FRESH FRUITS PROCESSING
Small and Medium Enterprise Development Authority
Government of Pakistan
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Fresh Fruits Processing (Kinnow)
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Document No. Revision Prepared by Issue Date Last Revision Date Issued by PREF-11 2 SMEDA-Punjab December, 2005 May, 2006 Library Officer
1 PREF-11May, 2006/ Rev 2
Fresh Fruits Processing (Kinnow)
The scope of the project includes processing of fresh citrus fruit locally known as "Kinnow". Kinnow fruit is a hybrid of Mandarins. There is huge demand for processed Pakistani Kinnows in the international markets. The major operational activities of the project include following processes: 1.2 Sorting Washing Waxing Drying Grading Packaging Opportunity Rationale
The human resource (labour) costs, in the Western Hemisphere and in developed countries, are much higher. Although, these countries now employ sophisticated farm machinery and implements, yet the production costs are on a higher side. So far, most of these countries compete due to heavy direct or indirect subsidies offered to them by governments and Trade Associations. However, under WTO (World Trade Organisation) convention, of which Pakistan is also a member country, subsidies are totally discouraged. The rising production cost and diminishing subsidies would make it difficult for these countries to compete in the international markets. With 1.76 million tons, Pakistan is the 10th largest producer of Kinnow (mandarin hybrid) and oranges in the world. Kinnow is only grown in Pakistan and its aroma and taste has obtained a good reputation and acceptability in the international markets. Pakistan's world mandarin and orange market share is 8 percent. Above state of affairs provide Pakistani Kinnow with an opportunity to compete in the international markets. 1.3 Viable Economic Size (Processing Capacity)
A plant having a capacity of processing 8 tons of Kinnow per hour is considered to an economically viable plant. This means, that for a total season of 135 days, a total of 8,100 tons of Kinnow...