common facility center

8/13/2019 Common Facility Center

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Pakistan Horticulture Development & Export Company

Ministry of Commerce, Government of Pakistan

Common Facility Centresfor Horticulture Products

Seminar on Agriculture

Monday 28-03-2011


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A. Supply Chain Management

i) Facilitation & Support on international compliances forfood quality & safety

ii) Capacity building of stakeholders through trainings &technical assistance

iii) Product Development & Certifications

B. Marketing

i) Market Intelligence & Information Dissemination

ii) Product & Market Diversification

iii) Linkages Development & Trade Delegationsiv) Trade Dispute Settlement

C. Business Development

i) Supply Chain Infrastructure

ii) Value Addition

Objectives & Operational Divisions


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Requirement of Common Facility Centres

Current Horticulture Production is (for 2008-09) 15.0 million tons. Based on domestic market ratesof fruits and vegetables, its total worth is estimated at around Rs 225 billions($2.60 billion).

Among other things, one of the main constraint of horticulture sector is heavy post harvest lossesestimated at 20-40 % mainly attributable to poor/ less than satisfactory infrastructure for postharvest treatment of horticulture produce e.g., pack houses, cold stores & refrigerated transport.

Compliance of SPS requirements of the importing countries requires infrastructure like, hot watertreatment, cold treatment, irradiation, vapour heat treatment etc. besides Global GAP, HACCP, ISO22000 certification.

Since, the above said infrastructure is costly, establishment of common facility centres is theappropriate solution.

Collection Points being established by PHDEC is a step in this direction. Paras Foods and Apple

Grading Plant at Quetta are other CFCs under PHDEC.

PHDEC has entered into a joint venture with a private sector partner for processing of Fresh Fruits& Vegetables Processing at Karachi.

PHDEC, on directive of Taskforce on NTCIP / Ministry of Commerce, has been working on a megaproject comprising common facility centres for horti products.


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Requirement of Processing Units

(000)Tones

Commodity Production

(2009-10)

MarketableVolume @

75% ofProduction

Export(2009-

10)

ExportPotential

ExistingNo. ofUnits

TotalAnnualExisting

Capacity

Gap V/Savailablecapacity

No. ofUnits

Required

Citrus 2395 1796 361 400 110 495 -95

Mango 1875 1406 85 200 9# 27 173 23

Dates (fresh& dried) 575 431

(6+115) (25+125) 19 10 15 15

SeasonalVegetables 3508 2631 86 120 0 0 100 17

Based at full operation, Based on 5-10 tons/hr capacity,

For fresh Dates based on 1 ton/hr capacity, Based on 3 ton/hr capacity# Including projects being supported by FIRMS-USAID


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Requirement of Cold Stores

(000Tons)

Clusters 1Production(2009-10)

Marketable Volume@ 80% ofProductio

n

StorageRequireme

nt

Stores Available InPakistan

Gap/Requirements 4

Capacity

No. ofUnits1

Gap inCapacity

No. of Units

Kinnow 2395 1796 539 194 119 345 115

Mango 1875 1406 70 25 15 46 23

Apple 459 344 138 34 21 103 34

Other Fruits 2451 1838 551 172 105 380 190

Potato 2540 1905 762 323 197 439 146

Other Vegetables 5320 3990 798 169 103 629 315

Total 15040 11280 2858 916 560 1942 708

1 Data on commodity wise storage is not available , these are onlyestimates based on crop cluster of the relevant areas and judgement.

This has been estimated on the basis of shelf/storage life of therelevant product.

Available storage capacity has been worked on basis of average capacity of 1,637 tons/unit.

Capacity of the required storages has been assumed at 1000 tons/unit. However, storage period has been taken

on the basis of storage/shelf life of various products. This has been estimated on the basis of shelf/storage life ofthe relevant product.


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a) 39 Modern pack-houses(including cold storage facilities at 31 locations)

Products: Kinnow, Mango, Apple, Dates, Banana, Apricot, Peach, Plum, Grapes,Potato, Onions, Tomato and Seasonal vegetables

b) 23 Cold storages(CA & VS Storages at 23 locations 13-production areas, 7-airports, 3- seaports)

c) 2 Reefers/container yards(with parking capacity for 200 containers & 50 CAcontainers each at Lahore & Karachi)

d) 6 Testing labs at different locations (production areas)

Project Scope

PHDEC, with the help of IPDF, has developed a project comprising 70 units to beestablished as common facility centers on the basis of Public Private Partnership.The brief detail are given here under:

Cool Chain System (CCS) Project underNational Trade Corridor Improvement Program


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PunjabKPK BalochistanSindh

FCFF FCFE FCFF FCFE

NPV (Rs. in million) 4,842 2,928 4,385 2,791

IRR (%) 28% 38% 31% 44%Payback( years) 6.4 5.6 5.9 4.9

DSCR (times) 0.6 18.6 0.8 23.4

LLCR (times) 3.0 3.39

PLCR (times) 8.08 9.57

Benefit to Cost Ratio 2.41 2.43

Financial Indicators

Under approval process (for concessions/incentives ) after which EOIwould be invited from potential investors.

PHDEC will be Coordinating/Monitory body on behalf of Govt.

IPDF is assisting in project formulation/marketing and implementation

Project Status

Cool Chain System (CCS) Project underNational Trade Corridor Improvement Program


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PARAS Foods

This is a joint venture of PHDEC & PAEC (Pakistan Atomic EnergyCommission). The main objective of the project is to act as a commonfacility centre for irradiation of horticulture products (fruits, vegetables,spices & herbs etc) Its major purpose is to achieve dis- infestations,extend shelf life of produce and meet quarantine (SPS) requirements of

the importing countries. It is a joint venture of PHDEC and PAEC.

Project Scope

Project cost (approved) Rs. 78.127 Million.Date of Approval 22-09-2004EDF Funds Rs. 60.080 Million.Date of Funds Release 08 -04 - 2005Date of Commencement June 2006

Cost Incurred Rs. 95.640 Million (approx.)Cost beyond EDF funds has been financedby equity/payables to PAEC/ATCOP

Project Cost

Project has been in operation since June 2009. Recently, its marketingactivities have been out- sourced to a private sector party to increaseits capacity utilization / revenue generation.

Project Status


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PARAS Foods


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Apple Grading Plant - Quetta

Project Scope Renovation & Up-gradation of old apple grading plant. Theproject is to be run as common facility centre.

Location Agri Research Institute, Sariab Road,Quetta.

Project Cost Rs. 20.35 million

Rs. 6.35 million Machinery (Funded by EDF)

Rs. 15.0 million Land & Building (Provided by Agriculture Dept. Balochistan)

EDF Funds Rs. 6.35 million

Project Status Operational since Aug 2008 while Cold store is under construction

Despite efforts to motivate private sector, the project has not startedcommercial operation mainly due to poor law & order situation in thearea and non availability of working capital. To attract privatesector partners, advertisement will be placed in newspapers shortly.


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Apple Grading Plant - Quetta


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This is a joint venture between Govt. of Pakistan ((through PHDEC) and DurraniAssociates . The management of the plant would be with private partner. Thescope of processing activities includes sorting washing/cleaning, hot watertreatment, cold treatment, grading, packing, and storage of various products,mainly for following products:Hot water treatment:Mango, Grapefruits, Capsicum,Tomato & Chilies etc. This

would result in commercialization of sea shipments of mango/other at larger scale.Chilling treatment:Kinnow, cabbage, cauliflower, Capsicum, Green chilies,Cucumbers etc

Project Scope

Location : Gadap Road, Karachi (SindhPlant Capacity : 15 tons/hr; 150 working days/annum

Common Facility Centre for Fresh Fruits &Vegetables Processing at Karachi

Project Cost Rs. 177.505 million

Financing Plan

Durrani Associates Rs. 88.754

PHDEC (EDF) Rs. 88.753

IFRR : 47.47%Pay Back : 3.1 Years

Break-even : 49.32% (1st Year)Net Present Value : Rs. 363.253 million

Financial Indicators


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Dates Processing Plant at Khairpur

Fresh dates processing facility comprising of Storage, Fumigation,Cleaning & Washing, Drying, and Sorting & Grading & Packing. Theproject will be implemented under PPP mode. In this connection, an MOUsigned with Sindh Board of Investment & Agriculture Department, Sindh.

Project Scope

The plant will have a processing capacity of 1.5 tons per hour or

3,375 tons per year (based on two shifts and 5 monthsoperation) at 100% capacity level.

Processing

Capacity

Revised Total Project Cost = Rs. 91.375 millionRevised Project Cost Excl Land = Rs. 88.075 millionFunds Available = Rs. 20.000 millionShortfall/Funds Requirements = Rs. 71.375 million

Project Cost

FinancialIndicators

IFRR 33.7 %NPV (at 15 %) 77.493Average rate of return 27.99Pay back period 2.87 yearsBreakeven capacity 28%

Project Status PHDEC & SBI jointly are working on this project


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Support / Suggestions for Hoticulture

Support for Common Facility Centers for processing of fresh fruits & vegetables

Approval of Cool Chain System Project by CDWP/ECNEC on fast track basis.

Extension of mark-up support facility (through Export Development Fund) toPack Houses & Value Addition units.

Resolution for shortage of Controlled Atmosphere (CA) and Reefer containersfor sea shipments.

Resolution for inadequate air cargo space.

Special air freight rates for export of mangoes.

Financial support to farmers/exporters Loan Guarantees Revolving credit (seasonal)


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www.phdeb.org.pk


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PROPOSED SITES FOR PACK HOUSES WITH COLD STORAGEFACILITIES

Commodity*Pack House /Cold

Store

ProcessingCapacity (MT Cold Storage

Capacity (MT)City/Area Province

Kinnow 1 PH & 1 CS (20 t / h) 5000 (10 X 500) Bhalwal Punjab

Kinnow 1 PH & 1 CS (5 t/h) 3000 (6 X 500) T.T. Singh** Punjab

Kinnow 1 PH & 1 CS (5 t/h) 3000 (6 X 500) Mandi Bhaudin** Punjab

Mango 3 PH & 3 CS (8-10 t/h) 1000 (4X250) Multan Punjab

Mango 2 PH & 2 CS (8-10 t/h) 1000 (4X250) R.Y.Khan Punjab

Mango 2 PH & 2 CS (8-10 t/h) 1000 (4X250) Muzafar Garh Punjab

Mango 1 PH & 1 CS (8-10 t/h) 1000 (4 X 250) MirpurKhas Sind

Mango, Citrus & Vegetable 1 PH & 1 CS (5 t/h) 2000 (4 X 500) Khanewal Punjab

Mango + Banana Ripening

Facility

1 PH & 1 CS

(8-10 t/h)

1500 (3 X 500) Hyderabad

Sind

Apple 1 PH & 1 CAS (5 t/h) 3000 (6 X 500) Peshawar NWFP

Apple & Grapes 1 PH & 1 CAS (5 t/h) 2000 (4 X 500) Quetta Balochistan

Peach, Apple 1 PH & 1 CAS (10-12 t/h) 4000 (8 X 500) Swat NWFP

Apple, Apricot 1 PH & 1 CAS (10-12 t/h) 1500 (3 X 500) Kalat Balochistan

Apple, Apricot 1 PH & 1 CAS (10-12 t/h) 2000 (4 X 500) Kila Saifullah Balochistan


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PROPOSED SITES FOR PACK HOUSES WITH COLD STOREFACILITIES

Commodity*Pack House /Cold

Store

ProcessingCapacity

(MT

Cold StorageCapacity(MT)

City/Area Province

Apple, Apricot, Peach &Grapes

2 PH & 2 CAS(10-12 t/h)

2000 (4 X 500) PishinBalochistan

Apple & Grapes 1 PH & 1 CAS (5 t/h) 2000 (4 X 500) Mastung Balochistan

Apple, Apricot 1 PH & 1 CAS (5 t/h) 1000 (4 X 250) Loralai Balochistan

Apple, Apricot 1 PH & 1 CAS (10-12 t/h) 2000 (4 X 500) Zhob Balochistan

Dates 1 PH & 1 CS (4 t/h) 5000 (10X500) Panjgur Balochistan

Potato 2 PH & 2 CS (10 t/h) 2000 (4 X 500) Okara Punjab

Potato 2 PH & 2 CS (10 t/h) 2000 (4 X 500) Sahiwal Punjab

Potato 1 PH & 1 CS (10 t/h) 2000 (4 X 500) Pak Pattan Punjab

Potato 1 PH & 1 CS (10 t/h) 1000 (4 X 250) Sialkot Punjab

Potato 1 PH & 1 CS (10 t/h) 1000 (4 X 250) Kasur Punjab

Onion I PH & 1 VS (10 t/h) 1000 Hyderabad Sind

Onion 1 PH & 1 VS (10 t/h) 1000 Sanghar Sind

Onion I PH & 1 VS (10 t/h) 1000 Chaghi Balochistan

Onion 1 PH & 1 VS (10 t/h) 1000 Kharan Balochistan

Vegetable 1 PH & 1 CS (5 t/h) 2000 (4 X 500) Sheikhupura** Punjab

Vegetable 1 PH & 1 CS (5 t/h) 2000 (4 X 500) Gujranwala** Punjab

Vegetable 1 PH & 1 CS (5 t/h) 2000 (4 X 500) Faislabad** Punjab

Vegetable 1 PH & 1 CS (5 t/h) (5 t/h) 2000 (4 X 500) D.I. Khan** NWFP

Total 3969,000

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Back


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PROPOSED COLD STORAGES AT AIRPORTS & SEAPORTS

Air Ports Capacity Cold Store +Freezer Unit (Tons)

Products Remarks

Karachi 500 (5 x 100)----

Lahore 300 (3 x 100) Extendable to 500 tons

Faisalabad 200 (2 x 100) Extendable to 300 tons

Multan 200 (2 x 100) Extendable to 300 tons

Quetta 200 (2 x 100) Extendable to 300 tons

Peshawar 200 (2 x 100) Extendable to 300 tons

Islamabad 200 (2 x 100) Extendable to 300 tons

Total = 7 1,800

Sea Ports

Fruits and vegetables, Meat, frozenfood and pharma products

Bin QasimKarachi Port 5000 (10 x 500) ----

KPT Karachi Port 5000 (10 x 500) ----

Gawadar Port* 5000 (10 x 500)

Total = 3 15,000----


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Postharvest Losses in Apples ( Swat)


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Postharvest Losses in Peaches ( Swat)


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Post Harvest LossesCrops Post Harvest Losses (%)

Fruits

Citrus 15

Mango 25

Dates 35

Apple 14Pear 15

Peach 15

Plum 25

Apricot 25

Other fruits 24.4Vegetables

Potato 15.2

Onion 20

Tomato 40

Other vegetables 30.5

Ibrahim & Anwar, 2004, Horticulture Education, Extension & Training System in Pakistan


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A. Supply Chain Management

i) Facilitation & Support on international compliances forfood quality & safety

ii) Capacity building of stakeholders through trainings &technical assistance

iii) Product Development & Certifications

B. Marketing

i) Market Intelligence & Information Dissemination

ii) Product & Market Diversification

iii) Linkages Development & Trade Delegations

iv) Trade Dispute Settlement

C. Business Development

i) Supply Chain Infrastructure

ii) Value Addition

Operational Divisions

common facility center

Documents