failure Pak Export fruits and vegetables

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Export Of

Pakistani Fruits and VegetablesTo

EU And International Market


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Acknowledgement

Wewould like to thank my respected teacher, Dr. Yasin whose sincere effort in guiding me on this

The study has only made this report possible; His teaching guided usthroughout in this report and

Provided us with an opportunity to explore the working on

Export of Pakistani Fruits and Vegetables to EU and International Market.

We have tried our level best to collect and report maximum information related to our fruits

and vegetables.


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Export of Pakistani Fruits and Vegetables to EU and International

Market

By:

Misbah Moid

(BM-25859)

Karrar Abbas

(BM-25880)

Sehrish

(BM-259323)

Advisor Name

Dr. Yasin

Date of Submission: july24, 2014


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Index

1. Introduction ........................................................................................................................5

2. Fruit exports from Pakistan.6

2.1.Kinnow.6

2.2.Apple.7

2.3.Mango.7

2.4.Guava9

2.5.Dates.9

3. Vegetables exports from Pakistan11

3.1.Potato11

3.2.Onion.12

3.3.Garlic.13

3.4.Chilli13

4. Why cant we get success to boost our exports.14

5. Problems faced by export sector.15

6. What can be done for improvement.16

7. Strategies for developing fresh produce exports.17

8. E.P.B promotional efforts.17

9. Refrences.18


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EXPORT OF PAKISTANI FRUITS AND VEGETABLES TO

EU AND INTERNATIONAL MARKET

1.Introduction:

Agriculture being the largest sector of Pakistan can help improve trade balance of payment. It's alarge sector and requires to be analyzed sectors wise, especially few less touched areasHorticulture market: There are a large horticulture export market and Pakistan though anagricultural economy is only marginally present in this market. The size of the global horticulturemarket was worth $77 billion in 1998. Out of a total world horticulture import market of $77 billionin 1998, the fruit and vegetable segments constituted a $60 billion market while fruit and vegetable

juices contributed $6 billion. The fruits had taken the lead with a 40 per cent share and vegetablesfollowed this with a 38 per cent share while fruits and vegetable juices contributed another 8percent. Thus together fruits and vegetables make a major component (86 percent then

horticulture market. Nature has bestowed upon Pakistan a land and climate conducive to thegrowth of a wide spectrum of fruits and vegetables. The produce of fruit and vegetable in Pakistancomes from approximately 811,800 hectares or about 4 per cent of the country's cultivated area.The major fruits are citrus, mangoes, dates, bananas and guavas.

Out of total annual agriculture production of the country, the province of Punjab contributes 59.6percent, Sindh 8.6 per cent, Balochistan 25.6 per cent and NWFP contributed 6.2 per cent.Pakistani fruit and vegetables are being demanded in almost all over the world. Presently Pakistanis exporting fruits and vegetables to the USA, the Europe, Middle East, Far East, India and SriLanka. Mango, Kinnow, apple, dates, oranges and guava are well exported fruits and amongvegetables are potato, onion, mushroom, garlic, chilly etc. It is observed by looking at the data,Pakistan is heavily relying on one market for each item. For example, Dubai is the biggest market

for Pakistani Mango following England and Saudi Arabia. Sri Lanka is the only biggest market forPakistani fresh apple. In such situation, the buyer dictates his terms. There is a need to explorenew markets for Pakistani fruits and vegetables to gain better prices. The Export PromotionBureau is striving hard to explore new markets and assist interested exporters to increase exports.Exporters must explore new markets to catch up with high prices.

2.FRUITS EXPORTS FROM PAKISTAN

Pakistans fruit export market, as it grew by 8.1% between 2010-11 and2011-12. Majorinternational markets for Pakistani fruiting are Russia, UAE, Saudi Arabia, Muscat, UK and Iran.

However, Pakistans fruit exports to Iran have so far been Zero, because of the trade restrictionsrecently imposed on Iran by international financial institutions.

The fruit quality declines while pickings. Thatswhy Fruits are harvested by clipping the stem withthe help of sharp clippers (Secateurs). The stem is cut as short as possible to avoid mechanicalinjury to the fruit in packing and transits. As it is a comparatively loose rind fruit, harvesting bypulling fruits with one's hands is avoided.
http://en.wikipedia.org/wiki/Secateurhttp://en.wikipedia.org/wiki/Secateur


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2.1.KINNOW

Kinnow is a fruit with a close relation to the Mandarin yet has a unique taste. Grown in Pakistanand demanded all over the world, the juicy, soft, scented and refreshing Kinnow offers ease ofpeeling and juice content is unequaled by citrus fruit anywhere else in the world. This is primarilydue to the soil constituency and climate under which it grows. This environment is available inPunjab, Pakistan from November to March. It is widely used for juices, squashes, jams, jellies andmarmalade.

Kinnow is the most exportable fruit of Pakistan. 32.5 percent of total exports are to the Middle Eastalone, followed by Indonesia, the Philippines, and Sri-Lanka and remaining to other markets of theworld

Major export destinations for Pakistani kinnow include Russia, far eastern countries and six

members of the Gulf Cooperation Council. Iran and Indonesia are also big export markets ofPakistan, but their potential cannot be exploited for various reasons.

Latest London based research (Dawn 1 1.11.2001) discovered citrus fruit is best to protect malesagainst prostate cancer, which need to be capitalized by Pakistani exporters.

Japan may be a good market for Pakistan Kinnow in the coming years with the expected volumeof 50,000 to 60,000 tons, provided Pakistan Horticulture Development & Export Company(PHDEC) makes serious efforts to explore this market.

Coating Kinnow with a commercial wax can increase the shelf life up to 60 days. The fruit can bestored in cold storage at a temperature of 4c to 5c and a relative humidity of 85%-90%.

2.2.APPLE

Apple is also known as THE SWEET GOLD OF PAKISTAN. Baluchistan has the largest areaunder fruits in Pakistan as nearly one million tons of fruits are annually produced from 0.23 millionhectares. In this way, Baluchistans share in the country's fruit area and production is 32.6 per centand 17.4 per cent, respectively. The production of deciduous fruits (particularly apple) inBaluchistan has a special significance among other fruit growing areas. This is because theenvironmental conditions are relative far more suitable for the production of apple. Therefore,


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apple is the first large planted fruit in Baluchistan and it is second most produced fruit after Datesin the province. Apple is grown in the highlands of Baluchistan and it covers 0.101 million hectareswith a production of 0.224 million tones having a retail value of about Rs6.7 billion.

Apple comes in all shades of reds, greens, and yellows. Apple comes in all shades of reds,greens, and yellows. Tur-Kulu (Red Delicious) and Shin-Kulu (Golden Delicious) are the famousvarieties for their very attractive color and taste throughout Pakistan.

Export Promotion Bureau has been making concerted efforts to promote the export of non-traditional items, with the objective to diversifying the country's exports. Accordingly, the Bureaustarted organizing an apple show at Quetta in 1994. These shows have generated lot of interestamong the growers and exporters of apples, the exports of apples has picked up from almost zeroin 1994-95 to about 6000 metric tons during 1999-2000.

The Show aim at bringing together progressive apple growers, horticulturists, active exporters andforeign buyers with a view to introduce apples of N.W.F.P., besides identifying measures forboosting export of apples specifically from N.W.F.P. Various varieties of apples which are beinggrown in this province displayed during the show namely; Top Red, Red Spur, Kala Kulu, SuperGold, Red Chief, Apple Elite, Stark Crimson, Oregon Spur, Red Rom Beauty, Royal Gala, Spartan

and Double Red etc.Sri Lanka is the only biggest market for Pakistani fresh apple

2.3.MANGOMango is called the KING OF ALL FRUITS, enjoys second position after citrus. The sweet yellowfruit is a contentious matter regionally; with both countries proclaiming it a national treasure andfighting over whose specimens are superior. Because of its excellent flavor, attractive fragrance,beautiful shades of color, delicious taste and healthful value, the mango is now recognized as oneof the best fruit in the world market, a veritable King of Fruits, as it is known in South Asia.Pakistan is among the leading mango producers as it is the original and natural habitat ofmangoes.

Pakistani mangoes are high in fiber, low in calories and contain a small amount of carbohydrates,calcium, iron, potassium and a little protein; they are rich in vitamins A, B and C and also containother antioxidant vitamins. Mangoes have more carotenoids than most other fruits and that helpsword off colds and reduces the risk of cancer and heart disease.

There are a number of varieties of this fruit to choose from including Sindhri, Langra, Dusehri,Anwar Retaul, Gulab Khas, Sunera, Chaunsa, Black Chaunsa, White Chaunsa, Began Phali, Fajrietc. All of these diverse varieties have distinctive colors, aromas and tastes. It is indeed amazingthat so many unique tastes come from the same fruit originating from so close proximity.

1. SINDHRI

For many Sindhri mango is the epitome of perfection in mangoes. It is oval in shape with abeautiful yellow color, very low fiber and an incomparable aroma. Availability is from 20th May to30th June.2. CHAUNSAKnown for being very sweet, firm and low fiber. Its available between mid of June to the end of

August. Chaunsa is one of a kind and is much sought after by its aficionados.3. FAJRIFajri is a large size mango. Fajri has little aroma but the pulp is fibreless. Availability is from 15thJune to 5th August.


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4. DUSEHRIMedium size fruit with greenish yellow color. Dusehri is slightly aromatic. Pulp is fibreless.

Availability is from 20th May to 10th July.OTHER VARIETIES OF MANGOGULAB KHAS

Availability: 1st June to 15th June

LANGRAAvailability: 20th May to 10th JulySUNERA, BEGAN PHALI

Availability: 25th June to 30th JulyBLACK CHAUNSA, WHITE CHAUNSA

Availability: 15th August to 1st October

Dubai is the biggest market for Pakistani mango following England and Saudi Arabia.Eeconomically, at least, mango exports are one area where Pakistan appears to have a slightedge.

According to respective official figures, Pakistan last year exported around 100,000 tonnes forrevenue of $48.6 million over India's 56,000 tonnes for $44.6 million. But a European Union (EU)ban on India's prized Alphonsos, known as the King of Fruits, has presented Pakistan with achance to widen the gap. The embargo came into force on May 1 after many shipments werefound to contain fruit flies According to Raja Ijaz Ahmed Noon, parliamentary secretary forPakistan's breadbasket Punjab province, We are taking this development as positive. We aretrying to learn from the mistake which India has made. Experts are busy hanging plastic bowls onmango trees that are laced with chemicals that mimic female-fly pheromones to attract males. Theholes are for the flies to enter, but they never fly out. The so -called sex-trap is fast becoming anindustry standard.

The experts had also being extolling the benefits of so-calledHot Water Treatmentwhichinvolves immersing the fruit in water at 52 degrees Celsius to kill larvae within the mango pulp.The practice has become a common substitute for fumigation that is seen as harmful to humanhealth.

There is a demand from the European Union that there should be no fruit fly in our fruits, it shouldbe hot water treated, it should be anti-fungus, and it should be washed properly. We (have) gotthese facilities in Multan now, said by a mango exporter.

Despite a growing sense of optimism, there are several factors holding back the export market.The fruit is most abundant in the southern Punjab, but the regional airport in Multan lacks directflights to many major international capitals, meaning the mangoes must travel for hours by road toeither Lahore or Karachi.

The mango is a sensitive fruit and needs plenty of irrigation, while long periods in cold-storage cannegatively impact on fruit quality.

Pakistan's chronic energy crisis means farmers are at times unable to use their water pumps toirrigate fields, while the increasing irregularity of the traditional monsoon season has exacerbatedthe issue.
http://www.dawn.com/news/1099293http://www.dawn.com/news/1099293http://www.dawn.com/news/1099293http://www.dawn.com/news/1099293


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We are facing a shortage of water, simultaneously we have power cuts, we can't produce goodquality mangoes unless we have a proper watering system. said by a grower

2,4.GUAVAThe common guava (Psidium guajava L.) is the most important member of the Myrtaceae family. Itis reported to have originated in Central America but now has thoroughly naturalized throughoutthe tropics and subtropics. By virtue of its commercial and nutritional values, guava is considered acommon man's fruit and can be rightly termed as the "apple of the tropics." Guava is of commercialimportance in about 58 countries. Pakistan is ranked third among guava producing countries.In Pakistan, it is grown in all the provinces over an area of 58.5 thousand hectares with productionof 468.3 thousand tones. The major guava growing areas include Shariqpur, Kasur, Lahore,Sheikhupora, Sangla Hills, Gujranwala in the Punjab; Kohat, Haripur and Bannu in the North WestFrontier Province and Larkana and Hyderabad in Sindh. As already stated guava is successfullygrown under tropical and subtropical climate zone. In areas having distinct winter season, the yieldtends to increase and quality improves. It can be grown from sea level to an altitude of about 1515m. Young plants are susceptible to drought and cold conditions. Dry atmosphere at the time of

flowering and fruit setting is ideal whereas high temperature at fruit development causes fruit drop..

Presently guavas are grown almost entirely for fresh consumption. However, international marketfor fresh guavas is small. Nevertheless, more trade is carried on processed guava products likeJuices and nectars, Jam and Jellies, fruit paste, canned whole and halves in syrup. Some tradersbelieve that there is a good international market potential for fresh guavas and that demand willgrow as more consumers become acquainted with this fruit.

Guava being a hardly plant, required less irrigation water and is not affected by extremes of hot orcold temperatures, but cannot tolerate frost.

2.5.DATESA date fruit is the product of a date palm, a tree native to Northern Africa and the Middle East,although it is also cultivated in other parts of the world. In addition to being eaten fresh, the datefruit is dried and eaten whole as a snack or included in an assortment of desserts. Many regionalMiddle Eastern cuisines incorporate dates, as do Mediterranean cuisines like those of Italy andGreece. Dried dates are usually readily available in most markets, and fresh dates can be found inspecialty markets in season.

Dates have a big advantage over other fruits and that is that dates can keep for a long time. Theydo need to be refrigerated or they can be frozen. Refrigerated they will keep for up to a year, andfrozen up to five years. It is good to keep them in airtight containers to preserve the moisture.

Dates are rich in minerals and relatively high in fiber.Pakistan has become the third largest countryin the world that is exporting dates to the rest of the world and with proper attention andappropriate interventions this sector can flourish manifold.The date sector offers substantial opportunities for export, income and employment generation inaddition to economic growth of the country. The annual production of dates in Pakistan isestimated at around 535,000 tonnes of which only 86,000 tonnes are exported and the rest areeither consumed locally or perish. Pakistani dates exports could be raised to $200 million from thecurrent $28 million with proper processing and packaging. Since 1999, per acre yield of dates inPakistan did not increase much, whereas world-wide production increased by 166 percent.


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The country lacked storage facilities and so exported some quantity of dates while the rest perish.

Thus due to these problems the country had to import dates during the month of Ramazan.Importers of dates such as Germany, Denmark, India, Nepal, USA, UK, Afghanistan and Canadaare re-exporting Pakistani dates after quality enhancement and preparation of by-products, at a

price that is four to six times higher than their import price.

Of the 300 varieties of dates produced in Pakistan, Begam Jangi of Balochistan, Aseel of Sindhand Dhakki of Dera Ismail Khan are the varieties which are sought after the world over due to theirexotic taste.

Dates could fetch many more millions of dollars if focus was given to value addition such as theuse of dates in preparing date sweets, jams, chocolates and other products.Even the damaged crop is used for medical purposes and date oil is fit for use in cosmetics.The usage of dates increases during the winter season thus its price and demand surge.

Report by the USAID revealed that lack of awareness about the best farming practices, improper

fruit handling techniques, and an absence of developed processing facilities are major constraintsinhibiting profitable date production in Pakistan.

A date farm owner stated that usually the harvest season of dates starts in July in upper Sindhduring the monsoon season; they remain safe due to lack of rain in these areas during harvesting.

3.VEGETABLES EXPORTS FROM PAKISTAN

Vegetables offer good value in terms of nutrients and therefore, less developed countries,especially South Asian States have vegetable dietary habits. Hence these poor countries grow andconsume much more vegetables for their main food requirements .Pakistan has greater

opportunities, being a centre for vegetable production and can export fresh and canned vegetablesin most of the Asian countries to earn foreign exchange. At present, mostly the growers dependson imported seeds, but it is true that many jobs farm of labourers, could be created by growingvegetables for seed production,seed trade and export business may also increase, which reduce annual import costs on vegetableseeds.Farmers prefer to grow vegetables due to short plantation duration and it is considered as the lowdelta crop. The vegetables can play great role in boosting the economy of the country, due to thefact that this sector has not been explored to earn more income through exports to other countries.


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After growing at a steady rate in the last decade, Pakistans vegetable exports have sufferedvolumetric year-on-year decrease of 40.4% in 2011-12. The drop in vegetable exports is aconsequence of natural disasters, unfair profiteering by middlemen and a change in supply anddemand dynamics in the foreign markets. The significant drop in vegetable exports is mainlybecause the onion crop was destroyed by floods. Pakistan fetched $180.2 million by exporting

edible vegetables in fiscal2011-12. Their exports increased at 39%annually between 2007 and2011, as per the World Trade Organisation (WTO).Notably, the rise in the countrys vegetableexports between 2010 and 2011alone was a staggering 122%.

3.1.POTATOPotato is eaten intensively in a variety of forms such as boiled, baked, and cooked. As vegetable itis eaten alone as well as mixed with other vegetables, and as snacks, the most popular of thembeing the finger chips. It has medical significance.

As large amounts of potatoes are consumed, these contribute more protein and iron than othervegetables in the average diet and are also useful sources of thiamine, niacin and several othernutrients including fibre.

Over the years, potato has become an important crop for both farmers and consumers in Pakistan. It is thefourth most important crop by volume of production; it is high yielding, having a high nutritive value and giveshigh returns to farmers.

Punjab, Sindh, NWFP and Balochistan respectively account for 83, 1, 10 and 6 percent of the total area and

83, 1, 9 and 7 percent of the production of potatoes in the country. The shares of autumn, spring and

summer crops in the annual production are estimated at 75, 10 and 15 percent, respectively. Districts of

Okara, Sahiwal, Kasur, Sialkot, Sheikhupura, Jhang, Lahore, Narowal, Pakpattan, Gujranwala, T.T. Singh

and Khanewal from the Punjab, Nowshera, Dir and Mansehra from the NWFP and Pishin, Killa Saifulla and

Kalat from Balochistan are important potato growing districts, accounting among themselves for 78 percent

of the total production of the crop.

Pakistani potatoes are losing export markets which have created a crisis for growers. Iran, SriLanka, Afghanistan and Malaysia are the major markets of Pakistani potato.

Various factors accountable for low potato yields include lack of knowledge among farmers aboutgrowing techniques, costly seed, diseases, weeds and insect pests, mismanagement of fertiliserand irrigation, and damages caused to potato tubers during harvesting, packing, transport andstorage.


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3.2.OnionOnion (Allium cepa L) is one of the important condiments widely used in all household all theyear round. Nature has given us many beneficial and useful plants to mankind. One suchwonderful plant is onion. Onion is one of the oldest cultivated herbs.

According to the United Nations Food & Agriculture Organization, Pakistan is the fifth leadingonion producing country now.

It is wonderful vegetable. It would have been a fruit if it had not been pungent and full ofsulphuric compound. It comes in varying shapes and sizes; and has beneficial properties forhealth particularly being fat free. This vegetable is most often used to enhance flavors in a widerange of recipes, casseroles, pizzas, soups, stews and salads. Onions are also processed forfresh consumption. Onions are a vegetable for all seasons and tastes.

After a gap of two years, Pakistan will export onion to about 2 lac MT ton, by the end of March2013. The export would bring around $50 million as currently Pakistani onion is fetching $250 per

MT in the international market. This year Sindh crop is estimated to be about 1.5 to 1.6 million ton,which may spell good financial fortune for exporters and farmers.

Crop helped to boost country's export to UAE, Middle East, Bahrain, Muscat, Kuwait, Sri Lanka,Malaysia, Singapore and Mauritius. The crop size of onion is enough and export would bring greatfinancial relief to the farmers, who have borne massive losses during previous two years.India is the major exporter of onion for major importing countries of the region. It caters to theirrequirement round the year while export of Pakistan is limited for a period of 3 to 4 months.Indian onion yield is very high as the government provides huge incentives, besides, facilities tothe growers and exporters resulting in high export of the commodity without any interruption.From February to March of the current year, Indian onion was dominating the international marketon account of low price and bulk production.

Pakistani onion is facing major challenge from Indian quality, therefore, unless Pakistan would notimprove variety and enhance yield per hectare by doing research and development the exporttargets would not be easy to achieve. The R&D would help improve existing varieties; otherwiseIndia would remain dominant in global markets. Moreover, Pakistani farmers should takemeasures such as improvement in pre and post harvesting methods. The research activities couldonly be done with the assistance of the government, which also needs involvement of agriculturistsand food technologists.

One of the major reasons of high yield of Indian onion is huge incentives and storing facilities tothe growers and farmers resulting in high export of the commodity without anyinterruption. Pakistani onion is facing major challenge from Indian ones as quality wise it has nocompetition

3.3.GARLICGarlic is the second most widely used cultivated Allium after onion. It has long been recognized allover the world as a valuable spice for foods and a popular remedy for various ailments andphysiological disorders.it is grown throughout Pakistan, whereas Punjab produces comparativelymore than of others. And consumed by most of the people. It is used practically all over the worldfor flavouring various dishes.


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The important garlic producing countries in the world are China, Turkey, India, Thailand, Korea,Egypt, Pakistan etc.

Itsbeing exported to Turkmenistan, Afghanistan, Canada, Dubai and Saudi Arabia.

3.4.ChilliSouth Asia is also known for its predilection for spicy foods and for cultivation of a myriad of chillivarieties. In Pakistan, Sindh holds the position of top producer of red chillies, a spice liked for itsstrong pungent taste and red colour. Itshot, pungent taste is owing to the presence of capsaicin,a chemical substance that also quickens digestive process and possesses great medicinal value.

Apart from this, red chillies are also a very good source of vitamins A, B, C, and contain highquantities of magnesium, potassium, and iron. Red chilies are used primarily as a spice is foodsand beverages in whole form or in powdered form. In addition, red chilies are used as mainingredients in various types of Sauces, vinegars, ketchups, and pickles.

Pakistan continues to remain among the top five producers in the world. Sindh is the largestproducer of red chillies with annual production at 85,000 tons, which amounts to 85% of thecountrys produce. The top producers of red chillies are India, China and Mexico. In Sindh, redChillies are being cultivated in an area of nearly 40,000 hectares with per hectare yield at 1.9metric tons. In Sindh, a small town of Kunri, once called the Chilli Capital of Asia alone produces55% of Sindhs produce. Other cultivation hubs are Mirpur Khas, Sanghar, Badin, TandoMuhammad Khan, Khairpur, Shikarpur, and Ghotki. The main varieties from Kunri are Desi, Mexi,and Nageena while Talhari, a winter variety is from Badin. Ghotki is from Ghotki and Khairpur andSanam is cultivated in the outskirts of Karachi. However, Dundicut or Loungi variety from MirpurKhas which is round-shaped mainly uses for chilli powder. The varieties grown in Pakistan are ofhigh quality and clearly superior to other varieties grown in the region

The top importing countries in the world are the USA, UK, Netherlands, Germany, Japan, Malaysiaand some countries of the Middle East. Pakistan has realized only a fraction of its potential asproducer of red chillies. Despite better varieties, Pakistani red chillies fetch lower price than Indianvarieties. Proper post-harvest handling and marketing of Sindhi red chillies are the needs of thehour. Red Chillies in Kunri Dundicut from Mirpur KhasSindh - The Land of Endless Opportunities Anumber of initiatives are being taken by various organizations to improve the quality and quality ofred chillies production. Agribusiness Support Fund, a project of USAID is funding the constructionof 588 solar dryers in Kunri, which have resulted in a reduction of drying time from 8-10 days to 4-5 days and a 20% increase in income. Moreover, Ministry of Industries, Government of Pakistanhas started the funding of a dehydration plant consisting of 02 state-of-the-art hot-air dehydrationunits at a cost of Rs 192 million. The plant dehydrates 30 tons red chillies a day and will functionas a demonstration unit as well as a common facility center.

4.Why Can't We Get Success To Boost Our Exports

While meetings with different parties involved in whole cases, let me first explain the

characteristics of the product, than constraints faced by growers, infrastructure providers and

exporters.


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Post-production losses:According to the statistics compiled by the Ministry of Food andAgriculture, because of lack of post- production care, the loss of fruit and vegetable yield suffered

by growers amounts to almost one-third of the total yield. During 1994-95 alone, the loss of fruit

and vegetable production amounted to Rs16, 765 million, while the total value was Rs.47, 892

million.

Perish ability: Almost all related products are highly perishable nature and have a very limited shelf life.They cannot be stored for a longer period unless they are properly harvested and kept in a temperature-

controlled environment (cold storage). Cold storage facilities are not available in the country that results in

very high post harvest losses ranging from 25 to 40 per cent.

Seasonality:Most of products are not available all year round rather are subject to specific availabilityseasons. The availability season of any one horticulture product varies among different varieties and

different geographic locations.

Quality:Quality is a combination of agronomic practices, variety characteristics, grading, processing andfinal packaging. The absence of even a single factor makes the product inferior in quality and thus less

acceptable in international markets.

Small-scale production:Small and medium scale producers dominate production. In particular,vegetable farmers are mostly small-scale producers and among the orchard owners are both small-sized

and medium-sized producers. Pakistan has not been to supply to buyers of fresh produce, looking for bulk

purchases and uniform quality, as farmers are of small and medium scale.

Supply chain:The supply chain is divided in three exhaustive groups as:

a. Growers

b. Infrastructure providers (processing, grading, packing, storage, transportation)

c. Exporters

Nothing can be achieved unless stakeholders work in coordination with each other. So far, there has been

no or very little coordination among the stakeholders.

Lack of infrastructure:Lack of storage and transportation infrastructure result in about 40 percent postharvest losses that shrink sharply and put pressure on prices as lost quantities never reach consumers. The

prevention of such losses can provide exportable surplus.

Lack of credit for farminput credit system for farmers is such that it does not cater to the needs of smallfarmers. Since there are a very large number of small horticulture farmers, a major segment is derived from

agricultural credit. This fallacy of credit system forces small farmers to under-invest in farming inputs like

pesticides and fertilizers that leads to lower yields and poor quality.

Advance sales:Due to financial constraints, the farmers are often forced to sell their produce in advance tothe middlemen, commonly known as 'bhekars'. The price that they get is much lower than the price at which

a 'bhekar' sells the produce in turn.

Low yields:Low yield is resulting from a combination of price insecurity (resulting from absence of buyback agreements), advance sales and seeds that do not meet international standards.

Specialized research: Produce is not in line with the international standards and internationally demandedvarieties. Dedicated research organizations to develop varieties that best meet the needs of the global

market are not there. Any work done by agricultural research organizations has not reached the farmers due

to weak extension services and the absence of any coordination between the entities.


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a.Absence of cold chain and limited cold storage facilities The expensive cold storage facilities are notsufficient. Growers cannot store their output and processors can process only that much quantity which can

be exported right away. The limited facilities available are not integrated with proper refrigerated transport.

Lack of cold storage facilities near production areas, air and seaports result in enormous post harvest

losses.

b. Cargo space: Pakistan International Airlines provides cargo space in its passenger planes and is notoperating dedicated freighter plane flights. Due to the highly perishable nature, mango can only be exported

by air. So exports of mangoes and other perishable products with very little shelf life cannot be increased

unless additional cargo space is provided.

c. Inland transport: Inland transportation is available without any temperature-control environment. PakistanRailways (PR) is not providing any facility at all for inland transportation of refrigerated containers. PR is

considered as a cheaper source for providing service for inland transportation of refrigerated containers, as

they have flat bed rolling stock and need to invest only in generators.

5.Problems Faced By Export Sector

Fruits and vegetable export companies involved in the business in Pakistan are mostly family run smallconcerns. The common problems of export sector include:

Highly-skewed production: Due to highly skewed production resulting from seasonality and perish ability ofproduction, the exporter has very limited time to ship his products. He is forced to export whatever is

available and within the limited time span. The exporters cannot adopt better marketing practices unless cold

storage infrastructure is available to enhance the shelf life and varieties are developed which are suited for

exports.

Processing and packing: Internationally accepted standards of processing and packing are required to beestablished. Processing of fresh fruits is limited to citrus fruit (keno) and some facilities have recently startedin the case of apple. All the remaining fresh fruits and vegetables being exported are either unprocessed or

have undergone sub-standard processing and packaging.

Weak marketing: No institutional support is available for marketing on an international level. The individualexporters are not large enough to run international marketing campaigns to promote a brand name.

Moreover, due to the absence of basic infrastructure, large orders cannot be entertained.

Working capital: Available export refinance is limited because of weaknesses in documentation. Manyexporters are selling their produce on Documents Advance (DA) that does not qualify for refinance from

banks. Export refinance serves as the working capital much needed to ensure liquidity to buy raw materials

in sufficiently large volumes.

Ruthless competition: The competition among exporters is indiscriminate and ruthless. They oftencompromise on quality and price in order to grab market share from other exporters of Pakistan operating in

the same limited markets available.

Standardization: There are no laid down procedures for standardization and quality specifications. Inabsence of brand names, the importer is not sure of the quality he will be getting that prevents the better

quality to fetch a higher price in the international market.


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6.What Can Be Done For the Improvement?

The following recommendations are suggested to improve exports and reduce wastage:

Export financing is almost not available as banks often hesitate to finance this trade beingperishable in nature. It is recommended that finance facilities may be provided to small farmers

who are interested in exports.

Owing to bulkiness and short shelf life of the products, freight is a major component of the C&Fcost. Freight from Pakistan is more as compared with our competitors in the region like India.

Absence of cool chain forces exporters to dump fresh fruits in export markets that results in lowprices and huge trade debts due to unfavorable terms of trade.

The leasing facility may be provided to exporters who will establish cold storage houses nearclusters of production. Refrigerated vehicles on lease terms are also recommended to strengthen

the transport network from the clusters to the airport / seaport. Non-availability of cargo flight/space as per demands in the export markets is also one of the

major problems. PIA is the only available carrier; there should be more capacity in cargo to export

perishable products within minimum time.

It is also proposed to increase cold-storage capacity at Airports to preserve freshness ofproducts.

7.STRATEGIES FOR DEVELOPING FRESH PRODUCE EXPORTS

I f we real ly want to in crease the export of fresh fru its, the fol lowing pro blems and th eirremedial measures are suggested.

I) Produce quality needs to be improved at the producer level by:

- Improvement in varieties and plants.- Improvement in irrigation techniques.- Improvement in farmer product knowledge.- Improvement in government advice systems.- Controls on the usage of fertilizers and sprays.

ii) Product presentation needs to be improved by:

- Better care at harvesting.

- Grading facilities.- Washing and waxing facilities.- Cooling (field heat pulls down, transportation storage).- Packing on or near production site.- Better packing materials and boxes- Better label and box printing.- Palletizing and netting for stability.- Educating staff in produce handling techniques.

iii) Transport improvements are required in terms of:


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- Internal systems (road, rail) including reefer trucks.- Better utilization of available air freight space- Better airport storage and handling.- Increase in exports by reefer sea freight.

iv) Exporters must accept:

- Investment in packing and cooling facilities as well as grading and labor training.- Procurement direct at production source and not through wholesale markets.- Contractual supply arrangements in order to provide incentives for improved production.- Need to cooperate with each other and with the Government.- Need to develop internal quality control systems.

8.E.P.B's Promotional Efforts

The objective of the present government is to revive the economy to reduce inflation and

provide job opportunities through the development and expansion of industrial mining andthe agricultural sector. All these measures have to be taken keeping in view thetechnological advances and to meet the requirements of the world market for our products.

The present trade policy has been formulated with the overall framework of the agenda ofthe Chief Executive of Pakistan to achieve economic development.

The government wanted to strengthen the export base and to move towards higher valueadded exports. For this the government has given lot of incentives to the agriculturesector, due to which there is a 4.3 % increase in the agricultural production, especially infruits and vegetables.


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9.References:

http://www.khanapakana.com/article/473b2442-961b-4c75-9ea2-1c2cc343a7c4/fruits-markethttp://www.maverickpakistanis.com/2013/02/tears-of-joy-pakistani-onion-exports-reach-170000-tons/http://www.sedf.gos.pk/pdf/sectors/red%20chillies.pdf

http://pfva.net/products.htmlhttp://www.pakissan.com/english/allabout/horticulture/vegetables/garlic.shtmlhttp://www.fruitnet.com/asiafruit/article/160114/russia-lifts-pakistani-kinnow-banhttp://thefinancialdaily.com/articles/ViewArticleDetail.aspx?ArticleID=5311http://www.nation.com.pk/business/28-Aug-2013/pakistan-to-capture-180b-world-horticulture-markethttp://www.dawn.com/news/1107098

http://www.pakissan.com/english/allabout/orchards/guava.shtmlhttp://www.pakissan.com/english/news/newsDetail.php?newsid=25138http://thefinancialdaily.com/NewsDetail/158937.aspx
http://www.khanapakana.com/article/473b2442-961b-4c75-9ea2-1c2cc343a7c4/fruits-markethttp://www.maverickpakistanis.com/2013/02/tears-of-joy-pakistani-onion-exports-reach-170000-tons/http://www.sedf.gos.pk/pdf/sectors/red%20chillies.pdfhttp://pfva.net/products.htmlhttp://www.pakissan.com/english/allabout/horticulture/vegetables/garlic.shtmlhttp://www.fruitnet.com/asiafruit/article/160114/russia-lifts-pakistani-kinnow-banhttp://thefinancialdaily.com/articles/ViewArticleDetail.aspx?ArticleID=5311http://www.nation.com.pk/business/28-Aug-2013/pakistan-to-capture-180b-world-horticulture-markethttp://www.dawn.com/news/1107098http://www.pakissan.com/english/allabout/orchards/guava.shtmlhttp://www.pakissan.com/english/news/newsDetail.php?newsid=25138http://thefinancialdaily.com/NewsDetail/158937.aspxhttp://thefinancialdaily.com/NewsDetail/158937.aspxhttp://www.pakissan.com/english/news/newsDetail.php?newsid=25138http://www.pakissan.com/english/allabout/orchards/guava.shtmlhttp://www.dawn.com/news/1107098http://www.nation.com.pk/business/28-Aug-2013/pakistan-to-capture-180b-world-horticulture-markethttp://thefinancialdaily.com/articles/ViewArticleDetail.aspx?ArticleID=5311http://www.fruitnet.com/asiafruit/article/160114/russia-lifts-pakistani-kinnow-banhttp://www.pakissan.com/english/allabout/horticulture/vegetables/garlic.shtmlhttp://pfva.net/products.htmlhttp://www.sedf.gos.pk/pdf/sectors/red%20chillies.pdfhttp://www.maverickpakistanis.com/2013/02/tears-of-joy-pakistani-onion-exports-reach-170000-tons/http://www.khanapakana.com/article/473b2442-961b-4c75-9ea2-1c2cc343a7c4/fruits-market

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