The establishment of a local certifying body in organic farming would provide low-cost audit and certification facilities to the existing market players in Pakistan.
Shafaqat Ali Syed, Financial Analyst and Investment Advisor (FA & IA), Agribusiness Support Fund (ASF), told Business Recorder on Wednesday that ASF has approved a matching grant support for Bhombal & Company (Pvt) Ltd, Karachi, to acquire foreign accreditation in organic farming certification and GlobalGAP.
Besides this, ASF has also approved a matching grant support of Rs 1.22 million for All Pakistan Fruit & Vegetable Importers, Exporters & Merchants Association (APF&VIEMA) for establishment of a Business Resource Centre (BRC) at Karachi.
ASF is a non-profit company, established by the Ministry of Food, Agriculture and Livestock (Minfal) and supported by Asian Development Bank (ADB) under the Agribusiness Development & Diversification Project (ADDP). ASF extends its support in the shape of matching grants to agribusiness concerns in horticulture and livestock sectors.
Shafaqat said that as the demand for organic fruits and vegetables is increasing, there has to be a local certification body which could provide international level services on subsidised rates to the farmers and exporters. It would be a unique initiative undertaken by any private company in Pakistan to establish a hundred percent local certifying body in organic farming with foreign affiliation.
The accreditation programme would be completed in two stages. In the first stage, Bhombal & Co would send its qualified staff members for a comprehensive training programme in Turkey. In the second stage, the trained personnel would conduct audits in Pakistan under direct supervision of their foreign counterpart, ie the foreign certifying body.
These trained personnel would also be invited by the foreign certifying body to conduct organic farming audits abroad. Upon successful completion, both companies would enter into an arrangement of establishing a fully accredit certifying body in organic farming, in Pakistan. ASF would share substantial portion of the complete accreditation programme.
The FA & IA said that organic production of agricultural commodities like fruits and vegetables has become a need of the masses in developed countries because of the fear of residues of synthetic chemicals being used on them. Pesticides and fertilisers have proven side effects on human health and on the environment, and their residues create problems like cancer, infertility, liver disorders, brain damage, etc.
The demand for organic products, inclusive of fruits and vegetables, is growing worldwide. With an estimated annual growth of 15-20 percent, the present global turnover of certified organic products has reached $50 billion.
The local certifying body is being viewed as a means of enhancing awareness among concerned masses. High prices of organically produced products in the foreign markets would encourage farming communities in Pakistan to adopt organic farming practices and obtaining locally available international certification services, ultimately resulting in increased exports of organically produced fruits and vegetables and creation of foreign exchange generation source for the country.
About the APF &VIEMA, he said that it was registered with the Ministry of Commerce in 1986 and presently is led by its Chairman Abdul Wahid. It is the only recognised body representing and serving the interests of traders involved in the business of fruits and vegetables in Pakistan.
Establishment of the proposed BRC is a unique initiative undertaken by any association so far in Pakistan. Funded primarily by its members, it would be run as a commercial business venture, providing both tangible and intangible services to its members.
The BRC would serve as a meeting place for its members to undertake business dealings and negotiations and to discuss current issues, government regulations and policy changes, dispute settlement, implication of changes in international markets, etc.
Equipped with modern technology and trained manpower, the BRC would not only enhance local and international market linkages but would also serve as an information hub for international market news and developments, trade exhibitions/fairs, international exporters and importers, new potential market places, etc.
A comprehensive official website would not only provide reliable data of Pakistan's horticulture industry but would also contain business profiles of all members of the Association. From time to time, the BRC would also organise capacity programmes, seminars and workshops on marketing and packaging techniques, foreign markets, certifications and standard requirements, policy matters, etc. The BRC would also provide its members with legal aid and advisory services in dealings with relevant government authorities.
Khalid Khan, Chief Executive Officer of ASF, said that an association could play a critical role in the development of industry, provided it effectively channelises the available resources and keeps the stakeholders abreast of the local as well as international market changes and requirements.
He said that the need for such a common platform was being felt for a long time, and expressed the hope that with the support extended by ASF, the Association would strive for promotion of exports of horticulture products and play a key role in the formation of the country's trade policies.