Pakistan Agribusiness Investments in Dairy & Livestock

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.
 



The Coca-Cola Company is planning to invest another US$280 million by 2013 in
Pakistan, according to BMI's Q3 2012 Food & Beverage Report for Pakistan.  Coke plans to channel the bulk of its
capital expenditures towards increasing the production of its existing
brands as well as expanding its overall beverages portfolio. Coca-Cola
plans to introduce more juices and mineral water in the Pakistani market
over the coming years. This strategy could diversify Coca- Cola’s
presence beyond the carbonates sector and help it secure early footholds
in the higher-value bottled water and fruit juice segments, which boast
tremendous long-term promise.



In addition to foreign investors, big name Pakistani companies like Dawood Group's Engro, billionaire industrialist Mian Mansha's Nishat Group and former minister Jahangir Khan Tareen's JK Dairies are placing big bets on food and beverage market in the country. Annual milk consumption in Pakistan reached 230 kg per capita in 2005, more than twice India's per capita consumption, according to FAO.

Business Monitor International expects "Pakistani agriculture sector to reap record harvests for key crops
such as rice, sugar and cotton owing to favorable weather in 2011 and the year-on-year increase in
crop area following floods in 2010". "We expect the dairy, poultry and
wheat industries to be the biggest beneficiaries of increased investment in the agriculture sector", adds BMI's report.

 Pakistan is world’s eighth
largest consumer of food and food is
the second biggest industry in the country, providing 16 per cent
employment in production, according to report published in Express Tribune In addition to rising domestic demand, growth in agribusiness is supplemented by
increased exports as Pakistan expands trade with new partners. BMI expects basmati rice to take
up a greater share of the trade as production increases. Cotton production to 2015/16: 45.5% to 12.8 million bales. Increased demand from Europe and
emerging markets will drive output. BMI also expect an increase in domestic farmers switching
from rice and sugar to cotton cultivation. Sugar production to 2015/16: 22.1% to 4.8 million tons. Large-scale consumers such as
confectioners, candy makers and soft drink manufacturers account for about 60% of the total
sugar demand and will be the main drivers of growth.

Pakistan witnessed a livestock revolution follow Green Revolution. Here's how International Livestock Research Institute puts the dramatic changes in Pakistan's agriculture sector since the mid 1960s: 

 Since the mid 1960s, investment in Green Revolution technologies – high-yielding varieties of cereals, chemical fertilizers, pesticides, irrigation and mechanization of farm operations – significantly increased cereal crop productivity and output. Success in the crop sector created a platform for diversification of farm and non-farm activities in the rural areas including the livestock sector, especially the dairy sector. Some of the Green Revolution technologies had a direct impact on the dairy sector while others had an indirect impact. Increased cereal productivity and output helped to reduce prices of cereals relative to other commodities in both rural and urban areas. This, along with increased income from high crop-sector growth, created  demand for better-quality foods including livestock products. This created market opportunities and incentives for crop producers to diversify into higher-value products, such as milk, meat, vegetables and fruits.

Pakistan has made significant progress in agriculture and livestock sectors showing that it has the potential to feed its people well and produce huge surpluses to fuel exports boom. The continuation of this progress will depend largely on success in making needed public and private investments in energy and water infrastructure and education and health care.

Related Links:

Haq's Musings

FMCG Consumption Boom in Pakistan 

Music Drives Coke Sales in Pakistan

World Bank Report on Pakistan Agribusiness

Pakistan's Sugar Crisis

FAO Livestock Sector Brief 2002 

Recurring Floods and Droughts

Poll Finds Pakistanis Happier Than Neighbors

Pakistan's Rural Economy Booming

Pakistan Car Sales Up 61%

Resilient Pakistan Defies Doomsayers

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Climate Change in South Asia

US Senate Report on Avoiding Water Wars in Central and South Asia

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Comment by Riaz Haq on March 17, 2013 at 4:22pm

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Comment by Riaz Haq on March 22, 2013 at 8:19pm

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

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

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

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

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

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

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

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

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

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

Comment by Riaz Haq on April 2, 2013 at 11:05pm

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

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

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

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

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

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

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

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

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

Comment by Riaz Haq on May 16, 2013 at 10:47am

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

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

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

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

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

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

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

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

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

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

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

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

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

Comment by Riaz Haq on July 15, 2013 at 11:19pm

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...

Comment by Riaz Haq on January 25, 2014 at 7:43pm

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...

Comment by Riaz Haq on June 18, 2014 at 10:12am

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...

Comment by Riaz Haq on June 26, 2014 at 8:32am

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...

Comment by Riaz Haq on July 2, 2014 at 10:51am

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.
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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

Comment by Riaz Haq on January 18, 2015 at 9:06pm

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

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