PAKISTAN FLOUR MILLS ASSOCIATION (PFMA)PRESENTATION AT CROSS BORDER MEETING AT ALMATY , KAZAKHSTAN BY GLOBAL ALLIANCE

FOR IMPROVED NUTRITION

Chairman Central - Mr. Naeem ButtChairman Punjab - Ch. Iftikhar Mutto

Technical Advisor PFMA - Tariq SarwarFood Technologist & Fortification Consultant

Regional Fortification Harmony among Pakistan- Afghanistan-KAZAKHSTAN

2

GEOGRAPHICAL STRENGTH OF PAKISTAN

3

BENEFIT TO CENTRAL ASIA

PAKISTAN SCENARIO Population, per capita GDP and per capita

wheat consumption in Pakistan, 1997 to 2016

WHEAT FOR FOOD CONSUMPTION IN PAKISTAN, 1997 TO 2012 AND ANTICIPATED DEMAND UNTIL 2018 (000 TONS)

POTENTIAL INDUSTRY PLAYERS EXPORTING TO AFGHANISTAN: EXPORT VOLUMES, %OF TOTAL EXPORTS TO AFGHANISTAN AND NUMBER OF MILLS

CALENDAR OF WHEAT CROPS IN CENTRAL ASIA

COMPARISON

INDUSRY VIEW POINT ON FORTIFICATION Increasing consumer demand is priority of

industrial partners, as this is the only way to increase sales and achieve economies of scale in recuperating the initial investment costs for fortification without having to pass a significant price increase to consumers.

Increasing consumer demand requires a

harmonized marketing strategy on the part of food producers regionally. Industrial partners must be encouraged to see fortification as key opportunity to improve marketing and sales as a promotion of quality and standard of excellence in WHO-consistent fortified foods.

PAKISTAN, CHALLENGES FOR FORTIFICATION

Govt. Controlled Wheat/Wheat Flour Price. High Micro feeder Price. High Premix Cost (although got exemption

but still difficult to pass the price of fortificants due to the controlled prices wheat/wheat flour) .

Higher Price for Fortified Flour No-Mandatory Fortification legislation

CROSS BORDER FORTIFICATION CHALLENGES

No Harmonization of standards Different Wheat Flour Qualities Competitive Wheat Prices in Exporting

Countries Border Difficulties Limited Shelf Life Competition between exporters Seasonal restrictions Difference in extraction rates

High Extraction flour for Afghanistan at 83:17 Low extraction inside Pakistan 16:24: 60.

WHICH STAKEHOLDER CAN DO WHAT ? Government Authorities – for standards

harmonization. Development of formal mechanism for

regular contact between the traders on both sides of the border

USAID/GAIN can play “facilitator” role between countries as bridge.

Pakistan Govt. should continue subsidy to match international rates throughout the Year.

13

WHICH STAKEHOLDER CAN DO WHAT ? Afghan Govt. should facilitate at borders

for ensuring the entry of fortified flour Harmonization of Same Quality Fortified

Flour by Kazak and Pakistani millers – Central Asian Regional Governments.

Regular Cross Border Meetings Quarterly Importers and Exporters Directory by

USAID/GAIN. USAID/GAIN as facilitation partner for

regional trade development.

14

REGIONAL TRADE DIAGRAM

15

CONCLUSIONS Both Exporters to Afghanistan have different borders

and different Business regions. Fortification should be made mandatory for both

exporters. We are furnishing all our Pakistan Flour Milling industry

with Micro feeders to prepare us for fortification in all 1550 flour mills all over Pakistan.

Join Business plans are recommended in all three countries, and harmonization of standards are recommended.

Joint training sessions and quarterly meeting of stakeholders with the Collaboration of Gain.

Decisions should be made at high profile joint business forum, and decisions should be followed by TRICA.

16

PAKISTAN + AFGHANISTAN + KAZAKHSTANBUSINESS PROMOTION FORUM TRICA