SMEDA plans agro-processing facility to promote export of fruits

KARACHI: The Small and Medium Enterprises Development Authority (SMEDA) has planned to establish an agro-food processing facility in Balochistan to minimise post-harvest losses to farmers and promote value-addition in horticulture produce.

According to a document, SMEDA, the development wing of the Ministry of Industries and Production, intends to set up a pulping and concentrate production facility for main horticulture produce of Balochistan, such as apple, peach, plum, apricot, tomato, grapes and carrot.

A similar project for mango processing and pulp production was set up in Punjab a few years back, and local SMEs have greatly benefitted from it. After the establishment of this food processing facility in Balochistan, it is expected that the farmers of apple, peach, tomato, carrot and plum around and near the province will be able to minimise post-harvest losses thereby improving their profitability through value-addition.

The proposed facility will be a common centre to be utilised for introducing value-addition in the agro-food sector of Balochistan. SMEDA is also conducting a research study to secure expert opinion on market growth, estimation of local market size of the output, current production and market gap, market price of the end product and major buyer segments and geographical markets.

The planned study would also analyse export potential of fresh and processed fruit, concentrate and pulp, and identify top three potential export markets along with certification and compliance requirements.

Pakistan produces a variety of fruits; however, it has not been able to export its produce successfully. Significant improvement can be made through minimising post-harvest losses and by up-gradation of technology involved in harvesting.

According to Pakistan Bureau of Statistics (PBS), Pakistan’s fruit exports were $431 million last fiscal year, which is around 0.4 percent of world fruit exports. Current world fruit trade stands at around $117 billion.

According to a Research Gate report, top five markets to which Pakistan exports fruits include Afghanistan, India, UAE, Russia and China. “Conforming to European and other developed countries’ health and safety standards has become a major challenge for Pakistani exporters. European Union is the most strict in food safety. Similarly, sanitary requirements of the developed world are driven by consumer demands and any kind of exemption is not possible. Compliance is therefore challenging and costly; it necessitates investment in labs, safety and management systems, and technical expertise”. According to a UNIDO report on Horticulture Sector in Pakistan, there is a need to upgrade standards to export successfully.