Inclusive Sector Growth Strategy - Horticulture Market Development Facility - Pakistan
September 2015 Pakistan Country Team Version 1
Contents Summary of Main Findings ........................................................................................................... 1 Agriculture in Pakistan ............................................................................................................................ 1 Horticulture ............................................................................................................................................. 2 MDF Approach ............................................................................................................................. 6 Key Constraints........................................................................................................................................ 7 Opportunities to Address Key Constraints ............................................................................................ 11 Sector Growth Strategy for Horticulture ............................................................................................... 14 Regional Growth Strategy for Horticulture ........................................................................................... 17 Relevance for Pro-Poor Growth .................................................................................................. 21 Relevance for Cross-cutting Themes............................................................................................ 23
List of Tables Table 1 - Summary of Constraint Areas in Horticulture Sector ............................................................... 8 Table 2 - Intervention Areas and Opportunites .................................................................................... 11 Table 3 - Sector Growth Strategy for Horticulture ................................................................................ 14 Table 4 - Region-specific Growth Strategy for Horticulture .................................................................. 17
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Summary of Main Findings Agriculture in Pakistan Pakistan’s population is growing at a high rate. However, provision of basic infrastructure services (such as roads and electricity) has not kept pace with this growth. Regional inequality and political instability has further subverted efforts to eradicate extreme poverty when compared with regional counterparts such as India, China and Bangladesh. Consequently, almost two thirds of the total population lives on less than USD 2 a day. Most of the poor, an estimated 80% of the total, live in rural areas. Thus, poverty is disproportionately a rural phenomenon. Agriculture makes up 21% of the national GDP but has seen only modest growth in recent years. Pakistan’s rural economy is heavily dependent on agriculture and a lack of growth in this sector has constrained the development of the rural population. The agricultural sector employs 60% of the rural population (and 45% of total population in Pakistan) and comprises up to 70% of rural household incomes. The agricultural sector’s lack of growth negatively affects related sectors such as agri-processing and manufacturing, as well as related ventures like agro-chemicals, fertilisers or agricultural mechanisation. Thus, agriculture is a key sector for influencing pro-poor and inclusive economic growth, and growth trends so far suggest this sector is performing well below its potential. Influencing growth in this sector has its own set of challenges, spanning sector-specific issues such as access to agricultural services (e.g. irrigation and information) and products (inputs, varieties etc.), as well as broader issues such as land distribution (and access to arable land by smallholder farmers), and access to water. Some of these challenges are detailed below:
Access to markets: Pakistan has traditionally been an exporter of a handful of cash crops including cotton, wheat, rice and sugarcane. However, Pakistan produces a wide variety of products and there is huge potential to explore new products and new markets. There is no clear direction though about supplying particular products to particular markets (domestic or export). The infrastructure to cater to these different markets, such as transport, packaging, processing, testing, and storage, is also lacking in investment and innovation.
Regional diversity: Pakistan is a large country with distinct agro-climactic belts where specific crops are produced over specific seasons. However, most agricultural development has been concentrated in regions with the highest population densities, i.e. Punjab and Sindh, while other regions, particularly border regions, are lagging behind. Therefore, although agriculture is crucial to rural household incomes, not all households across the country reap the same benefits from it. Consequently, regional diversity, which can be a significant advantage for Pakistan’s horticulture sector, does not contribute effectively to growth.
Out-of-date agricultural practices: Agricultural practices in Pakistan are lagging far behind global best practices. The public sector focuses on traditional cash crops such as wheat, sugarcane, and rice, and therefore some positive changes have been seen in these value chains. However, for the majority of agricultural products (including vegetables and fruits), cultivation practices have remained mostly unchanged. This not only affects productivity
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(especially while supplying to the growing local market for vegetables) but also quality (particularly for exporting fruits to higher-end and increasingly discerning international destinations).
Land: Arable land in the country is unequally distributed with a high land Gini coefficient (estimated at 0.61). This means, a minority group of large farmers (and landowners) own the majority of the land. The majority of farmers, especially small farmers, are either landless or own very small plots. This high inequality in land ownership is a significant contributing factor to poverty in the rural landscape. For landless, or small farmers, the cost of production is higher and the choices limited when considering what to grow, and how to grow it. Most benefits of agricultural growth are enjoyed by a small percentage of farmers who own larger land areas and are able to grow more profitable crops such as wheat, sugarcane and cotton.
Water: Agriculture in Pakistan, especially in Punjab, Sindh, and Balochistan, depends heavily on irrigation. However, the canal irrigation infrastructure is outdated and inefficient. Allocation of water is not uniform and rights for access to water are not enforced, further exacerbating the problem. The water available for agriculture is easily accessible by medium and large landholders, but not smallholder farmers. Over the years, the quality and quantity of ground water has also declined, especially in Balochistan. These limitations have pushed farmers, especially small landholders, to shift to crops with reduced water requirements and higher product value. However, the public sector’s narrow focus on cash crops like wheat, sugarcane and rice has been an obstacle to realising this shift.
It is clear that the agriculture sector in Pakistan needs to diversify beyond traditional crops, and reform needs to be geared toward broad and sustainable long-term growth. Focus needs to shift towards strengthening sub-sectors where small farmers are prevalent and where there is limited public sector influence. Moreover, agricultural practices need to be modernised, investments need to be made to connect production centres to specific markets, better products and services need to be introduced to the sector to make it more productive, and diversity in agro-climatic regions and varying agricultural cycles needs to be turned into a strength. This transformation needs to be supported by a reformed business-enabling environment around agriculture.
Horticulture Horticulture is a sub-sector of agriculture that MDF has identified as an appropriate vehicle to facilitate pro-poor and inclusive growth in Pakistan. To strengthen the agricultural sector through diversification of products and markets, MDF’s intervention strategy covers cultivation, harvesting, post-harvest handling, processing and packaging of fruits, vegetables, and root crops for both domestic and export markets. The best-known products from Pakistan are mangoes and kinnow oranges, and they make up a significant percentage of horticultural exports. However, the product portfolio of Pakistan is much more diverse and varied. Pakistan has numerous distinct agro-climatic zones that are suitable for production of a variety of fruits (from apricots and peaches to apples and persimmons) and vegetables (from high-value brassicas to heavy varieties like carrots and potatoes). However, since
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large farmers produce mangoes and oranges, they can afford to invest in process and export infrastructure, and therefore these two products are more prominent in local and foreign markets. Smallholder farmers are mostly involved in growing other types of fruits and vegetables. Since they lack resources and investment capacity, they are unable to connect with the right markets, and cannot contribute to overall exports. The majority of Pakistan’s production of fruits and vegetables is sold and consumed in the domestic market. Approximately 8% is exported and less than 3% is processed. Demand for horticulture produce has been on the rise over the last two decades due to population growth and increasing income levels. Production has also increased from approximately 13 million tonnes in 2000 to over 16 million tonnes in 2012. However, production has not kept pace with growth in local demand, let alone catering to export markets. On the other hand, imports have risen steadily from 250,000 tonnes in 2004 to over 650,000 tonnes in 2012. These trends highlight a significant and increasing gap in the demand and supply for horticultural products. In the medium and long-term, horticulture shows promising prospects for growth. Growth opportunities are tied to the potential for export of new products to new destinations, and this potential can be tapped into through diversified processing, packing, preservation, and certification methods; ability to improve productivity of horticultural farms, through higher yields; improved quality and expanded crop production seasons in order to close the large local demand and supply gap; and an overall increase in investments in the sector to allow for products (and farmers) from all regions in Pakistan to reach the right markets. Nevertheless, there are obstacles to the growth of this sector. Though some of the constraints are shared with the broader agriculture sector, others are specific to horticulture. These obstacles are found at both the market and input end.
Access to end-markets There is growing demand for fruit and vegetables amongst customers in large cities in Pakistan, and amongst export markets looking to source diversified products. Furthermore, customers are looking for a more diverse product range and higher quality. However, the horticulture sector is not yet equipped to cater to and capitalise on this growing demand. Currently, the main markets for the bulk of Pakistan’s horticultural products are domestic. Most products go to the major urban centres of Karachi, Lahore, Peshawar and Islamabad. These products are sold mostly fresh, and only a small fraction is processed. A few products, mainly mangoes and kinnow oranges, are exported. These products make it to markets via informal pathways that are dominated by small traders, or arthis (local traders/middlemen). Due to the informal nature of these pathways, little investment is made towards improving logistics essential for increased trade, such as specialised transportation, post-harvest product handling, testing, certifications, storage, and packaging. Thus, fruits (other than mangoes and kinnow oranges) with export potential and vegetables in demand locally are not making it to export and domestic markets because of a lack of investment in developing efficient pathways from farms to markets.
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Balochistan, Sindh, Khyber Pakhtunkhwa (KPK), Gilgit-Baltistan (GB) and Punjab all have unique agroclimatic belts. In some cases, the quality and value of the product is determined by whether or not it can be certified as organic produce for export. In other cases, quality and value of the product are linked to yield of produce for domestic markets at times when other geographical areas are not producing due to seasonal differences. So in certain cases, benefits can be reaped by partnering with companies able to facilitate opening up of export channels, and in other instances opportunities lie in partnering with agro-input companies and other sources of input and information to influence cultivation techniques and eventually boost production. The main constraints restricting access to markets are:
Lack of certifications and export readiness
Lack of post-harvest handling and logistics
Lack of investment in infrastructure for processing
Narrow focus of public and private sector stakeholders on major crops (such as wheat, cotton, sugarcane and rice) at the expense of opportunities for growth in horticulture
The horticulture sector in Pakistan has great potential to produce and supply greater volumes to growing domestic and export markets. However, a lack of investment and innovation towards value addition and connecting farmers to markets is stagnating the sector’s growth.
Horticulture Inputs Horticultural farming practices vary greatly in Pakistan. Agri-service providers are largely focused on selling to a limited number of large farmers (agricultural inputs, equipment, and information) whereas the vast majority of small farmers still follow outdated techniques. Availability and access to quality horticultural input is also limited for small farmers, and this results in low yield and poor quality produce, which in turn negatively affects the sale of this produce. Small farmers have limited purchasing power and financing options and this limits their choice of inputs. An over-reliance on informal channels, dominated by arthis, further entrench small and medium farmers in a cycle of limited choices and poor productivity. About 67% of small farmers purchase inputs on credit from the arthi who often influences farmers into buying those brands of inputs that provide him with higher profit margins. Farmers are forced to choose from the options available with the arthi, regardless of whether or not that product is suitable. The distribution network employed by private input companies is also inadequate because it only targets medium and large farmers. There is a potentially huge market for inputs, made up of small farmers, that goes largely unnoticed. Furthermore, input companies have not invested in developing information channels geared toward small farmers. The sources of information for small farmers are often other farmers, local retailers, and trial and error. Most farmers are unaware of when to use pesticides and fertilisers, as well as techniques for effective and balanced application. This results in low yield and crop failure, and often leads to distrust of improved farming methods.
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The input business, and lack of information on how to use these inputs, is a challenge in itself in Pakistan. Private sector companies mirror government focus on a handful of crops in a few regions. These companies, because of their narrow focus, are largely unaware of the profits that can be made by targeting small farmers. Input companies are also reluctant to introduce new inputs, especially seeds, into Pakistan because the procedures involved in getting these new inputs approved is confusing, difficult and tedious. For example, in the case of introducing new seeds, companies have to endure a very lengthy registration and testing process (in the absence of plant breeders rights certification), which makes the investment quite risky. The key challenges to availability and access to inputs in the horticulture sector are: 
Lack of investment towards increasing reach of input companies to small farmers in regions outside of Punjab and Sindh (especially in the remote regions or border lands)
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Little or no information on modern cultivation practices and trends
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Restrictive and unfriendly business-enabling environment, which constrains the growth of input companies in Pakistan and obstructs investment in product (and service) development Horticultural farming mostly involves outdated practices, inadequate inputs and lack of relevant information. Farms are not as productive (and profitable) as they can be. Input companies are focused on a few crops and a few regions. They are unaware of the large market for inputs that small farmers provide, and thus take no action to tap into this area.
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MDF Approach To add value to horticulture in Pakistan, MDF intends to connect production centres (and their products) across the country with growing domestic markets and potentially lucrative export markets. Greater participation in growing local and international markets would lead to horticulture contributing a larger share to agricultural (and national) GDP. Greater connections and easier pathways to markets would enable farming households to earn higher and more stable incomes. A mature and more sophisticated horticulture sector would also lead to greater investments in processing and value addition, which will result in higher employment opportunities at farm and formal business levels. This process will involve engagement across the following areas: Improving market access by:
Enhancing the ability of exporters to procure fruit surplus in different belts by facilitating linkages with farming households through backward and forward linkages
Addressing productivity issues of small vegetable farms and enabling small farmers to supply larger volumes to growing domestic markets
Focusing on crops from different regions to ensure the inclusivity of remote regions in the effort to improve livelihoods through horticulture
Increasing access and availability of high quality inputs and information:
Promoting the use of high quality inputs (seeds, fertilisers, pesticides, irrigation systems and equipment) and information on how to use them, to increase productivity and ability of farming households to supply larger volumes to domestic markets
Directing focus on small farmers and underlining their significance in the sector, highlighting small farmers as targets for sales of inputs, clients of information, and targets of enabling environment reform
Enhancing value addition opportunities in the sector:
Promoting investment and innovation in logistics (post-harvest handling, sorting/ grading, packaging, storage, and transportation), processing, and value addition of horticultural products
Improving the quality of the business-enabling environment governing the horticulture sector:
Improving dialogue between public and private sector stakeholders on key areas of agribusiness-enabling environment reforms, export promotion services, water and land resource management, and introduction of agricultural innovations into the sector
Engagement in aforementioned areas will lead to improved income and employment for poor farmers and workers. Potential regions and crops that have attracted less public and private sector attention will be included in growth of the sector, and farmers associated with marginalised but indemand crops will be able to participate in markets and earn more. MDF will also endeavour to 6 | Market Development Facility
compliment the works of other development programs in horticulture to help improve the outcomes of development efforts for the beneficiaries in Pakistan through collaborative relationships. To realise this goal, MDF will identify businesses to partner with, which have an incentive (business value) to invest in business processes that help reduce key constraints in the functioning of the market systems that are faced by male and female farmers. The constraints identified in horticulture have been listed in Table 1, which also summarises the causes of the constraints identified in the Sector Assessment Report. Table 2 translates these constraints into market opportunities and identifies potential partners with whom MDF could work to capture these opportunities. Potential partners are listed for each opportunity identified. Table 3 brings constraints and opportunities together in a comprehensive manner and provides a strategy table for MDF’s activities in horticulture. Lastly, Table 4 takes into account Pakistan’s many distinct regions and agro-climatic zones and seeks to contextualise MDF’s strategy within specific regions. This last table provides a guide, according to each province, of key areas of strategic engagement for MDF as a response to constraints specific to particular regions.
Key Constraints The horticulture market system in Pakistan faces several key constraints in accessing markets and promoting effective use of critical inputs amongst farmers. Growing local demand is met by increasing imports, potential export opportunities for numerous products are left unexplored, and investment in value addition processes and logistics remain low. Consequently, a significant amount of farm produce never makes it out of the farms and into the markets. On the farmer end, cultivating non-traditional crops (other than cotton, wheat, sugarcane, and rice) remains unattractive to farmers, productivity is low due to usage of outdated farming practices and the unavailability of quality inputs, smallholder farmers remain ill-informed on changes in cultivation practices, and big agriculture focuses on a few crops and a few regions leaving smallholder farmers largely ignored. Cumulatively, these constraints contribute to the sector performing well below its full potential. In Table 1, MDF has identified six major constraints hindering the development of the horticulture sector in Pakistan. These constraint areas are elaborated upon in detail in the table. ‘Special interest areas’ do not refer to a separate constraint, but to areas in which a number of the constraints are grouped together. These are areas in which MDF will focus particularly to identify sustainable solutions to address these constraints.
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Table 1 - Summary of Constraint Areas in Horticulture Sector Constraint area
Explanation and Causes
Farmers are not connected to the right markets for their products
Farmers and buyers remain ill-informed about each other, as well as about potential markets Limited information at the farming end about domestic market requirements due to weak flow of information back to farmers. Limited information about market demand and production in areas where off-season vegetable production is possible (this remains true even for some easily accessible regions). Limited information at farming end about market requirements due to weak backward linkages by exporters. Opportunities to capitalise on market growth under-utilised Exporters and processors are virtually non-existent for certain fruits, even though there is substantial potential for exports or value addition. Poor connections between regional markets and far-flung production areas.
Small farmers miss out on agricultural advancement and growth
Focus is primarily on larger farmers Private input providers have limited their extension programs to larger farmers, leaving small farmers uninformed. High initial and running costs of efficient irrigation systems, such as drip irrigation, prevent smaller farmers from making use of advanced technology. Processing companies and exporters develop linkages with larger farmers and small farmers miss out on opportunities to cater to high-value markets. Major stakeholders are interested in, and promote inputs and information, for traditional cash crops (wheat, rice, cotton, sugarcane, mangoes, and kinnow) dominated by larger farmers, while small farmers and their products do not enjoy the same attention.
Small farmers have limited access to quality agricultural inputs resulting in less productive farms
Small farmers are not seen as markets for agricultural inputs and information Most input companies mainly target larger/medium sized farmers (as prime customers) leading to limited distribution and outreach. Distribution networks of input companies are limited to Punjab and Sindh Availability of inputs varies across regions, markets and crops, but most private companies focus on major crops i.e. wheat, cotton, sugarcane and rice within main agricultural regions i.e. Punjab, followed by Sindh and parts of KPK. Informal networks of arthis are a less profitable alternative to most small farmers Small farmers are served mostly through informal channels that limit their choices of products and services to invest in for their farms. As small farmers have low purchasing power, the limited choices offered to them are even more harmful. Small farmers mostly work on credit and are forced to choose from the products available with the arthi (credit provider) even though they may remain unsatisfied with the product quality. The quantity of high-quality produce is low due to lack of information about input usage. Investments in producing critical inputs locally are missing or considered risky Sufficient investments are not made in regions suitable for seed production due to weak infrastructure, limited access to water and distance from production areas. Certified nursery plants are not available for important fruits and plant mortality in orchards is high because of the use of uncertified nursery plants e.g. for citrus, mango and banana.
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Constraint area
Explanation and Causes
Farmers lack the knowledge on modern cultivation practices
Farmers are mostly uninformed about recent developments in agriculture and usage of modern inputs The prevalent sources of information for farmers in Pakistan are other farmers, local retailers or trial and error. This does not help the risk profiles of small farmers who have small margins of error for trying new methods on their farms. Extension services from the government are poor. A lack of coordination between government agencies and public R&D departments exacerbates the situation. Private companies do not consider provision of information (through private extension services or an embedded service) as commercially attractive. These companies focus more on catering to larger farmers in certain parts of the country. There is a general lack of information on best production practices (such as correct use of the right inputs, sources of supply of inputs, crop and pest management techniques, water management, etc.). This means farmers are deprived of information required for sound investments to make their farms more productive. This also means farmers are unaware of how to use resources they have in the best possible way.
Investments remain low on improvements and innovations to help make the sector more competitive
Investment in horticulture sector is low Investments in agriculture are limited to a few crops (wheat, rice, sugarcane, and cotton) and a few regions (mostly Punjab and Sindh). In horticulture, the trend is the same with majority investments going towards mangoes and kinnow oranges. Lack of information about market requirements prevents existing or new businesses from investing in new areas and new crops. Necessary investments needed to improve the pathways to markets are missing Weak road infrastructure, and inadequate packaging and transportation lead to high post-harvest losses and end products of lower quality. A lack of investment in formal (or organised) backward linkages by domestic retailers and exporters means products in demand are not supplied. Local exporters lack technical and processing ability to meet stringent international standards and obtain relevant certifications. Lack of infrastructure for the export of perishable items (such as cool houses and reefer trucks) and lack of facilities for export of other items such as hot water treatment and irradiation facilities. Investment in adding value to local products (through processing) lagging behind growing demand Processing and value addition industry is small, and only a few local product varieties are developed. There is little innovation in the sector and several fruits and vegetables are not being processed at all. Only a handful of processors have the technical knowhow, the required machinery and relevant certifications to provide quality value added products to cater to both local and international markets. Limited information about market demand prevents businesses from investing in processing facilities.
Unclear government policies and complex governance structures
Government action is uncoordinated and does not inform the market to influence investments Multiple levels of government (federal, provincial, and local) are obstacle to coordination and coherence in policies. Public sector focus is on traditional cash crops (rice, wheat, sugarcane, and cotton). Opportunities for growth in horticulture are not adequately supported. A lack of coordination amongst a number of government agencies, public R&D efforts, and extension services result in an overall poor condition of information. This also means the information that is available is not being communicated properly. Lack of government regulations on standards leads to variation in quality of produce being exported, posing a risk to the entire industry. The absence of plant breeders’ rights and lengthy registration and testing processes (two to four years) means private companies do not invest in research and development of inputs (mostly seeds).
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Constraint area
Explanation and Causes Special attention area
Agricultural advancement and growth is not equal both intraprovincially and interprovincially
Sindh Prevalence of traditional farming methods and lack of information on best practices negatively affects productivity. Irrigation systems do not serve all production areas in Sindh equally. Unequal distribution of water leaves large tracts of fertile land fallow. Gilgit Baltistan Weak road infrastructure makes market access difficult and increases wastage. The cost of production and collection of harvests by traders is high. Significant levels of products are left stuck at farms. Offers good climatic conditions for off-season vegetables and vegetable seed production but such businesses do not exist in the region. Absence of certified fruit nurseries that are able to cater to the quality and quantity needs of the farmers. Khyber Pakhtunkhwa Post-harvest losses are very high for vegetables due to a lack of storage infrastructure. Limited access to information about cultivation practices and cropping patterns means farmers are not able to capitalise on off-season production opportunities or opportunities around producing vegetable seeds. Limited processing and value addition takes place for fruits. Absence of certified fruit nurseries that are able to cater to the quality and quantity needs of the farmers. Balochistan Agricultural extension services are very limited for the largest supplier of fruits in the country. Very limited investment in packaging and processing of fruits. There are only two governmentbuilt pack houses in the province at present. This causes a significant loss of revenue for farmers along with high post-harvest losses. Significant issues present in the region around water resource management. Punjab Water resource management is a concern, especially with lowering ground water levels and increasing salinity of the water. Inappropriate usage (dosage or variety) of inputs is rampant. High pesticide use, or use of the wrong type of fertiliser not only jeopardises agriculture, but also has undesirable health outcomes for humans.
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Opportunities to Address Key Constraints MDF’s strategy in horticulture will involve building a portfolio of partnerships with businesses in intervention areas to address and rectify the identified constraints. In Table 2, constraint areas have been translated into intervention areas. For instance, lack of information regarding optimal use of input amongst producers was identified as a constraint. As a result, MDF’s strategy will focus on working with agribusinesses, government agencies, traders, exporters, processors and electronic media to provide information to farmers on the most effective use of inputs in a timely and sustainable manner. Table 2 - Intervention Areas and Opportunities Intervention area
Opportunities
More reliable and less costly access to export markets
Work with exporters, formal and informal traders, processors, government agencies, certification authorities, and logistics companies with a view of: Improving understanding of changing international standards for quality and establishing systems for updating quantity requirements for the international market (for specific products). Introducing and promoting advanced production practices and quality inputs through backward linkages to farmers to enhance quality and quantity of produce. Attracting and guiding investments in improved storage, processing and transport mechanisms for perishable items. Establishing sourcing and processing facilities in regions and for crops where significant export potentials are under-utilised. Facilitating diversification of export destinations and improving technical ability to process at scale to meet international standards and enter new markets.
More reliable and less costly access to interprovincial trade
Work with formal and informal traders, logistics companies, processors, and input companies to: Increase investments in support functions (post-harvest practices, packaging, trucking, storage, and testing) that allow more quality fruits and vegetables from more provinces in Pakistan to reach major cities (Karachi, Lahore, Islamabad, Peshawar etc.). Develop business models that tap into extensive informal networks of traders in remote parts of Pakistan to source a large variety of fruits and vegetables to meet growing local demand. Invest in business models that promote off-season vegetable production in potential areas that keeps markets in major urban centres supplied with a variety of fruits and vegetables throughout the year. Establishing backward linkages in remote areas for procurement of quality fruits and vegetables to supply to major local markets (Karachi, Lahore, Islamabad, Peshawar etc.).
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Intervention area
Opportunities
Increased access of small farmers to high quality agricultural inputs and production supplies
Work with input suppliers, distribution partners, regional agribusinesses, formal and informal traders, financial institutions, formal and informal traders, and processors to: Attract greater investments in broadening the distribution networks of large input companies, especially to remote areas and border regions. Forge partnerships between national input companies and smaller regional players to leverage greater region-specific outreach of regional players and to push quality inputs to smallholder farmers across all provinces. Develop customised financial products targeted at small farmers, allowing them to purchase necessary inputs from formal sources (and outside of informal, arthi-led, sources).
Promote modern and appropriate production practices, inputs, and equipment such as high quality seeds, appropriate fertiliser mixes including micro-nutrients, appropriate pesticides and crop protection products, drying tunnels, irrigation solutions, drying sheets, small tools and crop-related machinery. Increase investments in local input production, mainly in high quality seeds for select crops (onions, potatoes, and carrots, for example) and certified nurseries in major fruit-producing regions. Invest in business models for providing credit (or other forms of finance) to farmers, enabling them to engage in profitable farming that requires high initial investments.
Increased access of small farmers to cultivation knowledge through multiple channels
Work with exporters, processors, national and regional input suppliers, government agencies, formal and informal traders, media and telecommunications companies to: Use multiple channels to increase farmer knowledge on basic and modern cultivation practices. Increase investments in business models that provide specific information on specific crops and specific tools. This could be through formalised sourcing arrangements (such as contract farming and organised backward linkages), dedicated private extension services, or through embedded services provided during sale of inputs to farmers. Use dedicated information providers (such as TV, radio, research agencies and telecommunications companies) to improve the access of farmers to generic production, cultivation, cropping pattern (including profitable cropping patterns, expanded growing seasons, and off-season opportunities), agriculture mechanisation and input information. Attract greater investments in the development and implementation of new promotional tools, especially in remote regions (and borderlands) such as brochures, leaflets, audio/visual aids, road shows, media campaigns and demonstration farms. Ensure inclusion of small and medium farmers in extension service systems and information channels and highlight their role as key customers and stakeholders going forward in horticulture.
Increased investments in local processing and specialised infrastructure for local sourcing
Work with processors, exporters, logistics companies, financial instructions and certification agencies to: Invest in upgrading local processing facilities to meet local and international standards. Invest in improvement of technology and skills to increase capacity to process consistently at scale, increase use of innovative techniques, and obtain and renew relevant certifications. Expand processing to include a greater variety of fruits (outside of mangoes and kinnow oranges) that have sufficient demand in local and/or international markets. Invest in support services and business models that are able to connect large quantities of quality fruits and vegetables to processing facilities across the country. Improve the capacity of processors and exporters to search for and expand to new markets for their products. Increase the visibility of Pakistani products (processed or certified) to international and national high-end buyers.
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Intervention area Improved publicprivate dialogue between stakeholders on improving business-enabling environment in the horticulture sector
Opportunities Collaborate with government (federal, provincial, and local), public sector agencies, business member organisations (BMOs), and media companies on: Improving coordination between multiple layers of government, public and private research and development entities, and agricultural extension services to improve the quality of information on horticulture. Increasing the participation of landless farmers in agriculture through greater access to land and agricultural resources (such as water and information). Improving the infrastructure around irrigation and water resource management for farming (especially in Punjab, Sindh and Balochistan). Developing clarity around policies and regulations governing the horticulture export industry as well as aiding local exporters in compliance with international standards. Improving the distribution of required fertilisers to farmers across all regions. Attracting and incentivising local input companies (especially seeds) to facilitate registration and certification processes for improved varieties, through enactment of enabling policies. Introducing incentive programmes for guiding and attracting investments by Pakistani agribusinesses in remote areas (especially borderlands). Special attention area
Advancement of agricultural services and fostering of market linkages with remote and mostly overlooked production areas
Work with input companies, government agencies, formal and informal traders, exporters, processors, logistics companies, media, and financial institutions on: Investments in local processing, storage and value addition facilities in KPK, GB and Balochistan to reduce wastage in existing crop supplies. Investments in improved irrigation systems in Sindh and Balochistan to address water availability issues. Developing good quality local seed in regions of KPK, GB and Balochistan with suitable climatic conditions, through support in innovation and scale. Increasing production of off-season vegetables in KPK, GB and Balochistan through investments in local businesses and better market linkages through traders. Promoting investments in certified fruit nurseries in KPK, GB and Balochistan to cater to local plant quality and quantity demand. Expanding extension service systems to Balochistan and GB thereby ensuring farmer access to production and market information. Increasing access of landless farmers to quality production information through inclusion in private extension service systems.
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Growth Strategy for Horticulture Based on the constraints and opportunities described above, Table 3 presents MDF’s strategy for promoting growth within the horticulture sector. Table 3 - Sector Growth Strategy for Horticulture Intervention area
Markets to be influenced
Anticipated results if markets start to work better
Potential partners
1. More reliable and less costly access to export markets
Small farmers sell more produce to a larger number of buyers. Increased sales of surplus products provide additional incomes. Exporters and processors develop relationships with farmers in production areas (especially for fruits) across Pakistan (especially in major fruit areas of GB, KPK and Balochistan) through formalised networks such as contract farming, or through regional trader networks. Exporters and processors explore new markets for a wider range of fruits and invest in processes necessary to move more products from farms to export destinations.
More buyers look to source products to supply to new markets >> improved access of farmers to markets through multiple buyers >> more sales >> higher farm incomes>> more money to invest in agriculture or household needs.
Exporters, Formal and informal traders, Processors, Government agencies, Certification authorities, Logistics companies.
2. More reliable and less costly access to interprovincial trade
Small farmers sell more vegetables to local markets through a larger number of buyers. Small farmers invest more on increasing productivity to have more products to sell at their markets. Formal and informal traders invest in developing relationships with vegetable farmers in regions across Pakistan (especially those near large urban centres). These relationships inform businesses about production, source more products more effectively, and pass market information to farmers to help with sourcing products in quantity, quality, and on time. Input companies invest in increasing their networks to reach more small farmers with inputs (seeds, fertiliser, pesticides, irrigation solutions, and equipment).
More buyers look to source products to supply to local markets >> improved access of farmers to markets through multiple buyers >> more sales >> higher usage of inputs to boost productivity and supply against more demand >> higher farm incomes >> more money to invest in agriculture or household needs.
Formal and informal traders, Logistics companies, Processors, Input companies.
3. Increased access of small farmers to high quality agricultural inputs and production supplies
Small farmers have timely access to high quality inputs (seeds, fertiliser, pesticides, irrigation solutions, and equipment) across all regions in Pakistan. National and regional input companies, and businesses with linkages to farmers invest in increasing their networks to include more small farmers, across multiple regions, and multiple crops. Larger input companies invest in developing more inputs locally (particularly high quality local varieties of
Agri-input companies and agribusinesses invest in reaching small farmers in more areas >> improved access and availability of agricultural inputs and better technologies to small farmers >> high yield and better quality + ability to cultivate more land >> more production at lower costs >> more sales, better margins >> higher net incomes >> more money to invest in agriculture or household needs.
Input suppliers, Distribution partners, Regional agribusinesses, Formal and informal traders, Financial institutions, Processors.
14 | Market Development Facility
Intervention area
Markets to be influenced
Anticipated results if markets start to work better
Potential partners
seeds and agriculture machineries). Financial institutions design customised financial products targeting small farmers and allowing them to purchase inputs from formal sources (input retailers). 4. Increased access of small farmers to cultivation knowledge through multiple channels
Small farmers have better access to information on cultivation practices and how to use inputs through media, mobile phone applications, embedded services provided by retailers, service providers and manufacturers, and private-sector extension workers hired by agribusiness, processors and wholesalers. Businesses invest in the skills and content to educate farmers (both male and female) in different roles as appropriate. National and regional media companies connect to sources of information, create content, and disseminate. Special effort is made to reach women in the household.
Small farmers have better access to high quality agricultural information >> small farmers transform their farms into more efficient and effective ventures >> small farmers enjoy higher yields and better quality >> more sales >> higher net incomes >> more money to invest in agriculture or household needs.
Exporters, Processors, National and regional input suppliers, Government agencies, Formal and informal traders, Media, Telecommunic ations companies.
5. Increased investments in local processing and specialised infrastructure for local sourcing
Small farmers sell more products to processors as a result of increased capacity to source and process more produce. Businesses invest in logistics that enable more farm products to reach different markets (export and national), and processing that transforms more farm products into value added products (for export and national markets). Investments into essential functions such as trucking, packaging, certifications, processing, and storage, significantly improve the capacity of local businesses to source more produce across more farms and more regions.
Greater investments by businesses in specialised infrastructure >> increased capacity of businesses to source and process local products >> small farmers sell more produce >> higher enterprise incomes and increased employment >> higher net incomes for farmers >> more money to invest in agriculture or household needs.
Collectors, Traders, Wholesalers, Processors, Exporters, Cold storage providers and operators, Transport owners, Certification Agencies.
6. Improved public-private dialogue between stakeholders on improving business-enabling environment in the horticulture sector
Dialogue between relevant parties, backed up by data, helps improve the quality of rules and regulations, and guides public and private investment on key areas of land and water resource management, dissemination of agriculture information to small farmers, and improving conditions around exporting more horticulture products from Pakistan to new international destinations.
Business-enabling environment for agribusiness reduces costs and risk of doing business + includes small farmers (and their products) Âť more investment in natural resource management Âť more investment in increasing business networks to include more small farmers >> more sales and higher Incomes Âť more money to invest in agriculture or household.
Government (federal, provincial, and local), Public sector agencies, Business member organisations (BMOs), Media companies.
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Intervention area
Markets to be influenced
Anticipated results if markets start to work better
Potential partners
Special attention area Advancement of agricultural services and fostering market linkages with remote and mostly overlooked production areas
Small farmers in remote regions and borderlands (as well as small and landless farmers) enjoy greater access to information on modern cultivation practices (specific to crops that are grown in each region), information on using existing resources optimally (specific to each region), and high quality inputs on time (specific to the cropping patterns in each region). Through formalised trade arrangements, farmers also get access to services such as storing, packaging, transportation, testing, and processing. Access to these services ensures that fewer products are wasted and more products make it to the right markets.
Improved access to markets + less waste + higher yields >> more sales, better margins >> higher net incomes >> more money to invest in agriculture or household needs.
All of the above.
Cross-cutting Poverty
Cross-cutting – inclusive in above.
Improved access to markets + less waste + higher yields >> more sales, better margins >> higher net incomes >> more money to invest in agriculture or household needs.
All of the above.
Gender
Cross-cutting – inclusive in above and supplemented by targeted activities following a detailed gender study.
Additional income at the disposal of women due to increased yields from farming (as a result of better access to inputs and information) and additional employment opportunities off the farm. They also gain in terms of improved decision making power and enhanced influence because they can have informed household discussions on agriculture. Lastly, usage of efficiency (and effectiveness) enhancing inputs on farms help women keep their workload manageable.
All of the above.
Disability
Opportunities identified on a case-bycase basis in those areas where additional employment is created.
Increased employment of disabled.
All of the above.
16 | Market Development Facility
Regional Growth Strategy for Horticulture Given Pakistan’s many distinct regions and agro-climatic zones and keeping in mind the constraints and opportunities across these regions, it is important to contextualise MDF’s strategy within particular regions in order to achieve maximum results. Table 4 provides a guide, by province, of key areas of strategic engagement for MDF as a response to constraints specific to particular regions. Table 4 - Region-specific Growth Strategy for Horticulture Region
Markets to be influenced
Gilgit Baltistan and Chitral
Small farmers increase their incomes by engaging in high value seed production as well as supplying to a larger number of capable exporters of fruits. National and regional input companies invest in developing relationships and infrastructure necessary for producing high quality seeds of crops (onions, potatoes, and carrots). Exporters and processors develop relationships with farmers growing focal crops (apricots, mulberries apples, persimmon, and cherries). Exporters and processors invest in infrastructure and certifications that allow them to export (or process) a variety of fruit products targeting new and existing export destinations.
Priority Intervention Areas Intervention areas 1, 3 and 5
Contribution to WEE Objectives (if applicable)
Potential partners
Women are actively involved in farming activities in GB and in parts of Chitral. It is expected that through partnerships focused in these regions, women will have better access to end markets, storage, and transportation services (objective 5), resulting in an increase in income (Domain 1). Similarly, employment opportunities will be created for some women (Domain 4) and there may be contributions to their skill-set enhancement. In cases where women are directly paid for their services in the sector, or where they are directly negotiating with a higher number of buyers, their knowledge of market and negotiation position is strengthened and their decision making power improves (Domain 2).
Exporters, National and regional input companies, Formal and informal traders, Processors, Government agencies, Certification authorities, Logistics companies.
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Region
Markets to be influenced
Swat and Central Khyber Paktunkhawa
Small farmers increase their incomes by selling more products to a larger number of exporters of fruits (peaches, apples, persimmons). Small farmers sell selected high value vegetables (cucumbers, bitter gourd, tomatoes, and squash) to traders catering to the local markets by exploring seasonal and climatic advantages of the region. Exporters and processors invest in infrastructure, particularly storage, to get the current large production of fruits off of farms and into markets. Local formal and informal traders invest in relationships with vegetable farmers in the region to supply a larger variety of vegetables to growing local markets. Input companies target small vegetable farmers with inputs and information on how to use them by increasing their reach and penetration in the area.
Balochistan
Small farmers increase their incomes by selling more products to a larger number of exporters of fruits (apples and dates). Small farmers also earn additional incomes through increased sale of vegetables (tomatoes, onions, okra, carrots, and cauliflower) to markets in Karachi. Exporters and processors invest in infrastructure, particularly storage and processing, to get the current large production of fruits off of farms and into markets. Local formal and informal traders invest in relationships with vegetable farmers in the region to supply a larger variety of vegetables to the growing markets in Karachi. Input companies target small vegetable farmers with inputs and information on how to use them by increasing their reach and penetration in the area.
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Priority Intervention Areas
Contribution to WEE Objectives (if applicable)
Potential partners
Intervention areas 1, 2, 3, 4 and 5
Women of the household will benefit in terms of increased household income (Domain 1). As women may be involved in joint decision making over household expenditures, there will likely be positive impact on decision making powers (Domain 2) as their access to cultivation knowledge (through ICT or media solutions) is enhanced (Domain 5). In parts of KPK where women are allowed to work on farms, efficiency and effectiveness enhancing inputs are likely to have a positive impact on women’s workloads as farm work takes less time and gives more time to women to handle their domestic duties (Domain 3).
Exporters, National and regional input companies, Formal and informal traders, Processors, Government agencies, Certification authorities, Logistics companies.
Intervention areas 1, 2, 3, 4 and 5
Women benefit in terms of increased household income (Domain 1). As women may be involved in joint decision making over household expenditures, improved access to information on cultivation techniques and inputs (Domain 5) may also benefit their decision making role within the household (Domain 2). Social norms in many villages in this region prevent women from working on farms, and where women are involved, they have limited access to inputs and information on best practices. Women in this region have very limited interactions with male service providers.
Exporters, National and regional input companies, Formal and informal traders, Processors, Government agencies, Certification authorities, Logistics companies.
Region
Markets to be influenced
Priority Intervention Areas
Contribution to WEE Objectives (if applicable)
Potential partners
South Sindh
Small farmers sell more vegetables (onion, tomatoes, chilli, brinjal) to local markets through a larger number of buyers. Small farmers invest more on increasing productivity so they have more to sell at markets. Formal and informal traders invest in developing relationships with vegetable farmers in regions across Pakistan (especially those near to large urban centres). These relationships inform businesses about production (cropping patterns and crop calendars), source more products more effectively, and pass market information to farmers to help with sourcing products in quantity, quality, and on time. Input companies invest in increasing their networks to reach more small farmers with inputs (seeds, fertiliser, pesticides, irrigation solutions, and equipment).
Intervention areas 2, 3 and 4
As women may be involved to varying extents in the cultivation of various crops (sowing, land preparation, and as labour for harvesting), they will be able to benefit through increased income (Domain 1) and greater employment opportunities (Domain 4). Their workload can be made manageable through access to technologies and inputs that improve yield and reduce effort (Domain 3). They may also benefit from improved market access and improved yields through better access to inputs and information (delivered through unconventional mechanisms) (Domain 5). Finally as women are involved in joint decision making over household expenditures, they may be able to have more informed discussions and influence on household expenditures, particularly with regard to farm inputs. (Domain 2).
Formal and informal traders, Logistics companies, Processors, Input companies, Distribution partners.
Punjab
Farmers involved in fruits (kinnow oranges and melons) benefit from higher yields and more productive farms through access to (and availability of) quality inputs (especially pesticides) and information on how to use them. Inputs supplied to them focus on crop protection products such as pesticides. Input companies target fruit farmers with inputs and information on how to use them by increasing their reach and penetration in the area. They also invest in analysing reasons for declining productivity and supply products focusing on these problems.
Intervention areas 3 and 4
Women benefit in terms of increased household income (Domain 1). As women are involved in joint decision making over household expenditures, they also benefit in that regard (Domain 2). This decision making is further enhanced as women’s access to information on agriculture and livestock rearing improves through the use of ICT or media channels (Domain 5). Lastly, any inputs that can make household livestock rearing more efficient are likely to positively impact women’s workload, giving women more time to manage their domestic duties.
Input companies, Exporters, Processors, Formal and informal traders, Distribution partners.
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Region
Markets to be influenced
Priority Intervention Areas
Contribution to WEE Objectives (if applicable)
Potential partners
Business-enabling environment strategies per region Businessenabling environment strategies in GB and Chitral, KPK, and Balochistan
Exporters and processors are able to penetrate newer markets for export of a broader range of products through public sector support for attending trade fairs, exploratory visits to international markets, and other export promotion activities. In places like Balochistan, government support for businesses, in terms of cash or tax incentives, could stimulate greater investments in storage and processing, thus allowing for more fruits from small farmers to be absorbed by buyers.
Intervention area 6
As above.
As above.
Businessenabling environment strategies in South Sindh, Punjab and Balochistan
Small farmers (for fruits and vegetables) enjoy greater access to resources through reforms in land and water management policies. In areas like Balochistan, where security is a major constraint for out-of-region investors, government support to local businesses, in terms of access to finance on easy terms, or cash and tax incentives could stimulate more local businesses to scale up.
Intervention area 6
As above.
As above.
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Relevance for Pro-Poor Growth Poverty is concentrated in the rural areas of Pakistan where most households depend on agriculture as the main source of income. Thus, an effective means to reducing poverty in rural Pakistan is to facilitate advances in agriculture, which will in turn lead to greater incomes for farming households. As a sub-sector of agriculture, horticulture is particularly relevant to the economic advancement of small farmers. Horticulture is especially feasible for small farmers and intervention in this sector can result in a wide variety of products (fruits and vegetables) being supplied to growing domestic and export markets. Moreover, horticultural crops provide higher income per unit area as compared to other crops and have the potential to increase the income of small farmers significantly. When considering the bigger economic picture regarding agriculture, horticulture enables the inclusion of all regions of Pakistan to participate in markets, and subsequently reap the benefits of growth. Horticulture includes vegetables and fruits that are grown in dispersed production belts, some of which are situated in remote areas with a much higher incidence of poverty. Diversity in production areas and climate can be capitalised upon to supply horticultural products during times of low supply and high demand. For example, winter vegetables (carrot, cabbage, cauliflower, turnip etc.) that are grown in Sindh and the plains of Punjab from September to March can be produced in the mountainous regions of the country such as KPK, GB and Balochistan in summer (April to September), fetch higher prices in national markets, and increase farmers’ income. Intervention in the horticulture sector is a pro-poor strategy that can deliver inclusive and broadbased impact. However, constraints do exist that stifle the growth prospects. Horticulture farmers depend on surplus production for sale and are vulnerable to the market system because they receive less attention from stakeholders in Pakistan’s agro-economy. Moreover, poor connections between farmers and input markets, services, and end markets results in low yield, high costs, wastage, low volume of sales and, ultimately low earnings, which in turn impacts the farmer’s ability to further invest in their farms and/or household needs. The strategies and intervention areas noted in the sections above have been identified with the specific purpose to break through the cycle of low yield, low quality, high wastage, limited market connections, weak processing standards, minimal value addition, poor sales, low margins, and low investment levels. By working in horticulture, MDF’s objective of poverty reduction can stimulate growth in dispersed clusters across the country by enhancing income and employment levels through sustainable development in productivity, market access and operational efficiency. Interventions with partners will be designed in such a way that they help mitigate the constraints identified above, are commercially sustainable and are able to reach poor farmers. Pro-poor results are defined, and will be measured, as follows:
Additional income from farming as a result of being able to sell more, secure a better price and/or produce at a lower cost through efficient utilisation of inputs Additional employment opportunities, in particular in the businesses around farming, owners/employees of agribusinesses, processors, exporters, collectors, storage facility providers, distributors, retailers, service providers, etc.
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  
Income and employment opportunities in more remote districts where alternative sources of income are limited Investment in household wellbeing as a result of more disposable household income and more employment options Improvement in food and nutrition security as a result of having more disposable income and/or higher yield and more cost efficient practices
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Relevance for Cross-cutting Themes Contribution to Women’s Economic Empowerment The following five domains are the focus of MDF’s analyses on women’s economic empowerment: Overall objective: 1. Economic advancement Stronger agency: 2. Decision-making authority and influence in different spheres, including household finances and trade relations 3. Manageable workloads for women Improved access: 4. Access to opportunities and life chances such as skills development or job openings 5. Access to assets, services and support required to advance economically These domains inform the areas to be assessed during sector analysis, implementation, measurement events, and designing/ refining of current and future partnerships. MDF also conducts studies focusing on household-level analysis of poverty, gender and growth. This study is periodically updated in order to ensure that MDF is using the best information possible on gender issues while implementing the programme. Most members of rural households share farming activities in Pakistan. Women are actively involved in the horticulture sector and their presence can be observed across a number of farming activities, like planting, weeding, harvesting, sorting, grading and drying. Certain regions even have a higher involvement of women as compared to men, such as chilli picking in Sindh. Women in Pakistan rarely own land or have a lead position in making decisions on horticulture (with the exception of GB). However, working with certain crops where there is a higher involvement of women provides an opportunity to directly increase their economic wellbeing and develop a more promising role for them in due course. Below are some examples of how MDF interventions will enhance economic opportunities for women:
Access to quality inputs and information on input use (Intervention areas 3 and 4) will result in higher yield, which will in turn lead increased income and employment opportunities for women. For instance, women are predominantly involved in the picking of chillies in Sindh. Higher chilli yields will result in additional employment, as they will have greater yield of produce to pick, leading to an increase in total income (Domain 4).
Women will also directly benefit as a result of improved access to inputs and information, as well as improved marketing opportunities using innovative ICT and media channels (Domain 5). The increased yield leads to an increased income (Domain 1). Additionally, women are better equipped to contribute to agricultural decision making as a result of more
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information, greater variety of buyers and sellers to choose from, and stronger negotiating positions. These factors enhance the influence women have on decisions both inside and outside of the household (Domain 2). The extra workload associated with increased farming activities is addressed by providing access to labour-saving technologies and yield-enhancing inputs, which give greater return on effort. Division of labour amongst women in the household also alleviates the burden of each individual, with younger family members helping with domestic chores (Domain 3). 
Women are involved in post-harvest processes (such as cleaning, drying and packaging) at the farm and at processing sites. As MDF works on improving farmer and labour access to information (Intervention area 4) to reduce losses, it will create training, skill development and growth opportunities for women. For instance, women involved in drying and packaging of fruits at processing sites in GB will be provided with training on the standard operating procedures they need to follow to ensure they meet international market standards.

Similarly, as MDF supports companies to add scale and innovate (Intervention area 5) or promote interprovincial trade (Intervention area 2), it will create income enhancement opportunities for women. For instance, if an apricot processor in GB invests in and secures machinery, which results in increased efficiency of his processing cycle, it will allow the company to process higher volumes of dried apricots to cater to demand. Women farmers will likely benefit from increase in apricot sales, given their direct involvement in trade activities in the region.
MDF will collect and report gender-disaggregated data on: 1) effective outreach to target beneficiaries, and 2) additional income and employment opportunities generated through its interventions.
Environmentally Sustainable Business (incl. Climate Change and Disaster Risk Management) In agriculture, access to quality agro-inputs such as seeds, fertilisers, crop protection chemicals, and efficient irrigation techniques is a major challenge faced by farmers. The use of chemical inputs is widespread and largely undertaken on a trial and error basis, which can have a negative impact on the environment. In many areas of the country, nitrate content in groundwater is higher than desirable because of improper use of nitrogenous fertiliser along with heavy flood irrigation. Using pesticides only when needed, matching fertiliser supply with plant demand, and efficient water management will have a positive influence on the environment in the long run. In horticulture particularly, developing market linkages for farmers and improving income from fruits plantations will help retain existing produce and increase the number of fruit trees in the country. Fruit trees are beneficial for the environment in the plains of Pakistan and will help reduce soil erosions in high altitude areas. Initiatives to bridge information gaps and improving markets will not only be farmer-friendly but environment-friendly also.
24 | Market Development Facility
Socially Responsible Business (incl. Disability) In horticulture, MDF will, wherever possible, promote socially responsible business practices in cases of employment, child labour, workplace health and safety, business ethics, governance and risk management, and the inclusion of persons with disabilities, particularly in activities that involve formal businesses. In certain circumstances, partnerships may not proceed without a plan to address non-compliance issues.
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