Competitiveness/Value Addition

Improving export quality, value addition and compliance with market requirements

The goal is to achieve the result of improved quality, value addition and compliance by business operators in the export supply chain. The programme formulation mission of TRTA had highlighted sub-optimal export performance in a number of key sectors, especially in relation to fisheries and horticulture products, and a number of industrial sectors. Fishery products suffer from insanitary conditions on fishing vessels and at landing sites, and lack of ice and refrigeration. Mango export supply chains lack rapid chilling facilities immediately post harvest. Along with kinnow, there is poor quality management in plants packaging for export. Post harvest losses are high in all food sectors. Common cross-sectoral constraints identified were the lack of compliance with international regulations, poor quality management by enterprises, poor handling of produce and a lack of understanding of customer needs. These factors result in Pakistani exports being rejected by customers, achieving relatively low market prices, and subsequent loss of market shares. Amongst some of the critical problems to be addressed were:

  • weak logistics networks, especially under-developed cold chains
  • lack of knowledge and skills in terms of industry best practices for quality and value added, productivity and logistics
  • lack of sectoral benchmarking
  • lack of strategic focus and weak support service delivery in public sector interventions

Whilst larger producers wish to move towards accreditation under the GLOBALGAP (Good Agricultural Practice) standard, this is presently out of the reach of most of the small-scale growers in Pakistan.

The Pakistan Horticulture Development and Export Company (PHDEC) has proposed a PAKGAP standard as a more affordable complementary option which should be made internationally recognized. This approach is an important step in the right direction, which should be supported by TRTA II.

Industrial sectors suffer from lack of awareness of market requirements, and use of outdated management and productivity tools. Strategic direction for meso level interventions to support improvement of quality and productivity is only weakly defined. The TRTA II Programme results in this component are therefore designed to deliver support to exporters by building the capacity of private and public organizations, which are in a position to provide support services (such as technical advice, training, public infrastructure investment, and incentives schemes). In the fisheries and horticulture sectors, the programme will help strengthen public and private investment planning in supply chain infrastructure (such as fish landing sites) and will support in development of business arrangements along the global supply chain to identify key bottlenecks for establishment of business linkages between international buyers and Pakistani exporters. The proposed result for this sub-component has been confirmed during the inception phase to remain valid and the above activities will achieve the expected result. Consultations during the inception period have further confirmed the need for strengthened supply chain management, as a basis for improved quality, value addition and compliance.

Hence, the focused activities to achieve the result of this sub-component constitute the following: