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| Agriculture Value Addition. Courtesy: Dr. Krishna Prasad Pant |
Agriculture Value Addition:
As of 2014, the agriculture value addition in Pakistan is estimated at $1,050 per worker, significantly higher than $700 per worker in India and $600 per person in Bangladesh., according to the World Bank data as reported by Dr. Krishna Pradad Pant in Agriculture Investment in his paper titled "South Asia:trends, opportunities and challenges".
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| Agriculture Value Addition. Courtesy: Dr. Krishna Prasad Pant |
"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."
Tractor Ownership:
Agriculture mechanization is measured in terms of tractor ownership in horsepower per hectare of cultivated land. It has grown in Pakistan from 1.02 hp per hectare in 1992 to 1.5 hp/ha in 2015, according to a paper titled "In Pakistan, Agriculture Mechanization Status" by Muhammad Aamir Iqbal. It is still significantly lower than India's 2.50, China's 3.88 and Japan's 7.0.
Agriculture mechanization is measured in terms of tractor ownership in horsepower per hectare of cultivated land. It has grown in Pakistan from 1.02 hp per hectare in 1992 to 1.5 hp/ha in 2015, according to a paper titled "In Pakistan, Agriculture Mechanization Status" by Muhammad Aamir Iqbal. It is still significantly lower than India's 2.50, China's 3.88 and Japan's 7.0.
Crop Per Drop:
Data on irrigation efficiency in Pakistan highlights significant opportunities for saving water.
In an average rainfall year, the water productivity for wheat in Pakistan (0.76 kg/m3) is 24% less than the global average (~1.0 kg/m3), according to Water Watch . During the drought of 2001- 02, water productivities were at the same level as the global average. Hence, drought results in a more efficient utilization of water resources by wheat crops grown in the rabi (the dry winter season).
Water Watch found that rice yield in Pakistani Punjab is on-average 24% higher than in Sindh. The water productivity of rice (0.45 kg/m3) is 55% below the average value for rice in Asia (~1.0 kg.m3). Contrary to wheat, the water productivity of rice decreased during the 2001 drought, because rice is sensitive to water stress and to salinity that is intensified through increased groundwater withdrawals.
Pakistan lags India in water productivity. Crop yields show distinct North-South and East-West variations: wheat yields in the Indian Punjab average 29% higher than in the Pakistani Punjab to the west, and wheat yields in the Pakistani Punjab are 33% higher than in the Pakistani Sindh to the south. These spatial patterns of wheat yield are similar for 1984-85 and 2001- 02. Because crop evapotranspiration in the Pakistani Punjab and Indian Punjab are similar, the difference in crop yields between these two regions is also responsible for the difference in water productivity values. This important conclusion implies that increased water productivity can only be achieved by increased crop yields. Experiments of the Pakistan Agricultural Research Council across the country (n=41) have indicated that the overall yield of wheat can be increased by 54%, provided that inputs are optimal. Improved management of water quality (groundwater and canal water) and evacuation of drainage water are important components for improving agricultural production. Seed quality, fertilizers, and pesticide control should also be improved.
Summary:
While Pakistan has lagged in South Asia region in manufacturing value addition, the country enjoys a significant lead in agriculture value addition over Bangladesh and India. Livestock revolution and increasing farm mechanization have enabled Pakistan to significantly raise agriculture productivity and rural incomes since 1980s. There is rising tractor ownership and growing 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. Pakistan still gets less crop per drop than India which means there is significant opportunity for water saving.
Haq's Musings
South Asia Investor Review
Most Indians and Pakistanis Employed in Agriculture and Textiles
Pakistan Among Top Meat and Dairy Consuming Nations
Upwardly Mobile Pakistan
Pakistan Water Crisis: Myths and Facts
FMCG Boom in Pakistan
Agricultural Growth in India, Pakistan and Bangladesh
Pakistan's Rural Economic Survey
Pakistan Manufacturing Sector Lags South Asia Region
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
Water Watch found that rice yield in Pakistani Punjab is on-average 24% higher than in Sindh. The water productivity of rice (0.45 kg/m3) is 55% below the average value for rice in Asia (~1.0 kg.m3). Contrary to wheat, the water productivity of rice decreased during the 2001 drought, because rice is sensitive to water stress and to salinity that is intensified through increased groundwater withdrawals.
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| Crop Yield Comparison. Source: Kleffman Group |
Pakistan lags India in water productivity. Crop yields show distinct North-South and East-West variations: wheat yields in the Indian Punjab average 29% higher than in the Pakistani Punjab to the west, and wheat yields in the Pakistani Punjab are 33% higher than in the Pakistani Sindh to the south. These spatial patterns of wheat yield are similar for 1984-85 and 2001- 02. Because crop evapotranspiration in the Pakistani Punjab and Indian Punjab are similar, the difference in crop yields between these two regions is also responsible for the difference in water productivity values. This important conclusion implies that increased water productivity can only be achieved by increased crop yields. Experiments of the Pakistan Agricultural Research Council across the country (n=41) have indicated that the overall yield of wheat can be increased by 54%, provided that inputs are optimal. Improved management of water quality (groundwater and canal water) and evacuation of drainage water are important components for improving agricultural production. Seed quality, fertilizers, and pesticide control should also be improved.
Summary:
While Pakistan has lagged in South Asia region in manufacturing value addition, the country enjoys a significant lead in agriculture value addition over Bangladesh and India. Livestock revolution and increasing farm mechanization have enabled Pakistan to significantly raise agriculture productivity and rural incomes since 1980s. There is rising tractor ownership and growing 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. Pakistan still gets less crop per drop than India which means there is significant opportunity for water saving.
Haq's Musings
South Asia Investor Review
Most Indians and Pakistanis Employed in Agriculture and Textiles
Pakistan Among Top Meat and Dairy Consuming Nations
Upwardly Mobile Pakistan
Pakistan Water Crisis: Myths and Facts
FMCG Boom in Pakistan
Agricultural Growth in India, Pakistan and Bangladesh
Pakistan's Rural Economic Survey
Pakistan Manufacturing Sector Lags South Asia Region
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
14 comments:
https://www.theglobaleconomy.com/Pakistan/value_added_agriculture_dollars/
https://www.theglobaleconomy.com/India/value_added_agriculture_dollars/
This contradicts your claim.
Anon: "This contradicts your claim."
No, it doesn't. Take a look at agriculture productivity charts
India: Agriculture value added per worker, constant USD: For that indicator, The World Bank provides data for India from 1980 to 2018. The average value for India during that period was 877.56 U.S. dollars with a minumum of 645.29 U.S. dollars in 1980 and a maximum of 1202.45 U.S. dollars in 2016. See the global rankings for that indicator or use the country comparator to compare trends over time.
https://www.theglobaleconomy.com/India/Agriculture_productivity/
Pakistan: Agriculture value added per worker, constant USD: For that indicator, The World Bank provides data for Pakistan from 1980 to 2018. The average value for Pakistan during that period was 1501.55 U.S. dollars with a minumum of 1011.2 U.S. dollars in 1981 and a maximum of 1757.26 U.S. dollars in 2015. See the global rankings for that indicator or use the country comparator to compare trends over time.
https://www.theglobaleconomy.com/Pakistan/Agriculture_productivity/
Pakistan among top three dairy producers
Amin Ahmed Updated June 01, 2017
https://www.dawn.com/news/1336575
ISLAMABAD: The Food and Agriculture Organisation (FAO) of the United Nations says Pakistan is among the three countries in Asia and Pacific region which are the world’s top dairy producing countries.
The total value of Asian dairy production exceeded $110 billion in 2013, and figured in the three top commodities in the region in terms of gross value of production. While the dairy production in Pakistan, India and China largely meet domestic consumption, Australia and New Zealand produce a surplus, FAO says on the occasion of World Milk Day being celebrated on June 1 (Thursday).
According to latest figures published in Pakistan Economic Survey 2016-17, milk production in the country is on the increase and during the current fiscal year the gross production of milk was estimated to be 56,080,000 tonnes.
FAO warned that while dairy has big potential, the sector needs to be more sustainable and competitive in Asia and Pacific region. This means helping smallholder farmers gain greater access to markets and services and develop successful dairy business models to increase domestic production.
The aim is to create a sector, which is socially responsible and produces safe and healthy food making more efficient use of the natural resources and reduces the effects on the environment. Only by doing so, will the sector become more sustainable for the benefit of future generations. FAO remains committed to working with all stakeholders to achieve a dairy sector that contributes to health and prosperity of the world.
An Asia Pacific Regional Audit done by the International Osteoporosis Foundation has concluded that the average dietary calcium intake in Asia is well below the FAO-WHO recommendation of 1,000 to 1,300 milligrams per day and most Asian countries have seen a two-to-three fold increase in the incidence of hip fractures during the past 30 years.
In order to facilitate dairy farmers, duty free import of calf milk replacer and cattle feed premix was allowed. During the current fiscal year, 310.2 metric tonnes of calf milk replacer and 298.9 metric tons of cattle feed premix was imported.
Last December, the Royal Friesland Company acquired 51 per cent of Engro Foods Pakistan, which was one of the largest private sector foreign direct investments in Pakistan’s dairy sector, amounting to $450 million.
Under the new deal and 2020 strategy arrangements, Engro Foods will aim for higher milk quality, variety of milk packages and products and farmers’ capacity building leading to a reduction in poverty.
In addition, regulatory duties to the tune of 25pc have been imposed on the import of skimmed milk powder and whey powder. This is to attract further investments in the dairy sector along with protecting small dairy farmers.
#Pakistani giant #Engro to bet big on rising #middleclass in #Pakistan. Engro weighing acquisitions and starting new businesses in #agriculture, #healthcare, #realestate , #communications and other #consumer-linked sectors to profit from rising #incomes. https://www.thenews.com.pk/latest/368531-in-shift-pakistani-giant-engro-to-bet-big-on-rising-middle-class
Pakistan’s chemicals-to-energy conglomerate Engro Corp has seen its fortunes rise on the back of massive Chinese investment, but plans to shape its future growth around the country’s vast population and expanding middle class, its chief executive said.
Engro Corp, best known for its fertilizer and petrochemicals factories, as well as engineering projects, is Pakistan’s largest listed conglomerate, and after recovering from a brush with bankruptcy in the early part of this decade is now sitting on a $500 million cash pile.
It has been a major beneficiary from Beijing’s Belt and Road Initiative splurge, working with Chinese firms on coal and power projects worth billions of dollars.
Engro’s rising fortunes since 2012, when its factories were crippled by gas shortages, mirror the improvements in Pakistan, a nuclear-armed nation where economic growth has accelerated due to vast Chinese investment and a sharp drop in militancy and power outages.
In the near term, Engro’s outlook is linked to a mile-long $1.5 billion coal mine in the Thar desert near the border with India, part of Beijing’s pledge to invest about $60 billion in Pakistan.
But with Pakistan’s new government hinting it may review Belt and Road contracts due to concerns they were too expensive, some analysts see risks on the horizon for Engro and say planned power plants around the mine may struggle to obtain financing.
Ghias Khan, Engro’s chief executive, told Reuters this week he was “pretty confident” the government would not re-open deals with sovereign guarantees.
“If they do, that will have a very negative impact,” Khan said.
This year Pakistan’s economy has also been shaken by a shortage of dollars, and speculation Islamabad may turn to the International Monetary Fund to ease current account pressures.
CONSUMER GROWTH
Undeterred by Chinese investment jitters and the recently wobbly economy, Khan said Engro was weighing acquisitions and starting new businesses in agriculture, healthcare, real estate, communications and other consumer-linked sectors to profit from rising incomes in the Muslim majority country of 208 million people, 60 percent of whom are aged under 30.
“We’ve come to a realization what has gotten Engro where it is today is not good enough for our next phase of growth,” Khan said in an interview at Engro’s ocean-front headquarters in Karachi, an Arabian Sea metropolis.
“What we are proud of is our ability to execute large-scale projects and put up large industrial complexes. But we are mindful we have to get into businesses which are more related to the population growth, and take us closer to the consumers.”
In Karachi, mushrooming shopping malls and ever-rising number of cars on the road point to a multi-year consumer boom as people’s disposable incomes have doubled this decade, analysts say.
Khan compared Pakistan’s current economic level, population growth and per capita income, which stands at about $1,600, to where China, South Korea and India were at earlier points in their development.
“If you look at sectors that did well when they were where Pakistan is today ... like real estate, automobiles, healthcare, logistics - everything is somehow related or linked to population growth or the middle class,” Khan said.
#Tractors production in #Pakistan up 33.20%. During the period from July-June, 2017-18 about 71,894 tractors were manufactured as compared to the 53,975 tractors of same period of last year. #agriculture https://pakobserver.net/tractors-production-up-33-20pc/ via @pakobserver
The domestic production of tractors during fiscal year 2017-18 witnessed growth of 33.20 percent as compared the production of the corresponding period of last year.
During the period from July-June, 2017-18 about 71,894 tractors were manufactured as compared to the 53,975 tractors of same period of last year.
On month on month basis, the local production of tractors also grew by 15.21 percent as it was recorded at 3,926 units in June 2017 to 4,523 units in June 2018. according the Quantum Index Number of Large Scale Manufacturing.
It may be recalled that the overall Large Scale Manufacturing Industries (LSMI) of the country witnessed growth of 5.38 percent during the year 2017-18 compared to last year.The LSMI Quantum Index Numbers (QIM) was recorded at 147.07 points during July-June (2017-18) against 139.55 points during July-June (2016-17), showing growth of over 5.38 percent.
Meanwhile the production of trucks witnessed growth of 5.76 percent by going up from the output of 608 units in June 2017 to 643 units in June 2018.
The production of trucks also increased from 7,712 units last year to 9,187 units, showing growth of 19.13 percent while the production of tractors increased by 33.20 percent, from 53,975units to 71,894 units.
On year-on-year basis, the production of jeeps and cars increased by 40.90 percent during the month of June 2018 against the output of June 2017. During the period under review, Pakistan manufactured 16,234 jeeps and cars during June 2018 against the production of 11,522 units during June 2017.
During last financial year, the production of light commercial vehicles (LCVs) witnessed an increase of 19.74 percent in production during the period under review by growing from 24,265 units last year to 29,055 LCVs during 2017-18.
USAID to expand agri-tech-based private sector investment in Pakistan
October 16, 2018
https://pakobserver.net/usaid-to-expand-agri-tech-based-private-sector-investment-in-pakistan/
Dedicated to private sector agricultural technology innovation as a key to unlocking the full potential of Pakistan’s horticulture, dairy and livestock sectors, USAID Pakistan through the Pakistan Agricultural Technology Transfer Activity signed Memoranda of Understanding (MoUs) with 10 leading private sector agri-tech companies to help scale up investments in affordable new agricultural technologies. The project has signed MOUs with Ali Akbar Group Enterprises, CattleKit, Farm Dynamics, Haji Sons, Farm Solutions, Dairy Solutions, Solve Agri Pak, Matra Asia, Ravi Agriculture, and Noorani Industries.
The PATTA project partnership seeks to enable agri-tech knowledge transfer and eliminate the barriers to technology adoption, increasing awareness and ultimately enhancing farmers’ production, and profits. The results will improve Pakistan’s overall agriculture-fuelled economic infrastructure and contribute to food security.
PATTA’s partners demonstrate willingness to invest in technology expansion to convert agricultural innovation into commercial success with a pro-farmer approach. Chief of Party PATTA Dr. Daney Jackson stated, “These MOUs formalize PATTA’s partnership with leading private sector companies to support agricultural technology adoption across Pakistan.”
This local partnership-driven technical assistance is spearheading private sector development in the agricultural technology sector. USAIDPATTA will support at least 30 private sector companies to become more competitive and profitable by upgrading equipment, commercialising and marketing500 technologies and modernizing management practices. Technology, innovation and agriculture can increase agrarian production, profitability and expand the work forceby 3400 jobs. Private sector investment is expected to increase by USD 4.8 million and sector sales by USD 17.68 million in 4 years through PATTA’s initiatives.
In a recent MOU signing ceremony, CEO Farm Solutions Bilal Chaudhry stated that partnership with USAID will enable the private sector to accomplish gains that cannot be realized alone.
CEO Matra Asia Anwar-ul-Haq stated, “The partnership between Matra Asia and USAID will help increase farmer profitability by reducing the input costs and increasing yields.”
PATTA’s 10 private sector partners are also striving to narrow the gap between men and women by providing opportunities to women farmers and entrepreneurs. One of these partners – Haji Sons – has ensured that their technology demonstrations also reach female farmers, enabling them to adopt leadership positions in agricultural technology.
China ready to help boost Pakistan’s farming sector
https://www.thenews.com.pk/print/381300-china-ready-to-help-boost-pakistan-s-farming-sector
Pakistan and China have agreed to broaden agro-cooperation by adopting a comprehensive approach to fast-track communication and implementation to tap the immense potential of the most important sector, a statement said on Monday.
“Agricultural cooperation will set new and important direction that should focus on areas as well as the level of cooperation and finalisation of specific plans,” MA Aiguo, Vice Minister for Agriculture and Rural Affairs, China, said in a meeting with Makhdum Khusro Bakhtyar, Minister for Planning, Development & Reform (PD&R).
Aiguo said China was ready to share its expertise and successful agriculture models with Pakistan. Bakhtyar said Pakistan’s agriculture sector employed 45 percent of manpower and contributed about 24 percent in GDP. “It provides livelihood to 64 percent of the country’s rural population and shares 20 percent in total exports,” the minister added. The minister identified that Pak-China agricultural cooperation had to focus on the vertical increase in productivity of existing crops, transfer of knowledge and technologies, seed and plant protection as well disease control, value addition and marketing of agri products including dairy, livestock, and fisheries. “The mutual cooperation should cover the whole basket of agri-sectors,” he added.
Bakhtyar stressed there was a massive potential of developing Pakistan’s agriculture sector and achieving a win-win situation. He pointed out that joint ventures, value-addition, cold chain management for fruits/vegetables, marketing, and branding would help Pakistan overcome the past weaknesses and increase its exports to China and other nations of the world.
Cargill plans $200M expansion in Pakistan, with focus on poultry and dairy
Cargill will also start grain trading and add other operations in Pakistan.
http://www.startribune.com/cargill-plans-200m-expansion-in-pakistan-with-focus-on-poultry-and-dairy/504558562/
Cargill Inc. will invest $200 million in Pakistan over the next several years to build out the company’s supply chain there and harness growing demand for chicken throughout the region.
Cargill Inc. will invest $200 million in Pakistan over the next several years to build out the company’s supply chain there and harness growing demand for chicken throughout the region.
This marks a substantial expansion for the Minnetonka-based agribusiness — the world’s largest — which has run a small operation in Pakistan since the early 1980s. It’s also the company’s latest in a rapid series of investments throughout Asia, and specifically in the south and southeast parts of the continent.
Cargill currently has cotton, sugar, metals and animal feed business interests, as well as oil-crushing facilities, in Pakistan, but will scale up its legacy grain-trading business there over the next three to five years. Cargill did not provide additional details on what those operations will entail, but the company said it will increase its employee base beyond the modest 50 people currently working in the country.
“Finalizing one of our first investments in the agricultural supply chain in Pakistan is our top priority,” Imran Nasrullah, head of Cargill Pakistan, said in a statement. “We have received a very positive response from the Pakistani government and we value their support as we expand our presence here.”
Cargill’s investment will expand its dairy and meat business in Pakistan and deepen its focus on the Asia-Pacific region. Marcel Smits, the company’s former chief financial officer, was given a newly created role — head of Asia Pacific — in October amid a major executive reshuffle.
The company said Smits’ role was to “lead Cargill’s accelerated growth plan in the Asia Pacific region, a high-potential market for the company and its customers.” One month later, the company announced several multimillion-dollar investments in Thailand, Malaysia and the Philippines.
South and Southeast Asia hold some of the greatest growth potential in chicken, according to a recent Rabobank analysis.
Cargill is also growing its chicken business in another growth region: Central and South America. Cargill acquired Campollo in late 2018, less than a year after it acquired Pollos Bucanero, both Colombia-based chicken companies.
The office of Pakistan Prime Minister Imran Khan applauded Cargill’s investment. The news comes as Pakistan attempts to attract foreign investment to stabilize and grow its economy.
#Pakistan launches Rs. 309.7 billion #agriculture program. Focus on growing #exports and substituting #import. Pakistan’s import bill for major #agricultural commodities reached $4 billion last year https://tribune.com.pk/story/2004597/2-govt-unveils-rs309b-programme-uplift-agriculture-sector/
The government on Tuesday announced the launch of Prime Minister’s National Agriculture Emergency Programme worth Rs309.7 billion to uplift the agricultural economy.
As many as 16 projects in the agriculture sector would be launched at a cost of Rs309.7 billion under the prime minister’s agriculture programme to boost yields of major crops.
The prime minister’s programme will drastically increase agricultural spending over the next five years, by 360%. The share of federal government spending will be Rs85 billion, share of provincial governments will be Rs175 billion and the share of farmers will be Rs50 billion.
Under this programme, 16 projects will be initiated in the agriculture sector in five areas. Four of these projects will be launched at a cost of Rs44.8 billion, which would have a provincial share of Rs7.4 billion, in a bid to boost yields of major crops and encourage the production of oilseeds.
Three projects, costing Rs220 billion, will be focused on conserving and increasing water productivity. Another three projects, which will have a cost of Rs13.9 billion, will harness the untapped potential of fisheries.
The government plans to invest Rs44.8 billion with a federal share of Rs7.4 billion in four livestock projects for small and medium-scale farmers. Two projects worth Rs23.6 billion will be started without federal share to transform Punjab’s agriculture produce markets.
However, Sindh is shy of participating in the Prime Minister’s National Agriculture Emergency Programme as it has not responded despite repeated calls by the federal government.
At a joint press conference with Pakistan Tehreek-e-Insaf (PTI) leader Jehangir Tareen, Federal Minister for National Food Security and Research Mehboob Sultan said Prime Minister Imran Khan had taken initiatives to bring improvement in the agriculture sector.
He said more than 100 meetings were held in major cities across the country to formulate a strategy in consultation with the provinces to implement the emergency programme.
The minister lamented that previous governments had ignored the sector and allocation of funds for agriculture.
He added that Pakistan was importing cotton via Afghanistan and the government was negotiating with textile millers regarding duties on cotton import.
Speaking on the occasion, Tareen said the agriculture sector was Pakistan’s lifeline, however, it had been ignored by previous governments in the last 10 years.
He said post-18th Amendment in 2011, the total agriculture development spending started decreasing drastically by 60%. Provinces did not play their due role in taking initiatives meant for increasing crop yields, he said.
Pakistan’s import bill for major agricultural commodities peaked to around $4 billion last year, he said, adding that they would spend Rs309 billion under the emergency programme to enhance yields.
He invited Sindh to participate in the programme and set aside its political differences for the betterment of the sector.
“If Sindh participates, it will get an additional boost of Rs15 to Rs18 billion in agriculture development spending over five years from the federal government,” said Tareen.
#Pakistan, #US for enhanced #agriculture cooperation. #Agriculture mechanization, to augment the yield of #cotton, development of #oil seed and decrease the #import bill, #American market access to increase #mango and other #exports to #US. #trade #tech https://www.dawn.com/news/1492976
Ahead of Prime Minister Imran Khan’s visit to the United States of America, the two sides on Monday discussed measures for enhancing cooperation in the agriculture sector.
In a meeting, Minister for National Food Security and Research, Muhammad Mehboob Sultan and US Ambassador Paul Jones agreed that the forthcoming visit would be very important to highlight the preferred areas of cooperation especially in the field of agriculture.
Mr Sultan highlighted that the scope of Pakistani mangoes to the US market could be enhanced since the product meets all the international standards and is exported to almost 48 countries after vapour treatment.
This will give a great boost to mango exports and US could also work in collaboration for value-addition of mangoes in Pakistan which will be mutually beneficial. Mr Sultan further said that dates from Pakistan may also be granted market access in US. In view of the visit of the prime minister, dates and other products may also be granted market access on reciprocity.
US ambassador was of the view that Pakistan could import meat from the United States to which the federal minister explained that it could be explored after mutual consultation.
The agriculture minister said the two countries must explore venues for mutual cooperation especially when the prime minister’s agriculture emergency programme has already been launched.
He said the present government is making every effort to strengthen the agriculture sector, especially after the devolution. The government has identified few areas to be developed on priority and important of those areas are agriculture mechanisation, to augment the yield of cotton, development of oil seed and decrease the import bill.
He said the government as well as the agriculture ministry is open for cooperation from all provinces and friendly countries for mutually beneficial work in the agriculture sector.
Ambassador Jones said the United States is well aware that Pakistan is an important agricultural country, and exchange of technologies in the field of agriculture including cooperation in value-addition, and public-private partnership would be welcomed by both the sides.
FY2020-21: Tractors assembling witnesses 59% growth in 11 months
https://dailytimes.com.pk/791852/fy2020-21-tractors-assembling-witnesses-59-growth-in-11-months/
Owing to incentives offered by the government under its Agriculture Fiscal Package to mitigate the harmful impacts of COVID-19 pandemic and mechanization of agriculture sector, local tractor production witnessed about 59.03 percent growth in 11 months of current fiscal year as compared the production of corresponding period of last year.
During the period from July-May, 2020-21, 45,432 tractors were locally assembled as compared the assembling of 28,568 tractors of same period of last year, according the provisional quantum indices of Large Scale Manufacturing Industries (LSMI) for May 2021. The provisional quantum indices of Large Scale Manufacturing Industries (LSMI) for May 2021 with base year 2005-06 have been developed on the basis of latest data supplied by the source agencies. On month on month basis, the local production of tractors registered about 15,31 percent increase as about 4,105 tractors were locally manufactured in May, 2021 as compared the production of 3,560 tractors of same month of last year, according the data.
It is worth mentioning here that the government had initiated Rs1.5 billion sales tax subsidy on locally-manufactured tractors under agriculture package announced to revive the economically important sector and approved withdrawal of 5 percent sales tax on locally-manufactured tractors for one year. The government in May, 2020 announced a fiscal package of over Rs1.2 trillion in the wake of COVID-19 pandemic. Economic Coordination Committee of the cabinet division approved the package proposals. Out of the package, Rs50 billion was earmarked for relief to agriculture sector that contributes 18.9 percent to GDP and absorbs 42.3 percent of labor force. The package also includes Rs6.861 billion for provision of financial relief in terms of markup subsidy on bank’s loans to farmers, besides announcing sales tax relief measures to promote mechanization in agriculture sector to enhance per-acre crop yield. Pakistan produces tractors with a variety of working capacities in technical collaboration with foreign manufacturers, including New Holland Tractors and Massey Ferguson.
CPEC Agri corridor sows seeds of economic growth
https://pakobserver.net/cpec-agri-corridor-sows-seeds-of-economic-growth/
As 2022 draws close, the agriculture sector has gained manifold tractions under China-Pakistan agriculture cooperation promising the phenomenal agri growth in the length and breadth of Pakistan, according to a report published by Gwadar Pro on Saturday.
Given the comprehensive spectrum of cooperation under “CPEC Green Corridor” throughout the year in 2022, the agriculture sector has recorded a remarkable growth of 4.4% and surpassed the target of 3.5% as well as last year’s growth of 3.48% during FY2022.
According to Economic Survey, the growth in the agriculture sector recorded 4.4% and surpassed the target of 3.5%.
This remarkable growth is mainly underpinned by China-led assistance to Pakistan of many facets relating transfer of hands-on experience in the fields of intercropping, high-yield seeds, pest control, hybrid cultivation, corporate farming, innovate irrigation technique, agri machinery training, agri research & development, protocol for Pak agri exports to China, digital farming and agri labor skills.
Since Sino-Pak agriculture has continued to deepen in 2022, Pakistan’s agricultural products exported to China from January to August 2022 reached $730 million with a year-on-year increase of 28.59%.
Pakistan’s agricultural exports to China are expected to exceed a record high of $1 billion next year.
On the back of 2022 agri sector’s milestone achievement, the focus of next year under CPEC Green Corridor will be continuing on improving land cultivation area, water management, better access to markets for inputs (seeds, fertilizers, farm mechanization, credit, water) and outputs, improved infrastructure including storage and cooling facilities, reduction in post-harvest losses, greater investment in research, development and extension, improved quality and fulfillment of quarantine requirements for international markets and competitiveness, greater diversification, especially minor but high-value crops, farm input and effectiveness of markets.
The announcement of three new corridors under CPEC including China-Pakistan Green Corridor (CPGC), which focuses on agricultural environment and food security speaks volumes about the significance of agricultural cooperation in CPEC.
The inauguration of the Intercropping Research Center jointly established by Sichuan Agricultural University (SAU) and the Islamia University of Bahawalpur (IUB) in 2021 showed fantastic results in the 2022 season.
According to a news report a few weeks ago, China’s maize-soybean strip intercropping technology completed harvest at 65 demonstration sites in Punjab, Sindh and Khyber Pakhtunkhwa recently, and the production of maize and soybeans reached 8,490 kg and 889 kg per hectare respectively in the intercropped fields.
Compared with the production of solely cropped maize and soybeans at these 65 sites which are 8,995 kg and 1,531 kg per hectare respectively, the intercropping technology definitely creates much more economic benefits.
Good news is that the researchers are also developing the strip intercropping systems of maize-peanut, maize-pea, sugarcane-soybean, sugarcane-mustard, wheat-mustard, wheat-soybean, wheat-chickpea, potato-maize and canola-pea.
Another healthy development in the agriculture sector happened in June, 2022 when a newly developed centre at Arid Agriculture University Rawalpindi (AAUR), the CPEC-Agriculture Cooperation Centre (ACC), announced to perform policy research, assist Chinese businesses in working in the agriculture sector, and foster institutional cooperation. Pakistan is also looking forward to enhance banana production with Chinese cooperation.
CPEC Agri corridor sows seeds of economic growth
https://pakobserver.net/cpec-agri-corridor-sows-seeds-of-economic-growth/
According to Nosherwan Haider, CEO of the Sprouts Biotech Laboratories, Pakistan contributes less than 0.5% to the global banana market whereas China contributes about 4.5%.
Cotton germplasm is another significant component in Pak-China agricultural cooperation. For many years, China and Pakistan have cooperated in the field of gathering and identifying cotton germplasm resources.
In order to determine which cotton germplasms are resistant to heat, drought, diseases, and insect pests in various locations and environments, Institute of Cotton Research (ICR) of the Chinese Academy of Agricultural Sciences (CAAS), collaborated with Cotton Research Institute (CRI), Multan, University of Agriculture Faisalabad (UAF), and some other universities and scientific research institutions.
During July, 2022, Tianjin Modern Vocational Technology College (TMVTC), China and MNS-University of Agriculture, Multan (MNSUAM), Pakistan signed an online agreement for an agricultural machinery training program of Luban Workshop in Pakistan.
The two institutions will jointly promote the sci-tech exchanges and cooperation on agricultural machinery, germplasm resources and agricultural environment.
Earlier this year, Zhang Jishu from Sichuan Litong Food Co., Ltd. announced that his company would implement a 1,000-acre pepper cultivation demonstration garden in Multan during the 2022-2023 growing season.
In partnership with local agribusinesses and farmers in Pakistan, it intends to take over 15,000 acres of pepper orders in South Punjab, with a planned harvest of 30,000 tonnes of dried pepper. Additionally, the company intends to construct two pepper processing plants in Lahore and Multan and is in the process of locating suitable sites.
Pakistan is also working to grow the sorghum crops as, along with the three main basic foods of the globe, sorghum is a crop that has increasingly gained acceptance around the world.
During the Symposium on Sorghum Industry Development of China and Pakistan organized during 2022, there was a consensus that, sorghum is a versatile crop that can be useful in supplying food and fodder.
Hybrid farming is growing in Pakistan in a variety of sectors, as the Executive Member of the Asia and Pacific Seed Association and General Manager of Wuhan Qingfa Hesheng Seed Company, Zhu Xiaobo said that the hybrid canola variety developed by her company has been planted in Pakistan on about 10,000 hectares of land, covering around 6000 households.
In the next three to five years, they expect it to expand to over 40,000 hectares and provide more and healthier edible oil to Pakistanis. Similarly Sino-Pak cooperation in cauliflower farming through hybrid seeds is also expanding.
As Pakistan faced one of the worst flood calamities in 2022, consequently loosing drastic crop yield, Wuhan-based hybrid seed developer and supplier China also announced to donate hybrid rice seeds to mitigate flood impact on agriculture and food security.
According to the Chairman of the Pakistan Agricultural Research Council (PARC), Dr. Ghulam Muhammad Ali, to raise the average productivity and output of Pakistan’s crops and to mitigate the harm caused by the floods, experts from Pakistan and China are developing hybrid wheat types.
To facilitate the swift development of agri-sector in the country, the Punjab cabinet approved the leasing out of state land for corporate farming as part of the CPEC initiative in the first week of March 2022.
The move, according to agriculturalists, would be a revolutionary one for Pakistan’s farming industry. Corporate farming describes the direct ownership or leasing of farmland by business organizations for the purpose of producing goods for their in-house processing needs or for the open market.
The challenge of shrinking farm sizes
https://www.dawn.com/news/1730732
Many research studies have explored and proven the inverse relationship between farm size and crop yields. In Pakistan, the solution undeniably lies in consolidating agricultural holdings into somewhat larger and more efficient farms. But the real challenge is to devise and execute effective policy measures. Among the options explored, cooperative farming and corporate farming are often the most cited.
In Pakistan, the average farm size has steadily declined from 5.3 hectares in 1971 to 3.1 hectares in 2000 and then subsequently to 2.6 hectares in 2010 (Agricultural Census 2010). As a result, the agriculture sector is now dominated by smallholders. Over 90 per cent of farms are smaller than 12 acres, out of which 67pc are below even five acres (two hectares).
The majority of farms have become so small due to successive land divisions that they are no longer economically and operationally viable. Small size is a major limiting factor for increasing labour and land productivity, mechanisation of farms, optimal application of quality farm inputs, and adoption of advanced agricultural practices and technologies.
At the same time, more than 8.2 million farms pose a serious challenge for the government to provide extension services, offer credit facility to all farmers, enhance their effective access to the market and even implement government programmes for farmers, primarily due to the high transaction costs involved. All these challenges translate into higher production costs and, in turn, a lack of competitiveness. As a result, farmers demand farm subsidies, putting additional pressure on the country’s scarce financial resources.
Interestingly, in East Asian countries like South Korea and Japan, instead of shrinking, farm sizes are increasing. In fact, thriving manufacturing and service sectors have provided lucrative employment opportunities, resulting in labour migration from agriculture to non-agriculture sectors.
Many research studies have explored and proven the inverse relationship between farm size and crop yields. In Pakistan, the solution undeniably lies in consolidating agricultural holdings into somewhat larger and more efficient farms. But the real challenge is to devise and execute effective policy measures. Among the options explored, cooperative farming and corporate farming are often the most cited.
Cooperatives (associations of persons united voluntarily) have been successful in many countries in empowering farmers to pool in multiple lands together, use collective bargaining to buy agricultural inputs and sell their produce, and collectively undertake value addition to attain greater efficiencies. Their success can be gauged from the fact that cooperatives in Europe have over 40pc market share in agri-food supply chains, whereas, in the USA, around 75pc of the country’s milk is marketed by dairy cooperatives.
Due to the peculiar socio-cultural context of our rural areas, particularly in Punjab and Sindh, people do not exhibit an inclination towards working together for common needs and aspirations. Therefore, cooperatives in the agriculture sector could not reap the desired results. In Pakistan, cooperatives often do not hire professional managers. Therefore, when the majority of members lose interest in managing the organisation due to one reason or another, a small group takes control and manages it for their own gains and interests.
Another widely mentioned option is corporate farming (large-scale agriculture by large companies). The arguments in favour include companies’ greater capacity and financial muscle to introduce mechanisation and new technologies, undertake effective marketing of farm produce, develop linkages with national and international value chain players, and improve farm and area infrastructure. All these factors result in higher productivity and competitiveness.
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