The provisional quantum indices of Large Scale Manufacturing Industries (LSMI) for May 2021 with base year 2005-06 have been developed on the basis of latest data supplied by the source agencies. On month on month basis, the local production of tractors registered about 15,31 percent increase as about 4,105 tractors were locally manufactured in May, 2021 as compared the production of 3,560 tractors of same month of last year, according the data.

It is worth mentioning here that the government had initiated Rs1.5 billion sales tax subsidy on locally-manufactured tractors under agriculture package announced to revive the economically important sector and approved withdrawal of 5 percent sales tax on locally-manufactured tractors for one year. The government in May, 2020 announced a fiscal package of over Rs1.2 trillion in the wake of COVID-19 pandemic. Economic Coordination Committee of the cabinet division approved the package proposals. Out of the package, Rs50 billion was earmarked for relief to agriculture sector that contributes 18.9 percent to GDP and absorbs 42.3 percent of labor force. The package also includes Rs6.861 billion for provision of financial relief in terms of markup subsidy on bank’s loans to farmers, besides announcing sales tax relief measures to promote mechanization in agriculture sector to enhance per-acre crop yield. Pakistan produces tractors with a variety of working capacities in technical collaboration with foreign manufacturers, including New Holland Tractors and Massey Ferguson.
Riaz Haq said…
CPEC Agri corridor sows seeds of economic growth

https://pakobserver.net/cpec-agri-corridor-sows-seeds-of-economic-growth/


As 2022 draws close, the agriculture sector has gained manifold tractions under China-Pakistan agriculture cooperation promising the phenomenal agri growth in the length and breadth of Pakistan, according to a report published by Gwadar Pro on Saturday.

Given the comprehensive spectrum of cooperation under “CPEC Green Corridor” throughout the year in 2022, the agriculture sector has recorded a remarkable growth of 4.4% and surpassed the target of 3.5% as well as last year’s growth of 3.48% during FY2022.

According to Economic Survey, the growth in the agriculture sector recorded 4.4% and surpassed the target of 3.5%.

This remarkable growth is mainly underpinned by China-led assistance to Pakistan of many facets relating transfer of hands-on experience in the fields of intercropping, high-yield seeds, pest control, hybrid cultivation, corporate farming, innovate irrigation technique, agri machinery training, agri research & development, protocol for Pak agri exports to China, digital farming and agri labor skills.

Since Sino-Pak agriculture has continued to deepen in 2022, Pakistan’s agricultural products exported to China from January to August 2022 reached $730 million with a year-on-year increase of 28.59%.

Pakistan’s agricultural exports to China are expected to exceed a record high of $1 billion next year.

On the back of 2022 agri sector’s milestone achievement, the focus of next year under CPEC Green Corridor will be continuing on improving land cultivation area, water management, better access to markets for inputs (seeds, fertilizers, farm mechanization, credit, water) and outputs, improved infrastructure including storage and cooling facilities, reduction in post-harvest losses, greater investment in research, development and extension, improved quality and fulfillment of quarantine requirements for international markets and competitiveness, greater diversification, especially minor but high-value crops, farm input and effectiveness of markets.

The announcement of three new corridors under CPEC including China-Pakistan Green Corridor (CPGC), which focuses on agricultural environment and food security speaks volumes about the significance of agricultural cooperation in CPEC.

The inauguration of the Intercropping Research Center jointly established by Sichuan Agricultural University (SAU) and the Islamia University of Bahawalpur (IUB) in 2021 showed fantastic results in the 2022 season.

According to a news report a few weeks ago, China’s maize-soybean strip intercropping technology completed harvest at 65 demonstration sites in Punjab, Sindh and Khyber Pakhtunkhwa recently, and the production of maize and soybeans reached 8,490 kg and 889 kg per hectare respectively in the intercropped fields.

Compared with the production of solely cropped maize and soybeans at these 65 sites which are 8,995 kg and 1,531 kg per hectare respectively, the intercropping technology definitely creates much more economic benefits.

Good news is that the researchers are also developing the strip intercropping systems of maize-peanut, maize-pea, sugarcane-soybean, sugarcane-mustard, wheat-mustard, wheat-soybean, wheat-chickpea, potato-maize and canola-pea.

Another healthy development in the agriculture sector happened in June, 2022 when a newly developed centre at Arid Agriculture University Rawalpindi (AAUR), the CPEC-Agriculture Cooperation Centre (ACC), announced to perform policy research, assist Chinese businesses in working in the agriculture sector, and foster institutional cooperation. Pakistan is also looking forward to enhance banana production with Chinese cooperation.
Riaz Haq said…
CPEC Agri corridor sows seeds of economic growth

https://pakobserver.net/cpec-agri-corridor-sows-seeds-of-economic-growth/


According to Nosherwan Haider, CEO of the Sprouts Biotech Laboratories, Pakistan contributes less than 0.5% to the global banana market whereas China contributes about 4.5%.

Cotton germplasm is another significant component in Pak-China agricultural cooperation. For many years, China and Pakistan have cooperated in the field of gathering and identifying cotton germplasm resources.

In order to determine which cotton germplasms are resistant to heat, drought, diseases, and insect pests in various locations and environments, Institute of Cotton Research (ICR) of the Chinese Academy of Agricultural Sciences (CAAS), collaborated with Cotton Research Institute (CRI), Multan, University of Agriculture Faisalabad (UAF), and some other universities and scientific research institutions.

During July, 2022, Tianjin Modern Vocational Technology College (TMVTC), China and MNS-University of Agriculture, Multan (MNSUAM), Pakistan signed an online agreement for an agricultural machinery training program of Luban Workshop in Pakistan.

The two institutions will jointly promote the sci-tech exchanges and cooperation on agricultural machinery, germplasm resources and agricultural environment.

Earlier this year, Zhang Jishu from Sichuan Litong Food Co., Ltd. announced that his company would implement a 1,000-acre pepper cultivation demonstration garden in Multan during the 2022-2023 growing season.

In partnership with local agribusinesses and farmers in Pakistan, it intends to take over 15,000 acres of pepper orders in South Punjab, with a planned harvest of 30,000 tonnes of dried pepper. Additionally, the company intends to construct two pepper processing plants in Lahore and Multan and is in the process of locating suitable sites.

Pakistan is also working to grow the sorghum crops as, along with the three main basic foods of the globe, sorghum is a crop that has increasingly gained acceptance around the world.

During the Symposium on Sorghum Industry Development of China and Pakistan organized during 2022, there was a consensus that, sorghum is a versatile crop that can be useful in supplying food and fodder.

Hybrid farming is growing in Pakistan in a variety of sectors, as the Executive Member of the Asia and Pacific Seed Association and General Manager of Wuhan Qingfa Hesheng Seed Company, Zhu Xiaobo said that the hybrid canola variety developed by her company has been planted in Pakistan on about 10,000 hectares of land, covering around 6000 households.

In the next three to five years, they expect it to expand to over 40,000 hectares and provide more and healthier edible oil to Pakistanis. Similarly Sino-Pak cooperation in cauliflower farming through hybrid seeds is also expanding.

As Pakistan faced one of the worst flood calamities in 2022, consequently loosing drastic crop yield, Wuhan-based hybrid seed developer and supplier China also announced to donate hybrid rice seeds to mitigate flood impact on agriculture and food security.

According to the Chairman of the Pakistan Agricultural Research Council (PARC), Dr. Ghulam Muhammad Ali, to raise the average productivity and output of Pakistan’s crops and to mitigate the harm caused by the floods, experts from Pakistan and China are developing hybrid wheat types.

To facilitate the swift development of agri-sector in the country, the Punjab cabinet approved the leasing out of state land for corporate farming as part of the CPEC initiative in the first week of March 2022.

The move, according to agriculturalists, would be a revolutionary one for Pakistan’s farming industry. Corporate farming describes the direct ownership or leasing of farmland by business organizations for the purpose of producing goods for their in-house processing needs or for the open market.
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…
SenatorSherryRehman
@sherryrehman
Good news for Pakistan! Our Recharge Pakistan project, which will be implemented over the next 7 years, has been approved today for funding of 77.8 M USD. These include GCF resources of 66 M USD and co-financing of around USD 11.8 M. This adaptation project aims to initiate ecosystem-based adaptation (EBA) interventions that will store flood water in wetlands, floodplains and depressions (green infrastructure) at several priority sites, build community resilience at these sites, and enable the Government of Pakistan, including all lead provinces and stakeholders to implement & replicate such nature-based solutions for climate resilience.

https://twitter.com/sherryrehman/status/1678625444176822275?s=20

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Funding of $77.8 million has been approved for Recharge Pakistan, a project that aims to build the country’s climate resilience and water security, Federal Minister for Climate Change Sherry Rehman announced on Tuesday.

https://www.brecorder.com/news/40252003/778mn-funding-secured-for-recharge-pakistan-project-sherry-rehman

“Good news for Pakistan! Our Recharge Pakistan project, which will be implemented over the next seven years, has been approved today for funding of $77.8mn,” said Rehman in a post on Twitter.

The minister highlighted that the funding includes $66 million from Green Climate Fund (GCF) resources and co-financing of around $11.8 million.

GCF was established in 2010 by 194 countries party to the UN Framework Convention on Climate Change. It is designed as an operating entity of the Convention’s financial mechanism and is headquartered in South Korea.

“This adaptation project aims to initiate ecosystem-based adaptation interventions that will store flood water in wetlands, floodplains and depressions (green infrastructure) at several priority sites,” said Rehman.

Recharge Pakistan is a joint collaboration by GCF, World Wildlife Fund (WWF) and the Government of Pakistan. As per information available on the WWF website, the project aims to build Pakistan’s climate resilience and water security through cost-effective ecosystem-based adaptation.

“The project will increase water storage and recharge through wetlands, floodplains, and hill-torrents management; promote climate-adapted community-based natural resource management and livelihoods; and forge a paradigm shift to scale up this approach,” read the website.

Last week, Rehman during a high-level meeting with a delegation led by Sultan Ahmed Al Jaber, President-designate of COP28 and UAE’s Minister of Industry and Advanced Technology, said a “critical gap” in resources for adaptation and mitigation has been identified by multilateral agencies -amounting to $348 billion or 10.7% of cumulative GDP by 2030.

Despite this, Pakistan is committed to a green energy transition, whereby it will transfer 60% of its energy needs to renewables by 2030 and reduce its projected emissions by 50% until 2030, Rehman said.

Pakistan is actively involved in transitioning the country towards the renewable energy sector and is seeking partnerships in the alternative and renewable energy sector, the minister added.
Riaz Haq said…
Country moving forward from wheat importer to self-sufficiency


https://www.cimmyt.org/news/country-moving-forward-from-wheat-importer-to-self-sufficiency/

Self-sufficiency in wheat production is now more attainable for Pakistan with the release of 31 wheat varieties since 2021.


Wheat is critical to millions of households in Pakistan as it serves a dual role as a foundational part of nutritional security and as an important part of the country’s economy. Pakistan’s goal to achieve self-sufficiency in wheat production is more attainable with the release of 31 wheat varieties since 2021.

These new seeds will help the country’s 9 million hectares of cultivated wheat fields become more productive, climate resilient, and disease resistant—a welcome development in a region where climate change scenarios threaten sustained wheat production.

The varieties, a selection of 30 bread wheat and 1 durum wheat, 26 of which developed from wheat germplasm provided by the International Maize and Wheat Improvement Center (CIMMYT) were selected after rigorous testing of international nurseries and field trials by partners across Pakistan. During this period, three bread wheat varieties were also developed from local breeding programs and two varieties (one each of durum and bread wheat) were also developed from the germplasm provided by the ICARDA. These efforts are moving Pakistan closer to its goal of improving food and nutrition security through wheat production, as outlined in the Pakistan Vision 2025 and Vision for Agriculture 2030.

Over multiple years and locations, the new varieties have exhibited a yield potential of 5-20% higher than current popular varieties for their respective regions and also feature excellent grain quality and attainable yields of over seven tons per hectare.

The new crop of varieties exhibit impressive resistance to leaf and yellow rusts, compatibility with wheat-rice and wheat-cotton farming systems, and resilience to stressors such as drought and heat.

Battling malnutrition

Malnutrition is rampant in Pakistan and the release of biofortified wheat varieties with higher zinc content will help mitigate its deleterious effects, especially among children and women. Akbar-2019, a biofortified variety released in 2019, is now cultivated on nearly 3.25 million hectares. Farmers like Akbar-2019 because of its 8-10% higher yields, rust resistance, and consumers report its good chapati (an unleavened flatbread) quality.

“It is gratifying seeing these new varieties resulting from collaborative projects between Pakistani wheat breeding programs and CIMMYT along with funding support from various donors (USAID, Bill & Melinda Gates Foundation, and FCDO) and the government of Pakistan,” said Ravi Singh, wheat expert and senior advisor.

Closing the yield gap between research fields and smallholder fields

Releasing a new variety is only the first step in changing the course of Pakistan’s wheat crop. The next step is delivering these new, quality seeds to markets quickly so farmers can realize the benefits as soon as possible.

Increasing evidence suggests the public sector cannot disseminate enough seeds alone; new policies must create an attractive environment for private sector partners and entrepreneurs.

“Pakistan has developed a fast-track seed multiplication program which engages both public and private sectors so the new varieties can be provided to seed companies for multiplication and provided to farmers in the shortest time,” said Javed Ahmad, Wheat Research Institute chief scientist.

Strengthening and diversifying seed production of newly released varieties can be done by decentralizing seed marketing and distribution systems and engaging both public and private sector actors. Marketing and training efforts need to be improved for women, who are mostly responsible for household level seed production and seed care.
Riaz Haq said…
The alliance between Pakistan and China in the field of agriculture has emerged as a powerful force driving economic growth, sustainable development, and food security in both nations.

https://dailytimes.com.pk/1109673/agriculture-emerges-as-a-powerful-force-for-economic-growth-under-cpec/


The strategic collaboration between these two neighboring countries, under the framework of the China-Pakistan Economic Corridor (CPEC), has witnessed significant advancements in recent years, transforming the agricultural landscape of Pakistan, according to a report carried by Gwadar Pro on Monday. Through joint initiatives, technological exchanges, and investment in key sectors, the bilateral partnership has not only addressed Pakistan’s domestic agricultural challenges but has also paved the way for future prosperity and self-sufficiency.

The agricultural cooperation between Pakistan and China has witnessed remarkable developments, particularly in the cultivation of high-value crops and the introduction of advanced farming technologies. The collaboration between Chinese and Pakistani companies in producing Chinese hybrid canola and edible oil has significantly reduced Pakistan’s dependence on imported cooking oil, meeting the country’s domestic demand while bolstering its foreign exchange reserves.


The success of chili cultivation in South Punjab, Sindh and other provinces has opened new avenues for export to China, with substantial growth in agricultural exports expected in the coming years. The establishment of the CPEC-Agriculture Cooperation Centre (ACC) and the signing of agreements between educational institutions for agricultural training programs further demonstrate the commitment of both nations to fostering long-term cooperation in the agricultural sector.

With the establishment of the China-Pakistan Green Corridor (CPGC) under CPEC, the focus on agricultural environment and food security has taken center stage. The utilization of advanced agricultural technologies, such as maize-soybean strip intercropping, has demonstrated economic benefits by increasing crop yields and improving resource efficiency. The agricultural cooperation between Pakistan and China has yielded remarkable results. In 2022 alone, Pakistan’s agricultural sector experienced a commendable growth rate of 4.4%, surpassing both the set target of 3.5% and the previous year’s growth of 3.48%.


Riaz Haq said…
The alliance between Pakistan and China in the field of agriculture has emerged as a powerful force driving economic growth, sustainable development, and food security in both nations.

https://dailytimes.com.pk/1109673/agriculture-emerges-as-a-powerful-force-for-economic-growth-under-cpec/


This achievement is a testament to the effectiveness of the initiatives implemented under CPEC and the Green Corridor in particular. The surge in agricultural exports to China reflects a staggering year-on-year increase. With expectations of agricultural exports surpassing a record high in 2023, it is evident that the agricultural cooperation between these two nations has bolstered trade relations and presented new opportunities for Pakistan to establish itself as a key player in the global agricultural market.


In addition to the impressive growth rates and increased agricultural exports, there are other significant numbers that underscore the impact of the agricultural cooperation between Pakistan and China. One noteworthy aspect is the cultivation of dried chilli, which has witnessed substantial progress. This not only signifies the expansion of chilli cultivation in Pakistan but also highlights the potential for exporting this sought-after commodity to China.

The successful implementation of the maize-soybean strip intercropping technology at 65 demonstration sites in Punjab, Sindh, and Khyber-Pakhtunkhwa has yielded impressive results. The intercropped fields have achieved maize and soybean production of 8,490 kg and 889 kg per hectare, respectively, surpassing the yields of solely cropped maize and soybeans. This innovative technique demonstrates the effectiveness of knowledge and technology transfer from China to Pakistan, resulting in increased productivity and economic benefits for farmers.

Many agro-based innovative Chinese companies involved in production and support for bee farming, honey production, sorghum, sesame and peanuts in various regions of Pakistan has made substantial contribution in diversifying these corps and their production. The ongoing efforts to strengthen ties reflect a long-term commitment to advancing agricultural practices, technology transfer, and market access. As the collaboration deepens, it is essential to prioritize sustainable farming practices, resource management, and the adoption of modern technologies to ensure long-term productivity and environmental conservation. By fostering innovation, knowledge exchange, and market diversification, the agricultural sector in Pakistan is poised to become a driver of economic growth, food security, and rural development, while further cementing the bilateral ties between Pakistan and China.
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.

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