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BR Research

Pugnacious potential of Pakistani dates

Published Updated

chart-datesWhat will be the first thing most Pakistanis will eat at sunset today after a 15-hour-long fast? No prizes for guessing - dates. Not only is the sweeter-than-sweet fruit a preferred fast-breaker for many in Pakistan, it is also a great potential source of export revenues for the country. In FY09, 0.6 million tons of dates were produced, according to McKenzie Institute Research with BR Research, while industry sources claim that the country exports an average of around $35 million worth of dates annually. According to Ahmad Jawad, Chief Executive Officer of Harvest Trading Pakistan, "Date exports in FY11 increased by roughly 10 percent relative to FY10. Potential for date exports is as much as $200-240 million per annum, which is very high in contrast to what is fetched from the export of dates today." While demand for the fruit is high in the US, UK, Denmark, Qatar, and even Saudi Arabia, the biggest market for Pakistani dates is literally next door - India. Jawad says out of the total value of the export of dates, over 80 percent is accounted for by India. The countrys proximity to Pakistan as well as low certification requirements compared to other importing countries, particularly in the West, make India a preferred market for exporters of Pakistani dates. While around 20 percent of the total production of dates is exported, the remainder is not consumed locally alone. Unfortunately, a large portion of dates also fall prey to post-harvest losses, just like many other palatable fruits of the country. Industry sources place this figure at about 20-25 percent of the total production, which means a major chunk of the production is literally wasted. Pack houses - buildings used for grading, cleaning and packing farm produce - need to be built as well as adequate storage facilities need to be provided at all date producing areas. At the same time, trade of the scrumptious fruit needs to be encouraged via proper branding and trade fairs, which will help expand the fruits global market. Similarly, agriculture practices also need to be improved to enhance the acreage yield of the fruit. While Pakistan earns $370 per ton from dried and $660 from fresh dates, the average world trade in dates is about $870 per ton, indicating that there is a huge gap that can be filled to fully exploit the potential of these exports. Quality enhancement and credible quality certification, along with good branding and effective promotion of the fruit can help fill these gaps.

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