World raw sugar futures hit a 28-year high of 23.52 cents a pound last week as the fears of a bad sugarcane harvest grew stronger. The key background factor is the continuing scarce supply scenario in the global market because of weather factors, particularly in India, the second largest producer of sugarcane, according to the Wall Street Journal. While India is dealing with too little monsoon rain, the largest sugar producer Brazil is being hurt by too much rain.
At 4.89 million tons of annual sugar production, Pakistan is the tenth largest sugar producer in the world, and yet it has to import sugar, exposing it to the effects of sugar shortages and rising prices in the world. Pakistanis consume over 25 Kg of sugar per person versus India's 20Kg. Sugar cost Rs 25 per Kg (30 US cents) at the start of 2009 and now costs more than Rs 50, says independent economic analyst A.B. Shahid. This doubling of the price is likely to further enrich the large number of sugar producing politicians who are already rich and powerful.
The most pessimistic estimates show a 23 percent decline in sugar crop production this year. While last year Pakistan produced 4.7 million tons, farmers are on track to produce 3.2 million tons this year. That means a severe shortfall as annual national consumption is 4.2 million tons.
Both sugar production and per capita consumption as well as overall calorie intake have been rising in Pakistan. In the last four decades, per capita calorie intake in Pakistan has grown from 1750-2450 (kilo)calories with an average annual growth rate of 0.90%. Nevertheless, 20% of Pakistan's population is still undernourished. Sugar consumption has been showing an increasing trend for the last 15 years. It has increased from 2.89 million tons in 1995-96 to 3.95 million tons in 2005-06. One of the many reasons behind this increase is rise in the total population of the country, which has reached 170 million. The per capita sugar consumption data shows that it has also risen from 22.2 kg in 1995 to 25.8 kg in 2004-05. For 2008-09, the overall sugar consumption is forecast at over 4 million tons, which is less than the target production. But the government is importing about 300,000 tons of sugar to ensure availability of sufficient stock to cover any shortfalls from the usual smuggling to Afghanistan which remains a fact of life in Pakistan.
In addition to relatively large per capita sugar consumption, Pakistanis also consume significantly higher amounts of meat, poultry and milk products than other South Asian nations, getting more protein and almost half their daily, per capita calorie intake from non-food-grain sources.
The fact that Pakistanis have a sweet tooth is not lost on the nation's ruling elite, particularly the powerful political families and the Pakistani military. While the military owns Fauji sugar mills, more than 50% of the sugar in Pakistan is produced in sugar mills owned by the most powerful politicians of all major parties and their families.
Multiple sources indicate that the mills owned by President Asif Ali Zardari’s family and the ruling PPP leaders include Ansari Sugar Mills, Mirza Sugar Mills, Pangrio Sugar Mills, Sakrand Sugar Mills and Kiran Sugar Mills. Ashraf Sugar mills is owned by PPP leader and incumbent ZTBL President Ch Zaka Ashraf.
The media reports also indicate Kamalia Sugar Mills and Layyah Sugar Mills are owned by PML-N leaders. Former minister Abbas Sarfaraz is the owner of five out of six sugar mills in the NWFP. Nasrullah Khan Dareshak owns Indus Sugar Mills while Jahangir Khan Tareen has two sugar mills; JDW Sugar Mills and United Sugar Mills. PML-Q leader Anwar Cheema owns National Sugar Mills while Chaudhrys family is or was the owner of Pahrianwali Sugar Mills as it is being heard that they have sold the said mills. Senator Haroon Akhtar Khan owns Tandianwala Sugar Mills while Pattoki Sugar Mills is owned by Mian Mohammad Azhar, former Governor Punjab. PML-F leader Makhdoom Ahmad Mehmood owns Jamaldin Wali Sugar Mills. Chaudhry Muneer owns two mills in Rahimyar Khan district and Ch Pervaiz Elahi and former Minister of State for Foreign Affairs, Khusro Bakhtiar have shares in these mills.
Among other basic food commodities, per million population wheat consumption in Pakistan is 115,000 metric tons versus 63,000 metric tons in India, according to published data.
According to the FAO, the average dairy consumption of the developing countries is still very low (45 kg of all dairy products in liquid milk equivalent), compared with the average of 220 kg in the industrial countries. Few developing countries have per capita consumption exceeding 150 kg (Argentina, Uruguay and some pastoral countries in the Sudano-Sahelian zone of Africa). Among the most populous countries, only Pakistan, at 153 kg per capita, has such a level. In South Asia, where milk and dairy products are preferred foods, India has only 64 kg and Bangladesh 14 kg. East Asia has only 10 kg.
While it remains very low by world standards, meat and poultry consumption has also increased significantly in Pakistan over the last decade. Per capita availability of eggs went from 23 in 1991 to 43 in 2005, according to research by N. Daghir. Per capita meat consumption in Pakistan now stands at 12.4 Kg versus India's 4.6 Kg.
In spite of South Asia's growing horticulture industry, the intake of fruits and vegetables in India and Pakistan is surprisingly low at less than 100 grams per day per capita, according to the World Health Organization. This figure is far lower than the 300 grams of fruits and vegetables per person in Australia, EU and the US.
In spite of the fact that there is about 22% malnutrition in Pakistan, the average per capita calorie intake of about 2500 calories is within normal range. But the nutritional balance necessary for good health appears to be lacking in Pakistanis' dietary habits. One way to alleviate the sugar crisis in Pakistan is to reduce sugar consumption and substitute it with greater intake of fruits and vegetables. There is an urgent need for better health and nutritional education through strong public-private partnership to promote healthier eating in Pakistan.
Here is a video clip about sugar crisis:
Related Links:
Agricultural Diversification in South Asia
Nutrition in Pakistan
FAO Report on Food Consumption Patterns
Wheat Consumption in India and Pakistan
World of Sugar
Pakistan's Livestock Farming
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How many hundreds of millions of poor Indians are there? asks the NY Times:
Nobody can argue that India has hundreds of millions of poor people and that the government should help them. What remains a matter of significant dispute, however, is just how many poor people there are in India.
The government Planning Commission estimates that 27.5 percent of the country’s population lives below the poverty line, which is calculated based on how much it would cost to buy 2,400 calories a day in rural areas and 2,100 in urban areas. (City dwellers are thought to exert less energy, so they should need to consume less.)
Many have challenged the way India measures poverty. The latest complaint came last week when a commission appointed by the country’s Supreme Court said the number of people living in poverty is probably at least 50 percent, because it asserts that the Planning Commission poverty line has been wrong for years because it does not properly adjust for the rise in food prices.
The difference is not merely technical.
A high poverty line means that the federal government has to give state governments more money for various anti-poverty programs. Even the prime minister, Manmohan Singh, acknowledged recently that higher measures of poverty could be tough on government finances, which are already severely strained.
Regardless of whether or not people can buy the requisite calories, data from a national survey taken every five years shows that most Indians are indeed not consuming 2,400 (or 2,100) calories each day, and many are now consuming less than they used to 10 years ago. The poorest 25 percent of Indians now consume 1,624 calories, from 1,683.
Moreover, most of the calories consumed by the poor come from cereals, whereas the diet of the rich includes more meat, vegetables, fruit and other foods with higher nutritional value.
Perhaps even more distressing is the finding by the Supreme Court panel that more than half of the country’s poorest 20 percent of people do not have the cards that identify them as poor and are necessary to access public welfare plans. At the same time, about 17 percent of the richest Indians have such cards.
According to chartbins.com, South Asians have the following calorie intake and composition:
India Pakistan
2300 Cal 2250 Cal
71% Carbs 63% Carbs
10% Protein 10% Protein
19% Fat 27% Fat
According to chartbins.com, South Asians have the following calorie intake and composition:
India Pakistan
2300 Cal 2250 Cal
71% Carbs 63% Carbs
10% Protein 10% Protein
19% Fat 27% Fat
Overview of Livestock, Dairy, Fisheries & Poultry Sectors in Pakistan:
1 Dairy Sector
With an estimated 33 billion litres of annual milk production from 50 million animals, managed by
over 8 million farming households, Pakistan is the 5th largest milk producing country in the world
Livestock sector contributed approximately 53.2 percent of the agriculture value added and 11.4
percent to national GDP during 2009 – 10
The milk economy in terms of value is over 27% of the total Agriculture sector
Additional potential of 3 billion litres of milk, with a growth rate faster than any other sector
Of the total 33 billion litres of milk produced, 71% is rural based and 29% is urban based
Of the total production, around 3% is processed and marketed through formal channels
40% Supply and Demand gap exists in Pakistan.
2 Livestock Sector
Livestock sector contributed approximately 53.2 percent of the agriculture value added and 11.4
percent to national GDP during 2009?10.
Gross value addition of livestock at current factor cost has increased from Rs. 1304.6 billion
(2008?09) to Rs. 1537.5 billion (2009?10) showing an increase of 17.8 percent as compared to the
previous year.
The population growth, increase in per capita income and export revenue is fuelling the demand for
livestock and livestock products.
Pakistan earned USD717 million from leather exports in FY09 and a meagre USD96 million from meat
exports.
Poultry sector is one of the organized and vibrant segments of agriculture industry of Pakistan.
This sector generates employment (direct/indirect) and income for about 1.5 million people.
Poultry meat contributes 23.8 percent of the total meat production in the country
The meat demand for Pakistan Domestic market is growing at a rate of 2.73% for Beef, 2.90 % for
mutton and 6.10 % for poultry.
This domestic demand is growing to meet the population growth, human need for protein and
calcium, migration of population from rural to urban and the fluctuating growth due to per capita rise
in income.
-------
3 Fisheries Sector
During the period July?March 2009?10 the total marine and inland fish production was estimated
952,735 Million tons out which 667,762 Million tons were marine production and the remaining catch
come from inland waters.
A number of sites have been earmarked on an area of 20,000 acres of land in Districts Thatta &
Badin along the coast.
Immense potential exists to start commercial scale fish/shrimp farming in Sindh.
4 Poultry Sector
Poultry is an important sub – sector of agriculture and has contributed enormously to food production by
playing a vital role in the domestic economy.
Poultry industry can broadly be divided into three
groups, viz. hatchery, poultry farming and feed sectors. This sector generates employment and income
for about 1.5 million people in Pakistan. Its contribution in agriculture growth is 4.81% and in Livestock
growth is 9.84%, whereas, the total poultry meat contributes to 23.8% of the total meat production in
the country.
Pakistan, with a population of 170 Million people, has gone through a sizeable growth in the production
of poultry meat and eggs. Per capita availability went up from 23 in 1991 to 46 eggs in 2009 and poultry
meat availability increased from 1.48kg to 2.88 kg during the same period. In our Country per capita
consumption of meat is only 7 KG and 60-65 eggs annually. Whereas developed world is consuming 41
KG meat and over 300 Eggs per capita per year. According to Industry sources there is capacity of 5,000
Environmental Control Houses in Pakistan and currently only 2,500 houses are working.
The total Poultry population in Pakistan is approximately 610 Million.
Pakistani millers are seeking permission from the government to export up to 500,000 tonnes of refined sugar as they are expecting bumper production, according to Dawn news:
Pakistan’s annual sugar consumption is about 4.2 million tonnes, and export of the sweetener has been banned for nearly three years due to reduced output. But this year, the country is expecting about 5 million tonnes from the 2011/12 crop, with carryover stocks of up to 600,000 tonnes, Javed Kayani, chairman of the Pakistan Sugar Mills Association (PSMA), told Reuters.
“Even after meeting domestic needs and maintaining strategic stocks, Pakistan could still export up to 500,000 tonnes of refined sugar, and there will be no shortage in the country,” Kayani said.
“This will also help us make payments to growers and meet our financial obligations in time, as the government is delaying a decision to buy sugar from local mills,” he added.
Government officials were not immediately available to comment.
The state-run Trading Corporation of Pakistan (TCP) on Friday re-issued a tender to buy 200,000 tonnes of white sugar from local mills in a bid to cut cost after domestic prices fell in recent weeks to around 55 rupees ($0.61) per kg from about 70 rupees in November.
The tender was originally issued on Nov. 3. The government buys sugar every year for its strategic reserves and for its subsidy scheme. A growers’ body, Agri Forum Pakistan, has asked the government to either buy sugar from local mills or allow them to export so that they can pay outstanding dues to farmers.
If exports are allowed, Pakistani sugar would add to plentiful global supplies.
ICE raw sugar futures slipped to a 6-1/2-month low on Thursday. March white sugar futures on Liffe lost $1.40 to finish at $596.30 per tonne in modest volume of around 3,550 lots.
Pakistan had to import about 1.2 million tonnes of sugar last year after production fell to 3.1 million tonnes from the 2009/10 crop, when many farmers switched to more profitable crops.
The country, however, produced, 4.1 million tonnes of refined sugar in 2010/11 (July-June) year despite devastating floods in 2010.
http://www.dawn.com/2011/12/16/pakistani-millers-want-sugar-export-ban-lifted-on-plentiful-output.html
Pakistan's food exports are surging, reports PPI:
ISLAMABAD, (Asia Pulse) - Pakistan's exports of food commodities surged by 22.73 percent during the first five months of the current fiscal year to reach at $1.514 billion, Federal Bureau of Statistics (FBS) reported.
The overall food exports were recorded at 1.514 billion during July-November (2011-12) as compared to the exports of $1.233 billion during July-November (2010-11), according to FBS figures issued.
The food products that contributed to positive growth included fish and fish preparations, exports of which increased from $106.742 million last year to $125.959 million during the first five months of this year, showing an increase of 15.83 per cent.
Exports of fruits also increased by 13.94 per cent from $77.753 million to $88.595 during the period under reviews, showing positive growth of 13.94 per cent, the data revealed.
Exports of vegetables and tobacco increased by 28.47 percent and 27.62 per cent respectively during the period under review.
During the month of November 2011, the food exports witnessed negative growth of 25.85 per cent and 6.93 per cent when compared to the exports of October 2011 and November 2010 respectively.
The overall food exports during November 2011 were recorded at $223.360 million against the exports of $301.246 million in October 2011 and $239.984 million in November 2010, the data revealed.
http://www.lankabusinessonline.com/fullstory.php?nid=152011880
Pakistan produces 13.67 million tones of fruits and vegetables per annum, according to Online News:
An official told Online on Tuesday out of which about 25 per cent goes waste, between farms to consumers, while only 4 per cent is exported at far 41 per cent lower price compared to world average price.
The horticulture sector contributes about 12 per cent to the national agricultural Gross Domestic Product (GDP) and holds great potential for increasing export of quality horticultural produce, and offering multiple employment opportunities throughout the supply chain, he added.
The official said, “However, its growth & profitability is restrained mainly by lack of proper post harvest management and transport infrastructure. Improving post harvest management infrastructure (grading, packing, storage and transport/cold-chain) will help reduce high post harvest losses, increase production surplus along with improving shelf life and quality of fresh produce, which will help to stabilize prices in domestic markets as well as to substantially boost export to highly lucrative and competitive international markets.”
It is pertinent to mention here that Ministry of Commerce had decided to establish a “Cool Chain System” under “National Trade Corridor Improvement Project”. The Cool Chain project is bound act as a backbone for the development of supply chain infrastructure for horticulture produce.
http://www.onlinenews.com.pk/details.php?id=187430
"As the green revolution tapered off, a poultry revolution began; in the late 1970s. Ever since, Pakistan has been gnawing away at broiler chicken and there’s no turning back", wrote Punjab's director general of board of investments in a recent Op Ed in Dawn.
In 2011/12 K&N’s expects to produce 80 million layer and broiler chicks, reports thepoultrysite.com.
In the 1960’s and 1970’s, obtaining safe, reliable sources of poultry feed was an insurmountable challenge in Pakistan. This led Khalil to set up his own feed mill to produce feed for K&N’s operations at Karachi in 1971. With the growing need of feed for the integrated production operations in Central Punjab province and Northern areas of the country, a feed mill established by a multi-national company at Lahore, was acquired by K&N’s to take advantage of low-cost feed ingredients available in the Central part of Pakistan.
The growth of commercial poultry production through the decades changed the mindset of consumers towards farm raised broilers and eggs, helped by lower prices and greater availability. Today, Desi chicken and eggs are produced in lower volumes and considered more of a delicacy.
Yet the strength of the live/wet chicken market culture, the negligible overheads of roadside sales – a butcher’s knife costs less than US$1 – and the reassurance of Halal slaughter remain significant influences slowing the uptake of processing, says Adil Sattar.
Practical problems, particularly the limited availability of cool chain facilities and frequent power breakdowns, have to be overcome with production and distribution of processed products inevitably involving high overheads.
"Earlier, within our industry, poultry processing was considered a non-viable poultry business activity as many firms had tried but ended up closing down their operations," says Adil. "At K&N’s, we endeavoured to develop the market, and other companies are now looking to start processing operations."
Today, chicken is the most popular protein source in Pakistan, primarily through the industry’s growth and success leading to lower cost and widespread availability, with per-capita consumption about 7kg (15.4lb) per year. The tradition is to eat chicken at home, always skinless cooked in curries, with rice or barbecued.
Restaurants offer local cuisine including a variety of curries, barbecue dishes and different types of rice, with a number of upmarket cafes and restaurants serving western cuisine and many of the international fast food caterers such as McDonald’s, KFC, Pizza Hut, Nando’s, Hardees and Subway also present.
"As the green revolution tapered off, a poultry revolution began; in the late 1970s. Ever since, Pakistan has been gnawing away at broiler chicken and there’s no turning back", wrote Punjab's director general of board of investments in a recent Op Ed in Dawn.
In 2011/12 K&N’s expects to produce 80 million layer and broiler chicks, reports thepoultrysite.com.
In the 1960’s and 1970’s, obtaining safe, reliable sources of poultry feed was an insurmountable challenge in Pakistan. This led Khalil to set up his own feed mill to produce feed for K&N’s operations at Karachi in 1971. With the growing need of feed for the integrated production operations in Central Punjab province and Northern areas of the country, a feed mill established by a multi-national company at Lahore, was acquired by K&N’s to take advantage of low-cost feed ingredients available in the Central part of Pakistan.
The growth of commercial poultry production through the decades changed the mindset of consumers towards farm raised broilers and eggs, helped by lower prices and greater availability. Today, Desi chicken and eggs are produced in lower volumes and considered more of a delicacy.
Yet the strength of the live/wet chicken market culture, the negligible overheads of roadside sales – a butcher’s knife costs less than US$1 – and the reassurance of Halal slaughter remain significant influences slowing the uptake of processing, says Adil Sattar.
Practical problems, particularly the limited availability of cool chain facilities and frequent power breakdowns, have to be overcome with production and distribution of processed products inevitably involving high overheads.
"Earlier, within our industry, poultry processing was considered a non-viable poultry business activity as many firms had tried but ended up closing down their operations," says Adil. "At K&N’s, we endeavoured to develop the market, and other companies are now looking to start processing operations."
Today, chicken is the most popular protein source in Pakistan, primarily through the industry’s growth and success leading to lower cost and widespread availability, with per-capita consumption about 7kg (15.4lb) per year. The tradition is to eat chicken at home, always skinless cooked in curries, with rice or barbecued.
Restaurants offer local cuisine including a variety of curries, barbecue dishes and different types of rice, with a number of upmarket cafes and restaurants serving western cuisine and many of the international fast food caterers such as McDonald’s, KFC, Pizza Hut, Nando’s, Hardees and Subway also present.
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