COMPETITIVENESS AND PRODUCTIVITY

Competitiveness is of major importance in a global economy. Productivity includes innovation and technology transfer as well as cost-cutting and improved workforce skills. Geoff Quartermaine Bastin has led a team at the Competitiveness Support Fund (CSF -see link) in Islamabad working with J.E.Austin Associates (JAA) to write an in-depth study of competitiveness in Pakistan, the "State of Pakistan's Competitiveness Report 2008*. The study includes a case study of agriculture and another on women's access to finance. The study, based on World Economic Forum base rankings explains why Pakistan currently ranks 92nd out of 131 countries measured by the WEF. The Report also suggests what can be done to change things for the better. A copy can be found at the following link:

http://www.competitiveness.org.pk/publications_policy_studies.php

WHEAT-FLOUR INDUSTRY IN PAKISTAN

2008 has seen an enormous crisis in the wheat grain grain and flour industry in Pakistan. Geoff QB along with colleagues Sadia Sarwar and Zain Asadullah Kazmi prepared a comprehensive analysis of wheat policy, prices, supply and demand in order to cast light on what caused the crisis (government mismanagement) and what could be done to avoid the situation in future (among other things restructure the GOP official procurement system). The Discussion Paper, issued by the Competitiveness Support Fund in Islamabad is available at the following link in ,pdf format:

http://www.competitiveness.org.pk/articles.php?p=1

"STONE DIMENSION"

We've been doing some work outside our normal food industry activities - in the "dimensional stone " industry - stone used for tiles and other construction areas. This has involved looking at the activities of a quasi-government organization established to help upgrade quarries and stone cutting and polishing facilities. A lot to the value chain focused  techniques of analysis we use in the food industry are similar, and because the food industry is so complex, other industrial activities seem simple to understand by comparison. The main problems are at the quarrying end, where stone gets blasted out of the mountain instead of cur correctly. Wastage of the primary product is very high -but where have we heard that before!

TECHNOLOGY AND DESIGN

You need to have the machine working! And working right! You would like it to be designed for your needs and be efficient. Innovative and well-designed machinery and related technology is essential for productivity in this highly competitive industry and in a global economy. 

I got sick of dysfunctional technology and ranted about this pet gripe on LinkedIn (www.linkedin.com). I got A LOT of answers! These knowledgeable people helped me understand what was going wrong in technology design.  I;ve written an essay about the subject based on their ideas and comments which appears on the website of the Competitiveness Support Fund at: 

http://www.competitiveness.org.pk/articles.php?p=1

CHILD LABOR IN KARACHI

Children are peeling the expensive prawns that you might eat in restaurants around the world! They work in disgusting conditions for a pittance, but you probably pay a premium price.

These pictures show the extent of the problem at the Karachi Fish Harbour (see other posts). The major haul from the Arabian Sea is prawns and these have been the bulk of the now-banned exports (of course they still go to less particular countries).

The children are probably from Bengali families who have migrated illegally to Pakistan, The Karachi Fish Harbour itself is run by the provincial government of Sindh with these peeling sheds kept by the private sector.

Photos: courtesy of Robert Lindley, Karachi, Pakistan August 2008

CONTINUING WORK AT KARACHI FISH HARBOUR

Karachi Fish Harbour is still filthy! Despite all our efforts to work with the local authorities, the main exit point for Pakistan’s seafood is still in a disgusting condition. Slack management, vested interests and lack of urgency to find funds mean that technical solutions proposed by ourselves and teams from other agencies including UNIDO are not being adopted. Meanwhile the photograph taken in August this year shows the current state of the Harbour. The rubbish is floating on water over which fresh fish passes to the factory in the background. So much for HACCP!

FoodWorks has been working at Karachi Fish Harbour in collaboration with Robert Lindley, an international expert on fisheries, as part of an on-going contract with the Competitiveness Support Fund. The aim of the project is to upgrade and restructure the Harbour with a special focus on re-establishing seafood exports to the EU banned last year on the grounds of lack of hygiene. It's an uphill struggle to say the least!

A full set of reports on Karachi Fish Harbour prepared by Robert Lindley with support from Geoff Q-Bastin are to be found at:

http://www.competitiveness.org.pk/publications_policy_studies.php

Photo: courtesy of Robert Lindley, August 2008

EXECUTIVE SEARCH

Geoff Quartermaine Bastin has accepted the position of Director, Asia & Pacific for Kincannon and Reed, since 1981 the premier executive search company working exclusively in the areas of agriculture, agribusiness and life sciences. Geoff will undertake this work concurrently with on-going consulting work for FoodWorks and related clients.

Greg Duerksen, President of K&R says "Kincannon & Reed recruits leaders with judgment who get results. Two things make us different: (1) our unique focus on food, agribusiness and life sciences; and (2) the experience base of our principals, each of whom has held top management positions within the industries we serve. The benefit to our clients is that we understand at a personal level, not just an intellectual level, the dynamic environment in which they operate. We also know from our own experience the huge value to stakeholders of hiring the right person.”

NEW YEAR AT CSF

Geoff Quartermaine Bastin and Usman Ahmed Khan in the CSF office celebrating the New Year; indeed not such a happy time in Pakistan. Usman is the Manager for Matching Grants of which CSF has 10 approved and more in the pipeline.

YES MINISTER

We sit again around an enormous table with the Minister (Interim) for Finance Dr. Salman Shah (first on the left). This was a meeting relating to the financing of horticulture as part of the on-going Task Force for which CSF (via Geoff JQB) is providing the secretariat. On the right is Amir Jahangir our senior media consultant and GJQB writing the minutes. The meeting successfully promulgated Guidelines for investing in the industry prepared by the State Bank of Pakistan and approved by the Minister at this meeting.

"NEUTRACEUTICAL" MANUFACTURING

This $400,000 project in the Ghizer district of the Northern Area of Pakistan in the foothills of the Himalayas gathers medicinal berries and extracts “neutraceuticals” from the seeds to tackle prostate and breast cancer, it also makes skin ointments from the fruit pulp. The project innovates by extracting oil by using state-of-the-art super critical carbon dioxide fluid extraction. The technology is also used to extract oil from other fruits such as apricots and grapes.

The work is financed via private sector investors and the Competitiveness Support Fund (see post below - FoodWorks provides technical and economic advisory services to CSF). The project addresses poverty by putting value to otherwise non-commercial wild plants of the Sea Buckthorn (for more details of the health aspects of this important medicinal plant check our partner blog www.boomgenerationfitness.blogspot.com). The project targets around 1,200 households by reinvesting profits back into the community for better growing and harvesting practices. Over 70% of the beneficiaries are women.

The main partner, Rural Development Initiative (RDI), is a Pakistani NGO which aims at generating employment opportunities by utilizing local natural resources. RDI has established a fruit processing and pulping unit in Ghakuch, Ghizer NA (see photo). The Sea Buckthorn pulp and seeds are transported to Lahore for final extraction. Products such as neutraceutical organic juices and medicine capsules will be marketed not only in Pakistan but exported to Japan, Europe and North America.

QUARTERMAINES WORLD

This is the launch of Quartermaines's World! I have developed three blogs, Q's World is my personal blog open to close friends and relatives only, FoodWorks is,of course, my company blog describing my work in agribusiness and food, Boom Generation Fitness (http://www.boomgenerationfitness.blogspot.com/) is about health and fitness (mind and body) for the Baby Boom Generation - those over 50. All of this is driven thru the quartermainesworld.com domain via Google Apps and my principal email addresses are now: geoff@quartermainesworld.com (personal), foodworks@quartermainesworld.com (business) and fitness@quartermainesworld.com (pleasure). Please enjoy the blogs and comments are always welcome.

HORTICULTURE DEVELOPMENT IN PAKISTAN

The Pakistan Horticulture and Export Development Board is the leading organisation in this country for promoting an industry that contributes 12% to agricultural GDP and for which there is enormous potential. Pakistan grows the full range of horticultural crops from tropical bananas in coastal Sindh, through mango and citrus in Punjab, apples and grapes in Balochistan to apricots, peaches and unique medicinal plants such as Sea Buckthorn in the Himalayan foothills. Floriculture is another sub-sector that offers huge opportunities for investment. FoodWorks (via the Competitive Support Fund) is working with PHDEB and an inter-ministerial Task Force to formulate initiatives covering all aspects of the industry. However the focus is on improving quality especially via infrastructure. A multi-million dollar project financed by the World Bank entitled the "Northern Trade Corridor" includes provision for building packhouses, cool storage facilities and a pool of reefer containers. For more information check out the PHDEB website at http://www.phdeb.org.pk/ or contact the CEO Mr. Shamoon Sadiq on ssadiq@phdeb.org.pk

TASK FORCE FOR HORTICULTURE INDUSTRY

FoodWorks has worked with the Competitiveness Support Fund in Pakistan to establish a Task Force on Horticulture Finance and Competitiveness. Meetings have been held covering finance, infrastructure (especially transport, logistics and aspects such as cool chains), production/processing/marketing and quality control and standards. The first phase of this work will be completed in September 2007 with related work being carried forwards by various line ministries and private sector partners. The goal of the Task Force is to significantly increase the volume and quality of exports of major crops such as mango, kinnow, peaches, apples. For more information on what CSF and FoodWorks are doing in horticulture please check the CSF website on http://www.competitiveness.org.pk/

COMPETITIVENESS SUPPORT FUND

Geoff Quartermaine Bastin is acting as the Senior Advisor to the Competitiveness Support Fund based in Islamabad, Pakistan. CSF is a joint initiative of the Ministry of Finance and USAID with an initial financing package of US$20 million. The Fund is managed by its CEO Arthur Bayhan and has two main operational windows: technical assistance (consisting of policy advice and sector or industry assistance) and a matching grants facility where the Fund works with small enterprises on the basis of establishing links between industry, academia and government in a public-private partnership approach. Work is also starting in the Federally Administered Tribal Areas (FATA) in the trouble-torn north-west of Pakistan in a campaign to win hearts and minds via the development of small industry in sectors like livestock and horticulture. For more information on CSF, take a look at the website http://www.competitiveness.org.pk/

KARACHI FISH HARBOUR

Inspecting fish quality as part of the preparation work for the Fish Action Plan for the Pakistan Ministry of Finance (Competitiveness Support Fund). The work has targeted Karachi Fish Harbour as a critical point for intervention by the government. The Harbour exports $160 million of fish and seafood to various parts of the world, 40% to the EU. It is well below acceptable standards and the AP being prepared will recommend changes in management and upgrading of infrastructure to conform to HACCP standards.

ENJOYING A "BEER" IN BALOCHISTAN

Not really!! Geoff Bastin is in the Uruk Valley near Quetta in Balochistan, taking time out from a field survey of almond producing areas. Apples, onions, dates are the other major crops. People husband sheep and grow wheat and fodder crops. In this area water is not a problem unlike most of Balochistan that has suffered a six year drought. FoodWorks is undertaking a food industry study for the Competitiveness Support Fund, a subsidiary of the Pakistan Federal Ministry of Finance and supported by USAID. Geoff is Food and Fisheries Advisor to CSF. The FW team consists of Geoff, Robert Lindley (fisheries) and Elena Timchenko who provides project support.

ELENA TIMCHENKO IS FW NEW STAFF MEMBER

Elena Igorevna Timchenko is FoodWorks' latest staff member. 'Lena is Russian/Jewish with citizenship in Uzbekistan. She is a linguist (specialized in English Philology) and has spent a year studying in the USA (in Dewitt, Arkansas), she also has a background in hotel management with the Sheraton Hotel in Tashkent. Lena joins FW via our local Tashkent affiliate UBI Consulting as a Project Assistant. She is currently working on ADB TA No. 4217 "Furthering Reforms of the Grains Sector" and will also be working on food sector studies in Pakistan in 2007

COMPETITIVENESS SUPPORT FUND (CSF) PAKISTAN

FoodWorks has started work as Agro-processing and Food Sector Advisor to the CSF in Islamabad, Pakistan. The Fund is established under the auspices of the federal Ministry Of Finance and USAID at over $20 million of start-up capital. The money is to be spent via three windows on Technical Assistance, Matching Grants and Business Incubation for SMEs. Chairman of CSF is Minister of State for Finance, Mr. Omar Ayub Khan and the Fund's Director is Mr.Arthur Bayhan. CSF prime objective is to increase the competitiveness of Pakistan against World Economic Forum benchmarks. Geoff Quaretrmaine Bastin is travelling extensively throughout Pakistan to develop a policy-specific report on the food industry that will be implemented at Federal/Presidential level. The study will be completed in early february 2007. For more information on the CSF check out the website at http://www.competitiveness.org.pk

BIO WORKS CO.LTD.

FoodWorks is partnered with Bio Works Co. Ltd in an arrangement whereby FW provides economic and financial analysis of projects while Bio Works provides expert services in science and technology. Bio-Works Co. Ltd, in collaboration with Inovata AB, produces chromatographic separation media in Sweden that are basic tools for lifesciences, food and beverage industries and the environment. Via its current work for the Competitive Suppport Fund (CSF) in Pakistan, FoodWorks has established a working relationship with the Federation of Asian Biotech Associations (FABA) and the Pakistan National Commission on Biotechnology. Possible projects include production of whey protein isolates, the use of ultra filtration in the juicing industry and the production of health food supplements. All are being considered under the work for CSF.

CONSULTING IN CENTRAL ASIA

with FoodWorks Company Limited

FoodWorks and UBI Consulting are affiliated companies specializing in a range of consulting services targeted to the Central Asian and Former Soviet Union countries. In particular we are working in Afghanistan, Kazakstan, Kyrghyzstan, Uzbekistan, Tajikistan and Turkmenistan.

UBI Consulting LLC is an Uzbek professional group providing services to customers across the public and private spectrum. The company was established in response to the increasing rate of change in international development in Uzbekistan and other countries of Central Asia. UBI specializes in strategic studies, feasibility studies, and evaluation activities and project experience. The goal of UBI Consulting is to provide quality value added services and products through prompt, innovative, client oriented approaches with experienced technical staff and time tested partnerships with peers and clients. Also UBI Consulting provides advisory services to engineering and consulting companies in their acquisition of projects funded by the International Financial Institutions. For more information on UBI contact Jamshid Ganiev on jamshid_ganiev@ubi.uz or look at our website at http://ubi.uz/index.htm