SEED STUDY final daft of June 23 2014

Developing Marketing Strategy for Food Products in International Markets
(To Enable Market Access for Local Products under the Activity AA 4c)
A Study Conducted for:
EV-K-2-CNR AND BALTISTAN CULTURAL DEVELOPMENT FOUNDATION
Under the Framework of Social, Economic and Environmental Development (SEED)
By:
KARAKORAM NATURAL RESOURCES (PVT) LTD
GILGIT, GB
June 2014

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ACKNOWLEDGMENTS
This report was prepared with invaluable knowledge and ground support from a diverse group of stakeholders.
The authors are grateful to Ev-K-2 CNR and BCDF staff for furnishing relevant material on time and for
facilitating field visits. The report has benefitted immensely from the knowledge and views of project
participants and ultimate beneficiaries. Support and technical assistance provided by professional organizations
and experts in both public and private sectors are greatly appreciated. However,the contents of this report are
based on the findings of the study team and do not necessarily reflect the views or policies of Ev-K-2 CNR or
BCDF.

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LIST OF ACRONYMS
AKRSP Aga Khan Rural Support Programmme
ABC Apricot Business Coalition
ADP Annual Development Plan
ASF Agribusiness Support Fund
BCDF Baltistan Culture Development Foundation
CEO Chief Executive Officer
CKNP Central Karakoram National Park
DOA Department of Agriculture
EU European Union
FAO Food and Agriculture Organization
FEGs Farmer Enterprise Groups
FGDs Focus Group Discussions
GB Gilgit-Baltistan
GBLA Gilgit-Baltistan Legislative Assembly
GLOF Glacial Lake Outburst Floods
HKH Hindukush-Karakoram-Himalaya
INGO International Non Governmental Organization
KKH Karakoram Highway
KNR Karakorum Natural Resources
KPK Khyber-Pakhtunkhwa
LSO Local Support Organization
MARC Mountain Agricultural Research Center
MFL Mountain Fruit (Pvt) Limited
NGO Non Governmental Organization
CLA Protein and conjugated linoleic acid
R&D Research and Development
RPM Regional Programme Manger
SDP Sadpara Development Project
SEED Social, Economic and Environmental Development
TORs Terms of Reference
UC Union Council
UNDP United Nations Development Program
USAID United States Aid for International Development

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TABLE OF CONTENTS
ACKNOWLEDGMENTS .......................................................................................................................... 2
LIST OF ACRONYMS .............................................................................................................................. 3
EXECUTIVE SUMMARY ......................................................................................................................... 6
CHAPTER 1: INTRODUCTION..............................................................................................................7
1. BACKGROUND TO THE STUDY.......................................................................................................................................7
2. PURPOSE OF THE STUDY...................................................................................................................................................7
3. RESEARCH METHODOLOGY.............................................................................................................................................7
4. RESEARCH FRAMEWORK..................................................................................................................................................9
5. GEOGRAPHICAL FOCUS OF THE STUDY.................................................................................................................10
CAPTER 2: SITUATION ANALYSIS.....................................................................................................11
1. OVERVIEW..............................................................................................................................................................................11
2. SOCIOECONOMIC CONDITIONS...................................................................................................................................11
3. CROPPING PATTERNS......................................................................................................................................................12
4. FOOD SECURITY VS COMMERCIALIZATION.........................................................................................................12
5. BIODIVERSITY......................................................................................................................................................................13
6. PRODUCTION AND TRADE ESTIMATES..................................................................................................................14
7. ACCESS TO PUBLIC AND MARKET SERVICES.......................................................................................................14
8. KEY CHALLENEGES.............................................................................................................................................................15
8.1 Specialization or Improvisation?.............................................................................................................................16
8.2 Small Units of Production...........................................................................................................................................16
8.3 Poor Crop Management ...............................................................................................................................................16
8.4 Low Volumes and Lack of Uniformity and Quality...........................................................................................16
8.5 Lack of Research and Access to New Technology............................................................................................16
8.6 Higher Failure Risks ......................................................................................................................................................17
8.7 Poor Infrastructure........................................................................................................................................................17
8.8 High Postharvest Losses..............................................................................................................................................17
8.9 Weak Governance...........................................................................................................................................................17
9. POTENTIAL EXPORT PRODUCTS...............................................................................................................................18
CHAPTER 3: MARKET ANALYSIS......................................................................................................19
1. OVERVIEW..............................................................................................................................................................................19
2. MARKET CHARACTERISTIC...........................................................................................................................................19
2.1 Market Access...................................................................................................................................................................19
2.2 Growth Trends.................................................................................................................................................................19
2.3 Market Actors...................................................................................................................................................................19
2.4 Support Actors.................................................................................................................................................................20
3 EXPORT MARKET STRUCTURE....................................................................................................................................21
3.1 Market Segments ............................................................................................................................................................22
3.2 Price Structures...............................................................................................................................................................23
4 POTENTIAL EU BUYERS....................................................................................................................................................23
4.1 Producers/ Processors.................................................................................................................................................23
4.2 Retailers..............................................................................................................................................................................23
4.3 Brokers/ Agents ..............................................................................................................................................................24
4.4 Traders................................................................................................................................................................................24
5 OTHER USEFUL RESOURCES..........................................................................................................................................24

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6 FINDING TRADING PARTNERS  ..................................................................................................................................24
6.1 Interesting Trade Fairs For Specialty Foods.......................................................................................................24
6.2 On-Line Company Databases.....................................................................................................................................25
6.3 Business-To-Business Sources..................................................................................................................................25
7 PACKAGING AND LABELING...........................................................................................................................................25
8 EXPORT LOGISTICS.............................................................................................................................................................25
8.1 Export Companies ..........................................................................................................................................................25
8.2 Key Steps in Export........................................................................................................................................................26
9 OPPORTUNITIES AND THREATS.................................................................................................................................27
CHAPTER 4: STRATEGIC PLAN .........................................................................................................28
1. OVERVIEW..............................................................................................................................................................................28
2. STRATEGIC FRAMEWORK..............................................................................................................................................28
2.1 Vision....................................................................................................................................................................................28
2.2 Mission ................................................................................................................................................................................28
2.3 Strategic Objectives.......................................................................................................................................................28
3. THE FUTURE OF MOUNTAIN AGRICULTURE.......................................................................................................29
3.1 Enhancing Food Security.............................................................................................................................................29
3.2 Commercialization, Specialization and Branding.............................................................................................30
3.3 Maintaining Resilience.................................................................................................................................................31
4 PRIORITIZATION OF EXPORTABLE PRODUCTS.................................................................................................32
4.1 Dried Apricots..................................................................................................................................................................32
4.2 Apricot Culture ................................................................................................................................................................33
4.3 Apricot Economy.............................................................................................................................................................33
5 APRICOT VALUE CHAIN....................................................................................................................................................34
6 NEXT STEPS.............................................................................................................................................................................35
7 GOVERNMENT POLICY IN HORTICULTURE MARKETING..............................................................................35
CHAPTER 4: BUSINESS PLAN FOR 2014..........................................................................................36
1. COMPANY SUMMARY........................................................................................................................................................36
2. COMPANY OWNERSHIP...................................................................................................................................................36
3. TARGET MARKET................................................................................................................................................................36
4. MARKET SEGMENT............................................................................................................................................................36
5. BUSINESS DESCRIPTION.................................................................................................................................................36
5.1 Business Objectives.......................................................................................................................................................37
5.2 Product................................................................................................................................................................................37
6. COMPETITION AND MARKETING STRATEGY.....................................................................................................37
7. TARGET MARKET................................................................................................................................................................37
8. SUPPLY LOGISTICS.............................................................................................................................................................38
8.1 BCDF.....................................................................................................................................................................................38
8.2 KNR.......................................................................................................................................................................................38
9 SCALING BUSINESS OPERATIONS...............................................................................................................................38
CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS...............................................................40
1. STUDY FINDINGS.................................................................................................................................................................40
2. RECOMMENDATIONS........................................................................................................................................................41
ANNEXES ...............................................................................................................................................42
ANNEX A: EU IMPORT STANDARDS FOR DRIED PRODUCE..................................................................................43
ANNEX B: PURCHASE AGREEMENT....................................................................................................................................55

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EXECUTIVE SUMMARY
The governments of Pakistan and Italy have mandated the Ev-K-2 CNR Committee (Bergamo, Italy) to
implement the project “Social, Economic and Environmental Development” (SEED). The five–year project
started on November 11, 2009, and aims at supporting the development of Central Karakoram National Park
(CKNP),located in the northeast of Pakistan’s northernmost province of Gilgit-Baltistan (GB), as well as foster
social, economic and environmental development in the Park’s buffer zone.
This study, “Marketing Strategy for Food Products in International Markets” contributes to activity AA 4c,
under the SEED Framework. Its purpose is to identify promising products from and around CKNP and its buffer
zone, and map out marketing strategies for exporting them to international markets.
The context is remote and isolated mountain valleys of Gilgit-Baltistan (GB), a semi-autonomous province at
the junction of Pamir, Himalaya and Karakoram mountain ranges. Poverty and population pressures are forcing
these mountain communities to over extract,under manage and under value their natural resources.
Physical isolation, compulsions of food security (self-sufficiency), and agro-ecological conditions have
combined to create a complex mountain farming system that is resilient but subsistence-oriented. Mountain
farming in GB can be characterized as small-scale, traditional and low tech. Too many varieties, too little
output, high post-harvest losses in perishable products, and lack of technical and institutional capacities and
under developed markets are some of the key challenges for market development.
Over the last three decades,improvements in road access and information technology have increased GB’s
exposure to market forces. As a result, GB’s agriculture is changing through trial and error, and without any
research,technical guidance or planning. The first challenge for the stakeholders of GB agriculture is to come
up with a shared vision of agriculture, and a sector strategy for horticulture. The opportunities for export will
increase manifold if the proposed Kashgar to Gawadar Economic Corridor project in implemented by the
governments of China and Pakistan, as planned.
The long term strategy should take a number of considerations into account and try to balance: 1) food security
needs, 2) the imperative to ‘modernize’ mountain agriculture for accessing new markets with high value food
products and, 3) maintaining the resilience underlying the resource base through biodiversity and crop diversity.
The implementation of this long-term strategy can begin with apricots, one of the most well established and
widely cultivated fruits in GB. There are many advantages in selecting apricots, especially dried, as a flagship
export product from GB. Almost all farmers grow them, so there are significant production volumes with high
post-harvest losses, which can be saved through good processing practices. Dried apricots value chain is already
much ahead of other products, and small quantities are already being test-marketed and accepted in the Western
markets.
A major issue is that local apricot cultivation is dominated by too many traditional varieties that have little
market value in the current bulk markets. However,this weakness can be turned into a business opportunity by
targeting specialty food industry, especially the ingredients segment in EU. The marketing strategy proposed in
this report recommends a range of product development initiatives, including propagation of best local varieties
as ‘natural’ and ‘un-tempered’ food ingredients, as well as growing globally selected well known varieties in the
natural environment of GB.
To test this hypothesis, KNR has contacted a food industry buyer in Italy, Noberasco,Pvt, Limited, and
negotiated and secured an import demand for 2 containers of dried apricots. The purpose is to initiate an export
business, with Baltistan Culture Development Foundation (BCDF) in the lead, The basic idea is to learn from
this experience, and forge a cooperative and collaborative long-term partnership with a long-term buyer, as a
practical approach to developing apricots and other high value sectors in GB, both as a socioeconomic
development driver and a culture based-conservation tool.

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CHAPTER 1: INTRODUCTION
1. BACKGROUND TO THE STUDY
EV-K-2-CNR is working in CKNP buffer zone since 1987 and providing specialized scientific support to key
sectors,with a mission to contributing to sustainable development of this area. Under the SEED Framework, it
has established a fruit-processing factory in Skardu Town for processing high value horticultural products,
which is being implemented by BCDF.
This study, “Marketing Strategy for the Food Productsin International Markets” contributes to activity AA 4c,
under the SEED Framework. Its purpose is to identify promising products and map out marketing strategies for
accessing local, national and international markets, for selected products from and around CKNP.
2. PURPOSE OF THE STUDY
Specifically, the consultant was asked to develop a practical marketing and business development strategy for
BCDF, the implementing partner for SEED Project in Baltistan. The focus of the study is dried apricots, dried
apples, apricot oil and black currents.
In order to understand the potential for export, the study looks at production and marketing processes,the so-
called ‘value chain’ from producer to export destination. It then considers various supply/demand side issues. It
provides data on land use patterns; production and trade estimates, marketing trends, potential export markets
and export standards and procedures. As a value added, the research has actually identified a buyer of dried
apricots in Europe and secured demand for 30 ton of Turkish dried apricots to be delivered by November 2014.
The paper concludes with a set of recommendations for expanding the volume of exports and product mix
The detailed objectives and scope of the study are given in the Terms of Reference (TOR) provided in Annex 1,
and summarized as following:
 Assess current situation, including cropping patterns and farming practices,production and trade estimates,
supply /demand constraints, marketing opportunities, intermediaries and potential buyers in different export
markets, define product attributes, including packaging, transportation, documentation, traceability and
promotion requirements, and propose a pricing policy that covers costs and ensures a reasonable profit for
producers and suppliers
 Devise a strategy for the marketing of selected high-potential products, especially dried apricot, apricot oil
and current, in the international market, which are produced at food processing factor in Skardu, executed
by BCDF, and other sources
 Enhance knowledge and expertise of local producers and suppliers of the food safety requirements,
regulation, consumer preferences,presentation, positioning and promotion of local products in export
markets
 Make recommendations for developing an export-oriented production, processing and marketing system for
high value products, and identify gaps and remedial actions to support an export sector in GB.
3. RESEARCH METHODOLOGY
At the planning stage of the study, the consultants held a series of consultative meetings with the staff of SEED
Project at Islamabad, to discuss the key expectations from this study, and to get clarity on the objectives, scope,
organization and deliverables of the study. Soon after the signing the contract, the research team convened a
meeting in Gilgit to fine-tune the research methodology, determine data needs and identify sources of literature
and data sources as well identify the areas where data gaps existed. The team also contacted with the Chief
Executive Officer (CEO) of BCDF, and scheduled field visits.

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During field visits to Skardu, the team met with BCDF staff and visited the processing facilities. The team also
met with the Regional Programme Manager (RPM) of Aga Khan Rural Support Programme (AKRSP),and his
market development team, as well as the staff of USAID-funded Sadpara Development Project (SDP),
implemented by AKRSP. During the same visit, the research team participated in a workshop hosted by
AKRSP/ SDP for Farmer Enterprise Groups (FEGs) and local traders of fruit and vegetables. The daylong
meeting provided an opportunity to interact with primary stakeholders and to assess their current activities,
capacity and constraints and opportunities, in production, value addition and marketing of horticultural products.
Since BCDF, AKRSP and SDP were all engaged in similar activities, the participants of the workshop agreed to
form coordination group around apricot production, processing and marketing, called Apricot Business Coalition
(ABC). The immediate objective of ABC would be to take apricot as the flagship product from Baltistan, and to
work together to export about 30 ton in 2014, and use that learning to develop other high potential products,
such as apricot oil, dried cherries and dried apples.
During the field visit, the research team held Focused Group Discussions (FGDs) with the relevant stakeholders
including officials in the Department of Agriculture (DoA),the field-based staff of Mountain Agricultural
Research Center (MARC) in Skardu, progressive farmers,women and private traders and business leaders.
In addition to these consultations, the research team has reviewed existing reports and collected data available
with AKRSP,DoA,SDP, BSDF, as well international literature on food safety,certification regimes, export
procedures, and requirements of international importers. The research methodology used for this report is
summarized below.
Figure 1: Research Methodology
Study Planning
 Fine-tuningtheobjectives, contentsand structure of the reportin
closeconsultation with theclient
 Stocktakingofexistingsources ofdataon production and
marketingof key horticultural products
 Consultations with expertsand key informants to select the
appropriatetools and methods fordatacollection
 Designing of checklists and questionnairesfor datacollection
Data
Collection
Secondary Sources
 Published and unpublished dataof DoA,
AKRSP, GBER (World Bank), BCDF
 Various Research Studies and Policy
Documents
 Online research on dry fruit marketing
trends, packagingand shipment
procedures
 Presentations prepared by SPD and AKRSP
staff
 Reports on international standards and
certification regimes
PrimarySources
 Discussions with and data collection from
AKRSP, DoA, MARC, BCDF, SDP on key themes:
i) socioeconomic conditions,ii) horticultural
Production and Processing, & iii) Horticultural
Marketing
 Focus group discussions withexperts, FEGs,
traders, and transporters
 Rapid investigation ofwholesale market for
dry fruits and nuts
 Telephone and email interactions with
international buyers, and logistics experts
Synthesis of the Report
 Analysis and tabulation of data from primary and secondary
sources
 Preparation of draft report for the review of client
 Preparation of Final Report incorporatingthefeedback and
comments received from SEED

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4. RESEARCH FRAMEWORK
The research framework tries to capture present baselines of what products are available for export in the
required quality and quantity, assess future potential and suggest all the steps that it takes to reaching export
markets with initial products. The questions are designed to seek answers needed to achieve the study
objectives.
Table 1: Research Framework: Objectives of the studyand pertainingresearch Questions/Instruments
Objective 1: Assess demand/supplysituationfor national andinternational marketingof ondriedapricot, apricot oil andcurrent, producedat food
processingfactorin Skardu, executedby BBCDF, andother sources
#. Research Questions Research Tools
1.
What are the current estimates onproduction, wastage,and
surplus volumes available for marketing?
Reviewof farmingpractices, varieties/ cultivars currentlyused, access to
technology, management practices, productivitylevels, qualityissues
2.
What facilities, expertise andservices are available forproduct
development andexport processing?
Reviewof post-harvest methods andsurvey of processingfacilities and
technologies used, andassessinggaps
3.
Who are the keymarket players in apricot trade, andwhat are
their business strategies, experience andprofitability?
Quantitative andqualitative assessment ofthe apricot value chain,andsurvey of
traders, promoters andservice providers.
4.
Who are the mainproducers, suppliers andservice providers of
dry fruit chains in CKNP buffer zone?
Stakeholders analysis, surveyresearch, includingstakeholders interviews,
survey questionnaires,collectionof data on production, wastage, andtrade
5.
What are the gaps/ missingservices in thesupplychainof
horticultural products?
Reviewof technical issues at supply/demandside, includingprocessing
facilities, standards, packagingandmarket linkages
Objective 2:Devise a strategy for themarketingof selectedhigh-potential products in national andinternational markets
6.
What, andin what quantityandquality, are export-ready
products available in the study area?
Estimatingsurplus volumes, assessingquality standards, andidentifying
services providers.
7.
Who are the international buyers ofGB products, what product
attributes they arelookingfor, andwhat are essential export
requirements for foodproducts?
Identifyingpotential buyers andadaptingtotheirdemandandrequiredproduct
attributes
8.
Howto enhanceandretainthe value ofexport products for
primary stakeholders?
Findingconvergences amongdevelopment, equityandconservation goals
9.
Howto brandandmarket GB products in premiummarkets
nationally andoverseas?
Exploringproduct development,brandingandcertificationoptions
10.
Why products andspecializations arerelevant andimportant for
CKNP buffer zone, in thelong-term?
Developingsmart marketingoptions, targetingethical markets andspecializing,
based on natural andhuman advantages
Objective 3:Enhance knowledge, expertise, andcollaborationamongall primaryandsupport actors in the value chain.
11.
What are the baselines andlearningcarves in terms of technical
andinstitutional capacityforsupportingan export-orientated
cottage industry?
Reviewdata andliterature, andqualitative assessment ofcapacities. Reviewof
past, present andongoinginitiatives onhorticultural development and
marketing. Short case studies onlessons learned.
12.
Howto promote a participatory andholistic planningapproach,
integratingtechnical knowledge with enablingpolicyand
transparent markets?
Brief reviewof key development support (NGO & Gov) agencies andprimary
stakeholders (market actors, farmergroups andtraders’ associations), andtheir
mandates andworkingmethodologies.
13.
Howto increase the size of the cake for all stakeholders? Identifyingstrategies forgeneratingmarketable surplus anddevelopingsuitable
high quality natural products forpremiummarkets
14.
Howto incentivize collaborationacross technical sectors,
support market actors, andprimary stakeholders?
Exploringways in which primarystakeholders benefit fromcollaboration
Objective 4:Makerecommendations for developingan export-orientedproduction, processingandmarketingsystem sector in GB.
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What are GB’s long-term comparative advantages, andwhere
apricots shouldrank in the product mix?
SWOT analysis
16.
Howspecializationin high value products canbe achieved? Criteria for selectingandspecializingin a fewhigh potential products.
Developinga MountainGAP
17.
Which market segments best match GB’s natural andhuman
advantage?
Exploringmethods toenteremergingethical markets forcertified
natural/organic andethicallyproducedproducts
18.
Howto link up with knowledge andtechnology leaders? Suggesting strategies for networkinganduse of social media
19.
Howto create an enablingpolicyenvironment? Outliningpolicyguidelines andsector strategies forlegislators andsupporting
policy dialogue amongstakeholders.Capacitybuildingmethods forbusiness
andrights associations for advocacy
20.
Howto fundparticipatoryR&D? Exploringfundingstrategies for innovativeandcollaborative R&D projects

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5. GEOGRAPHICAL FOCUS OF THESTUDY
The primary focus of the study is CKNP and its buffer zones, a large area stretching over 72,000 sq. km. The
study aims to contribute to maintaining ecological health of the Park area and to improve socioeconomic
conditions of the communities living in and around CKNP. However,to generate sufficient volumes for export
and support and sustain a robust export-oriented cottage industry in the region, the study looks at the entire GB
as a high-potential economic area. This approach is also necessary to internalize the benefits of the proposed
Kashgar-Gawadar Economic Corridor planned by the governments of China and Pakistan.

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CAPTER 2: SITUATION ANALYSIS
1. OVERVIEW
This chapter briefly describes the context of the study area, including its socioeconomic conditions and potential
for adopting modern food production and marketing systems. It takes a quick review of how mountain
agriculture is changing, what are the driving forces,and provides baselines for current production and trade
volumes, and access to public sector and market services.
2. SOCIOECONOMIC CONDITIONS
The context is a beautiful mountain environment, but people live under very harsh physical and socioeconomic
conditions, and are marginalized in almost every respects,and least served by market and public services.
Table 2.1 explains the overall socioeconomic situation of the region on the basis of a few economic indicators.
The per capita income of the population of the region as a whole is roughly half of the national average. There is
considerable disparity in incomes among the districts. The analysis shows that per capita income is much higher
in the Gilgit district than rest of the districts, while the per capita income in the Diamer district is only half of the
Gilgit district.
In some social indicators, such as education and gender equality, GB may be ahead of other comparable regions
in mainland Pakistan. Intra-GB educational differences are now closing, except in Diamer, where overall and
particularly female literacy is very low.
Table 2.1: Per Capita Incomes, Poverty, and Household Consumption-2008
The workforce of GB is young and
educated,by unemployed. Tourism,
which was a source of employment in
the CKNP area,has declined due to
deteriorating security situation in the
country, especially after targeting of
international expedition team at Nanga
Parbat base camp in 2012.
Major food crops include wheat, maize,
barley and potatoes. Horticultural crops
include apricot (diverse cultivars/ varieties and most widely grown), potatoes, apples, cherries, almonds,
walnuts, and a host of others. Almost all of these crops are traditional crops, diminished in genetic prowess, but
well adapted to the unique mountain ecology of GB.
Table 2.2: Land Utilization in Gilgit-Baltistan (000 ha)
Land resources in GB are limited. Only
2% of more than 72,496 sq km area is
cultivable, of which about 1% is
currently under cultivation and another
1 % is still barren and it can be made
available for agricultural production.
Approximately 4% of the GB area is
under natural forests and, 53% under
rangeland. Agro-forestry and horticulture (6%) are other important uses of the land. The rest of the land area is
rock and under glaciers and permafrost. Tables 2.2 and 2.3 give a general overview of land utilization in Gilgit-
Baltistan.
Districts Nominal
PCI
Poverty
(HCI)
HH Expenses (Rs)
Gilgit-Baltistan 29,426 25 161,613
Gilgit* 41,334 18 196,112
Ghizer 30,366 29 147,933
Astore 25,183 35 175,029
Diamer 21,546 24 126,357
Skardu 30,339 17 179,706
Ghanche 27,790 35 115,353
*Includes Hunza-Nagar district. Source: SESGBC 2008
Type of Land Area %
Mountains/Lakes/Rivers/Glaciers 4,810 66
Forests:a) protected (1%), b) Private (3%), c) social Agro/Farm (5%) 646 9
Rangeland 1,646 23
Cultivated Area 58 1
Cultivable barren lands 90 1
Total 7,250 100
Source: Background paper on Agriculture and food security NASSD, 2003

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The average cultivable land owned by households in GB is about 0.73 ha, and diminishing through division and
sub-division through generations. Agricultural land is used for cultivation of food and fodder crops; fruit and
vegetable, particularly seed potatoes; agro-forestry and livestock rearing. Urban development is also putting
pressure on cultivated land. Given natural limitations, further development of land is difficult and expensive,
thus the focus needs to be on increasing productivity and value-addition in agriculture.
Mountain farming systems have evolved to ensure food security by maximizing, regulating, preserving, and
storing food supplies, through trial and error. Diversity and spreading maturity timing of crops was centralto
reducing postharvest losses and cost of labor, processing and storage.
3. CROPPING PATTERNS
Subsistence, mix farming is the most common economic feature of GB. Most of the population lives in
transitional or single cropping zones, where crop production is exposed to early and late frost, spring drought
and late summer rains.
Since the opening of the Karakoram Highway (KKH), many new varieties have been introduced. UNDP,FAO,
DoA and AKRSP have introduced commercial varieties of apples, cherries and apricots in the region. Though,
the exotic varieties have increased production per unit of land and the nutritional value, but decreased the
number of disease resistant indigenous varieties. Introducing new varieties/ cultivars is deemed necessary from a
commercial point of view, but their success depends on management capacity of farmers and support services.
Specialization in both traditional and new products is possible through R&D and access to technology and new
markets.
Considerable scope exists for introducing new high value cultivars, across all fruit and vegetables. This is
needed to get to the next level of mountain horticulture by specializing in high value products and producing
specialty crops for premium export markets. However,this is a slippery slope, as preserving the genetic
diversity of local varieties, is equally important.
A useful approach would be, selected breeding of local cultivars for commercial purposes, and highlighting their
natural attributes for marketing purposes. These options are discussed in more detailed in the section on
marketing strategy.
Table 2.3: Land Utilization for variouscategories of Agricultural Crops (ha)
District Wheat Maize Barley Buck wheat Potato Fruits Vegetables
GB 18176 17719 4875 947 8421 20901 6526
Gilgit 4122 4334 218 24 4256 2835 1306
Ghizer 2250 3333 409 72 679 3260 785
Astore 652 589 158 85 882 1337 1651
Diamer 5726 8046 73 0 126 2970 122
Skardu 4247 1417 2259 245 1510 7388 1651
Ghanche 1179 0 1758 521 968 3111 1011
Source: Agriculture Statistic 2007
4. FOOD SECURITYVS COMMERCIALIZATION
GB is a net food deficit area and the population depends on subsidized wheat from the federal government.
Recently, when the government decided to remove this subsidy, people reacted strongly, forcing the authorities
to step back, for now. This is a critical issue for the people, as wheat subsidies were given to encourage small
farmers to shift to commercial crops, which they have done at the cost of reducing their food crops. People are

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now dependent on subsidized wheat for 70% of their consumption needs. So should they go back to growing
food crops again, or should they grow and sell commercial crops, and use the money to buy wheat?
Commercialization is already happening, but in a haphazard manner. At the policy level, the provincial
government lacks a vision for mountain agriculture. More discussion on what ought to be the best compromise
and way forward in the section on strategy.
Table 2.4 below presents the shares of various crops in the overall household farm income. The Agriculture
Sector had a share of 54 percent in the farm sector that includes agriculture, forestry and livestock sectors.
Overall share of farm income in household earnings is roughly the same, 50%. This explains that the livelihoods
of the population of the region depend greatly on the earning from the Agriculture Sector. The share of farm
sector in overall household income is believed to be less than 50% and declining.
Table 2.4: Share of Constituentsin Farm Incomes 2008
Constituents Gilgit-Baltistan Skardu Ghanche Gilgit Ghizer Astore
Income from Agriculture 57,069 77,186 56,226 72,553 32,520 38,351
Income from Forest 12576 18187 13335 9389 10884 9841
Income from Livestock 48229 59795 42003 36259 43901 68316
Total Income 117,873 155,168 111,564 118,201 87,306 116,508
Source: SESGBC 2008
Table 2.5 explains share of cereals and horticulture in household farm income. As can be seen,the share of
horticulture is 83% overall in GB, and 78% and 87% in Skardu and Ghanche districts, which form the buffer
zone of CKNP.
Table 2.5: Percentage Share of Cereals and Horticulture
Table 2.6 shows share of income of different horticultural
products. The share of income from fruits is 60 percent in GB,
followed by potatoes. Moreover, the share of incomes from
fruits is overwhelmingly higher than that of earned from
vegetables and potatoes. Horticulture appears to be emerging
as a key cash earner in GB, with highest share,accounting for
83 percent of the entire household farm incomes earned from
the horticulture. Across the district this percentage share ranges
from 76 percent in the Ghizer district to 91 percent in the
Astore district.
Table 2.6: %Share of Constituents in Horticulture Incomes
5. BIODIVERSITY
The mountain ecology of GB provides a numbers of goods and
services to the inhabitants of the area. This includes forests,
water and agriculture products, and tourism recreational
opportunities. The various zones of GB have distinct flora and
fauna, which is important for the economy of whole country.
The area is native to some of the rare flora and fauna. Others
species are brought into these areas by traders, missionaries
and invaders. All the introduced animal and plant species
surviving in the area for centuries now possess the genetic
basis for tolerance to extreme climate, diseases and pests and
Region/District Agriculture Constituents
Cereal Horticulture* Total
Gilgit-Baltistan 17 83 100
Gilgit 11 89 100
Ghizer 24 76 100
Astore 9 91 100
Diamer 47 53 100
Skardu 22 78 100
Ghanche 13 87 100
* Potato, Vegetable and Fruit Source: SESGBC 2008
Region/District Horticulture Constituents
Vegetable Potato Fruits Total
Gilgit-Baltistan 11 29 60 100
Gilgit 12 37 51 100
Ghizer 21 11 68 100
Astore 26 52 22 100
Diamer 10 16 74 100
Skardu 7 31 62 100
Ghanche 6 25 69 100
Source: SESGBC 2008

14
represent a unique genetic base for future horticultural development.
The agro-ecology of GB is highly suitable for production of a number of deciduous fruits and vegetables. Fruit
production has been a vital source of food security in the region since ancient times. Fresh and dried apricots,
apples, grapes,almonds and walnuts have been the main source of nutrition for the population mainly in winter
months when food is normally in shortage. GB also lies close to the two major centers of fruit diversity, namely,
Central Asia and China. The ancient trade routes from China to India passed through GB, and traders,traveling
on the ancient Silk Route, originally introduced many of the region’s present fruit species here. Fruit crops have
been grown here for centuries and now possess the genetic basis for tolerance to extreme cold, heat, frost,
drought, diseases and pests.
6. PRODUCTIONAND TRADE ESTIMATES
Table 4.8 below gives estimated volumes of major fruits crops produced and traded. These are 2007 figures, but
still convey a picture of an economy in transition. It shows more than one third of production going waste,and
more interestingly, a larger proportion than consumption being sold. In the dried category, apricot is the sole
product marketed. The current figures may be considerably higher for marketed.
Table 4.8: Fresh Fruits production and utilization in GB (Tons)
Fruits Production
Consumption
Wastage
Marketed
Fresh Dry Fresh Dry
Apricot 108588 2444 3514 42273 2941 5149
Apple 19054 9120 0 3968 5809 0
Grapes 6413 3059 0 1362 2203 0
Pears 2579 1285 0 594 696 0
Peaches 3308 2016 0 999 294 0
Pomegranate 4287 1673 0 885 1729 0
Cherry 2256 1110 0 362 757 0
Mulberry 9092 1154 226 5144 0 174
Source: JICA Study on Horticultural productsin GB
Apricot is the most widely grown traditional crop with over 60 varieties, but presently only a handful of
varieties are marketed, which raises the question, how to utilize the wastage and add value to the rest of the
varieties. Apricots are an important food staple especially in Baltistan and Hunza, and many new products can
be made for local market. Apple is also significant, presently only marketed fresh, but also holds potential as a
dried item. Other crops have also captured local and down country markets.
7. ACCESS TO PUBLIC ANDMARKET SERVICES
The farmers of GB are small landholders and lack resources and capacity and need coordinated assistance,
market facilitation and good research in increasing the productivity and profitability of their produce by
adopting new technologies and accessing new markets.
During the last 30 years, severalgovernment and donor funded projects have been implemented in this region.
Under these projects, trails on introduction of new technologies in crop production, processing and marketing,
and training of the farmers in use of these technologies have been conducted. This has yielded some important
successes. For example, the introduction of potato seed production technology by FAO in early 1980s has
established seed potatoes as a major cash crop in GB. The investment from AKRSP in Cherries and dried
apricot value chain development helped the farmers to link with high-end domestic and international markets.
Despite these successes in introduction of technologies, enormous space for improvement in agriculture
management practices at farmer level exists across all districts of GB.

15
There is limited potential for developing more land and water resources for agricultural production. Also, the
use of chemical fertilizers and pesticides cannot be sustained beyond certain limits due to economic and
environmental reasons. In this situation, the only option available is to depend more heavily on in-situ research
and use of appropriate advance technologies in organic production and biological pest-control methods, to bring
about rapid improvement in local mountain horticulture.
However,such technological change in the area can only be brought about through participatory research and
development (R&D) efforts made through public sector institutions. Private entities like AKRSP can contribute
to such efforts in GB, to some extent, but eventually it has to be the more permanent government institutions.
The adoption and rational use of new technologies and market services require continuous flow of information,
proper infrastructure, quality inputs and regular capacity building of potential farmers and entrepreneurs,
including women and youth.
The information given in Table 2.9 shows the number of mother fruit nurseries managed by DoA and MARC.
Table 2.9: District-wise Horticulture Nurseries and Seed Farms
Districts Fruit Nurseries (#) Area (ha) SeedFarms (#) Area (ha)
GB 49 130.97 11 63.70
Gilgit 6 10.50 2 11.00
Hunza-Nagar
Ghizer 5 7.75 3 6.00
Diamer 10 6.85 3 21.00
Astore 4 2.65 0 0.00
Skardu 17 92.75 2 41.25
Ghanche 7 69.65 1 12.45
Source: DoA Presentation, 2013
Table 2.10 shows the scale and range of research and extension facilities maintained by department of
agriculture at district level. The numbers of these facilities are much smaller than the requirement and the
technology used in the facilities is obsolete and does not cater the needs of the current day. During the field
visits, it was observed that majority of the facilities are not utilized or underutilized due to capacity and funding
issues.
Table 2.10: District-wise technical Facilitiesin Department of Agriculture.
Districts
Extension
Offices
TC Lab Food Processing Soil Lab IPM lab SeedProcessing
GB 7 3 2 1 1 1
Gilgit 1 1 1 0 1 1
Hunza-Nagar* 1 0 0 0 0 0
Ghizer 1 1 0 0 0 0
Diamer 1 0 0 0 0 0
Astore 1 0 0 0 0 0
Skardu 1 1 1 1 0 0
Ghanche 1 0 2 0 0 0
Source: Directorate of Agriculture, Gilgit
8. KEYCHALLENEGES
The state of agriculture described in the preceding sections show that traditional mountain agricultural is
exposed to new forces of technology and markets, and it is changing. The construction of KKH has opened a
new era of commercialization of agriculture in GB. Improved road access has played a major part in the trade of
agriculture commodities within the region in addition to linking it to the down country markets. Many more
opportunities than KKH are expected on the proposed Economic Corridor.

16
However,there are many issues in the supply chain, which need attention in crafting a futuristic strategy. These
are summarized as following:
8.1 Specialization or Improvisation
The key question is this: should farmers try to market whatever they are already producing, or should they work
back from the market demand and specialize in a few specialty products based on their comparative advantage?
It may well be that if there are regular flights into the area,or a reliable road transportation system, such as the
up-gradation of KKH,which is underway, or a rail link, as proposed under the economic corridor, farmers
should switch to off-season strawberries and asparagus,rather than dried apricots or bulky potatoes. At the
moment, no one has answers to these questions. In the meantime, there is an opportunity to adapt to market
demand, at least in one or two products. Once the market linkages are created,the market forces will determine
what areas to specialize in.
8.2 Small Units ofProduction
In GB, landholdings are small, and farming decisions are made on many household considerations, such as
growing food, fiber, fodder and fruit and vegetable crops for own consumption, yet also producing small
quantities of commercial crops to earn cash income. This means very few products that are available in
marketable volumes.
8.3 Poor Crop Management
The farmers in GB currently lack modern knowledge regarding crop husbandry and they use their traditional
low-input methods even for new varieties introduced, which leads to lower yields and poor quality in crops
produced. In general, local production suffers from the following problems:
 Low productivity resulting from use of traditional farming practices
 Little or no use of production inputs and improper use of farmyard manure
 Lack of knowledge of crop pests and resultant poor pest management practices
 Allowing weeds to grow between the main crops to use it as fodder for animals
 Under or over irrigation, resulting from poor knowledge of crop water-requirement
 Wrong harvesting methods which substantially reduces the quantity and quality of produce, and
 Crop-livestock competition: open grazing of animals.
8.4 LowVolumes and Lack ofUniformity and Quality
The above requirements leave very little space for growing commercial crops. In addition, the bulk of the
horticultural crops produced are from traditional mixed plantations, which cannot be marketed,at least not in the
current undifferentiated markets. After grading, the actualvolumes of a particular variety may not be there to
meet large orders, and to cater for regular demand. One way of dealing with this problem is pooling and grading
of market bound products at accessible locations, which requires planning and creating market infrastructure and
services, such as mandis at UC level.
8.5 Lack ofResearch and Access to NewTechnology
Lack of context specific research and poor access to technology has limited the farmers’ ability to adopt
standard crop management practices,which are critical to obtain a good harvest. The R&D needs of
mountainous GB are different from the plains of Pakistan. The agro-ecological conditions here support growing
temperate and off-season horticultural products. The national research orientation in Pakistan is primarily to
support main export commodities, such as mangoes and citrus, while GB needs research in temperate fruit, such
as apricots, cherries,and nuts. Access to production inputs and extension services is also limited. Common
limiting factors include:
 Lack of institutional capacity and coordination for R&D
 Lack of technical capacity to produce suitable hybrid and synthetic varieties

17
 Lack of training for the technical staff and low quality extension services
 Absence of soil, water and diseases diagnostic facilities with trained technicians
 Poor technical information-base and lack of linkages with the national and international knowledge
sources;
 Lack of quarantine services and certification systems
8.6 Higher Failure Risks
GB’s mountain ecology is very fragile and prone to many natural and man-made risks. Its climate is already
extreme, from minus 40 to plus 40 ºC, and it is impacted more severely by climate change. Early rain during
blossoms has reduced cherry production by half, this year. Last year,rains had affected apricot production.
Similarly a landslide has submerged entire villages and KKH by blocking Hunza River and creating and chain
of lakes. GLOFs are common features of GB, and air and land transportation can be disrupted for weeks. The
security level of KKH,the only outside access to GB, has also deteriorated in recent years. The risks are higher
for production, market or system failure.
8.7 Poor Infrastructure
The area of GB is vast and villages are scattered over difficult terrain and far away from market centers. The
road infrastructure has improved from what it was 20-30 years ago. But roads are in poor state of maintenance,
susceptible to frequent mud/landslides, and not designed to cope with the forces of destruction in mountain
areas. Even small distances take hours of travel, and a truck from Skardu to Rawalpindi reaches in 2-3 days.
Poor and unreliable road infrastructure is a major limitation on marketing of fresh off-season products, which
have a good demand and better prices.
8.8 High Postharvest Losses
The postharvest losses in fresh products are between 30-40%. Therefore,processing becomes an important
consideration. Major processing-related issues and constraints common to all three agro-ecological zones are as
under.
 Limited local culture of fruit and vegetable processing, other than drying
 Extremely low exposure of the farmers to modern fruit processing environment
 Lack of opportunities to learn modern fruit processing techniques; and
 Quality and technology issues in the available training opportunities
 Lack of financial resources to adopt improved processing technologies
8.9 Weak Governance
Absence of policies and sector strategies are key handicaps for developing mountain agriculture in GB. It has a
quasi-provincial status, and does not have either authority or capacity to create conducive policy environment.
The following elements are missing.
• Absence of Agriculture Policy to bring focus and effectiveness in the Government’s efforts
• Inadequate provision of funds for Agriculture in the Annual Development Plans (ADP)
• Weak departmental capacity to establish a research system to address the mountain specific agriculture
issues
• Lack of incentives to encourage the private sector to invest in agro-processing and storage systems
• Inadequate efforts to strengthen the GB brand as an ideal area for production of high quality fruits and
vegetable seeds
• Poor property rights regime leading to slow resolution of issues surrounding the development of land
and irrigation water resources
• Un-planned urbanization and its adverse implications for agriculture in the form of contamination of
irrigation water,squeezing of agriculture land, and access issues for crop inputs and farm machinery
• Absence of laws and capacity to monitor the quality of crop inputs and food quality

18
• Absence of farmers voice in government policy
9. POTENTIAL EXPORT PRODUCTS
Technically, GB can produce a range of high value products, but volumes and quality standards are constraining
factors. At present,dried apricots, apricot oil, almonds, walnuts and pine nuts are being exported in small
quantities. In all these categories,only dried apricots and, to some extent apricot oil, have gone through a
process of product refinement based on market demand, when Turkish drying methods were introduced by
AKRSP in 1995. All other products are sold without any significant processing or value addition. Even in dried
apricots, a finished product for retail export market is not available, and almost all of the exported quantities are
supplied as ingredients to food processing companies in the West, or for further processing for retail marketing.

19
CHAPTER 3: MARKET ANALYSIS
1. OVERVIEW
This chapter describes the recent birth and growth of agricultural markets in GB, and exposure to outside
markets. It summarizes information and analysis of the market, key segments, actors and step involved in export
of local products, using the example of EU dried fruit market.
2. MARKET CHARACTERISTIC
2.1 Market Access
For centuries GB remained cut off from the outside world due to its physical constraints. Isolation created the
concept of self-sufficiency, which gave birth to a complex system of production, processing and storage system
that could optimize their returns from their short agricultural season. The basic denominator of this system may
be subsistence farming, but trade offs are based on larger agro-ecological calculations, from soils to seasons.
With the construction of the all-weather KKH the physical isolation ended, and the local economy became
exposed to larger food production and supply systems in mainland Pakistan, and over time came face to face
with Chinese melons, grapes, and pears,and learned their first lessons in competition. The KKH opened up new
opportunities for the local people to enter into market transactions for the purchase of goods and sale of their
surplus produce.
The new market access was complemented by investments made by international donors through local
development support organizations in improving rural infrastructure, productivity and capacity of community
members to learn and participate in market activities. Access to ruralfinance was made possible through a
broad-based and successfulsavings mobilization program of AKRSP. Unfortunately, this program has been
replaced by a private micro finance bank that charges upward of 26% on loans with tight security requirements.
Access to new technology and market information has increased awareness and contributed to the emergence of
robust, if nascent micro market economy in GB, primarily around agriculture, particularly in horticulture sectors
(i.e., potato, cherry, dried apricot and apple). Increased migration to major towns from the rural areas and cash
income from trade, small business, employment and sale of cash crops also improved the demand for market-
based products and services, mainly fresh vegetable and fruits. Relatively small population in the urban areas
and production of fruits and vegetable at household level however made markets of GB less attractive and
economical for traders and suppliers of horticulture.
2.2 Growth Trends
Key markets and business growth polls have emerged mostly in the district headquarters as well as along the
KKH,where apart from other commercial activities, agriculture-related produces are also traded. The recent
AKRSP Regional Market Analysis 2010 indicates that in GB more than Rs.1500 million worth of horticulture
products were supplied to the market annually. Most significantly, out of the total annual market supply is 59%
of the produce consisting of dry fruits largely comprised of walnuts, almond, apricot kernel and dried apricot.
Local markets are largely dominated by down country business people who are very experienced and savvy. The
concept of marketing did not exist 30 years ago. Many people who had initially started a small agro-business,
failed, but now a new generation of business cadres has emerged. Now,young and educated people are learning
from their exposure to Pakistan and China markets.
2.3 Market Actors
Over the last 10 years,a mushrooming of service providers and emergence of local companies, including export
companies, have been observed in GB. An interesting aspect of this trend is that many of these new
entrepreneurs have a background in ‘tourism’ and ‘hospitality’ marketing, but have switched to agricultural
marketing when the tourism industry collapsed after 9/11, and never recovered ever since. Others have a

20
background in ‘development’ sector, including technical staff and marketing specialists, and trained community
members.
A short list of market actors in GB is given below.
 Producers: they harvest and dry their own produce, before selling it to an agent or contactors
 FEGs: Farmer Enterprise Groups, promoted by USAID,are a collection of farmers,both men and
women who have some sort of collective harvesting, processing and marketing plan, and have been
assisted by the support agency in creating a common asset,or piece of technology for processing.
 Contractors: They buy all varieties of fresh crops in the field, months before they are harvested,also
undertake picking, grading
 Group Marketers:These are interest groups of small entrepreneurs and deal marketing as joint
venture.
 Agents or local collectors: They are seasonallaborers and facilitate the buying process on pre-agreed
commission at the farmer’s field, filling of the bags and transportation of the produce from field to truck
road.
 Commission agents or auctioneers: They are based in the main markets of the country and auction the
produces in wholesale markets on commission basis.
 Wholesalers: They sellproduces on consignment or commission-basis and they are based in the
wholesale market;
 Secondary wholesalers who buy at the wholesale market and transport the produces either to sell to
retailers or at another wholesale market where prices are higher;
 Retailers who sell to the final consumer such as street-hawkers,stallholders, retailers etc.
 Processors. They generally deal in processing and drying apricots and oil extraction of walnut, almond
and apricot kernels
 Exporters: undertake any export activity, and provide export services to others firms.
Table 3.1: Marketing Actors in Dry Fruit
Marketing Actors GB Gilgit Hunza/
Nagar
Ghizer Astore Diamer Skardu Ghanche
Firms 54 25 12 10 1 1 4 1
Group Marketing 15 2 2 1 4 2 2 2
Local Traders 40 8 6 2 6 4 4 10
Commission Agent 36 6 8 4 2 6 6 4
Wholesaler 60 10 10 8 8 8 10 6
Self Marketer 54 4 4 10 10 10 8 8
The Table above shows the ranking of market actors for fresh and dried fruit sectors. The Table reveals that
marketing services are relatively more developed in more accessible areas,such as Gilgit, Ghizer and Hunza
Nagar. There is a growing trend in purchasing of pre-harvest crops by both local and national traders particularly
in fruit sector.
2.4 Support Actors
GB has a good base of support organizations, both in the public and civil society sectors. The primary mandate
for agricultural development lies with public sector agencies,but marketing and entrepreneurship development

21
is their weakest point. Other NGOs and INGO, including UN agencies have either in the past or presently
providing key support services.
Over time, more and more support actors are emerging and that surely is creating a multiplier effort. But
coordination and harmony is needed around key priorities, such as developing a common vision of mountain
agriculture in GB, and pooling of experience, expertise and resources. The number of support organizations is
too long to be listed here, but at the community level, Local Support Organizations (LSOs) have emerged as
good platforms for delivery of key market services and making transactions, such as pooling and processing of
market bound, provision of production and post-harvest services. Table 3.2 provides a generic summary of
support actors.
Table 3.2: Stakeholders in the Horticulture Marketing
Stakeholders Key Role Issues
Department of Food&
Agriculture, Govt. ofGilgit-
Baltistan
 Policy makingforagriculture relatedsub-sectors.
 Research & Development (R&D)fornewproducts.
 Extension services to producers.
 Key services, like storage andseedprovision.
 Capacity buildingof producers andmarketinggroups
 Lowcapacity andlackof resources
 Role in marketingnot defined
 No facility andplanformarketingand
promotion.
Federal Seed Certification
& RegistrationDepartment
 Registrationof Companies involvedin SeedBusiness,
 Certificationofcropandvegetable seeds.
 Testingandlaboratory services.
 Implementation ofseedpolicyin GB
 No clear mandatein promotingseed
marketing
Chamber of Commerce &
Industries, GB
 Linkage to mainmarketingactors at national and
international level.
 Membership formarketinggroup.
 Support to get government subsidy for export andimport.
 Politicized, membership dominatedby
non-business people
NGOs andCSOs  Organizingmarketinggroups.
 Capacity building
 Linkage with market.
 Support in business planning
 Link with financial services in the market.
 Help in collective marketingandinput supply
 Limitedmandate andboundaries
 High turnoverof humanresource
Transporter/communication,
inputs, credit institution,
input suppliers etc.
 Service provisionin theirrespective sectoron market
terms.
 Major sources of market information
 Provide informal linkage withthe market players
 Weak infrastructure
 Lowcapacity for investment.
 Lack of leadenterprise.
Entrepreneurs/Marketing
Associations processors,
wholesaler, retailing
 Main actors who under take buyingandsellingfunctions
 Provide embeddedservices to market agents and
stakeholders.
 Main actors to determine the price.
 Packagingservices toproducers andconsumer.
 Lake of capacity, entrepreneurship,
resources etc.
 Lack of linkage, MISandmarket access.
 Availability of inputs
 Scale andquality of the produce
 Weak market infrastructure
Producers Associations  Primaryplace to pool, grade andpackagingof product
 Effective rolein pricingof theproduces.
 Lack of knowledge on pre & post harvest
management.
 Lack of entrepreneurshipad market led
horticulture production
3 EXPORT MARKET STRUCTURE
Globally, major export markets for dried apricots are in EU countries and Russia, whereas nearly half the dried
fruit consumed in these countries come from developing countries. Major suppliers are Turkey, China and Iran.
Pakistan and Afghanistan also export dried fruit to western markets. Wide fluctuations in global food prices are
a major deterrence in export of local products to export markets.
A variety of dried fruits and nuts, including dried apricots, walnuts and almonds, are regularly exported to EU
by Pakistani exporters, usually to a single centrally located EU country, from where they are re-exported and
distributed to other EU countries.

22
GB started exporting small quantities of dried apricots to UK,in mid 1990s1, under a new project by AKRSP,
focusing on promising food value chains. These were two varieties, one from Baltistan and another from Hunza.
The project was spun off as a social enterprise in 2004, and it continued exporting the product under fair trade
certification. The enterprise was sold to the manager and UK based importer by AKRSP in 2007. The strategy
was to foster a relationship between local processor and suppliers and buyer in UK,who is a food manufacturer
and distributer of whole food products in UK. This is a demonstrated success,worth replicating. This enterprise
is now called MFL, pvt Ltd, and it employs nearly 170 workers in their two processing factories. Not
surprisingly though, MFL has largely exited from dried apricots and focusing on more lucrative walnut and
almonds under Faire Trade label.
Most of the exports from Pakistan are wholesale to agents or food industry importers, who use them as
ingredients of repackage them according to their buyers’ specifications.
Even in wholesale supply there are many food safety and quality and safe transportation issues, which need
close attention.
Figure 1: Flow chart depicting export of dried apricots to Europe
Source: own compilation
A processor/packer may carry out some processing and conditioning of product, but is mainly involved in re-
packing dried fruit into smaller packs for the food processing, retail and catering sector (the same procedures are
also frequently undertaken by importers). The imported product is mainly repacked in Europe. The size and
branding of these products depends on the marketing strategy of the processor/ packer. Some will have their
own brand, while others are also or exclusively contracted by supermarkets to pack a branded consumer product
(private labeling) on the supermarkets’ behalf. Larger packers/processors are increasingly buying directly from
processors/exporters in the countries of origin.
Retail sector sales are dominated by the supermarket sector,but health stores increasingly gain market share. In
the retail sector, "loose" dried/dehydrated fruit is hardly sold anymore, being found only in health food shops,
specialist dried fruit and nut shops, and in stalls at street markets in the southern EU countries. Supermarkets
prefer to ‘tailor’ their own mixtures of dried fruit, for various reasons,among which increased value addition.
3.1 Market Segments
The food processing industry is by far the largest (nearly 80%) market segment for dried fruits. They are used as
raw material input for breakfast cereals,bakery products, desserts and confectionery products. The catering
sector is a small buyer of dried fruit.
1 ‘HunzaApricots’ were sold in Europe and America, before that, but it was a brand name not a product of Hunza
Exporter
Importer/ Agent
processor/packer
Food processing
Industry
Consumer
Retail
sector/catering
market

23
Food processors are the most ideal business partners for GB exporters, because they are mostly interested in
specialty products, such as organic and lesser-known varieties. Once a link is created,the quality control staff of
the buyer then steps in and helps in processing and packaging and other aspects of product development and
packaging.
3.2 Price Structures
Because of the wide variations in availability caused by fluctuating harvests,weather conditions or disasters,
changes in supply have a much larger effect on price levels than changes in demand. Other factors which have a
significant effect on prices are the exchange rate of the dollar, quality, grade, presentation (whole, shelled,
pitted, broken etc.) and the method of drying/processing which has been used prior to export. The major country
of origin for a particular product often determines the basic reference price for that product worldwide. For
example, Turkey is the reference for apricots in global markets.
The following calculations show rough costs of primary product, cost of processing, handling and shipping,
estimated selling price, and rough gross profit.
4 POTENTIAL EU BUYERS2
4.1 Producers/ Processors
a) Noberasco. Dal1908 un mondo di frutta a colori; Regione Bagnoli 5  17031 Albenga (SV) Italy;
http://www.noberasco.it/
b) Laparre et Fils Pruneaux, France,manufacturer of frozen and dried fruits. Their main   activity is
supply to the retail sector in France: http://www.laparre-europe.com
c) The Dutch Nut Group, specialist in importing, exporting, trading, packaging and roasting of   a wide
range of nuts and dried fruits. Has its own production facilities: http://www.dutch-   nut-group.nl
d) The Weetabix Food Company, accounting for about 8% of UK’s total cerealsales:
  http://www.weetabix.co.uk
e) Whitworths, UK’s largest manufacturer of dried fruit: http://www.whitworths.com
f) Eat Natural, UK manufacturer of mixed nuts and fruit bars and cereal, under its own brand.   Supplies
the UK retail market: http://www.eatnaturalstore.com
g) Importaco, leading Spanish importer and producer: http://www.importaco.com  
The above-mentioned producers and exporters can be competitors to developing country suppliers.
However, at the same time, these companies can also import dried fruit, making them a potential
trade channel for developing country suppliers aiming to enter the EU market. Depending on the
fruit you produce, companies could either be competitors, buyers, or are active in entirely different
trade channels/industries. Please refer to chapter 2 for a more complete list of interesting players in
the EU dried fruit market.
4.2 Retailers
h) Greenline, UK web shop supplying organic and Fair Trade food products, among which a wide range of
dried fruit: http://www.greenol.co.uk/organic-a01.php
i) Greenways NaturalFood Stores, based in the UK: http://www.greenwaystores.co.uk
j) Rapunzel Naturkust, Producer, wholesaler and web shop offering various organic food products. Market
2 Source: CBI Market Information Database www.cbi.eu. Contact:marketinfo@cbi.eu • www.cbi.eu/disclaimer

24
leader in Germany: http://www.rapunzel.com
4.3 Brokers/ Agents
k) Torriglia Vincenzo, import agent for dried fruits and nuts, Italy, Genoa:   http://www.torrigliage.com
l) Activa, international brokers and agents for edible nuts, dried fruits, dehydrated fruits etc. Italy, Genova:
http://www.activabrokers.com
m) Eurobroker, International brokers and agents of edible nuts and dried and dehydrated fruits etc. located
in Paris, France:http://www.eurobroker.fr
4.4 Traders
n) Catz International BV, Rotterdam, The Netherlands. Importer and distributor of dried fruits:
  http://www.catz.nl
o) King Nuts & Raaphorst, importer and distributor of dried fruit. Located in The Netherlands:
  www.kingnuts-raaphorst.com
p) The Dutch Nut Group, specialised in importing, exporting, trading, packaging and roasting   of a wide
range of nuts and dried subtropical fruits. Located in The Netherlands:   http://www.dutch-nut-group.nl
q) Trading Organic, importer, wholesaler and distributor of a wide range of organic   commodities, among
which dried fruits. Based in The Netherlands:   http://www.tradinorganic.com/
r) Daras,shipper, packers and traders of a variety of products, among which dried fruits.   Located in the
port of Marseille, France: http://www.daras.com/
s) Palm Nuts & More, Germany, specialized in nuts and dried fruit, supplies the German   industry and
retail: www.palm-nutsandmore.de
t) Community Foods, specialized in the procurement, sales and marketing of organic and   conventional
dried fruits, and branded health foods: http://www.communityfoods.co.uk
5 OTHER USEFUL RESOURCES
 FRUCOM,is the umbrella organization of the European Institutions of the European   Federation of the
trade in dried fruit, edible nuts, honey, spices, canned fruits and   vegetables and similar foodstuffs:
http://www.frucom.org
 Organization of the European Industries Transforming Fruit and Vegetables (OEITFL):
  http://www.oeitfl.org
 International nut and dried fruit Foundation: http://www.nutfruit.org
 Confederation of the Food and Drink Industry in the EU (CIAA): http://www.ciaa.be
 EUROPA - Eurostat - Data Navigation Tree - Crops data: http://epp.eurostat.ec.europa.eu
6 FINDING TRADING PARTNERS 
Selecting a suitable trading partner depends on the dried fruit one can offer and whether or not it is organically
certified. European food trade fairs are in general the best place to meet buyers, to gain insight into trends
unfolding in the segment branch and evaluate whether or not your product is ready for the market, or if minor
adjustments first need to be made.
6.1 Interesting Trade Fairs for Specialty Foods
 BioFach, Nuremberg, Germany: http://www.biofach.de
 SIAL, Paris, France:http://www.sial.fr
 IFE: International Food and Drink Trade Exhibition, London UK: http://www.ife.co.uk

25
 Healthy foods summit Europe, London, UK, www.healthyfoodssummit.com
 Food Ingredients Europe, natural ingredients, Frankfurt, Germany. http://www.fi-events.com  
6.2 On-Line Company Databases
Food world is an extensive online food business directory with full EU coverage. Fruit products are a separate
product group: http://www.thefoodworld.com/food_exporters_importers
6.3 Business-To-Business Sources
Agronetwork.com: http://www.agronetwork.com/global
7 PACKAGING AND LABELING
Once a buyer has been identified, sample approved and demand for a specified quantity is secured,the
processing should strictly follow product specifications provided by the buyer. This requires using food grade
processing standards, implemented under the supervision of qualified food technologists and experts.
In most EU countries there is a trend towards recycling of product packaging. The EU legislation requires that
packaging for consumer products is collected by retailers and returned to wholesalers and suppliers for safe
disposal. If the products are packed in a material, which is not recyclable, a contribution has to be paid.
Generally, packaging policy does not affect foreign producers because the importer will be held responsible for
the packaging. Bulk-packaged, dried fruits are usually packaged in export carton boxes lined with polyethylene,
containing 5 kg of product in each carton, (bag-in-box system) or multi-wall sacks. Polyethylene liners may be
heat-sealed to give an airtight closure, although some air permeates gradually through the polyethylene itself.
Vacuum packaging is also used, but on a small scale. Packages suitable for pallets are gaining in popularity,
since they reduce handling costs and damage to the product. Rectangular boxes are more suitable for pallets than
paper sacks or drums. Packages normally vary between 5 kg and 25 kg.
EU rules and regulations are very strict for trade in food products. The most important ones for dried fruits are:
 Maximum Residue Levels (MRLs) / Pesticides. Regulations on the approved level of   pesticides found
in imported dried fruits on the EU market are stated in Council Directive 90/642/EEC. For a
comprehensive overview of the approved levels of pesticides, please refer to:
http://europa.eu.int/comm/food/plant/protection/pesticides/index_en.htm.
 Approved Additives Regulation. This regulation is based on Directive 95/2/EC and deals with the non-
nutritive substances,which can legally be added to some or all food products. Sulphur dioxide (for
lightening and to help preserve color) is permitted for certain groups of dried fruit, but limited to a
certain concentration. Apricots may contain 2000 mg/kg3. The additives should be mentioned in the list
of ingredients on the label of the dried fruits in the consumer packs.
8 EXPORT LOGISTICS
8.1 Export Companies
Export of agricultural products is a specialized discipline and it should be done through specialized
intermediaries, with knowledge and experience in food export. There are a number of companies in GB that
directly export or facilitate export of food products to EU market. These include, among others:
A. KNR Pvt Limited
3 Source: CBI Market Information Database • URL: www.cbi.eu • Contact: marketinfo@cbi.eu • www.cbi.eu/

26
Phone: +92 5811 440099
Fax: +92 5811 455422
Cell: +92 346 9868406
Cell: +92 312 9934590
Email: knr.gbc@gmail.com
Email: salmanmilad@gmail.com
Exports fresh cherries and fresh strawberries to Dubai, Malaysia and Thailand, and dried apricots to
EU markets. KNR also provides technical and export logistics support to other companies.
B. MFL Pvt Limited
Near Old China Bridge
DAnyore, Gilgit
Sher.Ghazi@mfl.com
Exports walnuts and almonds to USA under fair trade label, and dried apricots to UK.
C. Hashwan Traders
Gadi BAgh, Gilgit, GB,
Tel: +92-5811-452853:
Exports dried apricots to retail market in Turkey
D. Hunza Dry Fruits
Village and Tehsil Aliabad,
District Hunza Nagar,GB
Tel: +92-346-9749449
Deals in wholesale, retail and export of dry fruits.
E. Soghat-e-Baltistan
Kushoobagh Skardu Baltistan, Pakistan
+92-345-5200513
+92-312-5200513
soghat@keesar.com
Deals in Wholesale, retail and export of dry Fruits.
8.2 Key Steps in Export
To find out the particular market and select a product in demand, search the Internet to contact buyers/ agents.
Quote the price for the selected product as following:
 FOB: means “free on board” the delivery of the cargo is given till the same is loaded on to the vessel.
All future expenses like freight, insurance will be to the account of the buyer.
 C&F: means cost & freight. The price includes the freight charges till the destination. The buyer has to
bear only the insurance and other delivery charges, at the port of destination.
 CIF: means cost, insurance and freight. The price includes all expenses till the port of destination.
Once the price is acceptable to the buyer, he will ask for a sample. Sending samples is tricky from Pakistan, as
Courier services don’t entertain food samples. The best option is International Air Parcel,using Pakistan Post.
Upon approval of the sample, the buyer will send a draft product purchase agreement (PPA),specifying product
attributes, packaging and shipment methods, quantity, price and credit period. Upon signing of PPA by both
parties, the buyer will open the letter of credit or will send an advance remittance through the banking channels
to the seller’s account.
The letter of credit should be always in the form of irrevocable and sight letter of credit.

27
Once the lC is opened the seller has to prepare the cargo as per the quality, packing specifications mentioned in
the lC/ PPA and send the consignment to the port of loading so that the C&F (clearing and forwarding) agent
will do the rest of forwarding the consignment to the buyer.
C&F agent will prepare all the shipping documents called for in the lC/PPA. Once these original shipping
documents are received, seller has to prepare his commercial invoice, packing list, and bills of exchange and
submit all the documents along with the original lC/PPA received from the buyer to the bank for payment.
The banker will thoroughly scrutinize the documents strictly as per the terms and conditions of the lC/PPA and
give credit to the sellers account and send the documents to buyers’ bankers for getting the payment. Normally
the payment is received within 30 days time.
9 OPPORTUNITIES AND THREATS
 + More than half of EU dried fruit imports comes from developing countries (DCs) and imports from
these countries increased on average by 9.2% over the last 3 years
 EU countries produce and process huge quantities of temperate fruit themselves. Their major food
imports consist of fresh and dried tropical fruit, not temperate fruits
 GB’s advantage in not in quantities or price, but product differentiation. The implication may be not
competing with Turkey, Chia and Iran on quantities and price, but meeting certain niche/ demand for
‘natural varieties’ among EU consumers
 Export market is a high value, but low margin business. Sometimes prices may be better in local
markets than in export
 Exports should start with small quantities of dried apricots that are in demand, say one or two containers
initially, and increasing the volume and product range, with experience.

28
CHAPTER 4: STRATEGIC PLAN
1. OVERVIEW
Based on the previous discussions on contextual conditions and market analysis, this chapter outlines a long-
term vision, mission and a strategic framework for developing mountain agriculture in a sustainable manner.
The strategy covers key objectives, such as enhancing food security for local population, cash income and
employment from production and marketing of high value products, and biodiversity and crop diversity, to
maintain the intrinsic resilience of mountain agriculture. Next, it describes implementation steps for achieving
those objectives.
2. STRATEGIC FRAMEWORK
It is a critical time for the future of agriculture in GB. Like the KKH,the Economic Corridor project is throwing
up new and much greater opportunities. However,this time around, an integrated effort is needed involving all
the key stakeholders, especially keeping the needs of small farmers and the private sector partners as frontline
players.
For this, a shared vision is needed for developing mountain agriculture in GB that is accepted and aspired by all
stakeholders. This vision has to take into account all the peculiar conditions, such as smallholdings, off-season
advantage, and expected improvements in infrastructure and access to new technology and markets, through the
Economic Corridor. The following is proposed as a draft statement of that vision for GB.
2.1 Vision
In 2030, the mountain agriculture in GB is researched-based and market driven; it is optimally productive,
specialized and resilient.It is contributing more than USD100 million to local economy fromdomestic
marketing and export of high value products,while also meeting 50% of local food needs.
2.2 Mission
The public and private sector actors,supported by national, regional and international partners, are committed to
developing technical and institutional capacities for conducting strategic research on suitable technologies and
generating knowledge for GB agriculture to provide food and livelihood security and to develop a dynamic
commercial sector of high value mountain specific products.
2.3 Strategic Objectives
The following strategic objectives are proposed for repositioning mountain agriculture for the future
opportunities expected in GB, with a time horizon until 2030:
 R&D: creation of high-quality technical and market research facilities, serving private agribusinesses,
farmer organizations, NGOs and public extension services with relevant research services,to access
national, regional and international premium markets
 Specialization: promoting specialization through undertaking agro-ecological zoning of the area,and
selecting and adapting traditional and improved varieties and developing production and marketing
systems for food and market-demanded products, suited to different niches in GB
 Income and employment: developing value chains of commercially high potential crops in GB, and
making a recognizable contribution in increased income and employment attributed to high value
agriculture
 Resilience: reducing vulnerability in the face of climate change by developing necessary strategies for
maintaining biodiversity and crop diversity to create a balance between food production needs and high
value crops for the market.

29
3. THE FUTURE OF MOUNTAIN AGRICULTURE
In order to achieve the above objectives, consolidation of technical and market research and development
interventions are proposed, using the following framework. The following strategic framework essentially
focuses on three domains: a) food security, b) commercial agriculture and, c) reducing vulnerability through
enhanced resilience.
Table4.1:Strategic DevelopmentFramework
Domain StrategicPurpose Scope
Livelihoods and food security Increasing productivity and production in food
crops, primarily for self-provisioning
Adaptiveresearch to increase productivity
and production in food, fodder, vegetable
and fruit crops
High-value commercial agriculture Seeking market opportunities for earning cash
income and employment generation
Developing appropriatecash crops and
value chains, based on natural comparative
advantage and market demand
Reducing vulnerability Promoting wise use of natural capital, primarily
for self-provisioning Hedging against crop/
market failure, by enhancing biodiversity and
crop diversity
Research on traditional resilient crops and
farming systems
Source: Own compilation
3.1 Enhancing Food Security
The opening of KKH has brought about major changes in the agricultural economy of GB. With increased road
access with mainland Pakistan and China, cropping patterns have changed. In the 1990s, the federalgovernment
introduced subsidized wheat with the objective to encourage cash crops,such as seed potatoes and horticulture.
Even before these developments, population growth was outpacing productivity increases in local food crops.
Even though important efforts have been made to increase production by increasing arable land by building
irrigation infrastructure, to increase productivity through improved varieties and technologies, agricultural
production could not keep pace with the growing food demands of the area. Today more than 80% of all
foodstuffs, consumed in GB, are imported from down country mostly in the form of subsidized wheat.
Box 4.1: Potential for self-provision
Provided a prudent and overarching agriculture
development plan, there is potential for substantially
enhancing the self-sufficiency of the region, boosting the
productivity and production. Bottlenecks, that hinder GB
agriculture to take off, are of course specific for each crop.
However,there is consensus among experts that through
intensive and extensive farming, the yields can be increased
to at least 5 t/ha (Box 1). Key interventions to achieve this
target include:
 Investments to increase arable land through irrigation and land development
 Public-private arrangements for input supply, especially developing certified seed supply systems
 Public/community extension services to increase uptake of agricultural technologies
Wheat, presently grown on an area of 18,000 ha,
with an average yield of 1.5-2 t/ha is contributingto
about 20% of the provinces’ food needs. Increasing
average yields to realistically achievable5 t/ha1,the
same area under wheat would cater for almost50%
of the totally needed amount.
1Not to speak of 7-8 t/ha harvested in Punjab

30
In order to implement such as strategy,there is a need to integrate federal and provincial research efforts
(MARC and DoA),and linking up with regional and international partners, such as FAO/UNDP/ICIMODand
Chinese Academy of Agricultural Sciences, in the neighboring Xingjian province of China. In the long-term,
local agricultural development must be done through international cooperation and strong linkages with
technologically advanced and regionally well connected mountain agricultural research systems. The mission of
this integrated agricultural research system must be to conduct strategic research on suitable technologies and
generating knowledge for GB agriculture to provide food and livelihood security.
3.2 Commercialization, Specialization and Branding
Nature has gifted GB with a number of comparative advantages, including seasonaldifferences and a climate
that is ideal for the cultivation of a number of high value crops, which can be sold fresh, and can also be
exported after processing. The prospects for processing the fruits and vegetable have already improved after
KKH,and this trend can be supported through developing specific products for premium export markets. At
present, very small quantities of fruits and vegetables are processed and much of what is processed is consumed
at home and is not marketed or marketable. The following Table has been developed during discussions with
growers, traders and experts, and it clearly shows good potential developing the horticulture sector in the area.
Table: 4.2 Utilization of major products made from horticultural crops in GB
Fruit/Vegetable
Product Household
Consumption%
Marketed%
Apricot
1. Sun dried Apricot 10 90
2. Sun dried Apricot Kernels 40 60
3. Apricot Kernel Oil 25 75
4. Apricot kernel Cake 100 0
Grapes
1. Black Currents 95 10
2. Grapes Concentrate 80 20
3. Vinegar 95 5
Mulberry
1. Sun dried mulberry 90 10
2. Mulberry Concentrate 90 10
Apple
1. Sun dried Apple 100 0
2. Dried Apple Powder 100 0
3. Jam 90 10
Tomato
1. Dried tomato 40 60
2. Tomato Puree 30 70
Nuts
1. Walnuts 40 60
2. Almonds 30 70
Source: Focus Group Discussions (FGDs)
The data above clearly depicts the overall situation at household level, which eventually is translated at GB
level. Only dried apricot and other products made from apricot are sold in the markets, while remaining fruits
are largely consumed at home. In vegetables only tomato is sold in dry and processed form.
The potential is even higher if other mountain products, such as potato and vegetables seed,livestock products,
honey, strawberries, blackberries, blueberries, asparagus and other specialty products are added to the product
mix in future. The key to success would be specialization and product differentiation, and accessing premium
markets.
Specialization can be achieved in the following ways:

31
 Introduction of new fruit and vegetable varietieswith high market demand,and growing them under the
pristine natural environment. This potential is already well established for basic and pre-basic potato
and vegetable seeds. Other candidates include alpine flower seeds,cold day neutral varieties of
strawberries, blackberries, blueberries, grapes,asparagus,and cultivation and in-situ and ex-situ
cultivation of rare medicinal and aromatic plants
 Selection and propagation of ‘natural varieties’ of apricots,apples and nuts, for specialty health food
industries. The marketing advantage and value in these products is ‘naturally grown’ food with no
tempering whatsoever—i.e.,more nutrition less toxins. Examples include wild varieties of apricots, low
cholesterol yak meat, sea buckthorn berries, etc.,which contain rare minerals and in the case of yak
meat, omega-3 protein and conjugated linoleic acid (CLA)4.
 Adopting ‘good agricultural practices’ and certification regimes, including the following, among
others:
 Building and maintaining long-termrelationships with food industry buyers in the West will be key to
developing technical capacities and market-orientation.
3.3 Maintaining Resilience
The Hindukush-Karakoram-Himalayan (HKH) mountain landscape is a unique environment, with great social
and natural diversity. The entire region, including Gilgit-Baltistan (GB) and Chitral (C) District of Khyber-
Pakhtunkhwa (KPK),is part of the larger Tibetan Plateau that provides critical ecological services to billions of
people living in China, South and Southeast Asia. This whole region is known as the Towers of the World’s
Fresh Water resources,Roof of the World (Bam-e-Dunya), High Asia, the Third Pole, and much more by poets,
naturalists and social scientists.
4 Omega-3 aids body responds to stress and control numerous other metabolic processes. Most peopleeat too many omega-6 fats and
not enough omega-3; CLA is a typeof naturally occurring trans-fatty acid that improves brain function, causes weight loss, and reduces
risk of cancer. http://www.bulletproofexec.com/grass-fed-meat-part-1/

32
Hundreds of millions of people living in lowland areas depend on the water and other environmental services
generated within these mountains. Global changes in these mountains will not only affect mountain dwellers,
but also the livelihoods and welfare of a considerable portion of humanity.
This region is prone to earthquakes and erosion and coming under increasing pressure from fast growing
population, overgrazing, and mega development projects, such as big dams, roads, and a future rail link, which
are expected to accentuate the impacts of natural disasters, climate change, urban development, and changing
cropping patterns.
Over millennia, the ecological and social systems in this mountain region have developed robust adaptive
strategies to withstand a number of environmental stresses,through bio-diversity and crop diversity, and
controlled access to natural resources through local customary rules. The adaptive knowledge and skill of
mountain people are increasingly recognized as key tools for coping with current and forecasted changes in
climate – namely the exacerbation of extreme weather events,which are already evident in GB.
Ev-K-2-CNR is undertaking pioneering work in the mountain ecosystems of this region, and may well become
global change laboratories for monitoring the combined effects of climate and socioeconomic changes, assessing
the effectiveness of adaptation options, and proposing responses at local, regional and global scale.
The implication of this new understanding is this underlying resilience can be enhanced through ‘smart
development’ options, creating a balance between the regenerative capacity of naturalsystems and the need to
increase productivity and incomes and employment in a sustainable way.
In terms of strategy, the following steps are proposed:
 Provide an overall vision of the ecological, social and cultural features of mountain socio-ecosystems,
highlighting those processes and elements which have determined their resilience to past and present
disturbances
 Describing current and future impacts, offering a perspective on conservation and sustainable
development based on successfulexamples from within and across the HKH mountain landscape
 Integrate ecological knowledge and adaptation and mitigation techniques, both practiced based and
research based,in local development strategies
 Raise the awareness of development experts, donors and policy and decision makers about the
relevance, extent, main challenges, solutions and good practices developed to address key problems,
such as land erosion, overgrazing and over use of chemical inputs
 Engage communities in adaptive research and select best management techniques for wise use of natural
resources
 The ultimate objective should be to demonstrate the importance of investing in human and natural
financial resources in mountain areas in the framework of the global effort to limit the impact of global
change on the livelihoods of upstream/ downstream people, and on the natural and cultural wealth of
mountain communities.
4 PRIORITIZATIONOF EXPORTABLE PRODUCTS
4.1 Dried Apricots
Based the above assessment of existing production and surplus volumes, a number of crops can be prioritized
for marketing in export markets. The criteria for selection include natural advantage, and wider social and
economic benefits, including market demand, and ease of postharvest handling, etc.
As can be seen in the following comparison, apricots are at the top of the list of many items that can be selected
for export from GB. This comparison allows to ‘zero in’ on dried apricots as a flagship product for export,
assess the current gaps in the value chain and develop a strategic plan and a business plan. Once this plan is

SEED STUDY final daft of June 23 2014

SEED STUDY final daft of June 23 2014

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