Profit Potential from Adding Value in Agriculture Sector for Farmers
Published on: January 26, 2024.
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Value Addition in Agriculture: Unlocking Pakistan’s Economic Potential
In order to unleash the full economic potential of Pakistan’s agriculture sector, value addition is crucial. Ahtshamul Haq, a progressive farmer, emphasizes that the adoption of exceptional value addition practices is necessary for the sector to achieve desired outcomes comparable to developed nations. Currently, Pakistan still relies on outdated agricultural methods, which have been discarded by the rest of the world. Recognizing the significance of modernization, the Government of Pakistan is eager to learn from Chinese methods and machinery to propel its agricultural industry to the next level.
Muhammad Alamgir, the CEO of the National Productivity Organization (NPO), Ministry of Industries & Production, recently met with members of the Faisalabad Chamber of Commerce and Industry (FCCI) to underline the importance of value addition in agricultural products. Alamgir cited Thailand as an example, highlighting how value addition significantly boosted its dry fruits and vegetables segment. Despite not growing strawberries, Thailand has successfully established units for manufacturing strawberry and potato snacks. Inspired by Thailand’s success, Pakistan aims to replicate this approach and reduce its post-harvest losses, which currently amount to 35-40%.
Alamgir explains, “By adding value and implementing processing industries, we can reduce post-harvest losses. For instance, with a value addition of Rs10 per kg, tomatoes can be sold for Rs250 per kg.” He further supports this claim by citing Hunza, where apricot farmers used to sell their fruits for Rs200 per kg. However, after receiving training on drying methods from the Aga Khan Foundation, they were able to export the dried fruits at Rs2,000 per kilogram. Such success stories highlight the transformative power of value addition.
As for mango production, Alamgir stresses the importance of value addition in diversifying products. While India currently dominates in the supply of mango pulp, Pakistani mango pulp possesses a unique taste that can be utilized to create various products. In order to tap into this potential, the country must embrace value addition practices. Alamgir urges members of the FCCI to utilize the services provided by the NPO to leverage opportunities for value addition and mitigate losses.
Ahtsham, the progressive farmer, also emphasizes the need for Pakistan to collaborate with Chinese entrepreneurs who excel in modern machinery and value addition techniques. With antiquated methods, Pakistani entrepreneurs may struggle to compete internationally. Therefore, the adoption of advanced practices is essential for farmers and exporters to succeed in the changing global scenario.
Dr. Sajjad Arshad, Acting President of FCCI, highlights the financial losses suffered by farmers due to a lack of value addition methods. For example, a bumper crop of corn last year resulted in financial setbacks due to the absence of value addition. As it stands, Pakistan is exporting $2.5 billion worth of rice. However, by incorporating value addition, this volume could be increased to $5 billion by 2025 and $10 billion by 2030. To achieve these ambitious targets, a comprehensive strategy is needed.
Dr. Sajjad Arshad further underscores the need for Pakistan to embrace the latest trends and technology in order to enhance the value of its products. He notes that while the quality of poultry in Pakistan rivals that of the United States, the country is failing to capitalize on this advantage. Thus, a practical approach and a comprehensive government strategy are necessary to unlock the sector’s potential.
Ahtsham reiterates that China’s agricultural sector serves as a role model for sustainable practices, innovation, and technological advancements. By integrating Pakistani agriculture with Chinese farming methods, which employ drones and other advanced technologies, Pakistan can increase productivity and profitability exponentially.
In conclusion, value addition is a key factor in unlocking the economic potential of Pakistan’s agriculture sector. By embracing modern machinery, technology, and practices, Pakistan can compete internationally and significantly increase its export earnings. The support of the government, as well as collaboration with Chinese entrepreneurs, will be crucial in propelling the agricultural industry forward.
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