Pakistan Agribusiness Investments in Dairy & Livestock

[Riaz Haq]

US venture investor Tim Draper, Swiss food giant Nestle, and American beverage titan Coca Cola are investing heavily in Pakistan's agribusiness.

Silicon Valley private equity investor Tim Draper, a well-known international venture capitalist, is quietly investing in Pakistan's agribusiness, the largest provider of food commodities in the Middle East, according to San Francisco Examiner.

The share of livestock in Pakistan's agriculture output nearly doubled from 25.3 percent in 1996 to 49.6 percent in 2006, according to FAO. As part of the continuing livestock revolution, Nestle is investing $334 million to double its dairy output in Pakistan, according to Businessweek. Reuters is reporting that the company has already installed 3,200 industrial-size milk refrigerators
at collection points across the country to start the
kind of cold storage chain essential for a modern dairy industry, and
give farmers a steady market for their milk. In another development on the infrastructure front, Express Tribune has reported that  Pakistan Horti Fresh Processing (Pvt)
Limited has invested in the world's largest hot treatment plant to process 15 tons of mangoes per hour for exports.  Hot water treatment  will also help reduce waste of fruits and vegetables by increasing shelf-life for domestic consumption.
 

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

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

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

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

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

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

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

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[Riaz Haq]

#Pakistan expects bumper harvest of #cereals #wheat, #rice in 2017 with better prices for farmers http://reliefweb.int/report/pakistan/giews-country-brief-pakistan-3... … via @reliefweb

Favourable prospects for 2017 wheat crop production

Planting of the 2017, mostly irrigated, ‘’rabi’’ (winter) wheat crop is currently underway and will continue until mid-December. Near-average irrigation water supplies in the main wheat-growing areas of Punjab and Sindh provinces are benefitting plantings and early crop development in these areas. However, below-normal rains hindered planting operations in the minor rainfed-producing ‘’barani areas’’, located in the northern parts of Punjab Province.

Current official forecasts put the 2017 wheat output at a record level of 26 million tonnes, 2 percent up from the 2016 bumper output. This forecast rests on expectations that adequate water availability in the main reservoirs will boost plantings, while the good supply of quality seeds, fertilizers and herbicides will increase average yields.

Above-average 2016 summer cereal crops estimated

Harvesting of the 2016 summer (monsoon) season maize and rice crops is almost complete. FAO estimates the 2016 paddy and maize outputs at 10.3 million tonnes and 5.2 million tonnes, respectively, slightly above the previous year’s production. This result follows generally favourable weather conditions during the cropping season, coupled with an adequate water supply for irrigation and good access to fertilizers and other basic inputs.

Rice exports to increase in 2016

FAO forecasts rice exports in 2016 at 4.4 million tonnes, representing a 7 percent increase from the 2015 level, thanks to competitively priced non-basmati supplies.

Wheat exports in the 2016/17 marketing year (May/April) are forecast to increase from the previous year’s low level to 800 000 tonnes, in line with the 2016 overall good output and large carryover stocks.

Prices of wheat and wheat flour strengthened in recent months

Prices of wheat and wheat flour, the country’s main staples, have strengthened in recent months, following seasonal patterns, but remained below their year-earlier levels owing to good availabilities following a bumper 2016 crop.

Food security conditions overall stable but concerns remain in Tharparkar District and northern Pakistan

Overall, the food supply situation is stable following two consecutive years of good harvests and large carryover stocks of the main staples. However, food security concerns remain in some areas, particularly in Tharparkar District and northern Pakistan.

In Tharparkar District (southeastern Sindh Province) and the surrounding areas of Sindh Province, a below-average drought-affected cereal production for the third consecutive year, coupled with losses of small animals, especially sheep and goats, has aggravated food insecurity and caused acute malnutrition.

Food insecurity has been exacerbated by the lingering negative impact of the 2015 floods; the provinces of Sindh, Punjab and Khyber Pakhtunkhwa were most affected. Official assessments reported the loss of lives and severe damage to housing, infrastructure and agriculture. Households in northern parts of the country have also not fully recovered from the impact of the earthquake in October 2015.

The Federally Administered Tribal Areas (FATA) and Khyber Pakhtunkhwa, located in northern Pakistan, are still affected by the return process after the large scale displacement (312 000 families or around 1.9 million people) due to insurgency in FATA. According to OCHA estimates, as of October 2016, over 1.3 million refugees remained displaced in northern Pakistan. These populations rely mainly on humanitarian assistance, including food aid, healthcare and other necessities.

[Riaz Haq]

Livestock is an important sector of
agriculture (in Pakistan). Its role is pivotal towards rural
socio economic development. Nearly 8
million families involved in livestock raising
deriving more than 35% income from
livestock production activities. It is central
to the livelihood of the rural poor in the
country. It is a source of cash income,
providing a vital and often the only
source of income for the rural and most
marginal people. It can play an important
role in poverty alleviation and foreign
exchange earnings for the country.
Livestock contributed approximately
58.6% to the agriculture value added and
11.6% to the overall GDP during 2015-
16 compared to 56.4% and 11.7%
during the corresponding period last year,
respectively. Gross value addition of livestock
at constant cost factor of 2005-06
has increased from Rs. 1247 billion
(2014-15) to Rs.1292 billion (2015-16),
showing an increase of 3.63% over the
same period last year.
Livestock of Pakistan include cattle,
buffalo, sheep, goat, camels, horses, asses
and mules and they produce milk, meat,
wool, hair, bones, fat, blood
eggs, hides and skins
among which milk and meet
are the major products.
Besides production, these
animals are also used for
draught purposes. As per
IFCN (International Farms
Comparison Network) Dairy
Report 2014, Pakistan is 3rd
largest milk producing country
in the world. Milk is produced
by buffalo, cattle, sheep, goat and
camel but being major contributor in milk
production, cattle and buffalo are considered
as major dairy animals.
More than 96% of the milk produced
in Pakistan comes from cattle and buffalo.
The rest of it is collectively produced by
sheep, goat and camel which, most of the
time, is not sold as such, rather consumed
domestically or mixed with buffalo and
cow milk. Estimated current National
livestock Population based on National
Livestock Census 2006 and Economic
Survey of Pakistan 2014-15 are given in
Table-1.

http://www.foodjournal.pk/2016/May-June-2016/PDF-May-June-2016/Dr-N... 

[Riaz Haq]

#Qatar to import #food products worth $1 billion from #Pakistan | Pakistan | http://thenews.com.pk 

https://www.thenews.com.pk/print/217222-Qatar-to-import-edibles-wor...

In the wake of strained relations between Saudi Arabia and Qatar, Doha’s high-powered trade delegation has visited Pakistan last week for exploring opportunities for importing meat including beef and mutton, chicken, rice and dairy products worth over a billion dollar.

Qatar is a rich country having potential to import over a billion dollar food items from Pakistan. “In the upcoming Special Economic Zones (SEZs) which will be established with the help of China, proposals are under consideration to establish modernised farm houses with the purpose to boost exports of live animals as well as of both beef and mutton manifold in years ahead,” said the official sources.

Earlier, Qatar used to import major chunk of food items from Saudi Arabia but after strained relationship with Gulf States now Qatar is exploring new markets to import food items and Pakistan can become potential player in this regard in weeks and months ahead.

Qatar is the 38th largest export economy in the world as in 2015, their exports stood at $79.9 billion while imports were $34.7 billion, resulting in a positive trade balance of $45.2 billion. In 2015 the GDP of Qatar was $164 billion. 

The top exports of Qatar are Petroleum Gas($44.3B), Crude Petroleum ($17.3B), Refined Petroleum ($6.47B), Ethylene Polymers($2.26B) and Nitrogenous Fertilizers ($1.22B), using the 1992 revision of the HS (Harmonized System) classification. 

Its top imports are Cars($2.87B), Planes, Helicopters, and/or Spacecraft ($2.6B), Gas Turbines ($1.09B),Aircraft Parts ($1.04B) and Jewellery ($970M).

The top import origins are China ($3.51B), France ($3.23B), the United Kingdom ($3.08B), the United States ($2.96B) and the United Arab Emirates ($2.76B).

Qatar borders Saudi Arabia by land and the United Arab Emirates, Bahrain and Iran by sea. In 2015, Qatar imported $34.7 billion worth of products making it the 58th largest importer in the world. During the last five years, the imports of Qatar have increased at rate of 8.5 percent increased from $22.8 billion in 2010 to $37.7 billion in 2015.

The recent imports are led by cars, which represents 8.27 percent of total imports of Qatar, followed by planes and then other items.

President Federation of Pakistan Chamber of Commerce & Industry (FPCCI) Zubair Tufail on Monday confirmed to this paper that Qatar’s trade delegation paid visit to Pakistan last week for exploring trade opportunities and they were interested in importing food items.

“We have helped them to establish contacts with major business houses involved in food items’ export from Pakistan and it is expected that exporters could get their potential shares in months and years ahead,” he concluded. 

[Riaz Haq]

Equipped With New Test Capabilities, Laboratory in #Pakistan Helps Improve #FoodSafety, Increase #Meat #Exports https://www.iaea.org/newscenter/news/equipped-with-new-capabilities... …
The Pakistani Veterinary Residue Laboratory in Faisalabad, a food laboratory supported by the IAEA and the Food and Agriculture Organization of the United Nations (FAO), has acquired the capability to undertake state-of-the-art tests to certify the safety of food. It has recently earned International Organization for Standardization (ISO) accreditation, and officials expect this to contribute to increased meat exports thanks to food safety certificates the lab will be able to issue for the first time. 

“Pakistan produces some of the world’s finest tasting foods, especially meat and other animal products,” said Ahmad Waqar, who is in charge of this cooperation at the Permanent Mission of Pakistan to the IAEA. “In the past, Pakistan has had exports rejected because they did not comply with the food safety standards of importing countries. This resulted in safety concerns, significant economic losses and food waste.”

The livestock sector contributes 12 percent of Pakistan’s GDP. In 2010, the European Union rejected 134 food export consignments due to the presence of contaminants. This raised concerns in Pakistan about the need to improve its food safety control system.

Veterinary drug misuse comes with consequences

As with many farmers around the world, it is common practice to administer medicines to animals to keep them healthy, rather than to treat disease when it occurs. “From a food safety point of view, problems especially arise when farmers do not have correct advice on what drug to buy and use, or do not follow instructions on how, when and how much to administer or how long to wait until the drugs have cleared out of the animal’s body,” said James Jacob Sasanya, food safety specialist at the Joint FAO/IAEA Division of Nuclear Techniques in Food and Agriculture. If drugs remain in the animals, they, or their residues, may end up in food products and could pose a health hazard to consumers.

For meat and other food products to be accepted as safe for consumption, they must be tested, among others, for veterinary drug residues to ensure these residues do not exceed safety or reference limits. “Pakistan did not have the capacity to conduct these tests until the new laboratory became operational,” Waqar said.

The laboratory was established by Pakistan’s Nuclear Institute for Agriculture and Biology of the Pakistan Atomic Energy Commission. The IAEA’s technical cooperation programme helped by providing the laboratory with state-of-the-art equipment, and supported training opportunities at various European reference laboratories and expert missions to assist with implementing measurement protocols and methods as well as regular technical advice. Through this support, the laboratory has increased its testing capability and received the accreditation.

The certificate is valid for three years for the analysis of seven types of antibiotics and hormone analyses in food products. As a result, Pakistan now has the capacity to process over a thousand food samples each year.

Sheep products used to make sausages are one of the key export products and are monitored by 13 quarantine centers in Pakistan. These centers rely on credible laboratory testing, which for the first time is now available at the Veterinary Residue Laboratory and internationally recognized. “In the absence of its own national analytical capabilities, tests had to be outsourced to other countries, which is both expensive and time-consuming,” Sasanya said. “With this new achievement, Pakistan can now rely on its own analytical capabilities.”

Several countries from around the world are benefitting from this nuclear-derived technique and the assistance of the IAEA and the FAO for its implementation, including Botswana and Morocco.

[Riaz Haq]

#Qatar taps #Pakistan market with direct #Karachi-#Doha route amid #Gulf blockade @AJENews

http://www.aljazeera.com/news/2017/09/qatar-taps-pakistan-market-gu...

With UAE’s regional hub off-limits, direct trade routes are opening between Doha and Karachi to boost economic ties.

Doha, Qatar - A Qatari shipping company is set to launch what it calls the fastest direct service between Doha and the Pakistani port city of Karachi this week, as the Gulf state seeks to establish new trade routes amid a land, air and sea blockade from its Arab neighbours.

State-run conglomerate Milaha is overseeing the weekly venture, with the first vessel due to arrive at the newly-inaugurated Hamad Port outside the Qatari capital on September 11 following a transit time of four days - compared to a normally six-to-seven-day journey.

"We have been vigorously ramping up our operations between Qatar and key Asian markets in response to growing demand from traders, importers, and exporters on both sides," said Abdulrahman Essa Al-Mannai, Milaha president and chief executive officer, in a statement ahead of the launch.

The move comes as Qatar counters economic sanctions imposed by Saudi Arabia, the United Arab Emirates (UAE), Bahrain and Egypt three months ago.

The four Arab nations severed all diplomatic and trade ties with Qatar on June 5 over allegations of supporting "terrorism". Qatar strongly denies the claims.

Prior to the dispute, most of Doha's shipments to and from Pakistan docked at Dubai's Jebel Ali port - a regional hub.

But with the Emirati port now out of bounds as a trans-shipment centre, Qatari companies are increasingly exploring alternative links to effectively penetrate the Asian market.

Besides the direct route, Qatar and Pakistan are also trading via Oman's Sohar port.

"We used to trade via Jebel Ali in Dubai, but because of the restrictions and the ongoing Gulf situation, we are now going direct so Qatar can capture Pakistan's market," Babar Rauf, sales and marketing manager of Rahmat Shipping, Milaha's Pakistani agent, told Al Jazeera.

Earlier in August, Qatar Ports Management Company, Mwani, also kickstarted its direct shipping line between Doha and Karachi operated by the Asian firm Wan Hai.

'Win-win'
Milaha's new service, called PQX, will mainly bring perishable products and other food items, such as seafood, fruits and vegetables, from Pakistan.

[Riaz Haq]

THE EXPRESS TRIBUNE > PAKISTAN > PUNJAB
First Baskin-Robbins store opens in Lahore

By Our CorrespondentPublished: October 12, 2017

https://tribune.com.pk/story/1529378/first-baskin-robbins-store-ope...

One of the world’s largest chain of ice cream stores, Baskin-Robbins has opened its doors in Lahore.

“We’re delighted to open our first ever Baskin-Robbins store in Pakistan, and share our range of delicious ice cream flavors with the people of Pakistan,” the Vice President of Dunkin’ Brands International, John Varughese said in a statement.

“Our store will become the place to be where our visitors will make many happy moments with their friends and family, while enjoying our delicious ice creams and other tempting frozen treats.”

The ice cream store will feature flavours available internationally, including classics like Pralines ‘n Cream, Jamoca® Almond Fudge, Mint Chocolate Chip and Very Berry Strawberry and regional favorites like Mango Tango and Tiramisu.

AHG Flavours, which had announced obtaining licence for and opening of 35 Baskin-Robbins stores across Pakistan, expressed excitement at the launch.

“We’re excited to officially bring the world famous Baskin-Robbins brand to Pakistan, along with its range of premium ice creams and innovative ice cream treats,” the company said. “We look forward to this shop becoming an integral part of the local community, and to opening many more locations across Pakistan in the months and years ahead.”

[Riaz Haq]

Baskin Robbins appoints creative agency in Pakistan Shortly after signing a master licensing agreement with Baskin Robbins, AHG Flavours has hired Ogilvy & Mather to help develop the brand in Pakistan. 

Read more at: http://www.campaignasia.com/article/baskin-robbins-appoints-creativ...

http://www.campaignasia.com/article/baskin-robbins-appoints-creativ...

Baskin Robbins has named Ogilvy & Mather as its creative agency in Pakistan, charged with its go to market strategy and launch campaign. AHG Flavours Limited has a master licensing agreement with Baskin Robbins to develop the brand in Pakistan and launch 35 shops across the country, with the primary focus on the city of Lahore. Ogilvy & Mather was tasked to aid in the brand awareness across the portfolio of classic ice cream flavours as well as the range of custom ice cream cakes, frozen beverages, ice cream sundaes, and takehome ice cream treats. According to Asim Naqvi, the CEO of Ogilvy & Mather in Pakistan, his agency was tasked with creating the digital strategy and create a campaign deployed with outdoor media, social media, and the upcoming launch event. "We are pleased to be collaborating with Irfan, Harris and their team to begin developing the Baskin-Robbins brand in Pakistan by bringing our wide range of delicious ice cream flavours, cakes and other treats to Pakistani customers," said John Varughese, Vice President, Dunkin' Brands International. According to a study by Euromonitor in 2016, the ice cream and frozen desserts market in Pakistan was valued at US$152 million, with Unilever and Engro Foods categorized as market leaders from a volume perspective, due in large part to their low price point. Brand marketers distinguish ice cream brands into three distinct categories based on consumption behaviour: in-home, impulse, and out of home. The in-home ice cream category refers to the large tubs of ice cream that are purchased for family consumption in a home or large gathering. The impulse ice cream category refers to those sold in sticks, cups, and cones. The out of home ice cream category refers to what is consumed in HoReCa, recreational areas, and cinemas. Baskin Robbins effectively operates in all three categories with its own retail presence with a dine-in option, a distribution presence in major retail outlets, and as an option on the dessert menu. In Pakistan, the impulse category makes up roughly 70 percent of the category according to Falak Jalil, the former brand manager for Walls at Unilever. She says that in Pakistan half of ice cream consumption consists of kulfi (a local delicacy) with the majority being flavoured. The impulse category in Pakistan is dominated by Unilever's Walls and Engro Foods' Omore. On the international modern trade retail side, Baskin Robbins will be competing with London Dairy, Ben & Jerry's, Haagen Dazs, and Movenpick. On the dine-in side within its price points, Baskin Robbins will compete for the share of the throat with Johny Rockets, Movenpick, and Cold Stone. The first store of Baskin Robbins will open tomorrow in Lahore.

Read more at: http://www.campaignasia.com/article/baskin-robbins-appoints-creativ...

[Riaz Haq]

Pakistan launches its biggest halal plant
01-Jun-2016 By Shahid Husain, in Karachi
Pakistan’s largest conglomerate, the Fauji Group, has launched the country’s biggest halal abattoir, meat processing and exporting unit near Port Qasim, Karachi.
HTTPS://WWW.GLOBALMEATNEWS.COM/ARTICLE/2016/06/01/PAKISTAN-LAUNCHES... 

Fauji Meat — a subsidiary of Fauji Fertiliser that commenced operations in April 2015 — and Al-Shaheer Corporation, an old meat exporting company, are doing big business in meat marketing at home and abroad.

Both companies have their own large animal breeding farms to ensure uninterrupted supply of healthy animals for regular slaughtering.

Exports of meat and meat preparations have grown rapidly — from 72$m in FY09 to $269m in FY16 though a decline has set in during the first seven months of FY17, due to a growing consumption in local markets and smuggling of live animals to neighbouring countries.

Marketing infrastructure of dairy and meat products has also seen a big improvement over the years. Large milk processing companies are successfully operating hundreds of milk collection centres in the country. Small dairy farmers also have more access to better ways of dairy farming and marketing now than in the past, thanks to targeted public-private partnership programme.

In January this year, dairy farmers in Punjab celebrated successful completion of a five-year $21m project of sustainable dairy development. Through a partnership with the Punjab government and Nestle Pakistan, the project improved the lives of over 50,000 small dairy farmers through its skills-based training programmes, resulting in a 17pc increase in the average milk yield and an over 10pc boost in farmers’ incomes, according to media report.

The project generated income for small farmers and created jobs for rural men and women. The project also upgraded 118 farms, now serving as training hubs for small dairy farmers.

It also helped install a pilot 50 cubic metre biogas plant for a dairy cooperative milk chiller in Vehari and constructed a 375 cubic metre biogas plant at the government-owned Bahadurnagar Farm in Okara.

https://www.dawn.com/news/1318665

[Riaz Haq]

Pakistan’s grapes are cultivated on a 15,302 hectare area, while annual productivity is 64,317 tonnes. Balochistan grows most of the grapes. However, with the efforts of the Agriculture Institute Chakwal, warmer areas such as Multan, Bahawalpur and Rahim Yar Khan have started to the grow the fruit on a large scale.

https://tribune.com.pk/story/1717479/1-grape-cultivation-gains-mome...

Grapes grown in Rahim Yar Khan are also available in the market. Thanks to the taste, local gardeners are making decent returns on the crop.

While speaking to Express News, Minthar’s gardener Imran Mughal, agricultural expert Munir Hussain and Muhammad Hanif, said a farmer can earn millions of rupees from one acre of land due to good crop turnover of the local grapes.


They said Royal, Thomson Seedless, Cardinal, Kings Ruby, White Seedless, Early White and Perlit are the important and most liked grapes.

They advised farmers and growers to get a plant from a garden that has good fruit instead of buying a grape plant from the nursery. They said the the grape plant can be grown twice; in January and February and likewise in March and April.

They said there is less need of irrigation, while a medium-sized fertile land is suitable for setting up grape gardens.

The agriculture experts said the crop should be protected from Bhar, mealeybug and Blue Bird attacks as they damage the crop. They added grape cultivation could yield maximum profits.

Earlier, a farmer from Chakwal, Mohammad Niaz, not only grew grapes across seven acres of land, but also managed exceptionally good returns on his investment.

A few years ago, the prospect of cultivating grapes in this northern part of Punjab was unimaginable, but the trend changed when the World Bank and the provincial government joined hands to improve farming standards and usher in new farming technologies.

Subsided commodities: Quality fruit hard to find

Niaz is among those lucky farmers who were picked for the implementation of the first phase of the Punjab Irrigated Agriculture Improvement Programme. The initiative was funded by World Bank with a loan of $250 million.

The Punjab government offered 60% subsidy to farmers for introducing new techniques. In order to qualify, the farmer had to contribute 40% to the cost, which alone made most farmers ineligible due to very high equipment charges upfront.

However, the programme was meant to offer an opportunity to small farmers to adopt modern technologies to cope with the growing water crisis, besides increasing agriculture yield.

Grape cultivation through drip irrigation benefits the farmer, as well as the country, through 50% water saving, 45% reduction in fertiliser cost and almost 100% increase in per acre yield.

[Riaz Haq]

Turkey’s Ministry of Food, Agriculture and Livestock has sent a latest automatic tea-processing plant to Pakistan as a gift in recognition of the country’s tea-growing efforts.

https://www.dawn.com/news/1353946

Talking to journalists on Friday, National Tea and High Value Crops Research Institute Director Dr Farrukh Siyar Hamid said the plant has arrived in Karachi and currently paperwork is being done for its release.

The plant, which has a capacity to process 400 to 500kg of tea per day, would be made operational in April next year.

The plant will be set up at the tea project site located in Shinkiari, near Mansehra. Spread over 50 acres, this is Pakistan’s first tea garden where black and green tea is produced.

The existing plant at the institute was imported from China and has the capacity of producing one tonne of black tea per day and about 100kg green tea per day.

Dr Hamid said that after a series of soil surveys carried out by the institute, 158,147 acres of land suitable for tea plantation has been identified in districts of Mansehra, Battagram and Swat. The productive and cultivable land is presently not being utilised, he said.

The institute had also carried out soil surveys in Azad Jammu and Kashmir (AJK) where prospects emerged for the cultivation of tea. However, the forest department of AJK refused to allocate land for the project, he added.

Tea crop cultivation has been experimented on farmers’ fields in different agro-ecological zones in the three districts, he said.

The efforts to promote tea cultivation received a setback when the tea garden, spread over 186 acres, and a plant were completely destroyed in Swat during the military operation against terrorists.

The tea research institute has completed testing of 14 exotic tea germplasm and identified 13 tea clones.

In addition, the institute has developed clusters at Siran, Konsh and Kunhar valleys where sixty farmers were trained to grow tea.

Responding to a question, Dr Hamid said the tea being produced in Pakistan is much liked by the Chinese and the products have the prospects to thrive along the China-Pakistan Economic Corridor.

The tea institute’s data shows that Pakistan imported 93,500 tonnes of black tea during the first six months of 2017 at a cost of Rs22 billion. The import of 450 tonnes of green tea during Jan-June 2017 period cost Rs106 million to Pakistan. The data further shows that import of tea increased by over 325 per cent in 20 years.