Home »Business and Economy » Pakistan » Value addition can turn pine nuts into a major earning product: study
Value addition, use of proper collection tools and skilled labour can boost the value and turn pine nuts properly known as Chilgoza in the local market into the potential income earning product and provide more benefits to the growers and processors, said a study conducted by Small and Medium Enterprises Development Authority (SMEDA).

Pine nuts is an important nut both in Pakistan and international markets and generally it sold around Rs 2500 to Rs 3000 per kilogram whereas the traders sell it at an average rate of Rs 1500 to Rs 2200 per kilogram by purchasing it from formers at the average rate of Rs 800 to Rs 1500 kilogram in South Waziristan. The price varies according to the pine variety.

The pine nuts trees grow across North America, Europe & Asia is important food source for thousands of years. Roman soldiers took them as campaign food when they raided Britain over 200 years ago. Even before that Greek authors mentioned pine nuts trees as food producers around 300 BC, and is thought that earlier societies used them and transplanted them throughout 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 that contain a wide variety of nutrients such as proteins, vitamins and minerals that are essential for maintaining optimal health. Additionally, the presence of anti-oxidants makes pine nuts more useful in the treatment of certain health disorders. Helps to boost energy, vision and anti-aging and being used extensively as healthy ingredients in the food and beverage industries in the 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 nuts 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 metric tons 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 MT each.

Improving economic conditions, 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 percent during the period 2017-2021.

Pine nut is found in western Himalayan forests of Pakistan have similar appearance as stone pines; featuring long slender ad pointed kernels. Suleiman Range contains the world's largest pure stand of pine nuts is spaced over 260-Kilometer. These forests play an important role, providing both ecological environment services besides being a credible source of income to local communities.

However, due to increase in population coupled with lack of alternate livelihood opportunities. Pine nuts forests are under constant pressure for timber. Compared to poor quality timber for which pine nuts 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 after China and 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, United States, United Kingdom, Scandinavian countries, Middle East and European countries.

In season 2015-16, Pakistan produced 3000MT (kernel basis) of pine nuts products that represents 15% of its global production of 19,600MT. China remained the major pine nut producer despite the sharp decrease, with a crop of 5,000 MT, it accounts 26% of world's total pine nut production. China was followed by the Russain Federation (4500 MT, 21% share) North Korea, Afghanistan and Pakistan.

Nearly 20% of the Pakistani forests contain of Chilgoza trees. These forests are found in Khyber Pakhtunkhwa, Balochistan and Punjab (Murree and Kotli Sattian hillsides) and Nothern Areas ie in Gilgit and Kashmir. In Khyber Pakhtunkhwa, major pine producing forests are in South Waziristan.

South Waziristan is a mountainous area that borders with Afghanistan and covers an area of approximately 6,620 square kilometer. Main markets of South Waziristan produced pine nuts are Bannu, D.I. Khan, Peshawar, Rawalpindi and Lahore from where these pine nuts are further supplied to other national and international markets.

South Waziristan produced around 5000 tons of pine nuts annually that accounts for nearly 85-90% of the Pakistan's pine nut produce. Pine nuts grow under special weather conditions and in specific region therefore regards as rear and precious commodity. However, the sector and trade is unorganized and in the recent past, after flushing out militants from both North and South Waziristan, the Pakistan Army had taken several steps and actions for the betterment and development of the pine nuts sector in the region.

Market research analysts predict that the global pine nuts market will grow steadily at a compound annual growth rate of around 21% by 2021. This market research analysis identifies the convenience of consuming pine nuts as one of the primary growth factors for this market.

The consumers are dealing with a consideration shift in the lifestyle and dietary habits and are unable to prepare food from scratch. Consequently, the consumers are increasingly preferring convenient food that fulfills their daily nutrition requirement, are easy to eat an can be consumed on-the-go. This increase the preference of pine nuts especially by people suffering from obesity and diabetes as the are high in nutrition and are convenient to eat.

The players in the market are introducing new flavours to attract customers and the pine nuts are now used in chocolates, trail mixes, toppings for salads and pasta dishes. Additionally they are used in salads, main courses and desserts as a healthy topping. The demand for pine nuts as a flavouring agent will be one of the key trends that will gain traction in the pine nuts market during the next five years.

In South Waziristan, the collectors sell their nuts in the local markets to the agents of the wholesale market. The traders in the local markets of South Waziristan pay 50% of the amount at the time of transaction and the remaining 50% is paid after one to two months and sometime for even longer time. The local traders in South Waziristan do not charge any commission as they purchase themselves and delay 50% payment for one to two months and sometimes for even longer. Commission rate in various other markets varies from 2 to 2.5%.

No branding practice is followed by farmers and local traders too. Farmers are unaware of the branding concept and its importance in marketing of the produce.

Copyright Business Recorder, 2019


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