Ministry of Food, Agriculture & Livestock. Challenges for Agro-Based Exports (including SPS)...

Ministry of Food, Agriculture & Livestock


Challenges for Agro-Based Exports (including SPS)

Presentation on the Final TRTA evenby

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


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.


5

10.9

14.5

60

5.4

9.2

Export Comparison

OthersChemicalsAgri Products

Textile & Clothing Engg. Goods

Source: WTO Database & FBS

World

2003: 7,503 Billion

2.9

22 1.8

63

10.3

2003: 11.2 Billion

Pakistan

TextileEngineering

Goods

10.9

21

55

4.7

8.4

Engineering

Goods

3.1

27.61.3

58.7

9.3

Textile

2005: 14.4 Billion2005: 10,159 Billion

Growth

2003-05

35.4%

Growth 2003-05 21.0%


S # Commodities2006

2013

Value% Share

Value % Share Low Sc High Sc

Core Category 1 Textile & Garments 9.89 60.0 22-25 55.0 55.5

2 Rice 1.11 6.7 2.5-3.0 6.2 6.7

3 Leather & Leather Products 1.09 6.6 2.5-2.80 6.2 6.2

4 Sports Goods 0.35 2.1 0.90-1.0 2.2 2.2

5 Carpets & Rugs Tapestry 0.25 1.5 0.35-0.40 0.9 1.0

Development Categories8 Fish & Fish Preparations 0.20 1.2 1.00-1.20 2.5 2.6

9 Fruits & Vegetables 0.14 0.8 0.35-0.50 0.9 1.1


S # Commodities

20062013

Value

% Share

Value% Share

Low Sc High Sc

12Meat & Meat Preparations

0.02 0.1 0.10 0.2 0.2

13 Wheat 0.00 0.0 0.3-0.4 0.7 0.8

14Others (Chem/Petro/Stationery etc.)

2.79 17.0 4.77-3.98 11.9 8.4

15 Total Export 16.47 100.0 40-45 100.0 100.0

16 GDP 128.90 270-280

17 Export – GDP Ratio (%) 13 15-16 15 16


8

Afghanistan

1.1 / 3.2

UAE

1.3 / 2.6China

0.5 / 5.0

USA

4.2 / 11.0

Others

1.9 / 4.0

EU

4.5 / 9.5

Textile, Fish, Fruits & Veg, Leather, Cutlery, M & G, Chemicals & Minerals

Fruits & Veg. Ghee, Meat, Milk, Wheat, Eng. Goods, Furniture,G & J, surgical, Textile, Rice, Cutlery

Fruits & Veg, Fish, Textile Carpets, Leather,Surgical, S. Goods, Eng. Goods, M & G, G & J

Fruits & Veg, Meat, Leather, Fish, Cutlery, Rice, Sports Goods, Furniture, Eng. Goods, Pharma, M & G, G & J

Textile & Clothing, Carpets, Leather, Eng. Goods, FishSurgical Instruments, Sports Goods, Cutlery, Furniture, M&G,G & J, Rice


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


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



Unmatched demand for energy Market access on demand

side(compliance with international standards)

Compliance with social,environment and health standards

Insufficient product diversification competitiveness



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.


RiceConstraints Impeding

Exports Action Plan

Rice Consignments returned from EU because of Aflatoxin

Need to develop new varieties of rice and over come flakiness

Effective regulatory system to monitor residue level Infrastructure facilities –availability of accredited

laboratories for internationally recognized certificates Implementation by MinFAL through TRTA-II

Adequate Funds and Up-gradation of RRI of Kala Shah Kakoo and Dhokri

Timeline: 01 to 02 years Professionals be hired from foreign countries to

give trainingTimeline: Immediate

Stakeholders be on the research advisory committee

Timeline: Immediate Action: MINFAL in collaboration with

Provincial Govts.


Rice Constraints Impeding Exports Action Plan

Non-availability of quality (selected, processed, treated) seeds of existing varieties

Abundant and timely availability of best quality seeds (no duty and taxes)

Action: MINFALTimeline: Immediate

Incentivize/promote seed processing industry/ business

Action : MINFALTime Line: 01 Year

“Basmati Rice” is not yet geographically defined. India has already registered it under the Trade Mark of “Super” and is expected to acquire further market share of top basmati exports market segment

Geographical Indication (GI) of Super Basmati as a genuine product of Pakistan both in EU and USA is required

Action: MINFAL + MoC

Timeline: Immediate


RiceConstraints Impeding

Exports Action Plan

Lack of storage Facilities

Lack of quality packing material causing inferior packing presentation.Refinancing facilities not at par with other industries

Value added industries practically nonexistent

Warehousing facility of one million ton capacity available at Karachi (Pipri/Landhi may be leased out to the Rice Exporters. Action: TCP; Time Line: 01 Years

Import of zero rated packing materials for re-export purposes only be streamlined.Action: MINFAL/CBR; Timeline: 01 year

Refinancing facilities to be at par with other industriesAction: SBP; Timeline: 01 year

Develop feasibility reports for value added products, by-products like, fortified rice, pre-cooked rice, ready to eat rice, cereals, rice oil etc. Incentivize local manufacturing of quality rice machinery and programme lending scheme for technology up-gradation of rice milling & processing industry Action: TDAP; Timeline:01-02 years


Fruits & Vegetables

Export Benchmark Targets FY06 FY13

$ Bn 0.14 0.9-1.1


Constraints Impeding Exports Action Plan

Lack of quality products for export To develop and up-grade seeds of quality fruits & vegetables (Kinnow, Mango, Dates, Peach, Potato & Onion etc.) establish product specific research institutes

Action: MINFAL in collaboration with PHDEB, PARC, NIAB, NIBG & Prov. Govts.

Timeline: 01-02 years

Lack of Cool Chain System i.e. cold storages & reefer transportation

Establishment of cool chains at three levels will reduce pre and post harvest losses from 40 to around 10%. Flow diagram referred

Under the National Trade Corridor Improvement Programme (NTCIP), following initiatives will be taken:

39 modern pack houses completely automated & equipped with advanced electronic devices for packing /grading and storage plants will be set upat 31 fruits & vegetables growing areas throughout the country.

23 facilities for cold storage and controlled atmosphere storage will be established at the food production areas

Two container yards in Karachi &Lahore with a pool of 200 refrigerated containers and 50 controlled atmosphere refrigerated containers at each location will be established.


Field Heat Removal Packaging

Reefer Transport

Urban Cold Store

Seaport Cold Store

Air Port Cold Store

Local MandiBulk Transport

Whole Saler

Consumer

Retailer8%

3%

20%

2% 1%1%

4%

2%3%

7%

Post Harvest

Total Loss 10-11%3 months

Total Loss 40%3 Days

With Cool Chain

Without Cool Chain


Meat &Meat Preparation

Export Targets

Export Benchmark Target

FY 06 FY 013

$ Bn 0.02 0.10


Meat &Meat Preparation

Constraints Impeding Exports Action PlanPoor viability of organized livestock farming due to

Low reproductive efficiency of animalsLimited scope of fattening programsPresence of trade related infectious

diseasesLack of research on refinement of

vaccines (F&M,BSE etc)

and disease diagnosis

To improve viability of livestock farming action required are: Establish Livestock Production Research Institutes in

Sindh, NWFP, Balochistan and Southern Punjab Establishing mobile livestock health care units on fast

track basis. LDDB has initiated several projects for fattening farms

Poor management of public slaughter houses Public sector slaughter houses to be privatized and permission to build and operate slaughter houses in private sector be accorded


Meat &Meat preparation


By-product of slaughtered livestock not adequately processed and marketed

Foreign expertise may be acquired for establishment of slaughter house by-products plants and development of effective marketing system

Action: MINFAL and Prov. Livestock Deptts.Timeline: 01-02 years

Absence of large livestock farms Model dairy farms to be enhanced from the present 650 to 2400 by 2013

Joint ventures with foreign investors may be explored/established

Action: Prov. Livestock Deptts.Timeline: 02-03 years

Poorly managed and maintained infrastructure in livestock markets

All levies collected from livestock markets to be reinvested in these markets to improve infrastructural facilities

Meat export processing zones be established. These zones are to be regulated as disease free as per OIE requirements

(Action: Prov. Govt.)

Action: Prov. Finance and Livestock Deptts. Timeline: 02 years


Export target for Fish & Fish Preparations

Export bench mark Target

FY06 FY13

$b 0.20 2.5


Fish & Fish preparations


Inadequate intensification and diversification of inland aquaculture

Non development of coastal aquaculture

Introduction of new species with higher yield.

Introduction of intensive fish farming

R&D for fish feed and disease control

Action: Prov. Fisheries Depts.


Shrimp aquaculture along creeks and shallow waters near the coast has to be developed.

Action: MINFAL/MFD



Fish &fish preparationsConstraints Impeding Exports Action Plan

High Post Harvest Losses. No insulation in fish holds of more than

8000 fishing boats. No technical equipment e.g. Winches,

Radio, GPS, Fish Finders. Very little use of fish crates causing

crushing of fish. Polluted block ice

Un tapped fishing zone (12-20 miles). Lack of investment in big and faster

launches for deep water fishing, 12-20 nautical miles, for want of credit.

Modification of fish-holds with insulated sandwich panels and designed to accommodate fish crates.

Provision of Winches, GPS and Fish finders to decrease fishing time.

Mandatory use of fish crates in fishing boats. Plate ice plant 300 tons / day on BOO.

Action: MINFAL/MFD/Provincial Govt. & FHA

Timeline: 02-03 years Pilot project with modern technology to

manufacture new high speed fishing boats in composite material.

Adequate soft credit may be provided to the private sector for investment in boats and fishing equipment.

Action: MFD, FHA & SBPTimeline: 01 year


Fish &Fish preparationsConstraints Impeding Exports Action Plan

Lack of Tuna Fishing and Processing.

Lack of development of new fish harbors, especially in Balochistan coastal area.

Non operation of Korangi Fish harbour

Lack of adequate processing facilities for quality exports.

Tuna processing Industry through public-private partnership.Incentives need to be developed

Action: MINFALTimeline: 01-02 years

Incentives for the private sector for partnership on BOT and BOO basis Action: MINFAL/CBR/Prov.Govts

Timeline: 03 years

Immediate execution of operational plan of Korangi Fish Harbour

Action: MINFALTimeline: 01 year

Establishment of hygienic peeling facilities.

Value added fish processing industry by incentivizing private sector

Action: MINFAL & KFHA Timeline: 02 years


Fish & Fish preparations

Constraints Impeding Exports. Action Plan

High costs and irregular supply of energy for cold chains and refrigeration

Inadequate training facilities for quality fish handling, processing and marketing

Zero duty and sales tax and five year income tax exemptions as Incentives for refrigerated vehicles and manufactured insulated sandwich panels.

Action: MINFAL & MOFTimeline: 01 year

Provide credit and investment incentives for setting up captive power generation facilities

Action: MINFAL and MOFTimeline: 01-02 years

Fisheries Training Center at Karachi be strengthenedAction: MFD / Karachi Fish HarborTimeline: 01 year


Compliance of International standards

Constraints Impeding Exports

Action Plan

Progress towards compliance to the standards imposed by importing countries at the borders (SPS, IPR,CSI,) and those imposed by the customers (ISO certification, Labor, environmental standards) is slow

Sanitary & Phytosanitary (SPS) Management Review and needed amendment of Food, Plant, Animal &

Fisheries quarantine laws are to be made. Measures to address GMO issues are to be taken. Integration of agricultural (plant & animal) and health border

control institutions is to be ensured.Action: MINFALTimeline: 06-07 years

Intellectual Property Rights

To meet legal obligations under the TRIPs, speedy enforcement of IPRs (e.g. IPR violation of optic discs and patent obligations) is required.

Action: IPOTimeline: 06-07 years

Social Accountability-8000 Certification

To ensure better implementation of Human and Worker rights. awareness campaign and SA-8000 certification of exporting firms may be carried out the earliest

Action: MOCTimeline: 03-04 years


Connect to the Market

M A

R K

E T

S

P

R

O D

U

C

T

S

Products to Market

….by upgrading supply capacities and standards infrastructures

DevelopCompetitive ProductionCapability

Prove Conformity with Market

Requirements

Compete Conform Connect

TRADE CAPACITY BUILDING

Approach followed by MinFALApproach followed by MinFAL


• 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

Initiatives taken by MINFAL to address constraints


SPS Diplomac

yTechnically

demanding risk management

functionsInstitutional 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

Creation of NAPHISCreation of NAPHIS

Effective SPS ManagementEffective SPS Management


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


THANK YOU

Date post:	15-Dec-2015
Category:	Documents
Upload:	bryce-vann
View:	217 times
Download:	1 times

Ministry of Food, Agriculture & Livestock. Challenges for Agro-Based Exports (including SPS)...

Documents