investment opportunities in agribusiness
TRANSCRIPT
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Investment Opportunitiesin
Agriculture & Agribusiness
By: Akram Khalid
February 2, 2008
Ministry of Food, Agriculture & Livestock
Government of Pakistan
Presentation for delegation
from Czech Republic
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Agriculture Overview
Contribution to GDP = 21.6% Labor Force Employment = 42.1%
Average Growth rate in last two decades = 4.0%(1980s - 5.4 1990s - 4.4 2001-04 - 1.12004-05 - 6.7 2005-06 - 2.5 2006-07 - 4.5%)
Contribution of different Sub-Sectors in Agriculture
a) Crops = 47.5%b) Livestock = 49.6%c) Fisheries = 1.3%d) Forestry = 1.6%
Share in Export Earnings (Raw/Processed)a) Cotton + Cotton Based Products = 64.7%b) Fruits, Rice, Fish, Leather = 18.2%
c) Others = 17.1%
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Area Distribution
Total area 79.60 million hectares
Cultivated area37.10%
Culturable waste 11.5%
Non-arable.. 31.0% .
Area under horticultural crops is about 6%(fruits sharing 69% ; vegetables 31%)
The average farm size 3.1 hectares
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Sectoral GDP share
0
10
20
30
40
50
60
1998 2005
Pe
rcentshare Agriculture
Industry
Services
Agricultural Sector Employment
0
5
10
15
20
2001-02 2003-04
Num
bers(Million)
Total
Male
Female
Fig. I-1: Sectoral GDP Share and Agriculture Sector Employment5
Employment in Agriculture Sector
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Production &Export of Fruits/ Vegetables
0
2000
4000
6000
8000
10000
12000
14000
16000
1999-
2000
2000-
2001
2001-
2002
2002-
2003
2003-
2004
2004-
2005
Quantity(000ton
Production Export Potential surplus
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Production of Priority Fruits &
Vegetables in 000 tons
Citrus 2458
Mango 1754Dates 583
Apple 351
Apricot 197
Peach 70
Plum 60
Grape 48
Potato 1568
Onion 2056
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2%
2%
1%
4%
13%23%
19%
10%8%
14%
4%
Citrus MangoDates GuavaApple Banana
Apricot GrapesPeach PearOthers
Fig.I-4: Total Area (%) of Fruits (2005-06)
2%
2%
2%
1%
3%
3%
8%
9%
21%
23%24%
2%
Onion PotatoChillies TomatoTurnip Lady Finger
Cauliflower PeasRadish BrinjalGarlic Others
Fig.I-5:Total Area (%) of Vegetables (2005-06)
Distribution by Area
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2%
3%
1%
1%
1%
30%
14%
25%9%
9%
5%
Citru
M ngo
tes
Gu
pp e
BananaApricot
Grapes
Peach
Plum
thers
Production of Fruits
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4%
2%
3%
1%
2%
1%
1%
1%6%
29%
25%
25%
Onion
Potato
Chillies
Tomato
Turnip
Lady Finger
Cauliflower
Peas
Radish
Brinjal
Garlic
Others
Production of Vegetables
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Coastline (km) 1050
Square kilometers
Marine (EEZ) 250000
Inland 79200
Rivers 31900
Dams/Canals 1500
Lakes 31400
Indus Delta 3800
Flood area 1000
Farms 600
Water Resources
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Fisheries Overview
Production 0.6 mmt (marine 63% & inland 37%)
Value $ 300 million Aquaculture45% (solely inland prod.)
Consumption:
- Domestic 0.3mmt -50%
(1.8 vs 16.1 kg/per capita pa world)
- Export 0.12mmt - 19 % ( $ 200 million)- Fish meal 0.18mmt - 31 %
Source of livelihood 400,000 fishermen
Potential for export $ 1 billion pa
Potential domestic consumption 1 mmt
Source MFD
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Prospects & Potentialof Fisheries
Base year
2005
edium growthScenario
( 5 %)
2010
High growthScenario
(10%)
2010
PRODUCTION(mmt)
arine
Inland
0.441
0.171
0.590
0.229
0.781
0.303
EXPORT
Quantity (mmt)
Value (million $)
After value addition(million $)
0.105
156
0.141
209
860
0.186
276
1137
Source FD
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Livestock in NationalEconomy
Agriculture in Pak GDP 21.6 % Livestock in Pak GDP 10.7 % Share in agri GDP 49.5 % Livestock in export 8.5 % Dependent families > 6.5 m Provides raw material for industry Social security for rural poor
Security against crop failure in barani areas Growth rates
1990s 4.5%2000-2006 3.8%
Economic Survey (2005-6)
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Livestock & Dairy Sector Potential
Parameter Base
(2004-2005)
2010 (MTDF) 2010
(High Road)
Growth rate
(%)
3.0 (milk)
2.7 (meat)
8.0 (milk)
5.1 (meat)
10.0 (milk)
8.5 (meat)
Milk
(million tons)
29.47 43.304 47.465
Meat (thousandtons)
2278 2924 3425
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Supply and Demand Issues
Demand for livestock products is increasing
Population growth rate and increased income are thereal reasons
Increase in red meat prices clearly indicate supplygap
Tremendous scope for export (rising trend eachyear)
Technology gap shows scope for increasedproduction
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Meat Availability in Pakistan
Availability 2004-05
Total eat 14.51
utton 4.74
Beef 7.13
Poultry eat 2.64
Economic Survey 2004-05
(Kg/annum)
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Domestic Scene .Continued
Sustained and robust economic growth in Pakistan (approximately 7%)
77% increase in consumption expenditure since 2003; Per capita incomeUSD 2976 (Source: Wikipedia)
Stable currency since 2001; Increasing foreign exchange reserves
Growing living standards- changing life styles, food preferences
World Bank ranks Pakistan
74 in Ease of Doing Business
19 in Protecting Investors
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Domestic Scene
Fifth largest producer of milk in the world (37.35m tons) - Only 5% isprocessed; Imported 0.299m tons milk & milk products worth Rs.2.7b in2005-06
Producer of quality mangoes, dates and citrus
Availability of high value vegetables throughout the year; exports 0.111mtons
Fourth largest exporter of dates by exporting only 13% of its dates;Production 0.583m tons
Sixth largest exporter of mangoes by exporting only 2.2 % of its mangoes;Production 1.75m tons
High growth potential in value addition productsref: FAO Stats, Economic Survey of Pakistan 06, TradeMap
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International Scene
Cutting of agriculture subsidies (export credits) bydeveloped countries by 2013
USDA and FAO commodity outlook forecastsindicate increase in agriculture commodity pricesincluding horticulture, dairy and meat
Countries having capacity to export internationalquality surpluses will eventually benefit
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Major Investment Opportunity Areas Livestock
Fisheries
Dairy
Horticulture
Value Addition
Corporate Agriculture
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Investment Opportunities Continued
Wholesale fruit & vegetable, and livestock markets
Flower markets
Tissue culture centres and quality assurance laboratories
Fresh fruits, and vegetable processing units such as washing,waxing, grading and packing
Fruit pulp, concentrate, paste and juice units
Fruits and vegetables dehydration Frozen fruits and vegetables units
Cool chains including cold storage, CA Storage, mobile refrigerationunits
Manufacturing of cold storages and refrigerated services
Greenhouse farming and greenhouse supplies
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Investment Opportunities .Continued
Flora-house for trading of cut-flowers, pots, soil, bedding plants andfoliage
Food-grade paper, plastic and tin plated can production
Packaging and printing units
Spices processing and packaging units
Organic fruit and vegetable production Certified seed and planting material production units
Poultry
Meat Processing Units
Fisheries
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Investment Opportunities
inAgriculture & Agribusiness
Thank you!
Ministry of Food, Agriculture & Livestock
Government of Pakistan