Northern Areas of Pakistan have been blessed with many natural resources. One of the benefits of the remoteness of the Northern Areas is that, it has lower pest and disease pressure. This coupled with the dry climatic conditions and fertile land means that, the area has an advantage in producing different varieties of fruits and vegetables.
Apart from being a rich source of carbohydrates, proteins, minerals and vitamins, fruit production can contribute substantially to the cash income of small farmers. In fact, production of high value fruit and vegetable crops is the major source of living for the communities of the area.
However, due to poor infrastructure and lack of links to the down country markets, the farmers are unable to gain full advantage of the natural potential for commercial production of fruits.
The produce is spoiled before it can reach the market, which means most of the produce has to be sold in the local market, which cannot absorb the production. Thus farmers are forced to throw away their produce rather than sell it. Lack of markets means fruit production takes place on small pieces of land at the household level. As a result, relatively small quantities of fruit & vegetables are produced throughout the area.
THE PRODUCT:
One of the major products produced are apricots. Apricot trees are found everywhere, especially on marginal land or land, which cannot sustain cash crops. Small communities in villages are producing apricots in large quantities, but cannot get a good price for their produce, therefore are unable to take advantage of their natural advantages and thus can't escape the poverty trap.
THE OPPORTUNITY:
The farmers of Northern Areas have been producing fruits, especially dried fruits for centuries. The natural conditions are such that nearly every household plants and trees of different types scattered all over the irrigated fields. According to an independent survey done in 1998, estimated production of dry apricots is about 8,000 MT and apricot kernels 600 MT.
However, fresh apricots have a limited shelf life and are easily spoiled. They need to be dried to increase their shelf life, reduce losses and improve their access to market. The traditional method of drying apricots has been to spread them out on any convenient flat dry space (rocks, roofs, rood culverts etc) in the open air and let the sun dry them. This method results in highly contaminated dried apricots.
The existing purchase price of traditionally dried apricots is approx Rs 40/- per kg. However, due to the traditional drying techniques, these apricots are usually contaminated and are not readily sellable in the market.
According to buyers, if hygienic & contamination free apricots were available, they would buy the produce for up to Rs 100/- per kg at the farm gate. This is a 250% increase in revenues and this revenue stream would be stable over the long run.
THE PROJECT:
Small Farmers Co-operatives in different rural areas identified an appropriate technology based Drying Tunnel, which would cost aprox Rs 300,000/- per tunnel. However, the Groups did not have the financial resources to set up the project on its own and needed support to convert the idea in to reality.
The drying tunnel (20 by 60 feet) would be made out of iron, glass plastic and parachute material. It would use two exhaust fans to re-circulate air inside the tunnel. Inside the tunnel, there would be 6 foot high iron racks, with space for 250 wooden trays. The trays have apricots placed in them, after being sorted, graded, pitted and sulphured. Then the apricots are lift in the tunnel for up to 5 days for drying rather than the 8 days spent in the open.
THE BENEFITS OF A TUNNEL ARE AS FOLLOWS:
a. Reduce the wastage of fresh fruits, which happens due to rain & moisture.
b. Better drying due to optimum temperature.
c. Reduction of incidence of contaminants.
d. Sulphuring adds taste to the produce.
Role of ASF:
To meet their need for funding, the groups approached "Agribusiness Support Fund" for funding through AKRSP. ASF was requested to provide grant funding ranging from 25% to 40% of the project cost. The rest of the projects would be financed by the groups themselves.
ASF was created under the auspices of the Rs 4.1 billion ADDP (Agribusiness Development & Diversification Project of MINFAL) with support from ADB. The aim of ASF is developing the agribusiness sector in Pakistan and thereby supporting economic growth & employment generation. ASF has been tasked with promoting the private sector agribusiness enterprises by providing matching grants for purchase of "Business Development Services" and also providing capacity building support to BDS Providers.
ASF Appraisal Panel approved grants of a maximum amount of Rs 120,000/- per group and supported around 15 groups each comprising of a minimum of 10 farmers in setting up such tunnels.
LONG TERM IMPACT:
The tunnels were set up and have had an impact, leading to a 250% increase in revenues. I met a group, which has started exporting their dried apricots, while earlier they were throwing them away.
However, there was an issue, which troubled me. I asked the groups that, if so many tunnels were set up, wouldn't this drive down the prices received for apricots, as supply of good quality apricots will meet or even exceed demand.
They replied that, they plan to move further up the value chain, by setting up enterprises, which will produce value added apricots based products like oil, chocolates, jellies, and juices etc.
When you work with people like these, you realise that, you are lucky to be working in the development field. These people suffer from all the disadvantages, yet they have a broader vision, an ability to spot opportunity, a willingness to take a chance and a determination to succeed, which makes impossible look merely difficult.
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