The opportunities in agriculture

November 3, 2024

Agriculture needs to be more productive, resilient and sustainable

The opportunities in agriculture


P

akistan, struggling for stability in exports, is still identified as an agricultural economy. However, it has yet to fully harness its agricultural potential. Without adequate growth in agriculture sector, the ambition of aggressive economic growth in Pakistan is unrealistic.

Agriculture constitutes the largest sector of the national economy. A large part of the population is dependent on this sector. It contributes about 24 percent of the GDP and accounts for nearly half of the labour force. It is also the largest source of foreign exchange earningsi.

With 30.5 million hectares, about 47 percent of the land is under agriculture, higher than the global average of 38 percent. Pakistan is one of the world’s largest producers of food. It ranks 8th globally in farm output, according to the listing of countries by GDP sector composition.

Imports of wheat and wheat flour, vegetable oils, pulses, tea and refined sugar should be unacceptable. In certain years vegetable oils, wheat and flour, have constituted as much as 80 percent of agricultural imports.

Pakistan has a coastline of about 1,046 kilometres and enough fishery resources for a start.

Globally, the United States, China, India and Russia consistently rank as top producers of major cereal and vegetable crops. China leads in rice production, is a top wheat producer, the second largest producer of corn and dominates exports of onions and cabbage. The US ranks first in corn, second in soybeans and fourth in wheat. In other key crops like millet, India and Nigeria lead production. Barley, rye and pulses are vital in Russia, Germany and India.

Given their large populations, China and India prioritise internal food security. Most of their production is used domestically.

It is important to note the difference between volume production and high-value production. The Netherlands supplies nearly half of the global export of flowers. It is also a leading supplier of tomatoes and chilies). The staples that feed the world (rice, corn, wheat, beans, lentils and animal proteins), come mostly from the United States, Germany, Canada, Brazil and Thailand.

Agriculture is at a critical juncture in Pakistan, facing unprecedented challenges from climate change, population growth and resource/ infrastructure constraints. Innovation is essential to drive positive change in farming practices and food production.

The average farm size in Pakistan has steadily declined as follows:

5.3 hectares in 1971

3.1 hectares in 2000

2.6 hectares in 2010

Meanwhile, the average utilised agricultural area per arable farm in the Netherlands increased from 32.5 hectares in 2000 to 41.4 hectares in 2021.

The rise of digital technologies presents new opportunities in agricultural finance. Digital platforms can connect farmers directly to markets, potentially increasing profits and empowering them with valuable information for decision-making.

Should we form cooperatives to increase the effective farm size? Else, should we shift towards precision agriculture and more efficient water use?

The average farmer is a stressed, overworked and underserved person, lacking access to resources, technology and financial services. Environmental stewardship with increased productivity is a huge challenge for which the farmers need mentoring by experts.

The Zarai Dera initiative by HBL Zarai Services Limited is seeking to change the trajectory for the better. The idea is to create a forum for free actionable agronomic advice that can also provide one-stop solutions for quality agricultural inputs, including quality animal feed along with complementary advice on livestock health, a machinery centre, a bank kiosk and access to informed financial, technological or agricultural experts.

It is hoped that initiatives like these can enable smallholder farmers significantly improve their agricultural productivity and livelihoods. Developing affordable technologies to enhance crop yields and reduce post-harvest losses can boost incomes. Tailored financial products can help farmers invest efficiently and manage risks more effectively.

The rise of digital technologies presents new opportunities in agricultural finance. Digital platforms can connect farmers directly to markets, potentially increasing profits and empowering them with valuable information for decision-making. Developing women-focused financial products, training programmes and appropriate farm equipment can help address gender disparities.

Value chain finance, now available from banks, considers the entire agricultural process, potentially increasing lending to the sector. Agricultural insurance innovations, such as index-based insurance and remote sensing, aim to better serve smallholder farmers. Technological advancements like precision agriculture, biotechnology and smart irrigation systems can boost productivity.

Climate change adaptation and mitigation strategies are increasingly vital. All this needs to be brought closer to the farmer, like Dera, for quick access and implementation of a supportive ecosystem through increased research investment, strengthened partnerships and improved education.

The ultimate goal is to create a more productive, resilient and sustainable agricultural system; one that can meet the food needs of a growing global population while preserving natural resources for future generations.


The writer is an educationist, communication specialist and director with Heritage Foundation Pakistan. She tweets @shahaJamshed

The opportunities in agriculture