LAHORE: Food production and agribusiness in Pakistan is still in primitive stage. Our crop, dairy and meat productivity is low. Agribusiness is dominated by middlemen while processed milk and poultry account for less than five percent of total production.
Globally, food and agribusiness, exceeding five trillion dollar, represents 10 percent of the total consumer spending and 40 percent of employment.
With increasing population and stagnant population, we are slowly heading towards an unmanageable food crisis unless our food and agribusiness is transformed on the developed lines. The options of importing foods may not be there by 2050 when the global caloric demand would increase 70 percent and crop demand for human and livestock consumption 100 percent.
Most of the productivity increase in food, during the last 50 years, has been provided by the developed economies through efficient technology-led production. This increase has now stagnated as far as major grain crops are concerned.
During 2004-14, the global wheat production increased at an annual rate of one percent, potato one percent, rice two percent, sugarcane three percent, maize three percent, soybean four percent and palm oil seven percent.
Pakistan is also facing depletion of natural resources, which coupled with climate change, is changing the crop sowing pattern. The provincial agricultural extension department has not created much awareness on these aspects. There is a need for more production with low resources. Another problem is related to postharvest losses, which are borne by the farmers. The reduction in postharvest loses through mechanised farming, better logistics and distribution could add up to 30 percent in the quantity of grains, fruits and vegetables.
Most of the productivity gains are possible only through large-scale commercial farming that is sporadic in Pakistan. The average landholding of 87.5 percent of the farmers is at an unsustainable average of below 12.5 acres.
The state will have to play its role even if it has to do it through legislation to promote corporate farming to achieve economies of scales. The cooperatives will have a better bargaining power in purchase of inputs, like fertiliser, pesticides and certified seeds.
Disposing of agricultural output will also be beneficial as direct sales to the markets will eliminate middlemen and reduce transaction costs. Due to the small farm size, the crop productivity in Pakistan is very low. The per hectare wheat yield of a large farm is double the average yield of a farm of less than 12.5 acres. Our wheat yield could double if the culture of cooperative farming is promoted.
Consolidated and integrated farming also promotes farm mechanisation that is almost nonexistent in Pakistan. It will also create opportunities for equipment manufacturers, distributors, and technology companies. The bigger farms can avail sophisticated and automated products and services.
The other challenges faced by food consumers include the choice to use food crops, like soybean, palm oil and maize as alternate energy fuel. This trend has been stopped due to extraordinary low global oil prices.
These energy-related crops posted the highest growth during the last decade. Water scarcity in Pakistan is a stark reality and eroding quality of soil is another worry.
The food demand in Pakistan is rising not only because of population growth, but also due to rising incomes. The demand for diets consumed in developed economies is also increasing. Consumers now need more calories, protein and a larger quantity of processed food. It is essential to make feed conversion more efficient so that the meat production per animal increases without increasing the quantity of feed. Additives, such as enzymes, acidifiers and probiotics are available to achieve this special feed, but meat production companies in Pakistan are nonexistent. Currently, livestock producers are not comfortable due to poor feed-to-meat/dairy output ratio.
With rise in middle class and the feedback from overseas Pakistanis who account for five percent of total population, demand is rising for healthier foods. Large numbers of consumers now prefer cholesterol-free foods and fortified foods for better nutrition. Low cost food fortification is almost nonexistent on staple foods. These fortified foods, including wheat flour, calcium-fortified processed milk and many others, fetch much higher prices.
The public sector investment in agriculture infrastructure is almost negligible. Irrigation channels of Pakistan, the most integrated in the world, are in shambles. No mega water storage has been constructed in the last 45 year. The existing ones are losing capacities because of silting.