Kin­now a spe­cialty of Pak­istan

The Financial Daily - - NATIONAL -

An ex­cel­lent crop of kin­now in Pak­istan and low pro­duc­tion by ma­jor pro­duc­ers like Morocco con­trib­uted to higher ex­ports from Pak­istan to the Rus­sian mar­ket.

Wa­heed, who is also vice pres­i­dent of the Fed­er­a­tion of Pak­istan Cham­bers of Com­merce and In­dus­try (FPCCI), said the FPCCI played an im­por­tant role in en­abling the PFVA to take ex­ports to the record peak by raising the is­sue of un­re­al­is­tic high val­u­a­tion of Pak­istani kin­now in the Rus­sian mar­ket. Now, the Rus­sians are will­ing to re­duce the val­u­a­tion.

Mean­while, ef­forts were also made by the PFVA against the quota im­posed by the In­done­sian gov­ern­ment on the im­port of Pak­istani kin­now. The In­done­sian gov­ern­ment has now with­drawn the quota sys­tem.

How­ever, for the last seven con­sec­u­tive years, the ex­port of kin­now to the Ira­nian mar­ket, hav­ing po­ten­tial for 60,000 to 80,000 ton, has not re­sumed.

Iran is an in­ter­na­tional mar­ket with a ca­pac­ity to im­port 80,000 ton to 100,000 ton of Pak­istani citrus but they have not im­ported this citrus from Pak­istan for sev­eral years, Wa­heed Ahmed said.

Giv­ing de­tails he fur­ther said though Rus­sia was a big mar­ket of Pak­istani kin­now, but Pak­istan was fac­ing a cut throat com­pe­ti­tion from Morocco and Turkey in that mar­ket.

Af­ter curbs on Ira­nian fruit im­port, Pak­istani ex­porters fear re­tal­i­a­tion

Kin­now ex­ports could also re­ceive a boost as the coun­try is ex­pected to get an op­por­tu­nity to ex­port fruits and veg­eta­bles to a huge mar­ket of China un­der the China-Pak­istan Eco­nomic Cor­ri­dor (CPEC), which pro­vides easy ac­cess to China via road. Pak­istan can ex­port 50,000 to 80,000 ton of kin­now to China in the next three years.

How­ever, ac­cord­ing to Wa­heed, Pak­istan's kin­now trees have al­ready com­pleted their life­cy­cle and hence lost re­sis­tance to at­tack­ing dis­eases. Thus, kin­now or­chards hav­ing such trees are suf­fer­ing from var­i­ous dis­eases.Since new or­chards are not be­ing planted, it is feared that kin­now pro­duc­tion may has losses.

Kin­now ex­ports were worth more than $222 mil­lion, Wa­heed Ahmed, pa­tron-inchief of the Pak­istan Fruit and Veg­etable Ex­porters, Im­porters and Mer­chants As­so­ci­a­tion (PFVA), said.

He said Pak­istan's an­nual ex­port sea­son for kin­now starts on Dec. 1, with tar­gets set in ac­cor­dance with in­ter­na­tional de­mand.

He said Pak­istan pro­duces 2.4 mil­lion met­ric ton of citrus fruits in which kin­now holds a 70 to 80 per­cent share of 1.7 to 1.9 mil­lion met­ric ton. Pun­jab pro­duces more than 60 per­cent of citrus and 98 per­cent of the to­tal kin­now pro­duc­tion, mainly from Sar­godha."

Pak­istani kin­now is known for its taste and aroma, and de­mand has steadily in­creased in its two main im­porters, In­done­sia and Rus­sia.

Ex­porters faced with the is­sue of un­re­al­is­tic high val­u­a­tion of Pak­istani kin­now in the Rus­sian mar­ket. How­ever, the as­so­ci­a­tion per­suaded Rus­sian au­thor­i­ties to re­duce the val­u­a­tion, Ahmed said.

The PFVA also waged a suc­cess­ful cam­paign that led to In­done­sia aban­don­ing a quota sys­tem on Pak­istani kin­now, he said.

Kin­now con­tin­ues to face is­sues of high val­u­a­tion from the Rus­sian au­thor­i­ties, lead­ing to higher con­sumer costs.

The ac­tual value of Pak­istani kin­now is about $6 t-$7 per 10 kilo­grams, while Rus­sian au­thor­i­ties as­sess it at $9.50 per 10 kilo­grams. Afoter Fe­bru­ary, how­ever, the val­u­a­tion was re­vised up­ward to $10.50 per 10 kilo­grams, mak­ing it even more dif­fi­cult to com­pete, he said.

How­ever, Pak­istan's bumper crop, cou­pled with low pro­duc­tion in Morocco, a ma­jor com­peti­tor, helped boost ex­ports to the Rus­sian mar­ket.

Pak­istan hopes to lift its ex­port of fruit and veg­eta­bles to China with the help of Chi­naPak­istan eco­nomic cor­ri­dor, with lo­cal ex­porters look­ing to im­prove kin­now qual­ity to take full ad­van­tage of the huge Chi­nese mar­ket.

If co­or­di­nated ef­forts are made to im­prove the qual­ity of kin­now, in the next three years Pak­istan will be able to ex­port 50,000 to 80,000 met­ric ton to China, said Wa­heed Ahmed.

Ex­porters say that reach­ing the set tar­get for kin­now ex­ports next year may also be dif­fi­cult if Turkey and Morocco, Pak­istan's big­gest com­peti­tors in terms of qual­ity and price.

More­over, cli­mate change and lack of re­search fa­cil­i­ties in the coun­try are tak­ing a toll on kin­now pro­duc­tion. Pak­istan's kin­now trees have al­ready com­pleted their life cy­cle and are more vul­ner­a­ble to dis­ease. New or­chards are not be­ing planted, lead­ing to fears that the ex­port in­dus­try could sus­tain huge losses in the near fu­ture.

In the present sea­son, Pak­istan was re­stricted to ex­port in the months of Fe­bru­ary and March only which has now been dou­bled from Jan­uary to April. Ac­cord­ing to of­fi­cial sources in the min­istry of com­merce of­fi­cial no­ti­fi­ca­tion to this ef­fect has been made by the In­done­sian gov­ern­ment.

pop­u­lar de­mand of the Kin­now ex­porters has been met by en­hanc­ing ac­cess to In­done­sian mar­ket. The kin­now, a sub form of Or­anges is smaller in size but tastes rel­a­tively sim­i­lar. Kin­now is a cross be­tween the `King' and `Wil­low-leaf' species of citrus fruits, cre­ated af­ter suc­cess­ful ex­per­i­men­ta­tion at the Citrus Re­search Cen­tre, Univer­sity of Cal­i­for­nia, USA in 1951.

Both of these par­ent breeds have In­doChina ori­gins. The soil and cli­matic con­di­tions in Pak­istan have given the Kin­now a unique fla­vor which dis­tin­guishes it from other com­pa­ra­ble man­darins grown in the world. Kin­now is one of the best va­ri­eties of fresh Pri­mar­ily Kin­now is in close re­la­tion with tan­ger­ine, sim­i­lar in taste. Ideal con­di­tions for grow­ing kin­now in­clude abun­dance of wa­ter, rich ni­tro­gen con­tent in the soil and rel­a­tively cool weather.

Win­ter in the plains of Pun­jab prov­ince pro­vides an ex­cel­lent at­mos­phere for this fruit and the re­sult­ing fruit is sweet and has a very dis­tinct taste. At this point Sar­godha is the main citrus pro­duc­ing dis­trict, with about 23 per cent of Pak­istan's to­tal citrus plant­ings, pro­duc­ing around 650,000 met­ric ton of fruit each year. Toba Tek Singh ranks sec­ond and Sahi­wal third. As com­pared to the pro­cess­ing of other fresh fruits pro­cess­ing of Kin­nows ap­pears to be very well de­vel­oped.

There are around 250 kin­now pro­cess­ing en­ter­prises in Sar­godha. 140 are listed with PHDEC. Some 37 pro­cess­ing en­ter­prises have some sort of cer­ti­fi­ca­tions in­clud­ing Global GAP, HACCP and BRC and to en­hance ex­ports the pro­ces­sors and ex­porters are im­prov­ing their pro­cess­ing plants to get more cer­ti­fi­ca­tions par­tic­u­larly BRC to en­ter in Euro­pean Union (EU) mar­ket. The in­stalled pro­cess­ing plants defini­tively re­quire improvements for qual­ity pro­cess­ing. Pak­istan is the tenth largest pro­ducer of citrus in the world. Pak­istan is also the largest pro­ducer of Citrus Retic­ula' va­ri­ety (Kin­now), this unique va­ri­ety of citrus is indige­nous to this part of the world. Ac­cord­ing to an es­ti­mate ap­prox­i­mately 95 per­cent of the to­tal Ki­now pro­duced all over the world is grown in Pak­istan. The main Kin­now grow­ing dis­trict is Sar­gogha.

Traders cut kin­now ex­port tar­get on the news of low yield and qual­ity

Ac­cord­ing to de­tails, traders have set a kin­now ex­port tar­get for the cur­rent year at 325,000 ton, which was 50,000 tons less as com­pared to last year, ow­ing to low com­pet­i­tive­ness, mount­ing cost of pro­duc­tion, and lack of qual­ity fruit, a state­ment said.

Due to high cost of citrus fruit pro­duc­tion and a stiff com­pe­ti­tion from coun­tries like Turkey, Morocco, and other big pro­duc­ers, Pak­istan is strug­gling to claim its fair share in the global mar­kets, Wa­heed Ahmed, said in a state­ment.

Ahmed said the kin­now pro­duc­tion was ex­pected to be around 2.0 mil­lion ton; how­ever due to lim­ited avail­abil­ity of good ex­port qual­ity fruit, the tar­get had been cur­tailed for this year.

A record ex­port vol­ume of 375,000 tons was at­tained last year, fetch­ing a for­eign ex­change of $200 mil­lion, while with the cur­rent ex­port vol­ume of 325,000 ton, the coun­try is ex­pected to earn around $180 mil­lion.

The PFVA of­fi­cial said de­val­u­a­tion of ru­pee had lost its fa­vor­able im­pact due to up­ward re­vi­sion of freight charges by the ship­ping com­pa­nies, rise in cost of pack­ing ma­te­rial, and sub­stan­tial in­crease in lo­cal trans­porta­tion charges.

Out­side Pak­istan the fruit is known as Pak­istani Orange

Kin­now is only grown in Pak­istan and its aroma and taste has ob­tained a good rep­u­ta­tion and ac­cept­abil­ity in the in­ter­na­tional mar­kets. But the prod­uct could not tap the proper global mar­ket share due to num­ber of rea­sons, like il­lit­er­ate grow­ers failed to fetch mar­ket price be­sides wast­ing 30pc of fruit due to lack of tech­nique and knowl­edge. Steps al­ready take have by the gov­ern­ment have also failed to ad­dress the ba­sic is­sues.

Pak­istan is one of the few coun­tries of the world where fruits are grown in cool tem­per­ate:, ap­ples, plums, pears, cher­ries, warm tem­per­ate: (apri­cots, grapes, pomegranates and melon, and sub­trop­i­cal cli­mate citrus, mango, banana, dates and guava) are avail­able. Pak­istan an­nu­ally pro­duces about 12.0 mil­lion ton of fruits and veg­eta­bles. Citrus fruit is lead­ing in term of pro­duc­tion fol­lowed by mango, dates and guava. Fruit and veg­etable ex­port trade in Pak­istan amounts to US$ 167 mil­lion (2006-07), of which fruits ac­count for US$ 102.7 mil­lion (76.6per­cent), veg­eta­bles US$ 25.7 mil­lion (19.2rt per­cent) and fruit and veg­etable

Prepa­ra­tions, mostly juices US$ 5.6 mil­lion (4.2 per­cent). How­ever, their share in is slightly over one per­cent, with 2.29 mil­lion tons, Pak­istan is the 10th largest pro­ducer of Citrus in the world. Citrus is cul­ti­vated on an area of 193,212 hectares and it is in­creas­ing 5 per­cent an­nu­ally. Pak­istan is also the largest pro­ducer of Citrus Retic­ula va­ri­ety (Kin­now), this unique va­ri­ety of citrus is indige­nous to this part of the world. Ac­cord­ing to an es­ti­mate ap­prox. 95 per­cent of the to­tal Kin­now pro­duced all over the world is grown in Pak­istan. Pun­jab is the Cen­tre of pro­duc­tion and sup­ply citrus fruits of high qual­ity and grade. Area un­der dif­fer­ent va­ri­eties in­di­cates that about 86 per­cent of the citrus is cov­ered by Kin­now va­ri­ety fol­lowed by the Musambi (10 per­cent), Feu­tral (4per­cent) Blood Red (1per­cent). Kin­now is only grown in Pak­istan and To­tal world trade of citrus fruit dur­ing 2008 was US$10.2 bil­lion and share of Pak­istan in this global mar­ket re­mained less than 1pc de­spite 10th largest pro­ducer of citrus. How­ever, Pak­istan's world man­darin (Kin­now) mar­ket share is 1.46 per­cent. The to­tal ex­ports of Kin­now in terms of vol­ume were es­ti­mated at 214,765 tons while in terms of value the to­tal ex­port had fetched 52.92m (US$) in 20007-8. Pak­istan is ex­port­ing only 10pc of its to­tal pro­duc­tion.

This re­port fo­cuses on Kin­now ex­port; a brief re­view of present sta­tus and fu­ture po­ten­tial is pre­sented. Fac­tors af­fect­ing or lim­it­ing the growth are iden­ti­fied. Global trade trends have been an­a­lyzed. Ma­jor and po­ten­tial mar­kets have been dis­cussed and ex­port mea­sures have been pro­posed. Dif­fer­ent pri­mary and sec­ondary sources were con­sulted while col­lect­ing data and cross ex­am­i­na­tion method was ap­plied to en­sured ac­cu­racy. ITC mar­ket anal­y­sis tools have been used to an­a­lyze the global mar­ket for Kin­now and to iden­tify po­ten­tial mar­ket for Pak­istan.

Pro­duc­tion

Citrus fruit, man­darins, Clemen­tine and or­anges) is the most im­por­tant tree fruit crop in the world. It is con­sumed di­rect as a fruit as well as juice, ( fresh and con­cen­trates. Citrus fruits in­clude or­anges, man­darins, Kin­now, grape­fruit and le­mons, of which man­darins.

Kin­now is of sig­nif­i­cance to Pak­istan. Ki species of Citrus Fruit, suc­cess­fully ex­per­i­mented at the Citrus Re­search Cen­tre, Univer­sity of Cal­i­for­nia, USA in 1951. Both of these par­ents have Indo- China ori­gins. The soil and cli­matic con­di­tions in Pak­istan fla­vor which dis­tin­guishes have it given from other com­pa­ra­ble cul­ti­vars, man­darins,) grown in the World. World citrus pro­duc­tion in se­lected ma­jor pro­duc­ing coun­tries in mar­ket­ing year, MY, 200506 is es­ti­mated at 72.8 mil­lion met­ric tons, a slight in­crease from the 2004/ 05 level. The to­tal con­sists of 47.1 mil­lion for or­anges, 15.0 mil­lion for tan­ger­ines, 4.3 mil­lion for le­mons, 4.0 mil­lion for grape­fruit, and 2.4 mil­lion for other citrus. To­tal pro­duc­tion and con­sump­tion of citrus fruit has grown strongly since the 1980s. To­tal pro­duc­tion and con­sump­tion of citrus fruit has grown strongly since the 1980s. Cur­rent an­nual world­wide citrus pro­duc­tion is es­ti­mated at over 105 mil­lion ton, with more than half of this be­ing or­anges. Ac­cord­ing to the United Nations Con­fer­ence on Trade and De­vel­op­ment ( UNCTAD), the rise in citrus pro­duc­tion is mainly due to the in­crease in cul­ti­va­tion ar­eas, improvements in trans­porta­tion and pack­ag­ing, ris­ing in­comes and con­sumer pref­er­ence for healthy foods. This trend is pro­jected to change from 2000 to 2010 since the high pro­duc­tion lev­els have slowed the rate of new plant­ings.

The fol­low­ing fig­ure shows the dis­tri­bu­tion of pro­duc­tion of citrus fruit among dif­fer­ent coun­tries in 2006.

As our fo­cus is Kin­now so the fol­low data will an­a­lyze the global man­darin pro­duc­tion trend. The lead­ing pro­duc­ers of man­darin are shown be­low:

Above com­par­i­son shows that China is the largest pro­ducer of man­darin fol­lowed by Spain and Brazil. Pak­istan stands at 10th po­si­tion. Cur­rently, in Pak­istan citrus fruits are grown on an area of 193,212 hectares with pro­duc­tion of 2.29 mil­lion tons an­nu­ally. Citrus is di­vided into dif­fer­ent groups Sweet or­anges, Man­darin, Grape fruit, Lemon and Lime which are be­ing grown com­mer­cially.

Citrus fruit is grown in all four prov­inces of Pak­istan but Pun­jab pro­duces over 95per­cent of the

crop be­cause of its greater pop­u­la­tion, fa­vor­able grow­ing con­di­tions and ad­e­quate wa­ter.

Ac­cord­ing to the re­port of Agri­cul­ture Statis­tics of Pak­istan, Citrus cul­ti­va­tion in Pak­istan

has made great strides, par­tic­u­larly from 1960's on­ward.

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