Dawn agri-expo-2015-special-report

THURS DAY MARCH 19 , 2015

02 DAWN THURSDAY MARCH 19 , 2015

BY AHMAD FRAZ KHAN

FFOUR global agencies monitoring weather patterns recently declared 2014 the hottest year ever since humanity started monitoring

weather conditions in the year 1880. It must have rung alarm bells around the world, especially in countries like Pakistan that largely depend on the agriculture sector, both for feeding their population and for economic development.

According to these global agen-cies – two US (NASA and the National Oceanic and Atmospheric Administration), one Japanese (Japan Meteorological Agency) and the Australian Bureau of Meteorology) – 2014 had surpassed all previous scorchers – 1998, 2005 and 2010. More worryingly, except for 1998, as per NASA’s claim, all the 10 hottest years recorded in his-tory so far came in the fi rst 14 years of the current century.

Fortunately, the major rise in temperature was over the oceans, and soil, by and large, escaped the impact. However, it was the fourth hottest year for land as well. For scientists, another cause of concern was the absence of El Nino (which usually accelerates global tempera-ture) in 2014. This year (2015) El Nino is part of meteorological fore-cast, which may worsen the heat record for humanity.

This declaration has come on the heel of a vast compendium that local researchers have compiled in the last few years, listing areas of impacts and studying their sever-ity. They have warned that chang-ing weather realities could literally play havoc with agriculture as we know it, unless, of course, we, as a nation, take them into account, plan accordingly and don’t get caught napping.

The range of researchers (both private and offi cial) warning about the changes and their impact belie the theory promoted by many,

which denies the changes and challenges – either calling these changes a routine matter that is going on ever since earth exists or that climate changes have hit a plateau.

For example, a study at Agriculture University, Faisalabad (UAF), which houses a full-fl edged Climatology Department, last year ranked Pakistan eighth most vul-nerable country to the climate changes. Dividing the entire 21st century into three periods (up to 2040, 2070 and the rest), UAF acad-emicians said that average day

temperature would increase by 2.8 Celsius by 2040. Even more threat-ening is rise in night temperature by 2.2 Celsius during the same period.

Calculating the cost of change for wheat-rice production cycle, which was the focus of their study that was presented at a seminar, they said that rise in night temper-atures would hugely affect the entire production cycle. These are relatively cooler 12 hours of night that bring both quantity (health and grain weight) and quality (aroma, length and water absorp-

tion and retention) to the rice crop and turn it into what it is known for the world over.

In case of wheat, it is the mild March – especially during the nights – that fi lls the grain and determines productivity and size of the national yield. This grain shriveling loss could go up to a hor-rendous 30 per cent of yield and could be the difference between a wheat-exporting and a food-inse-cure Pakistan. This has been the pattern of production for the last many millennia in this region, which is now being threatened by

the climatic change.The UAF study came after a

warning by the State Bank of Pakistan in its Annual Report 2013 that termed climate change not just a global debate, but a major threat to Pakistan; particularly, when it raises the risk of food secu-rity for the country.

Estimating that temperature might rise by another 0.6 to 01 Celsius by 2030, it warned that the changes may take down wheat pro-duction by 1.5-2.5 per cent and rice

Continued on Page 4

Out of nine areas where threat perception is increasing, six have direct agricultural consequences for Pakistan. The threat can be countered with a bit of vision and matching action.

Time to be proactive

EYE ON THE FUTURE: Though the fi elds remain scenic, the looming threat of climate change cannot be just wished away.

03DAWN THURSDAY MARCH 19 , 2015


Continued from Page 2

by two to four per cent by 2020. Vegetables and livestock would also have their list of risks.

The State Bank Report was preceded by a voluminous report by the federal Ministry for Environment in 2012, in which the authors had warned of the increased risks to the Agriculture sector due to climatic change in the years to come.

More than anything else, the report warned of immense threats to farming. Out of nine areas where threat perception is increasing, six had direct agricultural consequences for Pakistan and its native agriculture.

The report claimed that the carbona-ceous fi lth has started mixing into Indus water, pouring in from glaciers, which would have hazardous consequences for life of every kind in the waterways throughout. The activity is taking place in all the three mountain ranges – the Hindukush, the Karakoram and the Himalaya – that feed our rivers.

The agriculture-related threats that it listed included considerable increase in frequency and intensity of extreme weather events; recession of glaciers due to global warming and carbon soot depos-its from trans-boundary pollution; increased silt in dams caused by frequent, fl ash and intense fl oods; increased tem-perature resulting in enhanced heat- and water-stressed conditions, particularly in arid and semi-arid regions; intrusion of saline water in the Indus delta, threaten-ing coastal agriculture and mangroves; and tension between upper and lower riparian in water stress periods.

Such reports have already complicated things for agri-businesses around the globe. The US Security and Exchange Commission has asked big food and agri-chains to regularly furnish reports on the impact of global warming on their busi-nesses, so that the investors on stock exchanges could make more informed decisions. If the agri-businesses start suf-fering, as fears are, the farmers and farm-ing would be fi rst to feel the heat, and it would be especially true for countries like Pakistan. It would rather be a double jeopardy for the farmers; they would directly be suffering on yields and indi-

rectly on businesses, but cumulative impact would be immense for farmers and agriculture.

According to researchers, these extreme weather events could cause a direct loss of two per cent to 30 per cent in agricultural yields – depending on the severity of the event in a particular year – and it would be especially true for cere-als (wheat, rice and maize).

Given Pakistan’s increasing population, the country needs an annual increase of 5-10 per cent in those cereals for its own food security, leave alone exports. This would be a Herculean task, given Pakistan’s archaic technological and farming practices.

In the last 10 years, the frequency of fl ash fl oods, extreme rains, severe droughts, shifting of monsoon season and inclusion of hitherto unknown phenome-non of pre-monsoon is altering Pakistan’s agriculture like never before. All these changes have been, or are being, docu-

mented by different federal, provincial and academic agencies. They need to form basis of planning for agriculture for the next few decades.

The agriculture pattern and practices, as we know them for the last few millen-nia, are bound to undergo changes because of weather factors. The world is trying to adjust to these new realities by measuring the rate of change, and then developing policy and technological responses to those changes. Pakistan can-not be an exception.

The researchers have suggested a few steps to mitigate the impact, and insist that until they are weaved into produc-tion policy, the country would be in for food and economic havoc.

They suggest that any effort to remodel cropping pattern must start with develop-ing new seeds that could withstand these extreme weather events. The world has developed technologies to introduce such traits in seeds and has been doing it with

better results. Pakistan can – and should – take the same route.

They also suggest some mitigating strategies – like reconsidering plant pop-ulation, which can make up for any yield losses to some extent. Like in case of rice, if Pakistan can increase its plant popula-tion from the current 80,000 to 120,000 per acre, it can brighten its yield chances by 50 per cent.

Advancing the date of nursery planting to reap benefi t of early monsoon is another suggested measure and improving man-agement practices for productivity enhancement by at least 15 per cent is yet another.

On the same pattern, all crops are bound to come under varying levels of pressures due to these changes. They also need to be studied under the same tem-perature benchmarking and possible extreme events.

For example, in case of Pakistan, impact assessment on cotton is equally important

for the fi nancial survival of the country. All academic and research institutions along with metrological experts need to be inducted in the exercise so that cli-mate forecasting and crop remodelling is done before it is too late.

The barani (rain-fed) areas, which, with over 2.2 million acres, constitute huge part of the Punjab agricultural mass, need special attention. The entire survival is on climate – natural supply of water and fair weather. Both are being threatened like never before. These areas are too important to be ignored because of their agricultural and social contribution to one of the poorest areas of the country.

All these points need to be weaved into a comprehensive policy, which should then be followed with all available politi-cal, fi nancial and administrative resources; otherwise, the risks are too huge and options are becoming increas-ingly limited.

Being ready is the key

NEED TO PLAN AHEAD: This road to somewhere may become road to nowhere if proper steps are not taken today to manage the future.



BY AHMAD F. KHAN

WWITH the rice (read basmati) crisis deepening each year and because of mounting domestic stocks, prices are crashing. The exporters

are unable, or in certain cases, unwilling, to increase exports. The federal government, on its part, is relying on political gimmickry – announcing and then forgetting a paltry subsidy package as farmers’ cries grow louder.

This year as well, paddy prices dropped by almost 50 per cent com-pared to the preceding year. The fed-eral government announced a relief package for basmati farmers – rang-ing between Rs5,000 and Rs7,000 per acre. The government decision, despite the passage of more than three months of its announcement, is yet to materialise, and probably, given the ground realities, never would. The crop has been harvested and no government department has any record of which farmers had sown basmati and who did not. The package, thus, has already lost its practicality.

But beyond this one-off handout lies the bigger question mark: would this money solve the farmers’ prob-lem? It will not. Especially, if consid-ered in the backdrop of the problem, its causes and its slow emergence.

This year’s price drop has not come out of the blue, but has built up slowly over the last few years. Its emergence had a number of reasons behind it, which include government policies, gross neglect of basmati rice, dropping exports, cartelisation of domestic market by a few big play-ers and ejection of farmers from the rice trade. Unless the government opens its aperture a bit and sees the bigger picture, the problem is unlikely to go away.

The basmati statistics make the problem and its causes clear. Pakistan has been producing around two million tonnes of basmati rice out of which one million tons are

consumed domestically and the rest are spared for export.

Till 2011, the exports were above that fi gure and the domestic stocks were cleared each year. From that year onwards, exports started drop-ping for a number of reasons – all those causes were pointed out and explained in the media regularly but were ignored by the policy-makers.

In 2012, exports dropped to 968,941 tonnes. In 2013, they went down to 630,035 tonnes – leaving a domestic glut of around 350,000 tonnes. Last year, they sustained the same trend and touched 733,860 tonnes – adding over 250,000 tonnes to the glut.

Right now, the country is holding a carry-over of roughly 600,000

Massive mishandlingin the power sector is said to have affectedthe entirechain – drying, husking and milling – byup to 50 per cent, making it hardfor the exporters to meet the demand even when they have orders in hand. tonnes. These, mind you, are

rough estimates because the stocks are spread over the entire supply and trade chain and no one knows for sure who is holding what.

As things stand today, a fresh crop of two million has arrived. The prices have dropped because there has been no disposal. The traders and exporters are over-whelmed – both fi nancially and logistically – by the carry-over stocks.

The immediate factor this sea-son was closure of one of the big-gest processing plants, which defaulted on bank payment and was taken over by the bank. Its default also refl ected deteriorat-ing rice trade conditions. With one of the latest processing plant out, the other units either got scared or saw an opportunity for making money, and went slower than nor-mal on procurement – creating even worse conditions where no one is buying basmati rice.

The farmers, on their part, don’t have the holding capacity and are only increasing the glut in the market, driving prices further down.

These conditions are currently defi ning the basmati market, where the government tried to intervene with a paltry package. The economic irrelevance of the offi cial package, if and when it materialises, can also be gauged from another angle.

With average yield around 30 maunds per acre and the prices fall-ing by almost Rs1,200 per maund – from Rs2,500 per maund to Rs1,300 per maund in some areas; the drop is more in other areas – each farm-ers, on average, has suffered a loss of Rs36,000 per acre.

What kind of sense the paltry sums of Rs5,000 to Rs7,000 would make to the farmers? It is not to belittle the importance of this money or the offi cial intensions to facilitate the farmers, but the argument is that this kind of approach and money would not solve the problem on a sustained basis.

Even if the government thinks that compensation to farmers is necessary, it should initiate a par-allel drive to ensure the disposal of the domestic glut even if it means concessional loans to trad-ers, and freight subsidy to export-ers.

Apart from that, it has to take the matter up with different gov-ernments at the state level and come up with trade pacts that facilitate the rice export. Luckily, the Iranian government has very recently allowed its private sector to import rice and the Iranian importers are currently in Pakistan for inspecting process-ing units to decide about possible imports.

The government needs to look for such kinds of opportunities instead of relying on monitory compensation packages. Such packages, at best, would be one-time activity whereas basmati rice production and sale is a perma-nent fi xture of the national agri-cultural life.

What makes rice, especially bas-mati, more unique, is the fact it is essentially an export crop. If exports stop, the entire produc-tion and trade cycle would fall apart. That is what is precisely happening now and forcing the government towards the promised compensatory package.

The Rice Exporters Association

of Pakistan (Reap) lists its own reason for drop in exports. It claims, with some measure of jus-tifi cation, that massive power load-shedding and gas manage-ment has hit its business like never before. As per Reap calcu-lations, power load-shedding has reduced the milling capacity by 50 per cent. Gas management has been exceptionally delaying the drying process. Both of them have very badly affected the entire chain – drying, husking and milling – by up to 50 per cent, making it hard for them to meet export orders even when they have them.

Two other factors listed by the Reap are high domestic prices and the loss of Iranian market, which was the biggest for Pakistani rice. They say that as long as Pakistani rice maintains a price of $200 per ton less than its Indian competitor, it keeps its share of the world mar-ket. Once the gap closes, the con-sumer preference shifts to Indian rice.

The government can, and should, compensate farmers because they are suffering because of its wrong policies. But for a permanent solution to the problem, it must take to task Trade Development Authority of Pakistan (TDAP), the Ministry of Commerce – incidentally, the fed-eral minister for commerce belong to the area, which is the biggest basmati producer in Asia – and all other allied department that have a role to play.

If India can jump from 1.2 mil-lion tonnes of export to 3.2 million tonnes in the last few years, there is no reason why Pakistani export-ers cannot catch up with their Indian counterparts.

SURPRISING: While Indian rice exports have jumped from 1.2 to 3.2 million tonnes per year, Pakistani rice of matching quality has lost market share.

The glut that no one wants





BY FRAZ AHMAD

IIT has been an exceptionally good year for cotton. The country is inching towards its target of 15.1 million bales. In fact, it had already improved its

previous record of 14 million bales by March 1 when Pakistan Cotton Ginners Association (PCGA) reported that 14.70 million bales had already arrived in its factories. This represents a growth of 10.33 per cent over the last year. Punjab has also surpassed its target of 10.5 million bales, and the reported arrival at ginning factories stood at around 10.60 million bales by the second week of March.

In the last one decade, the coun-try crossed 14 million bales only twice: in 2005 and 2012. This year it might have gone beyond 15 million bales by the time one reads these lines. It is indeed, a salutary effort where everyone involved in the pro-duction deserves appreciation.

Pakistan has produced better cotton in a year when overall acre-age in the world has dropped but consumption has risen by 0.2 per cent. Thus, the international scene might also help Pakistani business-men as well.

Another good omen has been Chinese policy of outsourcing value addition in textile; it is planning investments in Pakistani textile sector so that it may not have to import raw cotton. Both these fac-tors, along with healthy domestic production, should augur well for the country, textile business and farmers.

The current production also proves one simple factor; Pakistan, with little bit of careful planning, can achieve better results on the cotton front. This year’s better results came when the Punjab took a few basic steps like farmers’ edu-cation, some stress on increasing area under crop, provision of rela-tively better seed and pre-emptive planning to ensure results.

The help from the Mother Nature, of course, cannot be exaggerated more.

The Punjab had sown cotton on 5.6 million acres, up from 5.4 mil-lion last year. These additional 200,000 acres contributed a lot to the fi nal tally. The Punjab should know that out of its targeted six million acres, farmers on around 4.5 million acres have no choice but to go for cotton.

In its southern belt, which suffers perennial water shortages and sub-soil aquifer is brackish, farmers can neither sow sugarcane nor rice. They, thus, are left with no choice but to go for cotton. The farmers on the rest of the 1.5 million acres have a choice, and cotton has to compete for space. This year, Punjab was able convince the farmers for those additional 200,000 acres and is now reaping the benefi ts.

Apart from the improved acre-age, the plant population, on aver-age, grew by over 2,000 plants per acre – or almost 20 per cent more than last year. It was because of better germination of the seed. The farmers in the province normally keep seed from second picking.

The problem with second picking has traditionally been rains; dur-ing August and September, it nor-mally rains in the country, which had been spoiling the seed by mak-ing it wet. This year, the farmers and the seed-sellers were con-vinced that they need to take seed from the fi rst pick or from those areas, where it did not rain during the picking. It must have played some role in better germination of the seed.

The government has also allowed commercialisation of 16 new varie-ties of seed, which should promote usage of better seed and must yield results. The planners think that additional plant population indi-cates two very healthy trends.

Firstly, there are now better seeds available in the market, which have better germination rate: from up to 50 per cent to up to 70 per cent now. Secondly, the farmers, after repeated failures of crops, have grown more conscious of seed. Both these trends, if con-tinued, can make a huge difference for crop and national economy.

Apart from these factors, Mother Nature also remained kind this year. There has been no virus attack reported from any area of the province so far, which can only be welcomed. The climatic impact is making things hard for the farm-ers and planners though. The pest character is changing and chang-ing fast, which needs special atten-

tion of the planners.Two years ago, it was jassid attack

that threatened the crop. Next year, when the farmers and pesti-cides manufacturers were pre-pared for a jassid attack, the White Fly took its turn on the crop. The next year, it may be something else. Both these attacks should serve as warning signals to the planners about climatic effect changing pest character, and must force them to devise ways to deal with them as well.

Apart from these trends, there were a few events limited to this season. June was very hot, and huge shedding was reported during the month because boll formation was caught in very hot weather. It was not only boll-shedding, but drying as well.

To make matters worse, pro-longed dry spell created conditions that led to attack of white fl y, which damaged the early sown crop in huge pocket in the core cotton belt. The early sown crop also suffered up to 20 per cent on acreage. The farmers cannot afford such a long care of the crop and are almost jet-tisoning the early sowing.

Luckily, the early crop, which suffered because of heat, was only 13 per cent of the total area. Around 87 per cent crop was sown after May 15, which escaped the climatic impact. This crop should have crossed last year’s average of 23 maunds per acre because of long list of positive factors, and added to the tally.

Putting aside this year’s perfor-mance, which is a combination of human efforts pampered by the Mother Nature, it might not be so the next season. That is why it is essential to see what human efforts have borne fruit this time and need to be repeated and strengthened each year.

Two factors must be put on the top of human effort if Pakistan has to save its cotton crop, as the Indians have done next door. It must learn to deal with climate, which is now dictating its terms on the entire crop cycle, and it must cleanse its seed sector.

The cotton seed has been a prob-

lem area for Pakistan. Even cur-rently, over 100 varieties are doing the rounds in the market and no one knows where they have come from. But, they all are still doing business in the market and making the crop uncertain.

The government has already approved 16 varieties for commer-cialisation. Just recently, a meeting at the Ayud Research Centre con-sidered 44 more varieties for approval. They are in addition to over 50 varieties of unknown par-entage which are already sown in the fi eld. This seed chaos has been the weakest link of the cotton chain in Pakistan.

In a recent study, the researchers from Agriculture University, Faisalabad (AUF), had pointed out the extent and depth of cotton chaos in Pakistan. According to the research, the farmers in Punjab were growing 52 transgenic cotton varieties – commonly known as Bacillus thuringiensis (or Bt). Out of 52, only nine are offi cially approved at that point of time. Out of the collected samples from the farmers’ fi eld and seed-sellers, only 15 per cent were found to be offi cially approved varieties; it also means 85 per cent of them were of unknown parentage and origin. The conclusion drawn in the study further defi nes the depth of the cri-sis when it maintains that “quanti-tative expression analysis” showed only one per cent of them had the required amount of toxin level.

The unregulated sale of seed has increased the fi nancial lure: the seed of cotton is a multi-billion business in the name of science and technology. Incidentally, both these streams are missing in the seed, but the mere nomenclature has made its fi scal temptation irre-sistible for everyone. Its extent can be gauged from the crop spread and seed requirement.

Pakistan sows cotton on around eight million acres. In Punjab, some seeds are being sold at Rs1,000 per kilogramme in the name of new variety and every acre requires around fi ve kilogramme of seed. If one company or an indi-vidual can capture only 20 per cent

of it, the sale can top Rs1.5 billion. With this kind of fi nancial attrac-tion, everyone is trying to be part of the business.

Another factor that makes the business a source of windfall is the exit option. Since there is neither any registration nor regulation, one can simply abandon the sale at any point of time and disappear.

If 52 cotton varieties are still part of the fi eld, more than 10 went missing in the last 10 years because they could not perform beyond two to three years. They had a little fi nancial cameo and disappeared without a trace. No one knows about them; who brought them in, who sold them; and who made what at the cost of the farmers.

The frequency with which these new varieties have come to invade Pakistan is simply mind-boggling, both in agricultural and scientifi c and technological terms. Over 70 varieties have entered the business in the last 10 years, which, if aver-aged out, makes introduction of more than seven varieties a year.

On the one plank, the regularity of launch of new varieties left every one bewildered about their parent-age and performance in the fi eld. On the second plank, it destroyed whatever was left of the indigenous seed industry.

Farmers and offi cials know that a new seed variety takes decades to develop and market, as it involves time-consuming processes, which are: development of seed, its labo-ratory testing, multiplication, sale, sowing and expansion of business to make it a feasible business prop-osition.

No businessmen would bet on such a lengthy and expensive pro-posal if he knows that the next year fi ve more “totally unregulated, imported or smuggled” varieties riding offi cial backing would throw him out of the market.

None of these above-mentioned realities have lost either on the Punjab rulers or federal planners. They only need to be more sensi-tive and committed to sanitise the seed sector and help the country and its economy live up to its poten-tial.

Though there has been a record cotton crop this season — a result of human effort pampered by Mother Nature — there is a serious need to control certain elements standing in the way of a sustained momentum.

Good, but can be betterCASH CROP: The unregulated seed market, among others, is a major reason behind the fl uctuating fortunes faced by cotton growers and subsequently by the entire textile chain.


BY DR NOMAN AHMED

TTHE integral relationship of food, crops, cities and its dwellers is not new. For thousands of years, the cities acted as the locations for

consumption, transaction and storage of agricultural outputs. While many of these cities evolved through a natural process, several cities were planned and developed to promote agricultural production, processing of agro outputs, buying and selling of goods and extension of services to the farming community.

For example, the concept of ‘agro-villes’ was very popular in the devel-oping countries in the period after the Second World War in order to interpolate urban settlements of lim-ited size and scale in vast agricul-tural territories to support tillers of the soil and allied communities.

The agro-villes promoted and developed in Vietnam in 1960s played a useful role in mobilising rural communities with production processes, though often criticised as being a tool used by the US adminis-tration in the Vietnam confl ict.

But urban and peri-urban contexts have a much broader defi nition. The Food and Agriculture Organisation (FAO) defi nes it as an industry that produces and processes food and fuel, largely in response to the daily demand of consumers within cities and towns.

It is also termed an industry that responds to the nutritional demands of an urban location from within a designated territory with the use and re-use of that location’s resources.

It is interesting to note that the plan-ners for our cities were well aware of the vital need of agricultural and com-bination of processing industries and transaction spaces in the overall deter-mination of growth corridors and development interventions.

The case of Karachi Development Plan 1973-85 is an example. The plan-ning team was well aware of the fact that the population of the city shall expand due to intensifying migra-tions from the vast rural hinterland across the city and beyond.

It was also believed that much of this population shall belong to low-income groups that would face numerous social and economic prob-lems to ameliorate in the urban life of the city. According to the plan, in the immediate vicinity of Karachi there existed 259,600 acres of land possessing Class A soil, which was most appropriate to be utilised for agricultural use, and another 282,700 acres of Class B soil category with moderate to good potential for agri-culture.

The largest cultivable tracts of land have been the Gadap–Konkar locations comprising 67,000 acres, followed by Malir region comprising 43,000 acres of land. With some threshold developments, such as con-serving top soil strata for maintain-ing recharge of water and treating waste water on scientifi c grounds, this territory had the potential to

turn into the food basket for Karachi dwellers.

Other enterprises such as fruit and vegetable cultivation, livestock rear-ing and poultry had enormous growth potential as profi table enterprises. Sadly though, large-scale sand min-ing, development of large real estate ventures and haphazard physical development caused almost total depletion of this potential.

Lahore, the second largest city of Pakistan, has also shown decline in agricultural land use in its overall scheme of things. As per the Lahore Master Plan 2021, agricultural activ-ity within the metropolitan limits continued along river banks, in the east of cantonment, or a few isolated pockets. Much of this land is under transition.

A travel from Lahore to Kasur reveals that the precious agricultural land is constantly depleted by the rib-bon type informal urban physical development that runs all along the arterial road. Same is the situation along other outward connecting roads that emanate from Lahore to other towns.

Several myths related to urban agriculture need to be scientifi cally examined. The replacement of peri-urban land from agricultural use to real estate development is one men-tion. Much of such developments uti-lise land in a low-density low-rise manner.

The collective worth of agricul-tural and livestock suffers as such a development pattern eventually reduces gains to a small affl uent class, making the lives of thousands of urban poor in cities even more dif-fi cult.

It must be remembered that land is a precious asset which is fi nite, and cannot be recreated. It must be judi-ciously used for the well-being of larger number of people. It must not be sold and transacted as a saleable commodity in the market.

Urban agriculture has tremendous economic potential if practised in a scientifi c manner. There are many examples to learn from across the globe which can help our entrepre-neurs explore innovative ideas to build on.

In London, two entrepreneurs innovatively utilised shipping con-tainers by transforming them as fi sh farms and mix it with plantation for food. The designed vertical columns created a useful option for using small-scale urban spaces for commer-cial practice of aquaponics.

In Seattle, US, a food forest is being set up on a seven-acre plot. It invites the city dwellers to plant fruit trees, pumpkin patches and berry bushes for constant addition of food varieties

Agriculture is not an occupation of the hinterland population alone anymore. It is now a strategic enterprise that can be housed in multiple locations, including cities and towns.

through this designated parcel of land.

In North Carolina, a farming company has innovated to grow mushrooms, green vegetables and other species on a small plot with total area of 8,000 square feet. The space also possesses a small shop-ping space to attract and serve cus-tomers who are interested in green living.

New York, a city known for sky scrapers, has experimented with food production in multiple ways. In Brooklyn area of New York a fi rm has utilised 2.5 acres of roof-top space for agricultural produc-tion and succeeded in generating about 50,000 pounds of food every year. The managers of this venture believe in promoting agricultural production without increasing agricultural land footprint.

An agricultural technician in Sao Paolo transformed roof-tops into cultivable green fi eld trays by undertaking food production. He took measures to conserve the available water and make the most of it by using it in a weather-sensi-

tive format. Singapore, a city short on land,

has experimented with various options of vertical agriculture. Frame structures of green are added to the facades of the build-ing with room for proper-sized trays. These ventures generate adequate supplies for the local markets.

At the site of Berlin Wall, an urban farm has been generated in a territory which was predomi-nantly a rundown space compris-ing unused subway stops and graf-fi ti-ed concrete walls. This space is also used as an educational experi-ence to inform visitors about vari-ous attributes of farming.

All these examples make rele-vance to the Pakistani context in multiple ways. The issues of food security faced in Pakistan invite us to learn and apply as many out-of-the-box solutions as possible. Most of these solutions have been applied in various parts of the world with considerable success.

The fi rst step is to tap on the huge resource of urban sewage.

Cities in Pakistan end up wasting the waste water resource almost entirely. This water either ends up in the sea, causing further harm to the precious marine life, or into the canals, rivers and lakes which accounts for further damage to the mainstream agriculture and water supply to the cities.

If the sewage water is treated to the level where it could be used for urban farming, many benefi ts can be derived from it. The sludge waste can be used as worthwhile fertiliser if the right approaches of treatment are put to use.

The treated water can be used for multiple formats of farming. The treatment plants can be used as farming complexes to be used for the purpose of strategising the food production. Our cities have many wastelands available in the lengths and breadths of the city boundaries.

Many of them can become tar-geted locations for the promotion of food production and agricul-tural demonstration farms. It is vital to sensitise our young genera-tions about the relationship of agriculture with civilised and healthy life to help promote a bal-anced society.

Urban agriculture can be used as a tool for poverty alleviation in urban locations. Most of our cities are occupied by urban poor migrants who could be absorbed in this most environmentally viable enterprise.

And making the cities capable of shoring up food supplies can help reduce terrorism in the cities. Idle and unemployed population often becomes the instant fodder for anti-social activities. These young folks can be put to use in multiple avenues of productive enterprises and consequent generation of live-lihoods.

It must be noted that agriculture is not an occupation of the hinter-land population alone. It is now a strategic enterprise that can be housed in multiple locations, including cities and towns.

LOGISTICS: If nothing else, low transportation cost alone is a key factor in managing food requirements of cities.

Urban food baskets





BY KHAWAJA AMER

DDESPITE the growing trend of migration from villages to cities, 70 per cent of our population still lives in the rural areas and about 60 per

cent of them are engaged in farming. In fact, the real Pakistan lives in villages and literally earns bread and butter by growing crops and rearing cattle.

So there can be no doubt that Pakistan is essentially an agricul-ture country and its economy largely depends on bumper harvest. Though an agrarian country, the Agricultural sector of Pakistan’s economy, unfor-tunately, is still being neglected and no concrete plan has been made to educate the farmers about the mod-ern techniques and scientifi c meth-ods to improve the quality and quan-tity of the yield.

On the other hand they are deprived of basic infrastructure facilities, provision of credit services, and agriculture research opportuni-ties. Attention is therefore, needed to facilitate the Agriculture sector in different dimensions. Moreover, it also requires corrective measures and proper attention by both the pub-lic and the private sectors. Here it is pertinent to mention that our agricul-tural universities are doing a good job, but the benefi ts of their research and knowledge are not being effec-tively transferred to the actual farmer, and, as such, the per acre yield is still very low compared to other developing countries of the world.

It has become ever more evident in the last few decades that the idea of both economists and policy-makers

regarding the role of agriculture in economic development has under-gone a drastic change. Whereas in the past agriculture was often con-sidered the inactive partner in the development process, it is now accepted as an active and equal part-ner with the Industrial sector.

As the dual-economy models became more sophisticated and prac-tical it was increasingly recognised that the functions which the Agricultural and Industrial sectors are performing for overall growth of the national economy are totally interdependent.

On the one hand, the Agricultural sector had to release resources for the Industrial sector, which in turn had to be capable of absorbing them. Recognition of this active interde-pendence was a large step forward

As farmers are not able to generate enough income, they prefer to go to urban centres in search of employment. The only way to stop them from forced migration is to promote agri-based industrial zones in rural areas.

Agro-industrialisation may work

which resulted not only in the cre-ation of a large number of agricul-tural institutes throughout the world, but brought a revolution in the farming techniques.

The knowledge derived from years of experiments with seeds, fertilisers, and other inputs by universities was applied on a larger scale and more scientifi -cally by the private sector. The promise of a ‘yield explosion’ cre-ated by new ‘miracle seeds’ com-bined with other inputs gave an overwhelming boost to this sector.

Our economic planners may benefi t from the Japanese pattern of modernising traditional agri-culture which was the subject of the Ohkawa-Johnston study. The major theme of the paper is that the Japanese model is transfer-able to other Asian countries in part, because of the similarities in a number of initial conditions pre-vailing in Asia today to those that existed in Japan at the beginning of its modernisation process – with one major difference: the popula-tion explosion that Japan did not have to face.

According to the report, there are three basic characteristics of the Japanese model: one, agricul-tural output grew within an unchanged small-scale farming system; two, the increased pro-ductivity was associated with the use of improved varieties, fer-tilisers, and other current inputs; and, thirdly, agriculture and industry moved forward together in a process of ‘concurrent’ growth.

We will have to reorganise our Agriculture sector, because owing to old methods of cultivation and harvesting, Pakistan has low yield per acre. Advanced countries’ per acre yield is four times more than ours. It is all the more necessary to introduce productivity enhance-ment programme to adjust sup-port price on various crops. With serious efforts we can even do away with subsidiary on our corps to support the farmers.

According to the Food and Agriculture Organisation (FAO) of the United States, Pakistan is the second most populated coun-try in the Muslim world and 6th most populated country of the world. Agriculture, therefore, is

playing a vital role in order to carry forward the burden such a vast population.

Wheat is the staple food of Pakistan and fortunately is the largely cultivated national crop. Had Pakistan not been an agricul-ture-oriented country, the country would have had to import all the food items in order to maintain such a large population. Thus agri-culture is performing a double role in Pakistan’s development by feed-ing such a large population and supporting economic growth by restricting imports of food items.

On the other hand, agriculture is the major source of foreign exchange income for the country. The export of rice, cotton, cot-ton-based products etc. bring about 65 per cent of our total earn-ings. Hence the importance of this sector cannot be undermined and, accordingly, there is a need to bring revolutionary changes to maximise the per acre yield of our major crops.

Pakistan has about 80 million hectors based on agriculture, out of which only 22 million hectors are under cultivation – 18 million through the irrigation system, and four million on rain (baranee).

Pakistan has a great advantage in the region with its large area of cultivable wasteland available and a stable potential for the growth based on agriculture. The local agricultural market of Pakistan is increasing at the rate of 29 per cent annually with an international competitive cost of manufacturing for all major crops, vegetables and fruits at very cheap transportation cost, and interlinked routes to Middle East and Afghanistan.

This sector employs 44 per cent of the national labour force and 70 per cent of country’s export is based on agriculture and agri-pro-cessed products. There is a tre-mendous export potential for Pakistani fruits and vegetables, but the lack of infrastructure for post-harvest treatments and inef-fi cient transport facilities result in inconsistent quality and a shorter shelf life of fruit.

Every year a sizeable portion – as high as 30 to 40 per cent in some cases – of fruits and vegetable yield is wasted and promising

export markets remain untapped. These conditions deprive farmers of the profi t margins attainable through sea shipment and leave an opportunity for substantial improvement in industry.

There are some very useful his-torical facts which may help the economic planners. According to a report published in the late 1990s, the economic importance of agri-culture has “declined since inde-pendence when its share of GDP was around 53 per cent”. Following the poor harvest of 1993, the gov-ernment introduced agriculture assistance policies, including increased support prices for many agricultural commodities and expanded availability of agricul-tural credit.

From 1993 to 1997, real growth in the Agricultural sector aver-aged 5.7 per cent, but has since declined to about four per cent. Agricultural reforms, including increased wheat and oilseed pro-duction, play a central role in the government’s economic reform package, said the report. Outdated irrigation practices have led to ineffi cient water usage in Pakistan; 25 per cent of the water withdrawn for use in the Agricultural sector is lost through leakages and line losses in the canals, and only a limited amount of the remaining water is actually absorbed and used by the crops due to “poor soil texture and uneven fi elds”.

There is no denying the fact that our villages have not developed fast. Agriculture is still by and large primitive and offers only seasonal employment. With the number of persons in the family increasing generation after gener-ation, the average size of land-holdings has decreased and per acre yield has not increased.

Therefore, there is a need to promote rural industrialisation for the development of the rural economy to optimise the rural eco-nomic structure, improve living standards of villagers and make important contributions to the sta-bility and development of the economy and society in the coun-try.

Farmers are not able to generate enough income to sustain their families. So they prefer to go to urban centres – mostly Karachi – to fi nd jobs. They only way to stop them from forced migration is to promote agri-based industrial zones in our villages.

Frankly speaking the idea behind developing an agro-indus-trial sector in Pakistan is to rede-sign policies for promoting produc-tivity in deferent sectors of the economy. The plan should be to use locally available raw material together with developing high-ly-skilled manpower to address the development needs of such areas through rapid industrialisation with community participation.

The value-added industrial pro-cessing facilities that will be set up in rural areas will hopefully have a signifi cant impact on the performance of the Agricultural sector through reducing wastage, increasing profi ts and, above all, boosting exports of value added agri-products.

A THOUGHT: Lush though they are, agricultural fi elds alone can’t keep Rural Pakistan employed and happy.


BY DR NOMAN AHMED

MALPRACTICES reign supreme in our various segments of social and economic life. Water management in our farms is

no exception. Segments in national media recently reported that poor farmers in the southern Sindh district of Badin were forced to appeal to the government to save them from continuous water thefts. Lengths of canals that service a large number of farmlands have reportedly become sites of what appears to be organised mismanagement.

It is reported that illegal pumps have been used to siphon away the usual water allocations to powerful landlords beyond their legitimate claims. But this is not the only instance of such a kind. Losses and thefts in irrigation water are com-mon place all across the country.

In most of the cases, the rich and the powerful are able to coerce the irrigation offi cials to bend the fl ows in favour of their fi elds or storage spaces.

There are several myths and assumptions that surround the water availability in Pakistan. It is believed that the introduction of futuristic technologies and initiatives for water management alone can help address the various problems commonly observed in our Agriculture sector. Many studies by international and national agencies, such as Global Water Partnership, have highlighted the urgent need to address the water resource development and manage-ment issues on a top priority basis. This scenario needs a dispassionate and objective review.

The growth in agricultural produc-tion was recorded as 2.1 per cent dur-ing 2013-14, as per Pakistan Economic Survey. Many constraints were also faced in the process. Heavy rains in Sindh and Punjab damaged the crops, infrastructure and other farming assets.

The unprecedented interruptions caused in the water supply to farm-lands were another general observa-tion.

It is also unclear as to how the gov-ernment is planning to stem the highly rampant mismanagement and corruption in the implementation of projects, which becomes a major hur-dle in the full realisation of invest-ment benefi ts in the sector.

Information received from the var-ious government sources suggests that the macro-scale water availabil-ity shall continue to face stress in the near future. Estimated availability of water in the country is 142 million acre feet (MAF).

In 2013-14 fi scal, 98 MAF was available from surface water resource and 44 MAF from ground water resources. The country has over 200,000 tubewells installed in various locations with potential of water re-charge. One-fourth of these tube wells run on electricity while the remaining utilise diesel as the main fuel. The past few years have witnessed an exponential rise in the tariffs and rates of both the inputs.

It is believed that many small- and medium-scale farmers were not able to realise the full potential of ground-water as they could not afford to run

the tubewells for the required time. It is reported that about two MAF water could not be harnessed due to this shortcoming alone.

The recent reduction in tariffs of petroleum products caused some relief to farmers during the current fi nancial year. While one may ques-tion the veracity of statistics or the mechanism of information collec-tion, it is but obvious that water resource utilisation is a core issue that needs a holistic response from all the stakeholders.

Water distribution and apportion-ment have many irregularities and ineffi ciencies commonly observed at inter-provincial and inter regional levels. The complaints of tail-end farmers are rising at a rapid pace regarding unavailability of suffi -cient water during relevant timings. Water-logging and salinity is contin-uously rising due to poor farm man-agement and inappropriate drainage infrastructure. A recent threat expe-rienced in the central part of the country is the increase of sewage water discharges into rivers.

Many of these discharges contain heavy metals and other toxic ingredi-ents that render irreparable damage upon the farm lands. The case of Ravi is an example that has shown high escalation in pollution. Precious soil thus loses its productivity. Reports warn that southern Punjab and Sindh may lose productivity due to water stress to the tune of 15-20 per cent per annum. The crop of wheat and rice shall be greatly impacted.

While water scarcity is an outcome of climate change, the unpredictable pattern of seasonal and non-seasonal inundations also impact agriculture, along with other sectors of produc-tion. This aspect has to be thoroughly researched. Land, its utilisation and distribution for various purposes makes the foremost point for focussed investigation and analysis.

Successive regimes have distrib-uted land in the fl ood-prone loca-tions to political favourites. Additionally, rampant encroach-ments and unauthorised occupation of Sailaba (fl ood-impacted) lands have caused localised damage dur-ing the past two fl oods due to unprec-edented changes in the fl ood paths.

Construction of local and national

It is but obvious that effective utilisation of water resources is a core issue on which all stakeholders need to be on the same page. In the absence of such a consensus, it is no wonder that farmers arenot able to produce at their optimum levels.

Fighting the water stress

infrastructure with ‘fl ood-insensi-tive’ designs has not only dam-aged the said infrastructure, but also the adjoining areas. And large-scale deforestation at differ-ent terrains has caused an over-whelming destruction.

The Khyber Pakhtunkhwa gov-ernment has already warned the so-called timber mafi a, which ahs been very active in the province, to refrain from unauthorised cut-ting of trees. Budgetary alloca-tions are also done towards the establishment cost of this impor-tant dimension of governance.

The fear remains that they will be ill-spent in the absence of an effective plan. Nepotism, corrup-tion and ad-hocism are the usual

predicaments. It is only logical that forest management works are undertaken in an integrated man-ner under sound planning to ensure long-term performance. Techniques of simulation and other scientifi c tools can make the planning process articulate and free of errors.

The narrated facts are alarming enough to take measures on an emergency footing. And many of these measures have been debated threadbare on a number of occa-sions. The progress on the large- and medium-scale dam projects should be monitored very strictly.

Diamer Bhasa Dam must be completed within the stipulated timeframe. Many experts still

believe that the Kalabagh Dam project should be re-negotiated with the provinces. If political guarantees and constitutional arrangements are made with con-sensus, the project can still become a reality. This dam can be discussed with lower riparian provinces by launching support-ive irrigation schemes, inclusion of more non-arable lands into cul-tivable areas and repair and replacement of worn out irrigation infrastructure.

If Pakistan develops increased capacity for water storage, it will bolster the lifeline for the teem-ing millions who are added to the population every year without any effective control. The concept and application of piped water system for irrigation at the tertiary level must be introduced. When the open water distribution canals shall be replaced by the box-cul-vert-cum-piping system, effi -ciency shall be greatly ensured on many counts.

The water distribution perfor-mance shall be enhanced due to control on evaporation. Monitoring of water quantities and apportion-ment shall become accurate. The predicaments of tail-end farmers must be dealt with as a separate issue.

Creation of emergency water storage facilities, review of crop choices and farming techniques and the institutions of a confl ict resolution mechanism are also few of the options. The govern-ment will do well to prepare a con-sensus water vision, plan and pro-gramme for the next decade in order to organise the long-, medium- and short-term steps in a coordinated manner.

GRAPHIC EVIDENCE: The sight above is good enough to attract the eye of the policy-makers.


BY FRAZ KHAN

PPLANT protection policies that save crops from pests, ensure healthy diet for plants, and keep them environment-friendly remain the weakest

link in Pakistan’s agricultural regime. Though the country has been a signatory to the International Plant Protection Convention for the last many decades, its own law – formulated way back in 1971, the Agriculture Pesticide Ordinance – has since been left to rot in the statue books.

Being 44-years-old, the law has naturally not taken into account all agro-chemical changes around the world that have cropped up in the last over four decades. On the other hand, the climatic changes and con-tinued mutation and changing pest characters have changed the very concept of agriculture and its prac-tices around the globe. Pakistan, on its part, is trying to regulate these complicated issues through an archaic law.

The federal government tried to update the law in 2008, but its effort remained fruitless for one reason or another. During that year, the fed-eral government sought suggestions from the federating units on up-gra-dation of the law. The process was still going on when the 18th Amendment threw the spanner in the works – devolving the sector to the provinces and, theoretically speaking, stripping the federation of its power to enact such laws.

Punjab responded quickly and badly. It got the same old ordinance passed from its assembly in 2012 as its own new law and tried to create some implementation infrastruc-ture. Meanwhile, the federal govern-ment created the Ministry for Food Security and Research, which told Punjab to stop the implementation process. It maintained, with some measure of justifi cation, that plant protection should remain a federal subject. Now, Punjab has the law, but

its implementation is suspended due to federal intervention.

The federal ministry is sitting on the same old law, putting the entire plant protection effort in jeopardy. It neither has the infrastructure, nor political backing, nor scientifi c base, nor manpower to perform a gigantic task that it has taken upon itself.

The spread and formalisation of international trade in agricultural and food items led to an elaborate regime of plant protection laws. Created in 1951, the International Plant Protection Convention is pri-marily focused on plants and plant products moving in international trade, but it also covers research materials, biological control organ-isms, germ-plasm banks, contain-ment facilities, food aid, emergency aid and anything else – including containers, packaging materials, soil, vehicles, vessels and machinery – that causes spread of pest in inter-national trade.

In response to the international convention, which, by 2013, had 178 signatories, individual states created their own setups, which were basi-cally meant to keep pest record, strengthen quarantine laws to stop pest invasions and save exports by keep them pest free.

Almost all states created those laws and infrastructures to implement them as strictly as possible and also kept them up-dated as pest character changed because of climatic change and resistance against pesticides.

Pakistan, somehow, remains an exception to this international rule, with a law that has lost its utility long before and no one has bothered to amend it. It is the absence of this law that has failed Pakistan to cleanse its supply chains, and its food, fruit and vegetables regularly face prob-

Passed 44 years ago, the law naturally does not take into account the agro-chemical, climatic andpest character changes that have transformed the very concept of agriculture.

Old laws; new realitieslems and ban even in countries like Russia where quarantine laws are not as strict as those in high-end markets of Europe.

Unfortunately, Pakistan’s plant protection efforts have left much to be desired. It has neither been able to create a policy for domestic production of pesticides, putting the entire dependence on import. In case of import, it has policy lacunae, which are exploited to the hilt by unscrupulous elements within the business chain.

Its import regime has encour-aged part-time investors into the business, who are neither inter-ested in long-term business nor quality of the product. They are there to make a windfall profi t and disappear. The Department of Plant protection (DPP), which should have been checking qual-ity of import, is more an extension of the Federal Board of Revenue – more concerned with collection of taxes and duties rather than quality of the product.

The changing pest scene within Pakistan is a task gigantic enough to merit expansion and strength-ening of this department at what-ever cost possible.

The quarantine infrastructure is almost non-existent at ports and borders posts. Its minor presence at Wagha Border – with India, near Lahore – is not suffi cient to check even fi ve per cent of imports. With a staff of half-a-dozen, the DPP is supposed to check more than 800 truck-loads of fruits and vegetable in six working hours.

Thus, no one knows what kind of pests these imports carry and destroy Pakistan’s domestic mar-ket. Import of infected Australian sheep was a full-fl edged scandal and so are regular warnings by countries around the world to exporters against pests. All these events point at the weakness of the national plant protection regime.

Regulation of agro-chemicals within the country is another weak spot. Punjab alone registers thousands of FIRs against spuri-ous drugs and fake pesticides every year. Naturally, everything happening within the country cannot be laid at the door of DPP, because the weakening writ of the government also plays its role. However, it can also be asked that when registration and de-registra-tion of pesticides is the primary task of the plant protection setup, how many drugs or dealers it has de-registered over quality issues in the last 10 years. This weakness of the government, as refl ected in the plant protection regime, lies at the heart of the problem. Pakistan still maintains the high-est pest inventory in the region, even more than Afghanistan, and all because of weak plant protec-tion regime.

The work of DPP is expected to multiply with Pakistan working on the China Trade Corridor, road links to Central Asia and opening of road trade in South Asia. It would only be sustained if trade from these routes is considered safe.

As being done by the IPPC, the DPP would soon be checking pack-ing material and massive fl ow of containers through its border. The

department needs to be strength-ened with these objectives in mind. That is why most of the experts in the fi eld now plead for more investment in the area, cre-ating both human and infrastruc-tural resources. Otherwise, all these trade dreams could come down crashing.

The federal government is aided by the provincial governments, especially Punjab, and they all need to join hands because of the enormity of the task, and create legal, human and infrastructural setup to deal with the issue.

The natural endowment (agri-cultural base) and development

dream (turning itself into the hub of transit trade) necessitate such a regime. If exports from Pakistan are not safe, as repeated warnings and bans from different countries of the world suggest, Pakistan would slowly lose markets – both in high- and low-end segments – for its own products.

In fact, it is already losing, with rice and wheat being two exam-ples where it has huge surplus stuck in the country, and no for-eign buyers. When it cannot ensure safe trade through its bor-ders, it would lose trust in it even as a handler of food and trade items.

The ‘pests’ in pesticides marketBY AHMAD FRAZ

TTHE national pesticides market is in disarray thanks mainly to the policy and infrastructural vacuum in it operations. In fact, the policy that rules the market right now is counter-productive. It is rather slowly killing the sector instead of encouraging it. The pesticide manufacturers say the

government policies are creating an environment where it is exceedingly diffi cult for them to import and manufacture quality pesticides and meet the demand of the market.

They list a number of factors that hinder their business. For example, there is simply no policy for the local manufacturing of pesticides. The Department of Plant Protection (DPP) is yet to for-mulate such a policy. As such, the entire focus has shifted to imports. On that front, the DPP simply misses the required infra-structure to check what is coming in the country.

The imposition of general sales tax (GST) did massive damage to imports which are decreasing ever since the tax was imposed. The offi cial fi gures also explain the situation to some extent.

According to fi gures released by the Pakistan Bureau of Statistics, pesticide imports dropped by a staggering 35 per cent between 2010 and 2012. Though the fi gures for 2013-14 are still being fi nal-ised, sectoral experts and importers claim that they would not be any different.

According to projections by the Pesticides Manufacturers Association (PMA), imports should have been around Rs22 billion for the year 2013-14 had some factors not hampered the business. However, these imports are now only 35 per cent of their projec-tions, affecting both their business and offi cial collections.

The business side-effects of the GST are even lethal for the indus-try. As duties grow on import of raw chemicals, they only encourage elements who do not have stakes in the business but know how to trick the import regulations and make money. Currently, most of the imports have gone in the hands of these investors. Most of them were already in the import (of any kind) business and know the nitty-gritty of the process. They import pesticides in the name of other thinly-taxed products, ranging between six and seven per cent duties against 17 per cent patent pesticides. This difference of 10 per cent is huge if taken in the market price perspective.

On the one hand, it discourages local manufacturing and pushes those already in the business out. On the other hand, there is no quality control on imports and products manufactured with them.

These investors smuggle products because they know how to manage these so-called imports by skirting the system at ports and customs. Once they bring the products in the country, they cannot be checked: they are neither into the manufacturing business where their manufactured products can be checked for quality nor their warehouses are registered.

They mint money and get out of the entire chain with this one step. Their one-time activity is their strength that weakens the rest of the supply chain. Slowly, the business is slipping into the hands that neither have interest in quality assurance mechanism nor answerable to the market. Currently, even multinationals are los-ing heavily on their sales because of these factors, as their sale sheets suggest; their sales are down by 35 to 40 per cent.

This is a situation where everyone (the government, the busi-nesses and the farmers) is a loser, except a few illegal importers. This needs to be corrected immediately. The government needs to sit with the industry and fi nd a solution that increases its income, does not kill the businesses, brings transparency and quality in the supply chain, and ensures smooth supplies to farmers. Such a solu-tion may not be hard to fi nd.


BY A.F. KHAN

TTHE poultry industry is in the throes of trouble, or so it says. For the last about one year, the prices of chicken meat have fallen to a level, which,

according to the industry, does not even recover the cost of production, leave alone a reasonable profi t margin.

As the industry estimates, each kilogramme of meat costs it Rs135 at the farm, whereas, on average, the prices have not crossed even Rs100 per kilogramme – a straight loss of almost 30 per cent. Because of this factor, almost 35 per cent farmers have already opted out, and more are on their way. If not rescued now, the situation can worsen at two levels: production declining as more farm-ers leave, and prices rising due to supply squeeze.

The poultry industry has seen an enigmatic development in Pakistan during the last decade or so. On the one hand, it has grown massively dur-ing this period. After being almost decimated by the bird fl u threat by the turn of the century, its annual production has now touched 1.2 bil-lion birds a year, or 2.4 billion kilo-gramme of meat that meets 40 per cent of national protein require-ments.

The egg production has crept closer to 10 billion eggs per annum. The share of poultry has risen to a quar-ter of national meat consumption. With total investment topping $3.5 billion, its turnover still averages around Rs40 billion each year with an employment of 1.5 million people in the production and sales chain.

But, on the other hand, the indus-try feels itself in deep trouble where it is literally begging for a rescue package by the government to keep its business running. Its leaders regu-larly hold meetings with offi cials of the government and conduct press briefi ngs to convince the policy-mak-ers and the media on the need of sav-ing the industry from impending dis-aster.

The package it pleads for includes a range of steps that only an industry on the precipice can ask for. They

include concessionary loans for farm-ers to bring them back into business and deferring loan payments for those who are surviving on the edge, freight subsidy for exports and inter-vention from the government in price mechanism – a fi xed minimum price, so that it does not fall over the edge.

How to connect both these contra-dictory ends? No one really knows. In fact, the industry has shot itself in the foot by going slow on three cru-cial areas of business. It has not developed any database of what is required, and when. It has not been able to expand processing, which can solidify the basis it created through better genetics of stock and world class infrastructure. It has almost done nothing for consumers’ aware-

The share of poultry hasrisen to a quarter of national meat consumption.Yet theindustry routinely presses the governmentfor a rescue package.

Thriving in deep trouble!

BY KHAWAJA AMER

FFISCAL policy is an important apparatus for managing the economy and, therefore, it is necessary that every

decision in this regard be made very carefully after reviewing the ground realities and taking all the relevant stakeholders on board.

Unilateral decisions, ignoring these two factors, generally lead to chaos and confusion resulting in economic mess. Our domestic poultry industry is an instance. A direct victim of a ’very gener-ous’ import policy, this sector of our economy, instead of getting government protection, has been deprived of even a level playing fi eld.

Whether it’s a case of fi scal anomaly or lack of understanding about the problems of the indus-try, local entrepreneurs are fi ght-ing the battle of survival. Surprisingly enough, Import Duty ranging from fi ve per cent to 30 per cent plus Sales Tax has been levied on ingredients used in locally-produced value added chicken; while fi nished poultry products can be imported free under the Free Trade Agreement (FTA) from Malaysia and at 16 per cent Import Duty from China.

Naturally, most of those involved in the business of value added poultry products stopped local production and started importing fully fi nished prod-ucts from Malaysia under their brand name. As a result, seven poultry processing plants could not sustain unfair competition and fi nally had to wind up.

According to Senior Vice-Chairman of the Pakistan Poultry Association (PPA) Khalil Sattar, the outcome of this phe-nomenon is exceedingly demor-alising. Explaining the impact through a simple formula, he said, “A 40-feet container of 25 tons of chicken breast meat will adversely affect local production of 183,480 broilers, 2,042 parent breeders and 830,000 kilo-grammes of poultry feed, which means a blow of Rs58.71 million to the GDP and, above all, slaughter of 36,000 man-hours of the bread-earners. Therefore, if imports are not checked forth-with, the entire poultry industry in general and the emerging poultry sector in particular will suffer a serious setback.”

Pakistan is the 11th biggest chicken-producing country, but strangely enough less than two per cent of the total poultry is being processed whereas the other 10 countries process 90 to 99 per cent.

Highlighting the problems of the poultry processors, Mr Sattar said, “We have to pay heavy labour costs, hefty overheads, huge electricity and gas bills, taxes etc. The sum works out to be Rs20 to Rs40 per kilogramme depending on the product. On the other hand, cost to the unrec-ognised live bird and street-side slaughter wet market is not more than Rs4 per kilogramme. The unorganised sector pays no taxes at all whereas the organised sec-tor pays all kinds of taxes and produces safe and healthy prod-ucts. Such gross discrimination has made the survival of the gen-uine poultry industry a bit too diffi cult.”

The modern chicken industry all over the world produces nutri-tious, wholesome, high-quality products that are more afforda-ble. Much of the success of the industry can be attributed to a more effi cient structural organi-sation, improved production and processing technologies, and a continuing responsiveness to consumer demands.

Despite being fully aware of the fact, the government, instead of encouraging and supporting the organised poultry sector to fl ourish, has withdrawn zero rat-ing status for value-added, pro-cessed, frozen and packed poul-try products. As a result, the prices have gone up.

Poultry farming is now consid-ered to be one of the most essen-tial and dynamic component of the worldwide food production. The poultry culture is seemingly in the phase of rapid expansion. The broiler and chicken farms are all a part of this phenomenal expansion. The poultry farms in Pakistan have made a signifi cant contribution towards the enhancement of food production strategies and measures. There is no denying the fact that poul-try farming is of extreme and undeniable importance to the country, especially in terms of offering better foods and animal proteins in a more accessible and cheaper way.

Mr Sattar is of the view that currently there are only two organised poultry processors in the country processing less than two per cent of the total chicken

produced in the country. These plants are making endeavours against the heavy odds of an une-ven level playing fi eld, and, thus, need full government support. Only a successful poultry pro-cessing sector could stabilise the current rollercoaster price of poultry and build up an exporta-ble surplus.

Emphasising his point rather, he said, “Chicken processing should be treated at par with milk processing, because both chicken and milk are food prod-ucts and provide protein and nourishment for the health of the nation. If a mother wants to give her child a chicken sandwich, she is required to pay an additional cost in the form of Sales Tax on hygienically processed chicken products, whereas, if she chooses to provide a cheese sandwich, she doesn’t have to pay that kind of tax. There is no acceptable rea-son behind this discrimination. The withdrawal of zero rating, therefore, clearly gives an unfair advantage to the value-added milk product over chicken prod-ucts.”

Comparing the policy with India he said that when a multi-national fast food chain in India started importing processed chicken and value-added chicken products, the govern-ment moved with two objectives in mind; fi rst, to protect its small farmers through the processing sector, and, second, to maintain a favourable balance of trade by saving on foreign exchange expenditure.

They levied 100 per cent import duty which helped in pro-tecting its local farmers as they were the main producers of the raw material and which also helped conserve foreign exchange. We, on the other hand, reduced import duty from 50 to 25 per cent and then signed FTA allowing imports from China at 16 per cent Import Duty and duty-free from Malaysia, hitting the local entrepreneurs below the belt.

To strike a balance, he argues, the import duty on value-added chicken products needs to be increased at least back to 50 per cent from the current 25 per cent. The government has already fi led under WTO regime, a bonded rate of duty of 100 per cent. As such, there is no bar on the government to increase it to 50 per cent in order to product its emerging poultry processing sector.

A case of discrimination?

ness in the last one decade. All these failures have come

back to haunt the industry now and it does not really know how to deal with them. In times of uncer-tainty, it has fallen back on time-tested formula of asking for offi -cial handouts, which may gloss over its inherent weaknesses, but would certainly not remove them or help the industry in the long run.

Currently, the industry does not have any data to know what to pro-duce and when to produce it. It only has vague ideas of seasonal variations in demand, but still cannot adjust, even to those minor changes that seasonal variations bring.

Its farmers keep producing blindly, only to know the glut and its extent when prices start falling in the market. Perishable nature of their produce only robs them of any space for manoeuvrability. That is precisely what is happen-ing in the last few months. The farmers are throwing their pro-duce in the market where demand has decreased due to a variety of factors.

Why the industry has not been able to build up such a databank is something no one knows. The industry does admit failures, but is still not ready to build one. In the absence of such a databank, it operates in a vacuum that regu-larly fails it.

The processing industry is almost non-exiting; only three to four per cent of total production is processed with the rest sold on the wet market. Selling perishable commodity in an uncertain mar-ket entails some inherent prob-lems, which only magnify in times of stress, like the current one.

There are countries where one can sell only processed chicken meat, with all hygiene and safety measures in place. In Pakistan, it has been the biggest failure of the industry.

Granted that the processing industry is highly capital-inten-sive, but it is still doable and the

world has done it. Why the indus-try in Pakistan has not been able to do it? This needs to be explained both by the industry and the pol-icy-makers. The industry has been claiming for the last few years that a few new plants were being set up. But they have not come up yet.

The government, on its part, also needs to come up with a policy on processing, where it can pick part of interest payments so that some more plants crop up to bring some stability in the market. They are necessary not only for the domes-tic market, but for export as well.

Being highly perishable, the birds cannot be exported alive. They cannot even be transported within the country and thus keep the market highly vulnerable. Such plants would also help the industry claim some share in the $600 billion plus market of halal meat in the world.

Finally, the industry needs to invest in consumers’ awareness plan. There have been reports of broiler chicken meat carrying some hormones that are harmful to human health, especially to girls of younger age; they are accused of causing early puberty and ovarian cyst. Though the industry denies them out of hand, it has not been able dispel the impression.

It claims that all the parent and grand-parent stock came from the highly health-conscious West, and so did the feed formulae. The West also consumes up to 65 kilo-grammes of chicken meat against Pakistan’s six kilogramme. How it can be accused of such atrocious things, the industry wonders.

But fears about chicken meat in Pakistan, especially in the upper middle class, are assuming almost a taboo proportion. The industry is still to move with any concrete plan to counter these allegation, if entire untrue.

The industry may be justifi ed in highlighting its current busi-ness and fi nancial woes, but its argument for government inter-vention for price stability is self-

defeating. Each time the manage-ment moves to check extraordi-nary chicken rates, the industry shouts at the rooftop against the intervention. How could now it invite the government to inter-vene on its behalf?

If the government does so now, how would the industry cry foul the next time offi cialdom moves to curb rising prices? The industry needs to assess the long-term impact of the argument it is mak-ing now for short-term gains.

The industry has avoided exports of the processed chicken meat because it is making huge profi ts in the domestic market that no other market in the world offers. It is a fact that its cost of production is slightly higher than the world because of rising cost of inputs – wheat prices, power crises and rising labour costs. But it is also a fact that it has not invested in increasing effi ciency of the industry, and has relied more on political manoeuvrings to keep the domestic market manipulated rather than competing with the world in open market.

Apart from pleading for a rescue package like other industries, sugar for example, it should try to strengthen its own weak links: ineffi ciencies, consumer aware-ness, farmers’ training, investing in processing, and effi ciencies and fi nding export markets. Unless it is able to do that, it would remain a willing victim of cyclical ebb and fl ow of prices and profi ts.

It should only seek government intervention on policy matters, and not in operational issues. No industry around the globe has prospered on offi cial handouts, and the Pakistani poultry would not be an exception. However, if it wants to take the way the sugar industry has taken – surviving and even thriving on offi cial help – that route would always be fraught with controversies, constant politi-cal manoeuvrings and inherent dangers of losing the battle, if not the war itself. The choice remains with the poultry industry.

MASSIVE NUMBERS: In addition to poultry meat, the nation consumes around 10 billion eggs every year.


BY FRAZ AHMAD

LLAST year, the Economic Survey of Pakistan added fuel to the fi re in terms of the overall livestock debate when it raised its claims about the livestock

sector’s contribution to the agricultural economy. In its pre-budget assessment, the survey said that livestock now forms 55.9 per cent of the agriculture sector – up from just over 51 per cent two years ago. The controversy, which was already loud enough, got a few decibels added to it when the experts, who had been contesting even the previous fi gure on different grounds, termed the new fi gure “shocking”.

They continue to maintain that fi g-ures about the livestock sector are mostly fudged for a number of rea-sons – for instance, it is easier to rig them; and they are handy to cover up any failure, human or natural – satis-fying the lenders’ requirement of meeting development targets and providing a good source for the much-needed political mileage. That is why every government has fudged them despite market realities contradict-ing their claims subsequently, it is argued.

Regarding easy fudging, the experts blame two factors: no credi-ble method to assemble data on the cattle count in the country and absence of political will to do so as well. The only way to arrive at the true fi gure of animal population is to count each and every head in the country – on the pattern of human census, which has not happened for decades.

The absence of reliable fi gures

turns the sector, its performance and expansion a totally grey area where government can claim laurels with-out fear of being contradicted and draw political mileage. Likewise, the critics can accuse the government of fudging data with equal authority. Why government has not created a mechanism for the head count leaves a trail of questions, without answers – and provide fodder to the critics to keep questioning its claims on the sector.

The government has created multi-ple layers to check the performance of the Agriculture sector. Take the example of crop yield measurement. It goes through different layers of checking and cross-checking before any fi gure is arrived at and announced. The provincial Revenue Departments, the Canal Revenue Departments, the provincial Food Departments, the industry (PCGA and APTMA in case of cotton, and fl our mills in case of wheat), interna-tional organisations (like Food and Agriculture Organisation of the United Nations) and national bodies like the Space and Upper Atmosphere Research Commission (Suparco) play a role in arriving at the fi gures of crop yields.

No such mechanism exists in the case of livestock. The only count is made in Agriculture Census once in a decade, where livestock, along with a host of other things – like trac-tors, ploughs and other implements – are counted. This provides the next entire decade to policy-makers com-plete impunity to claim whatever they choose to make out of it each year.

In the absence of cross-checking, the bureaucracy has devised its own ways to do whatever it likes. It has been adding roughly 2.5 per cent,

If the livestock sector is thriving, why have the prices of milk and meat continued to move skywards? If the population of animals is rising at the officially claimed pace, how is the fodder acreage constantly going down?

Numbers that don’t match

just above the offi cial human pop-ulation increase, to these fi gures and keep them fl oating above the human growth. This year as well, they did the same.

According to the Economic Survey of Pakistan, in monetary terms, the sector had contributed Rs776.50 billion against Rs756.30 billion last year, or an increase of 2.7 per cent.

A cursory look at the animal population, by and large, also reveals the same trend. According to the Survey, the buffalo popula-tion was 29 million in 2007-08, which had now (in 2013-14) gone up to 34.6 million. The cattle pop-ulation increased from 31.8 mil-lion to 39.7 million during the same span of time. Goats increased from 56.7 million to 66.6 million and sheep from 27.1 million to 29.1 million. Camel population has been constant at one million for the last six years and so are mules at 200,000. How much these fi g-ures are credible and how were they arrived at is the point of debate.

If one juxtaposes these fi gures to market trends, they sound hol-low. For example, no one from the offi cial circles is able to explain the skyrocketing prices of mutton, beef and milk if the country has over 170 million animals. All of them have multiplied at neck-breaking speed in the last decade or so. Animal population is increas-ing, and so is their market scarcity. Does it not sound contradictory?

Pakistan is said to be producing 53 billion litres of milk, which makes more than an annual aver-age of 200 litters for each human in the country. With milk fl ooding the local market at 200 litters per head, as claimed by the policy-makers, the import of milk (mainly dry, powder stuff) and its products is also on the rise. The critics see a huge disconnect between offi cial claims and mar-ket realities that neither politi-cians nor the bureaucrats are ready to appreciate for their own reasons.

The fodder factor also makes the claims open to questioning. The fodder fi gures are almost con-stant for the last one decade, if they have not actually come down as more lucrative new crops, like maize, claim their share of the market. If the population of ani-mals is rising at the speed claimed

by the policy-makers, where is fod-der coming from to sustain this increase?

The fodder acreage in the coun-try has been constant at around fi ve million acres for the last many years. If internationally accepted ratio of six-animals-to-one-acre is accepted, this population would need at least 1.2 million acres of fodder to survive, which is more than double of actual sowing.

The governments, both federal and provincial, need to realise one basic point when planning for ani-mal population: it is not purely for animals, but is directly linked to poverty in rural areas. The sur-vival of animals and their correct counting is necessary for poverty alleviation strategies.

If the governments continue hiding behind questionable fi g-ures, their planning for reducing poverty would be severely com-promised, as has been the case. The livestock planning and pro-ductivity lies at the heart of pov-erty reduction, especially in rural areas. For these reasons, the gov-ernment has to plan right – and for planning it right, it needs correct fi gures.

The world, especially countries like Australia, has developed the sector through simple four-tier planning. It has concentrated on four areas, which are: breeding, nutrition, health, and husbandry management. Pakistan, apart from claiming massive increase in population, has, unfortunately, been falling behind on all these areas.

As far as breeding is concerned, the offi cial services only cover seven per cent of buffalo and 26 per cent cattle. The rest of the ani-mals depend on private bulls of unknown parentage for reproduc-tion – polluting genetic line and severely hampering health and productivity of two main milk-yielding animals.

Due to paucity of bulls, the insemination cycle of buffalos and cows routinely spans four to fi ve years against 15 to 18 months in the developed world, bringing production down correspondingly. This must provide the starting point for any planning for the sec-tor

The nutrition front is not better off. Some 71 per cent of livestock farmers are either landless (38 per cent) or own less than fi ve

acres (33 per cent) of land. Practically speaking, it means that over 70 per cent of animals are mal- or under-nourished – mainly depending on the casual grazing, affecting their health and productivity. Only 30 per cent stock affords the luxury silage-based diet. Couple this diet pat-tern with the impure parentage, and poor performance of these animals is not hard to understand.

The health front also leaves much to be desired. Only 16 per cent of the stock is vaccinated and the rest remains on curative regime. The offi cial agencies in Pakistan have turned planning of the developed world on its head; all over the world, the public sec-tor concentrates on vaccination, leaving cure to the private sector. In Pakistan, it is other way round; the entire offi cial effort is riveted on cure because it involves huge purchases that benefi t many, leav-ing vaccination to private doctors.

Punjab had planned many a time to start a universal vaccina-tion regime, on the pattern of chil-dren, for all animals, but the pro-ject is yet to see the light of the day. That is why the offi cial agen-cies, with their entire where-withal, have not been able to con-trol old diseases like foot-and-mouth, as vaccination is not a pri-ority.

Of all four factors, the poorest remains the husbandry manage-ment. The farmers neither have training, nor awareness nor exten-sion service nor technology to per-form the basic job of animal upkeep. One simple fact reveals the offi cial attitude towards man-agement. Experts believe, as prac-tised the world over, that the ani-mals must have access to water 24 hours and be fed thrice a day. With this one step, the milk yield, they say, could go up by one litter a day. In Pakistan’s rural areas, the opposite is true: most animals have access to feed 24 hours a day, but are taken to water once a day.

With these kinds of extension services, no wonder productivity results are as bad as they have been showing.

Pakistan needs to concentrate on these four areas instead of making population fi gures look healthy. With poor health, bad service and worse extension services, a bigger population is a liability; not an asset.

RANDOM: An industry worth billions is still left to dated practices. It’s time to harness the Livestock potential.


BY KHAWAJA AMER

LLESS than two decades back, some time in the year 1997, the Food and Agriculture Organisation (FAO) of the United States declared

Pakistani buffaloes as the best in the world and honoured this particular breed with the title of ‘Black Gold of Asia’. This title still seems to be valid for Pakistan is still the third largest milk-producing country in the world.

Milk is the favourite food in Pakistan and is consumed as fresh, boiled, powdered and in processed forms as yogurt, ghee, lassi, butter, cheese, ice cream, sweets and in other confectioneries. According to available evidence, average yield per lactation has been recorded at 1,800 to 2,500 litres while a few breeds can produce up to 6,000 litres in 305 days. Dairy and livestock pro-duction comprises 55 per cent of the country’s total agriculture produc-tion and contributes 11.04 per cent to the GDP.

On the other hand, the meat indus-try in Pakistan is also registering an upward trend. The export of the meat has increased to over $123.61 million in recent years, showing an increase of about 15 per cent. We have enough cattle to fulfi l the ever-increasing meat demand inside the country and can even earn a handful of foreign exchange by exporting the meat.

Dairy animals, when they have spent their productive life and become unviable in economic terms, are used subsequently as beef ani-mals. Male calves of dairy animals and dairy bulls, when no more required for breeding purposes, are also utilised for beef purposes.

Livestock contribution to agricul-ture value added market stood at 55.9 per cent while it contributes 11.8 per cent to the national GDP during 2013-14 compared to 55.5 per cent and 11.9 per cent during the corresponding period last year, respectively.

Gross value addition of livestock increased from Rs756.3 billion in 2012-13 to Rs776.5 billion in 2013-14, showing an increase of 2.7 per cent compared to preceding year. There are about 25 and 27 million cattle and buffaloes respectively in the country.

The Landhi Cattle Colony in Karachi is said to be the world’s big-gest concentration of buffaloes/cat-tle at one place. This colony, which is usually referred to as Bhains Colony, has a dairy animal population of about 400,000 with a daily yield of about four million litres of milk.

But, sadly enough, this vital sector has always been neglected by banks and lending agencies and the major reason for the low credit offers to this very important segment of our national economy was, of course, inadequate availability of appropri-ate insurance cover.

Naturally, no bank will lend money to a person or an organisation with-out covering the risk factor because inadequate risk management can result in harsh penalty for compa-nies as well as individuals.

Bank fi nancing for the livestock, dairy and meat sector was only Rs56 billion, constituting just 17 per cent of the total agriculture lending in the current fi scal year.

Realising the necessity to support this robust sector of our economy, the State Bank of Pakistan (SBP) came to the rescue of the poor cattle farmers and to solve this problem chalked out a workable plan.

The SBP, after a fairly long delib-eration with the relevant stakehold-ers and in collaboration with the Securities and Exchange Commission of Pakistan (SECP), banks, insur-ance companies and the provincial livestock and dairy departments, developed a framework for livestock insurance for borrowers.

The idea was to improve the provi-sion of fi nance to the livestock and dairy sector by minimising the risk of loss. With the introduction of this scheme the cattle farmers can now feel relieved of a number of appre-hension for the scheme would now safeguard the interest of farmers in case of death of their animals – buf-faloes, cows and bulls – due to dis-ease, accident, fl ood, heavy rains and storm.

Under the scheme, the banks will obtain insurance of all livestock loans up to Rs5 million for the pur-chase of animals. The SBP has advised commercial banks to imple-ment the scheme and enter into agreements with reputable insur-ance companies for underwriting livestock insurance for their borrow-ers.

It is pertinent to mention here that millions of livestock were affected by the fl oods in Pakistan. Though, according to a report, around 200,000 cows, sheep, buffalo, goats and don-keys were confi rmed as dead or miss-ing, the fi nal numbers were esti-mated to be much higher, possibly into the millions.

If we count poultry losses also, then millions of animals had died with the entire poultry stock wiped out in some areas. Many animals died because people had to leave them behind when they were res-cued by the Pakistan military and other rescue services. The after-affects of the fl ood, in fact, com-pelled the authorities to come out with a practical solution to this prob-lem.

The most encouraging aspect of the scheme is the fact that the cen-tral bank will also request the gov-

Financing for the livestock, dairy and meat sector has at best been minimal. The central bank has devised a plan to support and rescue the cattle farmers through the commercial banks, but obstacles need to be removed.

Protecting the ‘Black Gold’

ernment to bear the cost of insur-ance premium for small farmers through budgetary support as is being done under its mandatory Crop Loan Insurance Scheme for fi ve major crops.

This is undoubtedly a very good decision and will defi nitely help modernise cattle farming in the country. But will the uneducated farmers be able to derive benefi ts from this scheme?

This question is, in fact, bother-ing some bankers. They argue that most of the cattle farmers are not educated enough to understand the scope of the scheme and, as such, will not be able to derive benefi ts from this scheme.

Therefore, there is a need to publicise the scheme, educate them and persuade them to develop farms on modern lines. Mere introduction of the plan will not result in any progress unless the farmers understand the bene-fi ts of the scheme.

According to them, schemes developed with lot of research, series of consultations and vision-ary planning cannot be translated into reality unless they are based on facts like target area, behav-ioural pattern of the ultimate ben-efi ciary and the prevalent socio-political scene of the region.

It is, therefore, necessary that a comprehensive plan for effective

implementation of the scheme is prepared and a team of banking counsellors is set up to educate the cattle farmers and disburse loan to them on the farms.

There is an urgent need to estab-lish a strong network of banks, specially assigned the task of making the scheme popular in the areas of cattle farming.

It is very unfortunate that despite the important role of live-stock in the national economic development, it has not yet received the required attention from the planners. There is a need to motivate the thinking of profes-sional economists and owners of livestock in rural areas of the country with a view to fi nding ways and means to increase the per lactation yield.

It is interesting to note that although per animal milk yield is lower than in other countries, Pakistan is yet the third largest milk-producing country in the world. Increase in milk produc-tion is due to increase in quantity of livestock population. It is, therefore, important to introduce improved technological methods in dairy farming to enhance per animal milk production and meet international market standards.

This can only be achieved if the cattle farmers are granted loans to equip their farms with modern facilities and to get loan they must know how to cover the loan with insurance.

Meanwhile, with the introduc-tion of latest technologies, they will also be able to curtail huge losses faced by the farmers due to improper transportation, unavail-ability of interconnected cold stor-age chains, etc.

POTENTIAL: Despite having a low per-animal yield, Pakistan is still one of major producers of milk in the world. A bit more professional planning and its execution will surely work wonders for all concerned.


FATIMA GROUP

ESTABLISHED in 1936 and with a success story span-ning over seven decades, Fatima Group is one of the most progressive business conglomerate in Pakistan. It has a strong and diversifi ed portfolio of products and services, comprising fertilizers, textiles, sugar, energy, mining and trading. The success and the sustainability of our business synergies is based on prudent and substantial investments in large-scale manufacturing plants, effi ciently utilising state-of-the-art technologies and pursuing excellence in standards of production and management practices.

The fertilizer business was established through the con-sortium of two leading business houses of Pakistan, Fatima Group and Arif Habib Group.

Fatima Fertilizer Limited was incorporated in December 2003 under the 2001 Fertilizer Policy of the Government of Pakistan. The complex is spread over an area of 950 acres and is situated at Mukhtar Ghar, near Sadiqabad, District Rahim Yar Khan. The Foundation stone was laid on April 26, 2006, by the then Prime Minister of Pakistan. The con-struction of the Complex commenced in March 2007. Fatima Fertilizer is a fully integrated and diversifi ed Nitrogen and Phosphate based fertilizer complex. It has a 56MW captive power plant in addition to off-sites and utili-ties. The company successfully completed the project phase during 2009 and the plants became operational under trial run in 2010. Ammonia, Urea, Nitric Acid and CAN plants started trial production towards the end of March 2010. Nitro Phosphate plant was commissioned in the second quarter of 2011. Commercial production of the complex was declared on July 1, 2011.

Pakarab Fertilizers Limited was established as a result of a protocol concluded and signed on November 15, 1972 by

the Government of Pakistan to further strengthen and develop fraternal ties between Islamic Republic of Pakistan and State of Abu Dhabi. Manufacturing facilities were com-missioned in 1979. Under the privatisation policy of Government of Pakistan, Pakarab Fertilizer Limited, situ-ated on the outskirts of Multan and housed over 302 acres, was acquired by Fatima Group and Arif Habib Group in July 2005.

Both Pakarab Fertilizer Limited and Fatima Fertilizer Limited are designed to manufacture 2.1 million metric tons per annum of fertilizers.

Fatima Group believes that the growth of its business depends on the growth of the communities around it. Though there are several areas that require corporate sup-port in Pakistan, Fatima Group has identifi ed three sectors where its activities are focused on;

1. Education: Fatima Group is committed to playing its

role in ensuring access of quality education to deserving students in the country. In this regard, scholarship funds have been established at various reputable educational institutions and collaborations with NGOs have been undertaken to adopt government schools and investment in infrastructure of these entities.

2. Health: Fatima Group is providing fi nancial support to several hospitals for treatment of deserving patients by running free vaccination centre and welfare dispensary for employees and local community.

3. Disaster Management and Relief: Fatima Group has always stood by its fellow countrymen in troubled times, especially when hit by natural calamities. Generous fi nan-cial support has been provided in recent times to the earth-quake and fl ood affectees across Pakistan.

Over the years, Fatima Group has remained committed to achieving higher standard of excellence and innovation, venturing into new directions and delivering the fi nest products and services. With traditions of responsibility and reliability and a culture that promotes dynamism and inno-vation, the Group looks forward to a fl ourishing future and for making further positive contributions towards the econ-omy of the country.

Our Vision: To be a world class manufacturer of fertilizer and ancillary products, with a focus on safety, quality and positive contribution to national economic growth and

development. We will care for the environment and the communities we work in while continuing to create share-holders’ value.

Our Mission: To be the preferred fertilizer company for farmers, business associates and suppliers by providing quality products and services. To provide employees with an exciting, enabling and supportive environment to excel in, be innovative, entrepreneurial in an ethical and safe working place based on meritocracy and equal opportunity. To be a responsible corporate citizen with a concern for the environment and the communities we deal with.

SARSABZThe year 2011 marked the launch of the brand ‘Sarsabz’,

a representation of the quality products being produced at Fatima Fertilizer Limited and Pakarab Fertilizer Limited. With our ‘Sarsabz’ revolution, we aim to promote the bal-anced usage of fertilizers to increase productivity and play

an important role in the economic prosperity and sustaina-ble development of Pakistan.

Since its launch in January 2011, our brand ‘Sarsabz’ has steadily built a reputation of quality and reliability among our business associates and farmers. This has been on the

back of focused promotional campaigns targeting the selected farmer segment. Fatima Fertilizer has consist-ently undertaken farmer promotions with a specifi c focus on Nitrophose fertilizer. As a consequence, recent inde-pendent farmer research reveals a signifi cant increase in brand awareness and a consistent increase in the usage of our specialty products NP and CAN. Members from the farming community have testifi ed to the increase in pro-ductivity using our products and this has helped us in gain-ing market share of the Phosphate and Nitrogen categories. We are deeply committed to connecting with the agricul-ture community to exceed their expectations and building loyalty.

Under the parent brand of ‘Sarsabz’, Fatima Fertilizer Company promotes the following four products; Sarsabz Nitrophos, Sarsabz CAN (Calcium Ammonium Nitrate), Sarsabz Urea, and Sarsabz DAP (Di-Ammonium Phosphate).

Sarsabz Nitrophos and Sarsabz CAN are our speciality products due to their differentiated benefi ts, ideal for soil conditions in Pakistan. We have made a conscious effort through awareness campaigns to introduce these benefi ts of NP and CAN in our farming community and business associates

Sarsabz Nitrophos is reaction product of Rock phosphate with nitric acid. Nitric acid is made by oxidising ammonia with oxygen from air at high temperature. The chemical composition of Sarsabz Nitrophos granule is precisely adjusted to provide balanced ratio of P and N, which is suit-able for all crops and soils of Pakistan and at all stages of plant growth. It is important to apply the proper dose of Sarsabz Nitrophos in the soil to meet the requirement of growing crop and also sustain soil productivity.

Sarsabz Nitrophos, along with acidic pH and 20% P, also contains 22% N, in a ratio of 50/50 Ammonical and Nitrate Nitrogen. Both the nutrients are almost in 1:1 ratio which places it as an ideal fertilizer product for alkaline calcare-ous soils of Pakistan. Sarsabz Nitrophos fertilizer is sold in granular form which can be drilled and spread on soil sur-face and band placement.

Sarsabz Nitrophos is highly soluble and its nitrate nitro-gen attracts soil moisture well which is highly benefi cial for young growing plants and to regulate the pH in soil micro spaces and root rhizosphere. Its acidic reaction not only delays P fi xation process but also solubilise fi xed nutrients

in fertilizer granule impact area.The product benefi ts of Sarsabz Nitrophose are: It is

most suitable Phosphatic fertilizer for Pakistan’s soils. Sarsabz Nitrophos is an acidic Phosphatic fertilizer- (pH 3.5) whereas Pakistan soils have pH 8+ (Alkaline). It is most suitable to transform stiff alkaline soils into soft permeable soils. NP granule reduces pH of soil micro sites and plant root rhizosphere and gives uniform water retention and suffi cient aeration to plants. It results in excellent germination. NP contributes in healthier ger-mination – low initial ammonia concentration, excess of which can be toxic for young tender seedlings. It results in higher yield. Formation of an acidic ‘microsite’ around

NP granule creates conducive environment for more ‘P’ availability to plant in calcareous soils. It increases qual-ity and weight of the produce. NP is a well-balanced Phosphatic fertilizer – 1:1 ratio of Nitrate and Ammonical N and acidic (pH3.5) P which is the best ratio for grain crops. Narrow ratio of N and P leads to higher ‘Phosphate’ uptake by plants. It gives boost to crop and improves quality and yield. NP is an effi cient ‘P’ fertilizer. Plant needs less energy for ‘P’ absorption and transportation across the root cell membranes under acidic microsite environment.

Sarsabz Calcium Ammonium Nitrate (CAN): A Perfect combination of Ammonical and Nitrate Nitrogen in 1:1 ratio with soluble Calcium. Nitrogen (N) is a criti-cal component of proteins formation in plants, which control the metabolic processes required for plant growth. It also is an integral part of the chlorophyll mol-ecule and thus plays a key role in photosynthesis. CAN is a preferred Nitrogen source due to balanced ammonia and nitrate forms. Nitrogen in Nitrate form is preferred by growing plants. Due to low concentration of Ammonical form of N, its losses in alkaline pH soils are low as compared to high ammonia fertilizer sources. Calcium (Ca) is an integral part of plant cell walls. It promotes early root development and growth. Calcium is essential to activate growing points, especially root tips. Sarsabz Calcium Ammonium Nitrate (CAN) is a neutral pH nitrogenous fertilizer, which contains 26% N and 10% water soluble Calcium which is also an essential plant nutrient which contributes to plant cell multiplica-tion and strengthens cell wall. Many fi eld demonstra-tions and research trials have shown that by using rec-ommended dose of Sarsabz Nitrophos and Calcium Ammonium Nitrate, yield and quality of all fi eld crops and fruits are augmented.

The product benefi ts of CAN are: It is benefi cial for our alkaline and calcareous soils due to its neutral pH. Nitrogen availability to plant increases due to minimum ‘N’ losses. Makes CAN more economical as N fertilizer. It keeps plant metabolic processes non-stop and thus gives uniform vegetative growth. Balanced ratio of Nitrate and Ammonical Nitrogen- ½ ‘N’ is Nitrate: readily avail-

able to the plants and ½ Ammonical – available for plant through nitrifi cation process. Its nitrate contents make it equally effective in water stressed areas. It is highly soluble and suitable for multiple methods of application. More cal-cium levels in plant tissue results in better Potash (K) uptake in saline soils which improves both quality and quantity of the produce. It enhances Potash (K) uptake. The presence of 10% soluble Calcium (Ca.) makes plant cell wall stronger and healthier and also suppresses lodging. It helps in protecting the plant against diseases and improves shelf life of the produce. It protects plants from negative stresses thus results in better crop stand and improved yields. It improves soil Health – Soluble Calcium displaces sodium (Na) in the soil profi le and also suppresses the nega-tive impact of high RSC tube well water.

Benefi ts to the farmers (Wheat crops): Sarsabz Nitrophos along with 20% acidic Phosphorous also contains 22 % N which is of two types i.e. Ammonical and Nitrate forms which restricts its losses as ammonia in alkaline pH soils. Its high use effi ciency is translated as healthy germination, strong root system, better yields and sustained soil produc-tivity.

Sarsabz Nitrophos and Sarsabz Calcium Ammonium nitrate is the preferred choice of farmers. International and local research data shows that Sarsabz Nitrophos and CAN increases yield of wheat crop. This combination increases number of fertile tillers in wheat crop, a major yield con-tributing factor. Two bags of Sarsabz Nitrophos at sowing and two bags at the time of 1st irrigation followed by 1 or 1.5 bag of CAN with appropriate crop management practices increases grain yield signifi cantly. This combination gives better Spike length, Spikelet’s per Spike, 1000 grain weight and protein contents in wheat grains.

Benefi ts to the farmers (Rice crops): Sarsabz Nitrophos and Calcium ammonium nitrate are the best fertilizers for rice crop. Latest research indicates that for rice ratio of Ammonium and Nitrate nitrogen is indispensable to get bumper yields from rice crop ‘Mechanisms of enhanced rice growth and Nitrogen uptake in narrow ammonia and Nitrate ratio has been demonstrated in recent research articles (Ref: Pedosphere,17(6):697--705,2007, ISSN 1002-0160/CN 32-1315/P ©2007 Soil Science Society of China Published by Elsevier B.V. and Science Press). The results obtained indicated that a ratio of 50/50 Ammonical and Nitrate N increased the average biomass of rice shoots and roots by 20% when compared with that of 100/0 Ammonical and Nitrate N. Fatima Fertilizers technical team’s studies at farmer fi elds and government research stations revealed the same results for IRRI and Basmati rice verities.

Benefi ts for the farmers (Cotton crops): Sarsabz Ni trophos contains acidic Phosphorous and two types of nitrogen i.e. Ammonical and Nitrate forms, similarly Calcium ammo-nium nitrate also contains 50/50 Ammonical and Nitrate N plus 10% soluble calcium. Nitrates are directly absorbed by the plants, therefore having higher use effi ciency. Nitrates

synergistically promote the uptake of other nutrients as well. CAN is non-volatile and is preferred nitrogen source for cotton crop. Fatima Fertilizer’s technical team carried out various fi eld demonstrations to evaluate the impact of Sarsabz Nitrophos and Calcium Ammonium Nitrate combi-nation over DAP and Urea source of P & N. Sarsabz Nitrophos and Calcium Ammonium Nitrate being having balanced nutrient combination, promoted early vegetative growth and boll development, accelerated maturity, helped cotton plant to overcome the abiotic stresses. Therefore farmers were able to achieve better yields and returns.

Benefi ts for the farmers (Sugarcane crops): Sugarcane is an important and high-value cash crop of Pakistan. It is raw material for sugar industry which plays a pivotal role in the economy of our county; sugarcane accounts 3.4% in agricul-ture value addition and 0.7% in agricultural value addition and 0.7% in national GDP. It is worth mentioning that Fatima Fertilizers has established Bio-Lab at Sanawan, Kotaddu, for the biological control of sugarcane insects to restrict pesticide usage on crop. Farmer fi eld demonstra-tions have shown that use of Sarsabz Nitrophos and CAN fertilizers promote tiller formation, internode distance, plant girth and sugar contents of the crop.

Benefi ts for the farmers (Potato and Maize crops): Fertilizers having nitrate (N) are considered best for potato and maize crops. High nitrate boosts number of quality char-acteristics and higher fi nancial return for the grower. Best results in terms of grower return were achieved when Sarsabz Nitrophos with recommended combination of Sarsabz CAN was applied to Potato and maize (Spring and autumn) crops. Similar conclusions have also been drawn in other crops for increased performance of Sarsabz NP and CAN.

Sarsabz Nitrophos and CAN increases the P&N transport rate across maize root cell membranes as roots require less energy to absorb P and this is translated into better yield through more pollination, grain fi lling and per acre yields.

Benefi ts for the farmers (Orchards and Vegetables): Acidic micro cites developed by Nitrophos (pH3.5) in alka-line soils increases P absorption by roots. Balanced P&N ratio of NP increases fruit bearing capacity of plants, Sarsabz Nitrophos and CAN application results juicy and healthier fruits. NP helps in maintaining peel thickness and skin quality of the fruits as well. Calcium ammonium Nitrate helps in timely fruit size gaining, and calcium main-

tains better heath of the fruit pulp, taste and shelf life for profi table marketing. Increased P transport rate across root cell membranes as root require less energy to absorb more P, gives more and good quality fruits. Similar results were obtained for mangoes and vegetables.

Fatima Fertilizer is deeply committed to improving the lives of the farmers and playing a substantial role in increas-ing the productivity of the Agriculture Sector of Pakistan.

Our Farmer Outreach Programme is an initiative of our technical services team whereby through increased farm visits, meetings and fi eld demonstrations, the team edu-cates the farmers about our balanced nutrient product port-folio that is suitable for all soils, all crops and at all stages.

Continued on Page 21

Partners in progress



We also collaborate with various Government and private agriculture institutions for research and development on the balanced use of fertilizers and increased yields and profi tability for the agricultural sector. Our initiatives are geared to harness latest technologies and facilitate transfer of knowledge to our farmers whilst supporting new research frontiers. We are the only fertilizer company to produce a television programme in collaboration with PTV, featuring top agricultural experts and scientists to share their knowl-edge with community. These series were geared towards increasing the knowledge of farmers, so as to enable them to improve their yields and profi tability in a sustainable manner.

We have collaborated with the Soils Sciences Society of Pakistan for the publication of Soil and Environmental Sciences Journal and for the organisation of conferences to share recent developments with respect to plant nutrition.

In addition, we have undertaken a few projects with the Rice Research Institute, KSK and Dhokri, Potato Research Institute and the Central Cotton Research Institute to intro-duce NP and CAN as a preferred source of phosphorous and nitrogen for the potato, rice and cotton crops in particular.

We remain in constant liaison with the University of Agriculture, Faisalabad, and Ayub Agriculture Research Institute for ongoing initiatives to facilitate efforts towards balanced fertilizer usage and improving fertilizer use effi -ciency.

The ‘Sarsabz’ Call Centre was established in 2013 and is a pioneering initiative in the sector to help the farmers in timely decision making for better returns. Its aim is to pro-vide one-stop solution to our customers along with resolving the issues and queries raised by our business associates.

Fatima is also the fi rst fertilizer company to launch a comprehensive Product Stewardship Programme, under the Protect and Sustain Programme of International Fertilizer Association (IFA). This programme envisages safe handling of the product through its lifecycle, ensuring proper storage of the product at plant sites, in-transit safety, record keeping at warehouses and dealer shops, avoiding misuse of product in compliance with government regula-tions and fi nally, the balanced and effi cient use of fertilizer through proper dosage and timely application.

Fatima Fertilizer has laid a strong foundation in terms of product quality and portfolio, created signifi cant farmer and dealer awareness and taken unique initiatives in chan-nel development, logistics and warehousing and technical Services. Now with a solid base, we are about to embark on a journey that will make us the brand of choice for our farmers and dealers.

USAID

THE United States and Pakistan have a long-standing partnership in agriculture. From academic collaboration to on-the-ground extension, the US government continues to work with our Pakistani partners to help improve the agricul-tural sector, one of the key drivers of the Pakistani economy. With more than half the population linked to agriculture in some way for their livelihood, there is no doubt of its impor-tance to the long-term stability and prosperity of Pakistan.

The United States works through two agencies; the United State Department of Agriculture (USDA), and the United States Agency for International Development (USAID), to establish programmes and projects focused on improving agricultural productivity. The US government works with partners to strengthen Pakistan’s agricultural sector by improving the competitiveness of Pakistani agri-cultural products, connecting Pakistani producers with International markets, increasing technological innovation, introducing improved varieties of crops and livestock, pro-moting water use effi ciency, and increasing productivity.

A History of Partnership: For more than 50 years USDA and USAID have worked together with all facets of the Pakistani agricultural sector to realise the overall goal of increasing production and incomes to ensure a food-secure Pakistan.

Whether it is irrigation or extension, production or pol-icy, these agencies have been ready to help.

Starting as early as the 1950s, the US government recog-nised the need to support Pakistan’s goal of harnessing the power of Pakistan’s rivers to irrigate the land and provide power for industry. Work in these areas continued into the 1960s and 1970s with approximately $800 million in invest-ments for various Indus Basin projects. USAID has played a key role introducing many fruits, vegetables and grains, including the kinnow, now the most popular citrus fruit in Pakistan. USAID assisted the development of key agricul-tural support industries, including support to the National Agricultural Research Centre (NARC).

US government agricultural efforts even expanded to higher education, which has promoted and funded research and development and disseminated new techniques and technology. Over the years, USAID and USDA have helped establish the University of Agriculture in Faisalabad and the Agricultural University of Peshawar, and have funded countless scholarships, sending Pakistani students and pro-fessors to the United States to learn and share with our uni-versities and researchers.

Another key player in the partnership between the United States and Pakistan is Dr. Norman Borlaug, who fi rst visited Pakistan in 1963. Dr. Borlaug’s collaboration with Pakistani agricultural scientists resulted in the intro-duction of high-quality wheat varieties that increased yields by 25% between 1961 and 1969. Dr. Borlaug, along with the USDA, Pakistani partners, and agricultural scien-tists around the world brought the “Green Revolution” to Pakistan and radically increased agricultural yields by introducing farmers to new crop varieties, innovative ways of planting, effi cient use of fertilizers, and new technolo-gies for irrigation.

This partnership set the stage for 50 more years of agri-cultural collaboration between the US and Pakistan. Today, the USDA actively supports agricultural development in Pakistan by helping to increase farmer incomes and improve livelihoods by fi ghting wheat and cotton diseases, effi ciently utilizing and conserving water on farms, enhanc-ing dairy production through better management, and working to control disease outbreaks such as Foot and Mouth Disease (FMD).

The United States continues to partner with Pakistani counterparts to ensure a lasting advancement in the agri-cultural sector.

Current Initiatives (USAID): At present, USAID’s initia-tives aim at helping modernise Pakistan’s agricultural sec-tor and make it self-sustaining. USAID’s agricultural pro-gramme provides training, seeds, livestock and other essential farming needs and improves value chains, market access and irrigation.

To foster improved productivity and product quality, USAID’s Agribusiness Project aims at increasing competi-tiveness and productivity of apricots, bananas, red chillies, citrus, grapes, high-value vegetables, seed potatoes, and livestock (meat) value-chains. This activity provides tech-nical assistance on production, improved technologies, and quality standards, and seeks to attract private sector invest-ment into the sector and promote new investment in agri-businesses. Selected horticulture and livestock sub-sectors offer great potential for increased employment and income generation through diversifi cation into high value production systems, product and process innovation, value

addition, and greater market orientation.The Balochistan Agriculture Project helps communities

and individual farmers increase their production, sales and revenues through the introduction of new technologies and practices, improved management approaches, new varie-ties of crops and livestock, and better water management techniques. To accomplish these goals, the project helps to establish and train community organisations and farmers’ marketing collectives.

The Dairy Project boosts the incomes of small dairy pro-ducers in Punjab by providing training in best practices for dairy producers, women extension workers, and artifi cial insemination technicians. Trainees receive basic equip-ment and are introduced to techniques and resources that help improve milk yields. The project promotes linkages between dairy farmers and suppliers, service providers, and higher-end markets. Our work In South Punjab has impacted 16,000 rural households, yielding increased ani-mal productivity, higher incomes and better livelihoods.

USAID is integrating irrigation projects into its ongoing energy projects at the Gomal Zam and Satpara dams in South Waziristan and Gilgit-Baltistan through continued construction of on-farm irrigation infrastructure, which will increase the productivity of high-value crops. The two projects will help thousands of rural farming families by irrigating more than 200,000 acres of farmland.

The Pakistan Strategy Support Programme supports eco-nomic policy reform by conducting and disseminating research in four areas: agricultural production; water man-agement and irrigation; macroeconomics, markets, and trade; and poverty dynamics and social safety nets. The project also builds local capacity by linking Pakistan research and policy institutions with US and international counterparts in order to conduct joint policy analyses and disseminate research fi ndings.

The Agriculture Innovation Project works to increase the productivity and incomes in the agricultural sector through promotion and dissemination of modern technolo-gies and practices in the livestock, vegetable, perennial horticulture, and cereal sectors in collaboration with farm-ing communities and public and private entities.

USAID’s Punjab Enabling Environment Project is work-ing to improve the business environment in Punjab by encouraging policy and regulatory reforms through private sector-led advocacy in the livestock, dairy, and horticulture sub-sectors. These reforms will help spur investments lead-ing to new employment opportunities, particularly for women and youth.

Recently, USAID has formed a partnership with First MicroFinance Bank Ltd, Khushhali Bank Limited, Bank Alfalah Limited, and JS Bank Limited to support micro, small, and medium enterprises across Pakistan. This eight-year programme will provide increased access to credit for agribusinesses throughout the country. Current Initiatives (USDA): Through its work in Pakistan, USDA’s Foreign Agricultural Service continues to partner with Pakistani and international institutions on a variety of programmes and projects.

Partnering with the American Soybean Association, USDA’s World Initiative for Soy in Human Health (WISHH) has implemented the ‘FEEDing Pakistan’ project to improve capacity, productivity and quality in the Pakistani aquaculture sector through the active participation of pub-lic and private stakeholders. The project has assisted approximately 2,000 Pakistani fi sh farmers and helped increase the market value of fi sh produced — namely tila-pia — from zero at the beginning of the project to an esti-mated $4.5 million in 2014.

The USDA partners with universities and research insti-tutes from around the world to help tackle agricultural problems from a truly global perspective. One such project here in Pakistan is being conducted through the collabora-tion of the Commonwealth Agricultural Bureaux International (CABI) and Texas A&M University to develop and conduct training courses on the ‘Principles for Developing a Model Agriculture Import/Export System’ for animal and plant health offi cials and scientists in Pakistan. The project is expected to signifi cantly improve the capac-ity of the Pakistani regulatory offi cers and positively affect the trade objectives of Pakistan.

Coordinating efforts with the International Centre for Agricultural Research in the Dry Areas (ICARDA), USDA collaborates with 10 partner institutes across Pakistan to improve the degraded soil health and fertility and increase farm productivity in Pakistan. The work with these insti-tutes aims to increase farm income and economical condi-tions of Pakistani farmers. Ten promising technologies to improve soil fertility & health and signifi cantly increase crop production are being demonstrated and dissemination through establishment of demonstrations at farmers’ fi elds through fi eld days.

In addition, the USDA Foot-and-Mouth Disease Programme has vaccinated over 500,000 cattle, buffalo and yaks, and implemented a disease surveillance system to monitor FMD outbreaks. The Peste de Petits Ruminants (PPR) Programme is working to control a devastating viral disease of sheep and goats. The Wheat Productivity Programme continues to work with farmers to disperse the UG 99 wheat rust resistant “NARC 2011” variety, while the Renovation of Cereal Disease Research Lab in Murree monitors samples from across the country as part of the rust monitoring and surveillance system.

USDA and the Cotton Productivity Programme have pro-duced four varieties, which have shown early signs of resist-ance to the Cotton Leaf Curl Virus (CLCV). Other projects, such as the Sanitary and Phyto-Sanitary (SPS) Distance Learning Project, work to provide risk analysis, risk com-munication, risk mitigation, and insect trapping and sur-veillance tools to farmers. Remote sensing training is being provided to help with crop estimation, determine land cover classifi cations, and improve fi eld data collection methods. These systems’ hardware and software are being implemented at CRS Punjab, CRS Sindh, University of Faisalabad, and the University of Tandojam. The USDA also continues to monitor and work with 30 watershed man-agement demonstration sites for rainwater harvesting, high effi ciency irrigation systems (drip, bubbler, sprinkler, bed and furrow), and soil and water conservation techniques.

Getting Women Involved: Our agriculture projects are working to provide women with entrepreneurial opportuni-ties while encouraging employers to incorporate women into their work force. Women have long been an integral part of the agriculture industry. Whether it is on the farm, in the fi eld, or at the processing plant, the agriculture sec-tor could not function without the hard work and entrepre-neurial spirit of Pakistani women. Our projects pay par-ticular attention to this spirit and work to provide women agriculture producers and women-run small businesses improved production techniques, better access to key sup-port services, and stronger links with profi table markets, all in order to help these industrious women better provide for their families.

Moving Forward Together: The United States is commit-ted to furthering our partnership with our Pakistani coun-terparts across the agricultural sector and will continue striving to improve the agriculture sector and the lives of all Pakistanis. In conjunction with the national and provin-cial governments, US government agricultural programmes are developing new methods to promote and expand Pakistan’s commercial agriculture. As Pakistan moves towards, improving trade domestically and internationally, US government projects will be there to help improve qual-ity standards, marketing and to build trading partnerships regionally and with the United States. Together we see a bright future for agricultural growth across Pakistan.

MTW PAK INDUSTRIES

MTW Pak Industries (Pvt.) Limited is a joint Belarus-Pakistani venture, which has been established in 2015 with the aim of creation assembly manufacture of Belarus trac-tors, mounted and tractor-down implements. It will present

its wide range of Minsk Tractor Plant tractors and other famous Belarus companies engaged in agricultural machin-ery such as:

Lidselmash: It produces 51 units of agricultural machin-ery; Potato Digger is designed for digging potatoes, partial separation of the tubers from the soil and depositing them on the surface of the fi eld for further selections; Cotton Cultivator is designed to perform basic types of inter-row cul-tivation during the growing season of cotton, kenaf, corn and other row crops with tall stem; Seeder is intended for planting row crops; and Planter is designed for potato tubers.

Minsk Automobile Plant: It produces a wide range of motor vehicles for various purposes. Middle-tonnage and heavy-duty motor vehicles: drop-side trucks, truck-tractors, dump trucks, automobile chassis for mounting various spe-cial equipment for construction and community facilities, autocranes and timber carries; Trailers and semi-trailers; Passenger vehicles: city and suburban, tourist, intercity and apron buses.

Bobruiskagromash: The range of products include over 70 kinds of machinery for application of fertilizers, for preparation, storage and distribution of forages, for clean-ing of fl ax, trailers, machinery for feed preparation and distribution.

Gomselmash: It is one of the largest manufacturers of agricultural machinery, ranking among the world market leaders. Machinery: Grain-harvesting machines and com-plexes for forage, grain and serial crops, rape, sugar beet and potato harvesting; mowers, pull-type and mounted machinery for complex soil cultivation.

UAF

THE University of Agriculture, Faisalabad (UAF) has become the pride of the nation as it is the fi rst ever Pakistani institution ranked among the world top 100 universities in any category. Under the leadership of Vice-Chancellor Prof Dr Iqrar Ahmad Khan (SI), it has earned 97th position in Agricultural Sciences worldwide and 20th in Asia Pacifi c. PCST has also ranked the varsity as top degree awarding institution for 2013. It has become 25th best green univer-sity of the world. Islamic Development Bank (IDB) Science and Technology Award 2012 was also won by the UAF.

Since its elevation as university in 1961, it has produced 62,000 graduates and 1224 PhDs. It is offering 165 degree programmes in different disciplines. Special initiatives are being taken to provide state-of-the-art facilities to students and faculty. Community College, Day Care Centre, six new hostels, two lecture theatres, new science block, and Expo centre have also been set up. USAID funded Centre for Advanced Studies in Food Security/Agriculture worth $45 million; and Chinese Confucius Centre has been estab-lished whereas the Punjab government has approved set-ting up of Punjab Bio Energy Institute at the campus.

Being the mother of all agricultural institutions in the subcontinent, it has given birth to three universities in the country. It has also opened three offshoots in TT Singh, Burewala/Vehari, and Depalpur/Okara. The UAF research portfolio has exceeded Rs5 billion. It is leading the Punjab government’s drive against dengue in the R&D activities.

SOYPAK

FOR the past three years, the American Soybean Association’s (ASA) World Initiative for Soy in Human Health (WISHH) has implemented the ‘FEEDing Pakistan’ project, funded by the US Department of Agriculture with the goal of improving capacity, productivity and quality in the Pakistani aquaculture sector through the active par-ticipation of public and private stakeholders. ASA/WISHH is a trade-development organisation, which works to develop viable agricultural value chains in emerging mar-kets in order to improve health, nutrition and food security.

FEEDing Pakistan assisted approximately 2,000 Pakistani fi sh farmers and helped increase the market value of fi sh produced — tilapia — from zero at the begin-ning of the project to an estimated rs450 million ($4.5 mil-lion) in 2014. The project demonstrated improvements in fi sh growth and survival through the use of soy-based, fl oat-ing fi sh feed produced in Pakistan with US soybean meal. Feed produced with high quality soy protein not only sup-ports growth and healthy development of fi sh but also reduces costs and supports healthy environment initiatives.

A variety of stakeholders have collaborated throughout FEEDing Pakistan including: the Pakistan Fisheries Development Board, Provincial Department of Fisheries of Sindh and Punjab, the University of Veterinary and Animal Sciences, Kansas State University (KSU), local fi sh farm-ers, Pakistani government representatives, and a variety of private-sector Pakistani companies.

Successes under the project include the establishment of Pakistan’s fi rst extruder dedicated to the production of soy-based fl oating fi sh feed, support to Pakistan’s fi rst private-sector tilapia hatchery which plans to sell approximately three million young tilapia to farmers this year and 10 mil-lion per year in the coming years, and the production of The Aquaculture Handbook — Fish Farming and Nutrition in Pakistan, which will serve as a lasting resource for stake-holders.

The advances made under FEEDing Pakistan are due primarily to the integral participation and dedication of Pakistani fi sh farmers, academics, members of the private sector, and government offi cials. Participants’ desire for increased knowledge led to the rapid adoption of new tech-nologies and best management practices. The subsequent private investment of time and resources by both individu-als and institutions created a framework for continued growth of the Pakistani aquaculture sector for years to come promising to ultimately reduce the protein gap in Pakistan and improve food security.

ALI AKBAR GROUP

ALI Akbar Group has been serving the nation with diver-sifi ed range of products and services and it is actively involved in crop protection and yield maximisationa efforts through quality products, technological expertise and a diversifi ed services. The Group is serving the agriculture sector through its wide range of premium quality, environ-ment-friendly new generation chemical products that include pesticides, insecticides, fungicides, weedicides, micro-fertilizers and plant growth regulators, seeds of Cotton, Rice, SSG, Maize and vegetables. Target Zari Markaz , DJC shops and APNA Zari Markaz are fl agship outlets and the largest agricultural franchise network in Pakistan. Textiles, LPG, household pest management and solar solutions are some other ventures of the group.

Ali Akbar Group’s tremendous growth has also been fuelled by strong belief in core values. We believe in taking a customer-centric approach in everything we do; thus we always go the extra mile to fulfi l our promise of providing quality products, services and practices. Ali Akbar Group has a culture of togetherness, team work, mutual support and concern not just within the organisation but also in our interactions with our environment, society and communi-ties. We feel a strong sense of responsibility towards the communities we work in and we are deeply involved in the development of medical, educational and sanitation facili-ties within those communities. We also make conscious efforts to reduce our environmental footprint and we take pride in being the only agro-chemicals organization in com-pliance with Environmental Protection Agency standards.

CATTLEKIT PAKISTAN

CATTLEKIT Pakistan is a provider of dairy farm equip-ment and milking solutions for dairy farmers in Pakistan. The company’s head offi ce is in Lahore with sales teams spreading across different regions of Pakistan to serve

dairy farmers with small, medium and large herd sizes. Cattlekit is built around the concept of total solution pro-vider to dairy farmers in Pakistan in terms of farm equip-ment, dairy hygiene and other related products wherever and whenever dairy farmers need in Pakistan.

At Cattlekit, our focus is on service rather sales. We are striving to achieve happiness of our customers by deliver-ing high quality products and services which help their business. Cattlekit is fastest growing fi rm in the category of dairy farm equipment and solutions. In a very short time, we have gained confi dence of dairy farmers across differ-ent cities of Pakistan. With our 24/7 customer service, we can reach our customers as they need us.

Cattlekit Dairy Mart is proud to be Pakistan’s fi rst dairy store of its kind, as it provides all needed equipment from milking machines, milking systems, silage machines, feed mix wagons (TMR) and other related accessories under one roof. The fi rst Cattlekit Dairy Mart was launched in Depalpur (District Okara) and others are under way in northern and southern Punjab.

We proudly represent well reputed global companies in the fi eld of dairy farming equipment which are: Melasty Milking Systems, Celikel Agricultural Machines and Anti-germ International.

Why Melasty-Cattlekit Milking Machines and Systems? Melasty Milking Machines are superior quality milking machines are produced in Turkey. Cattlekit Pakistan is proud to introduce Melasty Milking Machines in Pakistan as exclusive distributor of Melasty for Pakistan. Melasty Machines are being exported to the world, including Europe, Middle East, Asia, South America and Russia. Melasty Machines are high quality and strictly conform to European manufacturing quality standards. Each part of Melasty milking machine talks about its high quality and history of engineering experience of more than 40 years in dairy milking equipment:

Melasty Warranty: Melasty milking machines are the only machines which provide warranty of two years for any manufacturing parts and defects.

Cattlekit Service: Cattlekit provides our customers with 24-hour emergency service for any technical help and que-ries. We make sure to reach at our earliest whenever your call any of Cattlekit service team or sales staff.

European Standard: Melasty milking machines con-forms to European quality standards

Complete Range: Based on herd size and number of milk-ing animals at the farm, our team would suggest the best suitable milking machine or system from among Single Milking Machine, Double Cluster Sing Bucket Milking Machine, Double Cluster Double Bucket Milking Machine, Bucket Milking System – 4 Heads, Bucket Milking System – 8 Heads, Bucket Milking System – 10 Heads, Milk Line with Milk Meters – 5 Heads, Milk Line with Milk Meters – 10 Heads, Milk Line with Milk Meters – 20 Heads.

Variety of Choices: We offer you complete freedom to choose your specifi cation of machines which suits you the best from among Electric vs dual machines with petrol engine (to solve load shedding issue); Silicon vs Rubber Liner; Stainless Steel vs Silver Buckets; Electrostatic red vs chrome/galvanised; Single vs Double Machine; Economy Junior vs regular machine; Fixed vs Mobile; Cow vs Buffalo milking

A few words about Melasty Milking machine quality:Superior Liner Quality: No vacuum loss, no deformation,

ergonomically shaped and suitable for high and low yield-ing animals.

Milking Claw Quality: Diameter of 18.5mm to have the milk easily from liner, also the Milk outlet tube has been expanded to make milk transition made more comfortable thus milking time with Melasty Machine is reduced. Importantly, due to the vacuum fl uctuations, milk gets back in to the nipples; this causes the biggest reason for udder diseases. On Melasty Claw the capacity has been increased to 240cc to prevent this by reducing the fl uctuations while milking.

Milk Tubes (Hose) Quality: Internal diameter has been expanded for a more convenient transition. During the hot weather conditions, hose adhesion after softening while milk fl ow, has been prevented with the wall thickness of 4.5mm and internal diameter Ø16mm.

Milk Machine Chassis Quality: The vacuum line is pro-vided in a closed circulating system, thus vacuum line has been isolated from corrosion which may occur on chassis with the passage of time. Also, 5mm sheet was used in con-nection with air tank and chassis and the vibration result-ing sound has been blocked, thus more solid and strong structure was redesigned.

Vacuum Distributor Quality: Vacuum distributor quality is improved by Melasty Vacuum Distributor with Inlet Ø30mm – Outlet Ø24, 5mm and air tank vacuum outlet was upgraded to Ø32mm, thus makes machine breathes more comfortable.

First Choice – Celikel Agricultural Machinery Company: This is also our honour to bring for dairy farmers in Pakistan, Celikel Agricultural Machinery Company as dis-tributors for Celikel for Pakistan and Afghanistan. The company was established in 1962 and has experience in the agricultural and dairy machines business for over 50 years. Celikel sells in over 30 countries around the world and enjoys leadership in this segment in Turkey. Quality of products produced by Celikel is approved by TSEK certifi -cate that was provided by Turkish Standards Institute, Agriculture Tools and Machine Test Centre, ISO 9001-2000 Quality Certifi cate and CE Quality Certifi cate.

Celikel Warranty: Celikel provides one-year Warranty on all of their equipment.

Cattlekit Service: Cattlekit provides our customers with 24-hour emergency service for any technical help and que-ries.

European Standard: Celikel dairy equipment conforms to European quality standards

Complete Range of Dairy Farm Equipment: Celikel pro-vides a complete range of dairy farm equipment which you must have at your farm:

Celikel Silage Making Machines: The range includes Single Row Maize Chopper – ideal silage making machine for small and medium size farmers; Row Independent Maize Chopper – silage making machine for medium to large dairy farmers; Forage Harvester – ideal for chopping of Lucerne, grass and green fodder for silage purpose or daily consumption of animals; Celikel Maize Chopper is 36 times cheaper in labour force; Celikel Maize Chopper is 4 times faster in chopping time; Celikel Maize Chopper is 36 times faster in harvesting time; Celikel Maize Chopper can harvest, chop and collect a the same time; and the quality of the harvested material is superior.

Celikel Feed Mix Wagons/TMR Machines: These include Feed Mix Wagon (TMR Machine) – Mixer Feeder Wagons have been designed to work with all kinds of feed and to perform mixing without requiring pre-cutting. CHARGER double auger system provides super easiness to mix com-pletely fi brous or bale materials and all components that should be mixed. Consequently, it becomes quality and homogenous feed. A homogenous mixture is necessary to completely meet feeding and physiologic needs of your ani-mals.

We offer complete range of TMRs to fi t your farm’s needs (as seen in chart)

Why Anti-germ? Fuelled by almost two centuries of experience in dairy hygiene, Anti-germ provides complete range of dairy hygiene for your farm. Anti-germ has facto-ries across different countries in the world with head offi ce in Germany. Anti-germ International provides a complete range of dairy hygiene solutions including: tea dip solu-tions; alkaline-based cleansers; disinfectants and acids; hoof care products; and farm hygiene products.

Continued on page 22




Cattlekit is proud to bring Anti-germ International to Pakistan dairy farmers and we expect that high-quality products of Anti-germ would be helpful for dairy farming industry of Pakistan.

AUSTREX & DAIRYCARE PAKISTAN

AUSTREX is global leader in livestock export. It is providing complete services including cattle selection, dairy cattle exports, dairy cattle transportation and ser-vices to handle dairy cattle at farm for existing and potential dairy and livestock farmers. In partnership with DairyCare Pakistan, AUSTREX have the expertise, experience and connections to make it easily possible for you to buy the best dairy herd that is suitable to your farming need and budgets. AUSTREX shipping has fur-ther strengthened with the induction of State of the Art Cattle Carrier ‘GANADO EXPRESS’ in its fl eet livestock carriers.

AUSTREX, in partnership with DairyCare Pakistan, is above and beyond every other exporter, committed to supplying high-quality Australian dairy breeding cattle to various dairy farms in Pakistan. Team of AUSTREX experts and DairyCare Pakistan experts focus on pre- and post-cattle import support to dairy farms in Pakistan. We go even beyond this and come in partnership with our client and provide him support and assistance he requires during pre- and post-farm setup operations.

Our complete cattle buying solution in partnership with AUSTREX will make the whole process convenient and easy for you. We will oversee the cattle buying proce-dure on your behalf from cattle selection to shipping and handling, and you will concentrate on your farm with peace of mind.

By the grace of Allah, our dedicated ship to Pakistan is scheduled twice a year to bring high-quality Australian breeding cattle for existing and new corporate dairy farms. We believe in quality and transparency of opera-tions. New and existing farm management teams are wel-come to contact us and join us in Australia to witness our massive and highly organised cattle selection, shipping and export operations. We have started booking dairy cattle orders for our ship schedules to arrive in Pakistan for this year.

ITTEHAD CHEMICALS

ITTEHAD Chemicals Limited (ICL), serving Pakistan for over 50 years and listed on the Karachi Stock Exchange, has been the pioneer of industrial chemicals manufacturing in Pakistan. Driven by a motivation to build further capacity in the country, ICL diversifi ed into the agriculture sector in 2012. ICL aims at providing quality agricultural products to enhance the soil fertility of the region and enable farmers to harvest increased yields at an economical price and in environmentally sus-tainable manner.

ICL has entered into a technology transfer agreement with National Institute of Biotechnology and Genetic Engineering (NIBGE), Faisalabad (an institute of Pakistan Atomic Energy Commission), to commercialise bacterial fertilizer in Pakistan with the brand name ‘Ittehad BioPower’. This bacterial fertilizer enables nitrogen fi xing and phosphorus solublisation, allowing for reduced need of UREA and DAP, and further phyto-hormone production allows for superior plant growth regulation, especially useful for germination.

Our products : They include Ittehad BioPower; Ittehad Zinc 33%; Ittehad Crystal Zinc 21%; Ittehad Humate (7% Potash 40% Humic Acid); and Ittehad Nutri-Plus (5% Zinc, 2% Ferrous, 1% Copper, 1% Manganese, 1 % Boron).

LUMS ECAM

EXECUTIVE Certifi cate in Agribusiness Management (ECAM) – a programme offered by Lahore University of Management Sciences (LUMS) in collaboration with Nestlé Pakistan – marked the completion of a successful fi rst year in December 2014. ECAM proved to be a suc-cess with executives participating from across all seg-ments and bringing a plethora of experience and indus-try knowledge. The fi rst batch of participants of the year-long modular certifi cate programme had executives from industries including dairy, fertilizers, livestock, exports and processing as well as farmers.

According to a World Bank report, national average yields of major crops like wheat and rice in Pakistan are only 55% of progressive farmer yields, the highest achievable yields in the country. ECAM is an endeavour which was launched to provide impetus in the agricul-tural sector pivotal for economic growth, development and alleviation of poverty in Pakistan.

The one-year certifi cate included courses on agri-eco-nomics, entrepreneurship, value chain and technology, fi nance and accounting among others, to equip partici-pants with leading edge managerial skills and expertise. Participants gained a deeper understanding of the agri-business sector and identifi ed the opportunities that can be maximized to create value for their businesses and organisations.

Insights by Industry Experts: The key feature of the programme was speaker sessions with leading industry experts, policy-makers and agribusiness leaders and sen-ior executives from diverse business segments. The guest speakers included Afaq A. Tiwana, CEO, Farmers Associates of Pakistan (FAP); Mian Shaukat Ali, CEO, Yuksel Seeds Asia Pvt. Ltd.; Jahangir Khan Tareen, Founder, JDW Group; Dr. Mubarik Ali, Ex. CEO, Punjab Agricultural Research Board; Faisal Farid, CEO, Maxim International; Sajjad Rana, Chairman, Pakistan Poultry Association, and CEO, Ahsan Chicks Feeds; Dr.Waqar Ahmad, Sector Advisor Horticulture, Khemonics International Inc.; Mohammad Khalid Mir, Ex. Vice President, Engro Fertilizers Ltd.; Assenjee Bholah, Head of Farms, Ramzan Sugar Mills Ltd.; Zafar Khan, CEO, Sofi zar, CTO Constellation CK Inc. and Founder, Zacky Farms; Zahid Khan, MD, Expert Systems Pvt. Ltd. and a progressive farmer; Muzaffar Mahmood, Member, Board of Revenue Punjab; Sikandar M. Khan, Chairman, Millat Group of Companies; Magdi Batato, MD, Nestle Pakistan; and Syed Babar Ali, Pro-Vice-Chancellor, LUMS.

ECAM Industry Contribution: As a part of the strate-gic initiative, LUMS has developed specialised case studies and industry notes relevant to the local context. This apart from being a strong and unique feature of this programme, adds to the learning materials relevant to the agribusiness sector. Some of the recently developed cases and readings are: Dairy Farming and Dairy Industry in Pakistan; Sapphire Dairies (Pvt.) Ltd (A) – Where did the business plan go wrong?; Contractual Labour in Agribusiness; Agricultural Credit in Pakistan; Agribusiness Value Chain; Four Brothers’ Farming Business – HR Challenges; Vineyard Farm – Business Feasibility; Mitchell’s Fruit Farms Limited – Financial Analysis.

Joint Programme: HAS University of Applied Sciences conducted a specialised Tailor-Made Training (TMT) programme on creating value in agribusiness supply chains for LUMS-ECAM faculty in Netherlands. During the training programme, ECAM faculty visited numer-ous leading agribusiness enterprises, including Nunhems Netherlands BV (Bayer Crop-Science Vegetable Seeds); Friesland Campina; Dairy Farm, Hanenbrg; and Fresh Park, Venlo. This collaboration with HAS University has contributed substantially to faculty expertise in the area of agriculture value chains. Faculty from HAS University and LUMS are jointly developing case studies on horti-culture value chains to better customise ECAM to the needs of Pakistan’s agribusiness sector and to improve the competitive positions of agribusinesses.

This programme has been developed by LUMS in col-laboration with Nestle Pakistan as a part of Creating Shared Value initiative.

MDF

THE Market Development Facility (MDF) is a multi-

country private-sector development programme funded by the Australian government, currently operating in Fiji, Timor-Leste and Pakistan. MDF supports innova-tive businesses to increase business performance, stim-ulate economic growth and ultimately provide benefi ts for the poor – as workers, producers and consumers to invest in new products or services, develop new mar-kets, scale up operations and increase their competi-tiveness. MDF’s goal is to create additional employment and income for poor women and men in rural and urban areas through sustainable and broad-based pro-poor growth.

In Pakistan, MDF has identifi ed opportunities for pro-poor growth in Dairy, Meat, Leather and Horticulture. MDF aims to increase farmers’ yields and incomes by improving access to markets for their products as well as improving access to agricultural inputs and information. For example, improving animal husbandry and access to fodder for dairy and meat production and improving farming methods and access to improved seeds for horti-culture.

In the leather industry, MDF aims to create employ-ment by supporting both the leather and its ancillary industries to be more competitive. MDF works with a wide variety of stakeholders such as exporters, manufac-turers, wholesalers, goods and services companies, asso-ciations, traders and distributors to unlock pro-poor growth potential. To date the Market Development Facility has agreements with nine businesses. It aims to work with 40 businesses by 2017.

MONSANTO

MONSANTO is a sustainable agriculture company which delivers agricultural products that support farm-ers all around the world. Monsanto is also focused on empowering farmers — large and small — to produce more on a sustained basis from their land while conserv-ing more of our world’s natural resources such as water and energy.

In 2008 Monsanto made a commitment to sustainable agriculture – we announced Doubling Yields in USA of the four core crops by 2030 — corn, soybeans, canola and cotton; conserving 1/3 resources in same timeframe as well as improving the lives of 5 million farmers, specifi -cally small holder farmers. With the help of our partners and our continued investment in innovation and new technologies, we are making steady progress on our goals.

Biotechnology is one of the focus areas of Monsanto. Let’s have a look on its contributions. According to the International Service for the Acquisition of Agri-Biotech Applications (ISAAA), 2014 is the 19th consecutive year of commercialisation with continued growth; 18 million farmers in 28 countries planted 181 million hectares; Bangladesh approved Bt brinjal for the fi rst time, now more than 10 food and fi bre crops are approved for com-mercial planting; from 1996 to 2013 the benefi ts include increased productivity valued at $133 billion, saving approximately 500 million kg active ingredient of pesti-cides; in 2013 alone, reducing carbon emissions by 28 bil-lion kg, equivalent to taking 12.4 million cars off the road for one year.

Monsanto could not exist without farmers as they are the lifeline of the company. More importantly, they are the support system of the world’s economy, working day in and day out to feed, clothe and provide energy to our world.

MILLAT TRACTORS

Established in 1964, Millat Tractors Limited (MTL), an ISO 9001:2008 certifi ed company is Pakistan’s lead-ing engineering concern in the automobile sector engaged in the manufacturing and marketing globally recognised Millat tractors; Forklift Trucks; Diesel Engines; Diesel Generating Sets and a range of allied agricultural and industrial implements.

Millat Tractors has played a pivotal role in transfer of technology and transformation of fl edgling local light engineering sector into a robust, vibrant, quality con-scious Auto Vending Industry. The company is regarded as pioneers in setting up country’s automotive vendor base. Today, a local content of more than 90% has been achieved in Millat tractors. The company offers tractor models in the range of 50 hp -85 hp, diesel gensets of capacities -15 KVA to 150 KVA and a 3-ton forklift truck. In order to facilitate dairy and livestock sector, MTL has recently introduced fodder harvesting and baling machines.

MTL has an unmatched, elaborate and extensive fi eld network spread throughout the country. This network comprises 72 main dealers, 50 spare parts dealers and more than 400 authorised workshops where MTL-trained technicians provide effi cient after-sale service to its cus-tomers.

With more than 60% share of the local tractor market, MTL has integrated and consolidated its technical know-how, expertise and sizable investment in allied indus-tries to ensure adequate supplies of quality components by way of establishing four sister concerns. These compa-nies, part of the Millat Group include Millat Equipment Limited, engaged in the manufacturing of power train parts, Bolan Castings Limited that manufactures preci-sion castings for the automotive industry, Millat Industrial Products Limited manufactures automotive batteries and TIPEG Intertrade JLT promotes worldwide trade of Millat Group of Companies and the vendors asso-ciated with it. Millat Tractors has been recognised inter-nationally by Plimsoll-UK and has nominated MTL as 16th largest company with exceptional performance in Global Tractor Manufacturing Industry. Forbes Global magazine has included MTL in ‘Asia’s 200 Best Under a Billion Dollar Companies’. Karachi Stock Exchange has ranked MTL 3rd among top 25 companies of Pakistan in 2014.

MTL is continuously striving not only to delight its cus-tomers, but also to fulfi l its social and corporate respon-sibilities.

PIONEER PAKISTAN SEED

BY the year 2050, it is predicted that the world’s popu-lation will exceed nine billion people. That’s 150,000 new mouths to feed every single day. To address that, we need to double our food production in the next 40 years. No company is more uniquely qualifi ed to meet this com-plex challenge than DuPont with its portfolio of busi-nesses, products and services that span the food value chain.

DuPont Pioneer is the world’s leading developer and supplier of advanced plant genetics, agronomic support and services to farmers. Pioneer is focused on delivering integrated seed solutions that include elite genetics, native and biotech traits, and seed treatment options, coupled with agronomic advice and services, to help farmers manage their production risks and plant the right product on the right acre or hectare. We’re proud of our people, our history, our innovations and our success-ful customers across the more than 90 countries we serve. Together, we’re closer to meeting the challenge of achiev-ing global food security.

Pioneer is striving to increase per-acre yield, while decreasing the overall impact of farming on the envi-ronment and society. We’re actively developing prod-ucts and traits that enable more effi cient fertilizer and water use and the reduction of pesticides and fossil fuels. And we work with governments, local organisa-tions, schools and communities around the world to develop local and sustainable agriculture skills and

knowledge for growers of all ages.

MAGTECH

MAGTECH Pvt Ltd was established in 2014 having its corporate offi ce in Karachi with Principle Magnetic Technologies (Pioneers of Russian Research) based in Dubai UAE having offi ces and representatives in 25 countries since 1990s. In future, we will be expanding our footprints in all the major cities of Pakistan.

Mag Green device: It breaks down minerals into smaller particles making them more bio-available to the plant cells resulting in maximum hydration of healthy water with greater uptake of minerals that results in greater yields, larger and better end product, earlier maturation, longer shelf life, and healthier plants. It allows a reduction of amount of water needed, fertilizer and pesticides.

This Technology effectively works in the following four agriculture scenarios with the lowest cost possible: Normal Water with Normal Land; Normal Water with Saline Land; Brackish Water with Normal Land; and Brackish Water with Saline Land.

Benefi ts of Magnetic Structured Water Technology: 50% reduction in seed usage gradually between 3 gener-ations; 15%-50% increase in crop yield and better qual-ity produce; improved shelf life of produce; reduction in use of fertilizer between 25-50%.; reduction in water used for irrigation; minimised use of pesticides and her-bicides; improved size, taste, colour, smell and texture; reduction of vegetation maturity period between 7-15 days; better soil reclamation. All this without the use of nay chemicals.

Now agriculture is possible with brackish water and on saline waterlogged land. Since the magnetic structuring breaks all minerals into smaller particles, salt in the soil is broken down by the structured water, causing it to sink deep into the soil, away from plant roots, and wash away. The desalinisation happens quickly over a season, creat-ing much healthier plants, greater yields and better fi nal product.

Mag Green devices enable you to get maximum seed germination and drastic reduction in seed wastage up to 50% and it gradually increase between 3 generations. Magnetised water improves the immune system of plant because the oxygen content of magnetic water is 10% higher than ordinary water. Mag Green devices allow using Brackish Water for irrigation (up to 6000 PPM TDS).

Magnetised water created by Mag Green Devices deliver valuable benefi ts in several areas of agriculture like Poultry Farming, Dairy Farming, Animal Breeding, Fish Breeding, Bee Keeping and in horticulture. Warranty period of each device is at least 10 years.

In Pakistan, about 6.8 million hectares of land are reported to be affected by salinity and/or sodicity. Increase in the demand for the next 25 years can be met by increasing the yield from lands under cultivation and affected by salinity. It is also signifi cant that the link-ages between agricultural trade and water technology are identifi ed and analysed to better understand the positive impacts trade will have on the economy.

With Mag Green Devices a new era of technological reforms is about to dawn. We are proud to bring modern technology in Pakistan when there is a dire need to address desalination with the objective to enable salt water to be used for irrigation.

FREIGHT CONNECTION GROUP

FREIGHT Connection Group is truly a global logistics group engaged in providing quality services with the consistent improvement evolving over the years. Our core businesses are Shipping, Terminals, ISO Tanks, CFS Stations, and IT software, Relocation, Logistics and Freight Services. Freight Connection Group (A division of Rais Hassan Saadi) along with its associated partners are committed to link customer cargo to anywhere in the world.

With offi ces located in UAE, Kenya, India, Afghanistan, Qatar, Tanzania and Korea, we are very much capable of delivering the desired results along with reliability, effi -ciency and fl exibility. Our business is conducted in true professional and transparent manner which brings value to customers and makes us stand in a different league. We come with a wide range of service offering our cus-tomers a complete logistics solution whether it is by Sea, Air or Land.

We are in affi liation with the most renowned compa-nies in the world such as Rais Hassan Saadi – the pio-neers of shipping and freight related services in UAE. Moveone – a Hungarian company with multimodel logis-tics, moving and relocation services. Ntelx – a USA based company that manages Freight Traffi c Management System (NXFTMS) that manages the fl ow of freight traf-fi c into and around seaports, industrial zones, and border crossings. This gives FCG the foundation and the tools to provide the most competitive and unique services in Pakistan and across the globe.

PAKISTAN TOBACCO BOARD

PAKISTAN Tobacco Board is a statutory body setup in 1968 through an ordinance (ordinance No. 1 of 1968) by the Federal Government for specifi ed purpose, mainly to promote tobacco cultivation on scientifi c lines so as to meet the domestic demand and also for export. The Board, as per assigned functions, is regulatory-cum-research body and is not engaged in any commercial or trading business.

Pakistan Tobacco Board is a dedicated to the promo-tion and development of tobacco production and export through improved agronomic practices, education of tobacco growers, effi cient curing techniques and reduc-ing cost of production, with a view to benefi ting the tobacco growers to improve their standard of living and contribution to the economic development of the coun-try.

Research & Development: The Board has established the following research stations – two each in the province of Punjab and Khyber Pakhtumkhwa: Tobacco Research Station, Khan Garhi, Mardan; Tobacco Research Sub-Staion, Mansehra; Tobacco Research Sub-Station, Kunjah (Gujrat); and Tobacco Research Sub-Station, Okara.

Besides, Model Farms have been established in Hazro (Attock), Pishin (Balochistan), Buner and Swabi (Khyber Pakhtunkhwa) while acquisition of 400 Kanal state land for Tobacco Research Station at Jampur (Punjab) is in process.

The extension has been located at pivotal points in the tobacco-growing areas for quick dissemination of new technology to the tobacco growers in order to increase the per hectare yield, introduce new varieties possessing greater resistance against pests/diseases as well as capa-ble of yielding better quality leaf and improving the cur-ing techniques so as to bring about desirable chemical changes in tobacco leaf to be consumed for manufacture of cigarettes.

Alternative fuel sources such as coal briquettes and solar energy are being tried to minimise the use of fuel-wood in curing of FCV tobacco which will help in the reducing cost of production and forest depletion.

Export of tobacco and tobacco products: Pakistan has a long history of tobacco farming going back to about six decades since its independence. The average yield per unit area of fl ue-cured Virginia tobacco (FCV) in Pakistan has risen over the years of about 900 Kg/hect-are in 1968 to 3068 Kg/hectare in 2013-14, thus ranking among the highest in the world. The main type of tobacco

grown in Pakistan is FCV which also forms the basic and predominant input of the cigarette industry as well as the main exporting commodity. Pakistan is the 7th largest producer of the fi nest FCV tobacco in the world. Domestic requirements for FCV per annum vary about 70 million Kg while the country has the potential to produce up to 90 million Kg or even more. Almost entire demand of tobacco for cigarette manufacturing is met from locally produced FCV, DAC, WP and Burley tobaccos.

Fixation of minimum price of tobacco: The minimum indicated price (MIP) of tobaccos for the year 2015 has been fi xed (Rs/Kg) as. FCV – Plan area Rs. 170.10; FCV – sub-mountain area Rs. 194.96; Burley Rs. 134.46; Dark Air Cured (DAC) Rs. 85.00; and White Patta (WP) Rs. 68.54.

Vigilance Committee: PTB notifi es the vigilance com-mittee for supervision of tobacco marketing so as to resolve the local problems/disputes on the spot purchase depot(s) among tobacco buyer and the growers. The said committee comprises representatives of tobacco compa-nies, offi cers of PTB, Provincial Department of Agriculture and the representative of tobacco growers duly nominated by the provincial Department of Agriculture.

Types of tobaccos produced in Pakistan and their uses have been listed in the accompanying chart.

FCTC (Framework convention on tobacco control): Pakistan Tobacco Board is of the view that tobacco is a cash crop of more than 80,000 tobacco growers and their families in tobacco growing area of Swabi, Charsadda, Mardan, Buner, Mansehra, Dir, Malakand, Mianwali, Gujrat, Okara, Rajanpur, Jehlum, Vihari, Hazro, Dadu, Gadoon and Pishin. Most of these were poppy-growing areas and the growers were diverted from poppy to tobacco. In case tobacco is banned, these tobacco grow-ers may revert to poppy cultivation.

Prevention of Cultivation of Non-recommended variet-ies (NRVs) of tobacco in Khyber Pakhtunkhwa: For the last fi ve years, cultivation of Non-recommended varieties (NRVs) has become a serious problem for PTB. During the last three years, approximately 46%, 19% and 36% of total crop of tobacco, respectively, comprised NRVs. Cultivation of NRV adversely affect export of tobacco, cause losses to the manufacturers and are also injurious to the health of farmers. Despite hybrid seed from Brazil by PTB and launching of special campaigns to persuade the farmers not to cultivate NRVs, the problem has not yet sub-sided as 25 to 30 per cent NRV cultivation is pro-jected to be grown by farmers in KPK in the forthcoming tobacco crop.

Credit facilities: Tobacco is both labour-intensive and cost-oriented crop. The cost of production is very high due to exorbitant rates of fertilizer, insecticides and fuel-wood. It has been a persistent demand of tobacco-grow-ers that the bank should give interest-free agriculture production loans to farmers against their agreements with the tobacco companies, which should be recovered from their vouchers. PTB intends to extend tobacco culti-vation to FATA and Sindh. The prospects of cigar type of tobacco in costal belt of Sindh will help save foreign exchange on account of import of cigar.

DHL

RISING competition and global environment have put pressure on agri-food supply chains for Pakistani play-ers. Will smarter logistics prove a saviour? DHL is a worldwide operational company and global market leader in the logistics industry. DHL aims to work as and is considered to be ‘The Logistics Company of the World’. DHL commits its expertise in international express, air and ocean freight, road and rail transportation, contract logistics and international mail services to its customers. A global network composed of more than 220 countries and territories and about 480,000 employees worldwide offers customers superior service and quality and local knowledge to satisfy their supply chain requirements.

To many of us, Pakistan is recognised and known as agriculturally inclined country. However, it is not a sur-prise that Pakistan’s food and farming markets are a big business. Hence, agriculture plays an important role and known as one of the biggest sectors in the country and accounting for major employment. To support the agri-culture economy we need a strong supply chain and DHL Global Forwarding plays an integral part in promoting perishable agri items across the globe.

DHL Global Forwarding recognises Pakistan as a rich agri-export market. The particular sector which has seen signifi cant growth in Pakistan is agribusiness. It entails the full value chain from agricultural production/farm-ing through secondary processing, distribution and retailing to the end user/consumer (farm-to-fork con-cept). However, there is great potential in the market and exports recorded in the previous seasons highlight Pakistan’s potential to become South Asia’s major exporter. Majority of the agri-exports account to American, European and Middle Eastern markets and DHL Global Forwarding has strong presence in these regions.

The Pakistani agri sector relies on the effi cient move-ment of food, but a variety of challenges are threatening the smooth running of the supply chain. There are con-cerns because of growing population, volatile prices, food security, evolving demands of consumers and pres-sure on infrastructure. Hence, even the most agile and responsive of supply chains can face trouble. In this environment, DHL Global Forwarding tends to provide support to agri-business and open opportunities for them in the international arena. DHL control towers across the globe with 24/7 tracking facility supports the 3PL model and assist local agri-businesses in catering ever growing agri-need with effective international logistics.

Having a strong supply chain partner help improves business performance and lead towards better results. On the contrary, ineffi ciencies in supply chain results in huge amount of unidentifi ed losses which can be avoid-able. Also, research by Accenture has found that compa-nies with strong supply chains deliver 20% more perfect orders and get paid 66% faster compared to companies with weaker supply chain. We at DHL Global Forwarding believe that improved communication and collaboration are key factors for effective supply chain. The power of collaboration is such that companies (business and sup-ply chain partner) working together can outperform their peers. DHL have an approach and tends to spread the message that a collaborative supply chain can pro-vide agri-food businesses with a competitive advantage over their competition.

Most important factor is that if Pakistan’s agri-food sectors were to move ahead, then we would need to insti-tutionalise the existing players in the market. Also, we will need to highlight the importance of working with international logistics companies with appropriate global linkages. It is vital that the agri-food organisations should team up with logistics industry and strengthen their international reach. Government recognises agri-food sector as a vital industry for the economic develop-ment and progress of the country. However, the govern-ment should create supporting policies for agri-food com-panies to prosper in the global market with international supply chain partners.


All photos by Fahmi Siddiqi / White Star

