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Value Chain Study Pine Nuts in South Waziristan, Khyber Pakhtunkhwa

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Value Chain Study Pine Nuts in South Waziristan, Khyber Pakhtunkhwa Value Chain Study Pine Nuts in South Waziristan, Khyber Pakhtunkhwa Turn Potential into Profit Small & Medium Enterprises Development Authority Ministry of Industries and Production, Government of Pakistan. 4th Floor, 3rd Building, Aiwan-e-Iqbal Complex, Egerton Road, Lahore. Tel: 92-42-111-111-456 Fax: 92-42-36304926-27 Website: http://www.smeda.org Authors: Engr. Muhammad Israr Wazir, Team Lead Mr. Asfand Yar Javed, Team Member August 2018 TABLE OF CONTENTS 1 INTRODUCTION………………………………………………………………………………………………….Error! Bookmark not defined.P#3 1.1 History & Background Of The Sector……………………………….………P#3 1.2 Pine Nuts in Pakistan………………………………………………………..P#4 1.3 Pine Nuts in South Waziristan………………………………………………P#5 2 OBJECTIVES OF THE STDUY………………………………………………………………………………….P#6 3 CURRENT PINE NUTS VALUE CHAIN IN SOUTH WAZIRISTAN ......... P#6 3.1 Pine Nuts Value Chain (SW)………………………………………………..P#7 3.2 Processing…………………………………………………………………….P#8 3.3 Market……………………………………………………………………........P#10 4 SUPPORTING INSTITUES…………………………………………………………………………………..P#12 4.1 Pak Army………………………... ……………………………………………P#13 4.2 Public Sector Line Departments ……………………………………………P#13 4.3 Associations …………………………………………………………………..P#13 5 ISSUES IN PINE NUTS VALUE CHAIN …………………………………………………………………….P#13 5.1 Farms …………………………………………………………………………..P#13 5.2 Processing …………………………………………………………………….P#14 5.3 Market …………………………………………………………………….……P#14 5.4 Regulatory/ Others………………………………………………….…………P#14 6. WAY FORWARD…………………………………………………………………………………………………P#15 7. REFERENCES…………………………………………………………………………………………………..P#18 8. ANNEXTURES………………………………………………………………………………………………P#19-26 Value Chain Study of Pine Nuts in South Waziristan, Khyber Pakhtunkhwa 1. INTRODUCTION 1.1 History and Background of the Sector Pine nuts trees grow across North America, Europe and Asia. Pine nuts have been an important food source for thousands of years. Roman soldiers took them as campaign food when they raided Britain over 2000 years ago. Even before that, Greek authors mentioned pine nut trees as food producers around 300 BC, and it is thought that earlier societies used them and transplanted them throughout the Mediterranean region to Israel and even Georgia and the Black Sea between 6,000 and 10,000 years ago. Pine nuts refer to the edible seeds of pine trees. There are around 20 species of pine nuts available worldwide. Pine nuts contain a wide variety of nutrients such as proteins, vitamins, and minerals, which are essential for maintaining optimal health. Additionally, the presence of anti-oxidants makes pine nuts more useful in the treatment of certain health disorders. Furthermore, pine nuts help to boost energy, vision, and anti-aging. Pine nuts are being used extensively as a healthy ingredient in the food and beverage industry in recent years. Pine kernels are, indeed, very good source of plant derived nutrients, essential minerals, vitamins and heart friendly mono-unsaturated fatty acids that help benefit in reducing cholesterol levels in the blood. In spite of its irregular nature, overall world pine nut production followed a growing trend throughout the previous ten years, totaling 22,850 metric tons (kernel basis) in 2017/18. Over the last five years, global production amounted to 26,400 MT on average. In 2017/18, China was the top producer with 39% of the world share, followed by North Korea, Pakistan and Afghanistan with 135 each. (See Annex-1 for Pine Nuts production details around the Globe). Improving economic condition, increasing disposable income, and growing awareness of the health benefits of pine nuts are propelling the global pine nuts market. The analysts forecast the global pine nuts market to grow up to 20.68% during the period 2017-2021. 4 Value Chain Study of Pine Nuts in South Waziristan, Khyber Pakhtunkhwa 1.2 Pine Nuts in Pakistan Chilgoza/pine nut is found in western Himalayan forests of Pakistan. Chilgoza pines have similar appearance as stone pines; featuring long slender, pointed kernels. The seeds (pine nuts) are 17–23 mm long and 5–7 mm broad, with a thin shell, nearly 20 percent of the Pakistani forests consist of Chilgoza trees.Pine nuts are the fanciest of all the nuts, pleasantly sweet and delicious Suleiman Mountain Range is an extension of the Hindu Kush and lies at the junction of three provincial borders of Baluchistan, Khyber-Pakhtunkhwa, and Punjab. With elevation range of 500 to 3441 meters, the steep mountainous terrain of the project area with arid ecology provides suitable climatic and topographical conditions for growth of pure Chilghozaforest. Suleiman Range contains the world’s largest pure stand of Chilghoza (Pinus gerardiana) forests is spaced over 260km2. These forests play an important role, providing both ecological and environmental services besides being a credible source of income to local communities. Due to increase in population coupled with lack of alternate livelihood opportunities, Chilghoza Forests are under constant pressure for timber. Compared to poor quality timber for which Chilghoza trees are harvested, the same trees produce good quality nuts that have market, both national and international. Pakistan is the second largest producer of Pine Nuts in world after China. Due to its peculiar taste and fragrance, Pakistani pine nuts’ demand in local and international market is increasing day by day which is obvious from increase in its exports in recent years. Main importers of Pakistani pine nuts are China, Taiwan, US, UK, Scandinavian countries, Middle East and European countries. In season 2015/2016, Pakistan produced 3,000 MT (kernel basis) of pine nut products that represents 15% of its global Production of 19,600 MT. China remained the major pine nut producer despite the sharp decrease, with a crop of 5, 5 Value Chain Study of Pine Nuts in South Waziristan, Khyber Pakhtunkhwa 000 MT, it accounts for 26% of world’s total pine nut Production. China was followed by the Russian Federation (4,050 MT, 21% share), North Korea, Afghanistan and Pakistan. (See Annex-1 for details of exports) Nearly 20 percent of the Pakistani forests include/contain of Chilgoza trees. These forests are found in FATA, Khyber Pakhtunkhwa, Baluchistan Provinces, Punjab (Murree and KotliSattian hillsides) and in Northern Areas i.e. in Gilgit and Kashmir. In Khyber Pakhtunkhwa, major pine producing forests are in South Waziristan. 1.3 Pine Nuts Production in South Waziristan South Waziristan is a mountainous area of North-Western part of Pakistan. It borders with Afghanistan and covers an area of approximately 6,620 square kilometers. Waziristan is divided into two agencies for administrative purposes (South and North). It comprises the area west and south west of Peshawar between the Touchi River to the north and the Gomal River to the south. The Agency/District is divided into three administrative sub divisions: Sarwakai, Ladha and lower form of Wana. Although there are five tribes in the region, but the most prominent are two tribes namely the Mehsud and the Ahmadzai Wazir (or in short Wazir). Another famous tribe is the Burki tribe, but they are very few in numbers in this region. These tribes are further sub-branched into numerous small tribal clans, but most of them share common or at- least similar characteristics. Main source of livelihood of South Waziristan’s residents is agriculture. Pine Nut (Chilghoza) is one of the main sources of income. In South Waziristan landscape of Pine forest covers the area from Shakai to Angoor Adda along the border of Afghanistan, where around 20% of the forest comprises of Pine trees. Main markets of SOUTH WAZIRISTAN pine nuts are Bannu, D.I.Khan, Peshawar, Rawalpindi and Lahore from where these are further supplied to other national and international markets. 6 Value Chain Study of Pine Nuts in South Waziristan, Khyber Pakhtunkhwa Waziristan produced around 5,000 tons of pine nuts annually. South Waziristan accounts for nearly 85-90% of the Pakistan’s pine nut produce. Since Pine nuts grows under special weather conditions and in specific region therefore regards as rear and precious commodity. Similarly, South Waziristan have a special weather conditions, hence these nuts are rear and famous around the globe for variety, quality taste and color. It is pertinent to mention that this sector and trade is unorganized in Waziristan. In the recent past, after flushing out militants from North and South Waziristan agencies through military operations, Pak Army had taken several steps and actions for the betterment and development of the said sector in the region. 2. OBEJECTIVES OF THE STUDY The main objectives of the study are; Ø To describe a clear picture of the pine nuts sector Ø To identify the existing gaps & issues of the pine nuts sector Ø To organize the pine nuts sector/trade through; institutional recommendations/interventions, so that the product may gain place in national and international markets 3. CURRENT PINE NUT’S VALUE CHAIN IN SOUTH WAZIRISTAN Pine Nut is one of the important sources of income in several forested areas of Shakai, Angoor Adda and Mehsud regions of SWA. Pine nut trees have been growing mixed with other forest trees naturally in the mountainous range of South Waziristan. The Pine nut trees come into bearing in 20-25 years and remain productive for about 70-80 years. The Pin Nuts from forest/farms finds its ways to the local market of D.I.Khan, Bannu, Peshawar and outside KP i.e Rawalpindi & Lahore. 7 Value Chain Study of Pine Nuts in South Waziristan, Khyber Pakhtunkhwa 3.1 The Pine Nuts Value Chain • Shakai - Angore Adda along the boarders of Afghanistan PINE NUTS IN SW • Cone Picking • Pine nuts extraction By Growers/Farmers • Classification/Grading PROCESSING • Roasting By Traders • Pilling •Packing • Local; Banuu, D.I.Khan, Miramshah & Makeen • National; Peshawar, RawalPindi, Lahore MARKETS •International; China, US, UK,Scadinavian Countries, Midle East ,EuroPe, Central Asia and Russian Federation Note: (See Annex-3 for Value Chain Map). 8 Value Chain Study of Pine Nuts in South Waziristan, Khyber Pakhtunkhwa 3.2 Pine Nuts Forests in South Waziristan In South Waziristan, average size of the forest possessed by each tribe/clan depends upon the piece of plain land possessed by that tribe/clan.
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