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Challenges for Agro-Based Exports (including SPS). Presentation on the Final TRTA even by Aisha Humera, Deputy Secretary Ministry of Food,Agriculture and Livestock (MINFAL). Target for the current year. To enhance the current export to GDP ratio from around 13% to 15% in 6-7 years.
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Challenges for Agro-Based Exports (including SPS) Presentation on the Final TRTA even by Aisha Humera, Deputy Secretary Ministry of Food,Agriculture and Livestock (MINFAL) Ministry of Food, Agriculture & Livestock
Target for the current year To enhance the current export to GDP ratio from around 13% to 15% in 6-7 years Ministry of Food, Agriculture & Livestock
Export projections for the year 2007-08 • Determined to implement Rapid Export Growth Strategy (REGS) and to achieve high export growth rate, export target of US$19.2 Bn is set for the year 2007-08. Ministry of Food, Agriculture & Livestock
Export Comparison World Pakistan 2003: 7,503 Billion 2003: 11.2 Billion Engineering Goods Textile 2005: 14.4 Billion 2005: 10,159 Billion Growth 2003-05 35.4% Growth 2003-05 21.0% Engineering Goods Textile Textile & Clothing Agri Products Chemicals Others Engg. Goods Source: WTO Database & FBS Ministry of Food, Agriculture & Livestock 5
UAE 1.3 / 2.6 Textile, Fish, Fruits & Veg, Leather, Cutlery, M & G, Chemicals & Minerals Afghanistan 1.1 / 3.2 China 0.5 / 5.0 Fruits & Veg. Ghee, Meat, Milk, Wheat, Eng. Goods, Furniture, G & J, surgical, Textile, Rice, Cutlery Textile & Clothing, Carpets, Leather, Eng. Goods, Fish Surgical Instruments, Sports Goods, Cutlery, Furniture, M&G,G & J, Rice Fruits & Veg, Fish, Textile Carpets, Leather, Surgical, S. Goods, Eng. Goods, M & G, G & J USA 4.2 / 11.0 EU 4.5 / 9.5 Others 1.9 / 4.0 Fruits & Veg, Meat, Leather, Fish, Cutlery, Rice, Sports Goods, Furniture, Eng. Goods, Pharma, M & G, G & J 8 Ministry of Food, Agriculture & Livestock
Pakistan’s image continues to be that of a low quality, low price, non consistent and unreliable supplier • Low to medium technology and low R&D capabilities. Infrastructure deficit in energy, water and roads etc. Poor technological infrastructure. • Absence of integrated and holistic medium to long term export strategy • Low productivity and low agriculture yield • Average quality of products and lack of brand names • Low value addition & Low level of foreign direct investment in manufacturing /exportable sectors. • Non-facilitative taxation system • High cost of doing business despite some positive indications • Lack of product and geographical diversification in exports • Weak export culture and drive. • Absence of economies of scale in engineering sector Ministry of Food, Agriculture & Livestock
Major Challenges for Agro-Based exports • Low-competitiveness on supply side • Lack of productive capacity (as a result of low investment in new machinery and technology leading to lower productivity and high costs) • Tax treatment that favors investment in the non-industrial sectors ,particularly speculative businesses i.e; stocks and real estate • Low end and low quality products • Fragmented and informally organized export industries Ministry of Food, Agriculture & Livestock
Major Challenges for Agro-Based exports • Unmatched demand for energy • Market access on demand side(compliance with international standards) • Compliance with social,environment and health standards • Insufficient product diversification • competitiveness Ministry of Food, Agriculture & Livestock
Major Challenges for Agro-Based exports • Cold Chain to minimize post harvest losses • High interest rate and lack of infrastructure • Lack of modern storage facilities • SPS requirements • Grading,packing,fumigation,testing and certification problems. Ministry of Food, Agriculture & Livestock
Rice Ministry of Food, Agriculture & Livestock
Rice Ministry of Food, Agriculture & Livestock
Rice Ministry of Food, Agriculture & Livestock
Fruits & Vegetables Export Benchmark Targets FY06 FY13 $ Bn 0.14 0.9-1.1 Ministry of Food, Agriculture & Livestock
Total Loss 10-11% 3 months Total Loss 40% 3 Days With Cool Chain Air Port Cold Store Consumer 3% 2% 1% 1% Field Heat Removal Packaging Reefer Transport Urban Cold Store 4% Seaport Cold Store 3% 2% Whole Saler Retailer 8% 7% Bulk Transport Local Mandi 20% Post Harvest Without Cool Chain Ministry of Food, Agriculture & Livestock
Meat &Meat Preparation Export Targets Export Benchmark Target FY 06 FY 013 $ Bn 0.02 0.10 Ministry of Food, Agriculture & Livestock
Meat &Meat Preparation Ministry of Food, Agriculture & Livestock
Meat &Meat preparation Ministry of Food, Agriculture & Livestock
Export target for Fish & Fish Preparations Export bench mark Target FY06 FY13 $b 0.20 2.5 Ministry of Food, Agriculture & Livestock
Fish & Fish preparations Ministry of Food, Agriculture & Livestock
Fish &fish preparations Ministry of Food, Agriculture & Livestock
Fish &Fish preparations Ministry of Food, Agriculture & Livestock
Fish & Fish preparations Ministry of Food, Agriculture & Livestock
Compliance of International standards Ministry of Food, Agriculture & Livestock
Approach followed by MinFAL TRADE CAPACITY BUILDING P R OD U C T S M A R K E T S Products to Market Develop Competitive Production Capability Prove Conformity with Market Requirements Connect to the Market Compete Conform Connect ….by upgrading supply capacities and standards infrastructures Ministry of Food, Agriculture & Livestock
Initiatives taken by MINFAL to address constraints • NAPHIS- A coordinating body for all SPS matters. • Developing strategy for cold chain in consultation with MoC under NTCIP • Developing zones for horticulture and Livestock in consultation with PHEDB and LDDB • Investing in HR development-mega project of PARC • Creation of Trade and Investment Unit in the • Economic Wing of MinFAL • Restructuring of MinFAL-Leadership role as a Knowledge based organization Ministry of Food, Agriculture & Livestock
Creation of NAPHIS SPS Diplomacy Technically demanding risk management functions Institutional structures and role clarity Suitable and applied regulation and monitoring Application of basic ‘good practices for hygiene & safety Awareness and recognition The Key Management Tasks Ahead -identified under UNIDO,WB study Effective SPS Management Ministry of Food, Agriculture & Livestock
Export Market Development • There is a need to link quality product with an appropriate market assistance required from TRTA-II through a twining arrangement of technical assistance through UNIDO and ITC • Need to develop product and market specific studies &action plans • HR development Ministry of Food, Agriculture & Livestock
THANK YOU Ministry of Food, Agriculture & Livestock