Interventions and Results in Agriculture ExportsPresented by: Babar Malik, Senior Specialist – Marketing,

USAID Firms Project, Cell: 0344-4487959

Topics covered

• Nature’s gifts to Pakistan (An overview of Ag. sectors)• USAID priorities in agriculture sector• Market responsive agriculture strategies and plans• Results for USAID interventions• International trade potential

NATURE’S GIFTS TO PAKISTANAn Overview of Agriculture Sector

Fruits and Vegetables

Major fruits are Citrus, Mango, Dates, Apple, Guava, Grapes, Banana and Apricot. Major vegetables are Potato, Onion, Chili, Tomato, Turnip, Carrot, Cauliflower, Peas and Gourds. Annually, 11 million MT of fruits and vegetables are harvested, cultivated at 1.1 million hectares of fertile land.

Production factsPakistan produces:

- 2.0 million MT of Citrus- 1.9 million MT of Mango - 0.5 million MT of Apple- 0.5 million MT of Guava- 3.5 million MT of Potato- 0.5 million MT of Tomato

Value addedFruits and vegetables are generally purchased as fresh by households, food stalls and restaurants. Some fruits and vegetables are used to produce pulp, paste and concentrate for industrial use. A very little volume is being canned for local consumption and exports

Fruits and Vegetables

Export potential:

• Pakistan has a large supply base with potential to increase per acre yield• Pakistan is leading producer for Citrus, Mango, Dates, Banana etc.• Pakistan has experienced ‘big’ success in exports of fresh Mango and Citrus• These are high value crops with high return per unit in export• There is huge potential for value addition through processing and packaging• There is 15% growth in international trade of processed, value added horticulture

The sector has a high impact in the local economy,along with a high growth potential through value addition and exports

Livestock, Poultry and Fish

Livestock constitute of Cattle, Buffalo, Sheep, Goat, Poultry and Fish. There are 67 million bovine animals, 89 million sheep & goats, and 663 million poultry birds in Pakistan. Fish is being farmed at 60,500 hectares along with huge potential for growth in fresh water and marine fishing

Production factsPakistan produces:

- 1.7 million MT of Beef- 0.6 million MT of Mutton- 0.8 million MT of Chicken- 0.7 million MT of Fish Meat- 37 million MT of Milk- 13 billion Eggs- 62 million Hides and Skins

Value addedProduce from livestock sector are generally purchased as fresh by domestic buyers. A small volume of meat is being processed for local consumption and exports. Leather and milk processing are more organized segments of the livestock value chain

Livestock, Poultry and Fish

Export potential:

• Pakistan has a large supply base that exceed the local demand for livestock produce• There is a large potential in export of hygienic and ‘Hilal’ certified meat• Pakistan has potential to produce and export over 1 million MT of fish meat each year• There is huge potential for export lead value addition, creation of new jobs and

reduction in poverty

The sector has high impact in the local economy,along with a high growth potential through value addition and exports

USAID PRIORITIES IN AGRICULTURE SECTOR

Basis for USAID Sector Priorities

• Strong supply base to ensure ‘right’ quality and volumes are available• Demand and market opportunities available locally and in international trading• Macro environment factors including:

– Availability of existing and opportunities in developing required infrastructure– Existing policy and regularity environment and opportunities to reform – Security situation in regions and clusters– Availability of skilled labor and opportunities in skills development– Willingness of stakeholders to participate and share the cost

• Economic impact including potential to increase employment and income

Developing Market Responsive Sector Strategies and Plans

• Product and service parameters demanded by international buyers are assessed• Demand parameters are obtained through direct inquiry with the buyers and by

engaging the subject experts• Gaps between market demand and locally available produce are mapped• Willing value chain partners are identified and engaged to agree on program

objectives• Private sector lead sector strategies to align local agriculture produce to the

buyers’ requirements are developed• Strategies are translated into practical implementation plans / programs• Resources are mobilized and programs are executed• Performance is evaluated regularly to adjust strategies and plans

Development Model

• Technical assistance: Improve cost competitiveness and profitability

• Technology upgrade: Meet quality requirements of local and international buyers

• Quality certifications: Improve product quality and access to markets

• Workforce skills development: Create employment, increased productivity and job retention

• Business linkages: Sustainable linkages between lower and upper ends of a value chain

• Marketing assistance: Enter new markets and increase penetration in the existing markets for sales and revenue generation

1.Improvement in

manufacturing techniques

2.Improvement in

technology

3.Quality and standardizati

on

4.Marketing and linkages

5.Increase in profits

Linking Pakistan to International Markets

USAID assistance in export marketing

• Identify marketing opportunities and high potential buyer segments• Help develop market entry, growth strategies and plans• Capacity building of Pakistani companies in export marketing or “export

readiness”• Support Pakistani companies in developing websites, marketing material etc.• Participate in industry relevant trade fairs• Develop buyers databases• Contact buyers for sales promotions• Arrange and facilitate in meetings with the overseas buyers• Assist in sampling, trial and commercial shipments

USAID Interventions

USAID Firms Project - Fresh Fruits and Vegetables

Mango: Assistance is being provided in orchard management, GlobalGAP certification, on-farm processing technology, setup of HACCP certified pack houses and market linkage with EU buyers

Date: Assistance is being provided in orchard management, provision of tools, setup of processing facilities and marketing linkages with international buyers

Peach: Assistance in being provided in orchard management, provision of tools and identification of export marketing opportunities

USAID Interventions

USAID Firms Project – Value Added

Pulp / Puree Processing: Assistance is being provided in technology upgrade, HACCP certification, process development, productivity improvement, marketing for local sales and export

Dried Mango: Assistance is being provided in technology upgrade, HACCP certification, process development, product development, marketing for local sales and identification of international marketing opportunities

USAID Interventions

USAID Agri Business Project – Vegetables

Off-Season Vegetables: Provision of high quality seeds, packing material, tools, tunnel structures, processing technology, skills development and market linkage

Chilies: Assistance in harvesting techniques, value addition, obtaining certifications, marketing linkages with buyers and exporters

USAID Interventions

USAID Agri Business Project – Fruits

Apricot: Assistance in introducing improved varieties and value addition of existing produce mainly through dehydration techniques, certification and market development.

Citrus: Assistance in orchard management, technology and workforce skill development to improve quality as per global standards

Banana: Assistance in orchards management, packaging, establishment of ripening chambers and pack houses

USAID Interventions

USAID Agri Business Project – Meat

Meat: Assistance in development of meat value chain with interventions in livestock management, certifications and cold chain infrastructure development are planned

USAID Interventions

USDA CABI Project – Enabling Agriculture Export

• The US Department of Agriculture (USDA) is working with CABI and Texas A & M University to develop and run training courses on the “Principles for Developing a Model Agriculture Import/Export System”

• Sanitary and Phyto-Sanitary (SPS) measures are becoming increasingly important in global trading of agriculture produce

• USDA CABI Project facilitate capacity building efforts in Pakistan’s animal and plant health regulatory systems, including SPS issues

• It is increasing the SPS capacity of Pakistan’s regulatory and scientific officials

• It is supporting in national agricultural production and trade objectives

RESULTS

Results

Agriculture value-chains

• Over USD 63 million is generated in sales revenue• USD 20 million is generated through exports• Over 8,500 new job are created • Over USD 5 million is mobilized in private sector investment

The new numbers are coming in as we speak

INTERNATIONAL TRADE POTENTIALAn Overview of Agriculture Sector

Opportunities in Agriculture Exports

Mango: • Global trade has reached USD 510 million with 8% annual growth• Pakistan export mango worth USD 44 million with 18% annual growth• Key markets are Middle East and Europe• European countries and US are important for growth in export of mango

Citrus: • USD 12 billion worth of citrus is traded globally, with annual growth of 5%• Pakistan citrus export has reached USD 155 million• Russia and Afghanistan are the largest buyers of citrus exported from Pakistan• Some citrus is also being export to Middle East from Pakistan• US, EU and China are the large importer for citrus, offering potential for growth in export of Pakistani

citrus

Peach:• Every year USD 2.4 billion worth of peach is traded globally• Pakistan export peach to Afghanistan in low volumes • Middle Eastern countries and Russia are high potential markets for exports of peach from Pakistan

Opportunities in Agriculture Exports

Date: • Total world trade has reached USD 742 million, growing at 8% per annum• Pakistan is exporting USD 81 million worth of Dates with 18% annual growth• Over 80% of Dates are exported in dried form to India• US and European countries are high potential markets to achieve growth

Apricot:• World trade of Apricot has reached USD 461 million, growing at 5% per annum• Pakistan export around half a million worth of Apricot to buyers in ME and EU• Greater market penetration in the existing markets can help increase exports

Banana:• Total banana trade has reached USD 13 billion• Pakistan export banana to Afghanistan• Pakistan can consider leading importers like US, Belgium, Germany, Japan and UK to increase export of

Banana

Opportunities in Agriculture Exports

Global trade of vegetables:All vegetables combined USD 18.3 billion

Fresh or chilled Tomatoes USD 8.3 billionOnions, garlic and leeks, fresh or chilled USD 4.7 billionPotatoes USD 3.7 billionCabbages and cauliflowers, fresh or chilled USD 2.4 billionCucumbers and gherkins, fresh or chilled USD 2.2 billionCarrots, turnips and salad beetroot, fresh or chilled USD 1.7 billion

Value addedFrozen vegetables USD 6.1 billionDried vegetables USD 2.4 billionVegetables, provisionally preserved USD 0.6 billion

Opportunities in Agriculture Exports

Global trade of vegetables:

• US, Germany, UK, France and Japan are the top 5 importers of vegetables• Pakistan export for vegetables has reached USD 188 million• It has grown at 42% between 2008 and 2012• The major importers of Pakistani vegetables are Afghanistan, Sri Lanka, UAE, Malaysia,

Russia and China• The vegetables exported from Pakistan include Potatoes, Onion, Garlic, Tomato, Carrot and

Cabbages• The value added exports include frozen and dried vegetables• There is high potential for growth in export of fresh and processed vegetables to high

value markets

Opportunities in Agriculture Exports`

Meat: • Total world trade of Beef is 39 billion, Mutton is 6 billion and poultry is 26 billion• Leading importers are Japan, Germany, Russia, Italy, US, UK and France• Pakistan’s total export is USD 209 million • There was a growth in export of 37% between 2008 and 2012• Most of the meat is going to Middle Eastern countries and Afghanistan• The growth can be achieved through increasing the customer base and targeting high

value markets

Fish:• Total world market of USD 17 billion• Leading buyers are Japan, US, China and countries in Europe• Pakistan export fish meat worth USD 292 million• The importing countries are Vietnam, China, Thailand, UAE and Saudi Arabia

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