Private Sector Engagement for Sustainable & Inclusive Economic Growth in Balochistan Agriculture

Marcel Stallen, Project Manager FAO BalochistanDawn Agri Expo, April 5, 2016

Agriculture interventions and activities in 14 Districts in Balochistan

Community Development (COs)

Interventions and Activities

Farmers Marketing Collectives (FMCs)

Interventions and Activities

Interventions and Activities

Water Resources Management:Water reservoirs

Interventions and Activities

Water Resources Management: Kareez rehabilitation

Land Levelling and dykes for increased water use efficiency

Interventions and Activities

Crop development:Good Agricultural Practices and IPM

Interventions and Activities

Crop Development:Seed Distribution and Variety Testing

Interventions and Activities

Human Resources Development: Farmers Field Schools

Interventions and Activities

Livestock development: Vaccination campaigns

Interventions and Activities

Wool Sector development

Interventions and Activities

Marketing & Post Harvest:Market exposure visits

Interventions and Activities

Kitchen Gardens for Enhanced Nutrition and Income for Women

Interventions and Activities

Costs of inputs and services shared with communities (50%)

Lessons learnt FAO Balochistan Agriculture Programme

1. FAO Development model (from Community mobilization to Farmers Marketing Collectives, Policy Support to Sustainable Value Chains).

2. In due course of time: Transition from Food Security and Livelihoods to Agribusiness and inclusive value chains

3. Sustainability of project activities through:a. Adding more value to products in Balochistanb. Professionalization Farmers Marketing Collectives (FMCs) c. Strong market linkagesd. Availability of commercial services and input providers e. Government in facilitating rolef. More conducive and enabling business environment

1. Facilitate private companies to deliver services and inputs in the province (rather than subsidizing inputs)

2. Identify & commercialize potential agro-based SMEs such as value added products, vegetable & wheat seed production, nurseries, etc. (Balochistan specific Agribusiness pilot projects)

3. Using competitive advantages and specific situation Balochistan (internal market, export to other provinces, meat, dates, fruit).

4. Strengthening Farmers Marketing Collectives (FMCs) on all aspects of value chains development (marketing, production, commercialization, processing, logistics etc)

5. Ensure participation of small producers and women in value chains (inclusiveness)

FAO Strategy on Agribusiness and (inclusive) Value Chains Balochistan

1. Food Security &

Poverty Reduction

2. Gender Economic

Empowerment

3. Agribusiness & Value Chain Development

Small Farmers & Female Inclusive

Business

FAO Strategy on Agribusiness and (inclusive) Value Chains Balochistan

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Added Value through improved varieties and grading

Examples Agribusiness and Value Chain development Balochistan

Improved Quality, Packaging and Market Linkages

Examples Agribusiness and Value Chain development Balochistan

Added value in Balochistan income generating activities for women

Examples Agribusiness and Value Chain development Balochistan

Dates processing & Marketing

Examples Agribusiness and Value Chain development Balochistan

Examples Agribusiness and Value Chain development Balochistan

Economies of scale, best practices and market linkages through Farmers Marketing Collectives

Eid Maundis (livestock)

Examples Agribusiness and Value Chain development Balochistan

Revamping wool & wool-based industry

Examples Agribusiness and Value Chain development Balochistan

From 50 % cost sharing to facilitation of companies

1. Why 50% cost sharing by GoB and FAO ? (subsidized inputs)

2. Nowadays GoB and Donors fill “gaps” because of absence private sector (seed supply, bulldozer services)

3. However GoB should facilitate companies and conduct public tasks such as quality control, certification, infrastructure etc. (no market distortion)

4. Public Private Partnerships: GoB as co investor (50/50) in privately operated facilities (pilot projects; meat processing, seed production etc)

5. Companies in drivers’ seat !

Conclusions1. For sustainable economic growth in agriculture (= through

value addition and market access) Balochistan: engagement private companies essential.

2. GoB to facilitate agri companies (= enabling environment, policy support, public private partnerships), instead of subsidizing inputs (distorting markets)

3. Donors to facilitate companies (50 / 50 cost sharing of value chain pilot projects) for privately operated facilities and companies (SMEs) gearing up agri business in Balochistan.

4. GoB and Donors to ensure: a. Inclusiveness of value chains (small farmers and women)b. Public tasks (conducive environment for doing business,

quality control, infra structure etc)

http://www.fao.org/pakistan

Thanks for your attention