Kinnow a specialty of Pakistan
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 The Indonesian government has now withdrawn the quota system.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.
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.