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ELFUTURODELAALIMENTACIÓNYRETOSDELAAGRICULTURAPARAELSIGLOXXI:Debatessobrequién,cómoyconquéimplicacionessociales,económicasyecológicasalimentaráelmundo.
THEFUTUREOFFOODANDCHALLENGESFOR
AGRICULTUREINTHE21stCENTURY:Debatesaboutwho,howandwithwhatsocial,economicandecological
implicationswewillfeedtheworld.ELIKADURARENETORKIZUNAETANEKAZARITZARENERRONKAKXXI.MENDERAKO:Munduanork,nolaetazer-nolakoinplikaziosozial,ekonomikoetaekologikorekinelikatukoduenizangodaeztabaidagaia
Experienceswithup-gradinginthemangovaluechain:AcaseofPakistanMangoIndustry
Dr.MubashirMehdi,BurhanAhmad,M.BillalAhsan
Paper#10
Apirila–Abril–April24,25,262017
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Experienceswithup-gradinginthemangovaluechain:AcaseofPakistanMangoIndustry
Dr.MubashirMehdi,BurhanAhmad,M.BillalAhsan
Abstract
Thereisalittleevidenceofpublishedliteratureonincorporatingon-farmworkersintoGlobalAgriculturalValuechainssystem.Agriculture,employing43.5%ofthetotalwork force, contributes 21% toGDP of Pakistan.Mango (MangiferaIndica)“KingofFruits”issecondmajorfruitcropinthecountry.Throughoutthepasttwodecades,apoliticalopinionhasdevelopedanewfoodsystemwhichcomprisesthewhole of value chain approach “farm to fork” have changed the agribusinessdevelopment in the rural industry development context. These types ofdevelopmentareincorporatingintoGlobalcertificationsystemsbyemphasizingonlaborrightsdevelopsthesustainabilityinvaluechains.Duetoincreasingpressureandmarketincentivesforcertifiedproducts,MangofarmsinPakistanareacquiringcertificationssuchasGlobalGAPcertificationtoproducebestorpremiumqualityfruitforthemarkets.Thisbusinessstrategyhasincreasedtheincomeofthefarmerifitisadoptedeffectivelyandefficiently.However,asustainablevaluechaindrivesa sustainable livelihood of the workers which can be ensured with a growingphilosophy of decent work under broad umbrella of ILO. The present study isdesignedtoevaluatetheeffectsofdecencyinValuechainonthelivelihoodsofon-farmworkersforcertifiedorchardsinPakistanwhichisoneofthetopfivemangoproducingcountryintheworld.
Keywords:Globalvaluechains,on-farmworkers,Decentwork,premiumquality,socialupgrading
AnoverviewofthePakistanmangoindustry
Pakistanisacountryof170millionpeople,two-thirdsofwhomresideinruralareas.TheagriculturalsectorisoneofthemainstaysofPakistan’seconomy,contributing21percentofGDP,employing45percentofthecountry’sworkforce,andbeingamajor source of foreign exchange earnings (Government of Pakistan 2010).Furthermore,theoverallperformanceofagriculturesectorwas2.0percentofGDPduringtheyear2009-10.Themajorcropssuchaswheat,cottonandriceaccountfor 32.8 per cent while and minor crops, including horticultural crops (fruit,vegetablesandcondiments),contributing11.1percenttooverallagricultureGDP(GovernmentofPakistan2010).
Horticulturalcropsalonecontribute$US1.91billion,whichis26percentofthetotalvalueofallcropsand81.8percentofthetotalvalueofminorcrops(PHDEC2005).
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Mango(MangiferaIndica),commonlycalled‘kingoffruits’, isnativetoSouthernAsia, especially Burma and Eastern India. The mango is considered a fruit ofexcellence,andthushasaprominentpositionamongthecommercialfruitsgrowninPakistan.Itisthesecondmajorfruitcropaftercitrus,withanannualproductionofaround1.72milliontonnesin2008-09(MINFAL2010).
Mangoproduction inPakistanhas increasedovertimebutthis increase ismainlyattributed to an increase in area under cultivation and not due to significantincrease in mango yield. Mango production in Pakistan increased from 519.2thousandtonnesto1816.7thousandtonnes,showinganincreaseof237percentover theyears,1970-71 to2013-14 (PBS2015).Pakistanproducesmanymangovarieties,whichdifferinharvestingtimeandintheirphysiologicalcharacteristics,especially shape, size, colour, sugar level and acidity. While production isdominated by two major varieties: Chaunsa (Mangifera India) and Sindhri(MangiferaIndica),othervarietiessuchasLangra,AnwarRatool,Dosheri,BanganPalia and Neelum are cultivated to a lesser extent. Only Chaunsa and Sindhriproduceasignificantvolumeoffruittomakethemimportantfromanexportpointofview.Themangoseasonextendsoverfivemonths,startinginmid-MayinSindhandfinishinglateSeptemberinPunjab,withlateJunetomid-Augustbeingthepeakproductionperiod.Sindhri(MangiferaIndica)varietyiscommonlyrecognisedforitsaromaandmainlygrownintheSindhprovincewhileChaunsaisfamousduetoitssweetnessandisapopularvarietyofPunjabProvince.MultanDivisioninPunjabandHyderabadDivisioninSindharefamousregionsinPakistanforthesetwomaincultivars(ChaunsaandSindhri)ofmango.ProvincewisedataofmangoproductionrevealedthatPunjabandSindharethemajormangoproducingprovinces; theycontributed1380.0 thousand tonesand370.5 thousand tons respectively. Baluchistan and NWFP (new name KhyberPukhtoonkhwa)alsoproducemangoesbuttheseprovinceshavelittleshareinthetotal production due to incompatible weather conditions. Baluchistan (8.5thousandtonnes)andNWFP(3.8thousandtonnes)tonationalmangoproductionin2014-15asshowninTable1(PBS2015).
Years Punjab Sindh NWFP Baluchistan Total1970-71 320.1 197.1 1.0 2.0 519.21975-76 350.7 241.7 0.6 2.7 595.71980-81 273.9 267.4 1.5 3.8 546.61985-86 450.6 257.2 1.5 4.1 713.41990-91 501.0 267.1 1.9 6.0 776.01995-96 598.8 291.7 2.2 15.1 907.82000-01 634.9 340.3 2.3 12.3 989.82005-06 1373.1 368.1 4.0 8.5 1753.72009-10 1356.0 360.5 3.9 8.0 1728.42014-15 1380.0 370.5 3.8 8.5 1752.8
Table1:ProductionofMango(000Tones)Pakistanproducesmanymangovarieties,whichdiffer inharvesting timeand intheir physiological characteristics, especially shape, size, colour, sugar level andacidity.Whileproductionisdominatedbytwomajorvarieties:Chaunsa(Mangifera
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India)andSindhri(MangiferaIndica),othervarietiessuchasLangra,AnwarRatool,Dosheri,BanganPaliaandNeelumarecultivatedtoalesserextent.OnlyChaunsaandSindhriproduceasignificantvolumeoffruittomakethemimportantfromanexportpointofview.Themangoseasonextendsoverfivemonths,startinginmid-MayinSindhandfinishinglateSeptemberinPunjab,withlateJunetomid-Augustbeingthepeakproductionperiod.Sindhri(MangiferaIndica)varietyiscommonlyrecognisedforitsaromaandmainlygrownintheSindhprovincewhileChaunsaisfamousduetoitssweetnessandisapopularvarietyofPunjabProvince.MultanDivisioninPunjabandHyderabadDivisioninSindharefamousregionsinPakistanfor these twomaincultivars (ChaunsaandSindhri)ofmango. Thegeographicallocations ofmango regions in the two provinces are shown in Figure 1.1 (Nextpage).PakistanisthefifthlargestproducerofmangoesprecededbyIndia,China,Thailandand Indonesia as indicated in Table 2 (FAOSTAT 2011).Marketing ofmangos ismainlyinprivatehandsandtheroleofthepublicsectorisconfinedtocreatinganenabling environment thatmay include the provision of physical infrastructure,regulatorymeasures,marketintelligenceandmarketpromotion.
Countries Production(MT)
India 13557100
China 4140290
Thailand 2469810
Indonesia 2150000
Pakistan 1728000
Table1:ChiefMangoproducingcountries
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MangovaluechainsysteminPakistan
Themajorityofgrowersselltheirproductatthefloweringstagetocontractorswhoperformakeyfruitmarketingrole.SellingouttheorchardtothecontractoristhenormalpracticeinPakistan’smangoindustry.Variousreasonshavebeenidentifiedfor this, such as farmers being reluctant to take the risk of price and incomevariation due to perishability, quality and seasonality, and lack of marketingknowledge of the product (Khushik & Smith 1996). The duration of a contractbetweengrowerandacontractorvariesfromonetothreeyears,andisnormallysettledonthebasisofthepreviousyear’sprice,productionandfloweringconditionoftrees.Contractorsarethemajorsourceoffinanceforgrowers.Theymayadvanceone-thirdofthecontractvaluebeforeharvesting,andinsomecasestheadvanceispaidinfull(Khushik&Smith1996).Contractorsperformfunctionssuchaspicking,packingandtransportoffruitfromorchard to wholesale market (Mandi). Orchard management is usually theresponsibilityofthegrower;however,somecontractors,dependingonthetypeofcontract,caninfluenceorchardmanagementpractices.But,overall,contractorsaremoreinterestedinfruitquantity,ratherthansustainableorchardmanagementandfruitquality.Sincetheownershipofthecropchangeshandswhenthecontractissigned there is little incentive for farmers to engage in optimum orchardmanagementpractices,suchas insectcontrol, that impactonfruitquality.Sincethesetwo-chainplayer,growerandcontractor,organizethelabororworkerforceatthefarmlevelthereforegotthehighlevelofresponsibilitytorecruit,trainandmonitortheon-farmlaboractivities.Contractors, in turn, have very close associations with commission agents whooperate in the wholesale markets and who are their major source of finance.Commission agents have inter-regionalwholesalemarkets contacts and possessaccurate market information, and therefore hold an important position in themarket(Badar2008).Somecommissionagentsalsoactascontractorsinwhichcasethey also hold title to the fruit. The contractors and commission agents play apivotal role in mango marketing in Pakistan, and are therefore considered keyplayersinthemarketingsystem(PHDEC2005).Wholesalerspurchasefruitfromthecommissionagentsatauctionandon-selltolocalretailers.TheactivitiesineachwholesalemarketareregulatedbyaMarketCommitteeestablishedbytheDirectorateofAgriculture.Retailersaretheterminalpointofsaletotheend-consumersandhavedifferentoutletformssuchasroad-sidefruitandvegetablesshops,donkeycarts,someexclusiveurbanfruitshops,andnationalandmultinationalsupermarketswhicharemainlylocatedinbigcities.ThedomesticmarketisthemajormarketforPakistanmangoeswithonlyfivepercentofthecropexported(PHDEC2005;Ghafoor2010).Inthecaseoftheexportmarketmost of the exporters buy from wholesale markets through a wholesaler orcommissionagentsbutsomeexportersalsobuydirectlyfromtheorchard.Someexportersalsoactascommissionagentsorviceversa.Thedomesticretailmarketsaredominatedbysmallretailshops,streethawkersand road-side stalls. Mango prices in these markets range from $US0.40 per
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kilogram(30Rupees)to$US1.0perkilogram(75Rupees),dependinguponthetypeofoutletanditslocation(higherinmoreaffluentmetropolitanareasandlessinwetmarkets).Growershareof theconsumerdollar in thesemarkets isestimatedatapproximately28percent(PIAM2007;PARC2009).Wellorganised‘superior’retailmarkets are uncommon except in big cities like Karachi, Lahore, Islamabad andFaisalabad,andtheseretailoutletsaresettingtrendsforqualityproductsamongconsumers (Mustafa & Mehdi 2007). They mainly source fruit from wholesalemarketsandsometimesdirectly fromcommissionagents.Someadditional retailmarkets for mangoes are multinational chains like Metro and national levelsuperstores. These outlets are increasing in the major cities but are still in anintroductoryphaseofprocuringpremiumqualityfruitfromreliablesources.Foodserviceoutlets includebetterqualityhotels,whichmay includemangoes in fruitbasketsinguestrooms,andrestaurantsthatservemangoesinseason.MangosaretheleadingfruitexportaftercitrusandPakistanisthefourthlargestexporterofmangoes in theworld followedbyMexico, IndiaandBrazil (Ghafoor2010).Gulfcountries(UAE,SaudiArabiaandOman)arethemajortraditionalexportmarkets. TheUnited Kingdom is themajormarket in Europe;Germany, France,Norway, Denmark, Switzerland, Singapore, Malaysia and Hong Kong are otherimportantmarkets.ThePeople’sRepublicofChinaandIranarelikelytoemergeasfutureprominentmarkets forPakistanimangoes.Exportsare freightedbyair toEurope and by sea to Gulf countries (PHDEC 2005). While Pakistan is a majorexporterofmangoesitPakistanreceivesthelowestaveragepriceperkilogramofanymajormango-producingcountryintheworld(PHDEC2005).Pakistanimangoesreceive`USD0.30perKilogramincomparisontoUSD1.59ofPhilippines,USD0.91of China, USD 40.48 of India and USD 0.46 of Thailand (Collins et al. 2006).Additionally,thepricesofthemangointhedomesticmarketsstartshighataverageRs.50perKgatthestartofthedayanddiscounteduptothehalfofthebeginningpriceattheendoftheday(Mustafa&Mehdi2007).ThereareseveralreasonsforthelowpricesreceivedforPakistanmangoesbutthemajorinfluencesarethepoorqualityandshortshelf life(PARC2009).MangovaluechainsysteminPakistanisdepictedinFigure1.
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Constraintstothedevelopmentofthemangoindustry
Consumers of Pakistan mangoes appreciate their good flavour, delicacy andnutrientvalue,anddomesticdemandisstrong(Khushik&Smith1996).ThereforethePakistanmangoindustryhasthepotentialto increaseitscontributiontothePakistaneconomy.However,asnotedpreviouslythemarketprice is lowbothindomesticandexportmarketsduetopoorquality(Collinsetal.2006;PARC2009)andthissituationwillonlygetworseasthedomesticretailmarketevolveswiththeemergence of supermarkets and high quality fruit outlets, where consumersdemandabetterquality,consistent,andreliablesourceofsupply.Theconstraintsto the development of the industry are associated with pre and post-harvestoperationsthatcanbegroupedintotwomainareas-production,andmarketingsystems.Constraintsattheproductionlevel
Constraints at the production level revolve around orchard management,harvestingpracticesandpost-harvesthandling.TraditionalorchardmanagementinPakistanperpetuatesavarietyofdiseasesthatafflictthefruit.Powderymildew(Oidiummangifera),Stemendrot,anthracnose(Glomerella cingulata-Colletotrichum gloeosporioides) and stem blight (Diplodiaspp.) are recordedas themost commondiseases that impactonall varietiesofmango(Jiskani2005;Aminetal.2008).Proper (or improper) orchardmanagement is a result of themarketing system,wherethecontractorsgainownershipofthecropatthetimeofflowering.Somecontracts include the cost of ‘pesticide spray’ among the responsibilities of thecontractor.Here,allmanagementcostsarebornebythefarmers,exceptthecostofpesticidespray.Inothercontracts‘allmanagementcosts’,i.e.ploughing,inter-
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culturing,useof inputssuchas farmyardmanure, fertiliserandpesticidesprays,andareconsideredtheresponsibilityofthecontractor.Inthiscasethedurationofthecontractisusuallymorethantwoyears.Contractorsconcentratetheirattentionon recovering money outlaid on the contract by maximizing production whileminimizingexpensesoftenattheexpenseoffruitqualityandorchardhealth.Again,dependingonthecontractconditions,growersmayavoidirrigatingtheirorchardswhenrequired,orconducttimelyinter-treeculturingandmanureapplication.This systemofdivided responsibility fororchardmanagementbetweengrowersandcontractorscontributestotheprevalenceandpersistenceofdiseaseinmangoorchardswhichiscompoundedbyharvestingandpost-harvesthandlingpractices.Traditionally, contractors are responsible for harvesting, sorting, packing andtransportofmangoes.Thesepracticesinclude:
▪ Strip harvesting – this involves harvesting fruit with a wide variation ofmaturityinordertoreduceharvestingcosts.
▪ Handpicking–inattentiontostemremovalcausessapburn,whichresultsinunattractiveblemishesontheskinofthefruit.Inaddition,thesapattractsmicroorganisms(attachedtosoilparticles)andinsects.
▪ In-fieldsortingandpacking–thefruit iscollected,placedonthegroundand sorted. This practice exposes the fruit to soil-borne contamination.Sortinginvolvestheremovalofdiseasedanddamagedfruitpriortopackinginwoodenboxes. The use ofwoodenboxes further exposes the fruit todiseasepathogens.Thewoodenboxesaredesignedtocontain10kgoffruithoweveritiscommonpracticeforthemtocontainupto13kginordertoreduce transport and handling costs. A by-product of this practice isincreasedphysicaldamageandbruisingofthefruit.
▪ Transport–theover-packedboxesremaininthefielduntiltheyareloadedontoopen trucks for transport to thewholesalemarkets. The trucks areusually overloaded, have poor suspension systems and travel on poorlymaintainedroads.Thispracticeagaincontributestophysicaldamageandbruising.Thelackofanytemperaturecontrolacceleratesripeningandthedevelopment of rot. Hand picking also attracts soil particles, as well asmicroorganisms attracted by the sugary sap; ultimately fruit appearanceandsoundnessisbadlyaffected.
Thecombinedeffectofthesetraditionalpracticesisahighlevelofproductwaste,andlowmarketprices(Aminetal.2008).Researchindicatesthatacrossthetwomainvarieties(SindhriandChaunsa),anaverage72percentofthefruitharvesteddid not reach the consumer,mainly because of physical damage or breakdown(Collins&Iqbal2010).Inthedomesticretailmarket,researchhasshownthat,25percentoffruitwasdiseased,58percentoffruitwasphysicallydamaged,and14per cent of fruit had sap burn, thus leaving only 3 per cent of fruit free of anydisorder (Mazharetal.2011). This researchwhichwas the first toquantify thelosses along the supply chain clearly shows the gains that can made in thedevelopmentofthePakistanmangoindustryifthesetraditionalpracticescanbeimproved.
TheResearch,Development andExtension institutions suchas theUniversityofAgriculture Faisalabad (UAF), Ayub Agricultural Research Institute (AARI) and
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provincial Extension Agencies have an important role to play in this respect.However, these institutions have little capacity, particularly in post-harvestmanagement,toensurethattherelevantknowledgeandskillsaredevelopedandtransferred to the mango industry (Collins et al. 2006). This deficiency is mostevidentintheprovincialextensionservices,wherethelackofaflexibleinformationdisseminationsysteminthewiderfarmingcommunity,isamajorimpedimenttotheadoptionofimprovedagriculturalsystemsandpracticesinPakistan(Davidson&Ahmad2002).
Constraintsinthemarketingsystem
As described earlier, the mangomarketing system in Pakistan is dominated bycontractors and commission agents (PHDEC 2005). The majority of contractorsobtain loans fromcommissionagents topay the initial instalment to themangogrowersandtopayanadvanceforlabourandpackingmaterial(Khushik&Smith1996).Underthissystem,oncealoanhasbeenextended,thecontractorisobligedto supplymangoes to that commission agent. The commission agents have thepowertocontrolthemangosupplythroughcontractors.Intheearlyseasontheyencouragecontractorstobringtheirmangoestothemarketastheycanearnhigherprices.Whereasinmid-seasontheyencouragethecontractorstodelaytheharvestastheycangetabetterpriceinlateseason.However,contractorshaveinadequatepost-harvestqualitymanagementknowledgetoextendtheshelflife.Asaresult,ahuge supply glut is a norm inwholesalemarkets during themid-season. Undertheseconditionscommissionagentsdonotownthetitleofthefruitandchargethecommission(2-3percentonsalesvolumes)throughopenauction.Theseattemptstomanagesupplyhaveanimpactnotonlyonpricebutonfruitquality, intermsfruitsize,maturityandwastage.Themangoesaresoldinthewholesalemarketsthroughanopenauctionconductedbytheindividualcommissionagentswherethebuyersbidforboxesofmangoesofferedforsale.Theopeningpricefortheauctionissetbythecommissionagentsonthebasisofthegrade(VIP,Super,Special)indicatedontheboxorthegeneralappearanceof first layerof fruit in thebox.During theauction, theproducerorcontractor canobserve thebiddingandknowexactly thepriceoffered for theirproduce(Khushik&Smith1996).Iftheofferistoolowthelotcanbewithdrawnbutthisoptionislimitedbytheshortshelflifeofthefruitandthelackofstoragefacilities.AsKhushik&Smith(1996)pointout,thistraditionalauctionbasedsellingsystemraises many issues in terms of bargaining power, contract enforcement andinformation access that establishes exploitation of producers as the norm.Consequently,thereisnoevidenceofavalue-orientedapproachtosupplychainmanagementandduetothesystemicimpedimentstoproduction,postharvestandmarketing(domesticandexport),theoverallperformanceofthemangoindustryinPakistandoesnotmatchthepotentialoftheindustry(Collinsetal.2006).CurrentDevelopmentandChallenges
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InspiteoftheseconstraintsthePakistanmangoindustryhaspotentialforgrowth.Opportunitiesincludeexploitingthegrowthinsupermarketsandspecialitystoresin the domestic market and accessing higher value market segments in exportmarkets by ensuring consistent and reliable quality fruit for quality-consciouscustomers. Grasping these opportunities, a process of development in Pakistanmango industry has already been undertaking under the various developmentproject over the period of last ten years For example, protocols for ControlledAtmosphere(CA)seashipmentsparticularlyforSindhrivarietyisoneofthegreatachievementinthisregards.Similarly,thedevelopmentofon-farminfrastructuralfacilitiessuchasstateoftheartmangoprocessingunitinselectedareasofPunjabandSindhareprovidingopportunitytogrowerstobecomeapartofmorevalueoriented supply chain. The growers and to some extent traders (commissionagents,exporters)havebeentryingtotransformtheirexistingchainstowardsmorevalueorqualityorientedchainsbutdidnotachieveanadequatesuccesssofar.Objectively,qualityistheaptitudeofaproducttosatisfytheneedsofitsendusersthatmustbemaintainedalongthechainsuchasfarmtoretailers(Batt,2005).Theconceptof"premiumquality"mangowasintroducedinPakistanmangoindustrywiththeinceptionofAustralia-PakistanAgricultureSectorLinkageProgram(ASLP)in 2006. Pakistani consumer’s perceptions toward best quality mangoes weredocumented in domesticmarket research activity under themango value chainproject.Theresearch indicatedthatconsumersarewillingtopay20-25percentpremiumprice forclean,blemish free, fullymaturedanduniformsizeofmango(ACIAR,2006).Itwaswitnessedthatmarketdoesexistsforsuchqualityfruitsatthehigh-endmarketinthebigmetropolitancities.Thecommonreactionamongthegrowersregardingpremiumqualitymangomarketiscontinuingtobesuccessfultoproducethedesiredmangoesforthemarket(Mehdietal.,2014).Theygothighreturnonpremiumqualitythroughdirectmarketingorsellingdirectlytothehigh-endmarket.Aspresentstudyisspecificallyseekingtheprofitabilityofproductionand sales of premium quality mangoes for the domestic markets of Pakistan,detaileddataonpre-andpost-harvestcostswascollectedandprofitmarginswerecalculated for three categories ofmangoes, tradional procured through existingmarketing system, best practices through existing marketing system and bestpracticesthroughdirectmarketingatsuperioroutlets.TheresultsarepresentedinTable3.
Results reveal that premium quality mango is more profitable compared withtraditionally procuredmangoes. The sales of premiumquality throughhigh end
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retailoutlets(exclusiveoutlet)earnedhighestprofitofabout45RsperKgwhichis22 Rs per Kg higher than the profit of selling traditional/Super quality mangothroughcommissionagentinthewholesalemarket.Itwasfoundthatprofitofbestpractices(premiumquality)mangosoldthroughhighendmarkets/superioroutletsare double than the traditionally handled mangoes. Profits of the growers arecalculatedusingequation1(π=TR–TC)bydeductingtotalfarmcostswhicharethesumofpreandpost-harvestcosts,logisticscostsandopportunitycost(workingcapital)oftheworkofthegrowersfromtherevenue.ThecostsandrevenuesaremeasuredinrupeesperkilogramhencethepriceperKgistherevenueperkgandresultingprofitisalsopresentedinRsperKg.Totalpre-harvestcostremainedthesamefortraditionalandbestpracticemangoeswhichindicatedthatthebenefitsofeconomic gain on premiumqualitymangoes did not pass on to theworkers orlabors.Withtheinductionofstateoftheartprocessingfacilitiesonsomeselectedmangofarms,thereisanopportunitytocreatemangoclustersaroundtheseleadingfarmswhichrequiremoreskilledlaborforcethanthetraditionalwaysofdoingharvestingandprocessing.Highskilledworkersmustbemaintainedwith incrementalwagerate, incentive and social protection in form of health and safety as modernoperations and techniques involves specialized tasks andprecession therefore acost. Since themangogrowers arehighly dependenton contractor for the fruitharvestingandpackingthereforelittlecontrolonthequality.Somegrowershadinitiatedtohirepermanentlaborandtrainedthemonthemoderntechniquesandpracticesandtriedtobuilddirectlinkageswiththesupermarketchainsandachievepositiveresponsebutcouldnotmadetheselinkagessustainable.Theargumentshereisthatwhileincentivestopursuethehigh-endvaluemarketsarebeneficialinthe long run, the risk of short-term economic cost and thus a danger tocompetitiveness cannot be denied (Schutzhofer 2014) for existingmango valuechainsysteminPakistanasthesocialandpoliticalobstaclestoinnovationsarelittleunderstoodsofar-astatusquothateffecttheoverallmangovaluechainsysteminPakistan.Economictheoriesandmanypreviousstudieshaveexploredthatmoreexperiencedpeoplehavethecapacitytoworkmoreefficiently(Mincer,1974).Thepresentstudyfurtherexploredthedecentworkdeficitatthefarmlevelthatexplaintheeffectofkey vactors on labour performance. It was found that coefficient of experienceshowed a positive relationshipwithwage and estimated thatwith one percentincrease in experience boosts the incomeby 12 percent andwas found slightlysignificant at 10% confidence level (p>0.10) in ceteris paribus conditions.Experienceimprovestheskillsoflabortodealwithdifferentdisordersatfarmlevelandenablesthelabortoperformtheirdailyworkaffairsinasuperiorway.
Implementationof“Occupationalsafetyandhealth” isnowagrowing trendoncertified orchards in Pakistan. There is a common perception that safety andenvironmentalregulationsenhancethecostsofproductiondirectly,thesetypeofdirecteffects dominate people’s opinions, but in fact it increases economicefficiencyof farmmakingthemcompetitivewithrespect tootherorchards.Thisvariable was taken as physical indicator for on farm labor and indicates non-significanceeffectat10%levelofconfidence(p<0.10)withaP-valueof0.17and
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thatcanbeinterpretedsignificantlyat20%levelofconfidence.Themodelpredictsthat,keepingtheeffectofothervariablesconstant, laboravailingthecharmsofsafetyequipment’s,chemicalseparaterooms,1staidboxes,hazardsigns,uniforms,propersanitationfacility,hygienemealsanddoctorcontractsmayhave13percentmoreaverageincome.
Whilethevariablesusedfor“specializedProfessional”wasfoundsignificantataconfidence level of 1% “(p<0.01) andp-valuewas 0.006.Model discovered thatprofessionalswhogotregulartrainingsmayhavepositiveimpactonincomewhichcanbeinterpretedinawaythataverageincomeforspecializedprofessionalwillincreaseby26percentinceterisparibusconditions.Theseworkersareknownasskilledagriculturalworkers.Thisresultisnotoutofboxbecauseitmakeslabortoprove their identity in the on-farm industry like machine operators, packagingexperts,harvesters,supervisorsetc.andinreturnitcontributesdirectlytocareerdevelopmentandultimatelyincome.
Moreover,mostefficientandproductivelaborcanbeacquiredbytheirsatisfactionatworkplaceaswellasafterquittingthejob.Compensationalpaymentswasanimportant variable for economic context of decent work according to ILO. Thisvariable showed a positive impact on the income and explored that laborersreceivingon-farmcompensationpaymentse.g.sicknessleaves,maternityleaves,special occasions and Employment injury benefits, are receiving on the averagemoreincomeby11percentinceterisparibusconditionsattheconfidencelevelof10%(p<0.10).Thiscanbeexplained inan indirectwaythatmoreorganizedandeconomicallysecuredlaborwillincreasefarmincomebyminimizingpreandpost-harvestlossesandininresponseincomewillbeaffectedindirectly.
Credit Facility was another dummy in economic context to check its impact onincomeandwas found tohavesignificanceeffectwasshownby thisvariableatconfidence level of 5 % (p<0.05) explaining that average income for workersenjoyingcreditfacilitymaybeincreasedby14percentinceterisparibusconditions.
Unionization is understood as a major factor in wage determination due tocollectivebargainingpowerandworkers’representation.“Laborunions”wastakenas firstdummyvariable in social contextofdecentwork toassess its impactonincome was found slightly significant at 1 % level of confidence (p<0.01) andindicates that laborworkingunder thecoverof laborunionizationhavepositiveimpactontheirincomeandinterpretedasworkersemployedatfarmshavinglaborunionsmayhaveontheaverage20percentmoreincomeunlikethenon-certifiedfarmsnotallowinglaborunions.
Itisnotsurprisingthat“casteharassment”hasanegativeimpactontheincomeoflaborers.Accordingtoresultsofourmodel,Workersharassedoncastebasismayhaveontheaverage18percentdecreasedincome,assumingtheeffectsofothervariablesconstant.Itistakenasamajorfactorduringtheremunerationofwagesin developing countries especially in the South Asia (Das & Dutta, 2007). Thevariablewasfoundhighlysignificantat1%levelofconfidence(p<0.01).Therefore,implementationofsocialrightsregulationsshouldbeestablishedbyGovernmentsaccordingtoILOdecentworksustainabledevelopmentgoal#8thatwillultimatelyaddressasdeterminantsofincome.Directlaborlawsforon-farmworkersshould
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bedevelopedbygovernmentswhicharenotavailableassuchinPakistanbutIndiahasimplementedsomelegislationsforon-farmlabor.
GovernmentisoftentheprincipalactorinruralindustrydevelopmentinterventionsindevelopingcountriesbecauseofitsimpactonreformsviaitsregulatorypowersandR&Dinstitutions(Rondinelli1983;WorldBank2010).Itwasfoundthatthereis a lack of labor policy for rural industryworkerswhichwas one of themajorimpediments to improving the competiveness of agribusiness firms in Pakistanunderthenewglobalmarketchallengesfacingthem.
Conclusion
Thecertifiedorchardsaredrivenbytheglobalvaluechainsystemunderthequalitystandards;theyhavemorepotentialandprospectivetoimprovethelivelihoodoftheon-farmworkers.Fromaruralindustrydevelopmentprospective,thereisadireneed of appropriate policy development and intervention through participatoryapproachintheindustrytomodifytheirtraditionalpractices,cooperatewitheachotherandjointlyinvestintheirfuture.
References
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NazioartekoHizketaldiaELIKADURARENETORKIZUNAETANEKAZARITZARENERRONKAKXXI.MENDERAKO:
Munduanork,nolaetazer-nolakoinplikaziosozial,ekonomikoetaekologikorekinelikatukoduenizangodaeztabaidagaia
InternationalColloquiumTHEFUTUREOFFOODANDCHALLENGESFORAGRICULTUREINTHE21stCENTURY:
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April24th-26th.EuropaCongressPalace.VitoriaGasteiz.Álava.BasqueCountry/Europe
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