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

TA 4217 TEAM IN QUYI CHIRCHIK

Our TA team recently visited the Regional Business Advisory Centre in Quyi Chirchik district about 50 km from Tashkent and provided training in IT, accounts and access to legal services. We also conducted an appraisal of a 30 hectare demonstration farm that is based on zero-till cultivation previously not used in Uzbekistan. This is part of the on-going assistance being provided by the ADB's Grains Productivity Improvement Project that includes reform of the grains sector.

LECTURE AT INTERNATIONAL BUSINESS SCHOOL TASHKENT

Geoffrey Quartermaine Bastin with FoodWorks associate Jamshid Ganiev, Managing Director of UBI Consulting lecture on international consulting at "Kelajak Ilmi" International Business School in Tashkent, Uzbekistan on 18th October. IBS has a relationship with the William Davidson Institute at the University of Michigan Business School in Ann Arbor. We were invited by Ms. Mila Eschonova, Executive Director. The lecture focused around different approaches to public and private sector consulting services. It was attended by about thirty 3rd and 4th year students. More information on IBS at http://www.ibs.uz/

Pakistan: Comparative Advantage Study of the Food Processing Sector for the Competitiveness Support Fund (CSF)

The Competitveness Support Fund (CSF) has been set-up with the sponsorship/ financial assistance of USAID and the Ministry of Finance. It undertakes studies to determine the existing competitiveness of selected industrial sectors and to make policy recommendations to the highest level of the Government. The primary objective of the Study to be undertaken by FoodWorks in November ‘06 thru January 2007 is to evaluate the competitive advantage of the food processing industry and its opportunities for growth along with identification of the problems/obstacles faced by the sector. Food processing is the largest industry in Pakistan and it continues to grow as the use of processed food becomes popular especially in the cities. The list of sub-sectors includes beverages, dairy, fruits and vegetables, snack foods and cereal-based foods (wheat and rice), meat, confectionery and vegetable oil (including vegetable ghee).

Our project office in Tashkent

Our project is with ANZDEC of New Zealand and UBI Consulting for the Asian Development Bank (TA No. 4217-UZB). In 2000-01 Bastin helped design a $40 million loan project for the grains industry focused on wheat productivity improvement. His current work in 2006 is a Technical Assistance project to continue the furthering of reforms in the sector with a special focus on farm machinery and seeds. From a base in Tashkent the TA works in three focus areas up-country. The work program runs to December 2006. Bastin is the Team Leader managing a group of international and local specialists.

Wheat harvesting near Zomin, Djizzak, Uzbekistan

Our ADB Technical Assistance project has evaluated the financing, procurement and operation of 49 "Dominator 130"-type combine harvesters (manufactured by the CLAAS company of Germany) in three focus areas in central Uzbekistan. The evaluation included financing methods, ownership structures, the logistics of the harvest, technical operation of the harvesters themselves and the financial impact on those farmers and service enterprises borrowing to purchase the machines.

New Projects

FoodWorks will start work in Pakistan for the Asian Development Bank under sub-contract to ANZDEC in October 2005. The project is a loan preparation assistance for coastal communities in Sindh (ADB TA 4525).