Investment Opportunities in Agriculture

1
Investment Opportunitiesin Agriculture
Agribusiness
Presentation for delegation from Czech Republic
February 2, 2008
Ministry of Food, Agriculture
Livestock Government of Pakistan

• By Akram Khalid

2
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 - 1.1
• 2004-05 - 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
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

4
Employment in Agriculture Sector
5
Production Export of Fruits/ Vegetables
6
Production of Priority Fruits Vegetables in
000 tons
7
Distribution by Area
8
Production of Fruits
9
Production of Vegetables
10
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
11
Fisheries Overview

• Production 0.6 mmt (marine 63 inland 37)
• Value 300 million
• Aquaculture 45 (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
12
Prospects Potential of Fisheries
Source MFD
13
Livestock in National Economy

• 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 gt 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)

14
Livestock Dairy Sector Potential
15
Supply and Demand Issues

• Demand for livestock products is increasing
• Population growth rate and increased income are
  the real reasons
• Increase in red meat prices clearly indicate
  supply gap
• Tremendous scope for export (rising trend each
  year)
• Technology gap shows scope for increased
  production

16
Meat Availability in Pakistan
(Kg/annum)
Economic Survey 2004-05
17
Domestic Scene .Continued

• Sustained and robust economic growth in Pakistan
  (approximately 7)
• 77 increase in consumption expenditure since
  2003 Per capita income USD 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
Domestic Scene

• Fifth largest producer of milk in the world
  (37.35m tons) - Only 5 is processed Imported
  0.299m tons milk milk products worth Rs.2.7b in
  2005-06
• Producer of quality mangoes, dates and citrus
• Availability of high value vegetables throughout
  the year exports 0.111m tons
• 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 products
• ref FAO Stats, Economic Survey of Pakistan 06,
  TradeMap

19
International Scene

• Cutting of agriculture subsidies (export credits)
  by developed countries by 2013
• USDA and FAO commodity outlook forecasts indicate
  increase in agriculture commodity prices
  including horticulture, dairy and meat
• Countries having capacity to export international
  quality surpluses will eventually benefit

20
Major Investment Opportunity Areas

• Livestock
• Fisheries
• Dairy
• Horticulture
• Value Addition
• Corporate Agriculture

21
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 refrigeration units
• Manufacturing of cold storages and refrigerated
  services
• Greenhouse farming and greenhouse supplies

22
Investment Opportunities .Continued

• Flora-house for trading of cut-flowers, pots,
  soil, bedding plants and foliage
• 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
Investment Opportunities


in Agriculture
Agribusiness

• Thank you!

Ministry of Food, Agriculture
Livestock Government of Pakistan