The efforts of Small and Medium Enterprises Development Authority (SMEDA), use of modern technology and private sector investment during the span of 15 years have increased the number of processing and trading enterprises in honey cluster from only 25 businesses to 350 businesses in Khyber Pakhtunkhwa, said Impact Assessment Study on Honey Trading & Processing Cluster, Tarnab Peshawar.
The impact study prepared by Anwar Iqbal, Synergy Consultants Pvt Limited Peshawar said that total investment generated by the cluster stakeholders in the shape of new enterprises, expansion in business units, technology advancement and business diversification amounts to a sum of Rs 740 million.
The support and facilitation continuously provided over the years by SMEDA Khyber Pakhtunkhwa Office have also resulted in the creation of nearly 7000 jobs including over 1200 direct and 5000 indirect jobs as compared to direct jobs of 80 and indirect jobs of about 700 back in the year 2000. SMEDA, a premier public sector organization working for the development of SMEs in the country and provides array of services to SMEs independently and in the shape of geographically concentrated clusters. Cluster development is among the major program area uniformly in all parts of the country including Khyber Pakhtunkhwa. The authority is also working on economic uplift and growth of various business clusters in the province and has invested significant efforts and resources and in result of such efforts, these clusters has grown into well established cottage industries comprised of hundreds of enterprises, providing income generation and employment opportunities to a vast majority of locals.
To assess quantum of SMEDA's support and facilitation towards the clusters a dedicated set of information was required in the form of a document. Initially, honey processing and trading cluster, Tarnab, Peshawar was selected as the most suitable cluster to assess. In this connection, an impact assessment study was designed by the authority.
The key interventions of SMEDA includes; formation and strengthening of the association, capacity building of stakeholders, product development, marketing & promotion, support in access to new markets, linkages with financial institutions, facilitation to participate in exhibitions and support in technological advancement. These interventions of SMEDA have also resulted in the increase of total sales turnover of the cluster from 202.50 tons to over 58200 tons per season. Thus cumulative sales turnover increased by 65.21% in the time duration under consideration as a result of increased demand and access to new markets. Net sales revenue of the cluster increased from Rs 138.75 million to Rs 480.45 million per season. The total increase in sales revenue remained at 71.12%.
Honey processing and trading cluster is spread over the city, but major hubs are near Tarnab Farm, known as International Honey Market, situated on main G T Road at a distance of approximately 10-Kilometer from Peshawar. This market is the largest honey market in Peshawar. Honey is distributed from here to all parts of the country and abroad. There are over 350 shops on two major locations (old and new honey markets). There are number of enterprises dealing in honey exports and some of the business units at this market deal in honey bee keeping as well.
The Bair (jujube) honey is supplied throughout the country, but major export market is Middle East. Due to the concentration of apiaries in the Blair flora season in the district, the honey from Punjab is also brought and sold to the exporters.
The core products of the cluster are comprised of honey combs and liquid honey. The two honey combs are Iranian and local, which are traded in plastic boxes and plastic bottles respectively. The liquid honey products are included Ajwan, which is originated from Swat while Blair (Jujube) is produced in Attock, Domail, Fateh Jhang, Karak, Kohat, Lakki Marwat, Mianwali, Nowshera and Talagung.
Bhekar honey is produced in Azad Kashmir, Fateh Jhang and Kharian while Palosa (Acacia Modesta) originates from Attock, Azad Kashmir, Fateha Jhang and Kharian and Malta (Orange) honey originates from Bhalwal and Sargodha. The raw material for honey production is totally indigenous, procured from Apiarists during different flora seasons. All of the wholesalers purchase the plastic bottles and food grade cans in bulk from the markets of Multan and Lahore. Packing material is also available in honey market as well while the trend of using glass bottles for honey packaging has also been started recently.
The key interventions initiated by SMEDA were the registration of association, capacity building of key members through training/orientation, linkages development & exposure to business platforms. The authority also supported the introduction of semi-mechanized filtration and processing honey at the cluster level after series of interactions and trainings. Recently, a full pledge automatic processing and packaging plant is in planning along with wax production plant.
For the purpose of the product development, a market led approach was adopted together with technical capacity initiative to enable cluster in producing new improved products. These initiatives include linkages with PCSIR laboratories, NARC and facilitation for participating in national and international exhibitions.
For packaging, SMEDA introduced improved packaging appropriate for honey for the first time in this cluster. This also includes standard and improved labeling and branding that ultimately results in increased sales and income for the stakeholders. A number of interventions have been taken up to develop linkages of the cluster stakeholders with all concerned public and private sector institutions. Business matchmaking and linkages with major companies dealing in such products including Al-Shifa, Qarshi, Marhaba and etc were also facilitated.
The cluster was also supported and facilitated for participation in number of exhibitions, trade shows and business fairs. Similarly, the members of the association were facilitated and linked to different commercial and micro finance banks for micro credit facilities and they were enabled to obtained loans for business from Bank of Khyber, SME Bank, ZBTL and other banks.
Furthermore, a number of training programs were organized to enhance the capacity building of the bee keepers, processors and traders, both in terms of skill-building to develop better products and in terms of improving business skills to play managerial roles.
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