Investment Opportunities in Agribusiness

8/6/2019 Investment Opportunities in Agribusiness

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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


2/23

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%


3/23

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


6/23

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


18/23

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


19/23

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


20/23

Major Investment Opportunity Areas Livestock

Fisheries

Dairy

Horticulture

Value Addition

Corporate Agriculture


21/23

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


22/23

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


23/23

Investment Opportunities

inAgriculture & Agribusiness

Thank you!

Ministry of Food, Agriculture & Livestock

Government of Pakistan

Documents

Investment Opportunities in Agribusiness