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:-
=================================================================
UNFAO Study 1982/83 ADB Study 1985 Location
-----------------------------------------------------------------
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.
|
Courtesy Business Recorder
|
Pakissan.com;
|