Grapes Value Chain Study

Contents
Acknowledgements..........................................................................................................................2
Executive Summary.........................................................................................................................3
1.

Description of Methodology....................................................................................................5

1.1. Tools Used.........................................................................................................................5

1.2. Field Visits........................................................................................................................5
1.3. Interviews..........................................................................................................................5
1.4. Sources of Information......................................................................................................5
2. Production................................................................................................................................6
2.1 Production Areas and Volume...........................................................................................6
2.2 Grape Varieties in Pakistan (Balochistan).........................................................................7
2.3
Production Season............................................................................................................8
2.4 Farm Holdings and Production Systems...........................................................................9
2.5 Agricultural Production Practices......................................................................................9
2.6 Pest and Diseases.............................................................................................................10
2.7 Production constraints and opportunities.........................................................................11
3. Harvesting, Produce Handling and Post-harvest Management................................................11
3.1 Harvest Maturity..............................................................................................................11
3.2 Harvesting and Field Handling........................................................................................12
3.3 Grading............................................................................................................................12
3.4 Packing............................................................................................................................12
3.5 Transport..........................................................................................................................12
3.6 Cold Store........................................................................................................................13
3.7 Processing........................................................................................................................13
3.8 Post-harvest Losses..........................................................................................................14
3.9 Post-harvest Constraints and Opportunities....................................................................14
4. Marketing...............................................................................................................................17
4.1
4.2
4.3
4.4
4.5
4.6
4.7

Market Demand and Supply...........................................................................................17

Domestic and Export Trade.............................................................................................18
Consumers/market Trends and Developments................................................................18
Marketing Systems / Channels........................................................................................19
Market Intelligence.........................................................................................................20
Margins and profitability.................................................................................................20
Marketing Constraints and opportunities........................................................................21

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Acknowledgements
The authors are thankful to the BAP Project (USAID) management for allocating resources for
the grape value chain study. Without management support it would have not been possible to
successfully complete this task.
Thanks to value chain participants namely farmers, pre-harvest contractors, commission agents,
wholesalers, retailers, consumers, transport companies, packaging suppliers, market committee
officials, Directorates of Agriculture (E & M), Punjab and Balochistan, and others for sparing
time and sharing relevant information.
Last but not least access to Government of Punjab website www.amis.pk was very helpful in
accessing information of market prices.

Authors

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Executive Summary
Grapes are among the main deciduous fruits produced in Pakistan, predominantly in Balochistan.
With an estimated annual production of 63,150 Tons, Balochistan contributes more than 98%.
Pishin, Quetta, Mastung, Zhob and Kalat are the main grapes producing districts. Out of 18 grape
varieties reported in Balochistan, four namely kishmish, shundokhani, haita and sahibi are
produced in bulk. These are sweet and match the local consumer taste. Non-traditional varieties
like ruby red & atom royal introduced in 1990s have not been popular due to sour in taste.
Grapes harvest starts in July and continues till October.
Poor production practices like trench cultivation, poor pest & disease management, over
irrigation and lack of nutrition tend to keep both productivity and quality low. The problems is
further compounded by poor harvesting & field handling, post-harvest management (pre-cooling,
sorting, grading, packing & transport) and marketing which results into produce losses and low
prices. Owing to low local consumption due to small population, grapes are mostly transported to
distant markets in the country. Poorly organized wholesale markets, lack of access roads, lack
market of contacts, poor financial resources prevent self-marketing leading to dependency on
pre-harvest contractors. The cumulative impact of poor production, post-harvest management
and marketing leaves little incentive for the small farmers to invest in best agricultural practices
for grapes.
The grape value chain study revealed that the distributive margins in a particular value chain
involving farmer, pre-harvest contractor, commission agent, Mashakhor/Pharia and retailer, an 8
kg box was sold at Rs.1850 at the retail level. This was the maximum value created. The
estimated share of market players (actors) calculated at 24.3% each for farmer and pre-harvest
contractor, 5.4% for commission agent, 10.8% for Mashakhor/Pharia and 35.1% for the retailer.
The way forward is suggested as follows:
Improve production practices - shifting to trellises system, effective pest & disease
managmenet, pruning, high efficiency irrigation system and plant nutrition management.
Improve harvesting & post-harvest management educating farmers on harvest maturity,
correct harvesting techniques, benefits of harvesting aids, temperature management in the
field, during transport & distribution, grading & packaging (cardboard cartons), efficient
transport (fast moving small trucks) & protection against sun/rain during transport, care
during handling, etc.
Improve marketing infrastructure wholesale & reatils markets improvement, storage,
pack-house and processing facilities.
Self-marketing linking farmers with the markets and bulding their capacity to benefit
from market opportunities.

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 Small farmers generally lack capacity to undertake self-marketing. Therefore, group

marketing should be promoted in the farm of collective marketing. The Project has
already tested it successfully. This lessons learned should be replicated.
Marketing credit farmer friendly institutional credit tools should be introduced to shift
from advances from the pre-harvest contarctors and commission agents that result into
farmers having on control on marketing decisions as well produce.
Timely and reliable market intelligence is essential for good marketing decisions that lead
to profitable marketing. Farmers should be trained in getting access to existing market
information sources, for instance, website www.amis.pk and how to productively use that
information.

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1. Description of Methodology
1.1. Tools Used

The methodology for grape value chain study comprised of different tools that were considered
necessary to obtain the data which will lead to the logical end. Accordingly, information was
collected both from the primary and secondary sources. The former included visits to field and
market, interviews with key informants and consulting printed data like Balochistan Agricultural
Statistics.
1.2.

Field Visits

Field visit were conducted in the production areas to obtain data on grape varieties, production
practices, orchard management including pests and diseases and their control, harvest season,
marketable surplus, marketing of grapes, constraints, opportunities, etc. Similarly, the fruit and
vegetable wholesale market was visited and information collected on supply and demand, prices,
quality of grapes delivered into the market, competitors,
issues,
method of sale, commission and other charges, etc.
1.3. Interviews

A checklist was prepared for collecting data in the

light of grape value chain dynamics. Use of
pre-structured questionnaire was avoided.
The respondents like farmers and traders
generally are not comfortable. The interviews
were held with the key informants. These
included farmers, pre-harvest contractors,
wholesalers (commission agents/arhatis),
wholesalers (mashakhors/pharias), retailers,
suppliers and labour.
1.4.

intermediate
transporters, packaging

Sources of Information

As mentioned earlier information was collected both from the potential primary and secondary
sources. The primary sources included as indicated under 2.3 above. The secondary sources
included Balochistan Agricultural Statistics and prices list issued by the Market Committee.

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2. Production
4

Production Areas and Volume

The climatic conditions prevailing in Balochistan are conducive for producing a range of
deciduous fruits. These include apple, apricot, grape, peach, plum, cherry, pomegranate, almond,
etc. Grapes is one of the major deciduous fruits produced in Balochistan. With an estimated
annual production of 63,150 Tons it ranks third in deciduous production in the Province.
However, its share in the national grape production is over 98%.
District-wise area, production and yield of grapes is given in Table 1:
Table 1: District-wise Area, production and Yield of Grapes
District
Quetta
Pishin
Killa Abdullah
Chagai
Loralai
Barkhan
Zhob
KillaSaif Ullah
Sibi
Ziarat
Kohlu
Mastung
Kalat
Khuzdar
Awaran
Kharan
Panjgur.

Total:

Area in Hectares
Bearin Non-bearing Total
g

Production
(Tons)

Yield In Kg/
Hectare

1,447
6,550
134
427
197
4
385
33
18
68
2
740
199
59
6
88
122

120
1,888
116
44
1
0
97
203
1
5
2
704
3
0
3
1,354
133

1,567
8,438
250
471
198
4
482
236
19
73
4
1,444
202
59
9
1,442
255

8,015
42,948
759
238
460
17
2,246
301
78
510
5
5,688
1,350
318
15
131
71

5,539
6,557
5,664
557
2,335
4,250
5,834
9,121
4,333
7,500
2,500
7,686
6,784
5,390
2,500
1,489
582

10,479

4674

15,153

63,150

78,621

The information presented in Table 1 shows that Pishin, Quetta, Mastung, Zhob and Kalat are
the main grapes producing districts. The yield levels vary from district to district and are much
dependent on production practices. Yield are however significantly lower than the grape
producing developed countries like Italy, Spain, China and USA.

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Map showing grape production areas in Balochistan is presented in Figure 1.

Figure 1: Map Showing Grape Production Areas in Balochistan

5

Grape Varieties in Pakistan (Balochistan)

There are thousands of varieties of grapes grown throughout the world, but all these varieties can
be classified as either European or American. European grapes have tight skins that adhere to the
fruit while the American varieties have loose skin, or slip-skin that easily slips from the fruit
when cut or bitten. Another classification also considers French-American hybrids as a third
category of grapes cultivars.
Grapes can also be classified as seedless or with seeds. Another classification is with respect to
use: table grapes for eating, grapes for making into raisins, grapes for use in commercial foods,
grapes for making wine or juice. Depending on the market for wine and table grapes, low quality
wine may contain some grapes that could also be sold as table grapes, particularly Thompson
Seedless. The choice of variety depends on a number of factors including its adaptation to a
particular area and the market demand.
There are about 18 grape varieties grown in Pakistan (mainly Balochistan). These include the
following:
1. Haita
2. Shandao Khani (also called Sunder Khani)
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3. Spin Kishmish
4. Sra Kishmish
5. Sahibi
6. Tor
7. Hussaini
8. Shekh Ali
9. Khal Chini
10. Kuddak
11. Askari
12. Flame seedless
13. Kings Ruby
14. Black Prince
15. Tandon
16. Sara Laal
17. Spin Laal
18. Kalamak
Of these varieties, kishmish, shundokhani, haita and sahibi are produced in bulk. These are sweet
and match the local consumer taste. Haita and Sahibi are seeded while other two varieties are
seedless. Non-traditional varieties like ruby red and pearlet were introduced under an FAO
project namely Transfer of Fruit Technology in Balochistan in 1990s but somehow or the other
have not been widely grown perhaps due to their a bit sour taste. Recently, a couple of varieties
from USA have been introduced like atom red and are fetching good price due to being early in
season. Some people consider that these are basically wine varieties and may not sustain.
Therefore, it is too early to comment on their future.
Pakistani consumer generally like sweet and seedless grapes. Therefore, kishmish and
shundokhani are the preferred choice.
2.3

Production Season

The harvesting of traditional varieties starts in August and continues till November. The newly
introduced imported varieties are harvested in June/July. Harvest maturity and accordingly
harvesting is also influenced by growing conditions. Generally, grapes at low altitude are
harvested early while at high altitude harvesting is late. A harvest calendar for different varieties
is presented below:
Harvest Calendar of Selected Grape Varieties in Balochistan
Variety

June

July

August
September
Traditional Varieties

October

November

Kishmish
Shundokhani
Haita
Sahibi
Source: Department of Agriculture, Government of Balochistan

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Details on variety productivioty, harvest season, berry size & colour, shape, skin, taste, etc are
given in Annex 1.
4

Farm Holdings and Production Systems

Farm holding are reported medium and small ranging between from 2 to 10 hectares. Grapes are
part of the production system where climatic conditions are suitable and irrigation water is
available. Overall production systems are characterized by the presence of a number of crops that
include wheat (main stale food), fruit orchards (apple, apricot, grape, peach, plum, cherry) and
seasonal vegetables (carrot, onion, tomato, cabbages, cauliflower). Melons are also commonly
grown in main grapes producing districts namely Mastung and Pishin. Similarly, livestock is also
part of the farming system.
2.5

Agricultural Production Practices

Grapes plants are basically creepers and therefore need support. Traditionally grapes are
cultivated on trenches system. The plants are planted at the bottom and the sides of the trench
provides support. A typical grapes trench cultivation system is illustrated in Figure 2:

Figure 2: Grapes cultivated on trench system

The trench system is mainly adopted due to lower initial investment (cost) and availability of
skilled labour. It is also easy to manage. However, it adversely affect grape quality due to having
direct contact with the soil and less aeration.
The trellises system requires comparatively higher investments but is more durable and may be
economical in the long run. Also, productivity is higher and quality of fruit much better due to
more aeration. Trellises system is illustrated in Figure 3:
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Figure 3: Grapes cultivated on trellises system

Grapes require severe pruning every year and are almost pruned to the main stem. The other
production practices include irrigation and plant nutrition management, and control of pests and
diseases.
2.6

Pest and Diseases

Leaf hopper and mealy bug are common insect pest that feed on the vines from the time leaves
appear in the spring until they drop in the fall. Powdery Mildew and botrytis are fungal diseases
reported on grapes. Root knot is caused by a gall-forming nematode which may become a
problem in sandy and sandy loam soils, resulting in a decline in vine vigor and reduction in
yields. Some of the pests and disease issues are illustrated through Figure 4:

Figure 4: Grapes pests and diseases

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2.7

Production constraints and opportunities

The main production constraints are as follows:

Water scarcity Grapes require irrigation. The depleting irrigation water sources is a
threat to future of grapes and hence corrective measures are required. Introduction of high
efficiency system should be seriously considered along with other water use efficiency
measures.
Poor cultivation system - Trench cultivation system is not efficient. Therefore, farmers
should be induced towards trellises system through cost share.
Limited varieties - More and improved grape varieties like Thomson seedless which has
batter market acceptance both in the domestic and international markets may be
introduced to increase choice as well time window,
Plant nutrition Farmers generally do not get soil analysis to determine nutrients
availability. This adversely affects plant health and in turn crop productivity. Plant
nutrients management should be promoted through soil analysis and use of micro
nutrients along with use of compost.
Poor pest and disease management Farmers generally address issues of pest and disease
when they have already attacked the plants. Also, quality of chemicals is poor due to
adulteration and sometime they are expired. Some farmers overspray in a panic which
causes residual toxicity. Instead, they should monitor pests and use a proper spray
program based mostly on preventive measures and more friendly control measures like
integrated pest management.
Lack of knowledge/skills - Farmers as well Extension Officers capacity should be built
through training in good orchard management practices (pruning, disease and pest
management, plant nutrition, etc) preferably through Farmer Field School Approach
(FFS) and extension material.

3. Harvesting, Produce Handling and Post-harvest Management

3.1

Harvest Maturity

Harvest maturity is critical to both eating and keeping quality of grapes. Harvest maturity is
visually determined by long at colour. Pakistani consumers like very sweet grapes and therefore
harvesting is done at an advanced stage of maturity which in other words will be considered late
harvesting. The brix levels will be 24+ as compare to 18+ generally recommended for a better
shelf life. Normally the fruit harvested will include a mixture of over ripe, ripe/mature, and
immature berries.

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3.2

Harvesting and Field Handling

Grapes are harvested manually with the help of a cutter. The harvested fruit is collected in a crate
and moved to a temporary site for production preparation inside the orchard. Harvesting is
generally done during the day and continues irrespective of consideration for the heat. Ideally it
harvesting should be done during cool hours of the day, preferably before noon. Also, shallow
plastic bins should be used for collecting the harvested fruit and its haulage to the product
preparation site.
3.3

Grading

Harvest fruit is collected at a central and shaded place inside the orchard for preparing the
produce for the market. Virtually no grading is practiced. However, sorting is done by removing
the crushed berries, insect infected and diseased fruits, severely sunburn and very immature fruit.
3.4

Packing

Packing is done in the orchard under the shade of tree or a temporarily structure (shed) made out
of farm waste, wood logs and thatched roof. Two types of packaging is used. It includes wooden
crates and cardboard cartons with filling capacity mostly around 8 kg, not actually weighed but
just visual assessment. The choice of packaging is determined by convenience of availability,
price of packaging, preference of the consignee (commission agent), distance from the market
and mode of transport. The typical issues associated with packing include use of wooden crate
having abrasive surface and nailing causing damage to the fruit, overfilling of the crate or carton,
and putting good quality fruit on top and poor underneath.
3.5

Transport

Generally relatively fast moving transport is used for haulage of grapes. This include pick-ups
and small (Mazda) trucks). However, the typical issues with respect to transportation include
overloading to reduce cost per unit, poor stowing, speeding on bumpy roads, no protection
against sun and poor loading and unloading. The poor transport practices are direct cause of
produce damage. Mazda truck loading process is illustrated through Figure 5:

Figure 5: Grapes loading on Mazda truck

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Poor road network is also a serious constraint in farm to market haulage of produce.
3.6

Cold Store

Cold storing grapes is seldom practiced. Prices are generally good and therefore preference is for
haulage of fresh produce. Also, cold storage facilities are poor and not properly equipped for
handling fresh grapes. Studies conducted in the past suggest that grapes can be safely cold stored
up to 3 months provided facility is good and grape guard (purpose manufactured sulfur pad) is
used in the packaging (carton).
3.7

Processing

No processing like washing and then drying and fumigation (Sulfur Dioxide) in a
drying/fumigation chamber is done for fresh grapes. However, processing is done for making
raisins by drying fresh grapes under the sun in the open. The drying practice very crude is
evident from Figure 6:

Figure 6: Sun Drying of Grapes into Raisin

3.8

Post-harvest Losses

Grapes losses on the basis of key informants opinion survey are estimated at 20 to 25%. These
losses mainly attributed to poor packing, transport and handling.
3.9

Post-harvest Constraints and Opportunities

Poor harvesting and field handling practices are a direct source of produce losses and issues
pertaining to quality of produce delivered into the market. These elements in turn tend to limit
value creation and keep the price received by the farmers low and therefore need to be addressed.
Following suggestions are made:

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 More accurate determination of harvest maturity. Use of Refractometer should be

introduced.

Digital Refractometer
Manual Refractometer

Develop and use harvesting and field handling protocols:

Harvest bunches of uniform maturity and berry

size using clean harvesting shears;

The harvesting process must be approached

carefully; the ripe, most evenly coloured bunches
are cut together. A few days later the next cut can
take place and again few days later the final cut. This
will ensure that grapes of uniform ripeness are cut and
packed together.

Harvest bunches into clean field crates or harvesting

bins, with preferably soft material (for instance, sponge)
in the bottom;

Do not overload the field crates or harvesting bins as this will lead to bruising, splitting
and loose berries.

Keep grapes as cool as possible and covered to contain moisture.

Clipping, Sorting and Grading - Currently the grapes are harvested and packed in the
vineyard with very little attention given to clipping and cleaning. It is recommended that:
Immediately after harvest the grapes are brought into the clipping and grading area
(shaded) and placed next to the clippers/packers. Clean clipping scissors are used to clip
grapes.

The clipper takes a bunch or cluster of grapes from the

field crate or harvesting bin, holding the cluster by the
stalk, and removes the berries which have defects:
sunburn, rot, decay, bird damage, insect damage,
Powdery Mildew, fruit fly or wasp damage, uneven
berries and any other defects that detract from the
general appearance and cause market unacceptability.

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Always handle the bunch gently when picking it up and putting it down; do not touch the
berries unnecessarily.

Be careful of scissors damage remove the berry if it has been pierced by the scissors, as
this would be an ideal place for Botrytis to set in.

Improve Packing

Strong, presentable (printed) cardboard packing should be used. Some specimens are
given below ( Figure 7):

Figure 7: Grape Packaging Designs

Metro suggested pouch packing (paper or ploy bag) for holding each bunch separately to
avoid damage during handling and transport (Figure 8)

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Figure 8: Pouch (left) and Punnet (right) Packing

The packer places the grapes into the container gently, trying to ensure that there is no
crushing and bruising of grapes.

It is important not to overfill the cartons but to leave about 25mm space at the top to
prevent bruising and crushing when the cartons are stacked one over the other.

Packed grapes must be kept in the shade until transported to the market.

Weighing

Cartons should be weighed at least on random basis to make sure that the weight
conforms to what is written on the carton.

Closing of Carton

Those responsible for closing the cartons of packed grapes must first check on the height
of the grapes in the cartons.

If there is a problem they must inform the packers to watch the packing height.

The plastic bag in the carton is then closed over the grapes by pulling the bag so that
opposite points of the bag can be folded over each other to ensure that the bag is as
airtight as possible.

The folds of the plastic bag are held in place with sticky tape.

Attention must be paid to folding the corners over neatly and getting a neat result.

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 Transportation

Grapes must be delivered to market as soon as possible after packing.

Preferably use reefer transport (0 to +10C with relative humidity at 85-95%) subject of
course to availability and economics; alternatively use pick-up or Mazda truck, travel
during cool hours.

Cover with a tarpaulin to stop the wind from drying out the grapes and stalks, thus
shortening their shelf life.

Cold storage select cold store having good infrastructure and business reputation; use
grape guard (sulfur pad) to improve storability.

1 Marketing
4

Market Demand and Supply

Grapes are in great demand in the domestic market. It is generally believed that countrys
demand for grapes is higher than the supply (production). With particular reference to
Balochistan, the province is net exporter (to other provinces) of grapes because local consumer
base is small having population of 8 million which is only 5% of national population. This tend
to keep the prices at reasonably good level.
Table 2 contains information on monthly wholesale (auction) prices of garpes for Lahore fruit
market for the years 2011 to 2013.
Table 2: Wholesale (Auction) Prices of Grapes in Lahore Fruit Market
Years July
August
September
October
2011
12,035
12,000
15,750
2012
11,838
12,000
13,280
15,130
2013
16,300
13,825
13,854
15,750
Source: Directorate of Agriculture (E & M), Punjab, Lahore

Rs/100 kg
November
18,123
15376

Prices trends are illustrated through Figure 9:

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Prices (100 KG)

2011

2012

2013

Figure 9: Grapes Wholesale (Auction) Market Prices Trend

It is evident from Figure 9 that grapes prices exihibted monthly and yearly variations. Prices
have shown an increasing trend over the years.
5

Domestic and Export Trade

Grapes produced in the country are mostly consumed locally. Only a few hundred tons grapes are
exported mainly to Bangladesh. On the other hand, the trade circles believe that around 20,000
tons of grapes are imported from Afghanistan, recorded and unrecorded. So in fact, Pakistans
local demand for fresh grapes is higher than production that is why there is a shortfall to be met
by Afghanistan. It may also be mentioned that grapes from China are also received via land
route, Khunjrab border. Moreover, small quantities of grapes are also imported by super stores
like Metro and Hyper Star from South Africa, Australia and other countries to serve the Pakistani
consumer during off-season.
6

Consumers/market Trends and Developments

Market is looking for seedless grapes over an extended period. This is duly borne out from grape
imports from South Africa and Australia when local production is not in season. The traditional
varieties come late in season and supply window is 3 to 4 months. Recently, early and low
chilling varieties have been introduced which are being cultivated in Punjab as well. However,
their production is small and also taste not conforming to local consumer. They taste sour while
Pakistani consumer like sweet grapes. The newly introduced varieties however enjoy seasonal
advantage because they are harvested early and therefore sell. Since they are colorful and good
looking, are eye catching and get consumers attention. This too improves their marketability.
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Marketing Systems / Channels

The marketing channel for grapes involves a series of middlemen who operate at different stages
of the value chain that moves grapes from farmer to ultimate consumer as illustrated through
Figure 10.

Farmer
Commission
Agent

Pre Harvest
Contractor

Mashakhor/
Pharia

Domestic
Retailer
Domestic
Consumer

Exporter

Overseas Retailer

Importer

Overseas
Consumer

Figure 10: Marketing System for Grapes

The farmers mostly sell their orchards to the pre-harvest contractor due to lack of marketing
skills and market linkages. Self-marketing will enable them to enhance their sales on account
retaining margin earned by the pre-harvest contractor, and more importantly supplying grapes
according to market preferences, a demand driven response, and then adjusting his production
systems accordingly.
The commission agent is considered a linchpin in the marketing system. Apart from facilitating
sale of produce, he finances the farmers and pre-harvest contractors through advances,
apparently without any collateral and formal agreement, and by doing so he has control on the
produce by obligating them to sell grapes through him. Losing control on produce prevents
farmers to benefit from better price opportunities within the same market or elsewhere.
Distant location of wholesale markets is also a constraint especially for the small farmers who do
not produce economical loads.

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Market Intelligence

Marketing intelligence is crucial for rational marketing decisions. The Directorate of Agriculture
(Economics and Marketing), Government of Balochistan, collects wholesale (auction) prices
through Market Committees. This information however is used for official use only. Its
dissemination to the potential users including farmers and traders is nonexistent mainly due to
the absence of mechanisms. Also, prices pertain to Quetta market while bulk of the produce is
sold through wholesale markets in other provinces like Karachi, Hyderabad, Multan, Faisalabad,
Lahore and Islamabad.
There is no price collection and dissemination system in Sindh. The prices collected by the
Market Committees rest in their offices. Contrary to Balochistan and Sindh, the Punjab Province
has some system for prices collection and dissemination in place. The daily wholesale (auction)
and retail prices are collected through the Market Committees for over 50 regulated wholesale
markets. These prices are standardized in 40 kg and 100 kg units for wholesale and one kg for
retail trading. Apart from official use, these prices are posted on website www.amis.pk and also
disseminated to registered users through SMSs. In addition, these prices are used in monthly
printed bulletins.
In the light of above, farmers had to rely on the commission agents for the market information by
making telephonic calls. The market information supplied by the commission agents is
influenced by their business interest and hence not credible. The small farmers either sell their
produce to pre-harvest contractor or consign to a commission agent from whom he has obtained
advance, thereby leaving the outcome at the mercy of the consignee.
9

Margins and profitability

The marketing margins reflecting share of every market actor in the studied grapes value chain
are presented in Table 3 and also illustrated in Figure 11:
Table 3: Marketing Margins in Grape Value Chain
S.
#

1
2
3
4
5

Market Player/Supply Chain Actor

Farmer
Pre-harvest Contractor
Commission Agent (Arhati)
Mashakhor/Pharia
Retailer

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Share in Value Created (Retail Price) for 8

kg Carton/Box
Price at
Share of Value
%
Different Chain Partner
Stages
450
450
24.3%
900
450
24.3%
1000
100
5.4%
1200
200
10.8%
1850
650
35.1%

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%age Share - Grapes

Farmer

Pre-harvest Contractor
24%

35%
Commission agent
11%

Pharia/Mashakhor
24%
5%

Retailer

Figure 11: Marketing Margins Shared by Supply Chain Partners

The highest margin at retail level is attributed to perishability of the produce exposed making it
susceptible to physical produce and consequently financial losses which are passed on to the last
market player (actor) of the chain and are accounted for accordingly.
10 Marketing Constraints and Opportunities

Grapes in great demand in the country. However, there are marketing constraints that tend to
adversely affect the value creation (retail price) and its distribution among the actors/players.
These are briefly discussed as follows:
Farmers sell orchards to pre-harvest contractors and obviously get price lower than
selling direct into the wholesale market. This decision is prompted by lack of skills and

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market linkages. It is suggested that farmers should be encouraged and facilitated to do

self-marketing by overcoming his foresaid weaknesses.
Those farmers who sell direct but obtain advances too are not fully benefitting from
market opportunities. They are obliged to sell through the commission agent who gave
advance and therefore lose control on marketing decisions. Such farmers should be
guided in improving their cash flow by retaining part of sales through a phased program.
Small farmers generally lack capacity to undertake self-marketing. Therefore, group
marketing should be promoted in the farm of collective marketing. The Project has
already tested it successfully. This lessons learned should be replicated.
Timely and reliable market intelligence is essential for good marketing decisions that lead
to profitable marketing. Farmers should be trained in getting access to existing market
information sources, for instance, website www.amis.pk and how to productively use that
information.

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