EXPORTS AND

IMPORTS
OF THE
PAKISTANI FOOD
INDUSTRY

Course: Analysis of Pakistani

Industries
Submitted To:Mr Qazi Adnan
Hye.

1
 Made By:

Saniya Sohail (7041)

Yousuf Naseem (7180)
Umair Anjum (6510)

Letter of Acknowledgment

We would like to declare our infinite gratitude to our teacher Mr Qazi Adnan Hye for
providing us the opportunity and assistance to research and study Pakistani Industries in
depth and derive conclusions. We are thankful.

The following report aims to highlight the overall study on the Imports and Exports of the
Food industry.

Sincerely,

Saniya Sohail

Yousuf Naseem

Umair Anjum

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 TABLE OF CONTENTS:
Food Industry Overview---------------------------------------------------------------------------- 4

EXPORTS AND IMPORTS-------------------------------------------------------------------------- 5

FOOD SECTOR ANALYSIS------------------------------------------------------------------------ 6

FOOD BASKET------------------------------------------------------------------------------------------8

SHARE OF IMPORTS AND EXPORTS OF PAKISTAN-------------------------------------10

IMPORT COMMODITY--------------------------------------------------------------------------------11

EXPORT COMMODITY-------------------------------------------------------------------------------12

Major Export Markets For

Pakistan--------------------------------------------------------------13

NEWS
FEED:--------------------------------------------------------------------------------------
------14
Export Of Seedless Kinnow

RECOMMENDATIONS--------------------------------------------------------------------------------17

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 Food Industry Overview:
Agriculture is the second largest sector of Pakistans economy, contributing 21% to the
GDP (more than US $ 37 billion to the national economy) and employs 45% to the total
workforce. The sector is well diversed with all kinds of agricultural products like Wheat,
rice, sugar, grains, fruits and vegetables.

EXPORTS:

The exports of the food group grew by 22.4% in the fiscal year 2007-2008 contributing
26.1% in the overall exports growth. However imports accounted for 11% of the total
imports thus contributing 16.3% in the over all growth of imports.

The exports however stood at US $3.3 Billion in fiscal year 2008-2009.

Being a highly viable market in the country the food industry attracted foreign direct
investment of US $ 108.3 million in 2009-2010.
(Source: IFTECH Pakistan)

FUTURE INVESTMENT:

Agriculture being the second largest sector of the country has been allocated US $
129.4 million by the government for the year 2010-11 for the productivity of this sector.
(Source: IFTECH Pakistan)

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EXPORTS AND IMPORTS:
(2009-10)

ESSENTIAL EXPORTS COMMODITIES:

 Rice
 Fish and Fish preparation
 Fruits
 Vegetable
 Spices
 Oil Seeds
 Meat and Meat preparation
 Poultry/Eggs Albumen Etc
 Wheat
 Tobacco
 Molasses

ESSENTIAL IMPORT COMMODITIES:

 Milk and Milk products

 Wheat Un milled
 Dry Fruits
 Tea
 Spices
 Edible Oil
 Sugar
 Pulses

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Food Sector Analysis:

Pakistan's agricultural sector poised for Vibrant

growth

Agriculture being the second largest sector of the country, has been allocated US$
129.4 million by the Government for the year 2010-11 to enhance the productivity of this
sector.
Agricultural inputs like wheat, maize, cotton and sugar cane, products such as fruits,
vegetables and dairy contribute significantly towards the economy.

Livestock and Dairy

Pakistan is endowed with a large livestock population well-adapted to the local
environmental conditions. The demand for livestock and dairy products is continuing to
increase due to the population growth, urbanization and increase in per capita income.
It is expected that the future high growth in agriculture would led by the livestock and
dairy sector.
Livestock and dairy are the largest segments of the agricultural sector, constituting
53.2% of the overall agricultural sector while contributing over US$18 billion to the GDP.
The Government has allocated US$10.54 million for the year 2010-11, for the
development of this segment.

Cereals and Bread

Wheat and rice being the major crops occupy the central position in the formulation of
agricultural policies with production reaching 25 million tons and 7 million tons
respectively in the previous year. Similarly sugarcane is another important crop being
grown in the country and its production was around 50 million tons.

Fruits and Vegetables

Fruits and vegetables processing industry is concentrated around the major cities of
Pakistan. There are 25 small and medium industrial units, having an estimated capacity
of 45000 metric tons, engaged in the production of squashes, jams pickles and canned
fruits and vegetables.

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Frozen Food
Frozen food have been most dynamic segment of the total food market in Pakistan.
Fresh frozen meat and its products mainly sausages is an emerging segment in meat
processing. Similarly, vegetables, sea food, poultry products, prepared foods, flavoured
coatings and athnic items have shown a significant increase in consumption.

Food and Beverages

Food processing and agricultural machinery worth more than US$233 million was
imported in 2009-10 for t he production of vast variety of food commodities fresh as well
as processed. currently about 2077 food and beverage companies are operating in the
country, concentrating on processed food items to ensure value-added exports and
capitalize on the increasing demand of finished food products in the domestic as well as
international market.

Sea Food
Pakistan has a vast coastline along the Arabian Sea and fishing is the main livelihood
for the coastal inhabitants. it add substantially to the national income through export
earnings and Government is taking a number of fruitful steps to further devel this sector.
During the past fiscal year the total marine and inland fish production was estimated at
1.2 million metric tons out of which 0.9 million metric ton account for marine production.

Halal Food
With the high increase of the Muslim population in the world, the global demand for
Halal products and services is projected to rise accordingly. Halal certified products are
recognized for being hygenic and of superior quality, equally popular amongst Muslim
and even non-Muslim consumers worldwide, making the entire Halal market very
lucarative for investors.

The Halal food sector has a share of 17% in the global food market and is expected to
exceed US$650 billion by the end of 2010. AT present, this sector is growing faster than
any other segment of the global food market and is undoubtedly the biggest untapped
oppurtunity for Pakistan. In order to capture the greater share of HAlal food business,
Pakistani food manufacturers are seeking to equip their production facilities with the
latest technology.

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FOOD BASKET:

Food Ingredients and Chemicals

• Acids and acid regulators
• Aromas - Flavours and Fragrances
• Baby Food
• CAnned / Bottled / Packed Food
• Chilled and Frozen Foods
• Coati Agent
• Colour Additives
• Colours
• Confectionaries
• Enzymes / Extracts
• Essences
• FAts and Oil Oleoresin
• Fertilizers and Agro Chemicals
• Food Addictives / Raw Material
• Food Chemicals
• Food Preservatives
• Fresh Produce
• Frozen Food
• Fruits and Vegetables
• Grains Products
• health / Organic Food
• Herbs
• Ice Cream
• Noodles / Pasta
• Nutrition Strengthener
• Poultry / Halal Meat
• Processed and Convenience Food
• Ready to Eat
• Rice and Rice Products
• Snack Food / Tibits
• Specialty Food

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 • Spices, Sauces ans Seasonings
• Starch and Derivates
• Sweeteners
• Thickening Agent
• Vitamins and Amino Acids
• Volume Augmenters

BEVERAGES
• Juices, Syrups and Soft Drinks
• Milk Products
• Tea and Coffee
• Water Purification

SEA FOOD
• Fresh Seafood Products
• Frozen Seafood
• Instruments

AGRICULTURAL PRODUCTS/MACHINER:
• Cereals and Cereals Products
• Herbs, Pulses and Seeds
• Honey and Agriulture Products

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SHARE OF IMPORTS AND EXPORTS OF
PAKISTAN:(DATA: 1989-2008)
Food exports (% Food imports (% Food
YEARS of merchandise of merchandise production.
exports) imports) index (1999-
2001 = 100)

1989 11.6216842 15.9218866 61

1990 9.3040761 18.6618519 65
1991 10.3472282 17.3528272 67
1992 9.882159 12.1499456 71
1993 9.4681762 15.0638809 72
1994 - - 78
1995 11.7804219 17.7391787 80
1996 8.9810185 15.2209153 87
1997 10.0861516 19.2569216 90
1998 13.5377711 20.7285162 92
1999 13.0484425 16.9196072 96
2000 10.5426537 14.0534373 98
2001 10.8998687 12.4664011 101
2002 10.7742935 11.9530182 99
2003 10.7989753 11.5161864 101
2004 10.159048 10.5414678 105
2005 12.0886617 10.5891358 109
2006 11.8925819 10.4217637 114
2007 18.1967963 8.8823649 117
2008 18.1967963 11.8539948 124

IMPORT COMMODITY:
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Food group accounts for 11.8% of total imports and showed a negative growth of 3.1%
last year.

Edible Oil and Tea were the major food imports of Pakistan.

YEAR IMPORT COMMODITY ($

S Millions)
MILK TEA SPICES EDIBLE
OIL
2001-02 - - - 307.2
2002-03 - - - 483.1
2003-04 - 151.12 - 505.12
2004-05 - 175 - 526.6
2005-06 47.8 187.7 44 615.6
2006-07 65.5 184.2 44.9 763.3
2007-08 63.7 167.4 63.7 1311.1
2008-09 63.1 198 57.9 1194.1
2009-10 81.3 273.36 73.08 1266.24

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EXPORT COMMODITY:
Exports of f group increased by US$ 510.3 million and accounted for 17.3% of overall
exports. With the exception of Oil seed nut and Kernel each component of food has
registered an impressive growth. Rice remains the largest contributor of food export,
contributing an additional US$ 443.4 million. Rice has improved its stake in total exports
to 11.4%. The impressive performance of rice is owing to enormous surge in
international prices of rice.

YEAR EXPORT COMMODITY ($

S Millions)
RICE FISH FRUITS MEAT
2001-02 366.7 106.8 70.5 -
2002-03 450.7 110.6 69 -
2003-04 461.4 115.4 77.1 -
2004-05 601.7 97.6 71 -
2005-06 963.9 154.2 109.7 15.4
2006-07 939.2 157.1 94.1 33.5
2007-08 1237 167.2 128.5 40.5
2008-09 1680.3 196.1 136.6 59.5
2009-10 2176.39 227.28 238.8 99.93

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 Major Export Markets For
Pakistan:

YEARS
EXPORT MARKETS FOR PAKISTAN (%)
US GERMANY UK JAPAN HONGKONG DUBAI SAUDI OTHER
A ARAB COUNTRIES
99- 24. 6.0 6. 3.1 6.1 5.7 2.5 45
8 8
00
01- 24. 5.3 6. 2.1 5.5 5.3 2.9 48.2
4 3
02
02- 24. 4.9 7. 1.8 4.8 7.9 3.6 45.1
7 2
03
03- 23. 5.2 7. 1.3 4.6 9 4.3 45
5 1
04
04- 23. 4.9 7. 1.1 4.7 7.3 2.8 47.7
9 6
05
05- 23. 4.8 6. 1.1 3.9 3.3 2.5 54.3
9 2
06
06- 26. 4.6 6 0.8 3.9 5.3 2.3 50.1
9
07
07- 24. 4.1 5. 0.7 3.9 1.1 1.7 58.3
6 6
08
08- 19. 4.3 5. 0.7 2.7 0 2 65.4
5 4
09
09- 18. 4.1 5. 0.7 2.9 0 2.2 67.2
8 5
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 NEWS FEED:
Export Of Seedless Kinnow
Seedless kinnow export : Pakistan to meet European countries’
demand
By Razi Syed

Published: Daily Times-Wednesday, July 15, 2009

KARACHI: Pakistan is expected to get breakthrough in seedless kinnow as F1 and F2 research
resulted positive while research work on F3 is under process, official Pakistan Horticulture
Development and Export Board (PHDEB) revealed Tuesday.

Chairman PHDEB, Shamoon Sadiq talking to Daily Times said, hopefully the plantation process
would be started in next fruit season.

“Dr Shahzad at Karachi University is heading a team of experts on tissues culture and result for
F3 will bear fruit in seedless kinnow”, he added.

The production of seedless kinnows is the result of the public-private partnership by Nuclear
Institute for Agriculture and Biology (NIAB), Pakistan Atomic Energy Commission, Citrus
Research Institute of Government of Punjab and Sunder Agricultural and Fruit Farm.

The PHDEB is confident that, with the development of seedless variety, Kinnow exports may
touch a new high during the next coming season.

Pakistan is expected to start exporting of seedless kinnow to meet the European countries

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demand by 2011, director Agribusiness Support Fund (ASF), Mateen Siddiqui said.

Pakistan is looking forward to produce citrus fruits having 3-5 seeds each as compared to 20 to
25 seeds each piece, which was the sole reason behind the neglected importance given to them
by the Europeans but this problem is finally resolved and their demand would be met.

The plants of seedless kinnows are produced through tissue culture and the government would
sell millions of saplings to the growers. Almost 500-550 saplings of seedless kinnows were
being sold every day to the growers on the results of F1 and F2.

World citrus exports are valued $2.135 billion in which Pakistan’s share was $33 million that was
around 2.5 percent. This is due to export of citrus to low priced countries.

Pakistani research reveals that Europeans consider seeds to have caused stomach disorder.
“Every seed of kinnow has a specific chemical material that sometimes disturb the stomach,”
Siddiqui said.

He said this seedless kinnow would be able to compete in the international market, as these
kinnows would not be hazardous for the human health in any way.

The methods used for its production include natural selection as well as the genetic
manipulation.

The European countries mostly import citrus fruits from USA, New Zealand and some of Arab
states besides Spain and Morocco.

The main cause of decline in export was low production of the fruit, which was a natural
phenomenon as the produce of trees varies from year to year.

Iran, Russia, Ukraine, the UAE, Saudi Arabia, Uzbekistan, Tajikistan and Eastern Europe are
the largest export markets for Pakistani Kinnow.

An official of Ministry of Food and Agriculture (MINFA) said Pakistan produces 95 percent of
total world kinnow production. It is the sixth largest producer of Kinnow (mandarin) and oranges
in the world, with 2.5 million tonnes. It is being estimated that the country may have a record
export of 270,000 tonnes of kinnows this year.

Grown primarily in the plains of Punjab, Kinnow was first developed by H B Frost at the
University of California at Riverside in 1935 by cross-pollinating the King and the Willow-Leaf
varieties of mandarin, according to handbook of Fruits and Fruit Processing (Wiley, John and
Sons, 2006).

Kinnow orchards in Pakistan are mainly located in Sargodha, Mianwali, Multan, Khushab, Mandi
Bahauddin, Jhang, Toba Tek Singh, Lehea and Bhalwal districts of Punjab. Kinnow season in

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Pakistan starts in mid-November and extends normally up to April. Other varieties of oranges,
including malta, musammi and fruiter only contribute 25 percent of the total production of citrus
fruits.

There are around 200 Kinnow processing units in the country and most of these have been
established quite recently and are contributing a lot in enhancing the quality of Kinnow for export
purposes.

Seedless kinnow production from next year

Published: The Nation- March 07, 2010
ISLAMABAD (APP) - The production and export of seedless kinnow (mandarin) is likely
to begin from next year as the agriculture scientists have been focusing on multiple
cultivation of such varieties.
“Seedless varieties of mandarin have been developed in Nuclear Institute for Agriculture
and Biology (NIAB) and Citrus Research Institute (CRI), Sargodha,” an Agriculture
Scientist at National Agriculture Research Center (NARC), Hafeez-ur-Rehman told APP.
In addition, he said that breeding for seedless kinnow was also done at University of
Agriculture, Faislabad and NARC.
The work for developing mandarin hybrid was started in 1999 he said adding that
crosses were made between Kinnow and Salustiana for early maturity less number of
seeds and lower acid contents as compared to kinnow.
The process after going through various developments and modifications ultimately
culminated in producing a seedless mandarin type. He said that these seedless
mandarin varieties are being multiplied for further distribution among the farmers and
expressed the hope that the production would start from 2011.
He said that with the production of seedless kinnow varieties, country’s exports would
be multiplied and it would attract the European markets. “Once the seedless variety
starts bringing fruits it would help generate precious and much needed foreign
exchange for the country as it would attract attention of western markets where people
otherwise don’t prefer kinnows due to seeds,” Hafiz said.

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 RECOMMENDATIONS

• Rice productivity should be given more significance and its’ related technology
should be sought so as to increase productivity of consistent quality standards.
• All sorts of easy financial services should be given to the farmers so that they are
able to make further investment in the productivity of different food commodities.
• Export earnings and revenues can be generated at a higher level through export
of food commodities provided that a favorable environment is provided to the
manufacturers and processing units and also a consistent policy is followed
regarding export regulations.
• Since tea which is the most consumed food commodity in Pakistan and is not
produced but imported in heavily from neighboring countries and adds to the
import bills, we should be able achieve some progress to be able to produce that
commodity on our lands. So investment should be made in that field too which
require the government attention.
• New techniques in the production of milk and specially, powdered milk, which is
mostly imported, should be explored for, since there is significant availability of
milk which is not processed and wasted in large quantities.
• Smuggling of meat to neighboring Asian states which is a drastic menace for
Pakistan these days resultantly creating astronomical price hikes within the
country should be looked into, since this sort of illegal export is causing huge
loses of export revenues
• Fruits preservation technology is of prime importance if foreign exchange is to be
earned through their exports since fruits in their original form have short shelf
lives and their taste do not last long if the quality is not maintained.
• Water availability which has always been issue for the farming sector since
insufficient water supply always creates problems in the productivity so more
reservoirs, dams and good water supply management system should be made,
so that the productivity level can be raised and further earnings can be made.

• Fish exports which also recently got hit by an export crisis because of lack in their
quality preservations and the fish catching style of our fishermen which causes

17
 serious discontent among the foreign buyers. so this needs to be looked into and
made appropriate.
• Also some new markets within the Asian region must be explored so that the
export markets can be diversified.
• If government takes pro-industry steps, the volume of Food commodity exports can
increase substantially, besides capturing various new markets

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