Improving supply chain for
farm products
By
Ahmad Fraz Khan
October 10, 2011
ULTIMATELY, there is some good news for farmers as Punjab
wakes up to its agriculture export potential and to
sensitivities of international buyers. It has started
efforts to help farmers get international certification for
quality production, ensuring traceability of every export
item right back to the farmers, and even to trees and
animals.
As a first mark of its seriousness to pursue this paradigm
shift, which the exports have long been advocating, Punjab
has transferred Rs2 billion to the project ‘Supply Chain
Improvement of Selected Agriculture and Livestock Products’
and promised “as much additional money as required for it.”
Based on its agriculture potential and experts’ optimism for
a niche in the international market, Punjab has set a target
of $2 billion horticulture and livestock exports by 2015
which at present are stuck at mere $359 million.
Would it be able to achieve that ambitious target of almost
doubling its exports ever year? The provincial planners are
hopeful, and argue: the food requirements are changing –
people in the developed world are now more into fruits,
juices and vegetables for health reasons. It gives immense
potential to countries like Pakistan where four distinct
seasons make it possible to grow a wade range of crops.
In addition, the world population would grow to nine
billion by 2050. It would mean that the world would have an
additional population of equal to China and half of India to
feed. The food for this additional population would come
from countries like Pakistan which have huge untapped
potential.
This paradigm shift in Punjab’s perception about itself has
a history. At the turn of the century, it launched a project
the “Rejuvenation of Orchards,” which raised farmers’
awareness about potential of their orchards and increased
their ability to reclaim that potential. Model blocs of
orchards were created and farmers were trained in pruning,
fertilisation and harvesting.
To follow it up, the province launched another five-year
project called the “Fruits and Vegetable Development” in
2004.
At present, the province is running second five-year phase
of the project. During this decade, the international
community also came to Pakistan’s help and the USAID and
especially the Australians helped it in horticulture areas.
The federation also lunched the Pakistan Horticulture
Development and Export Board (PHDEB). All these initiatives
helped the province achieve a certain level of awareness and
a solid launching pad, from where it is now trying to take
off.
In January next it is planning to attend the “Green Weak” in
Germany, where over half a million buyers, traders and
general public would turn up to trade, buy and sell food
items. It has already booked a stall and started a process
of certifications through international auditors to prepare
as many farms as possible for participation.
The idea it is trying to sell is the “Traceable Pakistan.”
It is certainly a saleable point given recent international
surveys, which has shown growing international sensitivity
on traceability of exports. Many surveys have indicated that
the European buyers now want to know every minute detail
about the product they want to use and eat, including
address of the farm, its certifications, processing (factory
name and address) details, tests (irradiation, feed tests)
and logistics (mode, temperature).
All these international requirements have been clubbed under
“product traceability.” The traceability certification is
now considered as a passport to international markets and
chains.
That is precisely the point where Punjab is now moving.
Initially, it has included mango pulp, potato, tomato,
onion, cucumber, okra, bell-pepper, red-chilies, basmati
rice, parboiled rice, beef and mutton in the list of items
to be marketed at this international agriculture and
livestock exhibition.
States like Chile and Thailand have literally multiplied
their horticulture exports within years. But it became
possible for them only after achieving a certain legal,
infrastructural and awareness level at home. Pakistan is
still nowhere near to that stage.
Second, its needs to develop domestic standards for all
those products that it wants to export. Until and unless,
Punjab develops standards-sensitive domestic market, it
would be very difficult for international buyers. All those
countries who achieved some level of export, concentrated on
domestic front first.
Finally, long-term planning and commitment is required to
achieve strategic objectives.
Courtesy: The DAWN