Pakistan Tops South Asia in Value Added Agriculture

Livestock revolution enabled Pakistan to significantly raise agriculture productivity and rural incomes in 1980s. Economic activity in dairy, meat and poultry sectors now accounts for just over 50% of the nation's total agricultural output. The result is that per capita value added to agriculture in Pakistan is almost twice as much as that in Bangladesh and India.

Adding value is the process of changing or transforming a product from its original state to a more valuable state, according to Professor Mike Boland of Kansas State University. The professor explains how it applies to agriculture as follows:

"Many raw commodities have intrinsic value in their original state. For example, field corn grown, harvested and stored on a farm and then fed to livestock on that farm has value. In fact, value usually is added by feeding it to an animal, which transforms the corn into animal protein or meat. The value of a changed product is added value, such as processing wheat into flour. It is important to identify the value-added activities that will support the necessary investment in research, processing and marketing. The application of biotechnology, the engineering of food from raw products to the consumers and the restructuring of the distribution system to and from the producer all provide opportunities for adding value."

Although Pakistan's value added to agriculture is high for its region, it has been essentially flat since mid-1990s. It also lags significantly behind developing countries in other parts of the world. For example, per capita worker productivity in North Africa and the Middle East is more than twice that of Pakistan while in Latin America it is more than three times higher.

Agriculture Value Added Per Capita in Constant 2000 US$--Source: World Bank
There are lots of opportunities for Pakistan to reach the levels of value addition already achieved in Middle East, North Africa and Latin America.These range from building infrastructure to reduce losses to fuller utilization of animals and crops for producing valuable products.  Value addition through infrastructure development includes storage and transportation facilities for crops, dairy and meat to cut spoilage. Other opportunities to add value include better processing of  sugarcane waste, rice bran, animal hides and bones, hot treatment, grading and packaging of fruits, vegetables and fish, etc.

Agriculture Value Added Per Capita in South Asia, North Africa and Latin America--Source: World Bank
Pakistan's growing middle class has increased demand for dairy, meat and various branded and processed food products. Engro, Nestle, Unilever and other food giants are working with family farms and supermarket chains like Makro, Hyperstar and Metro Cash and Carry to respond to it by setting up modern supply chains.

Growth of value added agriculture in Pakistan has helped the nation's rural economy. It has raised incomes and reduced rural poverty by creating more higher wage jobs. It has had a salutary effect on the lives of the rural poor in terms of their ability to afford better healthcare, nutrition and education. Doing more to promote value added agriculture can accelerate such improvements for the majority of Pakistanis who engage in agriculture and textiles and still live in rural areas.

Related Links:

Haq's Musings

Most Indians and Pakistanis Employed in Agriculture and Textiles

Pakistan Among Top Meat and Dairy Consuming Nations

Upwardly Mobile Pakistan

Comparing Pakistan and Bangladesh

FMCG Boom in Pakistan

Agricultural Growth in India, Pakistan and Bangladesh

Pakistan's Rural Economic Survey

Pakistan's KSE Outperforms BRIC Exchanges in 2010

High Cost of Failure to Aid Flood Victims

Karachi Tops Mumbai in Stock Performance

India and Pakistan Contrasted in 2010

Pakistan's Decade 1999-2009

Musharraf's Economic Legacy

World Bank Report on Rural Poverty in Pakistan

USAID Report on Pakistan Food & Agriculture

Copper, Gold Deposits Worth $500 Billion at Reko Diq, Pakistan

China's Trade and Investment in South Asia

India's Twin Deficits

Pakistan's Economy 2008-2010

Comments

Riaz Haq said…
Here's a book review of "How Asia Works" by Amb Maleeha Lodhi published in The News:

An important new book explains why some countries have become economic tigers in East Asia while others are relative failures or paper tigers. ‘How Asia Works’ by Joe Studwell is a bold and insightful work that is essential reading for anyone interested in understanding the ingredients for economic success in this continent.

It challenges much conventional wisdom in the development debate. Most significantly the book questions key tenets of the so-called Washington consensus, which prescribes free market ‘solutions’ for all economies regardless of their level of development. Studwell establishes that a nation’s development destiny is shaped most decisively by government action and policies. History, writes the author, shows that markets are created, shaped and re-shaped by political power.

---------------

At the very outset, Studwell identifies three critical interventions that successful east-Asian countries and China (after 1978) employed to achieve accelerated economic development. The first, “often ignored”, and now “off the political agenda” in developing countries, is land reform. This restructured agriculture into highly labour-intensive household farming. In the early phase of development, with the necessary institutional support, this helped to generate a surplus, create markets and unlock great social mobility.

The second intervention, as countries cannot sustain growth only on agriculture and must transition to the next phase, is to direct entrepreneurs and investment to industrial manufacturing. Manufacturing allows for trade and technology learning. And trade, says the author, is essential for rapid economic development. Studwell then demonstrates – while challenging the champions of free trade – how nurturing and protection, along with instituting “export discipline”, builds the capacity to compete globally. Manufacturing policy is a key determinant of success he says, as an infant industry strategy offers the quickest route to restructuring the economy towards more value-added activities.

Holding that development is quintessentially a political undertaking, the author sees the relationship between the state and private entrepreneurs as a critical variable. History, he writes, teaches that governments should not run everything themselves. But governments have to use their power and the right policy tools to make private entrepreneurs do what industrial development requires.

The third intervention necessary for accelerated development is in the financial sector, aimed at directing capital initially to intensive, small scale agriculture and to manufacturing rather than services. Studwell argues persuasively that it was the close alignment of finance with agriculture and industrial policy objectives that produced north-east Asia’s economic success.

Detailing the role of financial policy, he illustrates how premature bank deregulation exacted a high price in Thailand and Indonesia. China, on the other hand, and other north-east Asian countries resisted that, instead using financial management to serve development needs and an accelerated economic learning process.



http://www.thenews.com.pk/Todays-News-9-211468-Asian-tigers-and-paper-tigers
Riaz Haq said…

Agriculture and textiles are the largest employers in both India and Pakistan.

About 60% of India's and 42% of Pakistan's labor force are engaged in agriculture, according to World Bank.

About 60% of India's workforce is in agriculture. Textile industry is the second biggest employer, accounting for a fifth of India’s exports, and employs almost 10 percent of India’s workforce, or some 35 million people, and has the potential to add another 12 million new jobs --dwarfing the 1-2 million jobs created by the much-heralded IT and BPO sector, according to a World Bank report.

Agriculture in Pakistan accounts for 19.4% of GDP and 42% of labor force, followed by services providing 53.4% of GDP and 38% employment, with the remainder 27.2% of GDP and 20% workers in manufacturing sector. Over half of Pakistan's manufacturing jobs are in the textile sector, making it the second biggest employer after agriculture.

The dire situation in India's agriculture sector has been epitomized by over 200,000 farmers' suicides in the last decade. And the rising Indian rupee is now hurting India's textile sector by making its exports more expensive in the world market.

http://www.riazhaq.com/2010/10/agriculture-andtextiles-employ-most.html
Riaz Haq said…
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-executives-key-towards-growth/
Riaz Haq said…
Here's a report on growth of beekeeping industry in Pakistan's Potohar region:

Battered by erratic weather patterns with decreasing and delayed rainfall, thousands of farmers in Pakistan’s northeast Potohar plateau are moving to beekeeping as an alternative source of livelihood that is less vulnerable to climate change.

A single flood, no or deficient rain in one cropping season, or lack of water in the river system due to delayed glacial melt can ruin farmers’ livelihoods. “However, training farmers in alternative climate-resilient livelihoods like beekeeping can go a long way in making farming communities resilient to climate change impacts,” said Dr. Zafar Iqbal, former chairperson of the National Disaster Management Authority, in Pakistan’s capital Islamabad.

The fact that many farmers find beekeeping a more profitable alternative and therefore reduce farming or completely shun it has its own impact on food security. But it helped many households survive in Potohar – a sprawling region between the Indus and the Jhelum rivers and stretching up to the foothills of the Himalayas. Around 70 per cent of rain in the region is received between July and August.

“Because of erratic weather patterns and unreliable crop harvests, our income had become irregular and was declining. But the beehives give us regular income,” said Hakim Khan, a beekeeper in Ghool village of Chakwal district, about 90 kilometres southeast of Islamabad.

The district — one of the four in Potohar along with Attock, Rawalpindi and Jhelum – is known for its exportable quality of groundnuts and stretches over 6,500 square kilometres of semi-arid terrain. It has a population of nearly 1.5 million and relies entirely on the rains for cultivation of crops.

It was known as an area for abundant rain. However, the situation has changed over the years. Until 1998, it would receive around 1,200 millometres rainfall annually. This has come down to less than 900 millometres, according to the Pakistan Meteorological Department.
----------
In this scenario, beekeeping has been a saviour for many families in the area. Hakim Khan from Ghool, for instance, survived the poor harvest by taking to beekeeping. He also continues to grow groundnut.

“The additional income from beekeeping has helped me survive crop losses. I adopted beekeeping three years ago to cover up income losses from the groundnut crop,” Khan said while examining the wooden bee boxes on a plot adjacent to his groundnut field.

He was amongst the lucky ones trained in beekeeping — producing honey, hives and wax — by the Pakistan Poverty Alleviation Fund (PPAF) under the Drought Mitigation and Preparedness Project. Farmers in various villages of Chakwal district have also been provided with financial aid.

In a ripple effect, Khan has taught other farmers about beekeeping and its benefits. “I learnt about the economic benefits of less labour and investment (in beekeeping)… Now, more and more farmers are approaching to me to learn about beekeeping,” he told thethirdpole.net.

Citing an example, he said a groundnut farmer-turned-beekeeper who purchased 10 wooden boxes of hives for Pakistani Rs.34,000 (about US$347) three years ago now has 90 boxes worth Pakistani Rs.1,020,000 (about US$10,400).


http://www.eco-business.com/news/pakistans-farmers-counter-climate-change-beekeeping/
Riaz Haq said…
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....


http://www.fao.org/fishery/countrysector/naso_pakistan/en
Riaz Haq said…
Five farmers took their lives in Maharashtra in the three days to Monday.

The wave of farmer suicides in the rain-shadow regions of Marathwada and Vidarbha continues unabated despite the new Bharatiya Janata Party government announcing relief measures to combat the agricultural crisis affecting more than 19,000 villages in the State.

Three consecutive years of drought and unseasonable rain have broken the spirit of farmers.

Reports say changing weather patterns, mounting indebtedness and poor crop yield are driving farmers to suicide.

Tulsidas Madalwad, a minor farmer, electrocuted himself at Kakandi village in Nanded district unable to pay off the debts accumulated over multiple bad harvests on his two-acre farm. “He returned from his field and electrocuted himself by stringing wires to his feet around 10 a.m. When his wife and little daughter came with food, they found him charred to death,” a villager said.

Madalwad was devastated by the destruction of his soya bean crop and was worried about repaying more than Rs. 1 lakh to banks and local moneylenders, the people said.

In the neighbouring Latur district, Sangram Bemde, 46, another marginal farmer, immolated himself on Monday after his cotton crop failed for the third consecutive year, traumatising his family and relatives.

Kashiram Indore, 76, built a pyre and jumped into it on Friday following the poor soya bean yield from his one-acre farm at Manarkhed in Akola. Indore was despondent as just a quintal and a half of soya bean could be harvested this year.

The Javadekar family of Javda in Buldhana is facing the grimmest winter after their only son, Shivshankar, 24, hanged himself on Saturday evening as he could not repay the Rs. 60,000 loan his family took after their two-acre farm faced consecutive years of drought.

Family members said Shivshankar was aspiring to pursue higher education. Another farmer too committed suicide in the district.

http://m.thehindu.com/news/national/120-farmers-killed-themselves-in-maharashtra-in-november-activist/article6652123.ece/
Riaz Haq said…
INDIA’S monsoon is one of the world’s most important weather events. About half of the country's population—that is, 600m people—depend directly on the rain it bears. The monsoon sweeps northward across the subcontinent, bringing moist air from the south and south-west Indian Ocean. As it hits the land, and especially as it rises towards the Himalayas, it dumps its cargo of water, producing about three quarters of India’s total rainfall between June and September. Two-thirds of Indian agriculture is still fed by this rain, rather than by irrigation, which means India’s harvest depends on it. When the monsoon fails, as it has done this year, millions suffer. Crops wilt or fail altogether, farm land dries up, reservoirs, already too-small, run low, and winter crops (which are mostly irrigated) are imperilled. In some places this year, a lack of rain has led to shortages of drinking water.

Like all weather patterns, the monsoon is erratic. Four years in ten count as abnormal. But this year—in which total rainfall is 14% below the 50-year-average between June and September—is exceptional. Droughts of this sort happens about once every 18 years. There is also extreme variation within the variation. Some parts of the country, the western state of Gujarat for example, have seen higher-than-normal rainfall. Others, especially in the north and the eastern coast, have had precipitation that is 40% below average.

Climate change seems to be making the variations more extreme. The Intergovernmental Panel on Climate Change, an international group of scientists who advise governments on global warming, has warned that because of climate change monsoon rainfall extremes are likely to increase. But exactly why this should so be is up for debate. No one yet fully understands the link between the monsoon and El Niño, a warming of the waters in the central and eastern Pacific Ocean. Over the past century, most climate scientists have argued that a strong El Niño is associated with a weak monsoon because, as the Pacific warms, the air rises and comes down again over the subcontinent, driven by prevailing wind patterns. This descending warmer air is associated with higher pressure, less moisture and a weaker monsoon. The current El Niño is the strongest since 1997 and 1998, according to Australia’s Bureau of Meteorology, and will be at its most powerful at the end of the year.

During the 1980s and 1990s, however, this link seemed to be broken. The year 1997 saw one of the strongest El Niños on record, but a normal monsoon. Balaji Rajagopalan of the University of Colorado, Boulder, argues that the puzzle can be explained by looking at which part of the Pacific warms up during an El Niño. If the eastern waters warm, the air comes down again over Indonesia and South East Asia, which tend to be drier than normal. But this may not affect India. If the central Pacific warms, the high pressure tends to form over India and the monsoon fails. If Professor Rajagopalan is right, this year’s El Niño is getting stronger in the central Pacific than in the east. The Indian Meteorological Department is hoping to incorporate this information into its monsoon forecasting system.

http://www.economist.com/blogs/economist-explains/2015/10/economist-explains-0
Riaz Haq said…
University of #California #Davis, #Pakistan launch $17M food,agriculture Center For Advanced Studies at #Faisalabad

http://www.davisenterprise.com/local-news/ucd/ucd-pakistan-launch-17m-food-ag-partnership/ …


The launch of a $17 million collaborative project linking UC Davis and Pakistan’s leading agricultural university was celebrated today at UCD, which will receive $10 million of the funds.

The new U.S.-Pakistan Center for Advanced Studies in Agriculture and Food Security, funded by the U.S. Agency for International Development, will make it possible for faculty members and graduate students from both countries to study and do research at each other’s campuses. The project also is designed to update curriculum and technical resources at Pakistan’s University of Agriculture, Faisalabad.

Present for today’s ceremonial launch were dignitaries from Pakistan, USAID and UCD.

“UC Davis has been partnering with colleagues in Pakistan since 2009, sharing expertise in agriculture from crop production to post-harvest handling,” said James Hill, associate dean emeritus of International Programs for the College of Agricultural and Environmental Sciences at UCD.

“Establishment of this new center will allow us to build on those efforts, with a renewed emphasis on an exchange of faculty and graduate students,” he said.

During its first year of funding, the center will plan several workshops to assist the University of Agriculture, Faisalabad, with technology transfer and entrepreneurship to strengthen its connections to the private sector. UCD also will initiate programs in both research and curriculum development to improve graduate studies.

Hill noted that two other Pakistan-focused projects are already underway through the International Programs office, primarily in the area of horticultural crops and agricultural extension activities.

Agriculture is the largest sector of Pakistan’s economy, providing jobs for half of that country’s labor force. Some of the traditionally important crops in Pakistan are wheat, cotton, rice, sugar cane and maize. In recent years, crops like beans, peas, lentils, onions, potatoes, chilies and tomatoes also have increased in importance, along with fruit crops such as citrus and mangoes.


The newly funded center at UCD is the most recent of several partnerships of the U.S.-Pakistan Centers for Advanced Studies, a $127 million investment from USAID, linking universities in the two countries and using applied research to solve Pakistan’s challenges in energy, water and food security.

The overall program includes construction of laboratories, research facilities and libraries in Pakistan. Other participating U.S. universities include the University of Utah and Arizona State University, focusing on water and energy, respectively.
Riaz Haq said…
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#storylink=cpy
Riaz Haq said…
PARC approves 16 projects worth Rs1.2bn
http://www.dawn.com/news/1296963/parc-approves-16-projects-worth-rs12bn

The Pakistan Agricultural Research Council (PARC) has approved 16 research projects with a total budget of Rs1.2 billion for 2016-17.

In addition, the PARC board of governors approved Rs194 million for projects under international cooperation and Rs183m for Agriculture Linkage Programme (ALP).

Talking to Dawn on Thursday, National Agricultural Research Centre (NARC) Director General, Dr Mohammad Azeem Khan said a hybrid seed processing plant will be set up at the NARC with a view to provide clean, treated and high quality seeds to farmers.

He said agricultural research facilities are now being extended to tribal agencies, particularly Waziristan.

The Arid Zone Research Institute in Dera Ismail Khan will also be expanded at the same time, he said.

Under a project, pesticides residue analysis laboratories will be set up in all parts of the country. These laboratories will cover food chains, health, and environment and production technology with a view to pursue international standards.

According to Dr Azeem, three projects will be set up in Balochistan covering horticulture and livestock.

The NARC is also developing a mechanism for the establishment of demonstration units of yogurt under public-private partnership (PPP).

The PARC has recently recommended 14 rice hybrids for different ecologies, two wheat varieties: ‘Borlaug 2016’ and ‘Zincol 2016’, two sugarcane varieties: ‘Thatta 2109’ and ‘Thatta 326’, working on commercialisation of genetically modified (GM) crops, and bioremediation on 86 sites full scale wastewater treatment facilities through Pakistan.

The performance of various PARC projects — including mobile veterinary clinic services, feed technology unit, high eggs and meat producing chicks, ostrich breeding facilities, American channel catfish hatchery at NARC, Tilapia hatchery and aqua feed production to promote intensive fish culture in the country — was also reviewed by the board of governors at a meeting.

Riaz Haq said…
#India's #Monsoon Concerns Are More Evidence That India Is Still A #Poor #Agricultural Country via @forbes

https://www.forbes.com/sites/timworstall/2017/04/19/indias-monsoon-concerns-are-more-evidence-that-india-is-still-a-poor-country/#755f9f043b31

The basics are that Indian agriculture is some 13% or so of GDP and that the sector employs some 50% of Indian labour. From which we can gain at least one useful lesson, that Indian agriculture is very much less productive than the other areas of the economy. By contrast American agriculture is some 1% of GDP and it employs some 1% of the population. That is, American agriculture makes about the same contribution to production as it does to the consumption of labour. That labour is therefore around and about as productive in that sector as is the average across the American economy. That India's agriculture uses much more of the labour than it produces as a share of GDP shows that it is less productive as a sector than the rest of the Indian economy.

But we can also go further than this. Basic labour intensive rainfed agriculture simply doesn't produce a lifestyle much above that of the rural peasantry. That's just because rural peasantry is what we call those living at the standard which labour intensive rainfed agriculture provides. And as long as such a large portion of the population are doing that work then the economy more generally is going to be a poor one.

One useful indicator of India becoming much richer will be when the monsoon announcements no longer interest very much. For when the rains don't affect the economy very much then obviously everyone must be doing more productive things than standing around in muddy fields.
Riaz Haq said…
Exclusive: CPEC master plan revealed

https://www.dawn.com/news/1333101


Enterprises entering agriculture will be offered extraordinary levels of assistance from the Chinese government. They are encouraged to “[m]ake the most of the free capital and loans” from various ministries of the Chinese government as well as the China Development Bank. The plan also offers to maintain a mechanism that will “help Chinese agricultural enterprises to contact the senior representatives of the Government of Pakistan and China”.
The government of China will “actively strive to utilize the national special funds as the discount interest for the loans of agricultural foreign investment”. In the longer term the financial risk will be spread out, through “new types of financing such as consortium loans, joint private equity and joint debt issuance, raise funds via multiple channels and decentralise financing risks”.

The plan proposes to harness the work of the Xinjiang Production and Construction Corps to bring mechanization as well as scientific technique in livestock breeding, development of hybrid varieties and precision irrigation to Pakistan. It sees its main opportunity as helping the Kashgar Prefecture, a territory within the larger Xinjiang Autonomous Zone, which suffers from a poverty incidence of 50 per cent, and large distances that make it difficult to connect to larger markets in order to promote development. The prefecture’s total output in agriculture, forestry, animal husbandry and fishery amounted to just over $5 billion in 2012, and its population was less than 4 million in 2010, hardly a market with windfall gains for Pakistan.
However, for the Chinese, this is the main driving force behind investing in Pakistan’s agriculture, in addition to the many profitable opportunities that can open up for their enterprises from operating in the local market. The plan makes some reference to export of agriculture goods from the ports, but the bulk of its emphasis is focused on the opportunities for the Kashgar Prefecture and Xinjiang Production Corps, coupled with the opportunities for profitable engagement in the domestic market.
The plan discusses those engagements in considerable detail. Ten key areas for engagement are identified along with seventeen specific projects. They include the construction of one NPK fertilizer plant as a starting point “with an annual output of 800,000 tons”. Enterprises will be inducted to lease farm implements, like tractors, “efficient plant protection machinery, efficient energy saving pump equipment, precision fertilization drip irrigation equipment” and planting and harvesting machinery.


Meat processing plants in Sukkur are planned with annual output of 200,000 tons per year, and two demonstration plants processing 200,000 tons of milk per year. In crops, demonstration projects of more than 6,500 acres will be set up for high yield seeds and irrigation, mostly in Punjab. In transport and storage, the plan aims to build “a nationwide logistics network, and enlarge the warehousing and distribution network between major cities of Pakistan” with a focus on grains, vegetables and fruits. Storage bases will be built first in Islamabad and Gwadar in the first phase, then Karachi, Lahore and another in Gwadar in the second phase, and between 2026-2030, Karachi, Lahore and Peshawar will each see another storage base.
Riaz Haq said…
#Swiss #agriculture #tech giant Syngenta
to invest $1.4bln in #Pakistan | Business | http://thenews.com.pk

https://www.thenews.com.pk/print/207811-Syngenta-to-invest-14bln-in-Pakistan

KARACHI: Syngenta Pakistan, a Switzerland-based company, dealing in premier crop protection and the third largest seeds business, announced to support small and medium growers to take up modern ways of farming, with the primary objective to ensure food security in the country, a statement said on Wednesday.

Tina Lawton, Syngenta’s head of Asia-Pacific Region, made her first visit to Pakistan and toured Syngenta’s research and development facility near Lahore to review Syngenta’s operations and understand the Pakistan agriculture market and how to support its further development, it added. She also met Syngenta franchisees and farmers to get insight on the market; whereby, assuring them Syngenta’s commitment to Pakistan and upholding its long tradition of 50 plus years presence in the country. She also discussed the modernisation of the Naya-savera Franchise model with the use of latest pioneering technology.

Lawton said that Syngenta’s transition of new ownership to ChemChina will not affect its status as a Swiss company and it will continue to focus on long-term investment through over $1.4 billion annual investment in research and development in Pakistan, the statement said.

Lawton’s visit proved extremely fruitful and truly demonstrated the Syngenta’s commitment to improve the life of farmers. Syngenta is all geared up to transform the agriculture sector of Pakistan, making it a self-sufficient economy to meet its food requirements by bringing in new technology and products, which will cater to the needs of the ever-growing agriculture industry in Pakistan, it added.
Riaz Haq said…
Western capitalist view in Forbes: But India's Farmers Should Go Bust, That's How Economic Development Works

https://www.forbes.com/sites/timworstall/2017/06/11/but-indias-farmers-should-go-bust-thats-how-economic-development-works/#59d5b2ee327e

There are protests, and calls for political action, over the plight of India's farmers at present--and the one important point we've got to get across to people is that India's farmers should be going bust because that's how economic development actually happens. People stop doing low productivity things like rain fed labour intensive agriculture and go off and do more productive things like working in factories or producing services. It's entirely true that we should make the transition as painless as possible, no doubt about that, but we do not want to be preventing the change from happening because that just keeps everyone poorer than they need to be. The harsh truth is that not being able to make a living doing something is the universe's method of telling you you should be doing something else. This is as true of farming as it is of buggy whip manufacture. We are all, the people doing the labour most of all, made richer by people moving from low productivity activities to higher.

----------

The political reaction to this we understand, of course we do. Some 50% or so of Indians are involved in this low productivity agriculture and they've all got the vote. But that doesn't change the economics here, which is that we'd really very much like people to stop being farmers and go and do something else more productive.


------

India has some 50% or so of the population in that agriculture and the output has a value of some 15% or so (rough numbers) of GDP. Both what will mark out India as a rich country, and what will make it one, is when the labour and output profiles of agriculture are similar to those other rich countries. Because that's just what getting richer as a whole means. That the vast majority of the population stops standing around in muddy fields and goes off to do something more productive instead. It's not just that this is what has happened everywhere that has got rich it's that this is the very definition of a place and population getting rich.

Not being able to make a living farming is the universe's way of telling you to do something other than farming. India should smooth the transition, certainly, but not subsidise people to remain farmers.
Riaz Haq said…
THE EXPRESS TRIBUNE > BUSINESS
Pakistan could eat India’s share of basmati rice exports

https://tribune.com.pk/story/1456663/pakistan-eat-indias-share-basmati-rice-exports/


Pakistan could target India’s basmati rice share in the global market, a likelihood sparked by stringent policies placed by the European Union (EU) on the presence of hazardous pesticides in the commodity, said an official.

From January 1, 2018, all countries that export basmati rice to the EU must bring down the maximum residue limit (MRL) level for Tricyclazole, a pesticide, to 0.01 mg per kg. Up till now, the EU was accepting 0.03 mg per kg from different countries, including India.

The chance that Pakistan could eat up a share of India’s market comes from the fact that the country’s farmers do not use such chemicals to protect their crops.

However, Indian farmers widely use the pesticide under scrutiny and exporters fear that up to 95% of basmati shipments could take a hit by the new regulation.

Since new EU regulations could completely choke off Indian basmati exports, an Indian government delegation is leaving for Brussels this week to discuss the restrictions.

On the other hand, a Pakistani basmati exporter says this presents an opportunity to grab India’s market share, because it will at least take two cycles to reduce the consumption of Tricyclazole in the country.

“Pakistan currently exports 100,000 tons of basmati to the EU a year, which can go up to 250,000 tons per annum after EU regulations,” Matco Foods Pvt Limited Director Faizan Ali Ghori told The Express Tribune.

India, the world’s biggest exporter of basmati rice with a share of about 70%, exported 350,000 tons of basmati to the EU worth $268 million in fiscal year 2016-17.

Raising Rs1 billion from the stock market

Meanwhile, Matco Foods – one of the leading basmati rice exporters in Pakistan – is expecting to raise Rs1 billion through the Initial Public Offering (IPO) it has planned for around September this year.

The company plans to invest the proceeds in its two rice glucose plants in Karachi. Rice glucose is the main ingredient for pharmaceutical, confectionery, and juice industries.

“We want to move towards value added products to increase exports,” said Ghori.

The company exports rice to over 60 countries.

Matco’s first rice glucose with a capacity of 10,000 tons per annum is being commissioned in Karachi at an investment of Rs350 million. The other factory will have a capacity of 20,000 tons that will be set up in the next one to two years.

The company will prefer international markets as it expects to fetch as much as $11,000 per ton against a price range of just $400-$500 per ton in the domestic market, Ghori said, adding that there is a growing demand in western markets for rice glucose.

Currently, there are two rice glucose factories in Pakistan – both in Karachi due to proximity to ports and export markets.

Matco’s management believes the demand for rice glucose will increase because it is not genetically modified and safer for children. At present, over 90% domestic demand of pharmaceutical and confectionary industries is being met by corn glucose.

CPEC opens avenues for agri-exports

“There is so much room for diversification in rice exports because Pakistan does not make value added products from rice that have huge domestic as well as international demand,” he added.

Popular posts from this blog

China Sees Opportunity Where Others See Risk

Economic Comparison Between Bangladesh & Pakistan

Smartphones For Digital & Financial Inclusion in Pakistan