FAO in Pakistan

FAO Empowers Horticultural Value Chains with Corrugated Cartons Manufacturing Facility

03/07/2023

Growers and traders (retailers and wholesalers) in Balochistan use large quantities of different sizes of corrugated cartons at every harvest season. Major chunk of their seasonal demand for cartons are met by manufacturers & suppliers based in Lahore and Karachi. The risk of inconsistent supply of required stock and factors like high transportation cost have direct impacts on their profitability margins.

On 20-June-2023, Ms. Florence Rolle, the FAO Representative (FAOR) in Pakistan inaugurated the only and one of its kind corrugated cartons manufacturing facility in Balochistan, established by FAO under the USAID funded Project ‘The Horticulture Advancement Activity’ (THAzA).

Earlier, FAO extended financial support (in-kind matching grant on cost-sharing basis worth US$ 137,619/-) to a local businessperson M. Hussain Agha, for the establishment of a corrugated cartons manufacturing unit in Quetta. Hussain Agha is a young, ambitious and educated entrepreneur who has been involved in cartons manufacturing and selling business for the past 7 years.

Prior to receiving FAO grant award, Hussain Agha was using a locally manufactured unit with a limited capacity to produce cartons. With the FAO awarded imported technology, the production capacity and efficiency increased significantly to meet the growing demand of the agriculture as well as other sectors. This unique facility represents a significant milestone in strengthening the targeted horticultural value chains in the region by minimizing post-harvest losses for perishable products.

Hussain Agha displayed the newly established unit and other associated machineries to the guests. He expressed deep appreciation for the support provided by FAO, which enabled him not only to upgrade his production capacity but also helped him in acquiring additional market share. He informed that the new facility is three times more efficient in production compared to his old unit and the quality is outstanding. He also highlighted the benefits that the local buyers are now enjoying, which included:
 
•    Consistent supply of quality cartons tailored to their requirements.
•    No bulk purchasing and storage cost, which increased financial liquidity of their businesses.
•    No transportation hassles.
•    Reduced price offer, resulting into saving of at least PKR 15 per carton, compared to purchasing from other provinces.

The grantee also informed that he is in touch with the FAO grant beneficiary for similar business in KP-NMDs and supporting him with respect to provision of technical manpower and identification of sources to acquire raw material and associated chemicals.   

FAO Head of Balochistan Office, FAO Grant Specialist and other FAO staff members accompanied the FAOR.

This grant scheme was part of THAZA project that was financed by the USAID. The project aimed at creating employment opportunities and generating income through enhanced productivity and improved product quality within selected horticultural value chains in Balochistan and KP provinces.