Value addition in fruit and vegetable exports key to economy

Monday, 23 September 2013 01:07 - - {{hitsCtrl.values.hits}}

By P. Waruni “The value addition of our fruits and vegetables industry cannot be compared to other industries because it all comes from the country’s rural areas which has contributed high value addition to the rural economy,” pointed out the Lanka Fruit and Vegetable Producers, Processors and Exporters Association (LFVPPEA) Chairman Annes Junaid, at its 32nd Annual General Meeting on 18 September. “Although the membership quantities have been small, the impact that the association has on the rural economy of Sri Lanka has been immense. Most of the fruits and vegetables come from the rural areas of Sri Lanka and we have sourced them from all parts of the country,” he added.

Established in 1986 the LFVPPEA has endeavoured to create a platform for its membership to interact and network with each other; to share knowledge and information that could improve the industry and to also represent its members at all public forums with a particular focus on encouraging the continued development of the industry. Emphasising his point further, Junaid said: “If Thailand and Malaysia can export their fruits and vegetables to Europe and the USA, there is no reason why Sri Lanka cannot not do it as well.” Today, there are about eight different varieties of fruits and vegetables grown in Sri Lanka’s various agro-climatic areas, with crops grown mainly by semi-commercialised farmers on individual land tracts that in most circumstances do not exceed a hectare. Sri Lanka produces more than 800,000 metric tons of fruits and vegetables for export to many destinations around the globe out of which 90% of the produce is targeted at the Middle East and Maldives, with 75% of processed items exported to the European market. As indicated by the Export Development Board August 2013 statistics, it was estimated that 7.5 million kilograms of vegetables, fruits and juice were exported and $ 8.957 million was earned by Sri Lanka. The US is the top country among them which absorbed 4.5 million kilograms of exports while contributing $ 4.439 million of total earnings in August 2013. Saudi Arabia, UAE, India, Qatar and Maldives are the top fruit importers from Sri Lanka, with the UAE, Maldives, Japan, UK and US as the top vegetable importers in August 2013. As per industry officials, the fruit exports grew by 36.65% in the first six months of 2013, while vegetable exports grew by 3.49%. Addressing the gathering, Secretary Ministry of Industry and Commerce Anura Siriwardena said: “The processing of fruits and vegetables contributes to the increase in demand for agricultural produce and thereby reduces the cost of production in the agricultural sector. Also, it utilises excess agricultural produce and thereby contributes to price stability. This makes a significant contribution to the economy by earning much needed foreign exchange and helps to substitute our country’s imports. “The processed food industry also generates employment opportunities, promotes product development, innovation, technology development, preserves food for off season and adds value, nutrition, variety, qualities to food. Hence, it is an industry which has great potential for development and requires the special attention of policy makers. “As cultivators and processors you should also retrace your steps back to the traditional varieties of fruits, vegetables and processed food items and reintroduce them to the domestic and international markets. Indigenous and wild varieties of fruits and vegetables such as jak fruit and yams, of which the nutrition value has been established through many centuries, has not been hitherto tapped sufficiently, which would yield much health and financial benefits if commercially cultivated and processed,” Secretary Siriwardena said. Export Development Board Chairman Bandula Egodage pointed out: “The rural famers are very valuable to the Sri Lankan economy and you must be proud of your performance. Guatemala is a world famous country for exporting limes to the world market and Sri Lanka must look forward to exporting dried lemon to the world market. The Moneragala district lime farmers must be assisted to develop their industry in order to face all future market conditions and demand both locally and internationally.” Today the global fruit and vegetable market grew by 11.7% in 2011 to reach a value of $ 1.5 billion. In the year 2016, the global fruit and vegetables market is forecast to have a value of $ 2.7 billion, an increase of 79.2% since 2011. The exports of fruits and vegetables generate around $ 45 billion as reported by the UN’s Food and Agriculture Organisation (FAO).