ME-Pak Agriculture and Dairy Investment Forum
FAROOQ PARACHA
The 5th largest producer of milk having the world’s 3rd largest herd of animals, Pakistan is in the forefront of an investment forum featuring agriculture and dairy, being held in Dubai at the end of this month.
Reflecting rural Pakistan as the Land of Opportunities, arid using a quote from US President Franklin D Roosevelt, “This great nation will endure as it has endured, will revive and will prosper.” This forum comes at a most auspicious time, when a new government is taking shape and real investment and JV opportunities in this sector will play a big role in the economic success of Pakistan for the next couple of years.
Pakistan was listed one of the major emerging markets in the world economy, placing the country on a list of 25 countries displaying continued moderate to strong growth over a sustained period of time. Morgan Stanley in its June 2006 Economic Survey reported about Pakistan, “Its economy has been growing quickly in recent periods and corporate direct investors have taken notice.” It is important to note Merrill Lynch stated, “Political changes are not likely to derail economic progress. Key sectors are either deregulated or straightforward in terms of desired direction.”
The day-long Middle east-Pakistan Agriculture and Dairy Investment Forum, scheduled for 29th April, 2008, at the Madinat Jumeirah Hotel in Dubal, has been sponsored mainly by Tetra Pak, besides other ME companies. Expected to attend are leading businessmen from Pakistan, UAE, Saudi Arabia and Oman. Notable among the businesses that will be participating in this forum are the Al Rable Group, Nestle, Haleeb Foods, Shakargang Foods, Awal Qatfa, De Laval, Mapservices Group and Tetra Pak. The Pakistan Dairy Association is also taking keen interest in this event. Arrangements have been made for compatible businesses to come together to exchange contacts, experiences and network with a view to generating investments and JV opportunities.
The agenda includes presentations by multinationals on their investment experiences and future interest in Pakistan s dairy/agri sector; presentations by Pakistani businesses highlighting high return opportunity areas for attracting investment and JV partners in the sector and presentations by Gulf investors on their interest and need analysis on the Pakistan dairy/agri sector and several session for B2B meetings.
A comparative analysis of regional growth rates by World Development Indicator 2006 highlights Pakistan agri-sector’s growth of 4.6% that is second only to China’s 5.0%. India and Malaysia have grown at 3.0% arid 3.1% respectively. The ROI in some of the dairy/agri products is the best not only in the region but also globally. Pakistan is the world’s largest producer of oranges variety. It ranks in the top five producers of the world in mangoes and dates. Additionally, the potential in crops like cotton, rice and sugar has earned directly or indirectly more than 70% of total national exports. Livestock contributes almost 27% of Pakistan’s agriculture sector. The total value of milk produced in Pakistan is higher than its major crops i.e. wheat and cotton. Azhar AliSyed, MD Tetra Pak Pakistan, commenting on the forthcoming forum, underscored the lucrative business opportunities available for investment in various areas of the milk supply chain. With the milk processors struggling to fulfil demand, the need of the hour is to focus & invest heavily into mega farming. This moot is designed to serve this objective.
In choosing the Middle East as the ideal location for the Middle East-Pakistan Agriculture and Dairy Investment Forum, the current oil boom plays a defining role. Especially if we take into account that up to 2030 and for $50/barrel, it Is expected oil revenues would be: $13 trillion for Saudi Arabia, $24 trillion for GCC and $38.5 trillion for OPEC Middle East. The current surplus 2005-2007 for GCC alone is $585 billion. Most GCC foreign investment is directed towards Asian economies. Pakistan has received substantial share of GCC investments in financial services, telecom and real estate. Agriculture and dairy will be a win-win for both countries. Pakistan has some of the highest returns in the sector and GCC imports 90% of its agri-dairy needs.
They say that opportunities are never lost; someone will take the ones you miss. The participants at this investment forum will have a definite head start to take the emerging opportunities in this field, with the best in the business present to show the way forward.
http://www.nation.com.pk/daily/Apr-2008/9/bnews10.php