Horticulture exports

Another of our exports that has been taking a beating lately is in horticulture; for the eight months ended FY17, fruit and vegetable exports declined by a whopping 23 percent in volume year-on-year, but fortunately strong pricing meant that the dollars earned were just 11 percent less.

If the FPCCI Standing Committee on Fruit and Vegetable’s statement is to be believed, horticulture exports can easily bring in a billion dollars annually. However, the graph illustrates how fruit and vegetable exports have barely ever touched the $700 million mark, while seeing a huge decline in the current year as well. There are a couple of reasons for this.

First and foremost, Pakistan struggles in horticulture exports due its inability to meet SPS (syto and phytosanitary) standards. This is where the Department of Plant Protection, as well as the Extension Departments of provincial agricultural departments, plays an integral role (See yesterday’s column, “SPS & exports: USDA’s training). To bring our locally produced fruits and vegetables up to international standard and SPS compliance would greatly increase our international footprint.

Secondly, according to a statement by the FPCCI Standing Committee on Fruit and Vegetable exports, a major challenge for fruit exporters – specifically mango, a key horticulture export – is the high cost of the hot water treatment process, which is integral for the elimination of fruit flies and pests. In addition, Pakistan has sustained significant financial losses over the ongoing year due to the devaluation of the Euro and Sterling caused by Brexit. And finally, air freight charges have been increasing as well, making local horticulture exports uncompetitive with regional competitors like India.

Amid all this negativity, there are two pieces of good news. Firstly, a horticulture export policy is currently in the works. Secondly, in the absence of facilities here in Pakistan, one of our most sought-after markets has somewhat become accessible; the US – the world’s largest importer of mangoes with over 40 percent share in global imports – has itself installed mango treatment plants in three states, opening up some avenues for our mango exporters.