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 Banana is the 4th largest crop of the world.
 Banana is staple food for more than 70 million people in sub sharan afric...
 Depended on cost of production and transportation from farm to wholesales and retail
markets.
 Depended on sorting on b...
 Approximately Rs 1300 t0 1400 per 35-36 dozens(slightly large size & improved quality
bunches)
 We have observed that t...
 Total world banana exports marginally declined to 14.7 million tonnes in 2009 compared
to 2008, due to a lesser availabl...
 There is hardly any data available on the export figures for this fruit. However, it is
assumed that around 20 percent (...
 India exports bananas mainly to Middle East countries viz. U.A.E., Saudi Arabia, Oman,
Bahrain, Qatar. The varieties whi...
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Banana is the 4th largest crop of the world

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Banana is the 4th largest crop of the world

  1. 1.  Banana is the 4th largest crop of the world.  Banana is staple food for more than 70 million people in sub sharan africa.  Banana is extensively grown in the lower part of Sindh(pakistan).  The total share of Sindh is 87% in total area of cultivation.  The total share of sindh is 89 % in total production.  Banana is the 4th largest crop of the world.  The area under banana cultivation at the time of independence was only 117 hectares and the production reported was 368 M tons.  According to “Pakistan Statistical Year Book 2011”,out of 34,800 hectares 32,200 hectares were grown in sindh province.  Sindh produced 127.4 thousands tones of banana.  The average yield per hectare was 3957 kg in sindh .  Average cost of production in sindh is RS 80,000 to RS 150,000 per acre.  Our domestic consumption/capita/year is 0.9 kg whereas maximum in Philippines 34 kg.  Now bananas are being imported from India.  Indian bananas were initially imported for markets in the most populous province of Punjab and are now being supplied to the southern province of Sindh, which produces most of the country's banana crop in order to fulfill the local demand.  In Pakistan wholesalers buy and the sell the fruit with help of commission agents who bring the seller and buy together.  Wholesaler deals in the inter-regional markets and supply produce to processing industries, exporters, retails according to their demand.  Like India in Pakistan there is no proper mechanism for transportation of this important fruit, bananas are transported without proper coverage. PRICE MECHANISM :
  2. 2.  Depended on cost of production and transportation from farm to wholesales and retail markets.  Depended on sorting on basis of good physical appearance.  Depended on Pre and Post harvest losses.  No proper mechanism exits( in Pakistan)  Also depended on will of contractor & commission agent.  In Pakistan sorting of bunches/ fingers is not done by grower or producer. Only at retail level, fruit is sorted according to physical appearance.  According to government estimates, around 30–35 percent of all horticulture produce is wasted due to poor post-harvest handling.  Less than 1% banana farming is done by owner, rest is depended on contractor or commission agent. FACTORS INFLUENCING PRICE MECHNISMS: There are several factors which influence the efficiency of fruit marketing and price mechanisms ,which are  Rotting of products.  Seasonal viability .  Quality of produce.  Transportation price.  Location of farm and market.  Pre and Post harvest losses.  Role of contractor or middle man. PRICES OF BANANA / 40 KG IN PAKISTAN:  Approximately Rs 800 to Rs 900 for Kabul.  Approximately Rs 650 to Rs 750 for Lahore.  Trader buy for Lahore on Rs 400 to Rs 500.  Approximately Rs 700 per 35-36 dozens ( small size an d poor quality bunches)
  3. 3.  Approximately Rs 1300 t0 1400 per 35-36 dozens(slightly large size & improved quality bunches)  We have observed that the prices of banana at wholesales market remain in between RS 20 or RS 25 to RS 60 per dozen depending on the quality of produce.  Earlier banana was sold for Rs20 to Rs30 per dozen, but now it is being sold for Rs40 to Rs50 per dozen.  While banana that was being sold for Rs50 to Rs60 is now being sold at Rs70 to Rs80 per dozen in the retail market in some markets of Karachi like defense, clifton, steel town. EXPORT MARKETING:  Global import of banana was total 14.8 million tonnes in 2010, 4% less lower than exported volume due to losses during transportation.  Import of banana into developing countries and transitional countries will rise at higher rate than developed countries.  Developing & transitional countries represented nearly 50% of the world import of banana in 2010, it was 25 % in 2009.  Banana import of developed countries is forecasted to rise by 1% - 2% in the coming years. 80% of the increase will be represented by Canada and the US. However, the EU will remain to be the major banana importer (USDA, 2007).  A UN study had recently concluded that no more than seventeen cents of each dollar spent by North Americans on bananas went to producing countries.  World imports of banana fell by 7% in 2009. Although China and Japan respectively increased imports by 36% and 15%, these were not enough to offset the decline in traditional import markets of the United States and the EU.  This decline was an effect of a significant drop in consumption due to the economic slowdown and the higher prices of goods. Import returns in the EU increased in 2010, possibly as a result of the reduction in import tariffs and the natural recovery in consumption trends  Total world banana exports marginally declined to 14.7 million tonnes in 2009 compared to 2008, due to a lesser available supply from Asia and Africa.  Exports from Ecuador are predicted to further increase in the upcoming years.  Costa Rican exports recovered by 14% in 2010 after falling by 17% in 2009 due to bad weather.
  4. 4.  Total world banana exports marginally declined to 14.7 million tonnes in 2009 compared to 2008, due to a lesser available supply from Asia and Africa.  Exports from Ecuador are predicted to further increase in the upcoming years.  Costa Rican exports recovered by 14% in 2010 after falling by 17% in 2009 due to bad weather.  Export volumes from Colombia and Guatemala also decreased by 14% and 24%, respectively because average export prices fell by about 12%.  World production of bananas was estimated at more than 102.1 million tonnes in 2010, about 6% more than 2009.  Asia accounted for nearly 61% of world production. Next were the Americas with 27%, Africa with 10%, Oceania with 1.7%, and Europe with 0.4%. CURRENT AND EMERGING HIGH END MARKETS FOR PAKISTANI BANANA UNDER COMPETITIVE MARKETING SCENARIO:  Most of the banana export takes place without information to Iran and Afghanistan.
  5. 5.  There is hardly any data available on the export figures for this fruit. However, it is assumed that around 20 percent (around 25,000 metric tons) of Sindh’s produce crosses borders into Iran and Afghanistan through Balochistan and Khyber-Pakhtunkhwa.  Most of the export is takes place by land routes via trucks.              EXPORT HURDLES FROM PAKISTAN: Poor crop management Poor variety selection Post harvest handling of banana Improper price mechanism. Transportation Role of contractor or commission agent. Quality of final products. Absence of cold storages EMERGING MARKETS FOR PAKISTANI BANANA: According to a FAO report, Iran alone imported 243,000 metric tons of bananas in 2004/05, whereas in 2006 the total import of bananas into Iran grew to 294,000 metric tons. Saudi Arabia and the UAE imported another 111,000 and 70,000 metric tons of bananas, respectively in 2004/05. The Middle East and the Central Asian Republics are big markets that are in close geographic proximity to Pakistan / Sindh and are easy to penetrate. Although Middle Eastern markets absorb fruit from the major exporters such as the Philippines, Ecuador and Costa Rica, they are also supplied by other countries as well on a lesser scale, such as Yemen, Pakistan and India. In the Middle East, banana imports were projected to rise by some 50 percent to exceed 900 000 tonnes in 2010, mainly due to demographic growth and price decrease.
  6. 6.  India exports bananas mainly to Middle East countries viz. U.A.E., Saudi Arabia, Oman, Bahrain, Qatar. The varieties which are in demand internationally include Grand Naine and Cavendish.  These two varieties are being grown in Pakistan , Pakistan has chance to export banana to these countries if work is done with serious attention of government and proper pre & post harvest management .  According to data compiled by Corbana, annual banana imports in the Middle East grew by around 16 per cent between 2001 and 2008, rising from 257,000 tonnes in 2001 to 737,000 tonnes in 2007.  There is clear potential to increase the current volume of bananas imported by the Middle East,” Jorge Sauma, CEO of Costa Rica’s national banana corporation (Corbana) told Fruitnet.com, Costa Rica is trying to target middle east countries for banana export.  The Philippines is eyeing China, Malaysia and Middle Eastern countries such as Saudi Arabia, Bahrain and Qatar as new market for its banana exports. The Philippines already has about 87 percent of the Chinese market but there is still room for further growth because China’s market is so vast.  In the Middle East, there is even more room for growth, particularly in Bahrain where the Philippines only has a seven percent market share, and in Qatar with a minimal three percent share. Even in Saudi Arabia.  The Philippines’ biggest export market in the Middle East is still Iran, with a market share of 80 percent. Philippine banana exports to Iran amounts to around 50 million boxes. Each box contains around 13.5 kilos of bananas. RECOMMENDATIONS:  Proper sucker selection.  Timely plantation & harvesting.  Proper nutrition management of banana orchids.  Proper & timely irrigation.  Proper disease & pest management.  Establishment of cold storages.  Reduced role of pre harvest contractor.  Proper post harvest management.  Reduced gap between demand & supply. REFERENCES:  http://www.thenews.com.pk/Todays-News-3-129826-Fruit-prices-decline-as-demandlowers  http://www.agricorner.com/a-technical-guide-book-of-banana/  http://r0.unctad.org/infocomm/anglais/banana/chain.htm  reports/Horticulture%20Crops%5Cbanana%5CBanana1.htm  http://www.fao.org/docrep/006/y5143e/y5143e10.htm http://www.itfnet.org/v1/2012/04/world-current-market-situation-and-outlook-bananasand-tropical-fruits PREPARED BY:IQRA JUNEJO REPORT ON BANANA

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