agro livestock enterpreneurship for rural youth

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  • 1. Akram Khalid Green Growth Pakistan Creating Agro Livestock Entrepreneurship Opportunities for Rural Youth Presentation made on the occasion of Kissan Mela (Farmers Fair) at Expo Centre Lahore (30 Dec 2013)

2. Introduction Agricultural Profile Why Agriculture is not Attracting Youth Understanding Rural Youth Remodeling Agriculture Agribusiness Opportunities for Rural Youth Conclusion International Agribusiness Models Contents 3. Introduction Pakistan with a population of 180 million is the sixth most populous country in the world and will be fifth largest one by 2050 @1.6% growth rate Dramatic social changes have led to rapid urbanization and the emergence of mega cities making Pakistan as the second-most urbanized nation in South Asia These two demographic changes-population growth and urbanization, have resulted in two developments- bulging youth and sprawling towns/cities PopulationofPakistan(Urban&Rural) Urban 37%Rural 63% 4. Slow economic growth & lack of resources to provide social safety nets are creating frustration and despondency in youth in the backdrop of policy vacuum & inadequate governmental measures to tackle the situation These are very ominous trends as huge number of unemployed youth in the fifth/sixth most populous country is not only waste of human resources but a potential threat for the security and stability of the country There is thus need for new models to enhance decent employment and livelihood in agriculture sector including support to employment opportunities along the entire agrifood market chain and the associated service sectors Introduction 5. Agriculture is the backbone of Pakistan's economy as it contributes over 21% to its GDP, employs 45 % of its total work force and earns more than 60 % of its exports earning Besides providing backward and forward linkages, it helps in containing inflation, reducing poverty, ensuring food security and supplies raw material for its major industries Over time, it has also become the main integrating force of the country as the economic structures of all provinces and regions are now interdependent upon one another due to agriculture However despite the above importance of agriculture in the political economy of Pakistan, it has not got the social Overview Trendof PopulationGrowth(Urban& Rural) 0 10 20 30 40 50 60 70 80 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Percent Urban Rural 6. Urban & Rural Population ( Pakistan) 0 20 40 60 80 100 120 140 Urban Rural Millions 2008 2009 2010 2011 2012 2013 Urban & Rural Population Growth rate- Pakistan 64.7 35.3 64.2 35.8 63.7 36.3 63.1 36.9 62.6 37.4 62.1 37.9 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 Urban Rural Percent 2008 2009 2010 2011 2012 2013 7. Agricultural Profile Eighty six percent agriculture farms are below 5 hectares with average farm size of 3.1 hectares making it difficult for families to survive Agriculture sector is vulnerable due to lack of proper infrastructure, storage and value addition Cultivable agricultural land has reduced due to development of housing colonies on prime agricultural land Pakistan is losing 40,000 acres of agricultural land every year due to degradation owing to salinity problem EmploymentByIndustry-Pakistan2010-11(Percent) 45% 14% 7% 16% 5% 11% 2% Agriculture Manufacturing Construction Trade Transport / Communication Community Service Others 8. Agricultural Profile Overcrowding on agricultural land, diminishing farm produce have resulted in migration of farm worker in large numbers to the urban areas The prospects of rural youth finding decent work is limited The opportunities for work outside agriculture make the situation for young rural people particularly uncertain There is negligible level of policy and investment intervention that focuses explicitly on rural youth and on youth employment opportunities in the agriculture and agribusiness sectors Bank Lending bySector 58.4 10.0 8.8 8.8 4.0 3.3 2.0 4.8 0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 ManfgW ater/Power Trade AgriRealestate Transport Constr Others Percent 9. Even young agriculture university graduates do not wish to work in the field; they prefer to work in offices in urban areas Agriculture is not Attractive ? Year Agriculture Veterinary Total 2001-02 10280 0 10280 2002-03 9840 586 10426 2003-04 8981 659 9640 2004-05 13036 690 13726 2005-06 8383 766 9149 2006-07 11260 1610 12870 2007-08 13140 1986 15126 2008-09 16505 3999 20504 2009-10 15465 4874 20339 2010-11 17133 2975 20108 Punjab Specific Statistics 10. Agriculture is not attractive ? Farming is a difficult life and offers no attraction to the youth It is considered high risk as it is dependent on rainfall and has marginal returns Farmer is considered to be less important, low income, low societal standing, hard work with no dignity Young people see their parents struggling with meager resources, which is demotivating Even if young people wanted to go into farming, they are discouraged by the family 11. Understanding Rural Youth The aspirations of youth are not compatible with the opportunities available to them in farming sector Aspirations are not just about economic opportunity - status is important; agriculture is unappealing to young people because it does not bring status regardless of economic outcomes. Higher poverty rates and lower socio- economic status in rural communities negatively impact on the aspiration levels of young people. 12. Understanding Rural Youth Urban economy provides no attraction to rural youth even if alternate employment is low paid Farming is being regarded as not a livelihood, but is a way to survive ... where there is no other option for many Many do not even own the land - they toil the land- just for survival There is large-scale migration out of farming 13. Strengths of Rural Youth More educated than their elders More knowledgeable due to internet and electronic media Much more enterprising Looking for a change in lifestyle Willing to work hard A huge human capital available to be utilized in the best interest of the country 14. Need to Remodel Agriculture The way agriculture is packaged for youth is not appealing and is not an occupation of choice Agriculture needs to be demystified it needs to be made more appealing and technology driven Agriculture needs to develop a renewed profile - as a viable and innovative, modern sector that can offer decent work and can be attractive to youth Young people are never praised in media for being farmers. Farming does not enjoy a favorable image in the media compared to other professions 15. Need to Remodel Agriculture There is a need for a coherent approach and indeed a raised profile for farming - family agriculture needs to be re-motivated and dignified Small-scale farming is not an option preferred by the young. farming is increasingly the occupation of older people and in particular older women Young people aspire to leave agriculture as there are no/few incentives to engage in farming other than the lack of alternative opportunities Youth will go into agriculture when it offers real business opportunities 16. Remodeling Available Opportunities Government should come forward with a comprehensive agricultural policy with incentives, opportunities and facilities to engage rural youth in agricultural activities. This policy framework should provide guidelines for legal framework, institutional mechanism, and clear roles of private and public sector respectively to actively engage the rural youth in agricultural and non-farm rural activities There are three broad areas of rural economy in which rural youth can be gainfully employed-farming including livestock, inputs provision and processing Skill formation, technical support, banking finance and markets linkage should be the four pillars of any plan of action to attract rural youth to agriculture/agribusiness 17. Private sector, research institutes, civil society organizations and donors should come forward to support development of a plan to support rural youth build their own agribusinesses Private sector can play a key role in support of new business models that enable the expansion of rural and urban jobs and provide information on skills gaps and labour market needs, as well as offer direct support to capacity development Private sector should develop a network of small meat, milk, poultry and fisheries units for youth in the form of groups and clusters in rural areas to integrate with their own requirements Remodeling Available Opportunities These units should be a source of raw material for relevant industry also providing reasonable compensation to these units 18. Remodeling Available Opportunities SMEDA should be asked to establish dedicated facilitation centers for rural youth Technical & vocational training institutes should train the youth in relevant fields Banks should be asked to offer loans to rural youth under a scheme against partial credit guarantee and partial mark-up takeover by government Government should negotiate with donors such as USAID to integrate their existing matching grant into such business models Local Civil Society Organizations should actively participated in these efforts 19. Some On-Farm Agribusinesses Feedlot fattening farms (For group of 10 youths) Dairy farms (For group of 10 youths) Poultry farms (organic meat and eggs) Fish farming Milk collection Centers On-farm vegetable pack house (For group of 10 youths) Honey bee keeping 20. Some Non-Farm Agribusinesses Collection & marketing of farm products (For group of 10 youth) Farm machinery rental centers (For group of 10 youths) Small cold stores (For group of 10 youths) Warehouses for grain storage Small value addition units for jams, pickles etc., and their marketing Small butter and yogurt making and marketing 2