1. 00 Pakistan Horticulture Development & Export Company Ministry of Commerce, Government of Pakistan Common Facility Centres for Horticulture Products Seminar on Agriculture Monday 28-03-2011

2. 1 1 A. Supply Chain Management i) Facilitation & Support on international compliances for food quality & safety ii) Capacity building of stakeholders through trainings & technical assistance iii) Product Development & Certifications B. Marketing i) Market Intelligence & Information Dissemination ii) Product & Market Diversification iii) Linkages Development & Trade Delegations iv) Trade Dispute Settlement C. Business Development i) Supply Chain Infrastructure ii) Value Addition Objectives & Operational Divisions

3. 2 Requirement of Common Facility Centres  Current Horticulture Production is (for 2008-09) 15.0 million tons. Based on domestic market rates of fruits and vegetables, its total worth is estimated at around Rs 225 billions($2.60 billion).  Among other things, one of the main constraint of horticulture sector is heavy post harvest losses estimated at 20-40 % mainly attributable to poor/ less than satisfactory infrastructure for post harvest treatment of horticulture produce e.g., pack houses, cold stores & refrigerated transport.  Compliance of SPS requirements of the importing countries requires infrastructure like, hot water treatment, cold treatment, irradiation, vapour heat treatment etc. besides Global GAP, HACCP, ISO 22000 certification.  Since, the above said infrastructure is costly, establishment of common facility centres is the appropriate solution.  Collection Points being established by PHDEC is a step in this direction. Paras Foods and Apple Grading Plant at Quetta are other CFC’s under PHDEC.  PHDEC has entered into a joint venture with a private sector partner for processing of Fresh Fruits & Vegetables Processing at Karachi.  PHDEC, on directive of Taskforce on NTCIP / Ministry of Commerce, has been working on a mega project comprising common facility centres for horti products.

4. 3 Requirement of Processing Units (000)Tones CommodityProducti on (2009- 10) Marketable Volume @ 75% of Production Export (2009- 10) Export Potential Existing No. of Units Total Annual Existing Capacity¹ Gap V/S available capacity No. of Units Required Citrus23951796361400110495-95 Mango18751406852009#2717323 ² Dates (fresh & dried)575431 (6+115 )(25+125)19³10³1515 ³ Seasonal Vegetables35082631861200 0100 17 ⁴ ¹ Based at full operation, ² Based on 5-10 tons/hr capacity, ³ For fresh Dates based on 1 ton/hr capacity, ⁴ Based on 3 ton/hr capacity # Including projects being supported by FIRMS-USAID

5. 4 Requirement of Cold Stores (000Tons) Clusters 1 Productio n (2009-10) Marketabl e Volume @ 80% of Productio n Storage Requireme nt ² Stores Available In Pakistan Gap/Requirements 4 Capacity ³ No. of Units1 Gap in Capacity No. of Units ⁴ Kinnow 2395 1796539194119345115 Mango 1875 14067025154623 Apple459344138342110334 Other Fruits 24511838551172105380190 Potato25401905762323197439146 Other Vegetables5320 3990798169103629315 Total150401128028589165601942708 1 Data on commodity wise storage is not available, these are only estimates based on crop cluster of the relevant areas and judgement. ² This has been estimated on the basis of shelf/storage life of the relevant product. ³ Available storage capacity has been worked on basis of average capacity of 1,637 tons/unit. ⁴ Capacity of the required storages has been assumed at 1000 tons/unit. However, storage period has been taken on the basis of storage/shelf life of various products. ⁴ This has been estimated on the basis of shelf/storage life of the relevant product.

6. 5 a)39 Modern pack-houses (including cold storage facilities at 31 locations) Products: Kinnow, Mango, Apple, Dates, Banana, Apricot, Peach, Plum, Grapes, Potato, Onions, Tomato and Seasonal vegetables b)23 Cold storages (CA & VS Storages at 23 locations 13-production areas, 7-airports, 3- seaports) c) 2 Reefers/container yards (with parking capacity for 200 containers & 50 CA containers each at Lahore & Karachi) d)6 Testing labs at different locations (production areas) Project Scope PHDEC, with the help of IPDF, has developed a project comprising 70 units to be established as common facility centers on the basis of Public Private Partnership. The brief detail are given here under: Cool Chain System (CCS) Project under National Trade Corridor Improvement Program

7. 6  Project will be implemented in two components i) Punjab & Khyber Pakhtunkhwa ii) Sindh & Balochistan  Project will be implemented under Public Private Partnership  The private sector will make the investment  Government will provide incentives  Testing labs: will be established in public sector (Rs in million) Description Punjab – NWFP Bal.– Sindh Total Total Project Cost 7,513 4,993 12,506 Project Cost Project Implementation Strategy Cool Chain System (CCS) Project under National Trade Corridor Improvement Program

8. 7 Punjab – KPKBalochistan – Sindh FCFFFCFEFCFFFCFE NPV (Rs. in million)4,8422,9284,3852,791 IRR (%)28%38%31%44% Payback( years)6.45.65.94.9 DSCR (times)0.6 – 18.60.8 – 23.4 LLCR (times)3.03.39 PLCR (times)8.089.57 Benefit to Cost Ratio2.412.43 Financial Indicators  Under approval process (for concessions/incentives ) after which EOI would be invited from potential investors.  PHDEC will be Coordinating/Monitory body on behalf of Govt.  IPDF is assisting in project formulation/marketing and implementation Project Status Cool Chain System (CCS) Project under National Trade Corridor Improvement Program

9. 8 PARAS Foods This is a joint venture of PHDEC & PAEC (Pakistan Atomic Energy Commission). The main objective of the project is to act as a common facility centre for irradiation of horticulture products (fruits, vegetables, spices & herbs etc) Its major purpose is to achieve dis- infestations, extend shelf life of produce and meet quarantine (SPS) requirements of the importing countries. It is a joint venture of PHDEC and PAEC. Project Scope Project cost (approved)Rs. 78.127 Million. Date of Approval22-09-2004 EDF FundsRs. 60.080 Million. Date of Funds Release08 -04 - 2005 Date of Commencement June 2006 Cost Incurred Rs. 95.640 Million (approx.) Cost beyond EDF funds has been financed by equity/payables to PAEC/ATCOP Project Cost Project has been in operation since June 2009. Recently, its marketing activities have been out- sourced to a private sector party to increase its capacity utilization / revenue generation. Project Status

10. 99 PARAS Foods

11. 10 Apple Grading Plant - Quetta  Project ScopeRenovation & Up-gradation of old apple grading plant. The project is to be run as common facility centre.  LocationAgri Research Institute, Sariab Road,Quetta.  Project Cost Rs. 20.35 million  Rs. 6.35 million – Machinery (Funded by EDF)  Rs. 15.0 million – Land & Building (Provided by Agriculture Dept. Balochistan)  EDF Funds Rs. 6.35 million  Project Status Operational since Aug 2008 while Cold store is under construction Despite efforts to motivate private sector, the project has not started commercial operation mainly due to poor law & order situation in the area and non availability of working capital. To attract private sector partners, advertisement will be placed in newspapers shortly.

12. 11 Apple Grading Plant - Quetta Apple Grading Plant - Quetta

13. 12 This is a joint venture between Govt. of Pakistan ((through PHDEC) and Durrani Associates. The management of the plant would be with private partner. The scope of processing activities includes sorting washing/cleaning, hot water treatment, cold treatment, grading, packing, and storage of various products, mainly for following products: Hot water treatment: Mango, Grapefruits, Capsicum,Tomato & Chilies etc. This would result in commercialization of sea shipments of mango/other at larger scale. Chilling treatment: Kinnow, cabbage, cauliflower, Capsicum, Green chilies, Cucumbers etc Project Scope Location : Gadap Road, Karachi (Sindh Plant Capacity : 15 tons/hr; 150 working days/annum Common Facility Centre for Fresh Fruits & Vegetables Processing at Karachi Project CostRs. 177.505 million Financing Plan Durrani AssociatesRs. 88.754 PHDEC (EDF) Rs. 88.753 IFRR :47.47% Pay Back :3.1 Years Break-even :49.32% (1st Year) Net Present Value :Rs. 363.253 million Financial Indicators

14. 13 Dates Processing Plant at Khairpur Fresh dates processing facility comprising of Storage, Fumigation, Cleaning & Washing, Drying, and Sorting & Grading & Packing. The project will be implemented under PPP mode. In this connection, an MOU signed with Sindh Board of Investment & Agriculture Department, Sindh. Project Scope The plant will have a processing capacity of 1.5 tons per hour or 3,375 tons per year (based on two shifts and 5 months operation) at 100% capacity level. Processing Capacity Revised Total Project Cost = Rs. 91.375 million Revised Project Cost Excl Land =Rs. 88.075 million Funds Available =Rs. 20.000 million Shortfall/Funds Requirements =Rs. 71.375 million Project Cost Financial Indicators IFRR33.7 % NPV (at 15 %) 77.493 Average rate of return27.99 Pay back period 2.87 years Breakeven capacity 28% Project Status PHDEC & SBI jointly are working on this project

15. 14 Support / Suggestions for Hoticulture  Support for Common Facility Centers for processing of fresh fruits & vegetables  Approval of Cool Chain System Project by CDWP/ECNEC on fast track basis.  Extension of mark-up support facility (through Export Development Fund) to Pack Houses & Value Addition units.  Resolution for shortage of Controlled Atmosphere (CA) and Reefer containers for sea shipments.  Resolution for inadequate air cargo space.  Special air freight rates for export of mangoes.  Financial support to farmers/exporters Loan Guarantees Revolving credit (seasonal)

16. 15 www.phdeb.org.pk

17. 16 PROPOSED SITES FOR PACK HOUSES WITH COLD STORAGE FACILITIES Commodity* Pack House /Cold Store Processing Capacity (MT Cold Storage Capacity (MT) City/AreaProvince Kinnow1 PH & 1 CS (20 t / h) 5000 (10 X 500)Bhalwal Punjab Kinnow1 PH & 1 CS (5 t/h) 3000 (6 X 500)T.T. Singh** Punjab Kinnow1 PH & 1 CS (5 t/h) 3000 (6 X 500)Mandi Bhaudin** Punjab Mango3 PH & 3 CS (8-10 t/h) 1000 (4X250)Multan Punjab Mango2 PH & 2 CS (8-10 t/h) 1000 (4X250)R.Y.Khan Punjab Mango2 PH & 2 CS (8-10 t/h) 1000 (4X250)Muzafar Garh Punjab Mango1 PH & 1 CS (8-10 t/h) 1000 (4 X 250)MirpurKhas Sind Mango, Citrus & Vegetable1 PH & 1 CS (5 t/h) 2000 (4 X 500)Khanewal Punjab Mango + Banana Ripening Facility 1 PH & 1 CS (8-10 t/h) 1500 (3 X 500)Hyderabad Sind Apple1 PH & 1 CAS (5 t/h) 3000 (6 X 500)Peshawar NWFP Apple & Grapes1 PH & 1 CAS (5 t/h) 2000 (4 X 500)Quetta Balochistan Peach, Apple1 PH & 1 CAS (10-12 t/h) 4000 (8 X 500)Swat NWFP Apple, Apricot1 PH & 1 CAS (10-12 t/h) 1500 (3 X 500)Kalat Balochistan Apple, Apricot1 PH & 1 CAS (10-12 t/h) 2000 (4 X 500)Kila Saifullah Balochistan

18. 17 PROPOSED SITES FOR PACK HOUSES WITH COLD STORE FACILITIES Commodity* Pack House /Cold Store Processing Capacity (MT Cold Storage Capacity (MT) City/AreaProvince Apple, Apricot, Peach & Grapes 2 PH & 2 CAS (10-12 t/h) 2000 (4 X 500)Pishin Balochistan Apple & Grapes1 PH & 1 CAS (5 t/h) 2000 (4 X 500)Mastung Balochistan Apple, Apricot1 PH & 1 CAS (5 t/h) 1000 (4 X 250)Loralai Balochistan Apple, Apricot1 PH & 1 CAS (10-12 t/h) 2000 (4 X 500)Zhob Balochistan Dates1 PH & 1 CS (4 t/h) 5000 (10X500)Panjgur Balochistan Potato 2 PH & 2 CS (10 t/h) 2000 (4 X 500)Okara Punjab Potato2 PH & 2 CS (10 t/h) 2000 (4 X 500)Sahiwal Punjab Potato1 PH & 1 CS (10 t/h) 2000 (4 X 500)Pak Pattan Punjab Potato1 PH & 1 CS (10 t/h) 1000 (4 X 250)Sialkot Punjab Potato1 PH & 1 CS (10 t/h) 1000 (4 X 250)Kasur Punjab OnionI PH & 1 VS (10 t/h) 1000Hyderabad Sind Onion1 PH & 1 VS (10 t/h) 1000Sanghar Sind OnionI PH & 1 VS (10 t/h) 1000Chaghi Balochistan Onion1 PH & 1 VS (10 t/h) 1000Kharan Balochistan Vegetable1 PH & 1 CS (5 t/h) 2000 (4 X 500)Sheikhupura** Punjab Vegetable1 PH & 1 CS (5 t/h) 2000 (4 X 500)Gujranwala** Punjab Vegetable1 PH & 1 CS (5 t/h) 2000 (4 X 500)Faislabad** Punjab Vegetable1 PH & 1 CS (5 t/h) 2000 (4 X 500)D.I. Khan** NWFP Total39 69,000 31 Back

19. 18 PROPOSED SITES FOR COLD STORAGES Commodity Requirement (Number) Capacity (Tonnes)LocationProvince Kinnow1 CS3000 (6 X 500) Sargodha (Production Area) Punjab Kinnow1 CS5000 (10 X 500)Kot MominPunjab Kinnow, Apple Potato 1 CS5000 (10 X 500) Islamabad (Sector I-9) Punjab Fruits and vegetables1 CS1500 (3 X 500) Sargodha (F & V Market) Punjab Apple1 CS2000 (4 X 500)WaziristanNWFP Apple and other fruits and vegetables 1 CAS5000 (10 X 500)QuettaBalochistan Peach, Apple Potato1 CS5000 (10 X 500)PeshawarNWFP Peach & Apple1 CS2000 (4 X 500)MardanNWFP Dates & other Fruits1 CS5000 (10 X 500)TurbatBalochistan Dates1 CS5000 (10 X 500)KhairpurSindh Dates & other Fruits1 CS3000 (6 X 500)SukkurSindh Fruits and vegetables1 CS1000 (4 x 250)ChitralNWFP Fruits and vegetables1 CS1000 (4 X 250)ChamanBalochistan Total1343,500 Back

20. 19 PROPOSED COLD STORAGES AT AIRPORTS & SEAPORTS Air PortsCapacity Cold Store + Freezer Unit (Tons) ProductsRemarks Karachi500 (5 x 100) ---- Lahore300 (3 x 100)Extendable to 500 tons Faisalabad200 (2 x 100)Extendable to 300 tons Multan200 (2 x 100)Extendable to 300 tons Quetta200 (2 x 100)Extendable to 300 tons Peshawar200 (2 x 100)Extendable to 300 tons Islamabad200 (2 x 100)Extendable to 300 tons Total = 7 1,800 Sea Ports Fruits and vegetables, Meat, frozen food and pharma products Bin Qasim Karachi Port 5000 (10 x 500) ---- KPT Karachi Port5000 (10 x 500) ---- Gawadar Port*5000 (10 x 500) Total = 315,000 ----

21. 20 Postharvest Losses in Apples ( Swat)

22. 21 Postharvest Losses in Peaches ( Swat)

23. 22 Post Harvest Losses CropsPost Harvest Losses (%) Fruits Citrus15 Mango25 Dates35 Apple14 Pear15 Peach15 Plum25 Apricot25 Other fruits24.4 Vegetables Potato15.2 Onion20 Tomato40 Other vegetables30.5 Ibrahim & Anwar, 2004, Horticulture Education, Extension & Training System in Pakistan

24. 23 A. Supply Chain Management i) Facilitation & Support on international compliances for food quality & safety ii) Capacity building of stakeholders through trainings & technical assistance iii) Product Development & Certifications B. Marketing i) Market Intelligence & Information Dissemination ii) Product & Market Diversification iii) Linkages Development & Trade Delegations iv) Trade Dispute Settlement C. Business Development i) Supply Chain Infrastructure ii) Value Addition Operational Divisions