The Baltistan division in the Gilgit-Baltistan province of Pakistan is renowned for its apricot production. Across its four districts, approximately 36 different varieties of apricots are cultivated. However, due to the fruit’s highly perishable nature, it cannot be transported fresh to distant markets within the country. To extend its shelf life, apricots are processed through dehydration and then sold to local traders.
In the past, apricot farmers typically sold their ungraded and improperly packed products to local traders on credit. Due to the small quantities produced by individual farmers, they were unable to transport their products to the market, where wholesalers usually purchase them. Consequently, traders often dictated the prices of these products.
To enhance the conditions and livelihoods of apricot farmers in the region, the Asia Pacific Farmers Program (APFP) – Farmers Organizations for Asia (FO4A) and ARISE program, through collaboration with the Agribusiness Support Fund (ASF), embarked on a mission to mobilize the farmers toward collective agribusiness initiatives.
APFP-FO4A is co-financed by the International Fund for Agricultural Development (IFAD) and the European Union (EU) and is implemented by the consortium Asian Farmers’ Association for Sustainable Rural Development (AFA) and La Via Campesina (LVC). ARISE is financed by the IFAD and is implemented by the AFA.
ASF provided technical assistance to a farmers’ organization (FOs) engaged in apricot production. The technical assistance includes providing training in post-harvest handling, hygienic drying, and the provision of improved dehydration equipment. These efforts led to farmers’ organizations significantly improving the quality of their products. This improvement enabled them to initiate collective marketing efforts, proving to be a true game-changer. This success underscores the effectiveness of ASF’s value chain approach, which adds value from primary production through various nodes of the value chain to the market, thereby empowering farmers’ organizations and driving positive change in the community.
Innovations / Good Practices
Provision of Improved Tools: Local farmers received enhanced equipment for fruit dehydration, including plastic sheets and bamboo sticks for harvesting, wooden trays, stands, and plastic sheets for sun-drying, as well as separate packing materials for both bulk and retail sales.
Farmers’ Training: Local smallholder farmers received comprehensive training in post-harvest handling and product development, specifically focusing on various fruit dehydration techniques that are in demand in the market. The practical training sessions were conducted by both local and international experts. These trainings equip farmers to achieve better prices for their products compared to traditional processing methods.
Village Auctions and Collective Marketing: Members of the Farmers Cooperative Society Kharko-1 in Ghanche, Baltistan engaged in apricot farming decided to market their quality products directly, bypassing traders and dealers. As part of this new approach, the farmers’ organization organizes annual village auctions after processing the fruit. These auctions are advertised through social media platforms, and the marketing committee invites more buyers to participate. All the products from the 279 members of the farmers’ organization are collected at a central location, where bidders quote their prices. The highest bidders purchase the graded, packaged bulk produce. This new approach has led to a significant increase in prices, rising from PKR 45 (USD 0.16) to PKR 500 (USD 1.80) per kilogram for A-grade dried apricots.
Impact
Through the hard work and dedication of 279 small farmers from Kharkoo village, 60 tons of apricots were sold. Of these, only 10% could be graded as A-grade, up to 40% as B-grade, and the rest as C-grade, fetching the lowest prices. By collectively improving post-harvest and dehydration practices, the farmers have been able to earn ten times more on average per farmer under the new business model. This model aimed to increase the percentage of A and B-grade products while significantly reducing C-grade produce.
Previously, each of the 279 farmers received revenue of PKR 10,000 (USD 36) from selling an average of 222 kilograms of dried apricots. Now, with improved processing and collective marketing, they earn PKR 110,000 (396) for the same 222 kilograms. Collectively, the FO’s revenue from dried apricot sales has increased from PKR 2.7 million (USD 9734) to PKR 30 million (USD 108,164). This success has also earned the community’s trust in their farmers’ organization (FO). Even non-member farmers from the village have noticed the benefits and are now seeking farmers’ organization membership.
The impact of this successful partnership has extended beyond the immediate community. The concept of auctions and collective marketing has been adopted by other Farmers’ Organizations in nearby areas, leading to increased incomes for many more farmers. This inspiring initiative has not only helped individual farmers boost their earnings but has also strengthened the overall economic growth of the community.
Facilitating Factors
The farmers in the community have embraced collective business practices, which have led to significant increases in their incomes. Initially, members of the Farmers’ Organization faced challenges in securing sufficient capital for improved tools, equipment, marketing, and other expenses. The timely loan from the ARISE program provided the FO with the means to procure necessary tools and packing materials, addressing immediate liquidity challenges during the production season.
Today, through bulk sales, the FO charges a 5-10% service fee, which covers operational and marketing expenses. This initiative has not only sustained their business but also generated profits while meeting the community’s needs.
However, in some instances, FO members in need of immediate cash opt to sell their produce individually at local markets, often at lower rates. This practice can lead to long-term financial losses for farmers. Therefore, it is advisable to prioritize and coordinate collective sales efforts to achieve optimal prices for their produce.
Lessons Learned
While the Farmers’ Organization has introduced a collective service delivery concept to its members, ongoing handholding and coaching from ASF are essential to ensure efficient FO management and enhance market access and linkages.
The village is rich in a variety of fruits and vegetables, including apples, mulberries, tomatoes, onions, and more. With the implementation of the value chain concept and support from improved tools and resources, these products can be processed into value-added goods. This not only diversifies the local market but also creates additional revenue streams for the dedicated farmers in the region.
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