Chili Oleoresin and Chili Paste Market Research Analysis

Chili Oleoresin and Chili Paste Market Research Analysis

Posted On: Filed Under:

Project Description:

The U.S.-Pakistan Partnership for Agricultural Market Development (AMD) activity in Pakistan is a USAID funded activity implemented by CNFA with the goal of supporting the development of Pakistan’s commercial agriculture, particularly through improving the ability of Pakistan’s agriculture and livestock sectors to meet both international and domestic demand and requirements in targeted product lines in citrus, mango, high value/off season vegetables and livestock. AMD envisions transforming the four targeted product lines into efficient, private sector-led value chains that deliver competitive products to domestic and export markets. AMD’s targeted training, matching grants, and technical assistance will leverage private sector investment and encourage innovation. Together, these approaches will support upgrading, streamline supply chains, optimize profit margins, increase participation of women entrepreneurs, and ultimately make Pakistani meat, HV/OSV, citrus and mango more profitable and more competitive.

 

Background Information:

In Pakistan, Sindh has been the major producer of chilies, followed by Punjab and Baluchistan. According to the Pakistan Crop Reporting Services Statistics, in the year 2011-12 Pakistan produced 40,414 tons of red chilies on around 24,776 hectares, out of which Sindh had a production share of about 24,113 tons from an area of 13,853 thousand hectares, with an average yield of 1.74 tons per hectare. In Sindh, a small town of Kunri, once called the “chili capital of Asia” alone produces 55% of the province’s entire produce. Other cultivation hubs are Mirpur Khas, Sanghar, Badin, Tando Muhammad Khan, Khairpur, Shikarpur, and Ghotki. The main varieties from Kunri are desi, mexi, and nageena while talhari, a winter variety, comes from Badin.

The varieties grown in Pakistan are of high quality but the country has realized only a fraction of its potential as a producer of red chilies. Sindh in particular, has recorded a decrease in chili production from its record high level in the year 2009-10. According to the Pakistan Crop Reporting Services Statistics, Sindh production in 2011-12 was only 21% as compared to total production of around 188,859 tons in 2009-10 on 74,784 hectares. Pakistani red chilies fetch lower prices than the Indian varieties, despite the market attesting to being of better quality & flavor. The decrease in production is attributed to improper harvest techniques, handling, drying and post-harvest handling.

The dried chili industry in Pakistan has previously been one of the major success stories for smallholders in semi-arid areas under low-tech irrigation. Smallholders often lack the means to improve their crops with modern methods, and dried chilies have added to their annual income. However, during the past 10 years, food safety regulations have come into play in international markets with the result of limiting the participation of Pakistani dried chilies.

The drastic decline is associated with one specific problem: Aspergillus infection in chili and the subsequent poisonous fungal metabolites generally called aflatoxins. Most export markets have specific threshold limits for aflatoxin toxicity. Around 35% of the rejections of chili exports were solely due to excessive levels of aflatoxins found in the chili from Pakistan. After the initial setback, exporters and processors, as well as national agricultural research institutions, worked hard to solve this complicated issue. The menace of aflatoxins can be brought under control through a mix of good agricultural practices and proper harvest and post-harvest management.

To provide an alternative market and confront the issue of aflatoxin in chilies and other horticulture products produced in Pakistan, AMD proposes to mobilize private sector investment in either the commercial production of chili paste or the commercial extraction of oleoresins from fresh products with a critical focus on chilies. In order to equip the Pakistani Chili industry and provide an alternate viable business solution. Supporting investments in establishing commercial processing of chilies will help streamline the supply chain, optimize profit margins, possibly increase participation of women entrepreneurs, and ultimately make Pakistani vegetable sector more profitable and more competitive.

Oleoresins are extracted natural aromatic liquid containing essential oils and resin. They are the concentrated liquid form of the spice/herbs/plants and reproduce the character of the respective spice and spice oil fully. They are obtained by the solvent extraction of the powdered dried spices with the subsequent removal of solvent or through the supercritical CO2 extraction method. Oleoresins are highly concentrated and hence provide a very economical method of flavoring products. They are also easier to control for quality, cleaner than the equivalent ground spices and are more stable when heated. The main products in a spice oleoresin plant are oleoresins of chili, pepper, ginger and turmeric. The co-products are the corresponding spice oils, which are widely used in food and pharmaceutical industries.

 

Oleoresins provide a more complete flavor profile than essential oils. Further advantages are the concentration at source of the product and the minimizing of color losses (capsanthin breakdown). The color loss in paprika oleoresin is reduced to approximately 1-2 % per year only as opposed to 2-4 % per month in compressed whole pods and up to 5 % per month in paprika powder. These color losses are caused by oxidation and are greatly influenced by exposure to oxygen, light and heat.

Chili paste is a value addition normally for B & C grades of chili sorted out from the fresh and dried chili packing process. The lower grade chilies are processed through a grinding and milling process, then adding water and boiling the mix to a concentrate without losing the aroma and flavor of the natural hot chili peppers. Chili paste is a condiment that adds spice and flavor to a sundry of food products, from Asian recipes to Western favorites.

Seeking out and understanding sustainable and rewarding markets for the value added oleoresin and chili paste will be critical towards realizing the full potential of the new product. Therefore, a thorough understanding of the international oleoresin and chili paste market place will be necessary to identify suitable market positioning and price points.

 

Objective of the Technical Assistance

 

The objective of this consultancy is to conduct detailed primary and secondary research on oleoresin and chili paste export markets. The scope of work of the consultant would entail analysis and recommendations for high potential market destinations, based on empirical evidence, stakeholder consultation and industry insights.

 Assignment Scope:

The Associate STTAs tasks will include but not be limited to:

 

·         Conduct a thorough literature review of existing reports and market studies relating to chili oleoresin markets;

·         Schedule assignment orientation meetings with relevant AMD product-line specialist, Value Chain Director and Chief Technical Advisor

·         Draft the research design, identifying kay primary and secondary data sources and collection methodology

·         Research reputable trade data repositories and extract oleoresin and chili paste market information and conduct analysis, identifying major varieties, market shares, growth trends, niches, major players etc.

·         Conduct interviews with key industry players and identify product quality parameters and potential placement on the value spectrum in the international market

·         Identify tariff and non-tariff barriers for leading export destinations for processed chili products

·         Identify prevailing practices relating to product packaging and supply chain management for commercial trade of chili oleoresin and chili paste

·         Conduct a SWOT analysis in light of the research and empirical evidence gathered under the assignment scope

·         Identify top five potential export competitors for Pakistani chili oleoresin, chili paste based on current and proposed varieties;

·         Identify top five export markets for Pakistani chili oleoresin, chili paste;

·         Provide product demand estimate and growth forecast

·         Provide indicative unit value for the respective destination markets

 

Deliverables:

      I.        Draft research methodology and report outline;

    II.        Chili oleoresin and chili paste trade data for past five years, complete with analytics in excel;

   III.        Final report on market assessment of both chili pepper oleoresin and chili pepper paste, covering:

a.    Market size

b.    Chili varieties

c.     Pricing

d.    Major players

e.    Leading markets

f.      Market niches

g.    Tariff and non-tariff barriers

h.    Leading importing businesses

i.      Packaging and logistics

j.      Recommendations on priority markets, product positioning and pricing

Estimated level of effort (LOE) for the assignment: 22 Working days 

Qualifications:

  • An advanced degree in the field of Economics, Business, Food Science / Technology or proven equivalent experience;
  • Experience of having worked on research projects, especially related to trade and export development;
  • Experience in the chili pepper fresh and processed industry and related international trade
  • Prior experience of working on consulting assignments with USAID or donor funded projects in a developing country will be an advantage;
  • Excellent computer skills, particularly Word, Excel and Power Point.
  • Demonstrated ability to work in a team;
  • Demonstrated interpersonal and communication skills; and
  • Documented excellent writing skills in English
  • Oral fluency in English.

Gender Training Specialist

Posted On: Filed Under:

Project Description:

The U.S.-Pakistan Partnership for Agricultural Market Development (AMD) activity in Pakistan is a USAID funded activity implemented by CNFA with the goal of supporting the development of Pakistan’s commercial agriculture, particularly through improving the ability of Pakistan’s agriculture and livestock sectors to meet both international and domestic demand and requirements in targeted product lines in citrus, mango, high value/off season vegetables and livestock. AMD envisions transforming the four targeted product lines into efficient, private sector led value chains that deliver competitive products to domestic and export markets. AMD’s targeted training, matching grants, and technical assistance will leverage private sector investment and encourage innovation. Together, these approaches will support upgrading, streamline supply chains, optimize profit margins, increase participation of women entrepreneurs, and ultimately make Pakistani mango, citrus, meat and HV/OSV more profitable and more competitive.

 

Background Information: 

The U.S.-Pakistan Partnership for Agricultural Market Development (AMD) is a USAID funded, four-year project which aims to improve the ability of Pakistan’s commercial agriculture and livestock sectors to compete in international and national markets in the four target product lines; meat, high value and off season vegetables, mangoes and citrus. Agricultural Market Development (AMD) is a market driven and results oriented enterprise development activity that will increase incomes and employment in rural areas through business analysis and customized technical assistance to agribusiness enterprises producing, processing, marketing and supplying services to four target product lines: livestock, mangos, citrus and high-value, off-season vegetables (HV/OSV). AMD will catalyze private investment and commercial finance to the agricultural sector and mitigate investment risks by delivering technical assistance and expanding commercially sustainable linkages between producers, post-harvest enterprises, marketers and service providers. To ensure the long-term sustainability and success of these investments, AMD will also strengthen the commercial linkages between farmers and post-harvest enterprises and provide technical assistance and training on strategically important production inputs and practices.Overall, AMD targets a 50 percent female participation rate at all levels of the packing and processing sectors.

 

In support of AMD Project’s wider objectives and to align all proposed interventions with gender integration requirements, our gender integration strategy seeks to achieve two primary gender specific project objectives:

 

Objective 1: Equip Women Entrepreneurs and Laborers with the resources they need to increase agricultural productivity and

Objective 2: Works towards an environment that encourages, supports, and respects women’s inclusion and entrepreneurship. 

 

Our effort to achieve these gender specific objectives will translate into the following gender Inclusion goals:

 

·         Assist in linking or organizing women into clusters so that women can collectively access resources such as extension and inputs, markets, information and peer support

·         Establish more formal agreements between buyers and women farmers

·         Engage successful women entrepreneurs and women’s associations to act as role models and mentors to women clients and fledgling women’s groups/associations.

·         Ensure that all grants administered integrate gender and prevent incidence of child labor into grant design, evaluation, and implementation.

·         Promote contract farming that effectively reaches women.

·         Ensure that women receive appropriate and women friendly technologies, e.g. that reduce burden of land preparation and cultivation, water collection, irrigation, harvesting, and processing and enable women to save valuable time and increase productivity

·         Continuously engage male community leaders and family members through a culturally sensitive process that garners their support for women’s new or different roles.

·         Provide trainings to private sector commercial agriculture partners and all grantees on appropriate codes of conduct and gender-sensitive workplace standards.

 

An important pre requisite to achieve the goals outlined above is gender sensitization of AMD Project grantees and their existing staff through gender sensitization training and code of conduct training sessions. AMD Project will use a local subcontractor to conduct initial gender sensitization trainings for AMD Project grantees within each product line. These trainings will be followed by gender assessments of AMD Project grantee organizations and capacity building workshops that provide a platform for grantees to share experiences about their respective gender integration practices, challenges and learn how to effectively mainstream gender into their organizations.

 

 

Objective of the Technical Assistance 

The objective of this assignment is to work with AMD Project’s Gender Advisor and conduct gender assessment reports for 29 AMD Project Grantees and conduct follow up capacity building workshops.  The technical assistance (TA) provided by the international specialist will include collaborating with the Gender Advisor to assess the status of women’s integration at AMD Project grantee workplace sites and office premises, identify achievements and challenges and conduct follow up capacity building workshops for all AMD grantees. The consultant will visit offices and operational sites of AMD Project Grantees in three sectors – Citrus, High Value/Off Season Vegetables and Livestock for initial gender assessment meetings, compile findings and observations from these meetings as individual gender assessment reports for each grantee. Based on findings and recommendations of gender assessment reports, the consultant and Gender Advisor will conduct capacity building workshops to overcome challenges identified in gender assessment reports and encourage adoption of international and local best practices for effective gender integration.

 

It is envisioned that the STTA will spend 1-2 working days to conduct site visits for each of the 28 AMD Project grantees, 5-7 days to compile individual gender assessment reports for each grantee and spend 10-20 days to prepare and conduct capacity building workshops for groups of grantees in each sector in collaboration with the Gender Advisor. Out of a total of 29 grants, 1 grant has been awarded to 13 mango sector beneficiaries. Mango Sector beneficiaries do not require gender assessments however capacity building workshops will be conducted for them.

 

Assignment Scope:

The ISTTA tasks will include but not be limited to:

·         Background reading of AMD Work Plan, AMD Gender Implementation Strategy, Grant Agreement contracts for each individual grantee Gender Sensitization Training material prepared and delivered to AMD Project Grantees;

·         Carrying out gender assessment of each AMD Project grantee through site visits;

·         Compile individual gender assessment reports for each AMD Project Grantee based on findings and observations of each site visit. These gender assessment reports should highlight status of gender integration, challenges and recommended areas for improvement;

·         Based on gender assessment reports, collaborate with AMD Project Gender Advisor to prepare relevant material, design and conduct capacity building workshops for AMD Project grantees in High Value/Off Season Vegetables, Citrus and Livestock Sectors.

·         Collaborate with Gender Advisor to prepare material and conduct capacity building workshops for mango sector beneficiaries;

·         Any other tasks assigned by the Gender Advisor related to gender assessment reports and/or capacity building workshops. 

 

Deliverables:

I.        Provide individual gender assessment reports for 28 AMD Project grantees which include the following sections;

a.     Status of gender integration in AMD Project Grantee workplace premises and extent of compliance with gender integration guidelines specified in AMD Project Grant Agreements;

b.     Achievements and Challenges.

c.     Recommendations for areas of improvement and proposed solutions

d.     Pictorial evidence of best practices and areas for improvement

II.        Prepare material and conduct capacity building workshops for grantees in all 4 sectors.

III.        Submit the Summary STTA report for the AMD project’s COR with power point presentation(s) using the AMD template within 5 business days of completion of the assignment along with other deliverables listed in this section for review.

 

Estimated level of effort (LOE) for the assignment:

66 Days, Including 2 days for background review, 2 travel days, 2 days for meetings with AMD officials, 34 days for gender assessments of grantees, 20 days for capacity building workshops, and 5 days for report writing.

 

Timing of the Assignment:

The STTA assignment will commence in February 2017 and may end in May 2017 with a total LOE of 66 days, that assignment will be broken up into two 33 day segments.

Qualifications:

  • An advanced degree in the field of gender studies, sociology, psychology, or any other relevant field;
  • Extensive experience of expertise in gender assessments and sensitization, experience in South Asia and/or Muslim majority countries will be an added advantage;  
  • At least 10 -15 years of professional practical experience in gender related activities and capacity building experience;
  • Demonstrated ability to work in a team;
  • Demonstrated interpersonal and communication skills; and
  • Documented excellent writing skills in English
  • Oral fluency in English.
  • Ability to travel to Pakistan

We are seeking to fill this position immediately and will be interviewing qualified candidates on a rolling basis.