Professional Documents
Culture Documents
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
4 SUPPORTING INSTITUES…………………………………………………………………………………..P#12
4.1 Pak Army………………………... ……………………………………………P#13
4.2 Public Sector Line Departments ……………………………………………P#13
4.3 Associations …………………………………………………………………..P#13
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
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.
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Value Chain Study of Pine Nuts in South Waziristan, Khyber Pakhtunkhwa
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,
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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.
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.
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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.
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.
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Value Chain Study of Pine Nuts in South Waziristan, Khyber Pakhtunkhwa
• Cone Picking
• Pine nuts extraction By Growers/Farmers
• Classification/Grading
• Roasting By Traders
PROCESSING
• Pilling
•Packing
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Value Chain Study of Pine Nuts in South Waziristan, Khyber Pakhtunkhwa
According to the survey conducted, size of the forests/farms possessed by the farmers;
3.3 Processing
The harvesting season start in mid of August till the end of September every year. The harvesting of the pine cones
is done manually. The tool used for cone harvesting is locally called Nakash. The men climb up the tree and harvest
most of the cones (75-80%) in the first pick and the remaining 20-25% within two weeks’ time. Usually 15 persons are
required in harvesting of 150 Kanal forests whereas twelve (12) persons (male) climb up the trees and harvest the
cones while three (03) women assist them in collection of cones on the ground and filling of bags. The average yield
per tree is 3-5 Kilogram. Growers do not use appropriate techniques to cut the cones from trees and to cut the cones
from trees and resultantly considerable cone damage occur which affects the cone’s yield of next generation
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Value Chain Study of Pine Nuts in South Waziristan, Khyber Pakhtunkhwa
The harvested cones are buried into soil for 10-15 days and then brought to sunlight for drying. Then the cones bring
to collection point and dumped in mass in a room and covered with trash and tarpaulin. After drying, the cones are
putted on a cot (locally called charpai) and crushed with sticks (locally called spetta) to extract the nuts. During these
crushing/extracting process breakages of some nuts occurs and some nuts remained there in the lower side of the
cones. Generally, there is no special tool used to extract these left over nuts from the cones and the cone collectors
remove them with sharp wooden supports. Nuts damage affects the yield to a large extent. By using proper collection
tools and skilled labor the wastage may be minimized to a reasonable limit.
After extraction of nuts, the cones are mostly used for burring purposes. Re-use of these cones observed to a little
extent. Awareness and trainings can be provided to re-use the discharged cones for various other uses and purposes.
3.3.3 Classification/Grading
Proper grading of pine nuts products is not carried out by the Pine Nut collectors. The smashed pieces of nuts and
cone are removed manually. Different sized sieves and locally made "Chajj" are being used for grading and cleaning
purpose. However, keeping in view the international and regional best practices, classification can be performed on
take out nut products. Various standards exist to recognize the quality of Pine nuts, if adopted can fetch higher prices
as well as boost the prospects of export.
3.3.4 Packing
Pine Nuts packaging is mostly done in 80 kg of gunny hand bags/carriers. The price of empty bag is Rs. 70-100.
Improper packing and handling practices is one of the reasons for high post-harvest losses. The total post-harvest
losses (packaging, storage, handling, transportation, etc.) may be as high as 30-40% of the total produce.
Conclusively, growers do not use appropriate techniques to cut the cones from trees and resultantly considerable
cone damage occur which affects the cones yield of next generation. Similarly, wrong methods of extracting pine
nuts from cone and while grading and packing of its nuts make it more vulnerable.
Note: Labor charges at an average for cone harvesting, collection, extraction and packing is Rs. 1000/Day.
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Value Chain Study of Pine Nuts in South Waziristan, Khyber Pakhtunkhwa
3.4 Market
Global Pine Nuts Market: Market research analysts at predict that the global pine nuts market will grow steadily at a
compound annual growth rate (CAGR) 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 considerable 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
and can be consumed on-the-go. This increases the preference of pine nuts especially by people suffering from obesity
and diabetes as they are high in nutrition and are convenient to eat.
The players in the market are introducing new flavors to attract customers and the pine nuts are now used in chocolates,
trail mixes, toppings for salads and pasta dishes. Pine nuts are increasingly used in different ways such as in sweets,
salads, cakes and many savory dishes. Additionally, they are also used in salads, main courses and desserts as a
healthy topping. The demand for pine nuts as a flavoring agent will be one of the key trends that will gain traction in the
pine nuts market during the next five years.
The market is highly competitive and fragmented due to the presence of several mid and small-size vendors. The
players in this market space compete in terms of factors such as price, quality, innovation, service, reputation,
distribution and promotion. The market is severely impacted by the changing consumer demands and economic
changes in the standard of living. Due to low product differentiation, the players are needed to distinguish their product
and service offerings through a clear and unique value proposition.
In South Waziristan, cone 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 Wazistan 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%.
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Value Chain Study of Pine Nuts in South Waziristan, Khyber Pakhtunkhwa
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.
Pine nut is an important nut in Pakistani markets as well, and generally it sells around Rs. 2500 to Rs. 3000 per Kg
whereas the traders sell it at an average rate of Rs. 1500 to Rs. 2200 per Kg by purchasing it from formers/growers at
average rate of Rs. 800 to Rs.1500 Kg in Waziristan. The price varies according to the pine variety.
The process of value addition will boost its value and provide more benefits to the growers and processors of the region.
Local Markets
Bannu-Azad Mandi (Largest Market) Dera Ismail Khan
National Markets
Lahore (2nd largest market), Peshawar (3rd largest market)/ Rawalpindi and Other Cities
International Markets
China, US, UK,Scadinavian Countries, Midle East and Europe
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Value Chain Study of Pine Nuts in South Waziristan, Khyber Pakhtunkhwa
4. SUPPORTING INSTITUES
Pak Army has recently been established the colossal Wana Agri Park in South Waziristan of 1000 metric tons cold
storage capacity at a cost of Rs. 880 million spread over 350-kanal land with all basic infrastructure. The facility is located
on the road leading to Angur Adda, one of the region’s major border crossings. The Agri Park Project in Wana, aims to
incubate local agri business potential and reduce wastages that occur during the process of harvesting, storage and
transport of fruit and vegetables. Current indicators suggest that between 25-30% of agri produce is wasted due to lack
of facilities and formal training in farming, harvesting and transporting techniques. Agri-Park will enable the farmer to get
exposed to formal training, facilities and the consumer, resulting in the overall socioeconomic development of SW and
Wana in particular.
The project features FATA's first cold storage, pine nut processing plant, tomato processing facility along with fruit and
vegetable warehouses and market places. Accommodation and amenities for resident staff is inbuilt. The complex also
had 128 shops for the local traders.
The pine nuts came from Afghanistan and locally produced now routed through Agri Park Wana for quality checks,
weighing and record purposes where the bags are properly stamped and then allowed to dispatch outside South
Waziristan. The Afghanistan produce is charged @ of Rs. 100/Kg whereas local produce is checked free of cost.
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Value Chain Study of Pine Nuts in South Waziristan, Khyber Pakhtunkhwa
Federal Departments;
• Directorate of Forests FATA has been working for the development and promotion of forestry, soil conservation
works, watershed management, wildlife conservation and sericulture.
• FATA Development Authority was established as a specialized development organization in 2006 with the aim to
harness abundant human resource and exploit and add value to equally abundant natural resources of the area so
as to create economic and employment opportunities in FATA. FATA Development Authority has trained about 1500
local pine nuts SMEs/Growers/Processors/Traders with the teamwork of WAWA-Wana Welfare Association.
Provincial Departments;
• Forestry, Environment & Wildlife Department of Khyber Pakhtunkhwa is striving to improve the Forests, Environment
and Wildlife through development & application of innovative technologies in Forests, Environment and Wildlife and
efficient management of natural resources.
• Forest Development Corporation (established in 1977) is working for economic & scientific harvesting of forests,
sales of forests products, regeneration and establishment of wood processing units.
4.3 Associations
• Absence of formal cluster based local association(s) of Farmers & local Traders for active coordination and linkages
development with private and public sector stakeholders.
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Value Chain Study of Pine Nuts in South Waziristan, Khyber Pakhtunkhwa
• Life threat to the labor during cone harvesting while climbing the trees.
• Roasting is not carried out in SWA and uncooked nuts are sold to commission agents.
• Delay in supply of the produce to market reduces the weight of the nut which leads to decrease in farmer’s earning.
• Nuts breakages/damages during extraction/crushing process
• Leftover of nuts in the lower side of cones causes wastage.
• Improper grading of pine nuts by the farmers/collectors
• Losses due to improper packaging, storage, handling, transportation, etc.
• Exploitation of farmers (Farmer get Rs. 800-1500/Kg, traders get Rs. 1500-2200/kg while rest of the country market
rate is Rs. 2500-3000/Kg) according to variety.
• No branding concepts are practiced by farmers/growers and local traders.
• Delay in payments to the farmers/growers.
• Lack of awareness and access of farmers to markets
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Value Chain Study of Pine Nuts in South Waziristan, Khyber Pakhtunkhwa
Farming
1 Awareness sessions with the farmers, accessibility Increase in productivity and Short, Medium SMEs/Donors/Private
of extension services and inputs can all make quality term Sector/Provincial &
contributions towards better management of pine Federal Govt.
forests development schemes
2 Researched based solutions for various diseases -do- Medium & Long -do-
control and recommended use of pesticides term
3 Scientific solutions to prevent natural calamities -do- Long term Provincial & Federal
Govt.
4 Provision of Food Processing trainings and Life Savings and significant Short term SMEs/Donors/Private
equipment’s (harvesting tools/safety belts etc.) increase in productivity Sector/Provincial &
Federal Govt.
development schemes
Infrastructure
5 General Service Roads, and Farm Access Roads Increased Sales and Medium &Long Federal/Provincial
Competitiveness term Govt.
6 Establishment of state of the art market at the Increased tourism resulting in Long term -do-
region comprising of standard facilities increased local market size,
market players, and exports
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Value Chain Study of Pine Nuts in South Waziristan, Khyber Pakhtunkhwa
7 Establishment of Vocational Training Center Increase in productivity, Quality Medium & Long -do-
and Wastage Control term
8 Computerized Scanning Unit for raw and Ease of carriage and reduction Short &Medium -do-
processed pine nuts loaded vehicles for (local and in bribery practices term
export purposes)
Technology Upgradation
9 Provision of proper picking, extracting, grading Increase in productivity , Short term SMEs/Donors/Private
tools & safety equipment’s quality, exports & wastage Sector/Provincial &
control Federal Govt.
development schemes
10 Establishment of modern processing units at the Increase in productivity , quality Medium & Long SMEs/Donors/Private
region comprising of latest machinery decrease in wastage and term Sector/Provincial &
&equipment’s and cold storages increase shelf life Federal Govt.
development schemes
11 Introduction of effective& efficient roasting Increase in productivity , quality Short & Medium -do-
techniques & fetching higher price term
Marketing
12 Creation of awareness of branding concepts and Increase in quality, fetching Short & Medium -do-
provision of market linkages to national & higher price and boost exports term
international markets to the farmers & local traders
13 Proper Price and Payment Control Systems Continuous supply & decrease -do- Federal/Provincial
in artificial dearth Govt. & Cluster
Associations
Regulatory
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Value Chain Study of Pine Nuts in South Waziristan, Khyber Pakhtunkhwa
14 Formulation/Implementation of Agriculture & pine Increase in productivity and Long & Medium Provincial Govt.
Forests Development Policy quality Term
15 Regulatory framework for Pine Nuts and its -do- Long & Medium Provincial Govt.
products/derivatives Term
16 Aggressive & incentives based support to Increase in productivity and Short, Medium Federal / Provincial
growers/farmers/traders in exports of Pine Nuts quality & long Term Govt.
and its products/derivatives
17 Formulation of Business Cooperative Societies Increase in productivity, quality Long & Medium SMEs/Donors/Private
comprising of key stakeholders & constant supply Term Sector/Provincial &
Federal Govt.
Financial
19 Machinery & equipment’s and Vehicle Leasing Increase in productivity and Medium Term FIs and DFIs
quality
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Value Chain Study of Pine Nuts in South Waziristan, Khyber Pakhtunkhwa
References;
• www.nutfruit.org
• www.researchchandmarkets.com
• www.historypak.com
• www.wwfpak.org
• www.commerce.gov.pk
• World Business Council for Sustainable Development (WBCSD)
• FATA Assessment Study (SWA) June, 2012
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Value Chain Study of Pine Nuts in South Waziristan, Khyber Pakhtunkhwa
Annexure-1
Production
In season 2015/2016, world production of pine nuts was
19,600 MT (kernel basis), down 51 percent from the
previous season and 24 percent down from 2005/06. This
decrease is mainly explained by the reduction of China’s
production. Still, China was the main producer country with
a crop of 5,000 MT, which represents the 26% of world
production. China was followed by the Russian Federation
(4,050 MT, 21% share), North Korea, Afghanistan and
Pakistan (3.000 MT, 15% share).
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Value Chain Study of Pine Nuts in South Waziristan, Khyber Pakhtunkhwa
Annexture-1
Exports:
Exports accounted for 19,400 MT in 2014, that is, an
increase by 38 percent compared with the year before
and 1.8 bigger than 2008.
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Value Chain Study of Pine Nuts in South Waziristan, Khyber Pakhtunkhwa
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Value Chain Study of Pine Nuts in South Waziristan, Khyber Pakhtunkhwa
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Value Chain Study of Pine Nuts in South Waziristan, Khyber Pakhtunkhwa
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Value Chain Study of Pine Nuts in South Waziristan, Khyber Pakhtunkhwa
Biggest Challenge
16a What is the biggest challenge the Market information (1)
management faces in running this business? Financial services (2)
(Circle one BIGGEST CHALLENGE) Government regulations (3)
Competition in the market (4)
Availability of labor (5)
Appropriate skilled labor force (6)
Transportation (7)
Supply of raw material (8)
Access to technology (9)
Labor costs (10)
Costs of raw material (11)
Security (12)
Weather (13)
High Production cost (14)
Other (Specify :_______________) (15)
16b What is the second biggest challenge the Second Biggest Challenge
management faces in running this business? Market information (1)
(Circle one SECOND BIGGEST CHALLENGE.) Financial services (2)
Government regulations (3)
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Value Chain Study of Pine Nuts in South Waziristan, Khyber Pakhtunkhwa
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Value Chain Study of Pine Nuts in South Waziristan, Khyber Pakhtunkhwa
Thank You !
*****
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