UNIVERSITY OF AGRICULTURE, FAISALABAD

Institute of Business Management Sciences

Synopsis for MS (Management) Agribusiness Degree

Title: Dynamics of Banana Value Chain System in Pakistan

Name of student : Ahmad Bilal

Registration No : 2011-ag-2995

Abstract
Banana is one of the major fruit crops in Pakistan. It contributes to socio economic development
of the country, especially in the rural areas of Sindh being the largest banana producing province
and there is a lack of livelihood generating activities in local societies of this province. Area
under banana cultivation is about 27.8 thousand hectares while the production of banana is 118
thousand tons in Pakistan. Sindh contributes 87 percent of the total production with a production
of 101 thousand tons. There are many challenges that are facing by many actors participating in
banana value chain system. Number of cost and quality issues often prevent Pakistani producers
from transporting their produce to market. Post-harvest losses in banana account for about 30-
40%. The present study is designed to map the relationships among various stakeholders
involved in banana value chain system in Pakistan. This study also intends to evaluate economic
benefits along the entire value chain and investigates various constraints in the value chain
system of banana in Pakistan. Areas chosen for my study are rural Sindh and central Punjab
provinces of Pakistan. Primary data will be collected from all key stake holders involved in the
banana value chain system in Pakistan. Appropriate statistical techniques will be employed to
analyze the collected data.
 UNIVERSITY OF AGRICULTURE, FAISALABAD
Institute of Business Management Sciences
Synopsis for MS (Management) Agribusiness Degree

TITLE: Dynamics of Banana Value Chain System in Pakistan

Date of admission : 08-10-2015

Date of initiation : 22-10-2015
Probable duration : 6 months

II. PERSONNEL

a) Name of the student : Ahmad Bilal

b) Registration No. : 2011-ag-2995

III. SUPERVISORY COMMITTEE

Dr. Burhan Ahmad : (Chairman)

Dr. Abdul Ghafoor : (Member)

Dr. Hammad Badar : (Member)

 1. Introduction
Pakistan has blessed with the four seasons, five rivers and greatest productive land by
Allah. This land has an efficient amount of nutrients which are enables this land to grow all types
of agricultural fruits. Agriculture sector is the most important part of the economy of Pakistan.
Main focus of agriculture sector is provision of food security for our people relatively the
maximization of production. Agriculture sector is contributing almost 23.4% of GDP in the
economy of Pakistan. Approximately 70% of total population of Pakistan lives in rural areas is
directly or indirectly dependent on this sector. Almost 45% work force of the economy is
engaged in this sector.

Horticulture sector is one of the important sector in the agricultural economy of Pakistan
and fruits comprise an important position as subsector of horticulture. Fruits can be cultured in a
numerous different agro environmental zones among Pakistan, ranging from semi-arid to sub
humid zones, and cultivates in regions that are frequently not appropriate for different cash
harvests. Fruits share in GDP of Pakistan is increasing day by day as well as its share in exports.
Fruits exports in the year 2016 raised at 38.5 million dollars compared with the exports of 21.3
million dollars in 2015 (PBS, 2016).

Banana (Musa acuminate) is one of major fruit produced in Pakistan. Area under banana
cultivation is 27.8 thousand hectares while production of banana is 118 thousand tons in
Pakistan. Banana cultivation required specific climatic and soil conditions, which are mainly
favorable in Sindh province of Pakistan and it contributes 87 percent to the total production of
banana in Pakistan. Banana is a palatable produce grown by numerous kinds of huge herbaceous
blossoming plants. In specific states, bananas are consumed for cooking also known as plantains.
In different countries banana have different quality attributes e.g. color as green, red, purple and
yellow or brown when ripe size, (curved and elongated) and firmness. Banana fruits are
harvested in cluster shape at the upper part of plant. Musa balbisiana and Musa acuminata are
modern and most cultivated varieties of banana in Pakistan (GOP, 2015-16).

The major areas of banana production consist the northern and central Sindh districts
(responsible for 87 percent of national banana production), total 43.5 % of labor involved in
agriculture directly or indirectly (Ghani, 2012) e.g. Whole seller, retailer, consumer, commission
agent, broker end to the final consumer. The two main varieties of mango produced in Pakistan
include Apple (50 percent of produce from Eastern Region) and Ngowe (49 percent of produce
from Coast Region). There are over 200,000 small-scale farmers that derive their livelihood from
banana production (Sennhenn et al., 2010).

Exports potential and demand for Pakistani fruits as well as banana is increasing day by
day. Pakistan is exporting 58.8 million tons of banana every year which is a major portion of
fruit exports during the last ten years banana exports has been increased by 26 times
(Government of Pakistan 2014). Value of banana per unit is 438$ in our country with respect to
world total value which is 91% (Zahoor and Marcos 2014).

During input marketing of banana production, farmers face many challenges like access
to eminence imbedding material, orchard management, market access and different pests and
diseases. Bananas are also very important Driver of growing fruit processing industry or export
and domestic markets. Banana processing plants face deficiency of raw material suitable, due to
shortage of premium quality bananas (Rahman et al., 2014). Pakistan’s banana sector is facing
some serious problems from production to post harvest yield management and export promoting.
Due to imperfect awareness and technical identify how around this sector, our basic purpose of
this director is to deliver technical assist to producers, post-harvest executives and exporters in
order to overcome post- and pre-harvest issues and improve quality and production of banana for
foreign as well as local markets while safeguarding improved profitability for banana producers.
It contains the information about banana diversities and their prospective, banana disease
executive particularly banana bunchy top virus, nutrient controlling in banana, pre-harvest
banana group care, banana cool chain supplies, and also to start actual linkages among the key
actors in banana value chain executive including production, post-harvest executive and
marketing of banana (Amin et al.,2008).

Objectives

The specific objectives of the study are as follows:

1. To map the existing banana value chain system in Pakistan.

2. To examine the distribution of economic benefits among value chain actors from farm to
market.
 3. To identify major constraints affecting the performance of banana value chain system in
Pakistan and needed improvement measures.

2. Review of Literature

Kulkarni et al., (1983) elaborated that stress—straining curve on behalf of banana fibre
was determined. Assets such as ultimate tensile strength (UTS), primary modulus and ratio
elongation were evaluated as a purpose of fibre thickness, test size and speed of analysis.
These observed assets were explained on basis of internal arrangement of namely, fibre,
number of cells, number of defects and spiral angle. Perusing electron microscopic (PEM)
studied of the cracked outsides of these fibres shows that the failure was due to jerk-out tiny
fibrils accompanied by ripping of cell walls; the tendency for fibre jerk-out appears to
reduction with growing quickness of testing.
Smith et al., (2000) conducted a survey of wheat and mango in Sindh value chain system.
This paper documents examples of corruption in agricultural markets and assesses their
relevance to the case for greater market liberalization. In developing economies perceptions of
the performance of marketing systems and the potential benefits of liberalization were often
clouded by the extent of corruption, which tends to reinforce popular negative stereotypes of
private market intermediaries. Available evidence favors further market liberalization, but
investigation of corruption reveals that the sequencing of reform and balance of residual
regulation by the state must be carefully evaluated.

Sturgeon (2001) elaborated that to make a contribution by setting a bunch of techniques

that would be assist development of the argument on the outline and path of international
monetary integration. By following value chain methodology to build a set of theoretical
concepts and terms envisioned to improve agree the solid actors in the universal economy like
the connections that drag them into a greater whole. He also specified many value chain
dimensions e.g. organizational scale, productive actors of value chain and geographic scale. The
article similarly lays obtainable a difference between production network and value chains.

Calvin et al., (2001) explored that three post-harvest rots viz. Crown rot, Anthracnose and
Cigar end rot were found to be more prevalent in the banana hands collected from Storage
godowns, whole sale and Local markets. Crown rot disease was the most common disease
affecting banana hands in more than 90% of the localities followed by anthracnose and cigar end
rot. A total of 26 fungi were isolated from the rotted banana hands of which Colletotrichum
musae and Verticillium theobromae caused anthracnose and cigar end rot when inoculated singly
and in combination with Fusarium pallidoroseum, Lasiodiplodiat heobromae produced crown rot
only.

Ngambeki et al., (2008) explained banana marketing alterations, elaborated that banana
marketing structure in Uganda was very complicated, with a lengthy value chain of different
actors from growers to end consumers. Studied about the market shares of banana as well as
gross margins in western and central Uganda revealed that upcountry brokers and agent’s market
share obtained 35% of the customer market price, whereas farmers’ market share was only 20%.
Around 11% of growers were retailing as familiar groups, earning 44% of the retailers’ price at
the closest loading center. In which 19% of growers organized obsessed by cooperative
marketing groups.

Carvalho (2009) elaborated that trade practices among the fresh produce transporters and
food sellers obtained national attention in previous few decades. Transporters were concerned
that modern retail alliance had led to growing rate of services, fees and market power. Retailers
argued that these modern trade practices return to the responsibility of business costs as well as
the consumer demands. Maximum retailers and shippers cultured that the services and dues of
incidence, magnitude and associated by businesses had enlarged over the last decade. Evidence
on the occurrence and degree of these new applied was rare. We established a great level of
intended collaboration from the cross-examined companies.

Matere (2009) analyzed the socio-economic factors that influenced smallholder banana
growers’ contribution in marketing association. Net margins of numerous marketing channels
were also being calculated to conclude the effect of the contribution on growers’ net income.
This study concluded that banana growers operate in one environment of insufficient business
growth services that bounds their capability to contribute in marketing relations. There was
informed irregularity in the banana marketing; only brokers and not manufacturers had access to
complete market knowledge. There was necessity for strategies to support access and provisions
to market knowledge to increase transparency in the banana marketing. The Government would
set policies to support provision of adequate farm business growth facilities.

Liu (2009) said that there was an increase in fresh fruits which were being sourced from
developing countries but its proportion is declining due to smaller scale producers. Because
super markets were increased their buying power and demanding more low prices and exceeding
the services from traditional to best practices. Therefore, governing intermediations developed
by public authorities that were aimed for deceasing buyer power of super markets resulting in
that scenario in different countries like South Africa, European union and France.
Umagowri and Chandrasekaran (2011) said that India was the biggest producer of banana
producing in the world, estimating for 20.08% of world’s production (15.9 million tons).
Consequently, the study was implied the following: to avoid the post-harvest losses there was
essential for working out in the post-harvest treatment of fruit groups; to enhance the marketing
capability, the growers would sold their production directly to supplier or connection with
processor or seller somewhere feasible; and growers must had the advanced market awareness,
for taking superior sales decision.
Warsanga and Kilimanjoro (2014) argued that solid organization and construction of
agri-food assessment chain increased smallholder growers’ access to store donations and markets
for their yields which in turn to improved marketing and production effectiveness of agri-food
yields.. The whole results elaborated that, the lack of agreements had led perpendicular
coordination amongst actors of the banana value chain to be weak; the loose organization avoid
actors to appreciate the economic reasons of value chain of resulted farmers did not delivered
enough bananas traders and processors. This study recommended the establishment of horizontal
and vertical coordination amongst actors in command to had strong value chain construction for
efficiency developments.
Titang (2015) elaborated that the core objective of this study and its resultant exploration
and discuss the involvement to the growth of the Cameroon economy of the banana export
sector. The paper grants and employs records for the years 2002-2012, composed from the Food
and Agricultural Organization's Banana market Evaluation & Information Paper (FAOSTAT)
and the World Integrated Trade Solution (WITS) Database. He used qualitative approach and
WTS model, findings showed that export of banana and product has significant impact on
economic growth. Moreover, the additional study discovered that enlightening upon the
dangerous economic and established comfort of minor estimate banana producers but export
sector too, will enhance the efficiency base and excellence of banana assignments, which will
therefore distress trade and industry growth. According to these results, it is suggested that size,
efficiency and excellence of banana transfers will be increased; and low income producers of
exports be combined in strategy making and growth of this farming segment so as to attain
advanced economic development charges in Cameroon.
Mehdi et al., (2016) stated that the whole of chain approach makes a comparison of
premium quality techniques mango value chain with conventional value chain. He discovered
that mango marketing system was mostly driven by reserved hands. Circulation of best
techniques quality mangoes at the modern retailers markets was insufficient due to lack of
marketing skills therefore; they were incompetent to maintain constant distributions. Although
the auction created marketing system had numerous issues like information access, contract
enforcement and bargaining that decreased the farmers’ profit up to 38% and therefore, their
inspiration to produce best quality mangoes decreased. So, through finest quality mangoes, the
Trader, advanced retailers and Growers, can easily attained a good price than conventional value
chain.

3. Research Methodology
The present study is designed to map the relationships among various stakeholders
involved in banana value chain system in Pakistan. This study also intends to evaluate economic
benefits along the entire value chain and investigates various constraints in the value chain
system of banana in Pakistan. The study will be conducted in Sindh and Punjab province which
is best banana producing and marketing regions. Different actors like producers, contractors,
wholesaler, exporters and retailer will be surveyed in both provinces to collect the data using
well defined and pre-tested questionnaires. A sample of about 150 respondents comprising
various stake holders in the banana value chain system producers and consumers will be selected
through appropriate sampling technique. Appropriate quantitative and qualitative statistical
techniques will be employed to analyze the value chain system. Further present study will
suggest policy recommendations to different stakeholders. Results will be presented in the form
of thesis.
4. References
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Calvin L., Cook, R. L., Denbaly, M., Dimitri, C., Glaser, L., Handy, C., & Thornsbury, S. 2001.
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