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PAKISTAN
SWOT ANALYSIS
Submitted by:
Muhammad Sabahat-ullah Khan
Executive Summary
Pakistan is the 4th largest producer and 11th largest exporter of
Rice. A handsome amount is earned by foreign exchange revenue for
Pakistan which proves to be competitive for our economy. O u r
achievements in the rice industry have been promising since the
independence of Pakistan. Production has increased by a ratio of 2:1
compared to increase in land. This can be credited to the variety of
seeds present, improved facility for rice production and introduction
of various preventions for rice crop against diseases. Punjab is the
major producer of rice, followed by Sindh. This has also been the
reason that Pakistan was able to stand the global financial recession in
2008 comparatively better than the world, as it opened up new
markets for us to export rice.
International Market
As one of the most important grain Rice is a diet for more than
half of the world’s total population. A symbol of dietary caloric supply
upto 50% for poor people provided by rice in Asia and is, therefore,
good source of food security.. It is also increasingly known as an
important food staple in Africa and Latin America. Human
consumption relies on almost all of the varieties of rice– which
accounts for about 90% of production. Rice variants of low quality and
by-products can be sold for animal feed and is used to manufacture
starch.
Strengths: Weaknesses:
1. Mixing of Rice
1. Production increased overtime
2. Technology
2. Variety of rice produced
3. Unbranded
3. Exposure to export markets
4. Lack of Quantity as value addition
4. Availability of labor
Opportunities: Threats:
1. Investment opportunities 1. Water issues
2. High demand 2. Increase in small farmers
3. Feudal Lords
3. Asian cuisine influence 4. Lack of infrastructure in rural areas
4. New diet studies 5. .
Strengths
Pakistan specializes in and is very famous for exporting long and long
grain which is aromatic basmati rice. This quality is exported to UAE,
Australia and European Union. Super Basmati is considered one of the
best around the world by the Agriculture Department of the
Government. Others are:
1) Cargo Rice: (BROWN RICE, HUSKED RICE) is the kind of rice obtained
from the paddy, the only process implemented on it is Husk removal.
This includes whole grain, head rice.
2) Plain or White Rice: is rice obtained from the paddy and it has been
husked, milled resulting in removal of bran layers. This includes whole
grain, head rice.
3) Parboiled Rice: It can be husked and milled rice or husked rice having
been subjected to heat treatment after being soaked in water so that
the starch is fully gelatinized. This is followed by a drying process.
Basmati – 385
2) Basmati – 198
3) Super Basmati
4) Basmati 370
5) Kernal
6) Shaheen (
Basmati) Other
Rice Varieties:
1) IRRI – 6
2) IRRI – 9
3) PG
(IRRI) 4)
KS 282
Availability of labor
Technology
Pakistan exports rice in bulk quantity and rarely in 1kg, 2kg and
5kg packets. Again with the help of Engro and GUARD it has just started
but not on a very large scale. The majority is in bulk. The consequences
of this are that it loses its foreign markets as other countries sell in
every possible quantity.
Opportunities
Investment Opportunities
High Demand
Asian restaurant and food are gaining popularity all over the world.
Asian recipes rely heavily on rice as their stable ingredient example
Chinese food, porridge, black rice of Valencia. As Asian food becomes
more popular, the demand for rice will also increase.
The new diet studies have shown rice to be more nutritious than any
other food. These researches for the health conscious people lead to an
increase in demand for rice, which is again a window of opportunity for
the farmers, promising future stable demand.
Threats
Water issues:
Feudal Lords
The existence of feudal lords and their connections with the leading
political parties of Pakistan are a threat as they force up the prices of rice
stock by using influence and making sure their stock is sold before that of
the small farmers. This is a threat as it negatively affects the small
farmers and their supply. The feudal landlords are also in possession f
very large land, and because they do not know the ways of farming,
much of the land is left to waste