DATES MARKETING STRATEGY

Pakistan Horticulture Development & Export Board

January 2008

CONTENTS
PHDEB Overall Strategy Schematic View Activities/Outputs Dates Overview Background Information Dates Production o World Dates Production o Pakistan Dates Production o Harvest Seasons o Processing o Prominent Dates Varieties Marketing System Dates Export o World Dates Exports o World Dates Imports o Pakistan Dates Exports o Mode Sale and Price Calculations o Export Constraints o Projected Dates Exports Development Strategy o Product Improvement o Infrastructure Development o Market Promotion o Facilitation o Regulations Dates Export Marketing Plan 2008 Crop Preamble Export Targets Existing Exports Allocation of Export Targets Interventions

PHDEB OVERALL STRATEGY

PHDEB OVERALL STRATEGY

PHDEB Strategy - Schematic View Global Trade (US$ 78 b)

Mission

High price end/niche markets

Marketing Foreign Investments New Markets Market Promotion Branding Overseas Offices FTAs / PTAs

Regulatory Policy Quality Standards Pre-shipment Inspection Trade Policy/ Regulations WTO/HACCP/ EUREPGAP

Infrastructure

Trade Policy Projects

Food Irradiation Value Addition Logistics Technology (Plasticulture) Business Plans

Pre-harvest Farmers Cooperatives Demonstration Farms Certified Seeds & Plants Research & Development Technology Crop Economics

Products
Kinnow Mango Dates Potato Onion Temperate fruits Flora Vegetables

Database

PHDEB Strategy Mission: Products: 1. 2. 3. 4. 5. 6. 7. 8. 9. Kinnow Mango Dates Potato Onion Temperate fruits Flora products (cut flowers, foliage) Vegetables Processed products High price end/niche international markets

Broad Working Areas 1. 2. 3. 4. Pre-harvest Infrastructure Regulatory/Policy Marketing

Outputs/Activities/Interventions 1.0 Pre-harvest 1.1 Farmers associations/cooperatives 1.1.1 Citrus (kinnow) 1 (Punjab) 1.1.2 Mango 2 (Punjab & Sindh) 1.1.3 Dates 3 (Khairpur, D. I. Khan & Turbat) 1.1.4 Temperate Fruits 3 (NWFP, NAs, Balochistan) 1.1.5 Potato 2 (Punjab) 1.1.6 Onion 2 (Sindh & Balochistan) 1.1.7 Flora 4 (Punjab, Sindh, NWFP & Balochistan) 1.1.8 International expert 1.2 Model demonstration farms 1.2.1 Citrus (kinnow) 5 Punjab 1.2.2 Mango 2 (Punjab & Sindh) 1.2.3 Temperate Fruits 3 (NWFP, NAs, Balochistan) 1.2.4 Flora 4 (Punjab, Sindh, NWFP & Balochistan) 1.3 Certified seeds & plants 1.4 Research & Development 1.5 Economics of fruits & vegetable cultivation 5

2.0 Infrastructure 2.1 Value addition 2.1.1 Processors meeting/contacts 2.1.2 Pre-feasibility reports/business plans (SMEDA, BOI, EAC, DFIs, .) 2.1.3 Presentations in CC & Is 2.2 Logistics 2.2.1 Reefers availability (Regional/Inland) 2.2.2 GenSets 2.2.3 Shipping companies 2.2.4 Air cargo space (PIA, charters flights..) 2.2.5 Pakistan Railways 2.2.6 NATCO, NLC & private sector 2.3 Technology 2.4 Trade policy initiatives/Food irradiation 2.4.1 Projects follow up 2.4.2 Monitoring system 2.4.3 Cool van proposal

3.0 Regulatory/Policy 3.1 Quality standards 3.2 Pre-shipment inspection 3.3 Regulations/Trade policy 3.4 Compliance (WTO, EUREPGAP, HACCP, SPS..) 3.4.1 Workshops 3.4.2 Seminars 3.4.3 Website 3.4.4 HortiMag 3.4.5 Extension material 3.4.6 Print media (Articles) 3.4.7 Documentaries

4.0 Marketing 4.1 Foreign investment (JVs) 4.2 New markets 4.2.1 Mapping of potential foreign markets 4.2.2 Quarantine requirements 4.3.2 Compliance

4.3 Trade agreements/protocols (PTAs, FTAs,..) 4.4 International branding & market promotion 4.4.1 International expert on brand development 4.4.2 Overseas offices (Europe, Far East, Middle East) 4.4.3 Publicity (Fruit Journals, printed matter) 4.4.4 Exhibitions 4.4.5 Delegations 4.5 Local branding & distribution system

DATES OVERVIEW

PAKISTAN HORTICULTURE DEVELOPMENT AND EXPORT BOARD

Dates Marketing Plan

1. 0 Background Information Pakistan is blessed with vast agricultural resources on account of its fertile land, well-irrigated plains, extremes of weather, and centuries old tradition of farming. It is because of its central importance in the economy that the Government has identified agriculture as one of the four major drivers of growth. According to an estimate, the total value of agriculture crops at current factor cost is estimated at Rs.550.268 billion, divided into major crops Rs.407.623 billion and minor crops including horticulture Rs.142.645 billion. The horticulture crops (fruits, vegetables & condiments) alone contribute Rs.116.645 billion, equivalent to US$ 2 billion, which is 26% of the total value of all crops and 81.8% of the total value of minor crops. Pakistan annually produces about 13.7 million tons of fruits and vegetables. Citrus fruit is leading in term of production followed by mango, dates and guava. Potato and onion are leading among vegetables and condiments. Fruit and vegetable export trade in Pakistan amounts to US$ 168.7 million (2005/06), of which fruits account for US$ 128.7 million (76.3%), vegetables US$ 25.5 million (15.1%) and fruit & vegetable preparations (mostly juices) US$ 14.5 million (8.6%). Their share in Pakistans total exports is slightly over one percent. Pakistan has unique but unsophisticated network of up to six or seven intermediaries between the primary source (producer and growers) and the end user. Because of the presence of so many layers and the lack of adequate marketing infrastructure facilities, 30 to 40% of the perishable produce gets spoiled before reaching the ultimate consumer. Apart from exports of other fruits like mango and kinnow which have earned a prominent place in the export sector, Pakistani dates also have potential to contribute to our export earnings to a large extent. Dates are rich in carbohydrates, minerals and vitamins and have a great importance as a staple food as well as a dessert fruit. The fruit is generally associated with health foods. Peak season for date consumption is during the month of Ramadan. Entire Muslim community around the world currently numbering 1.6 billion people is loyal consumer of dates. Consumption is also quite high during Christmas. Similarly, the fruit enjoys enormous significance on the occasion of Divali and such festivals in other religions. Dates have found their way into sweets, confectionery, chocolates, baking products, preservatives, salads, sauces, and breakfast cereals. Dates also have bulk industrial uses. With

advancements in food technology, new and very useful date products are being developed, indicating fruit's bright future. 2.0 Dates Production 2.1 World Dates Production Dates are cultivated mainly in warmer regions of Asia and Africa. The fruit is also grown in some parts of Europe and the USA. It is estimated that annually about 6 million tons of dates are produced world over. According to FAO, Egypt, Saudi Arabia, Iran, U.A.E., Algeria, Pakistan, Sudan, Oman, Libya, China and Tunisia are the major date producing countries of the world. The country wise production of dates in tons during years 2001 to 2005 is given in the following table: Table 1: World Leaders in Dates Production

Dates Production (Mt) World Egypt Saudi Arabia Iran, Islamic Rep of United Arab Emirates Algeria Pakistan Sudan Oman Libyan Arab Jamahiriya China Tunisia Source: FAO STAT 2005

Year 2001 2002 2003 2004 2005 6,499,562 6,649,454 6,776,003 6,832,602 5,764,560 1,113,270 1,090,000 1,100,000 1,100,000 1,170,000 817,887 874,986 757,601 437,332 630,281 330,000 298,006 140,000 117,000 112,620 829,540 879,000 757,601 418,427 625,000 330,000 238,611 140,000 130,000 115,000 884,088 885,000 757,601 492,200 630,000 330,000 219,770 145,000 120,000 111,000 900,540 880,000 760,000 450,000 650,000 330,000 238,000 150,000 125,000 122,000 970,490 880,000 760,000 516,290 496,580 328,200 238,000 150,000 130,000 125,000

2.2 Pakistan Dates Production Pakistan is one of the main growers of dates. It follows Egypt, Saudi Arabia, Iran and U.A.E. in the list of top date producing countries with 10% share of global production. Due to soil and seasons Pakistan is an ideal place for date cultivation. The area under cultivation and production of dates during the last 05 years are given in the following table 2.

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TABLE 2: AREA AND PRODUCTION OF DATES IN PAKISTAN Area Production (000 Tons) 630.3 625.0 426.8 622.1 496.6

Year
2001-02 2002-03 2003-04 2004-05 2005-06 (000 Hectares) 78.5 77.9 74.8 81.7 82.0

Source: Government of Pakistan, Ministry of Food, Agriculture and Livestock, Islamabad. Dates are grown in all the four provinces of Pakistan. Balochistan is the highest date producing province followed by Sindh, Punjab and N.W.F.P Table 3: Province-wise Production of Dates in Pakistan (2005/06) Province Balochistan Sindh Punjab NWFP Pakistan Area (000 Ha) 48.1 26.7 5.8 1.4 82.0 Production(000 Tons) 252.3 192.8 42.6 8.9 496.6 % Share 50.8 38.8 8.6 1.8 100.0

Source: Government of Pakistan, Ministry of Food, Agriculture and Livestock, Islamabad. The main Dates producing districts are as follows: Balochistan: Turbat & Panjgoor Sindh: Khairpur & Sukkur Punjab: Muzaffar Garh & Jhang NWFP: D.I.Khan . 2.3. Dates Harvesting Season Harvest season of dates in Pakistan starts from the month of July and continues up to the September. The production period of other main supplying countries including Iran, U.A.E, Saudi Arabia, Iraq, Israel, Tunisia etc. is from August to November. The dates are harvested and marketed at three stages of their development. The choice for harvesting at one or another stage depends on 11

varietals characteristics, climatological conditions and market demand. The three stages of fruit ripening are as follows: Doka Stage (Khalal): physiological mature, hard and crisp, moisture contents 5085 %, yellowish in color. Dang Stage (Rutab): Partially browned, reduced moisture contents (30-35 %), softened. Pind Stage (Tamar): Colour from amber to dark brown, moisture contents reduced below 25 % to 10 %, texture from soft pliable to firm. (Terms in parentheses are Arabic). 2.4 Processing At a typical processing plant, graded dates are brought; these dates are inspected for quality and weighed prior to entry in the plant. After that the dates are fumigated in completely sealed chambers. For further processing, dates are transferred to feeding line elevator and automatically dumped over a shaker for preliminary washing. These are then passed over a conveyer for manual sorting and grading. Hot air blast is supplied to remove excess water. Some dates are also pitted to stuff certain dried fruits. These are then packed as per available orders. Inferior quality dates are usually further processed in to different products such as syrup, paste alcohol, vinegar etc. The common stages involved during the processing are as under: a. Grading, selection and procurement b. Storage and fumigation c. Sprinkling, cleaning and drying d. Heat treatment e. Sorting and grading f. Pitting and stuffing (if applicable) g. Weighing and / pressing h. Packing and storage In certain cases some of these stages may be omitted. 2.5 Prominent Dates Varieties Pakistans commercially important date varieties include Aseel, Karbalai, Fasli, Muzawati, Hillawi, Begum Jangi, Dashtiari, Sabzo, Jaan Swore, Kehraba, Rabai and Dhakki. Aseel of Khairpur, Dhakki of D.I.Kkan and Begum Jangi of Mekran are best of all varieties of dates grown in Pakistan in terms of demand and popularity. These varieties have surpassed by none and are matched with Deglet Nour, Zahidi and few others of world most popular dates.

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3.0 Marketing System Like other horticulture crops, dates trade is with the private sector. However, Government largely facilitates the system by providing physical infrastructure especially wholesale markets & communication, market intelligence, market promotion and regulatory measures for smooth business operations. The Marketing channel of dates for export and domestic marketing is presented through Diagram 1:

P R E - H AR V E S T C O N T R AC T O R
PROCESSOR (DRY/FRESH) COMMISSION AGENT

EXPORTER

WHOLESALER

WHOLESALER

IMPORTER

RETAILER

RETAILER

RETAILER

Diagram 1: Marketing Channel of Dates in Pakistan

4.0 Dates Export The world market for dates is expanding. The exporting countries are striving to further expand their market share as new markets open up with world trade liberalization

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4.1 World Dates Exports The World Dates export market is about 0.42 million tons per annum (2005). The top 10 market leaders are mentioned in Table 4. Table 4: Top 10 Dates Exporting Countries of the World (2004) Ranking Country Exports % Market Share 000 Tons 1 Iran 117.o6 28.09 % 2 Pakistan 84..06 20.17 % 3 Saudi Arabia 51.45 12.35 % 4 Tunisia 50.18 12.04 % 5 United Arab Emirates 23.88 5.73 % 6 Iraq 22.91 5.50 % 7 Algeria 10.86 2.61 % 8 Israel 9.12 2.19 % 9 France 8.97 2.15 % 10 Egypt 8.88 2.13 % Source: FAO STAT 2005 As the above table shows Iran is on the top of the list with 28 % share while Pakistan with 20 % share falls second in the worlds top ten exporting countries. Saudi Arabia and Tunisia both with almost 12 % share are at par in their export performance securing third position in the year 2005. 4.2 World Dates Imports The world Date import is about 0.63 million tons per annum (2005). The top 10 dates importing countries of the world are mentioned in Table 5: Table 5: Top 10 Dates Importing Countries of the World (2005) Ranking Country Exports % Market Share 000tons 1 India 240.41 38.39 % 2 France 25.61 4.09 % 3 UK 15.68 2.50 % 4 Malaysia 14.54 2.32 % 5 China 13.20 2.11 % 14

6 7 8 9 10

Indonesia Germany Italy Canada Spain

11.52 10.45 7.04 6.93 6.39

1.84 % 1.62 % 1.12 % 1.11 % 1.02 %

Source: FAO STAT 2005 India is the largest importer with market share of about 38% while France and UK are second and third largest importers with shares of 4% and 2.5% respectively in the year 2005. 4.3 Pakistan Dates Exports Pakistan export of dates includes both fresh as well as dried dates. The annual export of both fresh and dried dates from the country averaged about 77,500 tons with average value of US$ 27 million during the past 5 years. Below mentioned table provides a break up of fresh and dried dates exported from Pakistan during 2001-2006.

Table 6: Export of Dates from Pakistan Fresh Dates Qty Tons Value 000 $ 4654 2080 3353 1655 2645 1284 4108 2037 4023 2681 Dried Dates Qty Tons Value 000 $ 72817 25546 67791 23449 62784 21449 79946 27114 85326 29669

Year 2001-02 2002-03 2003-04 2004-05 2005-06

Source: Federal Bureau of Statistics, Government of Pakistan, Karachi. The export data shows that Pakistans fresh dates export is very small compared to dried dates. There is a big gap between production and export figures. Pakistan on an average export 10 % of dates production and 90 % crop production is either consumed locally or wasted. This means that export of dates can be increased through modern production techniques and well organized post harvest management. According to MINFAL, Fruit, Vegetables and condiments statistics of Pakistan for the year 2005-06, USA is the largest importer of fresh dates from Pakistan with 49 % share in total export volume of fresh dates followed by UK and Canada with 14 % and 10 % shares respectively. Dried dates are mainly exported to India. 15

4.4 Mode of Sale and Price Calculations Dates exports are mostly made on pre-agreed prices. Dates are exported by air, sea and rail (Dried Dates). The FOB price for one kg pack is estimated at Rs. 50 or US$ 0.80 for Assel variety of Khairpur and Rs. 35 or US$ 0.56 for Begum Jangi variety of dates of Turbat ( August 2007). Details are given below: PRICE WORKING SHEET OF DATES ( Rs./1 KG) Detail Aseel Begum Jangi

Cost of dates Processing/Labour Transportation Packing material Misc. Costs FOB Rs. FOB US $

30 3

15 3

15 2 50 0.80

15 2 35 0.56

Sea freight to different destinations is given in Table 7 below: Table 7: Sea Freight from Karachi to Different Destinations Country Port Reefer 40 feet Non-reefer20 feet US $ 1800 2400 1700 4500 5000 2500 5200 5000 US $ 250 250 300 2000 2000 300 3200 2200

Malaysia Malaysia Sri Lanka UK Russian Federation Indonesia Canada USA

Kuala Lumpur Penang Colombo London St. Petersburg Jakarta Toronto New york

Following rates of air shipments are applicable for ex-Pakistan to the destinations given below from May, 2007 Country UK & Europe Air Freight (Rs./ 1Kg 85

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Norway/Denmark Russia Canada/USA Malaysia/Indonesia UAE

95 105 130 50 30

4.5 Export Constraints Product procurement from wholesale market Lack of processing and value added products industry Lack of market promotion No attempt for market expansion access to new potential markets Lack of physical infrastructure Transportation by non-reefer modes Lack of R&D support There is need to consolidate position in the existing markets especially USA, UK, Canada and Germany through strong market promotion and consistently supplying quality produce shipped by reefer containers, and also to identify new potential markets like Russia. Besides, Indonesia and Malaysia are important non-date producing Muslim countries. They are amongst top ten dates importing countries of the world and import dates for consumption in Ramadan and for other purposes in quite substantial quantities.

4.6 Projected Dates Exports The projected/targeted exports of dates from Pakistan over the next 5 years are presented in Table 8: Table 8: Projected Dates Exports from Pakistan Year 2008/09 2006/07 2007/08 2008/09 2009/10 Volume (000 tons) 98 108 120 132 145 Value (000 US$) 35600 39000 43000 47300 52000

The export projections are based on the following assumptions: 17

Consolidation of position in existing markets thru strong market promotion Access to new markets thru delegations, promotions, FTAs, EHPs (where possible) Development of physical infrastructure like modern dates processing and packing plants in the production areas. Shipment by reefer containers(USA, Canada, UK and other European Countries. Good Agricultural Practices at dates orchards. Pakistan has to strive hard to enlarge its share in the existing and penetrate into the new markets. It should be kept in mind that our competitors like Iran, Saudi Arabia etc. are better organized in terms of product quality, logistics and market promotion. 5. Development Strategy 5.1 Product Improvement Improvement in farm management practices leading to better quality and more yields Introduction of new cultivars based on targeted import markets requirements

5.2 Infrastructure Development Processing & Packing facilities CA storage Cold chain system R& D Support through establishment of Dates Research Centre. 5.3 Product Promotion Delegations Products display in international expositions Website International media Pamphlets, leaflets etc. 5.4 Facilitation 5.4.1 Awareness Seminars/workshops Printed matter (posters, leaflets)

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Media Videos 5.4.2 Training Training of trainers Farmers/farm labour Pre-harvest contractors Exporters/traders Transporters Cold storages/processing plants operators Staff of line departments 5.5 Regulation National grades & quality standards Pre-shipment inspection/certification (national/international) Accreditation (national/international)

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DATES EXPORT MARKETING PLAN 2008/09

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Pakistan Horticulture Development & Export Board

Dates Export Marketing Plan 2008 Preamble Date Palm (Phoenix dactylifera L.) is third commercial fruit crop of Pakistan. Currently Pakistan is earning about US$ 32 million by exporting 89000 tons of dates against the total production of 500000 tons indicating enough room to increase volume of export. Pakistan has the capacity to supply high quality dates and dates by-products like pitted/un-pitted whole dates, press dates bricks, dates syrup and dates paste. The export of dates are mainly sourced from khairpur (Sind) and alternatively from Turbat (Balochistan). At present exporters of Pakistan are getting a price of about US$ 660 per ton for fresh dates and US$ 350 per ton for dried dates (2005/06) where as Israel, France and Tunisia are earning US$ 4480 per ton, US$ 2502 per ton and US$ 2008 per ton of their dates respectively which depicts a large price differential. Despite Pakistan being a major dates producing country has not realized its export potential. Pakistani dates are not getting the real value in international markets. There is need to concentrate on improving product quality, availability and post-harvest management. More advanced processing and refining is required to produce high value brands of dates and dates by-products. Export Target Current Export Target (2008 crop) 89 thousand tons 98 thousand tons US$ 32.0 million US$ 35.6 million 0.55 Million Tons

Anticipated Production during 2008

Existing exports of Pakistani Dates ( both fresh & dried) to selected Markets. India 80700 Tons USA 3672 Tons UK 700 Tons Canada 500 Tons Germany 350 Tons Denmark 270 Tons Malaysia 225 Tons Indonesia 100 T0ns Allocation of Export Targets (Additional) India USA UK 8000Tons 500 Tons 150 Tons

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Canada Germany Denmark Malaysia Indonesia

150Tons 50Tons 50Tons 50Tons 50Tons

Product Flow: Schematic View

Preharvest

Harvest & Postharvest

Infrastr ucture/ logistics

Marketi ng

Exports US$ 35.6 Mil

Improved farm Management. G.A.P.

Proper harvesting. sorting/curing Proper packing Proper transport

Modern Processing Packing Plants Dates by-Products Manufacturing Cool Chain

Delegations/ Expositions Access to new markets Publicity (Media)

Interventions Field Demonstrations - Improved Harvesting/ Curing - Insect infestation - Sorting - Packing Good Agriculture Practices (GAP) - Awareness seminars on GLOBALGAP - Training of trainers Infrastructure Development - Establishment of wholesale market (Turbat) - Packing and Processing Plants at Khairpur & Turbat - CA storage - Proper transport

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Export Facilitation - Farmers/Exporters contacts - Logistics (air/sea) - Institutional support (Plant Quarantine, ANF) Market Promotion - Delegation - Exhibitions - Publicity Research and Development - Integrated pest management - Post harvest technologies - New varietal trials Value addition - Dates By-products - New & attractive Packing

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