NAME : SYEDA ALISHBA SHERAZ BUKHARI

SUBJECT : HOTICULTURE
TOPIC : ROLE OF VALUE ADDED PRODUCTS IN
ECONOMICAL GROWTH OF PAKISTAN
VALUE ADDITION :
value-added is the difference between the price of a product or services
and the cost of producing it .the price is determined by what
customers are willing to pay based on their perceived value .value is
added or created in different ways .

Agriculture is an important sector of Pakistan's economy. This sector

directly supports the country's population and accounts for 26 percent
of gross domestic product (GDP). The major agricultural crops include
cotton, wheat, rice, sugarcane, fruits and vegetables.
WHY VALUE ADDITION:
 Make more money: value added agricultural product has more
market value than raw commodity

 Meet changing tastes and preferences o f consumers ‐

convenience, quality, safety, health, variety, price, social and
environmental consciousness
 Compete by differentiating a product in a highly competitive
market
ROLE OF VALUE-ADDED PRODUCTS IN
ECONOMIC GROWTH OF PAKISTAN:
  Food Industry is the 2nd largest in Pakistan
 Accounts for 27% of its value‐added production & 16% of the total
employment in manufacturing sector
 With an estimated 169 million consumers, Pakistan holds the
world’s eighth largest market
 More than 1000 large scale food processing enterprises in
Pakistan
 75% of rural‐ based food manufacturers are in so‐called informal
sector (difficulty in accessing raw material finance 11 informal
sector (difficulty in accessing raw material, finance skills,
knowledge & management)
 Pakistan's food sector is changing significantly with an inclined
shift in lifestyles and traditional eating habits
 Average consumer spends 42% of one’s income on food
 Retail sales of processed foods is expanding by 10 % per anum
and currently are estimated at about US$1.4 billion, of which
imported products account for US$325 million
 Supermarkets are gaining in popularity as a shopping venue and
now account for about 10% of all retail food sales
 In addition, Pakistan now hosts numerous western‐style fast food
chains reflecting a rising popularity with such eating style.

VALUE ADDED PRODUCT :

Value-added products are products that have been altered, added
to ,or otherwise enhanced during the production process to add value
to the final product . value- added products often apply to the
agriculture industry common example of value-added product include
organic produce
 Value addition – process of increasing the economical value and
consumer appeal of an agriculture commodity
 It is a production / marketing strategy driven by customer needs
and preferences
 Value-added is used to characterize food products from raw
materials through processes that give the resulting product an
incremental value in the market place either through higher price
or expanded market
LIST OF VALUE PRODUCTS :
 Dairy. manufactured milk products
 Fish and seafood
 Honey
 Meat
 Coconut oil
 Pickle
 Breads
 Tea
 Fruits and vegetables
DAIRY PRODUCT : ( MILK )
Role of dairy product in economical growth of Pakistan:
Dairy sector is an important component of pakistan’s economy . Dairy
is a universal agriculture production. People milk dairy animals in
almost every country across the world, and up to one billion people live
on dairy farms . it is a vital part of the global food system and it plays a
key role in the sustainability of rural areas in particular.

Dairy farming benefit the economy:

Milk is produced daily and therefore can provide regular cash income .
dairy production provides many non-marked economic benefits ,
including manure for use on-farm as fuel or organic fertilizer ( in several
farming systems manure is the sole source of nutrients for crop
production )

Dairy industry contribute to the economy:

Reports show that the dairy industry accounts for 1 percent of the U.S.
Gross Domestic Product (GDP), generating an economic impact of $628
billion. The industry also creates nearly 3 million U.S. jobs that generate
around $159 billion in wages.

Dairy industry growing:

In 2018, an oversupply of dairy products caused milk prices to fall 7.9%,
which led to a 9.3% drop in industry revenue that same year. However,
this was immediately followed by the price of milk increasing 13.2% in
2019, and thus, revenue grew 12.9% in 2019 as well

Dairy product export in Pakistan economy :

Pakistan exports of dairy products, eggs, honey, edible products to
Saudi Arabia was US$13.54 Million during 2019, according to the United
Nations COMTRADE database on international trade.

Government livestock policy:

 In order to speed up the pace of development in livestock and its
Dairy Sector, the overall thrust of Government’s livestock policy is
to foster private sectorled development with public sector
providing enabling environment through policy interventions and
capacity building for improved livestock husbandry practices and
supply chain management
 The emphasis is on improving per unit animalsupply chain
management. productivity and moving from subsistence to
market oriented and then commercial livestock farming in the
country to meet the domestic demand and surplus for export

Bussiness class plan for a dairy product:

  Land – You must have some cultivated land for growing green
fodder crops for your cattle in the farm. ...
 Shed – There must be proper and covered secured shed in place
before getting cows into your farm.
 Water – Clean and abundant water facility is required for
both cattle and to grow the green fodder

Fish and seafood:

ROLE OF FISH AND SEAFOOD IN ECONOMICAL
GROWTH OF PAKISTAN:
the fishes sector in Pakistan makes a significant contribution to
contributing to the nationl economy contributing about one percent to
GDP and providing jobs to about one percent of the country’s labour
force .it is the most important economic activity in the coastal areas of
Pakistan

Economic importance of fishes:

Fish  have formed an important item of human diet. Nearly
all fish freshwater and marine are edible and have been
an important source of protein, fat and vitamins A and D since time
immemorial. In most fishes, the flesh is white, contains about 13 to 20%
of protein and has a food value of 300 to 1600 calories per pound .

Fishes export in Pakistan economy :

It is the most important economy activity in the coastal area
of pakistan. It is estimated that 400 000 fishermen and their families
are dependent on the fishes sector for their livelihood. ... About 83 000
million tones of fish and fishery products valued at Rs. 7.27 billion (US$
172 million) were exported in 1997.

Growth rate of fishing industry :

Furthermore, the total fisheries production growth rate
percentage from 1950-2017 calculated as 5.95% year-1, and the highest
and the lowest growth rates recorded in the year 1953 and 1974 was
109 % -19.6 %, respectively

Government livestock policy:

the national policy and strategy for fisheries and aquaculture
development in Pakistan is the result of a comprehension consultative
process that has involved a large number of stakeholders at all levels
between 2004 and 2006

the national policy and strategy for fisheries andaquaculture

development in Pakistan is constituted of several parts .part 1 presents
the policy , strategy and its implementation plan part2 details the
institutional arrangements necessary for the the overseeing of the
policy implementation process, as well as project concept notes
elaborated by the GOP towards the implementation for legal
improvements to support implementation . while part 1 is here to stay
and will guide the government of Pakistan in achieving the policy goals
supportive part 2 and , at the timeof writing , wee work in progress and
may be subsequently modified / updated.

Profitable business in pakitan:

24 lakhs against your 11 lakh investment after the struggle of one year.
It means this is the most profitable business in Pakistan.

HONEY:
Role of honey in economical growth of Pakistan:
Honeybees are of huge economic importance, vital for the pollination
of many fruit, vegetable and seed crops. Also a wide variety of
important products are made from the honey, beeswax, pollen, royal
jelly and propolis that bees produce

Producing honey profitable:

A strong, healthy colony can produce 100 pounds of honey in a
season. ... Natural, local honey can sell for much more than the stuff in
grocery stores. It depends on your location, but it's safe to say that you
can charge $10 per pound. That puts you at a profit of $600 per
beehive, per year

Export honey:
Export of Natural Honey from Pakistan increased from Rs 466 million in
2011-12 to Rs 935 million in 2013-14, thus showing an average increase
of 33% per annum. Pakistan mainly exports Honey to Saudi Arabia,
UAE, USA, and Afghanistan. ... The majority of
this Honey is imported from the developing world.

Growth :
It is anticipated that marketing of 70,000 metric tons of honey will
generate an income of about 35 to 43 billion rupees (over 218 to 267
million U.S. dollars) in the national economy and provide about 87,000
green jobs, the statement said.

Coconut oil:
Role of coconut oil in economical growth of Pakistan:
Coconut oil is one of nine internationally traded vegetable oils and
ranks eighth in global production. Demand grew by 8 percent annually
during 1993 to 2004. On many islands, coconut is a staple in the diet.
Nearly one third of the world's population depends on coconut for
nutrition and trade

Export or import coconut oil:

Top export destinations of "Coconut (copra), palm kernel or babassu oil
and fractions thereof, whether or not refined, but not chemically
modified." from PakistanThe value of imports of 1513 "Coconut (copra),
palm kernel or babassu oil and fractions thereof, whether or not
refined, but not chemically modified." commodity group to Pakistan
totalled $ 14 million in 2019

coconut oil business profitable:

A coconut oil production business is a very profitable business. This is

because it is less capital intensive than other forms of coconut related
produce. Coconut oil is an edible oil extracted from the kernel or meat
of mature coconuts harvested from the coconut palm
Economic life of the coconut palm can be considered as 60 years. The
productivity of a eleven year old coconut plant is about 60 nuts.
Therefore, cultivation of coconut tree in commercial basis
is profitable and source of sustainable income
Growth:
In Pakistan it is cultivated Coconut is mostly grown in coastal areas of
Sindh and Baluchistan
FRUITS AND VEGETABLES:
Role of fruits in economical growth of Pakistan:
Fruit growing have more economic advantages. High productivity: High
yield per unit area: From a unit area of land more yield is realized
from fruit crops than any of the agronomic crops. The average yields of
Papaya, Banana and Grapes are 10 to 15 times than that of agronomic
crops.

Role of vegetables in economical growth of Pakistan:

Vegetable production provides a promising economic opportunity for
reducing rural poverty and unemployment in developing countries and
is a key component of farm diversification strategies. Vegetables are
mankind's most affordable source of vitamins and minerals needed for
good health.

Growth:
Fruits and Vegetables Market in Pakistan is expected to register a CAGR
of 5.9% during the forecast period of (2020-2025). Pakistan has a wide
range of agro-climatic conditions which is allowing the country to
produce a wide variety of tropical and sub-tropical fruits

Production of fruits and vegetables in pakistan:

Some of the major fruits and vegetables produced are mangoes,
oranges, apples, onions, tomatoes, carrots and watermelons among
others. Onions, carrots, and tomatoes together make up around 49% of
the gross vegetable production in Pakistan
Trade :
Despite its agriculture based economy, Pakistan is a net importer
of fruits and vegetables. In 2018, Pakistan exported USD 674 million,
and imported USD 870 million worth of horticultural commodities.

Fruits and vegetables business class:

 Organic Production Farm.
 Start a Vegetable Wholesale Company.
 Hydroponic Vegetable Farm.
 Create a Mobile App For Vegetable.
 Produce Organic Plant Food Powder.
 Create Online Vegetables Order Delivery Platform.
 Packed Cut Vegetable Business.
 Vegetable Shops Opened On The Side of The Road
Supply is the primary concern for a fruit business, you need to select a
reliable source to provide you good quality and fresh produce. If you
plan to sell exotic fruits which are not grown locally, you need a
supplier for imported fruits. ... You can sell naturally grown fruits from
organic farms to cater to this demand

VEGETABLE IMPORT LEADS THE MARKET IN TERMS

OF REVENUE:
According to International Trade Centre, Vegetable import dominates
the Pakistan market compared to Fruits import and export. Australia,
Afghanistan, Russia, Canada and Vietnam are the major exports of
Vegetables to Pakistan. Vegetables like potatoes, tomatoes, onions,
shallots, garlic, leeks, cabbage, cauliflower, kohlrabi, kale, lettuce,
chicory, carrots, turnips, cucumbers, gherkins, coconuts are majorly
imported in Pakistan. Domestically produced vegetables are insufficient
to meet the demand henceforth causing a need for import. Pakistan
Fruit & Vegetable Exporters, Importers & Merchants Association (PFVA)
is a trade association providing necessary statistics and reports on the
Fruit and Vegetable import and Export for the members in the
association. Trade Development Authority of Pakistan, EDF /
Horticulture Board, ANF & Customs is some of the members of PFVA.

TEA:
Role of tea in economical growth of Pakistan:
Tea is a high value crop of gross margin of 21340 Rs/ Acre and annually
earned gross margin from other Crops wheat and maize was
6675Rs/Acre and Tea Cultivation Advantage was 14665 Rs/Acre but
farmers was not interested to cultivate due to its high initial
investment.

Production of tea:
A research institute of Mansehra district has found that Pakistan has
great potential for producing both black and green tea. ... Both green
and black tea varieties are processed at the National Tea and High
Value Crops Research Institute (NTHRI) in Slinkier, 18km north of the
Mansehra city on the Karakoram highway

Export of tea:
According to Tea Board data, India's tea exports to Pakistan during
January-August 2019 stood at 3.14 million kg, valued at $4.80 million,
against 6.17 m kg (worth $9.02 million) during the same period last
year.

Bussiness class of tea:

Yes, you can earn more than 1 lakh per month by selling tea-cup only.
You can get a profit margin in tea business per cup tea around 3 to 5
rupees. ... You can earn Rs 40,000 per month if you are able to sell
more than 400 Teacup each day at a price of Rs 6

Tea needed FDA approval:

Yes. There are FDA packaging and labeling requirements for tea. If you
are claiming organic, you may also need a USDA certification and seal
 Tea national economical growth in Pakistan

SUGAR CANE:
Role of sugar cane in economical growth of Pakistan
 Sugarcane is the fourth largest cash crop grown in Pakistan which
contributes to the agriculture economy the crop value of Rs. 48,292
million. Its share in the large-scale industry is 18% and 1.9% in GDP. ...
Average yield of sugarcane is 44 tons against the world average of 60
tons per hectare.

Production:
Pakistan's sugarcane yield averages about 46 tonnes per hectare, well
below the world average of above 60 tonnes, and below neighboring
India's yield of 65 to 70 tonnes. However, yields are increasing over
time, at a rate of between 0.5 and 1.0 tonne per hectare annually.

MEAT AND POULTRY:

Role of milk and poultry in economical growth of
Pakistan
The industry contributes 894 billion in total to the U.S. economy, or just
under 6 percent of total U.S. GDP and, through its production and
distribution linkages, impacts firms in all 440 sectors of the
U.S. economy, directly and indirectly providing 5.9 million jobs in the
U.S approximately $

 Poultry sector is one of the organized and vibrant segments of

agriculture industry of Pakistan
 This sector generates employment (direct/indirect) for about 1.5
M people
 Poultry meat contributes 23.8% of the total meat production in
the country
 Meat sector is highly unorganized in Pakistan, though local and
export potential exist
 Value added products: Gelatin, sausages etc.

PRODUCATION OF MEAT:
In Pakistan, meat production is still based on traditional
management practices and is less productive. For the last few years,
annual growth of meat production showed elevated trends. The
meat production has risen to 3.873 million tons in 2016 compared to
3.696 and 3.531 in 2015 and 2014, respectively. Among exports,
Pakistani mainly exports red meat that is annually growing by 30%.
Despite this rapid growth, 96% of our exports are restricted to
carcass with little or no value addition.

Trade of meat and poultry:

In 2018, Poultry Meat were the world's 142nd most traded product,
with a total trade of $27B. Between 2017 and 2018 the exports
of Poultry Meat grew by 7.22%, from $25.2B to $27B. Trade in Poultry
Meat represent 0.15% of total world trade.

Gowth:
In Pakistan, meat production is still based on traditional management
practices and is less productive. ... The meat production has risen to
3.873 million tons in 2016 compared to 3.696 and 3.531 in 2015 and
2014, respectively. Among exports, Pakistani mainly exports
red meat that is annually growing by 30%

Meat export from Pakistan

Pakistani peoples consume beef, mutton, poultry meat and some sea

food, based solely on the concept of Halal.