US venture investor Tim Draper, Swiss food giant Nestle, and American beverage titan Coca Cola are investing heavily in Pakistan's agribusiness.
Silicon Valley private equity investor Tim Draper, a well-known international venture capitalist, is quietly investing in Pakistan's agribusiness, the largest provider of food commodities in the Middle East, according to San Francisco Examiner.
The share of livestock in Pakistan's agriculture output nearly doubled from 25.3 percent in 1996 to 49.6 percent in 2006, according to FAO. As part of the continuing livestock revolution, Nestle is investing $334 million to double its dairy output in Pakistan, according to Businessweek. Reuters is reporting that the company has already installed 3,200 industrial-size milk refrigerators
at collection points across the country to start the
kind of cold storage chain essential for a modern dairy industry, and
give farmers a steady market for their milk. In another development on the infrastructure front, Express Tribune has reported that Pakistan Horti Fresh Processing (Pvt)
Limited has invested in the world's largest hot treatment plant to process 15 tons of mangoes per hour for exports. Hot water treatment will also help reduce waste of fruits and vegetables by increasing shelf-life for domestic consumption.
Riaz Haq
Here's an ET story on Burger King planned franchises in Pakistan:
KARACHI:
As anticipated for long, Burger King is finally coming to Pakistan, most likely in mid-2014, as MCR Pakistan, the franchisee of Pizza Hut in Pakistan, has entered into a master franchise agreement with Burger King Worldwide Inc, The Express Tribune has learnt.
While BK and MCR didn’t disclose the details of the agreement, sources familiar with the matter said that the bidding took place in Dubai a few weeks ago. Three parties, including a Dubai-based investor, participated in the bidding, which went in favour of the MCR Group.
There is not much skilled staff in the market, which may require engaging foreign trainers and the company hasn’t yet identified locations. According to the Dawn ad, BK’s first outlet will be opened in Karachi.
http://tribune.com.pk/story/577335/fast-food-boom-burger-king-final...
Related ET story on fast food:
The fast food boom in Pakistan is a really practical example. It was well-received by the local community and now enjoys healthy growth and stellar profitability despite fierce competition.
Introduction of multinational food franchises, initiated in the 1990s, was in the midst of non-existent local fast food restaurants. Today, the trend is spreading fast and the industry experts believe this to be just the beginning for the flourishing industry.
Some reasons for the spectacular rise of the industry are that Pakistani middle-class has welcomed the cuisine due to variety of bargain deals, products, atmosphere, attitude and strict hygiene standards, not to mention more disposable income.
-----------
“It is true that the middle-class is now the priority for many franchisers. At lease for us (McDonalds) the middle-class is the real target as they spend more on fast food of their disposable income,” said Sohail Malik, country manager of McDonalds Pakistan, while speaking to The Express Tribune. “With the introduction of plenty of choices available in the industry, the masses have gained awareness and this awareness is the key to healthy competition, he added.
Marketing is the other key for franchises to grow their respective businesses. Previously amid insignificant competition, the restaurants did not really latch on to the importance of marketing, but it is completely inverse in the present scenario as competition has grown and major international brands such as Hardees Incorporated, Fatburger and Kentucky Fried Chicken already operate in the country.
“Tough competition also proves to be a blessing for the consumers because of the choices and great bargain and promotional deals available,” said Bilal Hanif, a fast food enthusiast.
As far as the growth of the industry is concerned, according to McDonalds Pakistan’s country director, this is just the beginning...
http://tribune.com.pk/story/576600/fast-food-industry-competition-h...
Jul 15, 2013
Riaz Haq
Here's an Express Tribune story on educating Pakistani workers on value added agriculture:
The scope of corporate farming in Pakistan is growing, showing even greater potential for this sector in the coming years, mainly due to product diversification from many local and multinationals in food, beverages and dairy segments. But are the human resources of Pakistan related to this particular sector ready to convert threats in to opportunities, in terms of technology, innovation, researches.
For local companies and corporate farmers, finding such human resources might be a little tough, unlike multinationals which can rely on the transfer of knowledge from their global headquarters. Take for example the recent diversifications in the juices and dairy sectors in the past few years, from local and multinational consumer goods and food companies. Although these companies are now making profits, they are perturbed by the increasing gap of knowledge and human resources.
A few universities and government/NGO-supported institutions are working in this sector, providing basic and slightly advanced education and field training to students and farmers.
“There are basically two groups at the business level in this sector, corporate farmers who don’t know how to improve productivity and make greater financial gains; and those who know about business but don’t know much about practical farming,” said Magdi Batato, Nestle Pakistan’s Managing Director, while talking with The Express Tribune. Pakistan as an agrarian economy needs to develop a class of professionals educated and trained in the relevant discipline, he added.
One such initiative however has already been taken by Lahore university of Management Sciences (Lums) with collaborations of Nestle Pakistan. Economic development, poverty alleviation, enhancing productivity, managing supply chain issues, and research for further innovations through agribusiness is what the market wants. The success of the initiative taken by Lums and Nestle might force other business schools to introduce similar or more up to date courses.
“Such courses/certifications will have a cascading effect on the market as more entrepreneurs will be formed which will deliver much better then now”, said Doctor Arif Nazir Butt, Dean Suleman Dawood School of Business, Lums.
Companies related to dairy segments like Nestle, Engro Foods, Haleeb Foods are all contributing positively in rural economy by involving local dairy farmers in their network. Many locals have started successful modern dairy farming, JDW dairies among which is a prominent example.
Companies have now started projects of modern orchard farms for their survival. This once again is providing opportunities for locals to start modern orchard and tunnel farming. This portfolio would benefit low line farmers in future in terms of technical assistance, education, innovation, though the high price factor which the end consumer will pay to buy such products, as in case of dairy segment, is another story.
http://tribune.com.pk/story/663433/agri-business-educating-executiv...
Jan 25, 2014
Riaz Haq
Coca-Cola Co (KO.N) expects to start production in five new factories in Egypt and Pakistan over the next 18 months, seeing double-digit percentage growth in sales for both markets this year, its Middle East and North Africa president told Reuters.
---------
Surpassing Egypt for its sales growth, Pakistan will see three new plants open in the next 18 months in Karachi, Multan and Islamabad to serve the domestic market with sparkling drinks such as Coke, Fanta and Sprite.
"We watch the needle in Pakistan and almost every month we red-line on what our capacity is," Ferguson said, adding he expected sales growth of around 20 percent in Pakistan this year. "We're just scratching the surface there."
-----------
"Egypt is going to be one of our key anchor countries," Curt Ferguson said on Wednesday, citing the country's large and growing population as a big positive. "For sure the other key anchor will be Pakistan."
As part of a $500 million investment plan announced for Egypt in March, Coca-Cola will start constructing a new juice plant in 6th of October city near Cairo next year in a joint $100 million dollar project with Saudi Arabia's Aujan Coca-Cola Beverages Company.
The $500 million will be spent over the next three years, Ferguson said.
http://www.reuters.com/article/2014/06/18/us-coca-cola-egypt-pakist...
Jun 18, 2014
Riaz Haq
Here's Bloomberg on growing demand for processed milk in Pakistan:
Engro Foods Ltd., Pakistan’s second-largest dairy company, expects sales to increase 20 percent this year as an expanding middle class boosts demand for processed milk products in a nation where most people still buy the liquid raw and boil it.
Engro is seeking to almost quadruple annual revenue to 150 billion rupees ($1.52 billion) in seven years by adding higher-margin products such as infant formula and yogurt to cater to the world’s sixth-largest population, Chief Executive Officer Sarfaraz Ahmed Rehman said in an interview.
....Billionaire Mian Muhammad Mansha and the Fauji Foundation, a business group run by retired military officers, are seeking to enter the market dominated by Engro and Nestle Pakistan Ltd.
“I think the market will open up again, and there will be some growth coming through,” Rehman, 56, said. “Some of it might mean new competitors.”
Engro Foods shares rose 1.6 percent to 104.2 rupees at 9:35 a.m. in Karachi. They have declined 1 percent this year, valuing the company at 79.4 billion rupees. The KSE-100 Index has gained 15 percent.
Pakistan’s middle class has doubled to 70 million people in the past decade, driven by booms in agriculture and residential property, as well as jobs in telecom and media, according to Sakib Sherani, chief executive officer at Macroeconomic Insights in Islamabad. South Asia’s second-largest economy has a population of about 196 million.
----
Engro Foods is controlled by Engro Corp. a holding company with eight different businesses that has its origins in fertilizer manufacturing. Engro Corp. is controlled by Chairman Hussain Dawood, one of Pakistan’s most prominent businesspeople. Engro Foods started operating in 2006.
Among Engro Food’s most-popular products are liquid tea whitener Tarang and UHT milk Olpers. It also sells juice, ice cream and lassi, a flavored milk drink. Since February, the company has manufactured powdered milk. Engro may collaborate with global consumer companies in the future, Rehman said.
----
Consumer Spending
The company has about a dozen shops in Karachi under the Mabrook brand that sell pasteurized fresh milk.
The growth of Engro Foods and the prospects for greater sales of processed dairy products have drawn major Pakistani business groups to announce plans to enter the sector.
Consumer spending in Pakistan has increased at a 9.4 percent average annual pace in the last three years, compared with 4.3 percent for the Asia-Pacific region, according to Euromonitor International.
In addition to the planned dairy investments by billionaire Mansha and Fauji, Prime Minister Nawaz Sharif’s business group has said it will start to make cheese and butter and import Australian buffaloes.
ICI Pakistan Ltd. plans to buy 40 percent of the Pakistani distribution rights for fortified infant formula made by Japan’s Morinaga Milk Industry Company Ltd. from Unibrands Pvt. for 960 million rupees. The company expects to complete the deal in the next few weeks.
“There is huge potential,” ICI Pakistan CEO Asif Jooma said in an interview in Karachi on June 24. “I think we have just touched the tip of the iceberg.”
Tapal, a Pakistani manufacturer of tea products, may enter the dairy business, said Arfa Khatoon, a spokeswoman for Tapal in Karachi.
“In the end, all these consumer businesses are function of volume, you get enough volume, you’ll get profits way above,” said Rehman, who used to be the Pakistan country head for PepsiCo Inc. “Grab volume. That’s what I have grown up with.”
http://mobile.bloomberg.com/news/2014-06-25/dung-free-milk-desire-d...
Jun 26, 2014
Riaz Haq
From FAO on Pak Aquaculture growth:
Aquaculture in Pakistan is a recent development and in many parts of the country the management of the sector is still poor with culture practices varying across the different provinces. Two Asian Development Bank (ADB) assisted projects have assisted in strengthening the institutional structure, with infrastructure development such as the development of hatcheries and juvenile production, model farms, transfer of technology, human resource development as well as the strengthening of extension services.
Aquaculture has also received a substantial amount of government investment over the past decades and facilities are now in place that can provide the basis for a major future expansion in aquaculture production.
With the exception of trout culture in NWFP and the northern region, virtually all aquaculture currently carried out in Pakistan is pond culture of various carp species. Pakistan has not yet begun any coastal aquaculture operations although there is good potential all along Pakistan's 1 100 km coastline. Efforts have been made in the past to start shrimp farming along Sindh coast, which did not succeed, the main constraints being the non-availability of hatchery produced seed and a lack of expertise.
Freshwater fish culture in earthen ponds, both small and large reservoirs as well as community ponds was initiated in late 1960s by the provincial fisheries departments. From 1980 onwards the polyculture of Indian major carps and Chinese carps has been carried out in Punjab, Sindh and to some extent in NWFP.
According to the latest estimates, the total area covered by fish ponds across all provinces is about 60 470 ha, with Sindh having 49 170 ha, Punjab 10 500 ha, NWFP 560 ha and the other provinces (Balochistan, Azad Jammun Kashmir [AJK] and Northern Area [NA]) 240 ha.1.2Human resources:About 13 000 fish farms have so far been established across Pakistan, the size of these farms varies considerably, however, the average farm size ranges form 5-10 ha. No direct data on the number of fish farmers employed in this sector is available as fish farming in most parts of the country is carried out as an integral part of crop farming. According to a best estimates, about 50 000 people are either directly or indirectly employed in the sector.
-----------
About 13 000 fish farms have so far been established across Pakistan, the size of these farms varies considerably, however, the average farm size ranges form 5-10 ha. No direct data on the number of fish farmers employed in this sector is available as fish farming in most parts of the country is carried out as an integral part of crop farming. According to a best estimates, about 50 000 people are either directly or indirectly employed in the sector.
-----------
There has been a decreasing trend in inland fish production during the period between 2001 and 2003 resulting from severe drought and degradation of natural resources through pollution. Production from the inland capture fisheries has been affected most, inland aquaculture has, however, witnessed a relatively rapid increase.
The graph below shows total aquaculture production in Pakistan according to FAO statistics:
http://www.fao.org/fishery/countrysector/naso_pakistan/en
Jul 2, 2014
Riaz Haq
KARACHI: Hub Salt Refinery is all set to invest $130 million in establishing its fourth manufacturing plant near the coastal belt of Balochistan to meet the world’s growing demand of the mineral substance, its chief executive Ismail Suttar said.
Suttar, in an interview with The News, said the company is already producing a variety of edible and organic grades of salt for domestic and industrial use. It has a total installed capacity of 620 tons/day.
The major industrial consumers include chloralkali, pharmaceutical, textile dyeing, leather processing, oil drilling and petrochemical industries.
“With the new plant, the company can export $500 million worth of salt every year around the world,” Suttar said. “The project will have a foreign partnership with the local management.”
Currently, the company’s annual sales stand at Rs1.5 billion; 70 percent of incomes come from exports.
He said once the plant is built a dedicated jetty to export bulk salt will also be established.
Pakistan possesses huge reserves of all three grades of salt: rock salt, lake salt and sea (solar) salt.
“The international demand of salt is around 80 million tons and Pakistan can earn huge foreign exchange if it only meets the yearly shortfall of seven to eight million tons,” CE Hub Salt said.
Mexico and Australia are largely meeting the world’s demand. “Pakistan can capture the market share if policy makers think beyond textile and give attention to other potential-laden sectors, which can generate huge foreign exchange for the country,” he said.
He pointed lack of logistics and road network as the major reasons, making the exports unviable.
The company has been operating since 1985 with its plant at Hub Industrial Trading Estate. In 2008, it ventured in two more plants in Tharparkar. One of which was built in Ankerio, four kilometers from Rann of Kutch, with the investment of Rs300 million. It is solely catering to industries. The other plant is 80-kilometer away from the Islam Kot at Mukhai Salt Lake.
Suttar said building plants close to a lake and a mine helps the company to reduce cost of production and transportation.
Hub Salt has also built more than 80 organic salt therapy rooms around the globe, including Pakistan.
http://www.thenews.com.pk/Todays-News-3-295803-Salt-refinery-plans-$130m-investment
Jan 18, 2015
Riaz Haq
Nestle Pakistan Ltd., a unit of the world’s biggest food company, has started selling pasteurized fresh milk in a pilot project as it seeks to develop a new segment in the South Asian country’s $23 billion dairy market.
The company has been delivering plastic pouches of milk to 100 homes in Lahore for the past three months on motorbikes and three-wheeler taxis.
“It’s like when we started with our water gallons 20 years ago, which started with delivery to offices and households, it starts small and then spreads,” Nestle Pakistan Chief Executive Officer Magdi Batato, 56, said in an interview at the company’s headquarters in Lahore. “There is a potential, but it’s still niche in my view.”
Nestle wants to diversify in the world’s fifth-largest milk market, where 95 percent of dairy products sold are unprocessed with people buying the liquid raw and then boiling it. Companies already sell milk in ultra-high temperature form that has a longer shelf amid long hours of energy outages in the blackout-prone nation.
Pakistan’s dairy industry has a value of about 2.3 trillion rupees ($23 billion) a year, according to Zoya Ahmed Zaidi, an analyst at AKD Securities in Karachi. She projects the sector will increase in value by about 10 percent over the next five years.
‘Right Direction’
Engro Foods Ltd., a Pakistani dairy and juice company, discontinued branded shop sales of fresh, pasteurized milk after about a year in the southern city of Karachi in December. The company was hampered by the city’s frequent power outages, said Nauman Khan, research head at Foundation Securities.
Nestle is “going in the right direction as demand is rising for branded products with the upper-middle class becoming more hygiene-conscious.” Amreen Soorani, an analyst at Karachi-based JS Global Capital, said by phone. Home delivery “is more convenient and makes it more accessible.”
Pakistan’s sale of processed drinking milk products are projected to have more than double in the past five years to 134.6 billion rupees in 2014, and are forecast to reach 203 billion rupees by 2019, according to Euromonitor International.
Batato said he expects the Pakistani processed milk market to grow to 7 percent or 8 percent in five years. “It won’t be a step change like Turkey.''
Turkey gave farmers incentives to sell milk to documented processing companies as part of its efforts to join the European Union, which boosted the share of the pasteurized-milk sector to 70 percent from 10 percent, according to Batato.
Pakistan’s middle class more than doubled to 84 million in 2002-2011, bringing almost half the nation into that segment for the first time, according to a study by Dr. Jawaid Abdul Ghani, a professor at the Karachi School for Business and Leadership, published last year.
Full Capacity
Nestle started its Pakistani operations in 1988 in a joint venture with Milk Pak Ltd. before taking over management of that company four years later, according to company’s website. About 80 percent of revenue is generated from milk and nutrition products including baby formula and cerelac, while the rest comes from water and beverages, according to data compiled by Bloomberg.
The company’s powdered milk plants in Pakistan are running at ‘‘full capacity,” Batato said. “We are taking every single drop. There is an opportunity to import tactically a bit, but this is not our business model.”
http://www.bloomberg.com/news/articles/2015-02-26/nestle-pakistan-s...
Feb 26, 2015
Riaz Haq
The U.S. Department of Agriculture has approved Phase Two of the American Soybean Association’s (ASA) World Initiative for Soy in Human Health (WISHH) FEEDing Pakistan program to further develop Pakistan’s aquaculture sector and its use of feeds made from U.S. soy.
The additional one-year of funding allows WISHH to create even more demand for soy-based feeds, building upon the success of local fish farmers as well as private investment by the Pakistani feed industry.
“USDA support of FEEDing Pakistan boosts the growing soy-based feed industry in Pakistan, which has the sixth largest population in the world,” said WISHH Vice Chairman Lucas Heinen, a Kansas soybean grower. “WISHH’s strategy complements the U.S. Soybean Export Council’s work as Pakistan’s poultry industry now buys U.S. soybean meal and processing industry leaders import U.S. soybeans.”
Launched in 2011, WISHH’s FEEDing Pakistan has assisted approximately 2,000 Pakistani fish farmers and helped increase the market value of fish produced—tilapia—from zero at the beginning of the project to an estimated 450 mill rupees ($4.5 million USD) in 2014.
Photo: ASA WISHH’s FEEDing Pakistan project develops Pakistan’s aquaculture sector and its use of feeds made with soy. A 2013 U.S. Department of Agriculture Report projected a 525 percent increase in aquaculture production in Pakistan and a complementary increase in the demand for fish feed between 2012 and 2022.
FEEDing Pakistan tilapia averaged 600 grams per fish–double the weight of traditional Pakistan fish harvests.
“Pakistani fish farmers had never seen such results,” said R.S.N. Janjua, who leads the project as ASA/WISHH Country Representative. “The tilapia received a premium in the local market place and increased enthusiasm for further development of Pakistan’s aquaculture industry with soy-based fish feeds.
“Phase One of FEEDING Pakistan also demonstrated that Pakistan’s fish farmers, academics, private sector, and government officials are ready to help aquaculture fill the protein gap in Pakistan where 44 percent of children under the age of five experience stunting,” Janjua added.
The Kansas Soybean Commission supported WISHH’s Phase One work in Pakistan. Kansas State University conducted training courses on fish feed manufacturing and best management practices. A trainee and co-owner of a Pakistani company learned about potential for growth in the aquaculture industry. As a result, he ordered feed extrusion equipment from Extru-Tech International of Sabetha, Kansas and formally inaugurated Pakistan’s first extruder for the production of floating fish feed in July 2013. USDA’s funding allowed WISHH to ship 25 metric tons of U.S. hi-protein soybean meal, which jump-started the floating fish feed manufacturing.
A 2013 USDA Global Agricultural Information Network report projected a 525 percent increase in aquaculture production in Pakistan and a complementary increase in the demand for fish feed. Aquaculture production would increase from 120,000 tons in 2012 to 750,000 tons in 2022. The demand for fish feed will increase from 210,000 tons to 1.3 million tons, and soybean meal demand from 42,000 tons to 260,000 tons.
Phase Two will allow WISHH to provide additional training to improve feed management and increase feed production as well as feed demand, largely in Punjab and Sindh. Training will reach both large-holder farmers with 20-200 acres of ponds as well as farmers with 1-2 acres. WISHH will also assist the private sector that is interested in expanding feed manufacturing.
http://m.kmaland.com/ag/usda-funds-phase-of-asa-wishh-s-feeding-pak...
Jun 17, 2015
Riaz Haq
#India to import cows from #Pakistan to improve breed: Dhankar http://www.hindustantimes.com/haryana/will-import-cows-from-pakista... … via @htTweets
Haryana agriculture minister Om Prakash Dhankar has said that the state government may take help from Pakistan to improve breeding of cows and “restore the old glory” of the indigenous cow.
Dhankar, who was addressing a gathering of dairy farmers at Rohtak on Monday, said that Pakistan was known for the best Sahiwal breed of cows, so he might visit the neighbouring country to bring Sahiwal cows to improve the cow breed in Haryana.
The agriculture minister also said that Haryana’s cows had improved milk production in Brazil and Israel. “Now, the Haryana government may take help of Brazil and Israel to improve cow breeding of the state, if the need be,” he added.
He said that the state government had already inked an agreement with the Brazilian government to improve milk production, quality of cattle feed and environment for the animals.
The minister said that the state government had decided to increase daily milk production of the state to 2.5 crore litres from existing 2 crore litres and steps would be taken to increase milk production of the state from Punjab and Gujarat.
Later, Dhankar also honoured dairy farmers with cash awards up to Rs 20,000 for having highest milk producing cows.
COW BEAUTY CONTEST
Dhankar also announced that the Haryana government would organise a cow beauty contest, under which finest cows and calves from the state would be brought at one place. This would also help to improve the cow breed, he added.
The minister also announced a fund of Rs 2.10 crore to accommodate 1.17 lakh stray cows and calves in the gaushalas of the state.
Jul 21, 2015
Riaz Haq
The latest tunnel technology is being introduced among progressive growers of the Punjab to grow off-season vegetables as it is impossible to grow summer vegetables without tunnels during December and January.
A spokesman of the agriculture department told here on Wednesday that summer vegetables like cucumber, tomato, sweet chilies, green chilies, pumpkin, sponge gourd, bitter gourd, vegetable marrow, red gourd, Brinjal, water melon, musk melon could easily and successfully be grown in low, walk-in and high tunnels.
He said that the tunnel grown vegetables were covered by green fiber sheets to protect these vegetables from severe cold and frost during December and January. He recommended the vegetable growers to get proper training of tunnel farming and start nursery cultivation of tomato, sweet chilies, green chilies, and Brinjal from the mid of September.
http://www.pakistanherald.com/news/7562/09-september-2015/tunnel-te...
Sep 16, 2015
Riaz Haq
Beverage Giant Coca Cola to invest $350m in #Pakistan. New plants in #Karachi #Lahore #Islamabad http://www.pakistantoday.com.pk/?p=449113 via @ePakistanToday
A delegation of the Coca Cola Company led by its President Eurasia & Africa Group, Nathan Kalumbu, met Finance Minister Senator Ishaq Dar on Thursday and briefed him about the company’s investment plans in Pakistan.
Finance Minister Ishaq Dar welcomed the delegation and said the present government offered a liberal investment regime and facilitated all foreign investors in accordance with existing regulations of the country. He briefed Kalumbu about the economic achievements of the government and said having achieved economic stability it was now on the path of economic growth and job creation.
Nathan Kalumbu apprised the finance minister that encouraged by the economic turnaround and stability achieved by Pakistan in the last two years and the positive rating accorded to it by international rating agencies, the Coca Cola Company has already started implementing its plan to invest over US$350 million in the country. He added that Coca Cola was already a leading US investor in Pakistan.
Unveiling the investment plan, Kalumbu stated that three new Coca Cola plants were being established at Karachi, Multan and Islamabad and the fresh investment would further contribute to strengthening of economy and job creation. He said Pakistan was ranked 7th in size in Coca Cola’s Eurasia and Africa group which includes 84 countries and the company accords it due importance in terms of production, marketing and other commercial activities.
Members of the delegation which also included Curtis A. Ferguson, President Coca Cola Middle East & North Africa (MENA), Rizwanullah Khan General Manger Pakistan and Afghanistan Region, John Mathew Galvin, General Manger Coca Cola Beverages Pakistan Ltd and Fahad Qadir, Director Public Affairs & Communications Pakistan & Afghanistan Region, thanked the finance minister for sparing time out of his busy schedule to meet them and assured that the Coca Cola company would do its utmost to contribute positively to Pakistan’s economy.
Oct 8, 2015
Riaz Haq
Over last two years: #Pakistan’s food, beverage exports to #UAE increase 27% http://tribune.com.pk/story/1046415/over-last-two-years-pakistans-f... …
Pakistan’s food and beverage exports to the United Arab Emirates (UAE) have increased 27% in the last three years, making it an area worthy of attention after textiles, said the consul general of Pakistan in Dubai.
While rice remains the country’s top export commodity to the Emirates, the food segment remains a potential area as Pakistan continues its fight to increase foreign exchange revenue through exports.
“Pakistan’s food and agro-products exports touched $0.5 billion last year compared to 2012’s number of $362.4 million,” said Commercial Counsellor of Dubai Consulate Saeed Qadir, adding that Pakistan had boosted sale of its traditional agricultural products and expanded reach into areas such as processed meat and poultry products, tea, concentrated milk and cream, certain fruits and vegetables, spices, herbs and confectionaries.
Rice remains Pakistan’s leading food export to the UAE. According to TDAP figures, Pakistan’s rice sales jumped 11 fold to $207.8 million compared to the last two years. Meat and processed frozen food exports crossed the $100 million mark in the last three years.
As for fruits and vegetables, exports increased over 100% in three years. Sales of dried fruits and vegetables to the UAE rose to $9.7 million and $7.8 million, respectively. Exports of potatoes reached $5.9 million last year – an eight-fold increase compared to the 2012 figures, while fresh and frozen meat exports crossed the $50 million mark.
“Moreover, for this sector, there awaits a major export push as more than 90 Pakistani companies are taking part in the Gulfood 2016; the world’s largest annual food and hospitality trade platform, scheduled in Dubai later this month,” said the CG.
“In this exhibition, Pakistani exhibitors will be looking to source new buyers for a wide range of Pakistani food and agro sector products including fresh and frozen foods, rice, fruits and vegetables, sauces, nuts, sweets, confectionery and tea,” said Consulate General of Pakistan, Dubai Consul General Javed Jalil Khattak.
“Buyers can leverage Pakistan’s cost-competitiveness, lower transport costs and delivery time, and the quality, freshness, taste and aroma of our diverse produce”, he added.
The Pakistan pavilion at Gulfood 2016 will feature among 117 national and trade association pavilions. There will also be a first-time group participation from Russia, Costa Rica, Belarus, Mauritius and New Zealand (returning after a six-year break). In all, some 5,000 international companies from 120 countries and more than 85,000 food and beverage, wholesale, retail, distribution and hospitality professionals from five continents will take part in the event.
Data released by global macroeconomic research firm, BMI International, shows that Pakistan remains a buoyant market for consumer sales and food and beverage investment. The firm is forecasting a 9.9% per capita compound annual growth rate (CAGR) in food consumption until 2019, a 3.2% per capita CAGR growth in domestic soft drinks sales and 9.5% per capital CAGR in mass grocery retail sales.
“There are enormous business opportunities emerging in Pakistan for both food and beverage imports and exports, as evident by the recent international investment in manufacturing plants in Karachi, Multan and Islamabad,” explained the Exhibitions and Events Management Dubai World Trade Centre Senior Vice President Trixie Lohmirmand.
Feb 13, 2016
Riaz Haq
#Netherland's FrieslandCampina International Holding BV to buy #Pakistan's #Engro Foods for $460 million. http://tribune.com.pk/story/1058739/dutch-company-to-acquire-engro-... …
A Dutch dairy cooperative is set to buy out a Pakistani food giant with an investment of around $460 million, in what would amount to the largest private sector takeover by a foreign firm in the country’s history.
FrieslandCampina International Holding BV intends to acquire a 51 per cent stake of Engro Foods Limited, one of the largest listed companies at the benchmark Pakistan Stock Exchange (PSX), a notification on the bourse’s website said Thursday.
The deal would bring in a minimum investment of $460 million based on the Pakistani firm’s present stock value.
Engro Foods’ 2015 profit up 256%
“Yes, it is the largest ever deal in the private sector,” analyst Faisal Shaji, head of research at Standard Capital Securities, said.
Citibank Pakistan is the financial advisor.
Shahji added the deal would be closely watched by international investors eyeing the emerging South Asian economy.
“Pakistan is already in the radar range of the world corporate sector and this deal further lifts its image outside,” he said.
If finalised the Dutch takeover would boost Pakistan’s foreign direct investment statistics.
FDI was down by 57 per cent to $336 million in Pakistan for the first seven months of the current financial year compared to the corresponding period in the last financial year ending June 2015.
Pakistan expects its economy to grow by 4.5 percent for the 2015-16 financial year due to lower oil prices, planned improvements in the energy supply, investment related to the China Pakistan Economic Corridor (CPEC), buoyant construction activity, and acceleration of credit growth.
Mar 3, 2016
Riaz Haq
Over 300 #US dairy cows worth $700K exported to #Sialkot #Pakistan by Boeing 747 flight from #Miami on March 1, 2016 http://www.bradenton.com/news/business/article64983542.html …
Renee Strickland opened the door to U.S. cattle exports to Pakistan when she chartered a Boeing 747 and flew with 302 dairy cattle to Sialkot, Pakistan, on March 1.
The long flight was the easy part. It came after five years of frustration, planning, perseverance and negotiation.
"This was a real nail biter. We had three weeks to put this shipment together, and I got my passport at midnight, three hours before the departure to Pakistan," she said.
"It was a pressure-cooker experience," Strickland said, recalling how she brokered the sale and gathered cattle from Okeechobee dairies, north Florida and Kansas.
She could only wrangle those cattle after getting clearance from the U.S. and Pakistani governments, securing a health protocol, overcoming the language barrier and closing the deal with tough negotiators in Pakistan.
"A lot of times, I just kind of thought, my gosh, I am knocking my head against a brick wall," Strickland said.
Even so, Strickland said a lot of people "jumped through hoops to make this happen," citing her partners in Pakistan and the U.S. Department of Agriculture.
"I have a well-respected partner in Pakistan whose family has been in agriculture for 500 years. He is a gentleman, a good person and well respected," she said.
Dix Harrell of the USDA said the beef export market to Pakistan and many other countries closed after the outbreak of bovine spongiform encephalopathy, more commonly known as mad cow disease, in the United States.
Mad cow disease can have an incubation period as long as eight years.
"I know that in the last 10 years, the market wasn't really open to us," Harrell said. "After we had our first case, a lot of countries banned live cattle."
Strickland always flies with the cattle she brokers in sales to ensure no animal is hurt or stressed.
"The cattle traveled great and the unloading went smoothly," she said.
She has previously brokered and delivered cattle to Cuba, Oman, Trinidad and Tobago, Nicaragua, Honduras, Costa Rica, Panama, Guyana and Ecuador.
Pakistan is an attractive market because, with 182.1 million people, it has one of the world's largest populations. In addition, Pakistan is one of the world's largest dairy producers, ranking fifth globally in milk production.
As recently as 1986, buffalo produced most of the milk in Pakistan. Pakistani dairies, however, have been improving their cattle herds and dairy cows are now the dominant producers.
"We are known to have some of the best milking cattle in the world," Strickland said of the attractiveness of U.S. stock.
The Pakistani deal was valued at about $700,000.
"They are getting one heck of a deal," Strickland said, noting she had to sharpen her pencil in dealing with Pakistani buyers. "We are trying to open up this market. It's the most challenging export I have ever had in so many ways."
Renee Strickland, and her husband, Jim Strickland, are preparing a second airborne delivery of cattle to Pakistan for the first week of April. Jim Strickland will be the one handling escort duties next time.
While in Pakistan, Renee Strickland, an avid polo player, got to visit the Lahore Polo Club.
"I will be sending some polo ponies on my next shipment. Polo is a huge sport in that country," she said.
Read more here: http://www.bradenton.com/news/business/article64983542.html#storyli...
Mar 9, 2016
Riaz Haq
How #halal food became a $20 billion hit in #America http://bloom.bg/2cIm3Ic via @business
Sometimes, culinary trends move in sync with political ones. Sauerkraut was renamed “liberty cabbage” when the U.S. was at war with Germany, and a more recent falling-out with the French led to the invention of “freedom fries.”
But sometimes they move in mysterious ways. In an election season dominated by Donald Trump, Muslims haven’t always been made to feel welcome in America. Meanwhile sales of halal food, prepared according to Islamic law, are surging -- and not just among the fast-growing U.S. Muslim population: Adventurous millennial foodies are embracing it too.
Shahed Amanullah could only find about 200 places that served halal food in 1998, when he launched a website to help Americans find it. Today, he’s tracking 7,600, and he says halal is making inroads even among people who are wary of Muslims. “Food is a great medium for cultural sharing,” Amanullah said.
There’s a well-trodden path in America’s food culture, leading from ethnic-specialty status to the mainstream. It happened long ago with Italian cuisine, and to some extent with kosher food, which offers a closer parallel to halal. Like the Jewish equivalent, Islamic rules mandate humane treatment of animals as well as other special preparations.
At every level of the U.S. food chain, halal already occupies a small but rapidly expanding niche.
In grocery and convenience stores and similar outlets, research firm Nielsen estimates that sales reached $1.9 billion in the 12 months through August, a 15 percent increase from 2012.
Overall, from restaurants to supermarkets, halal sales are projected at $20 billion this year, up by one-third since 2010, according to the Islamic Food and Nutrition Council of America, which certifies halal food and promotes education on the topic
Whole Foods Market Inc., which has been among the pioneers, ranks halal among its fastest growing categories, with double-digit sales growth in each of the last five years. It’s been running Ramadan promotions since 2011.
For early-adopting retailers, there’s been some flak -- especially in the corners of social media where Islam comes under regular criticism. Amanullah said his “where-to-find-it” website is often used in such circles as a “who-to-boycott” guide -- though he said such efforts typically backfire and end up helping his business.
When Whole Foods ran its initial Ramadan campaign, it was criticized for failing to tout other religious holidays. Rick Findlay, global grocery coordinator for Whole Foods, says the company wasn’t deterred.
“People look to Whole Foods to be that trend setter,” he said, “We’re happy to be on that cutting edge and take some risks.”
Oct 17, 2016
Riaz Haq
#Livestock contributes 11.6%, representing abt 60% of #agriculture output, to #Pakistan GDP http://pakobserver.net/livestock-sector-contributes-more-to-gdp-value/ … via @Pakistan Observer
The livestock sector contributed more to GDP value addition in FY16 than large-scale manufacturing, according to the State Bank of Pakistan’s annual State of the Economy report.
The contribution of livestock was 11.6pc against 10.9pc of large-scale manufacturing (LSM), the report reveals; but the sector itself grew only 3.6pc, below the 4pc level growth it had recorded in FY15.
Since the beginning of this century, the livestock sector has been growing steadily however more growth in the sector has come through value-addition in meat and milk processing and less through increase in animal headcount.
“Between FY01-10 we saw a growth (in the livestock sector) supported largely by milk processing; from then on both milk and meat processing have been fuelling growth,” says a senior official of the Ministry of National Food Security and Research.
Milk and meat production, processing and value-addition have achieved several development milestones over the years. The dairy manufacturing industry, which took root though packaged milk still accounts for 5pc of our total milk production.
The establishment of the Pakistan Halal Authority and a set of incentives including tax exemptions and the reduction in customs duty on the import of machinery for meat processing for setting up fresh abattoirs are expected to further boost livestock growth.
Immediately after the authority started issuing Halal certificates, four meat exporting companies got supply order conformations from Malaysia, a hitherto unexplored meat export market, industry sources say.
----
While milk and dairy product companies continue to thrive, mainly on local demand, meat processing firms are more dependent on exports. They are now able to explore new markets after having access to Halal certification facility at home. Previously, they had to get their export consignments certified as Halal from foreign sources.
Fauji Meat a subsidiary of Fauji Fertiliser that commenced operations this April — has come in as a big morale booster. With a daily production capacity of 100 tonnes of meat (85 tonnes beef and 15 tonnes mutton), the company has started exporting both frozen and chilled meat products primarily to Kuwait and a few other countries, officials say. Al-Shaheer Corporation, an old meat exporting company, has not only maintained its market share in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE but its Meat One and Khaas Meat are doing a roaring business in local markets as well.
In addition to selling its meat products through upscale superstores and its own outlets, the company also makes bulk sales to local institutions, including top hotels and restaurants.
Both Fauji Meat and Al-Shaheer Corporation have their own large animal breeding farms to ensure uninterrupted supply of healthy animals for regular slaughtering. The fact that after 2010, meat processing and exports have made real big progress is evident in several developments. First, it was towards the end of 2010 that the All Pakistan Meat Exporters and Processors regrouped as a formal trade association and now boasts 33 registered members engaged in meat exports to GCC nations, Afghanistan and some North African countries.
Second, meat exports have grown rapidly—from 72$m in FY09 to $269m in FY16. Besides, during the current decade local sales of processed meat have taken a quantum leap so that one can find neatly-arranged frozen and chilled primal cuts of red meat in most sizeable superstores in the big cities.
Dec 3, 2016
Riaz Haq
#Pakistan expects bumper harvest of #cereals #wheat, #rice in 2017 with better prices for farmers http://reliefweb.int/report/pakistan/giews-country-brief-pakistan-3... … via @reliefweb
Favourable prospects for 2017 wheat crop production
Planting of the 2017, mostly irrigated, ‘’rabi’’ (winter) wheat crop is currently underway and will continue until mid-December. Near-average irrigation water supplies in the main wheat-growing areas of Punjab and Sindh provinces are benefitting plantings and early crop development in these areas. However, below-normal rains hindered planting operations in the minor rainfed-producing ‘’barani areas’’, located in the northern parts of Punjab Province.
Current official forecasts put the 2017 wheat output at a record level of 26 million tonnes, 2 percent up from the 2016 bumper output. This forecast rests on expectations that adequate water availability in the main reservoirs will boost plantings, while the good supply of quality seeds, fertilizers and herbicides will increase average yields.
Above-average 2016 summer cereal crops estimated
Harvesting of the 2016 summer (monsoon) season maize and rice crops is almost complete. FAO estimates the 2016 paddy and maize outputs at 10.3 million tonnes and 5.2 million tonnes, respectively, slightly above the previous year’s production. This result follows generally favourable weather conditions during the cropping season, coupled with an adequate water supply for irrigation and good access to fertilizers and other basic inputs.
Rice exports to increase in 2016
FAO forecasts rice exports in 2016 at 4.4 million tonnes, representing a 7 percent increase from the 2015 level, thanks to competitively priced non-basmati supplies.
Wheat exports in the 2016/17 marketing year (May/April) are forecast to increase from the previous year’s low level to 800 000 tonnes, in line with the 2016 overall good output and large carryover stocks.
Prices of wheat and wheat flour strengthened in recent months
Prices of wheat and wheat flour, the country’s main staples, have strengthened in recent months, following seasonal patterns, but remained below their year-earlier levels owing to good availabilities following a bumper 2016 crop.
Food security conditions overall stable but concerns remain in Tharparkar District and northern Pakistan
Overall, the food supply situation is stable following two consecutive years of good harvests and large carryover stocks of the main staples. However, food security concerns remain in some areas, particularly in Tharparkar District and northern Pakistan.
In Tharparkar District (southeastern Sindh Province) and the surrounding areas of Sindh Province, a below-average drought-affected cereal production for the third consecutive year, coupled with losses of small animals, especially sheep and goats, has aggravated food insecurity and caused acute malnutrition.
Food insecurity has been exacerbated by the lingering negative impact of the 2015 floods; the provinces of Sindh, Punjab and Khyber Pakhtunkhwa were most affected. Official assessments reported the loss of lives and severe damage to housing, infrastructure and agriculture. Households in northern parts of the country have also not fully recovered from the impact of the earthquake in October 2015.
The Federally Administered Tribal Areas (FATA) and Khyber Pakhtunkhwa, located in northern Pakistan, are still affected by the return process after the large scale displacement (312 000 families or around 1.9 million people) due to insurgency in FATA. According to OCHA estimates, as of October 2016, over 1.3 million refugees remained displaced in northern Pakistan. These populations rely mainly on humanitarian assistance, including food aid, healthcare and other necessities.
Dec 3, 2016
Riaz Haq
Livestock is an important sector of
agriculture (in Pakistan). Its role is pivotal towards rural
socio economic development. Nearly 8
million families involved in livestock raising
deriving more than 35% income from
livestock production activities. It is central
to the livelihood of the rural poor in the
country. It is a source of cash income,
providing a vital and often the only
source of income for the rural and most
marginal people. It can play an important
role in poverty alleviation and foreign
exchange earnings for the country.
Livestock contributed approximately
58.6% to the agriculture value added and
11.6% to the overall GDP during 2015-
16 compared to 56.4% and 11.7%
during the corresponding period last year,
respectively. Gross value addition of livestock
at constant cost factor of 2005-06
has increased from Rs. 1247 billion
(2014-15) to Rs.1292 billion (2015-16),
showing an increase of 3.63% over the
same period last year.
Livestock of Pakistan include cattle,
buffalo, sheep, goat, camels, horses, asses
and mules and they produce milk, meat,
wool, hair, bones, fat, blood
eggs, hides and skins
among which milk and meet
are the major products.
Besides production, these
animals are also used for
draught purposes. As per
IFCN (International Farms
Comparison Network) Dairy
Report 2014, Pakistan is 3rd
largest milk producing country
in the world. Milk is produced
by buffalo, cattle, sheep, goat and
camel but being major contributor in milk
production, cattle and buffalo are considered
as major dairy animals.
More than 96% of the milk produced
in Pakistan comes from cattle and buffalo.
The rest of it is collectively produced by
sheep, goat and camel which, most of the
time, is not sold as such, rather consumed
domestically or mixed with buffalo and
cow milk. Estimated current National
livestock Population based on National
Livestock Census 2006 and Economic
Survey of Pakistan 2014-15 are given in
Table-1.
http://www.foodjournal.pk/2016/May-June-2016/PDF-May-June-2016/Dr-N...
Jul 19, 2017
Riaz Haq
#Qatar to import #food products worth $1 billion from #Pakistan | Pakistan | http://thenews.com.pk
https://www.thenews.com.pk/print/217222-Qatar-to-import-edibles-wor...
In the wake of strained relations between Saudi Arabia and Qatar, Doha’s high-powered trade delegation has visited Pakistan last week for exploring opportunities for importing meat including beef and mutton, chicken, rice and dairy products worth over a billion dollar.
Qatar is a rich country having potential to import over a billion dollar food items from Pakistan. “In the upcoming Special Economic Zones (SEZs) which will be established with the help of China, proposals are under consideration to establish modernised farm houses with the purpose to boost exports of live animals as well as of both beef and mutton manifold in years ahead,” said the official sources.
Earlier, Qatar used to import major chunk of food items from Saudi Arabia but after strained relationship with Gulf States now Qatar is exploring new markets to import food items and Pakistan can become potential player in this regard in weeks and months ahead.
Qatar is the 38th largest export economy in the world as in 2015, their exports stood at $79.9 billion while imports were $34.7 billion, resulting in a positive trade balance of $45.2 billion. In 2015 the GDP of Qatar was $164 billion.
The top exports of Qatar are Petroleum Gas($44.3B), Crude Petroleum ($17.3B), Refined Petroleum ($6.47B), Ethylene Polymers($2.26B) and Nitrogenous Fertilizers ($1.22B), using the 1992 revision of the HS (Harmonized System) classification.
Its top imports are Cars($2.87B), Planes, Helicopters, and/or Spacecraft ($2.6B), Gas Turbines ($1.09B),Aircraft Parts ($1.04B) and Jewellery ($970M).
The top import origins are China ($3.51B), France ($3.23B), the United Kingdom ($3.08B), the United States ($2.96B) and the United Arab Emirates ($2.76B).
Qatar borders Saudi Arabia by land and the United Arab Emirates, Bahrain and Iran by sea. In 2015, Qatar imported $34.7 billion worth of products making it the 58th largest importer in the world. During the last five years, the imports of Qatar have increased at rate of 8.5 percent increased from $22.8 billion in 2010 to $37.7 billion in 2015.
The recent imports are led by cars, which represents 8.27 percent of total imports of Qatar, followed by planes and then other items.
President Federation of Pakistan Chamber of Commerce & Industry (FPCCI) Zubair Tufail on Monday confirmed to this paper that Qatar’s trade delegation paid visit to Pakistan last week for exploring trade opportunities and they were interested in importing food items.
“We have helped them to establish contacts with major business houses involved in food items’ export from Pakistan and it is expected that exporters could get their potential shares in months and years ahead,” he concluded.
Jul 19, 2017
Riaz Haq
Equipped With New Test Capabilities, Laboratory in #Pakistan Helps Improve #FoodSafety, Increase #Meat #Exports https://www.iaea.org/newscenter/news/equipped-with-new-capabilities... …
The Pakistani Veterinary Residue Laboratory in Faisalabad, a food laboratory supported by the IAEA and the Food and Agriculture Organization of the United Nations (FAO), has acquired the capability to undertake state-of-the-art tests to certify the safety of food. It has recently earned International Organization for Standardization (ISO) accreditation, and officials expect this to contribute to increased meat exports thanks to food safety certificates the lab will be able to issue for the first time.
“Pakistan produces some of the world’s finest tasting foods, especially meat and other animal products,” said Ahmad Waqar, who is in charge of this cooperation at the Permanent Mission of Pakistan to the IAEA. “In the past, Pakistan has had exports rejected because they did not comply with the food safety standards of importing countries. This resulted in safety concerns, significant economic losses and food waste.”
The livestock sector contributes 12 percent of Pakistan’s GDP. In 2010, the European Union rejected 134 food export consignments due to the presence of contaminants. This raised concerns in Pakistan about the need to improve its food safety control system.
Veterinary drug misuse comes with consequences
As with many farmers around the world, it is common practice to administer medicines to animals to keep them healthy, rather than to treat disease when it occurs. “From a food safety point of view, problems especially arise when farmers do not have correct advice on what drug to buy and use, or do not follow instructions on how, when and how much to administer or how long to wait until the drugs have cleared out of the animal’s body,” said James Jacob Sasanya, food safety specialist at the Joint FAO/IAEA Division of Nuclear Techniques in Food and Agriculture. If drugs remain in the animals, they, or their residues, may end up in food products and could pose a health hazard to consumers.
For meat and other food products to be accepted as safe for consumption, they must be tested, among others, for veterinary drug residues to ensure these residues do not exceed safety or reference limits. “Pakistan did not have the capacity to conduct these tests until the new laboratory became operational,” Waqar said.
The laboratory was established by Pakistan’s Nuclear Institute for Agriculture and Biology of the Pakistan Atomic Energy Commission. The IAEA’s technical cooperation programme helped by providing the laboratory with state-of-the-art equipment, and supported training opportunities at various European reference laboratories and expert missions to assist with implementing measurement protocols and methods as well as regular technical advice. Through this support, the laboratory has increased its testing capability and received the accreditation.
The certificate is valid for three years for the analysis of seven types of antibiotics and hormone analyses in food products. As a result, Pakistan now has the capacity to process over a thousand food samples each year.
Sheep products used to make sausages are one of the key export products and are monitored by 13 quarantine centers in Pakistan. These centers rely on credible laboratory testing, which for the first time is now available at the Veterinary Residue Laboratory and internationally recognized. “In the absence of its own national analytical capabilities, tests had to be outsourced to other countries, which is both expensive and time-consuming,” Sasanya said. “With this new achievement, Pakistan can now rely on its own analytical capabilities.”
Several countries from around the world are benefitting from this nuclear-derived technique and the assistance of the IAEA and the FAO for its implementation, including Botswana and Morocco.
Jul 27, 2017
Riaz Haq
#Qatar taps #Pakistan market with direct #Karachi-#Doha route amid #Gulf blockade @AJENews
http://www.aljazeera.com/news/2017/09/qatar-taps-pakistan-market-gu...
With UAE’s regional hub off-limits, direct trade routes are opening between Doha and Karachi to boost economic ties.
Doha, Qatar - A Qatari shipping company is set to launch what it calls the fastest direct service between Doha and the Pakistani port city of Karachi this week, as the Gulf state seeks to establish new trade routes amid a land, air and sea blockade from its Arab neighbours.
State-run conglomerate Milaha is overseeing the weekly venture, with the first vessel due to arrive at the newly-inaugurated Hamad Port outside the Qatari capital on September 11 following a transit time of four days - compared to a normally six-to-seven-day journey.
"We have been vigorously ramping up our operations between Qatar and key Asian markets in response to growing demand from traders, importers, and exporters on both sides," said Abdulrahman Essa Al-Mannai, Milaha president and chief executive officer, in a statement ahead of the launch.
The move comes as Qatar counters economic sanctions imposed by Saudi Arabia, the United Arab Emirates (UAE), Bahrain and Egypt three months ago.
The four Arab nations severed all diplomatic and trade ties with Qatar on June 5 over allegations of supporting "terrorism". Qatar strongly denies the claims.
Prior to the dispute, most of Doha's shipments to and from Pakistan docked at Dubai's Jebel Ali port - a regional hub.
But with the Emirati port now out of bounds as a trans-shipment centre, Qatari companies are increasingly exploring alternative links to effectively penetrate the Asian market.
Besides the direct route, Qatar and Pakistan are also trading via Oman's Sohar port.
"We used to trade via Jebel Ali in Dubai, but because of the restrictions and the ongoing Gulf situation, we are now going direct so Qatar can capture Pakistan's market," Babar Rauf, sales and marketing manager of Rahmat Shipping, Milaha's Pakistani agent, told Al Jazeera.
Earlier in August, Qatar Ports Management Company, Mwani, also kickstarted its direct shipping line between Doha and Karachi operated by the Asian firm Wan Hai.
'Win-win'
Milaha's new service, called PQX, will mainly bring perishable products and other food items, such as seafood, fruits and vegetables, from Pakistan.
Sep 5, 2017
Riaz Haq
THE EXPRESS TRIBUNE > PAKISTAN > PUNJAB
First Baskin-Robbins store opens in Lahore
By Our CorrespondentPublished: October 12, 2017
https://tribune.com.pk/story/1529378/first-baskin-robbins-store-ope...
One of the world’s largest chain of ice cream stores, Baskin-Robbins has opened its doors in Lahore.
“We’re delighted to open our first ever Baskin-Robbins store in Pakistan, and share our range of delicious ice cream flavors with the people of Pakistan,” the Vice President of Dunkin’ Brands International, John Varughese said in a statement.
“Our store will become the place to be where our visitors will make many happy moments with their friends and family, while enjoying our delicious ice creams and other tempting frozen treats.”
The ice cream store will feature flavours available internationally, including classics like Pralines ‘n Cream, Jamoca® Almond Fudge, Mint Chocolate Chip and Very Berry Strawberry and regional favorites like Mango Tango and Tiramisu.
AHG Flavours, which had announced obtaining licence for and opening of 35 Baskin-Robbins stores across Pakistan, expressed excitement at the launch.
“We’re excited to officially bring the world famous Baskin-Robbins brand to Pakistan, along with its range of premium ice creams and innovative ice cream treats,” the company said. “We look forward to this shop becoming an integral part of the local community, and to opening many more locations across Pakistan in the months and years ahead.”
Oct 12, 2017
Riaz Haq
Baskin Robbins appoints creative agency in Pakistan Shortly after signing a master licensing agreement with Baskin Robbins, AHG Flavours has hired Ogilvy & Mather to help develop the brand in Pakistan.
Read more at: http://www.campaignasia.com/article/baskin-robbins-appoints-creativ...
http://www.campaignasia.com/article/baskin-robbins-appoints-creativ...
Baskin Robbins has named Ogilvy & Mather as its creative agency in Pakistan, charged with its go to market strategy and launch campaign. AHG Flavours Limited has a master licensing agreement with Baskin Robbins to develop the brand in Pakistan and launch 35 shops across the country, with the primary focus on the city of Lahore. Ogilvy & Mather was tasked to aid in the brand awareness across the portfolio of classic ice cream flavours as well as the range of custom ice cream cakes, frozen beverages, ice cream sundaes, and takehome ice cream treats. According to Asim Naqvi, the CEO of Ogilvy & Mather in Pakistan, his agency was tasked with creating the digital strategy and create a campaign deployed with outdoor media, social media, and the upcoming launch event. "We are pleased to be collaborating with Irfan, Harris and their team to begin developing the Baskin-Robbins brand in Pakistan by bringing our wide range of delicious ice cream flavours, cakes and other treats to Pakistani customers," said John Varughese, Vice President, Dunkin' Brands International. According to a study by Euromonitor in 2016, the ice cream and frozen desserts market in Pakistan was valued at US$152 million, with Unilever and Engro Foods categorized as market leaders from a volume perspective, due in large part to their low price point. Brand marketers distinguish ice cream brands into three distinct categories based on consumption behaviour: in-home, impulse, and out of home. The in-home ice cream category refers to the large tubs of ice cream that are purchased for family consumption in a home or large gathering. The impulse ice cream category refers to those sold in sticks, cups, and cones. The out of home ice cream category refers to what is consumed in HoReCa, recreational areas, and cinemas. Baskin Robbins effectively operates in all three categories with its own retail presence with a dine-in option, a distribution presence in major retail outlets, and as an option on the dessert menu. In Pakistan, the impulse category makes up roughly 70 percent of the category according to Falak Jalil, the former brand manager for Walls at Unilever. She says that in Pakistan half of ice cream consumption consists of kulfi (a local delicacy) with the majority being flavoured. The impulse category in Pakistan is dominated by Unilever's Walls and Engro Foods' Omore. On the international modern trade retail side, Baskin Robbins will be competing with London Dairy, Ben & Jerry's, Haagen Dazs, and Movenpick. On the dine-in side within its price points, Baskin Robbins will compete for the share of the throat with Johny Rockets, Movenpick, and Cold Stone. The first store of Baskin Robbins will open tomorrow in Lahore.
Read more at: http://www.campaignasia.com/article/baskin-robbins-appoints-creativ...
Oct 12, 2017
Riaz Haq
Pakistan launches its biggest halal plant
01-Jun-2016 By Shahid Husain, in Karachi
Pakistan’s largest conglomerate, the Fauji Group, has launched the country’s biggest halal abattoir, meat processing and exporting unit near Port Qasim, Karachi.
HTTPS://WWW.GLOBALMEATNEWS.COM/ARTICLE/2016/06/01/PAKISTAN-LAUNCHES...
Fauji Meat — a subsidiary of Fauji Fertiliser that commenced operations in April 2015 — and Al-Shaheer Corporation, an old meat exporting company, are doing big business in meat marketing at home and abroad.
Both companies have their own large animal breeding farms to ensure uninterrupted supply of healthy animals for regular slaughtering.
Exports of meat and meat preparations have grown rapidly — from 72$m in FY09 to $269m in FY16 though a decline has set in during the first seven months of FY17, due to a growing consumption in local markets and smuggling of live animals to neighbouring countries.
Marketing infrastructure of dairy and meat products has also seen a big improvement over the years. Large milk processing companies are successfully operating hundreds of milk collection centres in the country. Small dairy farmers also have more access to better ways of dairy farming and marketing now than in the past, thanks to targeted public-private partnership programme.
In January this year, dairy farmers in Punjab celebrated successful completion of a five-year $21m project of sustainable dairy development. Through a partnership with the Punjab government and Nestle Pakistan, the project improved the lives of over 50,000 small dairy farmers through its skills-based training programmes, resulting in a 17pc increase in the average milk yield and an over 10pc boost in farmers’ incomes, according to media report.
The project generated income for small farmers and created jobs for rural men and women. The project also upgraded 118 farms, now serving as training hubs for small dairy farmers.
It also helped install a pilot 50 cubic metre biogas plant for a dairy cooperative milk chiller in Vehari and constructed a 375 cubic metre biogas plant at the government-owned Bahadurnagar Farm in Okara.
https://www.dawn.com/news/1318665
Oct 31, 2017
Riaz Haq
Pakistan’s grapes are cultivated on a 15,302 hectare area, while annual productivity is 64,317 tonnes. Balochistan grows most of the grapes. However, with the efforts of the Agriculture Institute Chakwal, warmer areas such as Multan, Bahawalpur and Rahim Yar Khan have started to the grow the fruit on a large scale.
https://tribune.com.pk/story/1717479/1-grape-cultivation-gains-mome...
Grapes grown in Rahim Yar Khan are also available in the market. Thanks to the taste, local gardeners are making decent returns on the crop.
While speaking to Express News, Minthar’s gardener Imran Mughal, agricultural expert Munir Hussain and Muhammad Hanif, said a farmer can earn millions of rupees from one acre of land due to good crop turnover of the local grapes.
They said Royal, Thomson Seedless, Cardinal, Kings Ruby, White Seedless, Early White and Perlit are the important and most liked grapes.
They advised farmers and growers to get a plant from a garden that has good fruit instead of buying a grape plant from the nursery. They said the the grape plant can be grown twice; in January and February and likewise in March and April.
They said there is less need of irrigation, while a medium-sized fertile land is suitable for setting up grape gardens.
The agriculture experts said the crop should be protected from Bhar, mealeybug and Blue Bird attacks as they damage the crop. They added grape cultivation could yield maximum profits.
Earlier, a farmer from Chakwal, Mohammad Niaz, not only grew grapes across seven acres of land, but also managed exceptionally good returns on his investment.
A few years ago, the prospect of cultivating grapes in this northern part of Punjab was unimaginable, but the trend changed when the World Bank and the provincial government joined hands to improve farming standards and usher in new farming technologies.
Subsided commodities: Quality fruit hard to find
Niaz is among those lucky farmers who were picked for the implementation of the first phase of the Punjab Irrigated Agriculture Improvement Programme. The initiative was funded by World Bank with a loan of $250 million.
The Punjab government offered 60% subsidy to farmers for introducing new techniques. In order to qualify, the farmer had to contribute 40% to the cost, which alone made most farmers ineligible due to very high equipment charges upfront.
However, the programme was meant to offer an opportunity to small farmers to adopt modern technologies to cope with the growing water crisis, besides increasing agriculture yield.
Grape cultivation through drip irrigation benefits the farmer, as well as the country, through 50% water saving, 45% reduction in fertiliser cost and almost 100% increase in per acre yield.
Aug 6, 2018
Riaz Haq
Turkey’s Ministry of Food, Agriculture and Livestock has sent a latest automatic tea-processing plant to Pakistan as a gift in recognition of the country’s tea-growing efforts.
https://www.dawn.com/news/1353946
Talking to journalists on Friday, National Tea and High Value Crops Research Institute Director Dr Farrukh Siyar Hamid said the plant has arrived in Karachi and currently paperwork is being done for its release.
The plant, which has a capacity to process 400 to 500kg of tea per day, would be made operational in April next year.
The plant will be set up at the tea project site located in Shinkiari, near Mansehra. Spread over 50 acres, this is Pakistan’s first tea garden where black and green tea is produced.
The existing plant at the institute was imported from China and has the capacity of producing one tonne of black tea per day and about 100kg green tea per day.
Dr Hamid said that after a series of soil surveys carried out by the institute, 158,147 acres of land suitable for tea plantation has been identified in districts of Mansehra, Battagram and Swat. The productive and cultivable land is presently not being utilised, he said.
The institute had also carried out soil surveys in Azad Jammu and Kashmir (AJK) where prospects emerged for the cultivation of tea. However, the forest department of AJK refused to allocate land for the project, he added.
Tea crop cultivation has been experimented on farmers’ fields in different agro-ecological zones in the three districts, he said.
The efforts to promote tea cultivation received a setback when the tea garden, spread over 186 acres, and a plant were completely destroyed in Swat during the military operation against terrorists.
The tea research institute has completed testing of 14 exotic tea germplasm and identified 13 tea clones.
In addition, the institute has developed clusters at Siran, Konsh and Kunhar valleys where sixty farmers were trained to grow tea.
Responding to a question, Dr Hamid said the tea being produced in Pakistan is much liked by the Chinese and the products have the prospects to thrive along the China-Pakistan Economic Corridor.
The tea institute’s data shows that Pakistan imported 93,500 tonnes of black tea during the first six months of 2017 at a cost of Rs22 billion. The import of 450 tonnes of green tea during Jan-June 2017 period cost Rs106 million to Pakistan. The data further shows that import of tea increased by over 325 per cent in 20 years.
Aug 20, 2018
Riaz Haq
India ranks 43rd in the global ranking in average per capita tea consumption with 0.73 kg compared with 7.54 kgs in Turkey, 4.34 kgs in Morocco, 2.74 kgs in United Kingdom and 1.01 kgs in Pakistan.
https://www.business-standard.com/article/markets/tea-board-on-prom...
Per capita consumption of tea
Country Quantity (Per KG)
Turkey 7.54
Morocco 4.34
Ireland 3.22
United Kingdom 2.74
UAE 1.89
Kuwait 1.61
Russia 1.21
Iran 1.07
Pakistan 1.01
India 0.73
Source: Industry, Wikipedia
Aug 20, 2018
Riaz Haq
Pakistan among top three dairy producers
Amin Ahmed Updated June 01, 2017
https://www.dawn.com/news/1336575
ISLAMABAD: The Food and Agriculture Organisation (FAO) of the United Nations says Pakistan is among the three countries in Asia and Pacific region which are the world’s top dairy producing countries.
The total value of Asian dairy production exceeded $110 billion in 2013, and figured in the three top commodities in the region in terms of gross value of production. While the dairy production in Pakistan, India and China largely meet domestic consumption, Australia and New Zealand produce a surplus, FAO says on the occasion of World Milk Day being celebrated on June 1 (Thursday).
According to latest figures published in Pakistan Economic Survey 2016-17, milk production in the country is on the increase and during the current fiscal year the gross production of milk was estimated to be 56,080,000 tonnes.
FAO warned that while dairy has big potential, the sector needs to be more sustainable and competitive in Asia and Pacific region. This means helping smallholder farmers gain greater access to markets and services and develop successful dairy business models to increase domestic production.
The aim is to create a sector, which is socially responsible and produces safe and healthy food making more efficient use of the natural resources and reduces the effects on the environment. Only by doing so, will the sector become more sustainable for the benefit of future generations. FAO remains committed to working with all stakeholders to achieve a dairy sector that contributes to health and prosperity of the world.
An Asia Pacific Regional Audit done by the International Osteoporosis Foundation has concluded that the average dietary calcium intake in Asia is well below the FAO-WHO recommendation of 1,000 to 1,300 milligrams per day and most Asian countries have seen a two-to-three fold increase in the incidence of hip fractures during the past 30 years.
In order to facilitate dairy farmers, duty free import of calf milk replacer and cattle feed premix was allowed. During the current fiscal year, 310.2 metric tonnes of calf milk replacer and 298.9 metric tons of cattle feed premix was imported.
Last December, the Royal Friesland Company acquired 51 per cent of Engro Foods Pakistan, which was one of the largest private sector foreign direct investments in Pakistan’s dairy sector, amounting to $450 million.
Under the new deal and 2020 strategy arrangements, Engro Foods will aim for higher milk quality, variety of milk packages and products and farmers’ capacity building leading to a reduction in poverty.
In addition, regulatory duties to the tune of 25pc have been imposed on the import of skimmed milk powder and whey powder. This is to attract further investments in the dairy sector along with protecting small dairy farmers.
Sep 12, 2018
Riaz Haq
#Pakistan needs to develop tuna processing facilities. The country has a substantially large #tuna fleet catching about 70,000 tonnes of tuna every year. #fishing https://www.dawn.com/news/1450836
The experts had consensus over the importance of observer data which, they said, was vital for fisheries management, providing an independent source of detailed and high-quality information on fishing activities and catches.
Effective management of shared tuna stocks in the Indian Ocean, they said, could only be achieved through provision of consistent and robust data for which there was a need to establish and strengthen national observer programmes by regional countries.
In this regard, there was a specific suggestion for use of modern instruments such as vessel monitoring system, electronic logbooks and electronic monitoring systems.
Fabio Fiorellato, the data coordinator at the IOTC secretariat, provided updates on the level of compliance with the IOTC Regional Observer Scheme (ROS).
According to him, details of 375 observers from 15 CPCs (Contracting Parties and Cooperating, non-contracting parties) — as of today — have been provided to the IOTC secretariat in accordance with the ROS requirements and that these do not yet include Pakistani observers as it doesn’t have a scientific national observer programme.
Participants explored alternative protocols to support observer data collection and reporting tools during the workshop. One of them was the crew-based observer scheme being successfully implemented by Pakistan.
Presenting Pakistan’s tuna fisheries’ status, Mohammad Moazzam Khan of WWF-P said that the country had a substantially large tuna fleet catching about 70,000 tonnes of tuna every year.
Of the eight tuna species found in Pakistan, the three dominating ones were yellow fin, skipjack, longtail tuna, which constituted 70 per cent of the tuna landing, he said, adding that kawakawa, frigate tuna, bullet tuna and stripped tuna were other tuna species found in the country’s waters.
On shortcomings in data collection, he said that his organisation had initiated an important crew-based programme whereby information was collected through fishermen. The programme had received international recognition.
“Pakistan can contribute significantly to the national economy by developing proper fish handling and processing facilities and, at the same time, complying with the IOTC requirements,” he observed.
Speakers included director general of conservation and rehabilitation of marine resources, Iran Fisheries Organisation, Dr Reza Shahifar, senior researcher at the Fisheries Research Institute, Mozambique, José Sebastião Halafo, fisheries development commissioner at the Ministry of Maritime Affairs Asad Rafiq Chandna and secretary of Balochistan coastal development and fisheries Arshad Hussain Bugti.
The workshop in the next two days will discuss the feasibility of adopting alternative data collection methods in order to ensure science-based management regime for tuna fisheries of the Indian Ocean countries.
Dec 12, 2018
Riaz Haq
#American #agribusiness giant Cargill to grow #Pakistan business with US$200 million investment for expansion across its #agriculture trading and supply chain, edible #oils, #dairy, #meat and animal feed businesses while ensuring safety, food traceability. https://www.thenews.com.pk/latest/420270-cargill-to-grow-pakistan-b...
Cargill renewed its long standing commitment to Pakistan by announcing plans to invest more than US$200 million in the next three-to-five years.
The announcement was made soon after Cargill’s global executive team, led by Marcel Smits, head of Global Strategy and Chairman, Cargill Asia Pacific region, and Gert-Jan van den Akker, president, Cargill Agricultural Supply Chain, met with the Prime Minister Imran Khan and other senior government officials to discuss the company’s future investment plans.
Being a global food and agriculture producer with a strong focus on Asia, Cargill aims to partner on Pakistan’s growth by bringing its global expertise and investment into the country.
The company’s strategy includes expansion across its agricultural trading and supply chain, edible oils, dairy, meat and animal feed businesses while ensuring safety and food traceability.
Cargill will bring world class innovations to support the flourishing dairy industry in Pakistan, which is already moving toward modernization, as well as the rising demand for edible oils backed by evolving consumption patterns and a growing market for animal feed driven by sustained progress made by the poultry industry in Pakistan.
Cargill’s proposed investments will support Pakistan’s overall economic development and contribute to local employment.
The visiting delegation informed the Prime Minister that M/s Cargill intended to invest in Pakistan as back as 2012 but were discouraged by mismanagement, corruption and non-availability of level playing field during the previous governments. However, investor’s confidence has restored after the incumbent Government and the policies being pursued by it.
The prime minister welcomed investment plans of M/s Cargill in the area of agriculture development, import substitution and enhancement of agricultural products.
He highlighted the efforts of the government towards ensuring transparency, providing the business community with level playing field and improving ease of doing business in the country.
The PM assured the delegation full support from the government.
Jan 17, 2019
Riaz Haq
Cargill details major investment in Pakistan
https://www.foodbusinessnews.net/articles/13172-cargill-details-maj...
Cargill has announced plans to invest more than $200 million in Pakistan over the next three to five years. The funds will be used to expand Cargill’s agricultural trading and supply chain, edible oils, dairy, meat and animal feed businesses in the country. Additionally, the company has earmarked funds for safety and food traceability efforts.
“Having been in Pakistan for more than 30 years, Cargill is happy to demonstrate our commitment to the country’s future through investment in our business and communities here,” said Imran Nasrullah, country head, Cargill Pakistan. “Finalizing one of our first investments in the agricultural supply chain in Pakistan is our top priority. We have received a very positive response from the Pakistani government, and we value their support as we expand our presence here, helping industries, farmers and communities succeed.”
Cargill started its Pakistan operations in 1984 and today has business interests in refined oils, animal feed, grains and oilseeds, cotton, sugar and metals. Cargill is one of the largest suppliers of palm oil and soybeans and cocoa powder to Pakistan. With the head office in Karachi, Cargill currently employs 50 people in Pakistan.
Jan 18, 2019
Riaz Haq
Dairy Sector: Time to Go All Out for Bolstering Performance
August 8, 2019
https://www.sentinelassam.com/editorial/dairy-sector-time-to-go-all...
in Asia, strong output growth is forecast in the large traditional milk producers: India is expected to sustain its normal growth, while Pakistan looks set to increase production as high internal prices have stimulated investments in the sector. However, all of Pakistan’s increased production will be absorbed domestically. South America is all set to be the fastest-growing milk production region. Argentina’s milk production growth has been limited by lower returns due to large export taxes on milk products, whereby taxes are adjusted to maintain lower domestic prices. This policy-induced some milk producers to participate in national strikes and blockades in early 2008. Brazil may soon be the second largest exporter in the region, or even the largest if current trends continue over the next several years. In other parts of Latin America and the Caribbean, Mexico, one of the world’s largest importers of milk powders, will post limited milk production gains given high feed costs and a shortage of domestic available feed.
As a whole milk production in Africa is anticipated to be consistently below world average growth, showing weaker supply response to the price spike. But the United States’ dairy sector responded significantly to attractive internal and external prices in the last couple of years. However, this growth is lower than expected, due to the downturn in profitability experienced so far this year, as indicated by the milk to feed price ratio. This has limited milk yield growth and has induced higher culling of cows. In addition, the recent appreciation of the United States dollar has lowered the competitiveness of the United States’ industry on international markets compared with the situation of even a couple of years back. In Canada, higher feed costs have induced yet higher target prices, and this has limited domestic market growth; production is expected to remain stable.
Aug 8, 2019
Riaz Haq
Nestlé opens #juice #manufacturing plant in #Pakistan with $22 million. Nestle procuring Chaunsa #mangoes from 110 farms. It's world’s largest Milo (#chocolate malt drink) plant with the capacity to export the product to more than 20 countries worldwide. https://www.drinks-insight-network.com/news/nestle-juice-plant-paki...
Global food and beverage company Nestlé has expanded its juice production capacity in Pakistan with the opening of a $22m plant at its Sheikhupura Factory.
Punjab Governor Chaudhry Mohammad Sarwar inaugurated the company’s Nestlé Fruita Vitals plant.
The plant is the newest edition to the company’s facilities operating in Pakistan and has 24,000 units per hour production capacity. It produces Nestlé’s range of juices, nectars and drinks.
Sarwar said: “We aim to create conditions in which foreign companies are attracted towards making new investments. At present, the government is making concerted efforts to revive the nation’s economy.
“I am really pleased to see that Nestlé, one of the world’s leading food and beverage companies, is making such good progress in Pakistan.”
The investment is reported to be one of the largest investments made by Nestlé in Pakistan in recent times.
Nestlé Pakistan CEO Samer Chedid said: “Nestlé’s recent investment is a testament to our continuous trust in Pakistan and its growth potential. We are also excited about integrating our Chaunsa value chain.
“We are procuring Chaunsa mangoes from the 110 farms that we introduced interventions to improve their yield’s quantity and quality.
“This integration demonstrates our Creating Shared Value approach in which we ensure that our activities and products are making a positive difference to society while contributing to Nestlé’s ongoing success.”
Last month, Nestlé Malaysia opened its expanded Milo manufacturing facility at Chembong, Negeri Sembilan.
The facility is claimed to be the world’s largest Milo manufacturing site, with the capacity to export the product to more than 20 countries worldwide.
Oct 9, 2019
Riaz Haq
Trade churn: Who will milk the benefits?
https://www.financialexpress.com/opinion/trade-churn-who-will-milk-...
According to the Food and Agriculture Organisation 2017, India is the largest milk producer in the world which contributes 21% to the world milk production followed by the United States (12%), Pakistan (5.3%), China (4.2%), Brazil (4%), Germany (3.9%), Russia (3.7%), New Zealand (2.5%), Netherlands (1.7%) and Australia (1%). In terms of numbers of dairy farmers, India is followed by Pakistan (7 million), the United States (0.038 million), China (0.013 million), New Zealand (0.012 million) and Australia (0.005 million).
India has around 73 million dairy farmers mostly holding one or two milch animal per farmer. Also, in India, farmers share in the retail price of milk is around 60%, the highest amongst other countries (International Farm Comparison Network, Dairy Report, 2018). Whereas, in the case of New Zealand and Australia, where average holding is 430 and 263 milch animals per farmer, respectively, price share is only 23% and 24%. Similar is the situation in the United States, Germany, France, and Denmark, where farmers receive only 43%, 45%, 34% and 43% of consumers’ price on milk and milk products, respectively.
------------------------
India’s livestock sector ensures food security, provides employment, which leads to a reduction poverty and, more importantly, rural inequity. This is also evident from the increasing dependence of Indian farmers on livestock. Share of livestock sector to Gross Value Added (GVA) increased from 4% in 2011 to 4.6% in 2016. While share of agriculture and allied sector to gross value added consistently declined from 18.5% to 17.9%, during this period share of livestock in agricultural and allied gross value added increased from 22% to 26%. Among the livestock products, milk and milk product consist the highest share (67%) in the value of output from the livestock sector. Besides, this sector has been growing 11%, compounded annually, whereas the agricultural and allied sectors have grown 9% over this period. In recent years, milk and milk products are the largest agricultural commodity generating 32% more output than combined output of paddy and wheat.
Nov 6, 2019
Riaz Haq
Domestic and foreign investors have started showing interest in oil palm farming following satisfactory results from trial production of the oil palm fruit in Thatta.
Besides a domestic edible oil company, a delegation of local traders and the Malaysian embassy visited a 50-acre oil palm fruit orchard in Kathore, Thatta to assess quality of the fruit and suitability of soil.
The delegation along with Sindh Environment, Climate Change and Coastal Development (ECCCD) Secretary Muhammad Aslam Ghauri also visited a palm oil producing mill set up by the provincial government and inspected its production process, said an ECCCD spokesperson on Monday.
“Expressing satisfaction over the quality and production environment in the region, officials were of the view that it provided excellent investment opportunities for oil palm cultivation and palm oil production, which should be fully utilised by the global and local business communities,” he said.
On the occasion, the secretary told the delegation that Sindh had crossed an important milestone through successful experimentation with oil palm cultivation.
He said that the project would play a key role in prosperity of Pakistan and meet domestic demand for palm oil to a great extent.
https://tribune.com.pk/story/2276889/oil-palm-farming-attracts-inve...
----------------------
Edible oil including soybean and palm into the country during first four months of current financial year increased by 42.99% and 30.57% respectively as compared the exports of the corresponding period of last year.
During the period from July to October 2020-21, about 72,631 metric tons of soybeans costing $48.168 million imported as against the import of 48, 489 metric tons valuing $33.687 million of same period of last year.
According the data of Pakistan Bureau of Statistics, during the period under review about 1,049,134 metric tons of palm oil worth of $661.445 million imported as against the import of 929,331 metric tons valuing $506.586 million of same period last year.
During the period under review imports of palm oil into the country witnessed about 30.
57% increase as against the imports of the same period of last year, it added.
It is worth mentioning here that in last four months of current financial year food group imports into the country grew by 43.49 percent as different food commodities costing $2.272 billion imported as against the imports of 1.583 billion of the same period of last year.
On the other hand, food group exports from the country during the period review went down by 16.77 percent as it was recorded at $1.331 billion from July-October, 2020 as compared to $1.359 billion of the corresponding period of last year.
On month on month basis, the exports of food commodities post 13.42 percent reduction in month of October, 2020 as compared the same month of last year, whereas imports into the country during the period under review grew by 15.14 percent
https://www.urdupoint.com/en/business/edible-oil-including-soybean-...
Dec 25, 2020
Riaz Haq
Dietary fats are essential to give your body energy and to support cell growth. They also help protect your organs and help keep your body warm. Fats help your body absorb some nutrients and produce important hormones, too. Your body definitely needs fat.
https://www.heart.org/en/healthy-living/healthy-eating/eat-smart/fa...
Eating foods with fat is definitely part of a healthy diet. Just remember to choose foods that provide good fats (monounsaturated and polyunsaturated fats) and balance the amount of calories you eat from all foods with the amount of calories you burn. Aim to eat a dietary pattern that emphasizes intake of vegetables, fruits, and whole grains; includes low-fat dairy products, poultry, fish, legumes, non-tropical vegetable oils and nuts; and limits intake of sodium, sweets, sugar sweetened beverages and red meats. Doing so means that your diet will be low in both saturated fats and trans fats.
Dec 25, 2020
Riaz Haq
Cargill acquires minority stake in FAP’s terminal at Port Qasim
https://www.thenews.com.pk/print/755755-cargill-acquires-minority-s...
Global commodities trader Cargill Inc had bought a minority stake in Fauji Akbar Portia Marine Terminal Limited (FAP), Pakistan’s one of the largest bulk terminal, which handles agricultural supplies in the country, a statement said on Tuesday.
The deal is privately held US-based Cargill’s first investment into Pakistan, after the strategic intent announced in last January.
With this investment, Cargill will handle grains, cereals, rice, oilseeds and fertilizers at Port Qasim.
Waqar Malik, chairman Fauji Foundation said this transaction is a signal and validation of the Pakistan opportunity seen by the world’s leading player in agriculture commodities.
“With its global port experience, Cargill will help drive greater operational efficiencies for the port to reach its potential of handling agri-cargo safely and efficiently,” Malik said.
He added that Cargill, with its global port experience, will help drive greater operational efficiencies for the port to reach its potential of handling agri-cargo safely and efficiently.
“Going forward, both partners aim to build a safety culture that will create a world class, safe and sustainable environment for FAP’s employees and customers.”
Imran Nasrullah, country president, Cargill Pakistan said the investment would further adds to the company’s global port operation’s footprint and strengthens its agricultural trading and supply chain operations in the region.
“In future we will also look at opening doors for other sectors where we can add value, besides exploring business synergies with our existing partners,” Nasrullah said.
He said the investment also demonstrate Cargill “commitment to partner in the economic growth of Pakistan by bringing in our global expertise and investment”.
FAP is a joint venture between Fauji Foundation, Akbar Group of Companies and National Bank of Pakistan. FAP started operations in 2010 and provides complete supply chain management solutions for ship berthing, unloading, storage and bagging of all types of grains, cereals, oilseeds and fertilizers. The terminal operates with international standards and has helped build efficiencies in dry cargo handling in Pakistan.
The statement said Fauji Foundation, through this partnership with the world’s leading agriculture company, will transform FAP’s supply chain to enhance overall value for all stakeholders including suppliers, customers, employees and shareholders.
Dec 25, 2020
Riaz Haq
Dysfunctional Horticulture Value Chains and
the Need for Modern Marketing Infrastructure:
The Case of Pakistan
https://www.adb.org/sites/default/files/publication/534716/dysfunct...
Total cereal production in the country increased to 38.34 million
MT in 2016 from 25.99 million MT in 2001, registering a growth of
47.52%. More than 70% of this growth was contributed by growth
in yield, while the rest was contributed by growth in cultivated land.
The country produced 6.64 MT vegetables and 5.89 MT of fruits in
2001, which increased to 9.77 MT and 6.8 MT, respectively, in 2015.
Yields of fruits and vegetables remain low. For example, yield
of potato (in tons per hectare) in Pakistan is significantly lower
compared to European countries like Belgium, the Netherlands,
Spain, and Turkey; and the United States (US) (Figure 2). Overall,
growth of yield played a small role in the growth of production of
fruits of vegetables during 1990–2016.3
Total production of potato, onion, and tomato was about 6.23 MT
in 2015, which accounted for about 64% of quantity and about 70%
of value of all vegetables produced in Pakistan. Punjab, Sindh, Khyber
Pakhtunkhwa, and Balochistan provinces accounted for 83%, 1%,
9%, and 7%, respectively, of total potato production. Shares of these
provinces in total tomato production were 9%, 10%, 45%, and 26%,
respectively. Sindh (40%) and Balochistan (28%) led in total onion
production, followed by Punjab (21%) and Khyber Pakhtunkhwa (11%).
Pakistan exports different types of fruits and vegetables. The value
of the country’s export of fruits and vegetables in 2016–2017 was
about $568 million. Per capita consumption of fruits and vegetables
in Pakistan is low compared to Europe and America, and roughly at
par with South Asian comparators like Afghanistan and Bangladesh.
In 2013, per capita consumption of fruits was only about 29
kilograms (kg) in Pakistan compared to 95 kg in Europe and 105 kg in
the US. Per capita consumption of vegetables was 26 kg in Pakistan
compared to 115 kg in the European Union and 114 kg in the US in
the same year.4
Current Horticulture Value Chain
Several players are involved in different segments of the horticulture
value chain in Pakistan.
Collection and Shipment
Majority of the farmers sell their produce at wholesale markets. Most
farmers contract out fruit orchards during the flowering stage to the
middlemen, commission agent, and/or wholesalers who provide
loans to the farmers over the course of production. Vegetables and
fruits are transported by the same cart or truck from farms to the main
markets in the absence of specialized vehicles for specific products.
The same vehicle is used for many other purposes including animal
transportation. Recently however, reefer trucks have been introduced
on a limited scale in some parts of Pakistan. In the absence of direct
access of carrier vehicles to the farms, farmers gather their products
in a convenient spot along the roadside for pickup. When middlemen
or contractors are involved, it is their responsibility to collect and
transport the produce. The unsold or unauctioned produce in one
market is sent to other markets in the same locality.
Fruits and vegetables are packaged using local materials before
shipment. In most cases such packaging fails to preserve the
freshness and quality of the products. Another problem is absence of
cooling and packaging centers, and inadequate cold storage facilities
to preserve the produce at or near the wholesale markets. More than
555 cold storage units have been identified in Pakistan with about
0.9 million MT storage capacity, against more than 15 million MT of
production of fruits and vegetables. There are no available cooling
and packaging houses, and cold storage facilities close to the farms
that can be used by the producers.
Jan 3, 2021
Riaz Haq
Pakistan’s cash crops — vegetable production
https://dailytimes.com.pk/603906/pakistans-cash-crops-vegetable-pro...
Vegetables constitute an integral component of our cropping pattern but the increasing pressure on food and cash crops has limited the area under vegetables to about 3.1% of the total cropped area. Because they have a shorter maturity period vegetables fit well in most farming systems. Vegetables provide proteins, minerals and vitamins required for human nutrition. In Pakistan though, the daily per capita intake is low, being about 100 grams compared to the recommended consumption of about 285 grams. Vegetables are very important due to their higher yield potential, higher return and high nutritional value while being suitable for small land holding farmers. Most Pakistanis prefer cooked vegetables over raw vegetables, use plenty of fat during cooking and like to stir-fry their vegetables but high heat kills many of the beneficial nutrients and vitamins, and the excessive fat intake encourages obesity and high cholesterol.
However, according to the Asian Development Bank until today Pakistan remains a low level producer of vegetables basically for the domestic market only. In some instances, Pakistan has to import vegetables. One such example is pulses. Pulses are the most important source of vegetable protein in Pakistan. The demand for pulses is increasing because of the population growth and the fact that dal is cheap staple food for the poor. There is a need to develop varieties with higher yield potential that respond to improved management practices so as to meet the increasing demand of pulses and for import substitution. Pakistan Agricultural Research Council has started a program in order to develop varieties of chickpea, lentil, mung bean and black gram through breeding, molecular techniques and selection. The new varieties should be responsive to high inputs like irrigation, fertilizers and inoculation and be resistant to disease, drought and cold. Last year a four-person U.S. pulse industry team visited Karachi during April 29-May 1 to attend the first U.S. pulses seminar, hold industry meetings, visit a processing facility, see a traditional grain market and tour a hypermarket. But instead of helping Pakistani agro-industry the visit resulted in Pakistani buyers contracting for import of American pulses for the coming year. Overall, Pakistan is spending Rs. 102 billion annually on import of pulses. Among the reasons for that is that pulses were grown in marginalized land which has low productivity due to lack of water.
As can be seen there are multiple factors constraining not only the production of pulses but of all vegetables. One important factor apart from seeds quality, diseases and others is the human factor. The majority of the population in Pakistan lives in rural areas where poverty is deep and widespread. People are not only poor but mostly uneducated. Whatever knowledge farmers have is from their fathers and grandfathers. Not or insufficiently able to read and write is another major constraint. New seeds and how to handle them, use of new fertilizers are incomprehensible to them. Moreover, many of them are landless or small farmers with holdings too small to be profitable. And the number of such people is increasing with the passage of time. Has there ever been an attempt to bring small landowners in a cooperative together? That would solve the problem of too small holdings, access to credits, training-on the job and others.
Jan 3, 2021
Riaz Haq
Dysfunctional Horticulture Value Chains and
the Need for Modern Marketing Infrastructure:
The Case of Pakistan
https://www.adb.org/sites/default/files/publication/534716/dysfunct...
Negative Impacts of the Current Value Chain The negative impacts of the current value chain can be assessed in terms of the low share of farmers in consumer prices . Usually producers get 15% to 20% of the retail price. Production of perishables like potato, onion and tomato suffers from a major setback every 3–4 years. Usually two or three good harvests are followed by a bad harvest. Besides, natural factors like unfavorable weather also negatively affect production. Producers do not get price dividends when production is low, shooting the retail price. Benefits of high retail prices are disproportionately expropriated by the middlemen. When there is a market glut where perishables and their prices fall, producers suffer as their share in retail prices also falls significantly. Sometimes producers throw away their perishable produce to protest their low prices. It emerged from discussions with the traders in Badami Bagh Ravi Link wholesale market that producers’ share in retail prices is inversely related with the perishability of the crop. Both seasonal and spatial price fluctuations of fruits and vegetables are high in Pakistan. For instance, in 2017, the price of 100 kg of tomato in Lahore fluctuated between 1,450 Pakistan rupees (PRs) to PRs13,150, or more than 800%. In the same year, price fluctuation for fresh potato was between PRs1,550 to PRs4,300 for 100 kg, or 177%. The annual cost of price fluctuations of fruits and vegetables is estimated to be about $825 million. Postharvest losses in fruits and vegetables due to mishandling of the perishable product, poor transportation, and inadequate storage facilities and market infrastructure account for about 30%–40% of total production. The annual value of postharvest losses of potato, tomato, peas, cauliflowers, carrots, turnip, radish, brinjal, squash, okra, onion, grapes, and mango in Balochistan, Khyber Pakhtunkhwa, Punjab, and Sindh, valued at the respective 2016 provincial wholesale prices, is about $700 million to $934 million. An alternative estimate suggests that a reduction of around 75% of the current postharvest loss, when valued at export premium prices, would be equivalent to an annual saving of approximately $1.13 billion.
Due to low economies of scale, lack of synergies and collaboration among traders, high loading and unloading time, and hightransportation cost, overall marketing cost is very high. A reduction of marketing cost by $0.025 per kilogram would save about $55 million annually in the Ravi Link wholesale market in Lahore. It is difficult to comply with food safety, sanitary, and phytosanitary standards with the current value chain. The income and corporate tax revenues foregone due to the current value chain and marketing structure are also potentially high. Current Situation of the Main Wholesale Markets in Lahore The situation of four wholesale markets located in Lahore were analyzed, namely, (i) Badami Bagh Ravi Link, (ii) Akbari Mandi, (iii) a fish market at Urdu bazaar, and (iv) a flower market in Sughian Pul Shekhopura Road. The key findings are as follows. Physical Limitations The main problem is inadequate space for activities, forcing the commission agents and wholesalers to operate in open spaces with consequent spoilage. The average size of stalls is about 16 square meters only, which makes sorting, grading, and display of products difficult. Most of the corridors and offices in the premises have little active ventilation as required by international standards.
Jan 3, 2021
Riaz Haq
Speaking at a Karachi Chamber of Commerce and Industry webinar in December, Adviser to the Prime Minister on Institutional Reforms Dr Ishrat Husain stressed the importance of looking beyond the textile sector and diversifying Pakistan’s exports. Otherwise, he warned, we will remain “stuck” at 25 to 30 billion dollars in exports per year.
https://www.dawn.com/news/1611075
“If we can capture just one percent of the Chinese market by providing components, raw materials [and] intermediate goods to the Chinese supply chain,” he had said, “we can get 23 billion dollars in exports to China, which is very favourably inclined towards Pakistan...”
From the looks of it, others were on the same page as Husain. Last month, it was reported by China Economic Net (CEN) that China will import dairy products from Pakistan. The Commercial Counsellor at the Pakistan Embassy in Beijing, Badar uz Zaman, told CEN that Pakistan got this opportunity due to its high quality dairy products, available at a low price.
Pakistan is the fourth largest milk producer globally, Zaman pointed out.
Indeed, the country’s dairy industry has great potential and can prove to be ‘white gold’ for Pakistan. Unfortunately, the sector is currently struggling due to various reasons but, if its export potential is realised, it can transform not only the sector itself but Pakistan’s economy as well.
According to the Food and Agriculture Organisation at the United Nations, in the last three decades, global milk production has increased by more than 59 percent, from 530 million tonnes in 1998 to 843 million tonnes in 2018.
This rise in global milk consumption is an opportunity for countries such as Pakistan to earn foreign exchange by exporting milk and dairy products to countries which have insufficient milk production. According to a Pakistan Dairy Association estimate, with support from the government, Pakistan can earn up to 30 billion dollars from exports of only dairy products and milk.
Unfortunately, this potential is being wasted. As per statistics provided by the Pakistan Dairy Association, livestock and dairy currently make up approximately only 3.1 percent of Pakistan’s total exports; which would mean about a mere 0.68 billion dollars in FY2020.
Jun 25, 2021
Riaz Haq
Dastaangoi
0uFetSbtr32u8ary1s 1600, 2202d1 ·
Pakistani Beverages (1/3)
Pakola was the creation of seven brothers from the Teli family of Dhoraji in India who migrated to Pakistan in 1947. The idea of Pakola came from its founder Haji Ali Mohammad, who dreamed of developing a drink that portrayed the true reflection and taste of Pakistan. In order to pursue his dream, Haji Ali Mohammad opened a small factory with only two machines at Lawrence Road in Karachi, Pakistan with Pakola Ice-cream Soda being the initial product.
The drink was launched at Pakistan Air Force base on the anniversary of Pakistan’s Independence, 14 August 1950, in the presence of the first Prime Minister, Liaquat Ali Khan.
Later when Pakistan Beverages (PB) came into existence at SITE (Karachi), the brand Pakola was produced there. In 1979, when Pakistan Beverages location was announced as a production facility for Pepsi, Mehran Bottlers came into existence and continued to produce the drink along with other products such as Apple Sidra and Bubble Up.
Pakola is now available in America, Africa, Australia, Canada, Middle East, New Zealand and the United Kingdom. It is the only carbonated beverage manufactured in Pakistan that is exported globally.
Feb 15, 2022
Riaz Haq
PABC raises Rs4.6b through IPO
Can maker secures maximum allowed price of Rs49 per share
https://tribune.com.pk/story/2306898/pabc-raises-rs46b-through-ipo
Pakistan Aluminium Beverage Cans (PABC) raised Rs4.6 billion by selling one-fourth of the stake in the company to institutional, individual and retail investors at the Pakistan Stock Exchange (PSX) on Wednesday.
The company secured the maximum allowed price of Rs49 per share, which it determined by holding the Dutch auction (book building process) on Tuesday and Wednesday. It kick-started the auction at the minimum (floor) price of Rs35 per share.
Rules in place allowed the company to sell shares at 40% higher price against its floor price of Rs35 per share. The company sold a total of 93.88 million (26%) shares in the auction at the PSX.
The IPO was oversubscribed by 2.5 times at 233.23 million shares against the offer to sell 93.88 million shares.
It was the second largest initial public offering (IPO) in the private sector in terms of size of raised funds at Rs4.6 billion.
Funds gathered through the listing would go to UK-based asset management firm Ashmore that plans to break away from the company. It held a total of 51% stake in the company, out of which it sold almost half (26%) through the auction at the PSX.
Ashmore has also entered into agreements to sell rest of its holding in the company at a price of Rs30.80-31.85 to two major investors including Hamida Salim Mukaty (part of Liberty Group) and Soorty Enterprises (Private) Limited in private deals. PABC has shared plans to enhance its annual capacity from 700 million cans to 950 million cans. It aims to complete the expansion by July 2022.
The expansion is being financed through the State Bank of Pakistan’s (SBP) Long Term Financing Facility (LTFF) at an attractive rate of 3% (inclusive of bank margin of 1%). The company has established relationship with key beverage bottlers in Pakistan and Afghanistan such as PepsiCo, Coca Cola, Mehran Bottlers (Pakola) and Zalal Mowafaq, Afghanistan.
In addition to this, the company also supplies aluminium beverage cans to Nestle Pakistan, Murree Brewery, King Beverages, Super Cola Beverages, Sufi Group of Companies, Six B, Daani International, Master Beverages and Foods and Afghan Red Pomegranate.
As per company estimates, the can penetration in the beverage packaging market is roughly 3-4%.
The off-trade consumption in soft drinks market of Pakistan stood at 3.13 billion litres in 2020 and it is expected to hit 4.34 billion litres by 2025, registering a five-year CAGR of 6.7% on volume basis, as per Euromonitor International.
Feb 15, 2022
Riaz Haq
Land Information And Management System: Step Towards Pakistan’s Modern Agriculture Revolution – OpEd
https://www.eurasiareview.com/05072023-land-information-and-managem...
By Sarah Saeed
Land is an essential resource and one of the primary elements of statehood which ensures the survival of a nation-state.Administrative inefficiencies, corruption, and lack of transparency that afflict conventional land management practices can lead to land conflicts and poor management. The cumulative impact of past negligence has made economic revival, a question of survival for Pakistan.
Looking back, Pakistan’s First Green Revolution was launched in the mid-sixties. Through the use of innovative technologies, timely application of high-yielding varieties (HYV) seeds, chemical fertilizers, and irrigation water, the output of food grains increased by three times. At that time, Pakistan scored far better than other South Asian nations, where the production of wheat surged by 79%, from 3.7 MMT to 6.8 MMT.
As of now, population-production gap is widening while area under cultivation is declining, and agriculture-related imports are now estimating at $10 billion,creating economic stress. Simply put, Pakistan’s productivity is currently below average. According to the World Food Program, 18.3% of Pakistanis—36.9% of the population—are experiencing acute food crises. With the entire wheat demand exceeding 30.8 MMT, the wheat shortage problem is becoming worse. There is now a shortage of about 4 MM as output is just 26.4 MMT. Over the past ten years, cotton output has decreased by 40%, from 14.8 million bales to 5 million bales.
With all these challenges in view, there is a dire need to take a promising initiative, aimed at enhancing Modern Agro Farming utilizing over 9 million hectares of uncultivated waste state land. In this regard Land Information and Management System – Center of Excellence has been established under Director General Strategic Projects by Adjutant General Branch, GHQ. LIMS is a digital platform to manage land related data with the mission to ensure Food Security and Optimize Agricultural Production inPakistan through innovative technologies and sustainable precision-guided agricultural practices based on agro-ecological potential of land, while ensuring well being of rural communities and preservation of environment.
LIMS is keen to contribute significantly in Agriculture sector and has recently initiated Modern Agriculture farming projects, starting from Punjab. In coordination with all provinces, thus far total land identified is almost 4.4 million acres in which Punjab and Sindh both separately have 1.3 million acres of land, whereas Khyber Pakhtunkhwa has 1.1 million acres of land and Balochistan contains 0.7 million acres of land. The project is well expected to deliver a paradigm change in terms of land management and agricultural growth, triggering a system revolutionization. System revolutionization refers to the use of real-time data on land, crops, weather, and pest management under one roof to guide agricultural progress.
As planned, Research & Development in Seeds, Fertilizers, and Artificial Intelligence-based solutions through public/private collaborations and agreements with foreign and domestic partners will improve effectiveness, productivity, and sustainability by ensuring food security through large-scale farming, including livestock. Precision farming, biotechnology (genetic engineering, seed coating, and seed inoculation), irrigation management, pest management, agro-forestry, and aquaculture are some of the contemporary farming practices introduced by LIMS. These practices will further increase production yield, decrease input costs, minimize environmental impact, and support research and development.
Jul 6, 2023
Riaz Haq
Land Information And Management System: Step Towards Pakistan’s Modern Agriculture Revolution – OpEd
https://www.eurasiareview.com/05072023-land-information-and-managem...
By Sarah Saeed
The world is currently using 80 % hybrid seed while Pakistan is using only 8% of the same. Pakistan’s seed requirement is 1.77 million tons, whereas seed availability is only 0.77 million tons. LIMS efforts are in hand to use certified hybrid seeds with concurrent development of seed involving Japan Vegetables (JVs) with Multi-National companies, which can pay rich dividends.
By leveraging the expertise, resources, and technology of various entities coupled with modern irrigation systems, Pakistan is in desperate need to revolutionize its agricultural sector horizontally and vertically as well as ensure food security for its rapidly growing population. As an immediate and well calibrated project which promises introduction of transparency, efficiency, and equality to the system, LIMS has the potential to revolutionize land management in Pakistan.
Planned under LIMS, real-time data gathering, processing, and reporting will be useful for identifying problems and putting into place prompt solutions for increased output. In turn, this will not only solve the constantly lingering threat of food security but also make it possible for the country to ecplo export possibilities and support the expansion of economy. Additionally, by allowing Modern Agro Farming access to state property, it will help in drawing investment, foster innovation, and provide job possibilities.
Jul 6, 2023
Riaz Haq
Annual milk production during 2021/2022 was estimated approximately 65.7 million tonnes, giving Pakistan a place in the list of world's top 5 milk producing countries. Dairy farming in Pakistan is fragmented and practiced on various scales both in rural and peri-urban areas mainly by private sector.
https://sdgs.un.org/sites/default/files/2023-05/B65%20-%20Tariq%20-...
Dairy sector in Pakistan plays a pivotal role in the national economy and its value is more than the
combined value of major cash-crops i.e. wheat and cotton. Annual milk production during 2021/2022 was
estimated approximately 65.7 million tonnes, giving Pakistan a place in the list of world’s top 5 milk
producing countries. Dairy farming in Pakistan is fragmented and practiced on various scales both in rural
and peri-urban areas mainly by private sector. However, this industry is facing challenges (nutrition,
healthcare, breeding, government support and public health) that threaten its sustainability and
livelihoods of millions of people involved in the sector
Aug 17, 2023
Riaz Haq
In the ever-raging battle between Coca Cola and Pepsico, Sting is King - Profit by Pakistan Today
https://profit.pakistantoday.com.pk/2024/05/13/in-the-ever-raging-b...
There has been a major change in Pakistan’s carbonated drinks industry. In the year 2023, Coca-Cola was the most-sold carbonated drink in the country. Just over 451 million litres of Coke were sold in the last calendar year.
This beat out Pepsi, once the biggest carbonated drink in Pakistan, which sold just over 372 million litres in 2023. This is seemingly a major shift in consumer preference. Besides the flagship products, Coca Cola also had the bigger share of the overall carbonated drinks market.
Of the overall 1.33 billion litres of carbonated drinks sold in Pakistan last year, including all of the other brands these two companies operate such as 7Up and Sprite, Coke Pakistan had a market share of 42.7%, while Pepsico was close behind with 39.8%.
But even though Coke Pakistan technically has more sales than Pepsico in the carbonate beverages department, Pepsico is well ahead of Coke off the back of one single product.
Pepsico launched the iconic energy drink in Pakistan back in 2010. Since it is considered an energy drink, or a “stimulant drink” as it is legally labelled in Punjab, it falls under a separate category of product entirely. Over the years it has become abundantly clear that Sting’s competition is not Redbull or other canned energy drinks with ginseng (the product present in most energy drinks), but rather Coca Cola and Pepsi.
In the 14 years since it has been around, Sting has become the fourth largest drink in Pakistan after Coca Cola, Pepsi and 7Up. And it is fast catching up with 7Up. This means it sells more than Sprite, Mirinda, Mountain Dew, and Fanta. In fact, according to the sales numbers available for 2023, Sting has sold more litres than Mountain Dew and Fanta combined.
This is all despite the fact that Sting does not (yet) come in packaging of over 500ml. Currently, this 500ml litre bottle of Sting costs Rs 100. Its competitors like Fanta, Mountain Dew, Sprite, 7Up all come in packaging of 1 litre, 1.5 litre, and in some cases even 2.25 litres and are cheaper per litre in larger packaging. These drinks are also more in demand because they are served at weddings, corporate events, and other such gatherings. Sting is not a drink of choice for such occasions.
This presents us with a unique situation. It means Sting, despite billing itself as an energy drink, is directly in competition with carbonated drinks such as Coca Cola and Pepsi. Whatever it may claim, Sting also looks, tastes, and behaves more like a carbonated drink than an energy drink. But food and health authorities treat it as an energy drink, which can often mean regulatory scrutiny. But it seems the marketing benefit of Sting being labelled an energy drink is well worth it to Pepsico. After all, it is keeping them ahead of the competition.
So how do we get to the bottom of the Sting miracle? Easy, we start at the beginning and move on to the numbers.
Fizzy fights
There isn’t really any major competition to Coca Cola and Pepsi. Sure, there are a few anomalies in the world where local brands compete with the two multinationals. In fact, Peru is possibly the only country in the world where a local soda seller, Inca Cola, outsells both Coca Cola and Pepsi. But these are all outliers. Everywhere in the world the market for carbonated drinks is almost evenly split between these two Global Giants.
Pakistan is no exception. Coca Cola first hit the Pakistani market way back in 1953. Pepsi followed not long after. The logic from the global headquarters of both Coke and Pepsico is simple. Since they are each other’s eternal competition, wherever one goes the other follows. Whatever pricing strategy one follows the other copies. However much one spends on marketing, the other tries to one-up. Wherever there is Coca Cola, there must be Pepsi.
Jul 8, 2024
Riaz Haq
Nishat’s focus towards corporate farming - Newspaper - DAWN.COM
https://www.dawn.com/news/1844573
Quietly but steadily, corporate money is betting on Pakistani agriculture. One of the country’s largest business conglomerates — Nishat Group — for example, which began to expand into agriculture by setting up a modern dairy farm near Sukheki more than a decade ago is now planning to venture into the manufacturing of “precision” farm machinery in the country.
The growing corporate interest in agriculture is not surprising given the huge business opportunities offered by this sector in terms of its production of some key agriculture commodities like wheat, rice, cotton, meat and milk.
“I am very much excited about the agricultural sector in Pakistan. There are enormous opportunities here for sustainable business growth and exports,” Mian Mohammad Mansha, the chairman of Nishat Group, told this correspondent last week.
The country’s food exports, especially of rice, grew 37 per cent to $8bn in the first 11 months of last fiscal year to May. “The sector’s actual potential remains unexplored. The large productivity gap underscores that agriculture can make huge contributions to economic growth, food exports, and poverty alleviation,” he adds.
Ever since venturing into corporate farming in 2013, his company, Nishat Agriculture Farms Limited (NAFL), has invested consistently and heavily in agriculture. The group owns five farms spread over 1,500 acres of farmland and a large modern dairy farm producing packaged milk and other dairy products in collaboration with a Turkish firm for the large urban market.
“When Nishat Agriculture bought the land, it was water-logged and barren. We have constantly been investing in mechanisation of our farms every step of the way, from seed plantation to irrigation to crop harvest since 2017. This has helped us reclaim uncultivable land and turn it into one of the most fertile pieces of farmland in the country,” Mian Mansha notes.
His efforts to turn his own farms into fertile land have also helped his neighbouring farmers in Thatha Raika village recover their thousands of acres of water-logged farms. Nishat Agriculture is growing four crops — Alfalfa (protein-rich fodder), corn, rice and wheat — at the farm.
“Our lands were almost knee-deep below water when Nishat began reclaiming their land,” a local farmer recalls. “Now the groundwater level has gone down significantly, and we are again able to cultivate our area.”
Mian Mansha argues that Pakistan’s agriculture has enormous potential, but there is a need to improve farming practices, especially replacing the age-old flood irrigation method, by promoting mechanisation to get more out of the land at a reduced cost and less burden on natural resources and land under cultivation.
“The rapid climate change demands that we quickly adopt mechanisation in agriculture to reduce water consumption (around 90pc of available water in Pakistan is consumed in farm irrigation in the country), improve crop output, and cut time spent on sowing and irrigation,” he maintains.
Since Pakistan does not manufacture most of the machines used in farming, the upfront cost of farm mechanisation is quite formidable, especially for smallholder farmers.
“Nevertheless, the long-term benefits of mechanisation in the shape of huge water conservation, significantly reduced input and labour costs, and notable increases in crop yields and product quality can be enormous,” the Nishat Group chairman underscores.
“We are also helping smallholder farmers from the area by educating them in efficient farming practices and new technology.”
“The Pivot Irrigation System that we have installed to irrigate our farms, for example, is extremely efficient and uses 70pc less water compared to conventional flood irrigation, lowers electricity consumption, improves precision application of inputs, and results in time and labour savings due to its uniform uses as against flood irrigation methods.
Jul 12, 2024
Riaz Haq
Nishat’s focus towards corporate farming - Newspaper - DAWN.COM
https://www.dawn.com/news/1844573
“The pivot irrigation system can also be accessed online through a mobile app to perform various functions. The water thus saved could be used by other farmers. This also helps us get much better crop yields even from dry land or sandy soils than other farmers,” he says.
Local Manufacturing: Recently, Nishat Agriculture Farms has imported the Yanmar rice transplanter, the automated seedling picking and planting system, from Japan and aims to manufacture the machine locally.
“We have plans to invest in local manufacturing of agriculture equipment and machines in Pakistan, starting with the Japanese transplanter. We may collaborate with Millat Tractors or may use our own auto assembly facility in Faisalabad,” he asserts.
A hydraulic system for effortless operations and maintenance, the transplanter significantly reduces seedling waste, improves crop spacing and uniformity for optimal growth, controls plant density, and increases efficiency in water and fertiliser usage.
“The use of rice transplanters is estimated to drastically slash the labour costs from present Rs11,000 per acre to less than Rs1,000,” a senior Nishat Agriculture Farms official claims. According to him, the Japanese manufacturer of the machine claims that Bangladeshi rice growers had more than doubled (up to 100-200pc increase) their production by using this machine.
Agriculture is the backbone of Pakistan’s economy, contributing more than a fifth. The sector is the largest employer, employing more than 45pc of the country’s total workforce and is a major source of export earnings.
However, the sector faces multiple challenges: low yield, negligible mechanisation, growing water scarcity, large post-harvest crop losses, absent storage and cold chain facilities, rapidly declining soil fertility, extreme climate events, land fragmentation and so on.
Economic experts are unanimous that Pakistan cannot achieve robust, sustainable economic growth without a boost to its agricultural productivity and rural incomes. That will require intensive efforts to manage energy, water, land, soil and energy more efficiently and sustainably through adaptation to climate change and mechanisation.
It requires substantive policy reforms in agricultural research, extension, seed technology, and input markets, as well as large investments. Corporate participation and investment in agriculture are key to tackling these challenges and transforming agriculture with precision and efficient farming techniques and practices.
With Pakistan’s agriculture at a turning point, corporate participation will go a long way in realisation of the sector’s untapped potential provided policymakers seize this opportunity to execute reforms needed to encourage corporates like Nishat Group to invest in this largely neglected area.
Jul 12, 2024
Riaz Haq
Pakistan's Arshad Nadeem won Olympic gold, $1 million in rewards and a buffalo : Goats and Soda : NPR
https://www.npr.org/sections/goats-and-soda/2024/08/21/g-s1-17578/o...
Arshad Nadeem made history at the Paris Olympics.
A strapping 6 feet 4 inches tall, he set a new Olympic record for the longest javelin throw – 92.97 meters or 305.02 feet.
The 27-year-old became the first Pakistani to secure an individual gold medal.
And oh, one more historic thing: He is undoubtedly the first Olympic champion to be given a buffalo as a reward for his prowess.
Nadeem grew up in a rural community in the Punjab province of Pakistan, the third oldest of eight children. He was a gifted athlete who gravitated to cricket. Then his dad, who worked as a mason, suggested he try a javelin.
------
And from his father-in-law: a buffalo.
Jokes were made – including by Nadeem. On a morning TV show, an anchor asked about the buffalo. Arshad said he had been hoping for a large tract of land since his father-in-law is wealthy. Then he added, “Okay, a buffalo will suffice, too.”
Actually that’s an understatement. The buffalo holds deep cultural significance in Nadeem’s home province of Punjab. “In rural communities, a buffalo is considered one of the most honorable and valuable gifts, much like camels in desert regions like Saudi Arabia,” says Rashad Bukhari, a writer and cultural commentator born and raised in Punjab.
The gift that keeps on giving ... milk
Buffalo are valued for their milk –- called the “black gold’ of Pakistan. With a higher fat and protein content than cow’s milk, buffalo milk makes up 72% of the nation’s milk supply. Their milk is also well-suited to turn into ghee, a clarified butter that is a staple of the Pakistani diet,
So for farmers in the agricultural province of Punjab, a female buffalo is … um … a cash cow.
And it’s a gift that keeps on giving … milk. The average lifespan of a buffalo is 20 years. A female usually starts producing milk after birthing a first calf at 3 years old. The animal will continue giving milk for the rest of its life, according to Dr. Burhan-e- Azam, a veterinarian who works for Punjab’s livestock dept as a farm manager and an animal nutritionist at a buffalo research institute. He notes that most buffalo will yield milk if the udders are massaged – even if the calf is not around.
If you have a buffalo and need some money, you’re in luck. “You can sell it whenever you want and get good money right away,” says Azam. The price of a buffalo typically ranges from $1,500 to $3,600.
That’s why Pakistanis call a buffalo “a poor man’s bank.”
“Buffalo is a blessing for our region,” he adds. “It does not even require too much care like other high maintenance animals.” After letting the animal graze during the day, he says, “mostly people would tie their buffalo with a tree” in their compound at night. He adds that buffalo are well-suited for both hot and cold climates.”
The importance of a buffalo for Punjab can be gauged from the fact that in ancient times there was a profession called khoji, an Urdu word that can mean “detective.” A khoji could study the footprints left by a buffalo thief and follow trails for days, even weeks, until the buffalo rustler was discovered. (The advent of security cameras and modern roads have brought an end to the profession.)
Buffalo are also a part of the traditional dowry in Punjab. And when a family buffalo dies, Bukhari says that to this day, neighbors visit to offer condolences.
And you may wonder – is it a little odd to have just one buffalo? That’s often the case for families in Punjab, says Azam. Many households have a sole buffalo — and benefit from free door-to-door vaccination services and medical care provided by the government.
For javelin king Nadeem, the buffalo is not just symbolic. Buffalo milk and homemade ghee were a staple in his diet while training. His father-in-law’s gift ensures that the Olympic medalist will have fresh milk as he trains for his next competition.
Aug 23, 2024