Characterization of Citrus Value Chain in Punjab

By Dr. Muhammad Sharif

Social Sciences Institute, NARC, PARC, Islamabad, 2009

Objectives
to study the different types of citrus markets

to examine the different components of citrus supply

chains and associated constraints;

to analyze options to build better commercial linkages

between all components of citrus supply chain; and

to suggest policy measures for investment in research and

development, infrastructure and institutions to improve competitiveness of citrus supply chains in Punjab.

Characteristics of Citrus Markets

The majority of poor quality with a short shelf life

citrus is retailed in.

There are six types of citrus retail markets namely

street vendors/hawkers (selling to 20% consumers), fruit shops (51%), Tuesday, Friday and Sunday bazars (25%), roadside stalls (3%), super markets (1%) and food service (1%).
A small proportion of citrus (7%) are processed into

value added products as citrus pulp which is used for drinks.

Citrus Marketing Channels

Citrus Producer (100%)
95% 5%

Contractors
91%

4%

Kinnow Factories
9%

51%

40%

Citrus Exporters
Inter-provincial Commission Agents
30%

Local Comm. Agents

10% 41%

Local Wholesalers
37% 4%
Citrus juice factories

Inter-provincial Wholesalers
2% 28%

10%

Local Retailers
47%

Inter-provincial Retailers
38%

Inter-provincial and Local Consumers

Domestic Fresh citrus supply chain in Punjab

Citrus growers
(Rs.4/kg)

Commission agents

Wholesalers
(Rs. 6.5---8.5/kg)

Contractors
(Rs2/kg)

(Rs.6----6.5/kg)

Exporters D.Retailers
(Rs 8.5----17/kg)

Importers Consumers

Fresh fruit processing plants/exporters Rs. 8/kg 1. ME Rs.32/Kg 2. FE Rs. 40/kg

Exporters Importers

The Domestic Retail Processed Citrus Supply Chain

Processors (Rs.6.5---31/kg)
Wholesalers

Contractors
(Rs 4---6 /kg)

Citrus growers
(Rs.4/kg)

Commission agents
(Rs.6--6.5/kg)

Wholesalers

Exporters

Importers

Retailers

Consumers

Citrus export supply chain to middle east

Contractors (Rs4/kg) (Rs.6/kg)

Citrus growers (Rs.4-/kg)

Commission agents (Rs.6 ./kg) Rs6.5/kg)

Wholesalers (Rs6.5/kg) (Rs.8.5./kg)

Retailers Rs. 8.5---17.5/kg

Consumers

Wholesaler in importing country ??? Kinnow processing plant/Exporters (Rs 9./kg) (R32/kg) Importers (Rs 32-/kg) (Rs ????/kg)

Juice processor Rs. 4/kg

Retailer in importing country (Rs ???../kg) (Rs.???./kg)

Citrus export supply chain to Far East

Contractors (Rs4/kg) (Rs.6/kg)

Citrus growers (Rs.4-/kg)

Commission agents (Rs.6 ./kg) Rs6.5/kg)

Wholesalers (Rs6.5/kg) (Rs.8.5./kg)

Retailers Rs. 8.5---17.5/kg

Consumers

Wholesaler in importing country ??? Kinnow processing plant/Exporters (Rs 9./kg) (R40/kg) Juice processor Rs. 4/kg Importers (Rs 40-/kg) (Rs ????/kg) Retailer in importing country (Rs ???../kg) (Rs.???./kg)

Impediments associated with citrus supply chain

Complex marketing system with 203 regulated markets: Punjab (132),

Sindh (68), Balochistan (2) NWFP (1) Weak physical marketing chain

Low sale volume Non availability of Storage Limits market option for farmers Absence of cold storage facility in production areaforces the growers for immediate disposal of produce -- Glut formation and lower prices Orchards contracted out at fruit formation-- >85% productivity effects Similarly vegetables mostly marketed through agents Lack of price information system Poor financial marketing chain Low product prices Substantial post harvest losses -- 20-25%

High air/sea transport cost resulting low profit margins Export only about 10% of the total harvest Relatively low export prices Difficulty in maintaining quality at destination Inadequate international market information

Research and tainting lacking