Industry in focus

 

Fruits & Juices exports to USA
By Ismat Sabir
The processed food and beverages industry is considered to be one of the largest industrial sectors in Pakistan. It accounts for approx 27% of total production and 16% of total employment in the manufacturing sector. The total value of production was over Rs. 46 billion.

Pakistan produces a wide variety of fruits and vegetables, with total annual production estimated at 9 million metric tons. Production estimates for various fruits are: over 1.9 million metric tons citrus 989,000 metric tons, mangoes 438,000 metric tons, apples 525,000 metric tons, guavas 126,000 metric tons, apricots and other fruits 1.914 million tons, other fruits include bananas, grapes, pomegranates, pears and dates.

Although mechanized grading and packaging has started but still nearly 50 percent of total fruit and vegetable production is lost during harvesting, transportation, preservation and storage. Exports of fruits stood at 4 to 5 percent of total production amounting to US$ 78.29 million during 2000-01.

There are good opportunities to export fruits juices to America; however, we are confining ourselves to this market only.

The USA imports a wide variety of juices from different sources. The juices are mainly in frozen, concentrate and ready to consume condition in pure or combinations. The most popular juices imported into USA are apple, grapes, citrus, lemon lime, pineapple, berry, pears, oranges, cherry and prune.

Pakistan is producing a wide variety of apples and citrus fruits, but due to Animal and Plant Health Inspection Services (AMPHS) regulations, the fresh fruits cannot be exported to USA from Pakistan. However, there is no restriction on export of juices, according to the Commercial Division of the Consulate General of Pakistan.

It would be appropriate that the Government of Pakistan encourage fruit down-stream industry in Balochistan, NWFP and other apple growing areas. This will help to reduce wastage of fruits during season, create employment in the under developed areas and increase foreign exchange earnings. Special fiscal and financial incentives should also be given to the apple and citrus growing areas.

Among the fruits preparations, mango preparations, preserved dried fruits, apricots dried, sultan raisin SD & grapes dried were exported to the USA. The main competitor for Fruits and prepares was India.

America also imports different types of vegetable and preparations. Its imports during last three years, 2000, 2001 and 2002, were $ 4,740 million, $ 5,254 million and $ 5,614 million respectively.

The import of major items include frozen orange juice, berry juice, fruit juice mix, pear juice tomato juice, vegetable UF/OT juice and other fruit juices

Out of the total imports fruit and vegetable juices, into USA, Pakistan's share was very nominal.

The main item include strawberry Jam, Mango, Paste pure, Cherry Jam, Peach Jams, Citrus, Fruits Paste, Papaya and Guava Jams.

Pakistan's export of Jams and Jellies is negligible where as India's exports of these items is significant quantities.

India is marketing its products. It is regularly participating in the major trade fair and advertising its products in the special magazines. While since the last 3 years, no serious efforts have been done by Pakistani exporters or the government departments for the market promotion.

To promote Pakistani products in US market participation in exhibition is necessary. As agriculture produce export offer tremendous opportunities for Pakistan especially for rice, fruits and vegetable preparations and fish products, Pakistan should launch aggressive marketing campaign to promote these products. This is especially necessary due to the fact that in the manufacturing sector e.g. textile etc. Chinese on slaughter are taking the share of other countries. The position will be more difficult after abolition of textile quota in January 2005. Therefore, in order to maintain Pakistani's current export level and increase market share diversification is must Pakistani agriculture exports presently cater only to the ethnic community while the American consumer is almost ignored. In order to attract the American consumer, EPB may consider the participation in the exhibitions like Natural Products Expo West March 2004, Anaheim; CA USA, Natural Products Expo - East, September 4-7, 2003,Washington, DC, Washington Convention Center; Fancy Food Show Chicago, IL May 4-6, 2003, McComick Place, Chicago, IL; Fancy Food Show New York, Jacob Javits Center, New York, June 29- July 1,2003 and IFT Show, New Oriens, LA, 2004 date to be announced.

The Consulate General advised that at each of the exhibition, participation should be at the country level and the size of the pavilion should not be less than 5000 sq. ft., which should accommodate cooking of the rice and free distribution among the visitors. Fruits juice and other preparations should also be given at eth stand. This will help to develop taste of the Pakistani products and thus will create market demand. Moreover, well-coordinated publicity campaign may be made to promote agriculture products.

Table -- I: Import of Juices in USA

(Value in 000$)

Items Jan-Dec Jan-Dec Jan-Dec Jan Jan % Change

2000 2001 2002 2002 2003

Total juices 755,612 646,711 662,582 51,566 73,654 42.83

Berry juice 24,405 23,421 27,517 1,965 2,680 36.39

Apple Juice 277,933 232,489 221,827 23,267 22,600 2.48

Grape Juice 65,155 45,174 52,812 5,385 3,035 -43.64

Grapefruit Juice 3,993 1,022 663 52 36 -30.64

Lemon Juice 18,241 13,906 13,551 943 2,654 181.44

Lime Juice 4,999 4,347 5,144 135 300 122.22

Orange Juice 226,037 175,408 168,521 4,397 27,659 529.04

Pineapple Juice 60,047 75,968 79,410 7,863 8,605 9.44

Other Fruits Juice 99,207 98,398 120,653 9,525 8,675 -8.92

Table -- II: Export of Fruit Juices from Pakistan to USA

(Value in 000$)

Items 2000 2001 2002 Jan-2002 Jan-2003 % Change

Total juices 653 29 27 -- -- --

Lime Juice 0 6 -- -- -- --

Orange Juice -- 354 -- -- -- --

Pine Apple -- 3 -- -- -- --

Other Juices 653 20 27 -- -- --

India is also exporting fruit juices in very little quantities; however, it is better than Pakistan table-III.

Table -- III: Export of Juices from India to USA

(Value in 000 $)

Items 2000 2001 2002 Jan-2002 Jan-2003 % Change

Total juices 863 325 232 13 24 84.62

Apple Juice 451 81 3 -- -- --

Pine Apple 17 -- 5 -- -- --

Other Juices 395 244 223 13 24 84.62

In addition to the fruit juices, U.S. also imports a wide variety of fruit and fruit preparations. Its total imports of fruits and fruits preparation during last three years were as follows in table-IV:

Table -- IV: US Import of fruits & their preparations

(Value in 000 $)

2000 2001 2002 Jan-2002 Jan-2003 % Change

2,715,585 2,798,593 3,176,516 343,622 357,949 4.17

Table-V: Pakistan's export of Fruits & Fruits Preparations to USA

(Value 000$)

Items 2000 2001 2002 Jan-2002 Jan-2003 % Change

Dates Whols /pit 3,560 1,890 1,742 250 533 113.20

Fresh & Froz Fruits -- -- 8 -- -- --

Fruits Preparations 3,560 1,882 1,660 250 533 113.20

Total Fruits Preparations 10,679 5,671 5,225 749 1,600 113.20

Pakistan's export of vegetable preparations to US

Items 2000 2001 2002 2002 2003 % Change

Total 2,304 2,461 2,160 148 148 00

Total import of fruit and vegetable juice into USA during the last three years were as follows:

Items 2000 2001 2002 2002 2003 % Change

Total Imports 767,729 659,920 674,861 52,472 74,240 41.80

Total Fruits and

Vegetable Juices 650 664 35 35 27 -22.86

Other Fruit Juic 27 21 10 10 11 10.00

The import of jams and jellies into USA

(Value in 000 $)

Items 2000 2001 2002 Jan-2002 Jan-2003 % Change

Total Jams & Jellies 54,662 52,959 56,419 3,936 4,161 5.72

Pakistan's export of Jams and Jellies is negligible where as India's exports of these items is significant quantities.

Items 2000 2001 2002 Jan-2002 Jan-2003 % Change

Total Jams & Jellies 7,768 5,118 5,421 254 475 34.18

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