PAKISTAN HORTICULTURE DEVELOPMENT AND EXPORT BOARD

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					      POTATO MARKETING
          STRATEGY




Pakistan Horticulture Development & Export Board

                      2008


                       1
                                    CONTENTS
PHDEB Overall Strategy

     Schematic View
     Activities/Outputs

Potato Overview

     Background Information
     Potato Production
        o World Potato Production
        o Pakistan Potato Production
        o Harvest Seasons
        o Prominent Potato Varieties

     Marketing System
     Potato Export
        o World Potato Exports
        o World Potato Imports
        o Pakistan Potato Exports
        o Mode Sale and Price Calculations
        o Export Constraints
        o Projected Potato Exports

     Development Strategy
       o Product Improvement
       o Infrastructure Development
       o Market Promotion
       o Facilitation
       o Regulations

Potato Export Marketing Plan 2008 Crop

     Preamble
     Export Targets
     Allocation of Export Targets
     Market Based Interventions
         o Sri Lanka
         o Malaysia
         o East Europe

Grades & Quality Standards



                                         2
3
PHDEB OVERALL
  STRATEGY




      4
                                  PHDEB OVERALL STRATEGY
PHDEB Strategy - Schematic View
Global Trade (US$ 86 b)



Mission           High price end/niche markets
                                                                                                    Marketing

                                                                                             • Foreign Investments
                                                                                             • New Markets
                                                                                             • Market Promotion
                                                                Regulatory Policy
                                                                                             • Branding
                                                                                             • Overseas Offices
                                                              • Quality Standards
                                                                                             • FTAs / PTAs
                                                              • Pre-shipment
                                                                Inspection
                                     Infrastructure           • Trade Policy/
                                                                Regulations
                                • Trade Policy Projects       • WTO/HACCP/
                                • Food Irradiation              EUREPGAP
                                • Value Addition
                                • Logistics
          Pre-harvest
                                • Technology
   • Farmers
                                  (Plasticulture)
     Cooperatives
   • Demonstration Farms
                                • Business Plans                                    Products
                                                                                    • Kinnow
   • Certified Seeds &
                                                                                    • Mango
     Plants
                                                                                    • Dates
   • Research &
                                                                                    • Potato
     Development
                              Database                                              • Onion
   • Technology                                                                     • Temperate fruits
   • Crop Economics                                                                 • Flora
                                                                                    • Vegetables




                                                          5
                                  PHDEB –Strategy

Mission:       High price end/niche international markets


Products:

    1.   Kinnow
    2.   Mango
    3.   Dates
    4.   Potato
    5.   Onion
    6.   Temperate fruits
    7.   Flora products (cut flowers, foliage)
    8.   Vegetables
    9.   Processed products

Broad Working Areas

   1.    Pre-harvest
   2.    Infrastructure
   3.    Regulatory/Policy
   4.    Marketing

Outputs/Activities/Interventions

1.0 Pre-harvest

1.1 Farmers associations/cooperatives
    1.1.1 Citrus (kinnow) 1 (Punjab)
    1.1.2 Mango 2 (Punjab & Sindh)
    1.1.3 Dates 3 (Khairpur, D. I. Khan & Turbat)
    1.1.4 Temperate Fruits 3 (NWFP, NAs, Balochistan)
    1.1.5 Potato 2 (Punjab)
    1.1.6 Onion 2 (Sindh & Balochistan)
    1.1.7 Flora 4 (Punjab, Sindh, NWFP & Balochistan)
    1.1.8 International expert

1.2 Model demonstration farms
    1.2.1 Citrus (kinnow) 5 Punjab
    1.2.2 Mango 2 (Punjab & Sindh)
    1.2.3 Temperate Fruits 3 (NWFP, NAs, Balochistan)
    1.2.4 Flora 4 (Punjab, Sindh, NWFP & Balochistan)

1.3 Certified seeds & plants
1.4 Research & Development
1.5 Economics of fruits & vegetable cultivation


                                                            6
2.0 Infrastructure

2.1 Value addition
    2.1.1 Processors meeting/contacts
    2.1.2 Pre-feasibility reports/business plans (SMEDA, BOI, EAC, DFIs,)
    2.1.3 Presentations in CC & Is

2.2 Logistics
    2.2.1 Reefers availability (Regional/Inland)
   2.2.2 GenSets
   2.2.3 Shipping companies
   2.2.4 Air cargo space (PIA, charters flights…..)
   2.2.5 Pakistan Railways
   2.2.6 NATCO, NLC & private sector

2.3 Technology

2.4 Trade policy initiatives/Food irradiation
    2.4.1 Projects follow up
    2.4.2 Monitoring system
    2.4.3 Cool van proposal

3.0 Regulatory/Policy

3.1 Quality standards
3.2 Pre-shipment inspection
3.3 Regulations/Trade policy
3.4 Compliance (WTO, EUREPGAP, HACCP, SPS…..)
    3.4.1 Workshops
    3.4.2 Seminars
    3.4.3 Website
    3.4.4 HortiMag
    3.4.5 Extension material
    3.4.6 Print media (Articles)
    3.4.7 Documentaries

4.0 Marketing

4.1 Foreign investment (JVs)
4.2 New markets
    4.2.1 Mapping of potential foreign markets
    4.2.2 Quarantine requirements
    4.3.2 Compliance

4.3 Trade agreements/protocols (PTAs, FTAs,…..)
4.4 International branding & market promotion



                                                                            7
    4.4.1 International expert on brand development
    4.4.2 Overseas offices (Europe, Far East, Middle East)
    4.4.3 Publicity (Fruit Journals, printed matter)
    4.4.4 Exhibitions
    4.4.5 Delegations
4.5 Local branding & distribution system




                                                             8
POTATO OVERVIEW




                  9
 PAKISTAN HORTICULTURE DEVELOPMENT AND EXPORT BOARD


                            Potato Marketing Plan

1.0 Background Information
Pakistan is blessed with vast agricultural resources on account of its fertile land,
well-irrigated plains, extremes of weather, and centuries old tradition of farming.
It is because of its central importance in the economy that the Government has
identified agriculture as one of the four major drivers of growth. According to an
estimate, the total value of agriculture crops at current factor cost is estimated at
Rs.550.268 billion, divided into major crops Rs.407.623 billion and minor crops
including horticulture Rs.142.645 billion. The horticulture crops (fruits, vegetables
& condiments) alone contribute Rs.116.645 billion, equivalent to US$ 2 billion,
which is 26% of the total value of all crops and 81.8% of the total value of minor
crops.

Pakistan annually produces about 13.7 million tons of fruits and vegetables.
Citrus fruit is leading in term of production followed by mango, dates and guava.
Potato and onion are leading among vegetables and condiments. Fruit and
vegetable export trade in Pakistan amounts to US$ 168.7 million (2005/06), of
which fruits account for US$ 128.7 million (76.3%), vegetables US$ 25.5 million
(15.1%) and fruit & vegetable preparations (mostly juices) US$ 14.5 million
(8.6%). Their share in Pakistan’s total exports is slightly over one percent.

Pakistan has unique but unsophisticated network of up to six or seven
intermediaries between the primary source (producer and growers) and the end
user. Because of the presence of so many layers and the lack of adequate
marketing infrastructure facilities, 30 to 40% of the perishable produce gets
spoiled before reaching the ultimate consumer.

Potato is one of the main cash crops for the farmers as well as among the main
exportable horticulture commodities from the country. Therefore, development of
potato crop will improve farm incomes and foreign exchange earnings.

2.0 Potato Production
2.1 World Potato Production

It is estimated that annually about 315 million tons of potatoes are produced
world over. In many parts of the world it is staple food of the people. Table 1
shows world potato producing leaders:




                                                                                  10
Table 1: World Leaders in Potato Production (2006)
Sr.No        Countries                 Production 000 Tons       % Share
     1        China                    70,338,000                    22.32
     2        Russian Federation       38,572,640                    12.24
     3        India                    23,910,000                     7.59
     4        United States of America 19,712,630                     6.26
     5        Ukraine                  19,467,000                     6.18
     6        Germany                  10,030,600                     3.18
     7        Poland                     8,981,976                    2.85
     8        Belarus                    8,329,412                    2.64
     9        Netherlands                6,500,000                    2.06
    10        France                     6,354,333                    2.02
Source: Food and Agriculture Organization of the United Nations, Rome,
          Italy (www.fao.org)
The world market for potatoes is expanding. The exporting countries are striving
to further expand their market share as new markets open up with world trade
liberalization.

2.2 Pakistan Potato Production
Pakistan annually produces about 2 million tons of potatoes. Though varying
from year to year, area and production of potatoes in Pakistan have exhibited an
increasing trend over the past 8 years (Table 2):

Table 2: Area and Production of Potatoes for the Period from 1999/00 to
          2006/07 in Pakistan
Year                                  Area (‘000’ ha) Production (‘000’ tons)
1999/00                                         110.5                    1868.4
2000/01                                         101.5                    1665.7
2001/02                                         105.2                    1721.6
2002/03                                         115.8                    1946.3
2003/04                                         109.7                    1938.1
2004/05                                         111.9                    2024.8
2005/06                                         117.4                   `1567.8
2006/07                                         133.4                    2581.5
Average (1999-2007)                             113.1                    1914.2
Source: Agricultural Statistics of Pakistan, Ministry of Food, Agriculture and
          Livestock, Government of Pakistan, Islamabad.
In addition to above, the Northern Areas produce about 100,000 tons. Therefore,
the available crop size is about 2 million tons which less than 1% of the world
potato production.

Punjab is the leading potato producing province followed by NWFP, Balochistan
and Sindh. Province-wise production is contained in Table 3:




                                                                             11
Table 3: Province-wise Production of Potatoes in Pakistan (2006/07 Ave)

Province             Area (000 Ha)         Production(000 Tons) % Share
Punjab               120.6                 2407.4                  125.7
NWFP                 9.6                   129.5                     6.7
Balochistan          2.8                   41.83                     2.1
Sindh                0.3                   2.7                       0.1
Pakistan             113.1                 1914.2
Source: Agricultural Statistics of Pakistan, Ministry of Food, Agriculture and
         Livestock, Government of Pakistan, Islamabad.
Production of potatoes varies from district to district in a province. The main
potato producing districts are as follows:
       Punjab: Okara, Sahiwal, Pakpattan, Sialkot, Kasur, Jhang & Lahore.
       NWFP: Nowshera, Mardan, Swat, Dir & Mansehra.
       Balochistan: Killa Saifullah, Kalat & Pishin.
       Sindh: Khairpur & Shikarpur

2.3. Potato Harvest Seasons
The agro-ecological diversity obtained in the country enables production of
potatoes almost around the year. However, production volumes greatly differ
from crop to crop as follows:
          November-March        Autumn Crop (Punjab & NWFP plains)-
          Jan-Feb peak harvest (85% of national potato production)

         April-May               Summer Crop-Punjab & NWFP plains (5%)

         July-September          High Hills - Northern Areas (5%)

         September-October       High hills - NWFP & Balochistan (5%)

It is apparent from the above that bulk of the potato crop is harvested from
January to March. Potato can be safely stored up to 6 months. The autumn crop
is placed in cold stores in addition to feeding the instant market. The stored
potatoes are gradually released during the lean crop periods generally from June
onward. Production of potato in the high lands is increasing owing to demand in
the domestic market for fresh potato which fetches premium price. The size of
the hill crop therefore directly impact prices of stored potatoes.

The autumn is the main potato crop. It is harvested from January to March. The
market prices during these months are lower than the remaining months. This
encourages exports which too are mostly made from the autumn crop.

2.4 Prominent Potato Varieties
The potatoes are broadly categorized into red skinned and white skinned. It is
almost a native crop to Pakistan. A number of potato varieties have been



                                                                             12
  introduced in Pakistan from time to time, mainly originated from Holland. The
  prominent varieties are as follows:

        Red skinned varieties: Desiree, Cardinal, Raja, Synphonia, Coroda, Barna
        White skinned varieties: Sante, Santana, Diamont,

  There is need to study the performance of these varieties in the existing and
  future markets and may opt for changing varieties or introducing new varieties
  preferred by the consumers. Also, the existing varieties are for table purposes.
  The expanding market for processed products like French Fries demands
  cultivation of suitable varieties like Atlantic, Bintje, Rose phurban, Rosetta raya
  and Spunta.

  3.0 Marketing System

  Like other horticulture crops, potatoes trade is with the private sector. However,
  Government largely facilitates the system by providing physical infrastructure
  especially wholesale markets & communication, market intelligence, market
  promotion and regulatory measures for smooth business operations. The flow
  chart of potatoes for export and domestic marketing is presented through
  Diagram 1:
                          DIAGRAM 1: FLOW CHART – POTATO

  Export Marketing
                                            Exporter
       Harvesting                          Grading
        Sorting           Wholesale        Packing      Shipment      Importer/
        Packing                                            by         Wholesale         Retailer
                           Market          Transport
       Transport                                        Sea/Road


             Harvesting
              Grading            Cold                                              Consumer
Farm          Packing           Storage
             Transport


             Harvesting
              Grading                                   Pharia/
              Packing                     Wholesaler   Mashakhor     Retailer
             Transport

 Domestic Marketing




                                                                                  13
4.0 Potato Export
4.1 World Potato Exports
The World potato export market is about 9 million tons per annum (2005-06). The
top 10 market leaders are mentioned in Table 4.
Table 4: Top 10 Potato Exporting Countries of the World (2005-06)
Ranking      Country                       Exports            % Market Share
1            Netherlands                           1,504,200               17.1
2            France                                1,488,230               16.9
3            Germany                               1,281,180               14.6
4            Belgium                                 931,330               10.6
5            Canada                                  433,510                 4.9
6            Egypt                                   298,760                 3.4
7            USA                                     289,730                 3.3
8            China                                   244,940                 2.8
9            Spain                                   244,290                 2.8
10           Israel                                  227,500                 2.6
Source: Food and Agriculture Organization of the United Nations, Rome,
        Italy (www.fao.org)
Netherlands, France, Germany and Belgium together occupy about 60% of the
world potato exports including re-exports.

4.2 World Potato Imports
The world potato import is about 10 million tons per annum (2005-06). The top 10
potato importing countries of the world are mentioned in Table 5:
Table 5: Top 10 Potato Importing Countries of the World (2005-06)
Ranking       Country                      Exports             % Market Share
1             Netherlands                          1,625,510                18.0
2             Belgium                              1,112,290                12.3
3             Spain                                  750,180                 8.3
4             Italy                                  560,970                 6.2
5             Germany                                481,080                 5.3
6             United Kingdom                         454,390                 5.0
7             Russian Federation                     376,580                 4.2
8             United States of America               357,490                 3.9
9             France                                 247,560                 2.7
10            Portugal                               233,020                 2.6
Source: Food and Agriculture Organization of the United Nations, Rome,
         Italy (www.fao.org)


                                                                             14
Potato imports into Netherlands and Belgium are mostly for re-exports.

4.3 Pakistan Potato Exports
The potatoes harvest of the autumn crop is usually exported owing to its large
size and depressed prices in the domestic market. The annual export of potato
from the country averaged about 50,000 tons during the past 5 years. Yearly
exports are given in Table 6:

Table 6: Export of Potato from Pakistan, 2000/07
 Year         Quantity (tons) Value (000 US$)
                                                         Price per kg (US$)
 2000/01               58,450                    6,656                 0.114
 2001/02               56,987                    6,091                 0.107
 2002/03               69,348                    6,818                 0.098
 2003/04               56,042                    5,346                 0.095
 2004/05               20,762                    3,119                 0.150
 2005/06               15,397                    2,664                 0.173
 2006-07              160,095                   26,973                 0.168
Source: Federal Bureau of Statistics, Government of Pakistan, Karachi.

The lowest export figure in 2004/05 is attributed to crop shortage n the country
thereby pushing the prices upward in the domestic market and rendering export
un-economical. In 1998/99 Pakistan exported 122,290 tons potatoes. The potato
export dropped to 91,059 tons in 1999/00 and further declined during the
subsequent years. It is partly due to crop size and partly due to poor
international marketing. No serious efforts have been made to identify and
capture new markets. Also, generally when there is a bumper crop, efforts are
concentrated on exports and vice versa. This adversely affects business
credibility.

Per unit export prices are also low which apparently are attributed to produce
quality. Potatoes for export are sourced from the wholesale market, manually
regarded and repacked according to exporters’ choice and generally shipped thru
non-reefer open top containers. The repeated and rough handling, extended time
between harvesting and product preparation for export, holding produce at
relatively high temperatures and use of non-reefer mode of shipment will
evidently adversely impact the produce quality and as a consequence its
marketability and sale price.

The conventional cold storage facilities lack in automation and are thus manually
manipulated. This causes temperature fluctuations which adversely affects
produce physiology, and in turn its quality. Lack of humidity controls inside cold
storages further compounds the problem. The sucrose content of stored potatoes
increase which is disliked by the consumers. This limits export periods as well its
volumes. There is need to develop CA storage facilities so that potatoes maintain
their quality and are exported over the extended periods.


                                                                                15
The destination-wise exports of potato are given in Table 7:

Table 7: Country-wise Export of Potato from Pakistan
Country                                            Potato (2000-2007)
                                               Quantity (tons)    Value 000Rs
                                                       160,095        1,753,306
Afghanistan                                                 758            8524
Iran                                                     82356          890441
Malaysia                                                   6240           69869
Oman                                                       1073           11111
Srilanka                                                 48351          541886
Sub-Total                                               138780         1521831
Others                                                   21314          231475
Source: Federal Bureau of Statistics, Government of Pakistan, Karachi
         (Computed)


Srilanka is the main market, followed by Afghanistan. Both these markets are
very convenient because unlike Malaysia consumer in Sri Lanka and Afghanistan
is less quality conscious. Local production of potato in Sri Lanka is also
expanding every year. This combined with Government policies to protect local
farmers thru increased tariffs. This adversely impact imports from Pakistan.
Tariffs and local costs are shown below:

      CID @SR 18.50 per kg (Pak Rs.10.57)
      Cess@10% on Custom valuation (presently US$ 245/ton) & CID
      VAT@5% on Custom valuation, CID & Cess
      PAL@2.5% on Custom valuation, CID, Cess & VAT
      SRL@0.25% on Custom valuation, CID, Cess, VAT & PAL
      Commission@ 6% of sales (auction price)
      Handling charges (port, local transport, bank etc) @ SR 1 per kg

Pakistan has recently signed FTA with Sri Lanka. According to that Pakistan can
export potatoes 1000 tons duty free of which 2/3 rd during June-July and 1/3rd
during October-November. These are lean crop months and prices in the
domestic market are high. Therefore, no immediate relief from the FTA can be
expected. It may have some impact in the long run. In the short run local
production will continue to exert pressure on imports.

4.4 Mode of Sale and Price Calculations

Potato exports are made both on pre-agreed prices and also on consignment
sale basis. Exports to Afghanistan are on FOT basis. The FOB price per 10 kg
pack is estimated at Rs.97.25 or US$ 1.64. Details are given below:



                                                                            16
       -Cost of potato@ Rs.300/40 kg                     75.00
       -Cost of packaging (nylon sack)                   09.00
       -Labour charges (sorting, grading, packing,       07.00
        loading, unloading, transport to port)
       -Port handling charges                            06.25
       -Other incidentals                                01.00

       FOB                                               98.25 (US$ 1.64)

Sea freight to different destinations is given in Table 8 below:

Table 8: Sea Freight from Karachi to Different Destinations
Country               Port                Reefer 40 feet   Non-reefer         20
                                                           feet
Malaysia              Kuala Lumpur        1800             250
Malaysia              Penang              2400             250
Sri Lanka             Colombo             1700             300
UAE                   Dubai               1800             300
Russian Federation St. Petersburg         5000             2000
Romania               Bukharest           500              2700
Czech Republic        Czech Republic      5000             3000
Portugal              Lisbon              5000             2000

4.5 Export Constraints

       Product procurement from wholesale market
       Limited market (Afghanistan, Sri Lanka and Malaysia)
       Lack of market promotion
       No attempt for market expansion – access to new potential markets
       Lack of physical infrastructure (grading plants, CA storage)
       Transportation by non-reefer modes (inland & export)
       Lack of R&D support

There is need to consolidate position in the existing markets especially Malaysia
thru market promotion and consistently supplying quality produce shipped by
reefer containers, and also identify new markets. Sri Lanka annually imports over
60,000 ton and Malaysia over 100,000 tons potatoes. Pakistan’s current share is
60% and 14%, respectively. According to trade circles share in Sri Lanka can be
increased to 75% i.e. an additional 15,000 tons and in case of Malaysia up to
50% i.e. an additional 43,000 tons; both 58,000 tons additional.

East Europe and Africa Regions should be analyzed as potentially new markets
for export of potatoes from Pakistan. Following have been identified as target
markets:




                                                                              17
East Europe

         Russian Federation (150,000 tons annual imports)
         Portugal (250,000 tons annual imports)
         Czech Republic (75,000 tons annual imports)
         Romania (45,000 tons annual imports)

Africa

         Algeria (100,000 tons annual imports)
         Morocco (50,000 tons annual imports)
         Tanzania (40,000 tons annual imports)

4.6 Projected Potato Exports

The projected/targeted exports of potatoes from Pakistan over the next 5 years
are presented in Table 8:

Table 8: Projected Potatoes Exports from Pakistan

Year                         Volume (000 tons)           Value (000 US$)
2005/06                                             75                       8,000
2006/07                                            160                      25,000
2007/08                                            170                      30,000
2008/09                                            180                      35,000
2009/10                                            200                      40,000

The export projections are based on the following assumptions:

         Consolidation of position in existing markets thru strong market promotion
         Access to new markets thru delegations, promotions, FTAs, EHPs (where
         possible)
         Development of physical infrastructure like grading plants and CA storage
         facilities in the production areas.
         Shipment by reefer containers
         Tariffs in Sri Lanka
         Effective disease/pest management- potato wart (Synchytrium
         endobioticum), ring rot (Clavibacter michiganensis), nematodes
         (Globodera rostochiensis, Globodera pallida), Bacterial wilt (Ralstonia
         solanacerarum), Rhizoctonia soalani, Strepomyces scabies, Fusarium and
         Tuber moth.

The net gain in revenue will be higher at least by 10 percent than the
proportionate increase in volumes due to improvement in quality and
presentation of potatoes.



                                                                                18
Pakistan has to strive hard to enlarge its share in the existing and penetrate into
the new markets. It should be kept in mind that our competitors like Holland,
Peru, India and Australia are better organized in terms of product quality,
logistics and market promotion.

5. Development Strategy

5.1 Product Improvement

       Improvement in farm management practices leading to better quality and
       more yields
       Introduction of new cultivars based on targeted import markets
       requirements
       Introduction of potato cultivars suitable for processing like French Fries
       Production of seed potatoes for export (joint ventures)



5.2 Infrastructure Development

       Pack-house facilities
       CA storage
       Irradiation
       Cold chain system
       Establishment of Potato Research Centre at Okara for R&D support

5.3 Product Promotion

       Delegations
       Products display in international expositions
       Website
       International media
       Pamphlets, leaflets etc.

5.4 Facilitation

5.4.1 Awareness
   Seminars/workshops
   Printed matter (posters, leaflets)
   Media
   Videos

5.4.2 Training
   Training of trainers


                                                                                19
   Farmers/farm labour
   Pre-harvest contractors
   Exporters/traders
   Transporters
   Cold storages/processing plants operators
   Staff of line departments

5.5 Regulation

   National grades & quality standards
   Pre-shipment inspection/certification (national/international)
   Accreditation (national/international)
   HACCP




                                                                    20
   POTATO EXPORT
MARKETING PLAN 2008/09




                     21
      Pakistan Horticulture Development & Export Board
                      Potato Export Marketing Plan 2008
Preamble

Potato is one of the five main exportable commodities from Pakistan. It is also
cash crop fro the farmers. However, it has not been given due attention due to
which both potato production (especially cultivars) and export have not kept pace
with the changing international market requirements. There is hardly any physical
infrastructure available for efficient post-harvest management of potatoes. As a
result, exports have not established a clear trend. In fact, exports have declined
over the time. There is need to concentrate on improving product quality,
availability and post-harvest management in order to enlarge its exports.

Export Target

Current Export (2006-07) 160 thousand tons            US$ 25 million
Target (2008 crop)       180 thousand tons            US$ 30 million

Allocation of Export Targets (Additional)

Sri Lanka           10,000 tons
Malaysia             5,000 tons
Mauritius            2,000 tons
East Europe          2,000 tons
Africa               1,000 tons


Product Flow : Schematic View



   Pre-             Harvest            Infrastr                         Exports
  harvest           & Post-            ucture/         Marketi           US$ 8
                    harvest           logistics         ng                Mil



Improved farm    Proper curing      Reefer transport   Delegations/
management       Sorting            Mechanical grader Expositions
                 Proper packing     Radiation (trials) Access to new markets
                 (80 kg bag)                           Publicity (Media)
                 Proper transport
                 (Reefer)




                                                                                  22
Interventions

      Field Demonstrations
         - Improved curing
         - Disease identification
         - Sorting
         - Packing (80 kg bags)

      Good Agriculture Practices (GAP)
        - Awareness seminars on EUREPGAP
        - Training of trainers

      Infrastructure Development
         - Relocation of wholesale market (DoA Punjab)
          - Pack-houses with grading & packing facilities
         - CA storage
         - Refrigerated transport

      Export Facilitation
        - Farmers/Exporters contacts
        - Logistics (road/sea)
        - Institutional support (Plant Quarantine, ANF)

      Market Promotion
        - Delegation (East Europe)
        - Publicity (Malaysia, East Europe)

      Research and Development
      - Disease management
      - Irradiation to enhance shelf life
      - New cultivars trials including cultivars suitable for processing

      Value addition
      - French Fries
      - Dehydrated potatoes, potato flour

Market Based Interventions

Sri Lanka          Tariffs reduction thru an open FTA
Malaysia           Market promotion
East Europe        Delegation & market promotion




                                                                           23
GRADE AND QUALITY STANDARDS




                          24
                                   DRAFT STANDARDS

 CONCERNING THE MARKETING AND COMMERCIAL QUALITY CONTROL
               OF EARLY AND WARE POTATOES

       I.           DEFINITION OF PRODUCE

These standards apply to Early and Ware potatoes of varieties (cultivars) grown
from Solanum tuberosum L. and its hybrids to be supplied fresh to the
consumer in export markets. Early and Ware potatoes for industrial processing
being excluded.

"Early potatoes" means potatoes harvested before they are completely mature,
marketed immediately after their harvesting and whose skin can be easily
removed without peeling. Export subject to demand of the importer.

   II.         PROVISIONS CONCERNING QUALITY

The purpose of the standards is to define the quality requirements of early and
ware potatoes, at the export control stage, after preparation and packaging.

   A. Minimum requirements

   In all cases, subject to the special provision for each class and tolerances
   allowed the tubers must be:

   -        of normal appearance for the variety according to the producing area;

   -        intact, i.e. they should not have had any part removed nor have suffered
            any damage;

   -        sound; produce affected by rotting or deterioration such as to make it unfit
            for consumption is excluded;

   -        practically clean;

   -        covered with well-formed skin; In the case of Early potatoes a partial
            absence of the skin shall not be considered as a defect;

   -        firm;

   -        free of external or internal defects detrimental to the general appearance,
            the quality, the keeping quality and presentation in the package, such as:




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                   brown stains due to heat;
                   cracks(including growth cracks), cuts, bites, bruises or
                   roughness of skin (only for varieties of which the skin is not
                   normally rough);
                   green colouration;
                   deformities (not exceeding 5% in a lot);
                   grey, blue or black sub-epidermal stains;
                   rust stains, hollow or black hearts and other internal defects;
                   deep common potato scab and powdery potato scab;
                   superficial common potato scab i.e. scab spots in all must not
                   extend over more than a quarter of the surface of the tuber;
                   free of frost damage;
                   free of abnormal external moisture; i.e. adequately "dried" if they
                   have been washed;
                   free of any foreign smell and/or taste.

In Early and Ware potatoes no sprouting is allowed.

The development and condition of the Early and Ware potatoes must be such as
to enable them:

   -    to withstand transport and handling, and
   -    to arrive in satisfactory condition at the place of destination.

Each package must be free from waste, i.e. attached or loose earth, detached
growth shoots, extraneous matter.

B. Classification

The potatoes are classified into two classes defined below:

   i.        Class I

Potatoes in this class must be of good quality. They must be characteristic of the
variety. The tubers must be:

               whole, clean and sound,
               free from sprouts,
               free from foreign smell,
               free from external and internal defects,
               free from soil and other material,
               free from soft rots and dry rots, and
               free from admixture of varieties.




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The following defects (not exceeding 2% in a lot), however, may be allowed
provided these do not affect the general appearance of the produce, the quality,
the keeping quality and presentation in the package:

                 slight defect in shape,
                 slight defect in colouring,
                 slight rubbing,
                 slight bruising.

   ii.            Class II

This class includes potatoes which do not qualify for inclusion in Class I, but
satisfy the minimum requirements specified above. They must be reasonably
firm.

The following defects (not exceeding 5% in a lot) may be allowed provided the
potatoes retain their essential characteristics as regards the quality, the keeping
quality and presentation:

                    defects in shape,
                    defects in colouring,
                    traces of rubbing,
                    small healed cracks,
                    slight bruising, healed, unlikely to impair keeping qualities.

   III.           PROVISIONS CONCERNING SIZING

Size of the tuber is determined by square mesh. Tubers must have a minimum
size such that they do not pass through a square mesh as given below unless
otherwise demanded by the importer:

                     I.       35 x 35 mm for Early potatoes;
                     II.      45 x 45 mm for Ware potatoes.

There is no maximum size. However, uniformity in size (tuber diameter in mm in
each pack) is desirable as follows:

                     -     Extra large     Above 70mm
                     -     Large           55-70mm
                     -     Medium          40-55mm
                     -     Small           28-40mm

   IV.            PROVISIONS CONCERNING TOLERANCES

Tolerances in respect of quality and size shall be allowed in each package for
produce not satisfying the minimum requirements.



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   A. Quality Tolerances

For all classes tubers by weight not satisfying the minimum requirements shall be
allowed:
           - 5 per cent by weight of tubers of Early potatoes; and
           - 5 per cent by weight of tubers of Ware potatoes.

   B. Size Tolerances

Five per cent (5%) by weight of tubers not satisfying the requirements as regards
sizing and if sized, above and/or below the size range indicated.

   V.     PROVISIONS CONCERNING PRESENTATION

   A. Uniformity

The contents of each package must be uniform and contain only Early or Ware
potatoes of the same origin, variety, quality, colour of the skin, colour of the flesh
and size (if sized).

   B. Packaging

Early and Ware potatoes must be packed separately in such a way as to protect
the produce properly and to ensure adequate ventilation.

The materials used inside the package must be new, clean and of a quality such
as to avoid causing any external or internal damage to the produce. The use of
materials, particularly of paper or stamps bearing trade specifications is allowed
provided the printing and labeling has been done with non-toxic ink or glue.

In the case of Early potatoes, special packaging materials may be used in order
to better protect the produce during long distance transportation.

   C. Presentation

Early and Ware potatoes must be packed in appropriate packages. These may
include corrugated boxes, polypropylene net bag, jute sacks or other such
packaging as specified in the sale contract and allowed in the country of import.

Early and Ware potatoes are marketed by lot. A "lot" is a quantity of Early or
Ware potatoes which are uniform as concerns the following characteristics:
       -    packer and/or dispatcher;
       -    country of origin;
       -    variety;
       -    size (if sized)/class;
       -    type and net weight of package (if packed);



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         -        date of packing.

A consignment may consist of several lots.

   VI.        PROVISIONS CONCERNING MARKING

Each package must bear the following particulars, in letters grouped on the same
side, legibly and indelibly marked, and visible from the outside either printed on
the package itself or on a label secured to the fastening. If the labels are placed
inside the packages (string woven bags), it should be done in such a way that the
indications concerning marking are readable from the outside.

   A. Identification

         Packer         ) Name and address or
         and/or         ) officially issued or
         Dispatcher     ) accepted code mark

   B. Nature of produce

             “Early Potatoes” or "Ware Potatoes", if the contents are not visible from
              the outside.
             Name of the variety.

   C. Origin of produce

             Country of origin and, optionally, district where grown or national,
             regional or local place name.

   D. Commercial specifications

              -   Size expressed (subject to the uniformity rules, as minimum and
                  maximum size);
              -   Gross/Net weight;
              -   Optional indications: colour of flesh (for example, yellow or white),
                  colour of skin, shape of tuber (round or long) and cooking type (for
                  example floury or firm).

E. Official control mark (Optional)

VII. PHYTO SANITARY CERTIFICATION

The phyto-sanitary certificate is a pre-requisite. It is issued by the National Plant
Quarantine Department to the effect that the produce is fit for human
consumption. It will neither pose any health risk to human beings nor will transmit
any insect pest or disease to the importing country.



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Description: horticulture, which gardenhusbandry, fruit, vegetables and ornamental plant cultivation, breeding technology and production management methods. May accordingly be divided into fruit gardening, vegetable gardening and ornamental horticulture. Gardening term originally referred to the fence to protect the park in limited cultivation of plants within. Modern gardening has long since broken this limitation, it is still more intensive than other crops cultivation mode of operation. Agriculture and horticulture industry is an integral part in the planting. Horticulture and landscaping to enrich the human nutrition and transform the human environment is important.