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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.
Here's a Devex report on US support for agribusiness development in Pakistan:
A new project by the United States Agency for International Developmentand the Agribusiness Support Fund — a locally registered development organization in Pakistan — aims to boost the country’s agricultural sector.
The Agribusiness Project worth $90 million is expected to increase the competitiveness and productivity of the country’s horticulture and livestock subsectors, which generate the largest share of revenues worldwide.
The project, which will span five years, will help improve productivity and product quality through technical assistance programs meant for 62,500 farmers and 2,500 agribusiness stakeholders, and create 1.3 million jobs. It will also leverage $320 million by the private sector through cost-sharing support to 45,000 Farmer Enterprise Group members, 100 associations and cooperatives, 250 individual and corporate farmers, 40 extension providers, 140 small and medium enterprises, and eight companies.
http://www.devex.com/en/news/blogs/90m-usaid-agribusiness-project-i...
Here's an ET report on Pakistani PM's "valuing US as a major development partner":
Prime Minister Raja Pervaiz Ashraf on Saturday said that Pakistan regarded its relations with the United States as “very important” and that Pakistan valued it as a major development partner.
Ashraf’s remarks came after he held talks with US special envoy to Afghanistan and Pakistan Marc Grossman, who arrived in the Pakistani capital on Friday for talks with top officials.
“The prime minister said that relations between Pakistan and the United States are very important and we value the United States as a major development partner,” a statement issued by Ashraf’s office said.
“We have a shared objective in fighting terrorism and need to cooperate more to get rid of this menace,” the statement said.
Ambassador Grossman said that future relations between Pakistan and the United States should be based on market access and trade.
The US government was working on a bilateral investment treaty to “facilitate” US investment in Pakistan and improve market access, according to the Pakistani statement.
It said that the United States has promised $200 million for the construction of Diamer-Basha dam in northern Pakistan.
Ties between Islamabad and Washington have been rocky for years, and have only just resumed after nosediving following the secret raid that killed Osama bin Laden and an air raid that accidentally killed 24 Pakistani troops.
Washington considers Pakistan’s semi-autonomous northwestern tribal belt as the main hub of Taliban and al Qaeda militants plotting attacks on the West and in Afghanistan.
http://tribune.com.pk/story/437202/pakistan-sees-us-as-major-develo...
Here's an interesting Washington Post story on pink salt spa in Pakistan:
ISLAMABAD — You are going to have to take Pakistan’s newest health fad with a grain of salt. Actually, several tons of it.
A newly opened spa in the capital touts amazing curative powers for a mineral better known as a table seasoning. In fact, the spa’s chief executive, Sabkahat Qadeer Butt, is so convinced of its medicinal magic that he’s created the entire facility from salt.
And not just any salt, but pink salt mined from the foothills of the Himalayas.
Nearly everything in the cave-like space is carved from the rose-hued crystal -- from the bricks in the walls to the tiles of the steam bath, it is all hewn from slabs of salt. Patrons leave their shoes at the door. Even the pink pebbles of the floor are all rock salt, which is absorbed through the skin.
Pakistan is the number one producer of pink rock salt in the world, according to the government’s Ministry of Petroleum and Natural Resources. Butt, the Pakistani businessman who is CEO of the Khaas Health Care and Cure Club in Islamabad, says he used 1,400 tons of the substance to create the spa in the city’s Diplomatic Enclave.
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Butt, 48, said salt baths originated as an old Greek method of treatment. Alexander the Great took loads of the stuff back home after conquering parts of modern-day Pakistan, he said. Salt became known as white gold and was even used as currency: “The Greeks would pay their armies in salt. It was the major component of the barter system.”
Some of the historical uses of salt are widely known. It is a natural antiseptic, proponents say, and a natural preservative. Salt has been used to preserve everything from meat and fish to sensitive documents.
But new-age spas like the one in Islamabad tout salt therapy as a veritable cure-all. Pink rock salt contains 84 minerals and can help skin ailments, upper and lower respiratory functions and, when combined with heat, can be used for pain management, Butt said.
In Hollywood, salt wraps and baths are used for quick weight loss when stars need to slim down for roles or to walk the red carpet. “It is also good for high blood pressure,” Butt claimed.
And low blood pressure? Yes, that too. In fact, Butt declared, salt can treat 125 disorders and diseases.
Qutbuddin Kakar, an Islamabad-based doctor who specializes in tropical diseases and is associated with the World Health Organization, said he has heard of people taking salt baths as a cure for skin maladies. But otherwise, he said, “There has been no scientific evidence which shows or proves that pink salt is a cure for so many or all diseases.”
While blanket curative claims are dubious, that hasn’t kept some fad followers from developing an appetite for the blush-tinted condiment. Ordinary table salt costs about 3 cents an ounce in U.S. grocery stores, whereas the pink stuff can fetch $1 an ounce.
There is one catch: Salt disintegrates when exposed to water and steam. So what happens when the spa melts? Not a problem, said Butt. He also owns a salt mine. “If the walls dissolve, I can replace them.”
http://www.washingtonpost.com/world/asia_pacific/in-pakistan-a-pink...
Here's a PakTribune story on buffalo semen production in Pakistan:
Vice-Chancellor, University of Veterinary and Animal Sciences (UVAS) Prof Dr Talat Naseer Pasha said that despite lack of a proper mechanism of semen prodcution in the country and around 3.5 million poor semen doses, Pakistan has the best buffalo breed producing 67 percent milk from them.
Talking to APP on Sunday, he said the private sector was producing 3.5 million semen doses against the government's 2.5 million doses. He deplored that it was very alarming that the quality of bulls being used for semen collection was inferior as the private sector was just doing business without covering the aspect of animal genetics.
Whereas the public sector dose after a sample check of around 5,000 doses in the quality lab, it is commercialised. If we provide quality semen to small farmers on their doorsteps it will bring a revolutionary change in the fast growing livestock sector, he added. He said Pakistan had the best buffalo breed in the world and 67 per cent milk was being produced from elite dairy animals. But, he said, there was lack of awareness about the selection of best bulls for breed improvement and absence of progeny testing which was causing low productivity of dairy animals. The VC also highligted major constraints in the livestock sector including lack of genetic improvement, poor nutrition, health constraints, unorganized marketing and lack of human resource at various levels.
Steps to overcome these constraints are vital to upgrade the livstock sector in the country, he added.
http://paktribune.com/business/news/Pakistan-has-best-buffalo-breed...
Here's a Businessweek story of Pakistan's rising rice exports:
Rice exports from Pakistan, the fourth-largest shipper, are set to rebound from November with the new harvest after a rally in domestic prices and cheaper supplies from India cut shipments, a traders’ group said.
Overseas sales may reach 4 million metric tons in the year that began on July 1 as increased supplies from the new crop cool local prices, said Safder Hussain Mehkri, vice chairman of the Rice Exporters Association of Pakistan. Exports slumped 46 percent to 238,659 tons in the July-August period, according to Pakistan Bureau of Statistics. Shipments were 3.7 million tons in 2011-2012, according to the association.
Rice, staple for half the world, is poised for a second monthly decline as Thailand and India, the world’s biggest exporters, accelerated sales. Futures are little changed this year, lagging behind corn, wheat and soybeans, as global rice harvests are set for a record.
“New harvest will bring down the prices which are way too high at the moment, making us less competitive in the global market,” Mehkri said by phone from Karachi. “Our rice is 10-15 percent costlier than India’s. Better domestic prices will improve our competitiveness against India.”
Non-basmati rice from Pakistan was sold at about $451 a ton free-on-board in July and August, while it was $385 a ton in India, according to data from the exporters’ associations in both the countries. Rough rice for November delivery was little changed at $14.90 per 100 pounds on the Chicago Board of Trade at 6:48 p.m. in Singapore yesterday. Futures have lost 2.5 percent this month.
Indian Exports
India will export 8 million tons in 2011-2012, making it the top shipper ahead of Vietnam and Thailand, the U.S. Department of Agriculture data show. In 2012-2013 India’s shipments would drop to 7 million tons, compared with Thailand’s 8 million tons and Vietnam’s 7 million tons, the USDA estimates. Pakistan’s exports in 2012-2013 will reach 4 million tons, according to the agency.
Shipments from Pakistan were also hurt by international trade sanctions on Iran, which made payments between traders in the two countries difficult, Mehkri said. The rice harvest this year may surpass the 6 million tons in 2011-2012, he said.
http://www.businessweek.com/news/2012-09-26/pakistan-s-rice-sales-s...
Here's Express Tribune on growing food market in Pakistan:
Pakistan is a huge and growing market for food. In big cities like Karachi and Lahore, restaurants of all types and sizes are jam-packed during opening hours. Looking at the restaurant business, it appears that very little, including economic uncertainty, has adversely affected food consumption. The popular media has also picked up on this culinary zeitgeist and almost all the TV channels in the country have programmes on cooking and other aspects of food.
For some years a number of ‘food streets’ have sprouted up in different cities, most notably Karachi, Lahore and Islamabad. In terms of growth potential and expansion, Lahore offers exciting opportunities. The area that stands in the shadow of the historical Badshahi Mosque is a great example of regeneration that the government of Punjab successfully undertook. Such regeneration projects in different parts of the country are not only developing a culture of sophisticated culinary habits, but are also creating sustainable employment opportunities for many.
Other newly-established food streets and similar developments include Sea View restaurants and Port Grand Food Street.
Creating business opportunities around the consumption of food is arguably the foundation of a sustainable economy, especially in a country the size of Pakistan. There are numerous examples of successful global food businesses that have contributed immensely to the economies of their respective countries of origins. McDonald’s is perhaps the best example of such a success story, with gross revenues of over $34.17 billion (2012 figures). In terms of financials, McDonald’s is bigger than Latvia, as the latter’s GDP of $26.14 billion (2011 figures) was smaller than McDonald’s annual revenue for the same year ($27 billion). Although Subway is the largest restaurant chain in the world in terms of the number of restaurants (37,000 outlets), McDonald’s remains the largest in terms of total revenue.
http://tribune.com.pk/story/444750/culinary-zeitgeist-the-food-busi...
Here's Economic Times' report on Pakistan sugar exports:
NEW DELHI/MUMBAI: Pakistan has allowed the export of an extra 200,000 tonnes of sugar, on top of the 300,000 tonnes already allowed, as the government aims to trim surplus stocks and bolster local prices.
Higher stocks and expectations of robust output next year encouraged the Islamabad government to allow the export of the additional sugar, Ali Raza Bashir, spokesman for the Finance Ministry, said, though the permission was for less than had been sought.
"There was a request to allow (extra) exports of 400,000 tonnes but the cabinet gave its permission for 200,000," Shunaid Qureshi, chairman of the Pakistan Sugar Mills Association, said by telephone.
The move came as neighbour India sealed deals to import about 5,000 tonnes of white sugar, despite expectations of a domestic surplus, as some traders seek to capitalise on lower prices in Pakistan and higher prices in India.
In Pakistan, sugar output in the crop year starting Oct. 1 is likely to remain steady at last year's level of around 4.7 million tonnes, Qureshi said.
The country's sugar consumption is between 4 million tonnes and 4.2 million and it started the 2012/13 year with around 400,000 tonnes of stock, said a dealer in Karachi who declined to be named.
Most sugar so far has gone to Afghanistan, Saudi Arabia and east Africa.
"These countries will again show interest due to lower prices. Millers in Pakistan want cash to start the crushing season ... They can give discounts to world prices," the dealer said.
INDIA BUYS WHITES
A New Delhi-based trader, who did not wish to be named, said: "The (Indian) traders who have contracted imports from Pakistan perhaps found the FOB price of $545 per tonne attractive enough to buy.
"They stand to gain $15 to $20 a tonne after paying a duty of 10 percent," the trader added.
The sugar price in western India is around $680 per tonne, while in northern and eastern parts of the country it is as high as $720.
India, the world's top consumer and the biggest producer behind Brazil, has been an exporter for the past two years. Exports in the year to September 2012 totalled 3.3 million tonnes.
Traders in India, which levies a 10 percent tax on sugar imports, have booked whites from Pakistan for delivery at the eastern Haldia port, a second Indian trader said.
India is expected to have a small exportable surplus in 2012/13, though higher production costs could make it difficult to find buyers at prices acceptable to mills.
Last month, Indian mills signed deals to buy up to 450,000 tonnes of Brazilian raw sugar because of the attractive gap between domestic and overseas prices.
The strengthening Indian rupee and a wide gap between Indian and Pakistani prices made these deals attractive, said a Mumbai-based trader with a global trading firm.
India could buy more for delivery in October and November to meet higher festival demand, traders said.
http://economictimes.indiatimes.com/news/economy/foreign-trade/paki...
Here's a PakistanToday report on US AID training Pak youth in dairy management:
United States Agency for International Development (USAID) Mission Director for Punjab Jeff Bakken on Friday awarded graduation certificates to 22 trainees who successfully completed a one-month farm manager training program under USAID Dairy Project. This innovative management training teaches Punjabi youth pursuing a career in dairy farm management to enhance milk production and increase their incomes.
Mr Bakken emphasized U.S. support for improving livelihood for rural communities in the Punjab and Pakistan. He remarked, “today’s event highlights the importance that the United States places on deepening the impact of development assistance to the people of Pakistan and improving the lives of those in rural communities. Your dedication is critical to pave the way for long-term economic gains in the dairy sector.”
Dairy Project Director Jack Moser also congratulated the graduates. “We celebrate the success of farm managers who will make a difference in the livestock sector by offering their services to the commercial dairy farm enterprises in the Punjab. The USAID Dairy Project will continue to mobilize and support farmers in the Punjab by training 400 individuals in dairy farm management,” he said.
USAID’s three-year, $14 million Dairy Project is designed to impact the lives of 9,000 small dairy farmers by enhancing their productivity by at least 10 percent, resulting in at least 10 percent increase in their incomes. The project provides training on the best dairy farm management techniques, including artificial insemination, and provides women livestock workers training in entrepreneurship.
http://www.pakistantoday.com.pk/2012/10/06/city/lahore/usaid-trains...
Here's a BR report on olive tree planting in Pakistan:
ISLAMABAD: As many as 1500 hectares of land would be brought under olive cultivation within next three years with an aim to exploit the potential in this particular sector and make the country self-sufficient in olive production.
The three-year project has been launched under the debt swap agreement between Pakistan Agriculture Research Council (PARC) and Italian government for promotion of olive farming in the country, a top official in the council said.
"The PARC has already identified olive cultivation areas in Khyber Pakhtunkhwa, FATA, Potohar Region and in Balochistan and has started work on planting olive trees since March this year," Project Direct Olive Production and Senior Director Crops, Dr. Mohammad Munir told APP here.
He said that the PARC has taken all the four province onboard for launching the project.
The land being brought under the cultivation under the project would be in addition to that already utilized for the cultivation of olive.
The official was of the view that olive cultivation needs fewer resources and marginal lands are needed for its cultivation so it is a lucrative engagement for farmers who can take full advantage of this.
Once established, the olive gardens would start bearing fruit after three years (in 2015), so the council would set up four olive oil extraction machinery (plants) to facilitate farmers, he said and elaborated that one each big plant would be established in Balochistan and Potohar region while two units would be installed in Khyber Pakhtunkhwa and FATA region.
In addition, mobile oil extracting units would also be arranged that would be used for oil extraction in those areas where farmers have no access to these four oil extracting facilities.
He said plantation of the olive plants takes place in March or November of each year adding that the PARC has identified 12 kinds of plants to be planted in these gardens, keeping in view the climatic conditions.
Munir said that the Italian government is also interested in launching research project aimed promoting olive cultivation in the country.
A memorandum of Understanding to this effect would be finalized soon under which Pakistan would become member of the regional centre that has been engaged in research activates for promotion of olive.
The Italian government is already working with Afghanistan and Nepal and Pakistan would be the third member of this centre, he added.
Munir said that Pakistan has been involved with the Italian government since 1984 for the promotion of olive as three projects were initiated by Pakistan Oilseed Development Board (PODB) in this regard earlier.
However, he added, the current project was the forth project in this line which the Italian government gave to the PARC for execution under Debt-Swap agreement.
http://www.brecorder.com/pakistan/business-a-economy/86446-olive-to...
Here's another BR report on growth of oil seed farming in Pakistan:
Pakistan Oilseed Development Board (PODB) is making all out efforts to enhance local production of edible oils in a bid to reduce dependency on imported edible oils, which would save the country valuable foreign exchange to the tune of $2 billion per annum.
This was stated by Chairman Pakistan Oilseed Development Board, Ghulam Idress in an interview with Business Recorder. He said that since the establishment of PODB in 1995 the annual growth of oilseeds in Pakistan was 2.56 percent but at present its growth rate is about 5 percent per annum and the PPP-led federal government is committed to further boosting its growth so that self-sufficiency in edible oils may be achieved.
Ghulam Idrees said that the establishment of such an institution is creating opportunities for the farmers and providing high quality edible oil to the people of Pakistan as was the vision of late PPP Chairperson Benazir Bhutto. In 1995, keeping in view that the country was an agriculture based economy and was spending huge foreign exchange on the import of oilseeds the PODB was established. At the time Pakistanis were consuming about 1.42 million tons of edible oil per annum.
While giving details of the achievements of the board, he said that in 1995, a total 8,000 acres was under cultivation of Canola seed but in 2008-09 it is cultivated on more than 172,000 acres across the country. Similarly sunflower was cultivated on 185,000 acres in 1995 and now it is being cultivated on 929,000 acres, which is a significant achievement. He said that in financial terms domestic production is saving around Rs112 million for Pakistan in foreign exchange. Husk is a bye-product that is contributing Rs28.3 million per annum to the economy.
Mr. Idrees said that in 1995 PODB started plantation of palm oil trees in costal areas of Sindh and Balochistan and now the trees have started producing fruits.
Mr. Idress further revealed that in year 2000, the Board supported the plantation of olives in Balochistan and Potohar region and now Pakistan is also producing olive oil. He said that PODB is encouraging farmers to plant olive trees and has provided support in establishing two olive oil tree gardens - in Teshil Talagang of District Chakwal, Punjab and District Nowshera in NWFP.
Mr. Ghulam Idrees said that PODB was providing all the facilities to the farmers of District Dera Ismael Khan and some parts of the Balochistan province so that the production of sunflower could be increased. Similarly PODB was working on producing quality Canola oilseed in NWFP province and its efforts have started producing desirable results as at present Pakistan was producing 46 percent of its Canola oilseed requirements.
While talking about the total domestic requirements of edible oil and its local production, Mr. Idress said that in 2009 Pakistan produced 0.684 million tons of edible oil which is about 24 percent of the total needs of the country and the rest was imported from other countries.
He said that 3.015 million tons of cotton seed was produced locally and from it 0.362 tons of edible oil was produced, sunflower production was 0.598 million tons which produced 0.227 million tons of edible oil.
Idrees said that 1.783 million tons of palm oil, 0.092 million tons of soybean and 0.016 million tons of other edible oils was being imported.
Idrees categorically stated that if farmers of the country are provided a favorable environment they could produce sufficient oilseeds in the country to meet local demand.
http://www.brecorder.com/epaper/br_150151_559.html?title=Pakistan%2...
Here are a couple of recent stories on Pak agribusiness:
1. Harvard Business School picks Pakistan's K&N for case study:
Karachi: World’s most prestigious business school in the United States of America, Harvard Business School (HBS) has selected a Pakistani company, K&N’s, as a case study.
HBS faculty members select companies from around the world for a written account of a company focusing on strategic business issues, of interest to a global audience, which are then used for classroom discussions. HBS case studies are world renowned, and not only used by HBS faculty, but also by majority of leading business schools and universities around the world for teaching.
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K&N’s is greatly honoured with this achievement, as for any company, becoming a HBS case study is a great honour. While felicitating K&N’s, Pakistan Poultry Association (PPA) said is proud to have its founding member featured as a HBS case study as it is the only company from Pakistan to have been chosen by HBS to write the case study and use it in its executive education programs. This is also a great achievement as a very positive image of Pakistan will be reflected through the K&N’s case study reading and discussions by thought-leaders and key decision makers from the global food and agribusiness industry, and university students alike, around the world.
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K&N’s integrated poultry operations include grand parent breeding, parent breeding, hatching, feed milling, broiler growing, poultry processing, and production of ready-to-cook & fully cooked chicken products. K&N’s Quality Assurance Lab monitors and regulates the integrated poultry operations to ensure K&N’s chicken products are wholesome, safe and healthy. K&N’s manages its own product distribution (including Pakistan’s most extensive cold-chain distribution system) and a chain of chicken stores for its range of chicken products.
http://www.thenewstribe.com/2012/10/02/harvard-business-school-sele...
2. Japan's JICA helping build vapor heat treatment facility for mango exports to Japan:
Japan International Co-operation Agency (JICA) is likely to extend its help to Pakistan for setting up a vapor heat treatment (VHT) plant worth Rs 170 million in order to tap the higher end Japanese market. The offer was made by Yuji Aoki (Japanese Consultant, TDAP) while speaking at a meeting held at the Pakistan Horticulture Development and Export Company (PHDEC), says a spokesperson here on Monday.
The meeting was informed that PHDEC had already succeeded in sending mangoes to Japan on trial basis in its endeavours to tap higher-end Japanese market. Yuji Aoki speaking on this occasion said that the plant could be installed in Pakistan before the next mango season. He said mango was liked by Japanese people for its sweet taste but there is need to develop certain infrastructure facilities for standardisation at production, packaging and processing level to meet the SPS requirements of Japanese market.
Akram Khalid, Sr. G M Co-ordination, PHDEC chairing the meeting said that PHDEC will network with stakeholders to get their feedback and to assess the viability of this costly initiative. Nudrat H Khan Senior Manager (Marketing) PHDEC said that a comprehensive marketing campaign can be organised in Japan with the collaboration of commercial section of Pakistan Embassy in Japan.
Sarfraz H Iqbal Sr Manager apprised AOKI about the projects and services of PHDEC. It is important to note that in Japanese market mangoes are sold in pieces at a comparatively higher price which is approximately 4 times greater than the price Pakistani mangoes fetch in its traditional markets, concludes the PHDEC spokesperson.
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