Seminar on Agriculture
Common Facility Centres
for Horticulture Products
Pakistan Horticulture Development & Export Company
Ministry of Commerce, Government of Pakistan
Monday 28-03-2011
0
Objectives & Operational Divisions
A. Supply Chain Management
i) Facilitation & Support on international compliances for
food quality & safety
ii) Capacity building of stakeholders through trainings &
technical assistance
iii) Product Development & Certifications
B. Marketing
i) Market Intelligence & Information Dissemination
ii) Product & Market Diversification
iii) Linkages Development & Trade Delegations
iv) Trade Dispute Settlement
C. Business Development
i) Supply Chain Infrastructure
ii) Value Addition
1
1
Requirement of Common Facility Centres

Current Horticulture Production is (for 2008-09) 15.0 million tons. Based on domestic market rates
of fruits and vegetables, its total worth is estimated at around Rs 225 billions($2.60 billion).

Among other things, one of the main constraint of horticulture sector is heavy post harvest losses
estimated at 20-40 % mainly attributable to poor/ less than satisfactory infrastructure for post
harvest treatment of horticulture produce e.g., pack houses, cold stores & refrigerated transport.

Compliance of SPS requirements of the importing countries requires infrastructure like, hot water
treatment, cold treatment, irradiation, vapour heat treatment etc. besides Global GAP, HACCP, ISO
22000 certification.

Since, the above said infrastructure is costly, establishment of common facility centres is the
appropriate solution.

Collection Points being established by PHDEC is a step in this direction. Paras Foods and Apple
Grading Plant at Quetta are other CFC’s under PHDEC.

PHDEC has entered into a joint venture with a private sector partner for processing of Fresh Fruits
& Vegetables Processing at Karachi.

PHDEC, on directive of Taskforce on NTCIP / Ministry of Commerce, has been working on a mega
project comprising common facility centres for horti products.
2
Requirement of Processing Units
(000)Tones
Commodity
Producti
on
(200910)
Marketable
Volume @
75% of
Production
Export
(200910)
Export
Potential
Existing
No. of
Units
Total
Annual
Existing
Capacity¹
Gap V/S
available
capacity
Citrus
2395
1796
361
400
110
495
-95
Mango
1875
1406
85
200
9#
27
173
23 ²
575
431
(6+115
)
(25+125)
19³
10³
15
15 ³
3508
2631
86
120
0
0
100
17 ⁴
Dates (fresh
& dried)
Seasonal
Vegetables
¹ Based at full operation,
No. of
Units
Required
² Based on 5-10 tons/hr capacity,
³ For fresh Dates based on 1 ton/hr capacity, ⁴ Based on 3 ton/hr capacity
# Including projects being supported by FIRMS-USAID
3
Requirement of Cold Stores
(000Tons)
Clusters 1
Productio
n
(2009-10)
Marketabl
e Volume
@ 80% of
Productio
n
Storage
Requireme
nt ²
Kinnow
2395
1796
Mango
1875
Apple
Stores Available In
Pakistan
Gap/Requirements 4
Capacity
³
No. of
Units1
Gap in
Capacity
No. of Units
⁴
539
194
119
345
115
1406
70
25
15
46
23
459
344
138
34
21
103
34
Other Fruits
2451
1838
551
172
105
380
190
Potato
2540
1905
762
323
197
439
146
Other Vegetables
5320
3990
798
169
103
629
315
15040
11280
2858
916
560
1942
708
Total
1 Data on commodity wise storage is not available , these are only
estimates based on crop cluster of the relevant areas and judgement.
²
This has been estimated on the basis of shelf/storage life of the
relevant product.
³ Available storage capacity has been worked on basis of average capacity of 1,637 tons/unit.
⁴ Capacity of the required storages has been assumed at 1000 tons/unit. However, storage period has been taken
on the basis of storage/shelf life of various products. ⁴ This has been estimated on the basis of shelf/storage life of
the relevant product.
4
Cool Chain System (CCS) Project under
National Trade Corridor Improvement Program
PHDEC, with the help of IPDF, has developed a project comprising 70 units to be
established as common facility centers on the basis of Public Private Partnership.
The brief detail are given here under:
Project Scope
a)
39 Modern pack-houses
(including cold storage facilities at 31 locations)
Products: Kinnow, Mango, Apple, Dates, Banana, Apricot, Peach, Plum, Grapes,
Potato, Onions, Tomato and Seasonal vegetables
b)
23 Cold storages
(CA & VS Storages at 23 locations 13-production areas, 7-airports, 3- seaports)
c)
2 Reefers/container yards (with parking capacity for 200 containers & 50 CA
containers each at Lahore & Karachi)
d)
6 Testing labs at different locations (production areas)
5
Cool Chain System (CCS) Project under
National Trade Corridor Improvement Program
Project Implementation Strategy
Project will be implemented in two components
i) Punjab & Khyber Pakhtunkhwa
ii) Sindh & Balochistan
Project will be implemented under Public Private
Partnership
The private sector will make the investment
Government will provide incentives
Testing labs: will be established in public sector
Project Cost
(Rs in million)
Description
Total Project Cost
Punjab – NWFP
7,513
Bal.– Sindh
4,993
Total
12,506
6
Cool Chain System (CCS) Project under
National Trade Corridor Improvement Program
Financial Indicators
Punjab – KPK
Balochistan – Sindh
FCFF
FCFE
FCFF
FCFE
NPV (Rs. in million)
4,842
2,928
4,385
2,791
IRR (%)
28%
38%
31%
44%
Payback( years)
6.4
5.6
5.9
4.9
DSCR (times)
0.6 – 18.6
0.8 – 23.4
LLCR (times)
3.0
3.39
PLCR (times)
8.08
9.57
Benefit to Cost Ratio
2.41
2.43
Project Status
 Under approval process (for concessions/incentives ) after which EOI
would be invited from potential investors.
 PHDEC will be Coordinating/Monitory body on behalf of Govt.
 IPDF is assisting in project formulation/marketing and implementation
7
PARAS Foods
Project Scope
Project Cost
This is a joint venture of PHDEC & PAEC (Pakistan Atomic Energy
Commission). The main objective of the project is to act as a common
facility centre for irradiation of horticulture products (fruits, vegetables,
spices & herbs etc) Its major purpose is to achieve dis- infestations,
extend shelf life of produce and meet quarantine (SPS) requirements of
the importing countries. It is a joint venture of PHDEC and PAEC.
Project cost (approved)
Date of Approval
EDF Funds
Date of Funds Release
Date of Commencement
Cost Incurred
Rs. 78.127 Million.
22-09-2004
Rs. 60.080 Million.
08 -04 - 2005
June 2006
Rs. 95.640 Million (approx.)
Cost beyond EDF funds has been financed
by equity/payables to PAEC/ATCOP
Project Status
Project has been in operation since June 2009. Recently, its marketing
activities have been out- sourced to a private sector party to increase
its capacity utilization / revenue generation.
8
PARAS Foods
9
Apple Grading Plant - Quetta
Project Scope
Renovation & Up-gradation of old apple grading plant. The
project is to be run as common facility centre.
Location
Agri Research Institute, Sariab Road,Quetta.
Project Cost
Rs. 20.35 million


Rs. 6.35 million – Machinery (Funded by EDF)
Rs. 15.0 million – Land & Building (Provided by Agriculture Dept. Balochistan)
EDF Funds
Rs. 6.35 million
Project Status
Operational since Aug 2008 while Cold store is under construction
Despite efforts to motivate private sector, the project has not started
commercial operation mainly due to poor law & order situation in the
area and non availability of working capital. To attract private
sector partners, advertisement will be placed in newspapers shortly.
10
Apple Grading Plant - Quetta
11
Common Facility Centre for Fresh Fruits &
Vegetables Processing at Karachi
Project Scope
This is a joint venture between Govt. of Pakistan ((through PHDEC) and Durrani
Associates . The management of the plant would be with private partner. The
scope of processing activities includes sorting washing/cleaning, hot water
treatment, cold treatment, grading, packing, and storage of various products,
mainly for following products:
Hot water treatment: Mango, Grapefruits, Capsicum,Tomato & Chilies etc. This
would result in commercialization of sea shipments of mango/other at larger scale.
Chilling treatment: Kinnow, cabbage, cauliflower, Capsicum, Green chilies,
Cucumbers etc
Location
Plant Capacity
:
:
Project Cost
Gadap Road, Karachi (Sindh
15 tons/hr; 150 working days/annum
Rs. 177.505 million
Financing Plan
Durrani Associates
PHDEC (EDF)
Financial Indicators
Rs. 88.754
Rs. 88.753
IFRR
Pay Back
Break-even
Net Present Value
:
:
:
:
47.47%
3.1 Years
49.32% (1st Year)
Rs. 363.253 million
12
Dates Processing Plant at Khairpur
Project Scope
Fresh dates processing facility comprising of Storage, Fumigation,
Cleaning & Washing, Drying, and Sorting & Grading & Packing. The
project will be implemented under PPP mode. In this connection, an MOU
signed with Sindh Board of Investment & Agriculture Department, Sindh.
Processing
Capacity
The plant will have a processing capacity of 1.5 tons per hour or
3,375 tons per year (based on two shifts and 5 months
operation) at 100% capacity level.
Project Cost
Revised Total Project Cost
Revised Project Cost Excl Land
Funds Available
Shortfall/Funds Requirements
Financial
Indicators
IFRR
NPV (at 15 %)
Average rate of return
Pay back period
Breakeven capacity
Project Status
PHDEC & SBI jointly are working on this project
=
=
=
=
Rs. 91.375 million
Rs. 88.075 million
Rs. 20.000 million
Rs. 71.375 million
33.7 %
77.493
27.99
2.87 years
28%
13
Support / Suggestions for Hoticulture

Support for Common Facility Centers for processing of fresh fruits & vegetables

Approval of Cool Chain System Project by CDWP/ECNEC on fast track basis.

Extension of mark-up support facility (through Export Development Fund) to
Pack Houses & Value Addition units.

Resolution for shortage of Controlled Atmosphere (CA) and Reefer containers
for sea shipments.

Resolution for inadequate air cargo space.

Special air freight rates for export of mangoes.

Financial support to farmers/exporters

Loan

Guarantees

Revolving credit (seasonal)
14
www.phdeb.org.pk
15
PROPOSED SITES FOR PACK HOUSES WITH COLD STORAGE
FACILITIES
Processing
Capacity (MT
Commodity*
Pack House /Cold
Store
Cold Storage
Capacity (MT)
City/Area
Province
Kinnow
1 PH & 1 CS
(20 t / h)
5000 (10 X 500)
Bhalwal
Punjab
Kinnow
1 PH & 1 CS
(5 t/h)
3000 (6 X 500)
T.T. Singh**
Punjab
Kinnow
1 PH & 1 CS
(5 t/h)
3000 (6 X 500)
Mandi Bhaudin**
Punjab
Mango
3 PH & 3 CS
(8-10 t/h)
1000 (4X250)
Multan
Punjab
Mango
2 PH & 2 CS
(8-10 t/h)
1000 (4X250)
R.Y.Khan
Punjab
Mango
2 PH & 2 CS
(8-10 t/h)
1000 (4X250)
Muzafar Garh
Punjab
Mango
1 PH & 1 CS
(8-10 t/h)
1000 (4 X 250)
MirpurKhas
Sind
Mango, Citrus & Vegetable
1 PH & 1 CS
(5 t/h)
2000 (4 X 500)
Khanewal
Punjab
Mango + Banana Ripening
Facility
1 PH & 1 CS
1500 (3 X 500)
Hyderabad
Apple
1 PH & 1 CAS
(5 t/h)
3000 (6 X 500)
Peshawar
NWFP
Apple & Grapes
1 PH & 1 CAS
(5 t/h)
2000 (4 X 500)
Quetta
Balochistan
Peach, Apple
1 PH & 1 CAS
(10-12 t/h)
4000 (8 X 500)
Swat
NWFP
Apple, Apricot
1 PH & 1 CAS
(10-12 t/h)
1500 (3 X 500)
Kalat
Balochistan
Apple, Apricot
1 PH & 1 CAS
(10-12 t/h)
2000 (4 X 500)
Kila Saifullah
Balochistan
(8-10 t/h)
Sind
16
PROPOSED SITES FOR PACK HOUSES WITH COLD STORE
FACILITIES
Commodity*
Pack House /Cold
Store
Apple, Apricot, Peach &
Grapes
2 PH & 2 CAS
Apple & Grapes
1 PH & 1 CAS
Apple, Apricot
Processing
Capacity
(MT
(10-12 t/h)
Cold Storage
Capacity
(MT)
City/Area
Province
Balochistan
2000 (4 X 500)
Pishin
(5 t/h)
2000 (4 X 500)
Mastung
Balochistan
1 PH & 1 CAS
(5 t/h)
1000 (4 X 250)
Loralai
Balochistan
Apple, Apricot
1 PH & 1 CAS
(10-12 t/h)
2000 (4 X 500)
Zhob
Balochistan
Dates
1 PH & 1 CS
(4 t/h)
Panjgur
Balochistan
Potato
2 PH & 2 CS
(10 t/h)
2000 (4 X 500)
Okara
Punjab
Potato
2 PH & 2 CS
(10 t/h)
2000 (4 X 500)
Sahiwal
Punjab
Potato
1 PH & 1 CS
(10 t/h)
2000 (4 X 500)
Pak Pattan
Punjab
Potato
1 PH & 1 CS
(10 t/h)
1000 (4 X 250)
Sialkot
Punjab
Potato
1 PH & 1 CS
(10 t/h)
1000 (4 X 250)
Kasur
Punjab
Onion
I PH & 1 VS
(10 t/h)
1000
Hyderabad
Sind
Onion
1 PH & 1 VS
(10 t/h)
1000
Sanghar
Sind
Onion
I PH & 1 VS
(10 t/h)
1000
Chaghi
Balochistan
Onion
1 PH & 1 VS
(10 t/h)
1000
Kharan
Balochistan
Vegetable
1 PH & 1 CS
(5 t/h)
2000 (4 X 500)
Sheikhupura**
Punjab
Vegetable
1 PH & 1 CS
(5 t/h)
2000 (4 X 500)
Gujranwala**
Punjab
Vegetable
1 PH & 1 CS
(5 t/h)
2000 (4 X 500)
Faislabad**
Punjab
Vegetable
1 PH & 1 CS
(5 t/h) (5 t/h)
2000 (4 X 500)
D.I. Khan**
NWFP
Total
39
5000 (10X500)
69,000
31
17
Back
PROPOSED SITES FOR COLD STORAGES
Commodity
Requirement
(Number)
Capacity (Tonnes)
Location
Province
Kinnow
1 CS
3000 (6 X 500)
Sargodha
(Production Area)
Punjab
Kinnow
1 CS
5000 (10 X 500)
Kot Momin
Punjab
Kinnow, Apple
Potato
1 CS
5000 (10 X 500)
Islamabad
(Sector I-9)
Punjab
Fruits and vegetables
1 CS
1500 (3 X 500)
Sargodha
(F & V Market)
Punjab
Apple
1 CS
2000 (4 X 500)
Waziristan
NWFP
1 CAS
5000 (10 X 500)
Quetta
Balochistan
Peach, Apple Potato
1 CS
5000 (10 X 500)
Peshawar
NWFP
Peach & Apple
1 CS
2000 (4 X 500)
Mardan
NWFP
Dates & other Fruits
1 CS
5000 (10 X 500)
Turbat
Balochistan
Dates
1 CS
5000 (10 X 500)
Khairpur
Sindh
Dates & other Fruits
1 CS
3000 (6 X 500)
Sukkur
Sindh
Fruits and vegetables
1 CS
1000 (4 x 250)
Chitral
NWFP
Fruits and vegetables
1 CS
1000
Chaman
Balochistan
Apple and other fruits and
vegetables
Total
13
(4 X 250)
43,500
18
Back
PROPOSED COLD STORAGES AT AIRPORTS & SEAPORTS
Air Ports
Capacity Cold Store +
Freezer Unit (Tons)
Products
Remarks
Karachi
500 (5 x 100)
Lahore
300 (3 x 100)
Extendable to 500 tons
Faisalabad
200 (2 x 100)
Extendable to 300 tons
Multan
200 (2 x 100)
Extendable to 300 tons
Quetta
200 (2 x 100)
Extendable to 300 tons
Peshawar
200 (2 x 100)
Extendable to 300 tons
Islamabad
200 (2 x 100)
Extendable to 300 tons
Total
=
7
----
1,800
Sea Ports
Bin Qasim
Karachi Port
5000 (10 x 500)
KPT Karachi Port
5000 (10 x 500)
Gawadar Port*
5000 (10 x 500)
Total
15,000
= 3
---Fruits and vegetables, Meat, frozen
food and pharma products
----
----
19
Postharvest Losses in Apples ( Swat)
20
Postharvest Losses in Peaches ( Swat)
21
Post Harvest Losses
Crops
Post Harvest Losses (%)
Fruits
Citrus
15
Mango
25
Dates
35
Apple
14
Pear
15
Peach
15
Plum
25
Apricot
25
Other fruits
24.4
Vegetables
Potato
15.2
Onion
20
Tomato
40
Other vegetables
30.5
Ibrahim & Anwar, 2004, Horticulture Education, Extension & Training System in Pakistan
22
Operational Divisions
A. Supply Chain Management
i) Facilitation & Support on international compliances for
food quality & safety
ii) Capacity building of stakeholders through trainings &
technical assistance
iii) Product Development & Certifications
B. Marketing
i) Market Intelligence & Information Dissemination
ii) Product & Market Diversification
iii) Linkages Development & Trade Delegations
iv) Trade Dispute Settlement
C. Business Development
i) Supply Chain Infrastructure
ii) Value Addition
23
23