Apple production likely to fall by 35 percent this year

Apple production is likely to fall by 35 percent this year from half a million tons of last year to about 0.325 million tons. "The situation is too bad, as apple trees are being cut down in Balochistan because growers say they are not getting good rates," CEO of Harvest Trading, Ahmad Jawad, said.
He told Business Recorder that Pakistan could get proper share in the around five million tons per year world apple export market provided it takes measures for the development of the apple industry on modern lines. Balochistan has 65 percent share in the country's apple production while Khyber Pakhtunkahwa has 25 percent share. Pakistan is the 10th largest producer of apples in the world and produces 13,35,000 apples per year. "On the production of two tons apples on every acre, on the total land under apple trees, we could earn Rs 30 billion," he said.
Fruit production is not only a profitable enterprise for the growers but is also a good source of foreign exchange earnings for the country. A rich production of fruits could pave the way for installation of processing industries and ultimately lead to increased employment and promotion of exports of fruits and its products.
But there are several hurdles in the efficient functioning of markets, particularly agricultural commodity markets, such as lack of infrastructure, poor access to market information, restriction on movement of goods between regions and monopoly over distribution system and lack of regulatory framework for fixing prices, he said. Jawad said it is not realised that rectification of market imperfections smoothens the way to attain market's efficiency which, in turn, facilitate the attainment of agricultural development and equal distribution of income. Market infrastructure, transportation, communication, credit and storage facilitate smooth functioning of markets, he added.
Much emphasis is given to area and production of apple while relatively little is known about how price transmission takes place on the domestic apple markets. Such information is important for apple producers and other apple value chain role players since it affects their marketing decisions (buying and selling), which in turn affects decisions related to logistical matters and eventually profits realised.
Apple is 85 percent source of vitamins A, B, C, iron and potassium for the body. It is apt to mention that "an apple a day keeps the doctor away", and keeps old age away as well. Apple is a highly nutritive fruit containing essential food elements such as sugar 11 percent, fat 0.4 percent, protein 0.3 percent, carbohydrates 14.9 percent and vitamins C, A & B in a balanced form. In America and Europe, it is considered as 'a bottle of vitamins'. It ranks third in consumption, after citrus and banana, and is almost available throughout the year.
Harvest Trading CEO said that the reasons, among others, for low yield of apple are severe drought in some years, post-harvest losses, malfunctioning of markets, lack of information on the part of farmers, and absence of incentive to producers. Apples produced in the country are used for fresh consumption, with only small quantities used for processing into its products such as apple juice, jelly or jam and/or other products.
The world apple export market is around 5 million tons per year with France, Chile, Belgium, USA and Netherlands sharing major chunk.
Jawad said that Iran and China are the regional competitors of Pakistan with regard to apple export. However, apples produced in the country have tremendous potential due to good colour, size, quality, keeping quality, juice contents, crunchiness and aroma. Immediate measures are, therefore, required to tap this potential and penetrate the world market. Pakistan exports a negligible quantity of apples despite having potential of penetrating into the world apple market of 5 million tons, Jawad said, adding that proper facility of enhancing cosmetic look of apples after washing and waxing and enhancing their shelf life would boost their exports from Balochistan.
Jawad suggested that the governments of Balochistan and Khyber Pakhtunkhwa should call a conference to devise a comprehensive strategy for achieving growth in apple exports. Pakistan's share in the world apple market is almost negligible, as compared to its significant share in export of mango and kinnow. The government had established Quetta Apple Grading Plant through Pakistan Horticulture Development and Export Company (PHDEC) in August 2008. But this plant is now closed, and PHDEC is looking again for any investor who may run this plant.
Ahmad Jawad has urged the government to promote information and develop communication within markets. To accomplish better integrated markets, infrastructure facilities should be provided by the government to the targeted markets. It should also facilitate the environment that encourages limited role of middlemen.