Pro-poor vale chain, date palm produce in Balochistan

PAKISTAN MANPOWER INSTITUTE Ministry of Education, Trainings &

Standards in Higher Education Government of Pakistan

Pro-‐Poor Value Chain Market Development of Date Produce in

Balochistan By Tariq Qamar BALOCH

Director PMI

Tariq Qamar BALOCH (2013) GOP & AusAID I

ABSTRACT Pro-‐poor value chain marketing is a concept of linking of small and medium level farmers to each and every actor in the chain, in order to build a network and maximize the crop production to be benefited for all. Balochistan shares more than 50% of date palm produce in the country. District Kech (Turbat) and Panjgur are the major good quality date producing areas, located in the south west of Pakistan.

The study was carried out with training material attended in Brisbane, literature review, semi-‐structured interviews and value chain analysis. At least three actors from each category of consumers, retailers, wholesalers, logistics providers, contractors / agents, farmers and input suppliers / agronomists, were selected. The proforma for each category was devised. Initially, the plan was to visit area and have interviews with the target groups in Mekran but due to certain limitations the officer from Agriculture Department was requested to have interviews. The study took longer time about 10 months, than its initial plan of six months.

The quantitative and qualitative data shows that there are lacks of basic facilities such as infrastructure, storage, cool chain, advance equipment, knowledge, proper markets and logistics. Some other factors also hinders the progress like long distances, underdevelopment area, illiteracy, monopoly of the contractors / agents & processors, poor law & order situation and smuggling of other products on the border. Because of missing links, unawareness and mistrust each actor in the market does not get the due share of business. People are still using traditional and conventional techniques for farming, harvesting, processing and retailing and due to this the wastage in the produce, in the chain, is more than 50%.

The government and civil society must take smart and practicable measures to uplift this industry by introducing value chain cooperatives of farmers and local communities to maximize the production. Each actor in the chain should be aware about the price mechanism and can get the due financial share. The government should also provide proper storage, processing and infrastructure facilities. The establishment of technical training institute will share the information of significance of consumer value and facilitate the stakeholders involved in the date palm industry. Nearest and accessible Gwadar port should be operationalized for the exports and facilitation centers in each union council level must be established that will help to generate the knowledge and skills and techniques of cost effective production of the date palm. Subsidies in provision of advance equipment and initiation of micro finance schemes for the poor farmers will bring the local communities back into the business. Quality control measures should also be observed through recognized mechanisms.

Tariq Qamar BALOCH (2013) GOP & AusAID II

ACKNOWLEDGEMENT I express my wholehearted and sincere indebtedness to the Government of Australia and its AusAid organization, for organizing a training course in the field of ‘Pro-‐poor market development in rural area of Pakistan’ in December 2012. I feel immense pleasure that I have been trained in the UniQuest, University of Queensland, Brisbane, which is the state of the art academic institute in Queensland Australia.

I would also like to appreciate the invaluable support and guidance from the management of the AusAid, and especially, Dr. Ray Collins, Dr. Tony Dunne, Steffeni, Suzzane, Asma and Sohail, who were always there in Australia to guide and help us on various subjects and at various levels of this study and the course.

I appreciate the organizational support by Mr. Ahmed Bux Lehri, (Ex-‐Secretary of Ministry of National Food Security & Research, presently the Secretary of Education, Trainings & Standards in Higher Education). I have an honour to work under this valued guidance and cooperation in both the Ministries.

I must mention the valuable cooperation of Mr. Mehboob Ali, Agriculture Officer, of Agriculture and Cooperative Department, Turbat. He really helps me to complete this research by physically conducting interviews with the target groups in Turbat. Without his support, this task was impossible.

I am also thankful to Mr. Abdul Latif Laghari, Director General, Pakistan Manpower Institute, who provided me an ample time and support to complete this study, along with my other assignments in the institution.

During my selection, training and research, I have been working on different positions. I have been rendering my services as an Additional Secretary in Agriculture and Cooperatives Department, Government of Balochistan, Quetta; and later I served as a Deputy Secretary in Ministry of National Food Security and Research, Government of Pakistan, Islamabad. Presently I am serving as a Director in PMI.

Tariq Qamar BALOCH Director, Pakistan Manpower Institute Ministry of Education, Training and Standards in Higher Education Government of Pakistan, Islamabad Email: [email protected] and Tel: +92 (0) 51 9252594 & Cell: +92 (0) 300 9385679.

Tariq Qamar BALOCH (2013) GOP & AusAID III

CONTENTS ABSTRACT ............................................................................................................... I

ACKNOWLEDGEMENT ............................................................................................ II

CONTENTS ............................................................................................................ III

LIST OF APPENDICES .............................................................................................. IV

LIST OF FIGURES .................................................................................................... IV

LIST OF TABLES ...................................................................................................... IV

1 INTRODUCTION ................................................................................................ 1 1.1 Project Background ............................................................................................................................... 1 1.2 Project Problem and Scope ................................................................................................................ 1 1.3 Project Objectives and Key Performance Indicators (KPIs) of the success ................... 1 1.4 Project Description and Structure .................................................................................................. 2 1.5 Outline ......................................................................................................................................................... 2 2 LITERATURE REVIEW ........................................................................................ 3 2.1 Introduction .............................................................................................................................................. 3 2.2 Mekran Date Production ..................................................................................................................... 3 2.3 Varieties of Dates .................................................................................................................................... 4 2.4 Traditional way of farming ................................................................................................................. 4 2.5 Marketing scenario ................................................................................................................................ 7 2.6 Summary .................................................................................................................................................... 8 3 METHODOLOGY ............................................................................................... 9 3.1 Introduction .............................................................................................................................................. 9 3.2 Research Model ....................................................................................................................................... 9 3.3 Tools and Framework .......................................................................................................................... 9 3.4 Focused Group ...................................................................................................................................... 10 3.5 Limitations ............................................................................................................................................. 10 4 RESEARCH FINDINGS AND VALUE CHAIN ANALYSIS ........................................ 11 4.1 Introduction ........................................................................................................................................... 11 4.2 Interview with the Consumers ...................................................................................................... 11 4.3 Interview with the Retailers ........................................................................................................... 11 4.4 Interview with the Wholesalers .................................................................................................... 13 4.5 Interview with the logistics providers ....................................................................................... 13 4.6 Interview with the Contractors / Agents (harvesting, grading and Packaging) ...... 14 4.7 Interview with the farmers ............................................................................................................. 14 4.8 Interview with the Crop Agronomists / Input Suppliers ................................................... 15 4.9 Meeting with Non Governmental Organizations (NGOs) ................................................... 15 4.10 Wastage Analysis .............................................................................................................................. 16 4.11 Material, Relationship and Information sharing among the actors in the chain ... 17 5 CONCLUSIONS ................................................................................................ 18 5.1 Conclusion .............................................................................................................................................. 18 5.2 Policy Recommendations ................................................................................................................. 19 REFERENCES ......................................................................................................... 21

APPENDICES ......................................................................................................... 22

Tariq Qamar BALOCH (2013) GOP & AusAID IV

LIST OF APPENDICES Appendix A: Interviews with the Retailers ........................................................................... 22

Appendix B: Interviews with the Wholesalers .................................................................... 23

Appendix C: Interviews with the logistics providers ....................................................... 24

Appendix D: Interviews with the Contractors / Agents (harvesting, grading and packaging) ................................................................................................................................. 26

Appendix E: Interviews with the farmers ............................................................................. 27

Appendix F: Interviews with the Crop Agronomist / Input Suppliers ...................... 28

Appendix G: Wastage at different levels in the chain ....................................................... 29

LIST OF FIGURES Figure 2-‐1: Pictures of Varieties of Dates of Mekran ........................................................... 4

Figure 2-‐2: Use of Buckets to protect the date on tree ......................................................... 5

Figure 2-‐3: Local farmer harvesting date by climbing on the tree ..................................... 5

Figure 2-‐4: Traditional tool of farming ...................................................................................... 6

Figure 2-‐5: Traditional Method of climbing tree ................................................................... 6

Figure 2-‐6: Conventional hand made belt used for climbing ........................................... 7

Figure 4-‐1: Pictures of Retail shops in Lee Market (Khajoor Bazar) Karachi ........ 12

Figure 4-‐2: Pictures of Retail shops in District Khairpur, Sindh.................................. 13

Figure 4-‐3: Wastage Analysis ...................................................................................................... 16

Figure 4-‐4: Material, Relationship and Flow of Information in the Chain ............... 17

LIST OF TABLES Table 2-‐1: Production with varieties of date production in Mekran ................................. 3

Table 3-‐1: Research Model .............................................................................................................. 9

Tariq Qamar BALOCH (2013) GOP & AusAID 1

1 INTRODUCTION

1.1 Project Background Pakistan is the 5th largest exporter of Date Palm production, in the world and in which more than 50% production comes from Balochistan and especially two Districts – Kech (Turbat) and Panjgur. The people in this area are engaged in this business for the last thousands of years (PHDEB 2008).

The demand of date crop and food security in the world is very high and the majority of consumers are outside Pakistan. The major share of profit goes to the wholesalers and exporters. This unbalanced financial share of consumer value creates uneasiness and restlessness among the farmers and in consequence of this they are shifting from this forefathers farming business into some labourers works or migration to the cities in search of jobs and not paying proper attention to this business and taking it causally. The value chain operation is irregular and lopsided where the poor farmer is not focused at all. The government interventions in the perspective of efficient pro poor value chain is very minimal. Due to above reasons, farmers are not focusing on the technical, financial and relationship aspects of the value chain, but just supplying the crop in the market as a routine as their forefathers were doing so. This situation is alarming for the region as well as for the country and needs to be addressed for better food security and income to the poor farmers

1.2 Project Problem and Scope The existing situation of the farmers is quite critical in the value chain. The area is quite potential in date farming and production but due to issues in the operation of value chain, the farmers are poor and are not getting the better price of the product. The farmers do not know about the consumer value and prices outside their area in Pakistan and as well as outside the country. Mostly the power in the market is enjoyed by the agents / wholesalers and exporters. The reason is obvious because the area is quite poor, rural and far flung from the main market that is Karachi and Khairpur District. These cities are more than 1000 km away and due to lack of proper infrastructure, processing facilities and long travel distance, the poor farmers cannot transport their products into the markets themselves. The agents/wholesalers negotiate with farmers at their own terms and conditions and collect the date crops at a very minimum price and they are being paid after two to three months.

1.3 Project Objectives and Key Performance Indicators (KPIs) of the success The project is focused to establish a guideline for an efficient value chain pro poor market development of date production in Balochistan.

• Benefits for poor farmers?


ü Information to the poor farmers regarding the gaps in the value chain, price mechanism and consumers value.

• Benefits to their communities? ü Information to the poor communities about the benefits of efficient value chain. ü Information regarding building a strong cooperatives and value chain for

communities’ benefits. • Benefits to you/your organization?

ü A research report to the Ministry and the Government of Balochistan and Pakistan. ü An opportunity for new researches in the value chain in Balochistan. ü Introduction of Intervention and improvement projects on the highlighted issues

and gaps in the value chain.

1.4 Project Description and Structure The project is focused to explore the value chain operation in date production in Balochistan. What are the main hindrances and loopholes in the technical, financial and relationship structure of the value chain? Why the production, on farm management, harvesting, product quality, logistics, retail & export business are not working properly? How the relationship and governance works among the actors of the value chain? What is the financial share of the various actors in a value chain? And what is the date consumer value and how much they are willing to pay for?

This project is based on research activities and prepares results and guideline report regarding the loopholes and gap in the operation of the value chain, which are hampering and obstructing the whole business and flow of information to the farmers in order to increase their income level. This report will further become a guideline for the government and the private industry to intervene on the identified gaps and address issues with new projects planning and implementation. These outcomes will create an impact in the whole society in which the cycle of improvement and development in the value chain will go on.

1.5 Outline

The first chapter Introduction covers the project problem, background, objectives & KPIs, scope and research structure. The second chapter represents the Mekran date cultivation and its production. Varieties, traditional methods used for cultivation and existing marketing position have also been discussed. The third chapter is about the research methodology. The fourth chapter shows the results and its analysis in detail. Conclusions and policy recommendations are discussed in the fifth chapter.


2 LITERATURE REVIEW

2.1 Introduction Date palm cultivation in Mekran is an ancient cultural tradition and livelihood. There are lots of researches and business generation measures have been carried out at the country’s level but less focused to the Mekran. The papers show the history, nutritional value, cultivation techniques & methods, management issues, improving produce and shortcomings on date farming, but a few have discussed the supply chain and marketing. The establishing of value chain concept, in real terms, is to get maximum output from produce and production, may be with value addition, in order to increase the share of profit for all the actors of value chain. In other words, value chain means to increase the size of the cake and distribute the pieces of the cakes among all sharers. The keys of success in value chain are trust, commitment and quality.

2.2 Mekran Date Production The agriculture statistics of Balochistan has revealed that the only Mekran area of Balochistan produces more than 42% of total production of date in Pakistan. In terms of area and production, the below Table 2.2.1 shows that Mekran produces about 228550 tons of date in nearly 24190 hectares. The rest of the areas of Balochistan like District Kharan, Awaran, Washuk, Khuzdar, Noshki and Lasbella produce about 8 to 10% of date in the total production of the country. Hence Balochistan produces more than 50% date in the country. Table 2-1: Production with varieties of date production in Mekran

Varieties of Kech

District Kech (Turbat) Cultivated in 24190 Hectares I. Begum Jangi 85000 (in tons)_ II. Hussaini 14000 III. Muzawti 1500 IV. Konzunibad 1200 V. Apho Dandan 1300 VI. Gognah 9000 VII. Masry / Shakar 600 VIII. Chapshook 1000 IX. Dashtari 1600 X. others 25170

Total: 142270 tons

Varieties of Panjgur

Panjgur Cultivate in 13551 Hectares I. Kehraba 26000 tons II. Muzawti 21500 III. Rabbi 7500 IV. Jawan Sur 9500 Total: 77290

Gwadar 8990 tons Grand Total of Mekran 228550 tons


The majority of the farms are very old, which have been planted by the forefathers and ancestors of the present living local people. The most part of the farms are planted in irregular way or have been grown naturally on the banks of rivers such as Kech, Nehng and Rakhshan.

2.3 Varieties of Dates Mekran produces very delicious and nutritious dates. The quality can be assessed easily through observing the colour, shines, texture, size, taste and pulp. Muzawti, Begun Janji, Dandari, Shakar, Sabzo and Haleeni are quite popular. Local people are quite generous and send them as a gift to their friends and relatives living far ways from Mekran. Just before winter season, Juice is being extracted from Keraba date by traditional way of processing and the precious Muzathi dipped into the juice and preserved for the winter season and people consume it occasionally or on special events. Figure 2-1: Pictures of Varieties of Dates of Mekran

Begum Jangi Sabzo Haleeni

Muzawti Karaba Shakar

Source: Pictures taken by Tariq Qamar Baloch in 2009-‐10 in Panjgur and Turbat

2.4 Traditional way of farming The Mekran is a quite less developed area, where the farmers used traditional and conventional methods of farming. Below pictures shows the actual way of techniques used for harvesting and saving the produce on the trees. These


techniques are obsolete in the modern world but because of poverty, negligence and communication gap.

Figure 2-2: Use of Buckets to protect the date on tree

Figure 2-3: Local farmer harvesting date by climbing on the tree


Figure 2-4: Traditional tool of farming

Figure 2-5: Traditional Method of climbing tree


Figure 2-6: Conventional hand made belt used for climbing

Source: Pictures taken by Tariq Qamar Baloch in 2009-‐10, in Panjgur

The unavailability of modern technologies, knowledge and skills certainly reduces the yield in production and increase the wastage. Lack of proper market facilities and guidance lessen the interest in the farming. The farmers suffers a lot and try to switch over to the other options of business and seeking jobs in the cities.

2.5 Marketing scenario The Agriculture and Cooperative Department, Government of Balochistan, has taken initiatives to organize the marketing network in Balochistan, by providing physical infrastructure like construction of wholesale markets and communication, establishing Market Intelligence, construction of farm to market roads, regulatory measures and promotion for business opportunities. In existing scenario, the pre-‐harvest contractor almost catch the grower / farmer, when the crop is ready on the farms. He deals with the farmer and buys the crop on the tree (not ripen) at a very low cost and farmer usually agrees with the terms and conditions of the contractor, because he needs money and the contractor pay him majority of the amount well before harvesting. The contractor further sells dates to the processors (dry / fresh) and commission agent. The processor and commission agent further sell out to the exporter and wholesaler, respectively. The wholesaler than sells out to the retailer, who displays it for the consumer.

The marketing structure is not simple as it looks like. It rather varies from market to market and all the actors in the chain, except farmer, are active and always negotiate for the better margin or profit. The major portion of the profit goes to the contractor, processor and the commission agent. In case of Mekran,


where there is no proper marketing structure and lack of processing facilities, the contractors and the commission agents approach farmer and pay them very less than the market value.

This research paper tries to find out the missing links in the value chain of Mekran w.r.t dates and highlight the practicable solutions.

2.6 Summary Mekran is one of the oldest civilizations in world. Since its history the main source of livelihood depend on the fishing on the coastal belt of Gwadar and date palm trees in Kech (Turbat) and Panjgur areas. The area is quite underdeveloped. After 2005, it has been opened for the country and the world after operationalization of Gwadar Port and Coastal Highway to Karachi. People still uses the conventional and technical methods to grow dates and marketed as usual without considering its costumer value and profit oriented business. Mostly the poor farmers and nomad labourers are engaged in this business. The varieties are superb, nutritious and delicious as well. The industry has a lot of potential to grow and there is a need of attention by the government and public side.


3 METHODOLOGY

3.1 Introduction The course work of one-‐month training program “ Pro-‐poor Market development for rural area of Pakistan” held in Brisbane, Australia, December 2012 laid the basis of this return to work plan. The groundwork of this paper is founded on course work, literature review and real world research. Robson (2002) coined the term a ‘real world research’ in which people’s opinion is deemed necessary for a qualitative analysis. This approach cannot be compared against that for experimental laboratory work.

3.2 Research Model Table 3-1: Research Model

Type of Research Exploratory and explanatory

Strategy Course work, Literature review, Research Problem, Questions and Analysis

Data Collection Qualitative

Unit of Analysis Actors / stakeholders involved in date production value chain in Balochistan

Technique Self completion questionnaire and evaluation of literature review (existing scenario, production and missing links)

Analysis Value Chain Analysis through Value Chain framework.

Recommendations Evaluation of overall data and extracting the findings of the research for suitable recommendations

3.3 Tools and Framework The following tools are being used for the project.

1) Course work and Literature Review 2) Semi-‐structured interviews with the focused group including the farmers 3) Meetings with the organizations and NGOs 4) Value Chain Analysis 5) Value Chain framework 6) Report writing


3.4 Focused Group 1) 3 Retailers; 2) 3 wholesalers / agent; 3) 3 logistics providers; 4) 3 contractors / agents: harvesting, grading and packaging; 5) 3 Farmers; 6) 3 Input Suppliers 7) Extension, Research and Engineering wings of the Agriculture and

Cooperatives Department, Government of Balochistan, Quetta 8) Ministry of National Food Security and Research, Government of Pakistan,

Islamabad. 9) Agriculture Research Council Pakistan, Islamabad 10) NGOs, who are working in the similar projects or related activities

3.5 Limitations Initially the project was planned with full zeal and passion, but because of certain limitations and other job engagements, the project was not carried out as it was planned. The purpose was to physically visit the area and interview the people involved in the business, but because of poor law and order situation in Mekran, job commitments and unavailability of resources the method of interviews and data collection was changed. The semi-‐structured questions were designed for each of the actor like farmer, contractor, retailer and consumer and were sent to the Agriculture department Turbat. Through contacts and requests to the authority concerned, the officers were deputed to interview the actors and gathered the data and other relevant information. They did well and forwarded the recorded material through post. This process took a bit longer time but the desired information was more or less collected.


4 RESEARCH FINDINGS AND VALUE CHAIN ANALYSIS

4.1 Introduction The survey was carried out by designed the semi-‐structured interviews on the format with different questions with the different actor of the value chain. From each category at least three persons were interviewed in order to get the different views for analysis. Walking the chain from retailer to wholesaler up to the input supplier started the process. Physical interviews were conducted and people responded not upto the expert or expected level but somehow, they highlighted the core problems and solutions. A big gap of communication has been observed among the actors and most of them specially the farmers did not know the business, just next to communicator like contractor or agent, in the chain.

4.2 Interview with the Consumers At various occasions, the consumers’ viewpoint was also obtained. It was observed that every consumer want the good quality of dates, including, cleanliness, freshness, even size, desirable colour, standard packaging and deliciousness. Nevertheless, these are considered as the consumer value, but people were not willing to pay more or extra money. So the majority of the consumer in Pakistan goes for the cheaper side, as the majority is poor. Mostly people buy dates in Holy Month of Ramadan, where people prefer to break the fast at the sunset time with dates. During the rest of 11 months in a year, the consumer demand is very little. It is consumed occasionally or a gift purpose.

4.3 Interview with the Retailers While interviewing retailers in Turbat, Mekran, and putting sort of semi-‐structured questions, as stated in Appendix A, the retailers were of the opinion that the sale of date in previous days was very good and all locals, visitors and non-‐locals were the buyers. Presently, due to bad law and order situation the sale has been reduced. Though there is a demand of clean and good quality of produce, but lack of proper facilities of packaging, the produce is transported in plastic bags or loose cartoons. People mostly like the good variety of dates like Begum Jangi and Muzawathi and locally it has been sold out at around Rs.40 to 50 only per Kg. When it is compared to the other major cities of Pakistan, the same variety and quality is being sold around Rs.200 per Kg. The display is not very attractive, mostly being displayed on the floor or some shops on the racks. The only value addition is that traditional people make syrup of dates and mix with some sesame seeds for a flavor and presented in common plastic bottles. The freshness and wastage is compromised because of unavailability of proper storage facilities like cold storage and cool chain. Due to this the produce become dry and lose weight. No promotion of the product is being practiced.


Mostly retailer deals with the good supplier, who delivers produce in time. Cell phone is the mode of communication with the suppliers and transaction method is only cash. “The real problems are: unavailability of date market; unavailability of cold storage; lack of packing and cleaning. If these facilities will be given then wastage can be controlled and production marketed well.” Sometimes due to poor law and order situation the market get closed and every thing stopped, ultimately leads to the loss of produce.

The Date Market (Khajoor Bazar) Karachi is also not at any national or international standards. The following pictures reveal that the display of dates and environment of the market is not clean, hygienic and below standards. Value addition in produce and promotion is neglected, even than the retailers in Karachi earned lots of money than the growers in Mekran.

Figure 4-1: Pictures of Retail shops in Lee Market (Khajoor Bazar) Karachi

Source: Pictures taken by Mehbub Ali (Agriculture Officer, Turbat)


Figure 4-2: Pictures of Retail shops in District Khairpur, Sindh

Source: Pictures taken by Tariq Qamar Baloch, Sep 2013

4.4 Interview with the Wholesalers The wholesalers also expect in good quality and variety of dates, by practicing general norms and have no enforcement criteria. Customer and supplier relationship mostly depends on trust, timely payment and good price through telephone and mobile. No quality management system or terms of trade are prevailing; no inventory or ordering cycle is managed. All is done on conventions and relationships. The wastage is quite high ranging from 10 to 40%, case to case. In general lack of infrastructure, price mechanism, storage facilities, monopoly of middleman add the transportation cost, increase wastage and deteriorate the quality as well (see detail at Appendix B)

4.5 Interview with the logistics providers Logistic providers replied that they go on the spot, on farm and carry the produce. Mr. Qurban (Logistics provider) said that, “The farmers just grow the dates and that are being harvested, graded, packed, loaded and transported through agents /contractors. No facilities of temperature control, storage, grading, packing are available. Infrastructure is poor that damage the produce during transportation.” Meanwhile no specified terms or steps are involved in this whole process. Rain, high fuel prices and poor law and orders situation hampers the process that directly affect the quality and price of the produce. Both customers and supplies emphasize on the price fixation by demanding and considering the good variety, timely delivery, safe & undamaged product and minuses damage /wastage during transportation. Nonetheless, trust plays a vital role in business (Appendix C).

The transportation charges varies from location to location such as it costs Rs.50,000/-‐ for Karachi and Rs.100,000/-‐ for Sukkur on one load of Mazda (smaller one) Truck. The variation in the price occurs because of fuel, route, season and demand of the product. The wastage is about 2 to 5% because of poor infrastructure and hot weather and the responsibility bears by the agent. There


are certain issues on the marketing business such as lack of metal roads & access to the market, insecurity and other infrastructure facilities (Appendix C).

4.6 Interview with the Contractors / Agents (harvesting, grading and Packaging)

When inquired from the contractors / agents regarding the harvesting, grading and packaging of the produce to ensure quality, they replied than all is done manually (see Figure 2-‐3). Grading is done on farm and packed in simple plastic bags and cartoons. No proper processing system is available. The concept of value chain ‘growing the pie’ is not observed and practiced. The only value addition requirement is cleanliness and grading. The price depends on the time of ripen produce like harvesting from June to July season and early in the morning. Agent / Contractor just visits to farms and inform them for cleanliness and grading especially only. No mechanism of managers for harvesting, production and logistics is being practiced. All process is carried out in a simple way (Appendix D).

The cost of one load of truck amounts Rs.50,000 to Rs.100,000 or Rs.100 to Rs.230 per 20 Kg for Karachi and Sukkur, respectively. The variation occurs in prices upon the fluctuation of oil prices. The wastage depends upon the picking / harvesting method and it may vary from 25 to 30% or even no wastage in case of Mr. Musa’s reply. He said that he sell all produce “in shape of immature date, dry date and fresh seed”. They were of the opinion that lack of technical methods & machinery and inadequate labour create picking problem. The price can go down if the labour is cheap and proper infrastructure facilities are in place. Error! Reference source not found.

4.7 Interview with the farmers 4.7 Interview with the farmers The farmer considered to be the main driver of the chain, replied on the questions that the land is prepared for plantation by leveling, digging pits and making channels for irrigation. When the rain or high wind occurs, covering through simple plastics or mats can preserved the dates (see Figure 2-‐2). Mr. Waja Iltaf (farmer) said that they store the produce in specific clean place called ‘shaganz’ locally, on the farm, where the produce is being graded and packed. No fertilizers are given to the trees, mainly due to high cost. Sometimes they seek guidance from Crop agronomist or agriculture department but that also doesn’t work because the government employees do not cooperate and incompetent too. They have only access to the commission agent or the contractor for their product and when the crop is ready they usually visit the farms. They do not approach to the wholesalers, retailers or any other person to get the right opinion or rates (Appendix E).

The farmer handover the trees / land to the contractor or another farmer contractor, who monitor the production and do expenditures on labour. The


profit sharing is about 50% for owner and contract farmer. If the contract farmer is not hired than the owner bear the cost per tree about Rs.1000 to Rs.1500. As a business point of view the farmer sell his product at Rs.15 to 35 per Kg and the agent / contractor further sell it at about Rs.40 to Rs.75 per kg and it depends upon the variety and quality of dates. The wastage ration is about 20 to 50%, varies from farm to farm and by management. The farmers didn’t answered the right question regarding the problems faced during harvesting, grading, packaging especially causes of wastage (Appendix E).

4.8 Interview with the Crop Agronomists / Input Suppliers The Crop agronomists were also approached in this project. Some of the questions were also put before them. The agronomists replied that the key stages in the process of producing dates upto the point of harvesting are pollination, fruit setting, curing, cleaning, cutting of thorn, drying, sorting and picking. They further stated that the relation between these stages are very important, because the pollination / crossing and picking process effects upon the good quality of the product. The quality and consumer value can be maintained by pollinating good health plants and experts hand in picking. The fruit quality, quantity and variety also effects on the consumer value. The average production one tree is about 40 to kg (Appendix F).

The input suppliers reveal that the use of proper irrigation and fertilizers especially FYM & NPK produce good quality and quantity. These measures can improve the physical appearance of the dates that lead the consumer value. Mostly farmers don’t go for the hired agronomists; they usually apply techniques in practice by themselves or seek any farmer or person in the vicinity who knows better and very rarely approach to the agriculture department. They share information regarding the production quality and diseases if any. The management of water and fertilizers and pesticides are critical, ibid.

The issues at this level are that ‘they don’t use fertilizers due to high costs. Farmers mostly don’t depend over crop agronomists and input suppliers and don’t want to pay for hired expertise. They grow traditionally and taken it for granted as mostly the tree were planted by their forefathers” ibid.

4.9 Meeting with Non Governmental Organizations (NGOs) NRSP (National Rural Support Programme) office in Turbat was visited to gather some information regarding the subject. The NRSP informed that they had made a project to work on date processing and marketing. In this connection NRS hired a consultant from PARC (Pakistan Agriculture Research Council) Islamabad. The consultant paid a visit to the old out of order installed earlier, existed factory located area in Turbat. He informed NRSP officials that the installed machinery in this factory was of good quality, as compare to machinery installed in Khairpur and Sukkur date factories. He was not s about the failure but he


mentioned that the factory location might be the reason, which is quite far away from the farms and because of that it couldn’t be utilized and managed properly.

According to NRSP, the consultant didn’t suggest for a huge factory, rather some small processing plant could be installed at different places. Therefore, considering the opinion of the consultant, NRSP installed three small date processing plant in district kech (at Umerikhen, Ginnah and Mand) with a cost of Rs.500,000/-‐ each. NRSP devised policy that the community should run these plants after installation. But unfortunately, this technique was also failed. Except one (Umerikhen) other two are plants were also failed due to community negligence and some other reasons.

NRSP was also on the opinion that the farmers are no more interested in this date production business because of low market prices. The large farm holders are also not satisfied as they are unable to earn their livelihood from this business. Therefore, they are seeking other source of income.

4.10 Wastage Analysis All interviewees have mentioned different opinions pertaining to the wastage. The farmers, wholesalers, logistics providers, contractors / agents and retailers were actually not sure about the wastage; the reason might be that there is not mechanism for measuring the accuracy in the wastage. The answers are seems exaggerated, but we can take the bottom values for analysis. Especially the management on the farm creates lots of wastage and later on the harvesting, grading and packaging also adds a handsome loss in the produce. Unavailability of infrastructure and other storage facilities also increase the wastage percent. The below figure shows the percent share of wastage at different levels, with the total loss is approximately 59% of the produce, as per their assessments (Detail figures at (Appendix G):

Figure 4-3: Wastage Analysis

Wastage 59%

Retailer (3%)

Wholesaler (17%)

Logistics (3%)

Contractor / Agent (42%)

Farmer (33%)


4.11 Material, Relationship and Information sharing among the actors in the chain

The most significant part of the value chain is the relationship of all the actors in the chain. The key factors to make a strong chain are trust, commitment and quality of the product. The figure below shows the flow of material and information from the Input Supplier till to the consumer, with in the country and abroad as well. It has been observe that the only flow is from one actor to the next only. The rest of the actors have very weak rather no contact. It has been also found that mistrust and lack of commitment is also prevailing in most of the deals. The actors are there, but information gap is very high. The local farmer or grower is completely in dark, what is happening in the big markets, like in Sukkur, Khairpur and Karachi Markets? Especially they are unaware about price mechanism and consumer value of the product.

Figure 4-4: Material, Relationship and Flow of Information in the Chain

Input Supplier

Farmer /Grower

Retailer

Consumer

Contractor / Agent

Logistics 3rd Party Local

Markets

Wholesaler

Retailer

Consumer

Contractor / Agent

Logistics 3rd Party

Karachi Market

Wholesaler

Retailer

Consumer

Processor (Sukkur & Khairpur)

Wholesalers in pakistan

Retailer

Consumer

Exporter

Importer

Retailer

Consumer

Crop Agronomist


5 CONCLUSIONS

5.1 Conclusion The concept of value chain for pro poor market development in advance world is quite significant. The individual actor is nothing without the chain. The strong painstaking parameters are trust, commitment and quality of the product. The economy of the local community cannot grow without these parameters, even in any business or anywhere in the world. The trust building depends upon the negotiation on price fixation in the deals and commitment in the set time for delivery of the product with quality product. These parameters are quite missing in the chain of date production in Mekran, due to many reasons such as less development, low literacy rate, far-‐flung from the metropolitan markets and inattention by the government.

Losses in date produce / crop is quite high. It has been observed on site and inquiring from other public and private organizations that the wastage occurred due to many factors such as:

1) Improper on farm guidance by crop agronomist and input suppliers. 2) Lack of proper supply of fertilizers, pesticides and biological control on

diseases or invasive species like ‘Dubas Bug’ (Sheerago) in Panjgur. 3) Unavailability of technical and mechanical support for monitoring. 4) Inefficient technique and tools in preserving produce on tree. 5) Vulnerability from rain and winds. 6) Inexpertness in picking / harvesting and post harvesting handling. 7) Inappropriate methods of grading, where no technical and mechanical

equipment are used. 8) Poor quality of packaging materials. 9) Missing of cool chain. 10) Unavailability of storage facilities and poor infrastructure

The reason behind losses, mistrust and segregated mode of marketing is that there is a lack of Collaborative Problem Solving Methodology (CPSM) (Chambers 2012), in other words, lack of team work in highlighting the issues / losses. There is a dire need and making efforts to overcome those issues and build a profit-‐oriented platform for all poor communities. For every effort or initiative there must be an appropriate technique to resolve the problems. The concerned stakeholders, who are deeply involved or affected in the business, should resolve issues and problems by sitting together.

The problem question was how to improve the pro poor market environment and livelihood of growers regarding the date production in Balochistan. Considering the worth of date production, the study was carried out to know how the value chain is operative? After having study we know that there are hundreds of problems in this industry and the value chain market is almost


inexistent. Every actor in the chain is doing his job independently and not connected with all the actors except the one to whom one is dealing as a supplier or a customer. The disordered condition of the market creates variation in the price mechanism. The farmer / grower is enforced to sell his product at cheaper rate or at the sweet will of the contractor or the processor. Because he has no other option, otherwise his whole crop would like to be wasted.

In light of present scenario, the grower is least bothered about the customer value of the product. He does not realize its importance in the international market. The customer goes for the good quality, taste, texture, colour, pulp & seed size, freshness, softness and even organic produce. Non presence of cooperatives of value chain has lessen the customer value and economic benefits of date palm, where the growers are transforming their source of earning from date production to other jobs and businesses.

The Mekran is bordering Iran on the west and people are easily engaged in the trade with Iran legally as well as illegally. For example smuggling of fossil fuel products from Iran to Pakistan and cattle from Pakistan to Iran is quite common. This illegal trade always seems lucrative and easy earning process and due to this public goes for it. This transformation is highly affecting the ancient agricultural date production business. The intervention of value chain and other agribusiness opportunities can bring a change and people can shift from illegal business to the legal one.

5.2 Policy Recommendations Government of Balochistan and civil society should take a lead role to build this highly profitable date production industry, in which the poor farmers and labourers are involved. Some of the suggestions are thinkable and doable, should be priorities for development of this industry, such as:

1. Provision of Market Facility, may be located in Panjgur, Turbat and Gwadar. The markets should be well connected and organized.

2. Gwadar port facility, which is the part of Mekran area, should be availed for exports especially. It will drastically reduce the cost of logistics to Karachi and Sukkur.

3. Processing plants, infarastructure and storage facilities should be established in Panjgur, Turbat and Gwadar.

4. Training school for date growers and other actors should be established at Panjgur and Turbat. Where the information and skills regarding consumer value, importance of value chain marketing, use of fertilizers & pesticides; crop agronomic tips; modern techniques in growing, harvesting, post harvesting handling, packaging, logistics provision; skills development, cost effective methods, value addition products, quality control measures and international market access could be shared.


5. Cold Storages and cool chain should be introduced to tap the international markets.

6. Quality control mechanism should also be enforced for its accreditation and certification as per WTO standards.

7. Agriculture department should provide the agriculture extension services by establishing a network of facilitation centers at each Union Council Levels.

8. Government can introduce subsidies in machinery and equipment especially used for the date production.

9. Awareness campaigns, seminars and workshops to be conducted to sensitize public at all levels (educational institutions, villages, societies, government and other stakeholders) about the customer value of date produce and its benefits for the poor.

10. Micro finance schemes with easy loan conditions, with regular monitoring of the use of finance in the date sector only focused on women should be launched to generate the economy of the area.

11. Government should also take concrete measures to improve the law and order situation in the area. Security should be provided to the public and congenial environment would certainly improve the living standards and economy of the province.


REFERENCES AIS (2008). Date sector report and value chain development program. USAID/ Iraq/Inma Agribusiness Program. Agland Investment Services, Inc. 900 Larkspur Landing Circle, Suite 205 Larkspur, CA 94939. Available at www.aglandinvest.com

Chambers, Barbara (2012). Pro-‐poor Market Development in Rural Areas in Pakistan. Australian Institute for Sustainable Communities. University of Canberra.

FAO (2002). Date Palm Cultivation. FAO Plant Production and Protection Paper. 156 Rev.1. Rome

gtz (2007). Services for Rural Development. Reader: Pro-‐Poor Services in Value Chain Promotion in Concept. Federal Ministry for Economic Cooperation and Development.

gtz (2007). Linking Value Chain Analysis and the ‘making markets work better for the poor’ concept.

PHDEB (2008). Dates Marketing Strategy. Pakistan Horticulture Development and Export Board (PHDEB), Islamabad, Pakistan.

Ray Collins (2012). Principles of Value Chain Management. Pro poor Market Development in Rural Area. The University of Queensland, Australia.

Robson, C., (2002). Real world research: a resource for social scientists and practitioner-‐researchers. 2nd ed. Oxford: Blackwell.

Sarfraz Hassan, Khuda Bakhsh, Zulfiqar Ahmad Gill, Asif Maqbool and Waseem Ahmad (2006). Economics of Growing Date Palm in Punjab, Pakistan. International journal of agriculture & biology. Departments of Environmental and Resource Economics, Development Economics and WTO Cell Marketing and Agribusiness, University of Agriculture, Faisalabad–38040, Pakistan. Available at http://www.fspublishers.org/website/images1/55477

Spriggs, John (2012). Principles of Participatory Action Research (PAR). Australian Institute of Sustainable Communities. University of Canberra.

Tony Dunne (2012). The Principles of Relationship Management. Pro-‐poor Market Development in Rural Area. The University of Queensland, Australia.

UNIDO (2011). Pro Poor Value Chain Development: 25 guiding questions for designing and implementing agroindustry projects. United Nations Industrial Development Organization (UNIDO), Vienna, Austria.


APPENDICES Appendix A: Interviews with the Retailers

# Questions

Replies from Retailers

Mr. Yaseen Mr. Hussain Mr. Imam Bux

1

Retail

Prices

Who are typical

purchasers of Dates in your stores?

Local and Non-‐locals. The non-‐locals are more because locals have their own date farms. The sale is less due to bad situation of law and orders

Mostly non locals and visitors are real purchaser

Mostly purchasers are non-‐locals, but now due to bad law and order situation the sale

is reduced.

2

What are the quality specificatio

ns?

Clean, and put it into plastic bags.

Clean, graded and packed in plastic and cartoons. Fresh and dry. ‘Begum Jangi’ in small size

and good in taste

Clean and good quality

3

What are the usual selling Prices?

There are different selling price depend on varieties. Rs.40 to 50 per kg (Begum Jangi); Rs.30-‐35

per kg (Hussaini)

The price are different for different varieties but mostly we sell ‘Begum Jangi” and its price is Rs.40 to 50 per kg

Rs.40 to 50 per kg (Begum Jangi); Rs.80 to 90 per kg

(Mozawati)

4 How is the product Displayed?

The product displayed on floor, packed in plastic bags,

cartoons etc.,

It displayed on the front of shop, shelf. We also sell it by making syrup of dates and also mixed with peanuts and

sesame seeds

In the plastic bags displayed on the shelf / floor.

5

Do they do any

promotion?

No, we are not advertising for sale of date production No No

6

In Store System

How often do fresh deliveries arrive at the store?

By baskets and cartoons. No cool chain facility is available

By order fresh dates reach to store, packed in cartoons and

baskets

By basket and cartoons daily reached to shop, through

routine transport in pickups

7

How is it stored before being put on display?

It stored in the room, where put into cartoons, plastic bags etc.,

Dump in shop, no proper storage method is available In the store and shop

8

Is there any

wastage, and why

Yes, there is some wastage occurred, when it not sold at the same day and it lose weight, due to dryness

Yes, unavailability of cold storage, there is wastage and it

also loses the weight.

Yes, if all has not sold then it reduce its weight, 2 to 3 %

wastage

9 Supplier Relationships and Management

Do they select their supplier?

Yes, suppliers are selected by retailers

Not selected any supplier come we take the product

Yes selected and also not selected

10

What are their

expectations and

performance

measures by of

Not cheat us and provide good quality dates. The production reach in time at the store.

We expect to receive good quality dates from suppliers Clean and good quality product


suppliers?

11

What do they

communication with suppliers about?

The communication with suppliers done by telephone

and cell phone By cell phone By cell phone

12

What are the

payment terms?

The mode of payment is cash By cash By cash

13 General

What are the real problems/ issues in Dates

marketing business

The real problems are: unavailability of date market; unavailability of cold storage; lack of packing and cleaning. If these facilities will be given

then wastage can be controlled and production marketed well

Infrastructure: unavailability of market and cold storage. Encroachment must be

reduced. Provision of market and cold storage then we

reduce problems

Lack of Cold storage and Market. Some time Bazaar is closed due to law and order

situation.

Appendix B: Interviews with the Wholesalers

# Question

s

Replies

Mr. Yaseen Mr. Ghulam Haji Ali Mohd

1 Product

Integrity

What are the wholesaler’s specifications for product quality?

Good quality dates and good varieties such as ‘begum jangi’,

‘haleeni’ and ‘Chowara’.

Good qualities of dates of different varieties such as ‘Begum Jangi’, ‘Hussaini’,

‘Gokra’ and mix. It is graded by the farmer

Good Quality

2 How are they enforced? By general norms No specifically. Nil

3 Customer Relationship and Management

Expectations and

performance measures of

retail customers?

Good price, timely payment Good price and timely payment Pay timely in cash

4 Communication with retailers?

By cell phone and telephone and some times visit their

shops. Telephone and cell phone By phone

5 Terms of trade with retailers?

There is no other terms of trade just we do our work on

trust Not specifically No any terms

6

Business

Systems

Mechanism of deliveries

– the ordering cycle,

inventory management

There is no other mechanism of delivery, we send the

product by truck and call them and they receive the product.

No other mechanism exists. By ordering and receiving the

products Just ordering cycle


7

Which Quality

management systems are

used?

No specific system, just visually ensuring clean and

good varieties Not applicable

No proper quality management system

8

Supplier

Relationships and Management

How to decide which suppliers to work with?

Trustable and honest Who pays in time and timely provision of production Should be trustable

9

Expectations and

performance measures applied to suppliers

Who ever provides best quality and in time delivery

This is risk. Some time we received on time but sometimes not

Trust and timely pay

10 Communication with suppliers

Cell phone By cell phone Phone

11 Terms of trade with suppliers

There are no terms of trade; we are doing our trade on trust. No written shape.

No other system was developed. All by trust. Nil

12 Wastage

What is the percentage of wastage at your level and how you reduce it?

10% wastage at this level because the cold storage are not available. Lack of proper

market for dates.

20% wastage, If timely not sent the product, then it reduce the weight

30 to 40% during transportation, storage.

14 Genera

l Issues

What are the real

problems / issues in the

date marketing business

Infrastructure not available; no proper price mechanism; cold storage are not available. If government provides these facilities then problem could

be reduced.

Transportation cost high, lack of cold storage.

There is no any proper market for date in Kech. The purchase is only through middle man

Appendix C: Interviews with the logistics providers

Interviews with the logistics providers

# Questions Replies

Mr. Qasim Mr. Amjad Mr.Qurban

1 Produc

t Integri

What storage and handling facilities are present?

Storage facilities are not available. We go to the spot and carry the production

Nil No facilities available


2

ty What steps are involved from receival to the

packaged product through to dispatch

of product to customers?

What are the activities,

conditions and time involved? e.g., how long are dates held from receival to dispatch and what conditions are they held under?

The transporter and wholesalers are involved.

We do not store the date to our transport. We load the dates

from the farm.

The dates are harvested, graded, packed into the plastic bags or cartoons, manually. The production loaded and transported from the farm to the so-‐called market. It takes almost one or two day. No temperature control or storage facilities

present on the farm as well as in the market.

The farmers just grow the dates and that are being harvested,

graded, packed, loaded and transported through agents / contractors. No facilities of

temperature control, storage, grading,

packing are available. Infrastructure is also poor that damage the

product during transportation.

3 What can go wrong

and why? Not sure

Rain can damage the crop on the form. Law and order situation is bad and hinders the sale of the product

sometimes.

High fuel prices make trouble for the

transporter to bring crop into the market.

4

Communication and Management

What communication occurs with customers i.e., wholesalers or retailers?

Not sure

Price negotiations. It also depends on the demand of the good varieties of the dates.

Timely delivery of the products. Also on the damage during the transportation.

5

What communication occurs with the

part of the business that supplies

packaged product to you?

Not sure On the rate fixing on the

transportation. On the weight and

transportation charges

6

What are the expectations and performance

measures applied by customers?

Trust and no other system is involved

Timely delivery of the products. Safe and

undamaged products.

Good varieties. Trust and timely payment as

well

7

Business

Management

What are the cost of storage and transport?

Rs.50,000/-‐ cost for Karachi and Rs.100,000/-‐ for Sukkur

Market

Rs.45000/-‐ to 55000/-‐ cost for Karachi and its double to Sukkur on one load of a Mazda truck

It varies from Rs.50,000/-‐ to 100,000/-‐ to Karachi

and Khairpur, respectively.

8

Are there any variations in the cost of storage and

transport?

Yes it depends upon the price of the POL, etc.,

Yes, the fuel price determines the cost of transportation and no facilities are available on

the storage.

It depends on the price of fuel, route, season and demand of the product

9 Wastage

What is the percentage of wastage at your

level and how your reduce it?

It is the responsibility of an agent. It may be 5 to 10%

2 to 5%, normally, due to poor infrastructure and hot weather.

4 to 6%. Can be reduced by having good

infrastructure and proper storage facilities.


10

General

Issues

What are the real problems / issues

in the date marketing business

Lack of infrastructure, market. The metal road must be

available for transportation.

Roads and security is not available.

Poor infrastructure. Access to Market.

Appendix D: Interviews with the Contractors / Agents (harvesting, grading and packaging)

# Questions Replies

Mr. Murad Bux Mr.Iqbal Mr. Musa

1

Product Integrity

How the date is harvested, graded and packaged to ensure its quality maintenance?

It is harvested, graded and packed manually.

The packing material i.e., plastic bags and cartoons are provided by the

agent.

All work is done manually but it can be improved by latest machinery and technical awareness

After harvesting it brought to curing yard for drying, then clean the

date by separating immature dates

2

How this system creates value for the Chain. What aspects of the system can contribute to

‘growing the pie’ from a value chain perspective?

If the product is processed well than it will create value for the chain and price go high.

Not sure

This system create a value for the chain, if the date is clean, then the price will be high and if it is not graded

then price less.

3

Information,

communication and relationshi

ps (governan

ce)

What information determines the price time of harvest?

June to July it ripen and harvesting starts

In Month of July, when full ripen.

The best time of harvest is early in the morning till 11:am in the month of June

and July

4 What information

flows from harvest to logistics?

Agent timely visits and share information Middle man timely visiting

When date cleaned, graded and ready then the

transporter is called.

5

What is the relationship between

the manager responsible for

harvest, the manager responsible for

production and the manager responsible

for logistics

Not Applicable N/A N/A

7

Business Manageme

nt

What are the cost of storage and transport?

Rs.50,000/-‐ per truck for Karachi and Rs.100,000/-‐

for Sukkur

Rs.100/-‐ per 20 kg at Karachi and Rs.230/-‐ at Sukkur for storage.

It depends upon the area where date transported. For Karachi Rs.50,000/-‐ and Sukkur Rs.100,000/-‐

8

Are there any variations in the cost

of storage and transport?

Yes variation in the cost depends upon the price of

fuel Yes

Yes. It depends upon the price fluctuation of oil. If price of oil high cost high and if less, cost is less.

9 Wastage What is the percentage of

wastage at your level and how your reduce

It depends upon the picking system

Depend on picking. Almost 25 to 30%

No wastage because we can sell all the thing of date in shape of immature date, dry date, fresh seed etc.,


it?

10

General Issues

What are the real problems / issues at farm, harvesting, grading and

packaging and how these problems can

be resolved

No proper Market and infrastructure available

No proper market and transportation facilities

Picking problem, because it needs more labour. It can be reduced when labour is cheap and if technical method is applied.

Appendix E: Interviews with the farmers

# Questions Replies

Waja Iltaf Mohd Jan Manzoor

1

Product Integrity

How the land is prepared for the

plantation of date palm trees?

Leveled the land, digging the pits for plantation

Leveling land, make channels and digging pits

Leveling, channel and pits

2

How the fruit is preserved from

diseases and rain or etc.,

Rainy season cover with plastics

Covering with mat or plastic. No proper method

for disease control

Cover with mat and raining time with plastic

3 How do you store your product and ensures its

quality?

Stored in specific place called ‘shaganz’, where graded and packed

Store in specific and clean place on farm called ‘shaganz’ locally.

Stored in safe and clean place

4

Do you use any fertilizers for better production and if yes then which once’?

No No No

5 Information, communication and relationships (governance)

How often you seek advice or any support from crop agronomist / agriculture department

Some time No Some time

6

To whom you mostly contact for your

product and by which mode (Tel or personal:

to contractor, commission agent, logistic provider, wholesaler, retailer

etc., What you talk with them?

Commission agent

Middle Man

Middleman (agent of factory from Sukkur) came on farm

and takes dates.

Middle Man

Middleman visits field in season. We talk; bring dates

as soon as possible.

7

Business Management

How much you pay or expenditures on a one tree during one season?

Rs.1000 to Rs.1500/-‐ per Tree

Land given to the contractor to monitor the

production and do expenditures on labour. The profit sharing is 50% for owner and contract

farmer

Rs.1000/-‐ per tree


8

Are there any variations in the price of the product? How much the contractor / agent pay you and they sell forward to the wholesalers or retailers?

Yes, we sell in Rs.15 to 20 / kg. They sell about Rs.40 to

60 /Kg.

Yes. They take from us at Rs.30 to 35 per kg and sell further at Rs.50 to 75 per

kg after processing.

Yes. Rs.20 to 30 per kg and sell at Rs.50 to 60 per kg

further

9 Wastage

What is the percentage of wastage at your level and how your reduce

it?

20 to 25% 30 to 40% 40 to 50%

10

General Issues

What are the real problems / issues at farm, harvesting,

grading and packaging and how these problems can be

resolved

Lasted Machinery, proper guidance, Marketing and

Processing plant

No any factory. No proper roads. No cold storage

facility. No special structure on farm for storage. If these facilities are available all problems could be solved.

Lack of proper farm to market roads,

transportation, market facility, processing plants

etc.,

Appendix F: Interviews with the Crop Agronomist / Input Suppliers

# Questions Replies

Mr. Jameel Ahmed Mohd Abbas Mohd Naeem

1 Crop Agronomy

What are the key stages in the process of producing dates up to the point of harvest?

Crossing and picking just two stages

Cutting of thorn, picking, drying, sorting & picking.

Pollination, fruit setting, curing, cleaning and harvesting

2 What is the connection between each of these stages and what consumers value when they purchase dates?

The relation between both two stages are very important because the crossing and picking process effects upon the good quality of dates and bad crossing & picking effect quality & consumer value

All are interlinked. Consumer value differs for different varieties of dates.

After pollination upto cleaning, main value to maintain fruit quality and quantity.

3 What would be the cost of production of dates per tree or per Kg on the farm?

In my knowledge there is cost of production but in Pakistan the cost is very less.

Not Sure but not very much The yield of per tree is near to 40 kg, and the cost of production is quite less, because of less interest of the farmers

4 Input Supplies

What are the key inputs in producing good quality dates?

Water: required in good amount and FYM is the input to produce good dates, but not always, just sometimes it requires

FYM and NPK and sufficient irrigation

Proper irrigation and FYM are necessary for good quality trees.


5 What is the connection between each of these inputs and what consumers value when they purchase dates?

There is an important connection between both input because more amount of water and FYM improve the physical quality of date which will be higher consumer value

As input increases, cost of production increase, but due to lack of grading inferior and superior quality, the purchasing price is almost the same.

Proper management of the inputs adds value in the production.

6 Input Suppliers

Who does this farmer deal with for each of the main input supplies?

An office from Agriculture Extension service deals with the farmer

Not specific, any one who knows better in the vicinity

Mostly the farmers apply inputs, at their own level and resources.

7 How are these suppliers chosen?

Not particularly, because of expertise

No choice Nil

8 What information is shared with input suppliers?

Probably regarding the good quality production and diseases if any.

Very less information sharing and people do not care about it.

No sharing of information

9 What can go wrong and how can it be managed?

The management of water and FYM is critical and that should be provided in time.

Not sure Due to high cost, the farmers do not apply inputs

10 General issues

What are the real problems / issues at crop agronomy and input suppliers?

The real problem are transportation, lack of proper infrastructure, lack of knowledge and lack of machinery etc.,

They don’t use fertilizers due to high costs. Don’t want to pay for hired expertise. They grow traditionally and taken it for granted as mostly the tree were planted by their forefathers.

Farmers mostly don’t rely over agronomists and input suppliers.

Appendix G: Wastage at different levels in the chain

Description Recorded percent

Percent loss Share in total wastage

1 Retailer 2 to 3% 2 03%

2 Wholesaler 10 to 40% 10 17%

3 Logistics level 2 to 5% 2 03%

4 Contractor / Agent (Harvesting, grading & packaging

25 to 30% 25 42%

5 Farmer – on farm management

20 to 30 % 20 33%

Total 59%

Pro-poor vale chain, date palm produce in Balochistan

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