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Fruit, vegetable
processing industry
SIRAJ-UL-HASSAN
One would be wonder-struck to
know that the number of fruit and vegetable processing units
in the country at the time of independence was as high as 255,
according to the official records of the Department of
Industry of the defunct provincial Government of West
Pakistan.
This figure compares pretty well with the estimation of 206
units made by a private monthly journal, "Finance and
Industry." The reason of concentration of processing units to
such a high degree may be well traced in the conditions that
prevailed in the country during the Second World War. The
entire area now comprising Pakistan was then full of huge
supply bases and transit camps for embarkations and
disembarkations of troops to and from actions in Africa,
Middle East, South East Asia and from all over the Far-East.
The demand for processed food, including fruits and
vegetables, by the army was high. It was not practicable and
possible to meet this demand through imports from abroad
because of war pressure on overseas transportation. There was
no other alternative but to procure army requirements
domestically. As a result small processing units had cropped
up to process and preserve fruits and vegetables on war
footing under a crash programme. Adequate quantities of fresh
fruits and vegetables were easily available.
With the war coming to an end, the mushroom growth of the
processing units could not sustain due to very small demand by
the civil population. Most of the units went out of business
gradually by the early fifties. The later reports record the
existence of 27 processing units in the organised sector and
80 in the unorganised sector in 1968-69. The units in the
unorganised sector were smaller in size and unregistered, and
used to work on seasonal basis producing syrups, pickles,
chutneys, vinegar, rose water and rose-petal paste (locally
called Gulqund) in courtyards with small window shops or
otherwise in a small way.
In the organised sector, of the 27 units only 11 units were
processing fruits. The type of machines and equipment used in
these factories were mostly manually operated and all imported
from UK. The spares and replacements used to be manufactured
and fabricated locally. Very few companies had automatic or
semiautomatic machinery. The total installed/sanctioned
capacity up to 1968 was in the neighbourhood of 22,000 tons
and exports during 1968-69 were as meagre as 55 tons.
It was when the existing four provinces of Pakistan were
amalgamated in one administrative unit was called West
Pakistan.
The position during the subsequent periods/years either has
not been very optimistic.
1980-81: There were about 55 fruit and vegetable processing
units of larger and medium sizes in the organised sector in
the country. Their regional dispersion was as under:
Sindh (Karachi): 12
Balochistan: 11
Punjab: 29
NWFP: 3
Majority of these units was working irregularly and some
during particular seasons only.
1986-87: In a report on fruit and vegetable storage and
marketing in Pakistan prepared by M/S Hawaiian Agronomics for
ADB/GOP in February 1986, the fruit and vegetables processing
units in the country have been estimated at about 108. This
report states that its "Summary of industry operations is
based on data accumulated from the eight major processors who
pack over 90% of product volume. The remaining 10% is spread
among approximately 100 other food processors in the country.
Most of these are small family or individual enterprise
processors who utilise minimal amounts of production in their
operations."
Corporate changes in the food processing industry in the
country between 1982-83 and 1984-85 based on UNFAO and ADB
studies have also been indicated in the above report in a
table which is reproduced below:-
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UNFAO Study 1982/83 ADB Study 1985 Location
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1. Mitchell's 1. Shezan Lahore & Karachi
2. Ahmed 2. Mitchells Okara
3. Rahman Int Ltd 3. Ahmad Karachi & Lahore
4. Shezan 4. Benz Lahore
5. Dittu & Sons 5. Tops Lahore & Rawalpindi
6. Food Processor Ind 6. Bambino D.G. Khan
7. S.A. Rahman & Sons 7. K.K Peshawar
8. Associated Food Ind 8. Pakistan Fruit Juices Multan
=================================================================
Based on
this comparison the Report infers that frequent changes in
processors are indicative of the fact that domestic food
processing industry of Pakistan has not yet assumed
stability. To give more credence to their inference the
authors of the report give instances of some new firms
established in the meanwhile but since either closed down
or operating very marginally. The three leading processors
have been stated continuing to dominate the industry.
These are M/s Shezan, Mitchells and Ahmad.
Current operational and economic scope and impact of the
industry: It is heartening to note that despite a number
of constraints the processing industry in the country has
made some headway. Still its economic impact on the fruit
and vegetable industry as a whole is negligible.
A number of food consultants, both local and foreign as
well as GOP agencies concerned have estimated that hardly
1% of total fresh fruits and vegetables moves into the
processing channel, with mango and orange dominating.
Among vegetables although, potato, tomato, peas and garlic
have great processing potential, yet quantities processed
at present are very meagre as compared to their fresh
production, the main reason being disappointing consumers
response. As a matter of fact the processing industry is
working against very adverse odds.
That is why that several large projects with new cannary
facilities equipped for fruit and vegetable preservation
and processing were established, but failed before their
operation could be proven. Still some enterprising
processors have braved the difficulties in as much as that
beside expanding domestic market for their products they
have also been successful in moving them into export
outlets (although in small volumes) presently confined to
Middle East and Gulf States. It is a healthy sign and
provides an optimistic note for the development of the
country's food processing industry.
The main reasons for the slow growth of the industry are
identified and summarised below:
(a) Consumers food habits: Processed products are not
generally liked by the consumers at large. It is only the
affluent urban consumers whose response to new products
utilisation is encouraging. It will take time to bring
about measurable change in the old-set habits of the
general public to eat only fresh commodities and have
pleasure of enjoying the fresh tastes during the season.
(b) Cost of products: The prices of processed products are
high and beyond reach of average income group of
consumers. It is pretty difficult for them to afford the
products even if they like to have and eat them. The
expensiveness of the products is due to high cost of
processing which in turn depends on the cost of production
factors particularly sugar (constituting 50% of the
contents especially in the case of jellies, jams, juices
and chutneys), and containers (whether of glass, metal,
plastic or paper). Sugar, beside being high in cost, is
also, at times, in short supply. The containers whether
imported or locally manufactured are expensive as those
locally fabricated use imported raw material available at
exorbitant prices.
(c) Seasonability: Most of the processing units work only
during seasons of marketing/availability of fresh fruits
and vegetables. The operating cost thus becomes higher
than if they operate all the year round running full
capacity.
(d) Product quality: Having no vertical integration almost
all the processing units have to depend for the supply of
fresh fruits and vegetables on the open market which are
most often of inferior quality, culled and sometimes
having blemishes and diseases. Further, no varieties well
suited for processing are grown in the country. Therefore,
only the leftover and rejected stuff finds its way into
the processing units. The raw material quality ostensibly
adversely affects the quality of the end-products.
In order to develop the fruit and vegetable processing
industry in the country on sound footing, it seems
imperative that various constraints (some of which are
identified above) are removed and other conceptual,
technological, operational and administrative defects are
rectified. The subject industry has ample potential and
viability to develop, sustain and contribute its bit
towards the economic development of the country once it is
treated affectionately in the "teething stage" by the
Government by providing liberal technical and financial
assistance or in other words by giving "most favoured
industry" treatment.
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Courtesy Business Recorder
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Pakissan.com;
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