Here's a Devex report on US support for agribusiness development in Pakistan:

A new project by the United States Agency for International Developmentand the Agribusiness Support Fund — a locally registered development organization in Pakistan — aims to boost the country’s agricultural sector.

The Agribusiness Project worth $90 million is expected to increase the competitiveness and productivity of the country’s horticulture and livestock subsectors, which generate the largest share of revenues worldwide.

The project, which will span five years, will help improve productivity and product quality through technical assistance programs meant for 62,500 farmers and 2,500 agribusiness stakeholders, and create 1.3 million jobs. It will also leverage $320 million by the private sector through cost-sharing support to 45,000 Farmer Enterprise Group members, 100 associations and cooperatives, 250 individual and corporate farmers, 40 extension providers, 140 small and medium enterprises, and eight companies.

http://www.devex.com/en/news/blogs/90m-usaid-agribusiness-project-i...

Here's an ET report on Pakistani PM's "valuing US as a major development partner":

Prime Minister Raja Pervaiz Ashraf on Saturday said that Pakistan regarded its relations with the United States as “very important” and that Pakistan valued it as a major development partner.

Ashraf’s remarks came after he held talks with US special envoy to Afghanistan and Pakistan Marc Grossman, who arrived in the Pakistani capital on Friday for talks with top officials.

“The prime minister said that relations between Pakistan and the United States are very important and we value the United States as a major development partner,” a statement issued by Ashraf’s office said.

“We have a shared objective in fighting terrorism and need to cooperate more to get rid of this menace,” the statement said.

Ambassador Grossman said that future relations between Pakistan and the United States should be based on market access and trade.

The US government was working on a bilateral investment treaty to “facilitate” US investment in Pakistan and improve market access, according to the Pakistani statement.

It said that the United States has promised $200 million for the construction of Diamer-Basha dam in northern Pakistan.

Ties between Islamabad and Washington have been rocky for years, and have only just resumed after nosediving following the secret raid that killed Osama bin Laden and an air raid that accidentally killed 24 Pakistani troops.

Washington considers Pakistan’s semi-autonomous northwestern tribal belt as the main hub of Taliban and al Qaeda militants plotting attacks on the West and in Afghanistan.

http://tribune.com.pk/story/437202/pakistan-sees-us-as-major-develo...

Here's an interesting Washington Post story on pink salt spa in Pakistan:

ISLAMABAD — You are going to have to take Pakistan’s newest health fad with a grain of salt. Actually, several tons of it.

A newly opened spa in the capital touts amazing curative powers for a mineral better known as a table seasoning. In fact, the spa’s chief executive, Sabkahat Qadeer Butt, is so convinced of its medicinal magic that he’s created the entire facility from salt.

And not just any salt, but pink salt mined from the foothills of the Himalayas.

Nearly everything in the cave-like space is carved from the rose-hued crystal -- from the bricks in the walls to the tiles of the steam bath, it is all hewn from slabs of salt. Patrons leave their shoes at the door. Even the pink pebbles of the floor are all rock salt, which is absorbed through the skin.

Pakistan is the number one producer of pink rock salt in the world, according to the government’s Ministry of Petroleum and Natural Resources. Butt, the Pakistani businessman who is CEO of the Khaas Health Care and Cure Club in Islamabad, says he used 1,400 tons of the substance to create the spa in the city’s Diplomatic Enclave.
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Butt, 48, said salt baths originated as an old Greek method of treatment. Alexander the Great took loads of the stuff back home after conquering parts of modern-day Pakistan, he said. Salt became known as white gold and was even used as currency: “The Greeks would pay their armies in salt. It was the major component of the barter system.”

Some of the historical uses of salt are widely known. It is a natural antiseptic, proponents say, and a natural preservative. Salt has been used to preserve everything from meat and fish to sensitive documents.

But new-age spas like the one in Islamabad tout salt therapy as a veritable cure-all. Pink rock salt contains 84 minerals and can help skin ailments, upper and lower respiratory functions and, when combined with heat, can be used for pain management, Butt said.

In Hollywood, salt wraps and baths are used for quick weight loss when stars need to slim down for roles or to walk the red carpet. “It is also good for high blood pressure,” Butt claimed.

And low blood pressure? Yes, that too. In fact, Butt declared, salt can treat 125 disorders and diseases.

Qutbuddin Kakar, an Islamabad-based doctor who specializes in tropical diseases and is associated with the World Health Organization, said he has heard of people taking salt baths as a cure for skin maladies. But otherwise, he said, “There has been no scientific evidence which shows or proves that pink salt is a cure for so many or all diseases.”

While blanket curative claims are dubious, that hasn’t kept some fad followers from developing an appetite for the blush-tinted condiment. Ordinary table salt costs about 3 cents an ounce in U.S. grocery stores, whereas the pink stuff can fetch $1 an ounce.

There is one catch: Salt disintegrates when exposed to water and steam. So what happens when the spa melts? Not a problem, said Butt. He also owns a salt mine. “If the walls dissolve, I can replace them.”

http://www.washingtonpost.com/world/asia_pacific/in-pakistan-a-pink...

Here's a PakTribune story on buffalo semen production in Pakistan:

Vice-Chancellor, University of Veterinary and Animal Sciences (UVAS) Prof Dr Talat Naseer Pasha said that despite lack of a proper mechanism of semen prodcution in the country and around 3.5 million poor semen doses, Pakistan has the best buffalo breed producing 67 percent milk from them.

Talking to APP on Sunday, he said the private sector was producing 3.5 million semen doses against the government's 2.5 million doses. He deplored that it was very alarming that the quality of bulls being used for semen collection was inferior as the private sector was just doing business without covering the aspect of animal genetics.

Whereas the public sector dose after a sample check of around 5,000 doses in the quality lab, it is commercialised. If we provide quality semen to small farmers on their doorsteps it will bring a revolutionary change in the fast growing livestock sector, he added. He said Pakistan had the best buffalo breed in the world and 67 per cent milk was being produced from elite dairy animals. But, he said, there was lack of awareness about the selection of best bulls for breed improvement and absence of progeny testing which was causing low productivity of dairy animals. The VC also highligted major constraints in the livestock sector including lack of genetic improvement, poor nutrition, health constraints, unorganized marketing and lack of human resource at various levels.

Steps to overcome these constraints are vital to upgrade the livstock sector in the country, he added.

http://paktribune.com/business/news/Pakistan-has-best-buffalo-breed...

Here's a Businessweek story of Pakistan's rising rice exports:

Rice exports from Pakistan, the fourth-largest shipper, are set to rebound from November with the new harvest after a rally in domestic prices and cheaper supplies from India cut shipments, a traders’ group said.

Overseas sales may reach 4 million metric tons in the year that began on July 1 as increased supplies from the new crop cool local prices, said Safder Hussain Mehkri, vice chairman of the Rice Exporters Association of Pakistan. Exports slumped 46 percent to 238,659 tons in the July-August period, according to Pakistan Bureau of Statistics. Shipments were 3.7 million tons in 2011-2012, according to the association.

Rice, staple for half the world, is poised for a second monthly decline as Thailand and India, the world’s biggest exporters, accelerated sales. Futures are little changed this year, lagging behind corn, wheat and soybeans, as global rice harvests are set for a record.

“New harvest will bring down the prices which are way too high at the moment, making us less competitive in the global market,” Mehkri said by phone from Karachi. “Our rice is 10-15 percent costlier than India’s. Better domestic prices will improve our competitiveness against India.”

Non-basmati rice from Pakistan was sold at about $451 a ton free-on-board in July and August, while it was $385 a ton in India, according to data from the exporters’ associations in both the countries. Rough rice for November delivery was little changed at $14.90 per 100 pounds on the Chicago Board of Trade at 6:48 p.m. in Singapore yesterday. Futures have lost 2.5 percent this month.
Indian Exports

India will export 8 million tons in 2011-2012, making it the top shipper ahead of Vietnam and Thailand, the U.S. Department of Agriculture data show. In 2012-2013 India’s shipments would drop to 7 million tons, compared with Thailand’s 8 million tons and Vietnam’s 7 million tons, the USDA estimates. Pakistan’s exports in 2012-2013 will reach 4 million tons, according to the agency.

Shipments from Pakistan were also hurt by international trade sanctions on Iran, which made payments between traders in the two countries difficult, Mehkri said. The rice harvest this year may surpass the 6 million tons in 2011-2012, he said.

http://www.businessweek.com/news/2012-09-26/pakistan-s-rice-sales-s...

Here's Express Tribune on growing food market in Pakistan:

Pakistan is a huge and growing market for food. In big cities like Karachi and Lahore, restaurants of all types and sizes are jam-packed during opening hours. Looking at the restaurant business, it appears that very little, including economic uncertainty, has adversely affected food consumption. The popular media has also picked up on this culinary zeitgeist and almost all the TV channels in the country have programmes on cooking and other aspects of food.

For some years a number of ‘food streets’ have sprouted up in different cities, most notably Karachi, Lahore and Islamabad. In terms of growth potential and expansion, Lahore offers exciting opportunities. The area that stands in the shadow of the historical Badshahi Mosque is a great example of regeneration that the government of Punjab successfully undertook. Such regeneration projects in different parts of the country are not only developing a culture of sophisticated culinary habits, but are also creating sustainable employment opportunities for many.

Other newly-established food streets and similar developments include Sea View restaurants and Port Grand Food Street.

Creating business opportunities around the consumption of food is arguably the foundation of a sustainable economy, especially in a country the size of Pakistan. There are numerous examples of successful global food businesses that have contributed immensely to the economies of their respective countries of origins. McDonald’s is perhaps the best example of such a success story, with gross revenues of over $34.17 billion (2012 figures). In terms of financials, McDonald’s is bigger than Latvia, as the latter’s GDP of $26.14 billion (2011 figures) was smaller than McDonald’s annual revenue for the same year ($27 billion). Although Subway is the largest restaurant chain in the world in terms of the number of restaurants (37,000 outlets), McDonald’s remains the largest in terms of total revenue.

http://tribune.com.pk/story/444750/culinary-zeitgeist-the-food-busi...

Here's Economic Times' report on Pakistan sugar exports:

NEW DELHI/MUMBAI: Pakistan has allowed the export of an extra 200,000 tonnes of sugar, on top of the 300,000 tonnes already allowed, as the government aims to trim surplus stocks and bolster local prices.

Higher stocks and expectations of robust output next year encouraged the Islamabad government to allow the export of the additional sugar, Ali Raza Bashir, spokesman for the Finance Ministry, said, though the permission was for less than had been sought.

"There was a request to allow (extra) exports of 400,000 tonnes but the cabinet gave its permission for 200,000," Shunaid Qureshi, chairman of the Pakistan Sugar Mills Association, said by telephone.

The move came as neighbour India sealed deals to import about 5,000 tonnes of white sugar, despite expectations of a domestic surplus, as some traders seek to capitalise on lower prices in Pakistan and higher prices in India.

In Pakistan, sugar output in the crop year starting Oct. 1 is likely to remain steady at last year's level of around 4.7 million tonnes, Qureshi said.

The country's sugar consumption is between 4 million tonnes and 4.2 million and it started the 2012/13 year with around 400,000 tonnes of stock, said a dealer in Karachi who declined to be named.

Most sugar so far has gone to Afghanistan, Saudi Arabia and east Africa.

"These countries will again show interest due to lower prices. Millers in Pakistan want cash to start the crushing season ... They can give discounts to world prices," the dealer said.

INDIA BUYS WHITES

A New Delhi-based trader, who did not wish to be named, said: "The (Indian) traders who have contracted imports from Pakistan perhaps found the FOB price of $545 per tonne attractive enough to buy.

"They stand to gain $15 to $20 a tonne after paying a duty of 10 percent," the trader added.

The sugar price in western India is around $680 per tonne, while in northern and eastern parts of the country it is as high as $720.

India, the world's top consumer and the biggest producer behind Brazil, has been an exporter for the past two years. Exports in the year to September 2012 totalled 3.3 million tonnes.

Traders in India, which levies a 10 percent tax on sugar imports, have booked whites from Pakistan for delivery at the eastern Haldia port, a second Indian trader said.

India is expected to have a small exportable surplus in 2012/13, though higher production costs could make it difficult to find buyers at prices acceptable to mills.

Last month, Indian mills signed deals to buy up to 450,000 tonnes of Brazilian raw sugar because of the attractive gap between domestic and overseas prices.

The strengthening Indian rupee and a wide gap between Indian and Pakistani prices made these deals attractive, said a Mumbai-based trader with a global trading firm.

India could buy more for delivery in October and November to meet higher festival demand, traders said.

http://economictimes.indiatimes.com/news/economy/foreign-trade/paki...

Here's a PakistanToday report on US AID training Pak youth in dairy management:

United States Agency for International Development (USAID) Mission Director for Punjab Jeff Bakken on Friday awarded graduation certificates to 22 trainees who successfully completed a one-month farm manager training program under USAID Dairy Project. This innovative management training teaches Punjabi youth pursuing a career in dairy farm management to enhance milk production and increase their incomes.
Mr Bakken emphasized U.S. support for improving livelihood for rural communities in the Punjab and Pakistan. He remarked, “today’s event highlights the importance that the United States places on deepening the impact of development assistance to the people of Pakistan and improving the lives of those in rural communities. Your dedication is critical to pave the way for long-term economic gains in the dairy sector.”
Dairy Project Director Jack Moser also congratulated the graduates. “We celebrate the success of farm managers who will make a difference in the livestock sector by offering their services to the commercial dairy farm enterprises in the Punjab. The USAID Dairy Project will continue to mobilize and support farmers in the Punjab by training 400 individuals in dairy farm management,” he said.
USAID’s three-year, $14 million Dairy Project is designed to impact the lives of 9,000 small dairy farmers by enhancing their productivity by at least 10 percent, resulting in at least 10 percent increase in their incomes. The project provides training on the best dairy farm management techniques, including artificial insemination, and provides women livestock workers training in entrepreneurship.

http://www.pakistantoday.com.pk/2012/10/06/city/lahore/usaid-trains...

Here's a BR report on olive tree planting in Pakistan:

ISLAMABAD: As many as 1500 hectares of land would be brought under olive cultivation within next three years with an aim to exploit the potential in this particular sector and make the country self-sufficient in olive production.

The three-year project has been launched under the debt swap agreement between Pakistan Agriculture Research Council (PARC) and Italian government for promotion of olive farming in the country, a top official in the council said.

"The PARC has already identified olive cultivation areas in Khyber Pakhtunkhwa, FATA, Potohar Region and in Balochistan and has started work on planting olive trees since March this year," Project Direct Olive Production and Senior Director Crops, Dr. Mohammad Munir told APP here.

He said that the PARC has taken all the four province onboard for launching the project.

The land being brought under the cultivation under the project would be in addition to that already utilized for the cultivation of olive.

The official was of the view that olive cultivation needs fewer resources and marginal lands are needed for its cultivation so it is a lucrative engagement for farmers who can take full advantage of this.

Once established, the olive gardens would start bearing fruit after three years (in 2015), so the council would set up four olive oil extraction machinery (plants) to facilitate farmers, he said and elaborated that one each big plant would be established in Balochistan and Potohar region while two units would be installed in Khyber Pakhtunkhwa and FATA region.

In addition, mobile oil extracting units would also be arranged that would be used for oil extraction in those areas where farmers have no access to these four oil extracting facilities.

He said plantation of the olive plants takes place in March or November of each year adding that the PARC has identified 12 kinds of plants to be planted in these gardens, keeping in view the climatic conditions.

Munir said that the Italian government is also interested in launching research project aimed promoting olive cultivation in the country.

A memorandum of Understanding to this effect would be finalized soon under which Pakistan would become member of the regional centre that has been engaged in research activates for promotion of olive.

The Italian government is already working with Afghanistan and Nepal and Pakistan would be the third member of this centre, he added.

Munir said that Pakistan has been involved with the Italian government since 1984 for the promotion of olive as three projects were initiated by Pakistan Oilseed Development Board (PODB) in this regard earlier.

However, he added, the current project was the forth project in this line which the Italian government gave to the PARC for execution under Debt-Swap agreement.

http://www.brecorder.com/pakistan/business-a-economy/86446-olive-to...

Here's another BR report on growth of oil seed farming in Pakistan:

Pakistan Oilseed Development Board (PODB) is making all out efforts to enhance local production of edible oils in a bid to reduce dependency on imported edible oils, which would save the country valuable foreign exchange to the tune of $2 billion per annum.

This was stated by Chairman Pakistan Oilseed Development Board, Ghulam Idress in an interview with Business Recorder. He said that since the establishment of PODB in 1995 the annual growth of oilseeds in Pakistan was 2.56 percent but at present its growth rate is about 5 percent per annum and the PPP-led federal government is committed to further boosting its growth so that self-sufficiency in edible oils may be achieved.

Ghulam Idrees said that the establishment of such an institution is creating opportunities for the farmers and providing high quality edible oil to the people of Pakistan as was the vision of late PPP Chairperson Benazir Bhutto. In 1995, keeping in view that the country was an agriculture based economy and was spending huge foreign exchange on the import of oilseeds the PODB was established. At the time Pakistanis were consuming about 1.42 million tons of edible oil per annum.

While giving details of the achievements of the board, he said that in 1995, a total 8,000 acres was under cultivation of Canola seed but in 2008-09 it is cultivated on more than 172,000 acres across the country. Similarly sunflower was cultivated on 185,000 acres in 1995 and now it is being cultivated on 929,000 acres, which is a significant achievement. He said that in financial terms domestic production is saving around Rs112 million for Pakistan in foreign exchange. Husk is a bye-product that is contributing Rs28.3 million per annum to the economy.

Mr. Idrees said that in 1995 PODB started plantation of palm oil trees in costal areas of Sindh and Balochistan and now the trees have started producing fruits.

Mr. Idress further revealed that in year 2000, the Board supported the plantation of olives in Balochistan and Potohar region and now Pakistan is also producing olive oil. He said that PODB is encouraging farmers to plant olive trees and has provided support in establishing two olive oil tree gardens - in Teshil Talagang of District Chakwal, Punjab and District Nowshera in NWFP.

Mr. Ghulam Idrees said that PODB was providing all the facilities to the farmers of District Dera Ismael Khan and some parts of the Balochistan province so that the production of sunflower could be increased. Similarly PODB was working on producing quality Canola oilseed in NWFP province and its efforts have started producing desirable results as at present Pakistan was producing 46 percent of its Canola oilseed requirements.

While talking about the total domestic requirements of edible oil and its local production, Mr. Idress said that in 2009 Pakistan produced 0.684 million tons of edible oil which is about 24 percent of the total needs of the country and the rest was imported from other countries.

He said that 3.015 million tons of cotton seed was produced locally and from it 0.362 tons of edible oil was produced, sunflower production was 0.598 million tons which produced 0.227 million tons of edible oil.

Idrees said that 1.783 million tons of palm oil, 0.092 million tons of soybean and 0.016 million tons of other edible oils was being imported.

Idrees categorically stated that if farmers of the country are provided a favorable environment they could produce sufficient oilseeds in the country to meet local demand.

http://www.brecorder.com/epaper/br_150151_559.html?title=Pakistan%2...

Here are a couple of recent stories on Pak agribusiness:

1. Harvard Business School picks Pakistan's K&N for case study:

Karachi: World’s most prestigious business school in the United States of America, Harvard Business School (HBS) has selected a Pakistani company, K&N’s, as a case study.

HBS faculty members select companies from around the world for a written account of a company focusing on strategic business issues, of interest to a global audience, which are then used for classroom discussions. HBS case studies are world renowned, and not only used by HBS faculty, but also by majority of leading business schools and universities around the world for teaching.
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K&N’s is greatly honoured with this achievement, as for any company, becoming a HBS case study is a great honour. While felicitating K&N’s, Pakistan Poultry Association (PPA) said is proud to have its founding member featured as a HBS case study as it is the only company from Pakistan to have been chosen by HBS to write the case study and use it in its executive education programs. This is also a great achievement as a very positive image of Pakistan will be reflected through the K&N’s case study reading and discussions by thought-leaders and key decision makers from the global food and agribusiness industry, and university students alike, around the world.
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K&N’s integrated poultry operations include grand parent breeding, parent breeding, hatching, feed milling, broiler growing, poultry processing, and production of ready-to-cook & fully cooked chicken products. K&N’s Quality Assurance Lab monitors and regulates the integrated poultry operations to ensure K&N’s chicken products are wholesome, safe and healthy. K&N’s manages its own product distribution (including Pakistan’s most extensive cold-chain distribution system) and a chain of chicken stores for its range of chicken products.

http://www.thenewstribe.com/2012/10/02/harvard-business-school-sele...

2. Japan's JICA helping build vapor heat treatment facility for mango exports to Japan:

Japan International Co-operation Agency (JICA) is likely to extend its help to Pakistan for setting up a vapor heat treatment (VHT) plant worth Rs 170 million in order to tap the higher end Japanese market. The offer was made by Yuji Aoki (Japanese Consultant, TDAP) while speaking at a meeting held at the Pakistan Horticulture Development and Export Company (PHDEC), says a spokesperson here on Monday.

The meeting was informed that PHDEC had already succeeded in sending mangoes to Japan on trial basis in its endeavours to tap higher-end Japanese market. Yuji Aoki speaking on this occasion said that the plant could be installed in Pakistan before the next mango season. He said mango was liked by Japanese people for its sweet taste but there is need to develop certain infrastructure facilities for standardisation at production, packaging and processing level to meet the SPS requirements of Japanese market.

Akram Khalid, Sr. G M Co-ordination, PHDEC chairing the meeting said that PHDEC will network with stakeholders to get their feedback and to assess the viability of this costly initiative. Nudrat H Khan Senior Manager (Marketing) PHDEC said that a comprehensive marketing campaign can be organised in Japan with the collaboration of commercial section of Pakistan Embassy in Japan.

Sarfraz H Iqbal Sr Manager apprised AOKI about the projects and services of PHDEC. It is important to note that in Japanese market mangoes are sold in pieces at a comparatively higher price which is approximately 4 times greater than the price Pakistani mangoes fetch in its traditional markets, concludes the PHDEC spokesperson.

http://www.brecorder.com/agriculture-a-allied/183/1250459/

There are worries about carbonated drink consumption in South Asia. I think these are overblown considering the fact that per capita consumption in Pakistan is just 5 liters and in India 3 liters.

Compare this with milk, a healthier alternative, whose consumption in Pakistan is 223 Kg per person and 96 Kg in India.

http://www.riazhaq.com/2012/10/pakistan-among-top-meat-consuming.html

http://www.slate.com/articles/health_and_science/map_of_the_week/20...

Here's a recent Seekingalpha piece on Pepsi growth in South Asia:

Pepsi depends heavily on emerging markets for growth. It experienced a growth of 14% in emerging markets for the quarter. Organic net revenue in Europe grew by 7%, and in Asia, Middle East and Africa it grew by 10%. The company has significant international exposure, which means that the company's top and bottom lines are affected by foreign currency movements. This is made evident by a 5% decrease in company revenues due to foreign currency movement in the recent third quarter.
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Asia, Middle East & Africa (AMEA) unit experienced strong growth for the quarter. Organic net revenue grew by 10%. Within this unit, snacks experienced double-digit volume growth rate. Beverages' volume experienced high single digit growth rate. India and Pakistan experienced snacks volume growth of 12% and 27%, respectively. Beverage volume for India and Pakistan was up 23% and 25%, respectively. Constant currency operating profit for the unit grew by 14%.

http://seekingalpha.com/article/935611-pepsico-or-coca-cola

International frozen yogurt franchises Tutti Frutti and Fruz are coming to Pakistan, according to news reports:

Business Recorder on Tutti Frutti:

Tutti Frutti is a specialty brand available in various world markets, including the USA, Canada, Brazil, Malaysia, Thailand, Hong Kong, China, France, Pakistan and the United Kingdom. Work is in progress to open up outlets in countries like India, Bangladesh, Russia, Romania, Spain and various Middle Eastern countries.
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17 outlets already opened in Pakistan. There are five outlets in Karachi, three each in Lahore and Islamabad, two in Rawalpindi, two at Bhera Motorway rest area and one each in Abbottabad and Faisalabad. Another 19 are under-construction in different cities. We are targeting about 100 branches by the end of the year 2013, reaching customers in nearly every city of Pakistan.

http://www.brecorder.com/brief-recordings/0/1257571/

The Nation on Yogen Fruz:

LAHORE (PR) – Yogen Fruz, the world’s leading frozen yogurt chain opened its first outlet in DHA amidst much fanfare on Sunday. The master franchise of the Canadian desserts chain has been acquired by MFK Foods in Pakistan, and the local business group is already working on a plan to open outlets and franchises all across Pakistan.“When we received a query for bringing Yogen Fruz to Pakistan, we all were very excited. Pakistan is a huge consumer market and if the conditions are right, this country can attract a lot of foreign investments. We all flew in from Canada to be a part of this launch”, said Carlos Campo who is the Director Operations for Yogen Fruz worldwide, and is in Pakistan with his team to assist in the launch of this giant food and desserts chain.“Frozen yogurt is freshly prepared, is rich in probiotics, and is available in endless flavours,” added Basir Syed, CEO MFK Foods and master franchisor for Yogen Fruz Pakistan. “Yogen Fruz is here, and soon it will be available in all parts of Pakistan. We have an aggressive business development plan and we have received numerous franchise requests and sold many as well. We will also be opening outlets in other parts of Lahore as well.”

http://www.nation.com.pk/pakistan-news-newspaper-daily-english-onli...

Here's PakObserver on Pakistan's rising food exports:

Thursday, November 29, 2012 - Islamabad—Fruit and vegetable export from the country during the first four months of current financial year recorded increase of 4.21 percent and 10.97 percent respectively.

During the period from July-October 2012 about 120,794 metric tons fresh fruits of different varieties worth US$ 81.48 million exported as compared to the 135,323 metric tons valuing US$ 78.18 million during the same period of last year.

According the data of Pakistan Bureau of Statistics (PBS), during first four months of current financial year about 65,113 metric tons vegetables costing US$ 31.75 billion exported which was up by 10.97 percent as compared to 106,752 metric tons of US$ 28.6 million during same period of last year.

The export of fruit and vegetables witnessed increase in their exports in dollars term, however, the export in quantity term witnessed reducing trend during last four months of current financial year, the data revealed. Meanwhile, the export of sugar during the period under review recorded 100 percent increase as about 126,819 metric tons of sugar worth US$ 70.29 million exported.

From the period from July-October 2012, the export of meat and meat preparations also increased by 30.64 percent as about 22,836 metric tons of meat and meat preparations valuing US$ 7.37 (73.7?) million exported as compared to 19,062 metric tons worth US$ 59.4 million exports of same period last year,, it added. The data revealed that during the first four months of current financial year the export of all other food items recorded 30.64 percent increase as against the last year’s export.

During the period from July-October country earned US$ 343.26 million by exporting different food commodities where as it was recorded at 328.15 million during same period last year.

http://pakobserver.net/detailnews.asp?id=184461

Here's PakistanToday on raising Pakistan's food exports to Malaysia:

Pakistan and Malaysia have decided to further enhance bilateral cooperation in the field of agriculture with Malaysia agreeing to import more livestock, fish, rice, beef, fruits and vegetables from Pakistan.
“We are already importing a considerable amount of rice, fruits and other food products from Pakistan and we want this cooperation to grow further in the coming months,” said Malaysia’s Agriculture and Agro-based Industry Minister Datuk Seri Noh Omar during a meeting with Pakistan’s Minister for National Food Security and Research Israrullah Zehri in Kuala Lumpur.
During the meeting, Malaysia’s Agriculture and Agro-based Industry Minister Datuk Seri Noh Omar recalled his visit to Pakistan in December 2009 and his meeting with the then Minister for Agriculture Nazar Mohammad Gondal. He also mentioned about 171 buffalos which were given to Malaysia by the Government of Punjab and called for relaxing the procedure for importing more animals from Pakistan as Malaysia was in need of many more.
He also appreciated the quality of Pakistani fruits specially mangoes and kinoos and hoped that the quantum of fruits being imported from Pakistan will increase with the passage of time.
Datuk Seri Noh Omar noted that following his visit to Pakistan, three separate Memorandum of Understandings (MoUs) had been signed between the two governments for exchange of scientific knowledge and technology cooperation as well as for the import and distribution of fruit juices, fruit-based consumer products and frozen beef from Pakistan to Malaysia. Similarly, a Letter of Intent had also been signed between the Government of Punjab and the Department of Veterinary Services Malaysia for expanding cooperation in the veterinary sector.
Datuk Seri Noh Omar said the Malaysian government had moved swiftly on implementing these MoUs and it had already granted license for export of Pakistani beef to Malaysia while a total of 171 animals, including Neeli Ravi buffaloes, had also been imported from Pakistan for developing “our buffalo industry and improving their gene pool”. He also referred to the growing import of Pakistani rice to Malaysia which imported 43,000 MT of Pakistani rice in 2009 but increased it to 123,000 MT in 2010 and to a sizeable 148,000 MT in 2011 respectively.
Federal Minister for National Food Security and Research Israrullah Zehri thanked his Malaysian counterpart for inviting him to attend the Malaysian Agriculture, Horticulture and Agro-tourism Show (MAHA) 2012 and urged the Malaysian government to consider increasing import of beef and mutton from Pakistan as quality of meat was very good and the slaughtering of animals was in accordance with Halal standards. He also invited his Malaysian counterpart to visit Pakistan in February 2012 to attend the livestock fair held in Sibi Balochistan.
Later, Israrullah Zehri visited various pavilions and stalls set up at MAHA 2012. He evinced keen interest in various products, food items and livestock put on display. Later, he also spoke to the local media and shared with them various proposals and measures currently being pursued by Pakistan and Malaysia to enhance mutual cooperation in a diverse range of fields, including import of agricultural machinery and equipment; techniques of horticulture fruit-growing and vegetable gardening; plant protection and fertilizers; livestock farming and breeding; Green House technology; feed and feedstuff production; veterinary medicine; fish farming; energy-saving technologies for agriculture; production of biomass fuel, biogas, biodiesel, renewable and alternative energies (Biofuel); and water management and forestry.

http://www.pakistantoday.com.pk/2012/11/30/news/profit/malaysia-eye...

Here's a Fresh Plaza report on Pakistan kinnow exports:

Exports of Pakistani mandarin may reach the figure of $100 million around in 2012-13. Exports will start from December 1st 2012 and continue till the end of March 2013.

According to Ahmad Jawad, CEO of Harvest Tradings, heavy rains should help increase Kinnow exports for the 2012-13 season compared to last year, despite the fact that this year production is less than last year in Kinnow the farms of Sargodha district, the biggest citrus producing hub.

"For this season, around 1.8 million tons of production are expected and there are prospects that country's exports would be good. A target of 0.2 million tonnes has been fixed this season for Kinnow export."

He explains that Kinnow export to Iran will not take place because of non availability of e-forms by banks.

Indonesia and India have been added as new markets for the coming season. The export of Kinnow from Pakistan to Indonesia is expected to reach 40,000 tonnes during the coming season. Pakistan and Indonesia have already signed a preferential trade agreement to enhance trade between the two countries this year.

Jawad expects a tough time from China on the Indonesian market in terms of price, but in taste he says, "our product is far better than the Chinese Mandarin. Similarly good volumes are expected to go to India as well in the light of Most Favored Nation Status (MFN) which is granted by the Government of Pakistan to increase trade activities on both sides."

Similarly Malaysia also a favorite market for Kinnow due to Free Trade Agreement signed between two countries.

He goes on to say that, "over a period of time, Russia and Ukraine have also emerged as leading importers of Pakistani Kinnow. Total exports to both countries may now contribute to almost half of Pakistan's total exports, provided we deliver required quality to the Russian authorities."

Mr Jawad urged the support of respective commercial counselors for better promotion and level playing field.

He also sees bright prospects for future of Kinnow exports, but says this is subject to proper dedication and more research as the Kinnow is the only fruit whose juice costs as little as a cup of tea.

http://www.freshplaza.com/news_detail.asp?id=103695

Here's BMI report on Pak agribusiness:

The 2012 monsoon season was relatively kind to Pakistan’s farmers, especially in comparison with the devastating floods of 2010. Although localised flooding caused severe destruction in parts of Sindh and Balochistan, the main breadbasket region of Punjab enjoyed late rains after a dry start to the season, improving the prospects of rice, corn and cotton in particular.

Key Forecasts:

- Corn production to 2016/17: up 30.0% to 5.6mn tonnes. Continually improving yields and high prices on world markets will support an impressive increase in corn production.

- Cotton consumption to 2016/17: up 23.2% to 12.5mn tonnes. Demand for cotton will surge in the early years of our forecast as the EU lifts tariffs for a year, before falling back to steady yearon-
year (y-o-y) growth.

- Rice production to 2016/17: up 16.5% to 7.3mn tonnes. Pakistan will retain its place among the world’s most important exporters of the commodity as its producers look to expand into new markets.

- 2013 real GDP growth: 4.0%. Up from 3.7% y-o-y in 2012.

- Consumer price inflation: 12.4% in 2013 (up from 11% y-o-y in 2012).

Industry Outlook:

The 2012 monsoon season was relatively kind to Pakistan’s farmers, especially relative to the devastating floods of 2010. Although localised flooding caused severe destruction in parts of Sindh and Balochistan,
the main breadbasket region of Punjab enjoyed late rains after a dry start to the season; this has improved the prospects of rice, corn and cotton in particular.

In a major boost to the cotton industry, the EU has finally enacted a long-discussed measure that will suspend import duties on a range of cotton products from Pakistan. The European Parliament finalised the move in September, although the regulation will only apply until the end of 2013, rather than the two-year period initially pushed for by the EU. According to the Pakistan Cotton Ginners Association, the EU is one of Pakistan’s largest trading partners, accounting for more than 30% of the country’s total exports. Of this, the 75 items allowed under the deal contribute about EUR921mn, or 30% of the country’s total exports into the EU. ...

http://www.researchandmarkets.com/research/bgtf4x/pakistan

Here's Daily Times on green tea production opportunities in Pakistan:

Pakistan Agriculture Research Council (PARC) Chairman Dr Iftikhar Ahmed has stressed the need for focusing on domestic green tea production to meet the requirements of the country.

During his visit to National Tea Research Institute (NTRI) Shinkiari, the PARC chairman said that the country could be self-sufficient in green tea, imports of which have now risen to 33,000 metric tonnes.

He said that NTRI should focus on green tea cultivation to make the country self-sufficient in green tea production.

NTRI Chairman Dr M Azeem, Sardar Ghulam Mustafa, Dr Naseer Malik, Dr Abdul Hayee Qureshi, NTRI Director Dr Farrukh S Hamid and other senior scientists were also present during the visit of PARC chairman.

On the occasion, Hamid briefed the chairman about the history of tea cultivation and present status of its expansion in the potential area of Khyber Pakhtunkhwa.

He also gave a detailed briefing about the present import of tea in the country, like, 127,000 metric tonnes of black tea during the fiscal year 2011-12.

The NTRI director said that Pakistan was the third largest importer of tea in the world.

The PARC chairman was also informed that NTRI has produced 12 clones of high-yielding potential and has established the progeny garden.

The tea germplasm available in Pakistan are of Chinese origin and best suited for the production of green tea, moreover, the market price and consumer acceptability demands that green tea production is more economical compared to the black tea.

Green tea has been enjoyed by the people in China and Japan for thousands of years, not only for its taste but also for the health benefits associated with it.

The secret of green tea lies in the fact that it is rich in catechin, polyphenols, particularly epigallocatechin gallate (EGCG), a powerful anti-oxidant.

The positive health effects of green tea are that it prevents cancer, reduces high blood pressure, anti-diabetes effects, prevents liver disease, food poisoning, has antidepressant properties and weight loss factors.

http://www.dailytimes.com.pk/default.asp?page=2012\09\29\story_29-9-2012_pg5_12

Here's ET report on tea cultivation research in Pakistan:

A modern tea research laboratory has been set up in the National Tea Research Institute (NTRI) Manshera. The laboratory will process and cultivate tea on a commercial basis to enhance domestic production and reduce the import bill of the commodity.

The laboratory consists of departments for soil sciences, entomology, biochemistry and horticulture for research and development of tea production in the country.

The project, initiated by the Ministry of Food and Agriculture, will be completed within the next two years at a cost of Rs490 million.

Addressing the inaugural ceremony at NTRI, Pakistan Agriculture Research Council (PARC) Chairman Dr Muhammad Afzal said that the import bill for tea was around Rs 20 to 22 billion per annum, which is a huge burden on the national exchequer. The biggest relief, he said, would be the reduction in foreign exchange spent on tea imports.

He said that the forest departments of Azad Jammu and Kashmir and Khyber-Pakhtunkhwa (K-P) had provided 1,000 acres for research purposes.

In addition, three tea nurseries have been set up in AJK, Swat and Bajaur Agency, with 32 acres being cultivated in Abbaspur in AJK, and 29 acres in Bajaur. The chairman said, “These nurseries now have million of plants which are ready for cultivation.”

The PARC Chairman also added that the laboratory has the capacity to process 10 tons of high quality green teas. He said that the NTRI would help the country become self-sufficient in tea production, while also increasing farm income and alleviating rural poverty.

http://tribune.com.pk/story/164240/tea-research-pakistans-favourite...

http://www.parc.gov.pk/ntri.html

Here's Olive Oil Times report on olive cultivation in Pakistan:

Pakistan has announced plans to boost olive cultivation with a plantation of four million olive saplings in the northwest tribal province of Khyber Pakhtunkhwa. Provincial Minister for Agriculture Arbab Ayub Jan said that the goal is to make the region self-sufficient in olive oil.

The government of Pakistan has already launched a Rs. 500 million mechanized farming program to usher in a revolution in the country’s agriculture. Minister Ayub Jan, while speaking to a group of farmers in Khyber Pakhtunkhwa, said that a major distribution plan is underway to ensure that the olive saplings get distributed to various areas of the province that are well-suited for the cultivation of olives.

The government is devising a multi-pronged strategy to achieve its long-term goal of self-sufficiency. Well-distributed olive cultivation across the province would help achieve maximum produce in the shortest timeframe. At the same time, the government is looking at other key areas to boost olive production.

The minister said that the government is investing in the establishment of new cold storages and installation of plants to grade and polish fruits. Such improvements in agricultural infrastructure would support the government’s targets of achieving superior produce, low wastage and self-sufficiency in critical food products such as olive oil. The minister pointed out that two new cold storages at a cost of Rs. 360 million had already been established with financial assistance from Italy.

http://www.oliveoiltimes.com/olive-oil-basics/pakistan-plant-4-mill...

Here's an ET story on Pepsi sales in Pakistan:

Pakistan is one of the top 10 markets outside the United States for PepsiCo, says Qasim Khan, a senior executive in the global food and beverage giant’s management team for Asia.

---------
Somewhat surprisingly for PepsiCo, its biggest brand in Pakistan is not the signature Pepsi cola, but rather Mountain Dew. “Pakistan is the second-largest market in the world for Mountain Dew after the United States,” said Muhammad Khosa, head of corporate affairs at PepsiCo Pakistan.

Pepsi began its operations in Pakistan with carbonated beverages in 1967, and currently has eight bottling franchisees operating throughout the country. In addition to Pepsi and Mountain Dew, they produce 7up and Mirinda in the carbonated beverage category, and Sting in the energy drink segment. Over the past decade, Pepsi has added snack foods and fruit juices to its portfolio of products in Pakistan, which it manufactures primarily out of a factory in Lahore.

The addition of the snack food business – as well as strong growth in its beverage lines – has resulted in PepsiCo becoming the largest food and beverage company in Pakistan. According to sources familiar with the matter, the revenues of PepsiCo Pakistan and its eight bottlers came to a combined Rs82 billion for the financial year ending June 30, 2012, up 19% compared to the previous year.

Growth seems to be moving at breakneck speed in the snack food business, which the company started in 2006. “The Pakistan snack food business was the fastest growing in the Asia Pacific region for PepsiCo last year,” said Khan.

Indeed, growth was so fast that the company’s manufacturing plant for snacks reached its peak production capacity within its first year of operations. The company had initially estimated that it would be able to handle at least three years’ growth: it is now scrambling to add capacity as quickly as possible.

Pakistan’s growing importance for PepsiCo is increasingly being reflected in different ways. A television commercial produced in Pakistan for Mountain Dew is now used worldwide. Pakistani technical staff members are occasionally sent to PepsiCo’s divisions around the world to train others. And the PepsiCo food laboratory in Lahore is now used as one of the main labs for products being tested for the Middle East and Africa.

The company’s business unit, under which Pakistan falls, is headed by Qasim Khan, a 1979 graduate of Hailey College in Lahore. After a brief stint at Procter & Gamble, Khan joined PepsiCo in 1986 and has been with the company ever since; serving in senior positions throughout the world.
----------
PepsiCo and its bottlers combined have over 15,000 employees in Pakistan. And it is among the highest taxpaying entities in the country.

Yet not everything is going well for PepsiCo in Pakistan. The natural gas shortage has meant that gas supply to its captive power generation unit at its manufacturing facility has been cut off, forcing it towards alternative, and more expensive, fuel sources. “The cost savings we had managed in our logistics operations were wiped out by higher energy costs,” said Khan.

Nonetheless, the company plans to continue growing its operations in Pakistan and make it part of the global supply chain. Kurkure, spicy corn-based snack currently available only in India and Pakistan, will soon be exported to Malaysia, Indonesia and Singapore from Pakistan, owing to the fact that the chips produced in Pakistan are already certified ‘halal’.

http://tribune.com.pk/story/493197/food-and-beverages-pakistan-amon...

Here's an ET story on cutting out middlemen in Pak agriculture value chain:

KARACHI:

In the food business, there is one strategy that works better than most others: disintermediation, or in layman’s terms, cutting out the middleman.

That is exactly the strategy being pursued by one of the world’s largest privately-held food companies, which is in the process of entering into an agreement to buy its supply of rice directly from Pakistani corporatised farms, cutting out the dozens of layers of commodity traders in between, increasing profits for both the Pakistani farmer and the foreign retailer.

The food company, one of the most significant players in the North American and European markets, has decided that it will source up to 30% of its basmati rice requirements from Pakistan through a company called Rice Partners, a corporate farming outfit being financed by Indus Holdings, an Islamabad-based venture capital and private equity firm.

With all the brouhaha about companies and governments from richer countries coming into poorer nations and buying up agricultural land, the arrangement being pursued by Rice Partners is a decidedly interesting one: the company will not own the farms, but instead will have contracts with farmers for both quality and quantity of produce that it will buy.

Rice Partners has selected about 27 farmers small and medium sized farms that collectively spread over 2,500 acres in and around Muridke in Punjab, in collaboration with their foreign partner. (Rice Partners has asked The Express Tribune not to disclose the name of their partner, since it is not a publicly listed company.)

The company will provide equipment to the farmers, assist them in improving their growing techniques and improve their overall productivity. The rice grown will be expected to meet some of the most rigorous regulatory standards and its quality will be audited by URS Pakistan, a leading quality certification and assurance company.

As a result of the higher quality and strict audits, the farmers will be paid a premium over market rates.

The difference in farm-gate prices (what the farmer gets) and retail prices (what the end user pays), are some of the highest in rice, with the retail price often being four to five times higher than the farm-gate price. Since Rice Partners will be selling directly to a retail brand, instead of going through the 10 to 12 intermediaries, it can afford to pay a much higher price while still remaining competitive.

For its part, the foreign food giant gets an assurance of quality that reduces its rejection rates which, company executives say, can reach as high as 50% in India. Rice Partners will be placing radio-frequency identification (RFID) tags in every bag of rice produced, which will offer its foreign partner an unmatched level of traceability – the ability to know precisely where the rice was grown in case there is ever a problem.

The first shipments of rice under the project are expected to be dispatched in early 2012.

While Pakistan is only the 11th largest producer of rice, according to the United Nations Food and Agriculture Organisation, it is the world’s fourth largest exporter, since rice is not a staple part of the Pakistani diet. Yet most of the exports are commodity based, rather than value-added.

...

http://tribune.com.pk/story/281091/cutting-out-the-middleman-global...

Here's a Nation newspaper report on PASSCO ending middle men in wheat procurement:

ISLAMABAD - The Pakistan Agriculture Storage and Supply Corporation (PASSCO) is working on a plan to end the role of middle-man to purchase wheat in bulk rather than bardana.According to sources the move will go a long way to help reduce the rising trend of corruption in wheat procurement process and will help to discourage the role of middle-man in wheat purchase operation. It has also plan to register farmers and issue PASSCO cards during wheat sale operation and under the proposed plan wheat can only be procured in bulk without bardana in order to curtail the role of middle-man.It proposed by PASSCO to minimize the subsidy burden on the government of Pakistan and also to minimize the carrying cost wheat procurement targets allocated to PASSCO should be need driven and wheat procurement target to be given keeping in view the average requirement of dependent provinces .Armed forces plus strategic and any unforeseen factors."A payment mechanism be developed wherein the cost of wheat dispatched to Gilgit-Baltistan and Government of Azad Jammu and Kashmir (AJK) are directly paid at source in advance to PASSCO by the Federal government which, will save the national exchequer heavy mark-up which keeps accumulating due to present payment mechanism," sources said."PASSCO requires minimum storage capacity of 1.5 million tons because its godowns has the capacity of only 0.431 million (28 per cent) tons and the remaining 72 per cent wheat stocks were stored in open under tarpaulins," official date reveals." the situation is precarious at 2.039 million tons wheat stocks are lying in the open in far-flung areas (as on 24.09.2012) which has more susceptible to climatic hazards and pest attack,".It said there was a dire need to create additional storage facilities for PASSC and in this regard proposal and offer of Islamic Development Bank for construction of silos with capacity of .65 million tons need to be persuade at war footing on government level.It is quite relevant to mention here that PASSCO has to pay Rs12 billion mark-up on Rs93.54 billion of loans taken from commercial banks in current financial year 2011-12 to run its operations whereas it has to recover Rs19.7 billion dues from regional and provincial governments and other organisations, including the Pakistan Army, on account of wheat supply. In addition to these, PASSCO was to receive Rs3.8 billion on account of mark-up and financial charges from different agencies.

http://www.nation.com.pk/pakistan-news-newspaper-daily-english-onli...

Here's a Nation report on Nestle training Pak dairy farmers:

LAHORE – The Nestlé Pakistan has planned to train 30,000 dairy farmers in next five years through its training centers established at Nestle Farmhouses with a view to improve milk quality as well as production.

This was observed by Nestle Pakistan Manager Corporate Media Relations & Policy Networking Saira Iftikhar, Regional Milk Collection Manager Syed Naveedul Hassan and Assistant Training Manager Salman Umer while briefing The Nation during a visit to Okara Nestle Farmhouse.

“The farmhouse training centers, including training centre of district Okara, are imparting training to around 2,000 dairy farmers annually, besides educating around 4,500 lady dairy farmers so far,” they observed.

Saira observed that Okara training project, started in July 2007, is providing technical assistance and advice about animal health, breeding and fodder production to female dairy farmers also in Punjab as well as half of Sindh to raise the quality and value of the milk they supply, which in turn boosts the local economy.

She maintained that Nestlé Pakistan has taken a key role in the country’s dairy development and is keen to bring new knowledge into the sector, both to build a better future for farmers and to improve the rural economy.

Regional Milk Collection Manager Syed Naveedul Hassan informed that the training is aimed at helping both small scale producers and large commercial farms to improve milk quality and increase milk production in a country which is seeing a growing demand for milk products.

Naveed explained: “We believe that Pakistan will grow very fast as a milk supplier and it has great potential for development into a leading milk exporter.”

“We hope that, through training, we can help our farmers to turn their herds into profit making ventures by improving farm management, efficiency and dairy animal welfare.

“As well as bringing in a valuable source of income, an increase in quality milk production will also provide a source of employment within communities and a significant boost to the economy, he elaborated. He added that it will also help to uplift the socio economic status of the rural workforce.

Assistant Training Manager of Milk Collection & Dairy Development Salman Umer expressed that the course was designed specifically to cover farm management, milk production, cattle health, nutrition and breeding.

The training is providing an excellent opportunity for farmers to learn from the mature international dairy sector, he said and added that Pakistan has the potential to double its milk production if just a few international good practices can be adopted into local conditions.

“Although the vast majority of our farms are small enterprises, the overall volume of milk produced makes Pakistan the fourth largest producer in the world. Just a 10 per cent rise in yield would make a significant difference, he added.” The participants of training said: “The training offered through Nestle Sarsabz Farm has been very effective in helping us towards this goal. The training programme has been making a strong impact on milk production.”

“This has been a very good experience which has exceeded expectations, stated farmers who were getting training. They added that there is a very keen and supportive culture at Nestle Training Centre which allows us to share experience and knowledge.

“We have seen many things which we can use as a benchmark to help us make improvements in our dairy farm. We have been delighted at the success of this very exciting and worthwhile programme with Nestlé Pakistan.

http://www.nation.com.pk/pakistan-news-newspaper-daily-english-onli...

Here's Daily Times on Pak food exports:

ISLAMABAD - The food exports of the country during first half of financial year 2012-13 increased by 4.82 percent as compared to same period of last year. The exports of overall food group were recorded at $2,054 million during July-December (2012-13) against the exports of $ 1,959 million during July-December (2011-12).
According to data of Pakistan Bureau of Statistics (PBS), the food exports from the country on month on month basis also increased by 14.34 percent and 18.01 percent during December 2012 when compared with December 2011 and November 2012 respectively.
The food exports increased from $ 384.493 million in December 2011 and $ 374.465 million in November 2012 to $ 441.923 million in December 2012.
The major food items which recorded increase in their exports during the first six months of current financial year over same period of last year include sugar (100%), meat and meat preparations (43.74%), fish and fish preparations (2.64%), vegetables (38.28%), spices (25.07%), oil seeds, nuts and kernels (41.6%%) and all other food items (17.31%).
Similarly the food items which recorded decrease in their exports include rice (12.33%), fruits (1.77%), pulses (56.68%), tobacco (40.91%) and wheat (61.49%). The overall exports from the country witnessed growth of 7.58 percent during the period July-December (2012-13) as compared to same period of last year.
Exports from the country during July-December (2012-13) were recorded at $ 12.0513 billion against the exports of $ 11.201 billion during the same period of last year.

http://www.pakistantoday.com.pk/2013/01/23/news/profit/food-exports...

Here's a BR story on Tetrapak growth in Pakistan:

Tetra Pak sees tremendous potential for growth in Pakistan as its liquid packaged food industry (dairy and beverage) will grow on an average compound annual growth rate of 15 to 16 percent over the next five years. Pakistan is the 6th largest market in terms of population and for the past several years has consistently registered one of the highest growth rates globally.

Tetra Pak factory will meet the rapidly growing demands of Pakistan's dairy and beverage industries as well as growing demand from other emerging markets in the cluster 'greater middle east', said Tetra Pak factory Production Manager Ihsan Ullah Khan while talking to members of the Agricultural Journalists Association (AJA) at factory premises on Wednesday.

He said that the factory which was constructed with an investment of over Rs 10 billion started its operations on December 01, 2010 has been declared 'Factory of the Year Award' in recognition of its achievement in operational efficiency, environment and safety performance within two years since it commenced operation. The factory has production capacity of eight billion packages per year, with the potential to double production to 16 billion packages.

He said hard work and dedication of local people have proved Tetra Pak administration right in their taking decision of investment in Pakistan. By pursuing continuous improvement in operation, our factory has outperformed previous benchmarks in world class performance and productivity. "I am pleased to be a part of the winning team and I believe, passion of our people and mental fortitude is the driving force behind our success in such a short span of time," remarks Tahir Hafeez, Factory Director.

The selection process for the Factory of the Year Award is based on a selection of key performance indicators, employee satisfaction and management voting. The Lahore factory is World Class Manufacturing (WCM) certified, following manufacturing best practices, for leaner production such as limiting waste level to a minimum, reducing energy consumption by almost 20 percent from 2011. The factory has successfully established a working environment that aims at zero accidents.

http://www.brecorder.com/agriculture-a-allied/183/1151541/

Here's ET on Coke's planned investment in Pakistan:

KARACHI: Optimistic about its growth prospects in Pakistan, the Coca-Cola Company – one of the world’s largest beverage companies – will invest $379 million on manufacturing facilities across Pakistan over the next three years to expand its business, the company’s Pakistani subsidiary announced on Monday.

The announcement comes on top of the $172 million already invested by Coca-Cola in the country in 2011. The beverage giant will be spending the money on three new bottling plants, one each in Karachi, Multan and Islamabad. The announcement was made in the ground-breaking ceremony of the Multan plant on Monday.

The funds will be utilised for expansion and bringing about infrastructure changes and systemic improvements in the Coca-Cola system, an official press release said.

The expansion plans come as rising demand makes it difficult for Coca-Cola to keep pace with its existing production capacity in Karachi and Punjab, according to company officials. A decent growth in its top-line may also be another factor encouraging more investments.

Owing to its strategic location, Multan can not only serve southern and northern Punjab – which alone accounts for more than 60% of Coca-Cola’s business – but can also cater to Karachi’s market, company spokesman Fahad Qadir told The Express Tribune.

Greenfield investment refers to new foreign direct investment that will be utilised in setting up a completely new project, as opposed to an existing business expanding operations with its free cash flows.

Qadir says the plant will be fully equipped with state-of-the-art production equipment and product warehousing facilities. The plant will also have a much higher manufacturing capacity, he said.

Besides the three Greenfield plants announced, Coca-Cola Pakistan already operates six bottling factories in Pakistan, located in Karachi, Gujranwala, Multan, Lahore, Rahimyar Khan, and Faisalabad. It buys close to Rs13 billion in raw materials from around 300 local suppliers.

The Coca-Cola System, according to the press release, provides direct and indirect employment to more than 8,000 people in Pakistan; while another 35,000 people are employed through its supply chain, and another 100,000 benefit through employment in allied industries.

Coco-Cola Pakistan refused to comment on its revenues: but our sources say the company earned over Rs50 billion in revenues for the financial year ending June 30, 2012; a 55% increase when compared with the previous year. It also paid Rs10 billion in taxes.

http://tribune.com.pk/story/515776/coca-cola-announces-379m-expansi...

Here's a Nation newspaper article on food marketing in Pakistan:

FOOD marketing is such a process that usually brings together the producer and consumer. The marketing of even a single food product can be a convoluted process involving many producers and companies. For example, Pakistan has seen a fabulous growth in frozen foods market by the development of the ice-cream segment. The frozen food ice cream segment’s market size enormously expanded as a result of two entrants: a multinational company and a large local company.
Product development is systematic, commercially sloping way to develop products and processes satisfying a known or alleged consumer need. There are four basic stages for every product development process: product strategy development, product design and development, product commercialisation and product launch or post-launch. The vital test of product development occurs in the market and a new product can only be considered flourishing if it is a market and financial success.
There are three historical phases of frozen food marketing: the transportation phase, the distribution phase and the capacity of the retailers.
Today foods are not anticipated to merely satisfy hunger and to endow with necessary nutrients for humans but also to prevent nutrition-related diseases and improve physical and mental well-being of the consumers. The increasing demand of such ‘functional foods’ can be explained by the increasing cost of healthcare, the sturdy increase in life expectancy and the desire of older people for enhanced quality of life in later years.
Product development is now indispensable to scrutinize the issue of what constitutes a new or innovative product. Newness of a product may be judged differently according to those who pick it.
To mull over food product sales it is essential to look at the retail sector; this sector is characterised by intense competition and the dominant position held by supermarkets in many regions of the Pakistan. There is competition not only for sales between retailers but competition between food product suppliers. Pakistan has about 200,000 stores in the urban markets. These account for 90pc of the trade.
The development of the frozen food industry impacts farmers. The farmer directly benefits as he gets a better price, whether he owns a cow/buffalo or grows wheat and grains used in poultry feeds, or produces fruits and vegetables.
Pakistan has abundant sources of raw material. It is the 4th prevalent producer of milk and is one of the top ten producers of poultry in the world. 40pc of the horticulture produce is exhausted in post-harvest losses.
The global market of frozen vegetables alone is more than $3 billion with Japan and USA as the biggest importers of frozen vegetables while Malaysia imported $23 million worth of frozen vegetables in 2004.

http://www.nation.com.pk/pakistan-news-newspaper-daily-english-onli...

Here's PakObserver on US help to improve Pak agri productivity:

Tuesday, March 12, 2013 - Islamabad—The U.S. Agency for International Development (USAID), the International Maize and Wheat Improvement Center (CIMMYT), and the Pakistan Agricultural Research Council (PARC) launched a new project to expand the use of modern technologies in Pakistan’s agriculture sector.

“Boosting Pakistan’s economy is one of our top assistance priorities. That’s why this project will work to modernize agricultural practices to increase the production and quality of livestock and horticultural goods. This in turn will enhance economic development in the country,” said USAID Country Director Jonathan M. Conly at the launch of the project in Islamabad on March 8.

Innovative technologies, introduced in Pakistan with support from the U.S. Government, spurred the Green Revolution in the 1960s and 1970s. The adoption of improved rice and wheat varieties, combined with strategic policies and investments, led to a doubling of yields and output in those two decades. With investment in research, Pakistan transformed its agricultural sector into a driver for economic growth.

Currently, Pakistan’s agricultural sector is growing at a much slower pace than other sectors. “Pakistan’s agricultural productivity has fallen behind comparable countries with similar agro-ecologies,” said Thomas Lumpkin, Director General of CIMMYT. “There is a tremendous potential for growth, but we must act now.”

Through its new four-year, $30 million project, USAID will sponsor research to encourage adoption of new technologies in agriculture, such as laser land leveling, zero tillage, residue management, introducing short duration legumes into rice-wheat cropping systems, and custom service systems for machinery.

The project will also offer short and long-term training. The U.S.-funded project will be implemented by CIMMYT and PARC in cooperation with the International Livestock Research Institute, the World Vegetable Center, the International Rice Research Institute, and the University of California, Davis.

Promoting economic growth is one of the many ways that the United States is helping to create a brighter future for the people of Pakistan. The United States funds large-scale energy projects that will provide electricity to two million households by the end of 2013. The U.S. has rebuilt and renovated 800 schools and has provided scholarships to 12,000 students to attend universities in Pakistan.

http://pakobserver.net/detailnews.asp?id=199817

Here's a Washington Post piece on popularity of camel milk in Pakistan:

During the evening rush hour in central Karachi, Nadeem Mutloob can barely keep up with demand at his curbside Marhaba milk bar, a popular stop for workers on their way home.

Customers line up for cool bottles of what Mutloob and some medical researchers tout as an unbeatable health supplement: camel milk, or as the label says, “the world’s next super food.”

“It’s useful; that’s why they buy it,” Mutloob said.

He and others think camel milk can treat a range of ailments, including liver problems, hepatitis and diabetes.

“I use it for ‘man power,’ ” said Mohammad Ashfaq, a 36-year-old gas station employee, referring to virility.

As he bellied up to the shop’s counter, Ashfaq said his wife drinks the milk and gives it to their children, too.

And there might be something to the hype surrounding the age-old nostrum. The milk, indeed, is often used by diabetics and hepatitis patients. It has three times more vitamin C than cow’s milk and is a rich source of iron.

Nomadic Bedouins have relied on camel milk as a staple for eons; today Somalia and Saudi Arabia are the biggest producers. Processors are also developing markets in countries such as Kenya, Australia and the United States.

Karachi is at the center of the trend imported from Africa and the Middle East. Several camel-milk vendors have set up shop in the past year or so.

They range from small stalls like the Marhaba shop to a family operation called Wondermilk that offers flavors such as chocolate, banana and strawberry and takes Internet orders.

The white frothy liquid’s resemblance to its bovine equivalent does not extend to its flavor or its price.

“Tastes salty,” said Syed Sanaullah, proprietor of a shop called al-Habib, when asked to describe the beverage. The shopkeeper, 36, sells single-serve plastic bottles of milk at a roadside stand next to his small convenience store.

He said camel milk costs nearly five times more than regular milk because of shortages in supply — about $3.60 for about 35 ounces, while regular milk fetches only 80 cents. But customers who can afford it continue to purchase the milk because they are convinced of its efficacy.
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The U.N. Food and Agriculture Organization has noted the commercial value of camel dairy products, saying they could provide nomadic herders “a rich source of income.” The organization estimates a potential world market of $10 billion for the product.

The FAO notes that doctors are prescribing camel milk to patients in Russia, Kazakhstan and India and might be recommending it for people living with AIDS in Africa.

London’s Guardian newspaper recently reported that in Kenya, camel milkshakes and “camelcinos” (camel cappuccinos) are selling in cafes. It said camel-milk production is on par with the country’s coffee industry.

In addition to cosmopolitan Karachi, camel-milk consumption is catching on elsewhere in Pakistan, in cities such as the far less hip capital, Islamabad. There, individual sellers have been seen parking camels at the side of the road near bustling shopping centers.

While the bottled product is often boiled or pasteurized, these dairy entrepreneurs sell the milk in plastic baggies — or even offer “it-doesn’t-get-any-fresher” squirts directly from the source.

http://www.washingtonpost.com/world/asia_pacific/after-a-tough-day-...

Here's a Nation report on Nestle's $104 million investment in Pakistan:

AHORE – SALMAN ABDUHU - The Nestle Pakistan has announced the completion of its new milk powder drying facility plant with additional investment of $104 million at Nestle Sheikhupura factory.

Nestlé Executive Vice President and Operations and Globe System In-charge Joze Lopez, who is on three three-day visit to Pakistan, inaugurated the $104 million Egron Project and visited the whole plant.

Lopez, addressing the opening ceremony, said that the existing Milk Powder Plant has now been modified with new technology and has an additional yearly capacity of 30,000 tons. The power generation capacity and waste water management system have also been upgraded and additional filling lines have been set up, he added.

He stated the Nestlé is the largest food and beverage company in the world and the Sheikhupura dairy, juice and water factory embodies Nestlé’s increased investment in Pakistan. As part of its three-year plan to expand the production capacity in the country, Nestlé has invested a total of $148 million over the past two years in various factory expansion projects to meet rising consumer demands.

He added that wherever Nestlé is present, the company works and invests in the long term. We are convinced that in order to be successful in the long-term we have to create value for our shareholders, as well as for society. This Creating Shared Value approach encourages businesses to create economic and social value simultaneously by focusing on the social issues that they are uniquely capable of addressing. He observed that Nestlé Pakistan is committed to creating shared value for the communities it works and lives with. The company has made many contributions in this regard, by providing free technical and veterinary advisory and training support to thousands of dairy farmers in the milk districts who now have more sustainable opportunities to gain their living.

Lopez said, “Pakistan is an important growth market for us and we are dedicated to meet the growing demands of our consumers. Major capacity increases, such as the one just inaugurated in Sheikhupura, allow us to constantly upgrade our facilities to the latest standards in global technology.”

MD Magdi Batato, on this occasion said that Nestlé Pakistan is the leading food and beverage company in Pakistan and meets international standards in the manufacturing of its products. In 2012, the company grew by 22 per cent to reach an annual turnover of Rs79 billion (Approximately $800million). Nestlé Pakistan is serving the Pakistani consumers since 1988 and it also associates itself with 200,000 farmers in collecting milk and engages in a number of rural development programme for community development.

“Our reality is ‘Har Dam Pakistani’, (Every Moment Pakistani) and we are delighted to provide our consumers with products manufactured in Pakistan. More than one million Pakistanis, mostly dairy farmers, participate in our value chain and this investment is a further commitment to Pakistan and its people, and to our vision of providing Behtar Kal Hamara, (A Better Tomorrow For Us) to all,” said Magdi Batato, Managing Director, Nestlé Pakistan.

http://www.nation.com.pk/pakistan-news-newspaper-daily-english-onli...

Unilever announces $514 million investment in Pakistan, reports News Tribe:

Karachi: Unilever Plc., through its wholly owned subsidiary, Unilever Overseas Holdings Limited on Tuesday committed to invest circa €400 Million (US$514m Million, Rs.50 Billion) in acquiring the 24.92% of issued shares in its Pakistan subsidiary, Unilever Pakistan Limited, that it does not already own.

This follows price and buyout threshold determined by the Special Committee constituted at the Karachi Stock Exchange as per applicable delisting regulations.

€400 Million is the single largest foreign direct investment in the recent history of Pakistan and underlines Unilever’s commitment to a business established in the country in 1948.

For the last 65 years, Unilever has been working to create a better future every day for millions of Pakistanis, with brands and services that help people make sustainable living a common place. There is hardly a household that does not daily use one of its 27 brands in the home care, personal care, foods, beverages and ice cream categories.

It directly employs 2,000 individuals in addition to generating a further 6,000 jobs in the value chain. Over 95% of what it sells is manufactured in Pakistan. The company ranks as the Most Preferred Employer amongst business graduates.

Under the Unilever Sustainable Living Plan, the company focuses on improving health and well-being, enhancing livelihoods and reducing the environmental impact.

The aforementioned investment is subject to approval by Unilever Pakistan’s shareholders at an Extraordinary General Meeting to be held shortly.

http://www.thenewstribe.com/2013/04/02/unilever-commits-e400-millio...

Here's a Frontier Post piece on USAID helping dairy sector in Pakistan:

The USAID Dairy Project has spurred growth in Pakistan’s rural economy by helping women farmers increase their incomes and improve their livelihoods.

Realizing the pivotal role rural women play in Pakistan’s livestock sector, USAID is creating a pool of up to 5,000 locally-trained and readily-available female livestock extension workers to provide veterinary services and advice on the care and feeding of cattle to rural dairy farmers. The project also meets farmers’ basic needs by providing them with quality supplies for their animals, such as feed, vitamins, and medication.

The USAID Dairy Project is a catalyst to create new jobs and improve rural livelihoods in Pakistan. “My husband used to work at a private school, but he had to quit his job because of an illness. Now he is unemployed. I was educated through the 12th grade, but I could not find a job,” said Asma, a resident of Toba Tek Singh in Punjab.

“I was worried about my husband’s health and the fact that I couldn’t do anything for my children’s future even though I am educated. I couldn’t sleep at night. But then I heard about this USAID project. I am happy to say that I am now working in my village as a livestock extension worker, providing basic animal healthcare services in my village.”

USAID’s Dairy Project, launched in July 2011, selects dynamic rural women with a high school diploma and trains them in basic animal health management techniques and entrepreneurship. The program has already trained 2,470 unemployed rural women, helping them earn an average of 2,500 rupees per month. It aims to train an additional 2,530 farmers.

“I am advising people in my village about how to improve milk production,” Asma added. “This USAID project has connected us with livestock experts and pharmaceutical companies we didn’t know about before. So far, I have treated around 600 animals and earned 46,000 rupees. Now, our household is prosperous and my sick husband is getting treatment. I am also re-investing in my own agriculture business.”

Naazra, another beneficiary of the project and a resident of Cheechawatnee, was trained as a livestock extension worker and is now successfully running her own business supplying concentrated feed to local dairy farmers.

“USAID trainers introduced me to a quality manufacturer of cattle feed and gave me a mobile phone so I could easily contact suppliers and customers. I have earned 30,000 rupees in three months by selling quality feed. I used the money to develop my business and meet the basic needs of my family. I even bought a refrigerator, which has been very useful for the summer season.”

These women represent a symbol of change and are a testimony to the fact that careful interventions, designed based on community needs, can truly transform rural livelihoods. Women like Aasma and Naazra are helping to modernize Pakistan’s dairy sector in line with international practices.

The dairy and livestock sectors contribute about 11 percent to the gross domestic product of Pakistan. Forty-five percent of Pakistanis are employed in the agricultural sector. Most dairy farmers have only two to three cattle, and few have access to veterinary services that are crucial to improving milk yields.

Dairy farming is vital for the rural economy of Pakistan, and USAID’s extensive training programs for dairy farmers, women livestock extension workers, and artificial insemination technicians will continue to play an important role in transforming livelihoods in rural communities...

http://www.thefrontierpost.com/article/13010/