CLUSTER DEVELOPMENT BASED AGRICULTURE TRANSFORMATION PLAN VISION-

2025
Floriculture Cluster Feasibility and Transformation Study

Planning Commission of Pakistan, Ministry of

Planning, Development & Special Initiatives
February 2020

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FOREWORD
In many developed and developing countries, the cluster-based development approach has
become the basis for the transformation of various sectors of the economy including the
agriculture sector. This approach not only improves efficiency of development efforts by
enhancing stakeholders’ synergistic collaboration to resolve issues in the value chain in their
local contexts, but also helps to gather resources from large number of small investors into
the desirable size needed for the cluster development. I congratulate the Center for
Agriculture and Bioscience International (CABI) and its team to undertake this study on
Feasibility Analysis for Cluster Development Based Agriculture Transformation. An
important aspect of the study is the estimation of resources and infrastructure required to
implement various interventions along the value chain for the development of clusters of
large number of agriculture commodities. The methodology used in the study can also be
applied as a guide in evaluating various investment options put forward to the Planning
Commission of Pakistan for various sectors, especially where regional variation is important
in the project design.

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FOREWORD
To improve enhance Pakistan’s competitiveness in the agriculture sector in national and
international markets, the need to evaluate the value chain of agricultural commodities in the
regional contexts in which these are produced, marketed, processed and traded was long
felt. The Planning Commission of Pakistan was pleased to sponsor this study on the
Feasibility Analysis for Cluster Development Based Agriculture Transformation to fill
this gap. The study aims to cover a large number of agriculture commodities spread in
various clusters throughout the country.

I truly hope that the policies, strategies, and interventions suggested in this report will
facilitate the federal and provincial governments to chalk out and implement plans for
cluster-based transformation of the agriculture sector.

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FOREWORD
This is part of the series of studies on 33 agriculture commodities undertaken for the
purpose of preparing a cluster-based transformation plan based on the regional realities in
the entire value chain including production, processing, value addition, and marketing. I
congratulate the whole team of the project especially the Team Lead, Dr. Mubarik Ali to
undertake and successfully complete this monumental study. We are thankful to all
commodity specialists who have contributed to this assignment. The CABI Project officers
Mr. Yasar Saleem Khan and Ms. Aqsa Yasin deserve appreciation. I truly believe that this
study will serve as a basis to make and implement plans for cluster-based agriculture
transformation. I hope you will enjoy reading the study and it can help you making your
investment decisions along the value chain of various agriculture commodities.

Dr. Babar Ehsan Bajwa

Regional Director
CAB International

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FOREWORD
This report is part of the series of studies on 33 agriculture commodities to prepare the
agriculture transformation plan by incorporating regional realities at the cluster level. In the
report, the clusters of various commodities are identified and characterized, and viable
investment options along the value chain of each cluster are proposed. For this purpose, the
study team has analyzed macro data, reviewed the literature, and made extensive
consultation with stakeholders along the value chain. Foreign and local internationally
reputed consultants, Dr. Derek Byerlee and Dr. Kijiro. Otsuka and national consultant Mr.
Sohail Moghal were also engaged to understand the cluster-based development approach
and conduct cluster-based feasibility analysis. An EXCEL-based Model was developed
which was validated by our national consultants. Separate viabilities for individual
technologies and products suggested in each commodity are also estimated. This
humongous task would not have been possible to complete without the excellent
cooperation and facilities provide by CABI, the hard work of commodity specialists and our
research team especially Mr. Yasar Saleem Khan and Ms Aqsa Yasin. The true reward of
our hard work is the implementation of the proposed policies, strategies and interventions to
develop agriculture commodity clusters in the country.

Dr. Mubarik Ali

Team Leader
Cluster Development Based Agriculture
Transformation Plan-Vision 2020 Project
Planning Commission of Pakistan and
CAB International

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ACKNOWLEDGEMENT
It is not possible to mention the names of all those who collaborated with us in completing
this report, but my foremost gratitude goes to numerous stakeholders along the value chain
who generously shared the information about barley production, marketing, trade and value
chain. Without their support, this report would not have reached to the level of present
quality.

My sincere thanks go to Planning Commission of Pakistan for this initiative and especially
financial assistance to complete the project activities. Here I am especially thankful to Dr.
Muhammad Azeem Khan (Ex-Member, Food Security and Climate Change, Planning
Commission of Pakistan), Dr. Aamir Arshad (Chief Agriculture, Planning Commission of
Pakistan), Mr. Muhammad Akram Khan (Project Director; CDBAT project) and other
CDBAT project team member Mr. Muhammad Arif (Research Associate) and Dr. Habib
Gul (Research Associate) for successful coordination and support for the project.

I am also grateful to Center for Agriculture and Bioscience International (CABI) and its
Regional Director for Central and West Asia, Dr. Babar Ehsan Bajwa and CABI team
especially Mr. Yasar Saleem Khan for selecting me as commodity specialist for this task and
offering outstanding cooperation, support and advice during all the stages of this project.
However, the research team takes the responsibility of any shortcoming left in the report.

Mr. Shamoon Sadiq

Senior Author

Citation:

Sadiq Shamoon, Ali Mubarik and Yasin Aqsa, (2020) Floriculture Cluster Feasibility and
Transformation Study. In Ali Mubarik, (ed.) (2020). Cluster Development Based Agriculture
Transformation Plan Vision-2025. Project No. 131(434)PC/AGR/CDBAT-120/2018, Planning
Commission of Pakistan, Islamabad, Pakistan and Center for Agriculture and Biosciences
International (CABI), Rawalpindi, Pakistan.

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DISCLAIMER

This report is prepared by using the data from various published and unpublished sources
and that obtained during the consultations with stakeholders. The research team took utmost
care to arrive at the figures to be used, but is not responsible for any variation of the data in
this report than those reported in other sources. Moreover, the views expressed in this report
are purely of the authors and do not reflect the official views of the Planning Commission of
Pakistan, Ministry of Planning Development and Reforms or the Center for Agriculture and
Bioscience International (CABI).

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TABLE OF CONTENTS
FOREWORD......................................................................................................................... 6
ACKNOWLEDGEMENT ....................................................................................................... 7
TABLE OF CONTENTS ....................................................................................................... 9
LIST OF TABLES ............................................................................................................... 11
LIST OF ACRONYMS ........................................................................................................ 12
EXECUTIVE SUMMARY .................................................................................................... 13
1. INTRODUCTION ......................................................................................................... 17
1.1. Flower Production & Trade in Pakistan ................................................................. 18
1.2. Production of Flowers at Global Level ................................................................... 20
1.3. International Flower Trade .................................................................................... 21
2. GOALS AND OBJECTIVES ........................................................................................ 25
3. METHODOLOGY ........................................................................................................ 26
4. LITERATURE REVIEW ............................................................................................... 28
5. IDENTIFICATION AND CHARACTERIZATION OF CLUSTERS ................................ 31
5.1. Identification of Clusters ........................................................................................ 31
5.2. Characterization of clusters ................................................................................... 34
5.3. SWOT Analysis..................................................................................................... 39
5.4. Value Chain Analysis ............................................................................................ 44
5.4.1. Input Providers:.............................................................................................. 44
5.4.2. Structure of Flower Production ....................................................................... 44
5.4.3. Structure of Marketing Channels .................................................................... 44
5.4.4. Secondary or Terminal Market ....................................................................... 46
6. CHALLENGES FACED BY THE CLUSTERS ............................................................. 47
6.1. Production Level Constraints ................................................................................ 47
6.2. Market Level Constraints ...................................................................................... 49
6.3. Domestic Market Inefficiency ................................................................................ 49
6.4. Export Market Inefficiency ..................................................................................... 50
6.5. Inadequate Value Chain Infrastructure .................................................................. 51
6.6. Lack of Processing................................................................................................ 52
7. CLUSTER POTENTIAL ............................................................................................... 53
7.1. Production Potential .............................................................................................. 53
7.2. Demand Potential ................................................................................................. 53
7.3. Production to Export Ratio .................................................................................... 54
7.4. Improvement in Quality ......................................................................................... 54
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 7.5. Reduction in Post-Harvest Losses ........................................................................ 55
7.6. Establishment of Allied-industries ......................................................................... 55
8. PLAN, STRATEGIES, POLICIES AND NETWORKING .............................................. 56
8.1. The Plan ............................................................................................................... 56
8.2. Macro Policies ...................................................................................................... 56
8.3. Strategies.............................................................................................................. 57
8.3.1. Social Mobilization and Networking ................................................................ 57
8.3.2. Strengthening of Floriculture R&D.................................................................. 58
8.3.3. Establishment of Floriculture Center .............................................................. 59
8.3.4. Improved Management Practices................................................................... 61
8.3.5. Capacity Building of Farmers ......................................................................... 62
8.3.6. Establishment of Certified Nursery ................................................................. 63
8.3.7. Modern Production and Market Infrastructure ................................................ 63
8.3.8. Introduction of Processing.............................................................................. 63
8.3.9. Database for Floriculture ................................................................................ 64
9. BENEFITS AND COST OF CLUSTERING .................................................................. 65
9.1. Summary of Costs ................................................................................................ 65
9.2. Economic Returns (Rose Cluster) ......................................................................... 66
9.3. Economic Returns (Gladiolus Cluster) .................................................................. 67
9.4. Implementation Plan ............................................................................................. 68
9.5. Conclusion ............................................................................................................ 68
10. ROGRAMS AND PLANS ......................................................................................... 69
11. ANNEXURES ........................................................................................................... 71
Annex 1. List of Stakeholders Consulted ......................................................................... 71
Annexure 2: List of Data and Literature Reviewed ........................................................... 72
Annexure 3: TANFLORA INDIA MODEL ......................................................................... 73
Annexure 4: Flow of Costs and Returns .......................................................................... 75

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LIST OF TABLES
Table 1: Local Production and Imports during 2016 ............................................................ 20
Table 2: Export Trends in Flowers by Major Exporting Countries 2002-17 .......................... 21
Table 3: Import Trends in Major Flower Importing Countries during 2002-17 ...................... 24
Table 4: Main Flowers (Cut and Loose) Cultivation with Respective regions in Pakistan ..... 31
Table 5: Flower Cluster Characteristics ............................................................................... 34
Table 6: Table 6: SWOT Analysis for Rose and Gladiolus Cluster in Pakistan .................... 40
Table 7: Gaps and Constraints at Production Level............................................................. 48
Table 8: Gaps and Constraints in Domestic and International Marketing............................. 51
Table 9: Gaps and Constraints in Value Chain and Processing .......................................... 52
Table 10: Targets of Flower Cluster Plan ............................................................................ 56
Table 11: Summary of Investment Costs for Rose and gladiolus clusters ........................... 65
Table 12: Additional operational costs (000 US$) due to upgradation plan at different
segments of the value chain by cluster................................................................................ 65
Table 13: Economic Returns and Investments in Punjab Cluster (Rose) ............................. 66
........................................................................................................................................... 66
Table 14: Economic Returns and Investments in Punjab Cluster (Gladiolus) ...................... 67
Table 15: Summary of Target related Interventions in Flower Clusters................................ 69
Table 16:Flow of Costs and Returns of Surkha Rose at Value Chain Actors Level – Exporter
(Rs) ..................................................................................................................................... 75
Table 17:Flow of Costs and Returns of Gladiolus at Value Chain Actors Level – Domestic
Supply (Rs.) ........................................................................................................................ 75

LIST OF FIGURES
Figure 1: Floriculture exports from Pakistan-(Tonnes, 2017) ................................... 19
Figure 2: Trade flows of flower bulbs, cut flowers, cut foliage and other living plants
(excluding intra-EU) (Rijswick, 2016) ....................................................................... 23
Figure 3: Focal point for Cut Rose and Gladiolus Flowers in Pakistan ..................... 33
Figure 4: Cut Flower Supply Chain in Pakistan ........................................................ 45
Figure 5: Packing & Transportation of Flowers ........................................................ 46
Figure 6: De-hydration of loose rose petals.............................................................. 46
Figure 7: Poor Postharvest handling practices in the flower cluster area ................. 50

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LIST OF ACRONYMS
AARI Ayub Agriculture Research Institute
ADP Annual Development Plan
AMIS Agriculture Management Information Service
B2B Business-to Business
BOI Board of Investment
CABI Center for Agriculture and Bioscience International
CDF Cluster Development Fund
EPB Export Promotion Bureau
FEGs Farmers Enterprise Groups
FFS Farmers Field School
FSC&RD Federal Seed Certification & Research Development
GAP Good Agriculture Practices
HEC Higher Education Commission
ICT Information and Communication Technology
IPM Integrated Pest Management
IRR Internal Rate of Return
ITC International Trade Center
KP Khyber Pakhtunkhwa
NARC National Agricultural Research Center
NPV Net Present value
NRSP National Rural Support Programme
PARC Pakistan Agriculture Research Center
PCP Planning Commission of Pakistan
PHDEC Pakistan Horticulture Development & Export Company
PMU Project Management Unit
RSP Rural Support Programs
SMEDA Small and Medium Enterprises Development Authority
SPS Sanitary and Phyto-Sanitary
SWOT Strengths, Weaknesses, Opportunities, and Threats
TDAP Trade Development Authority of Pakistan
UAF University of Agriculture Faisalabad
UK United Kingdom
USA United States of America
WTO World Trade Organization
ZTBL Zarai Taraqiati Bank Ltd

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EXECUTIVE SUMMARY
Growing of flowers and selling them in the market has become a huge sector at the global
level which has been booming at an average growth rate of 7% per annum since 2001 and
its value has surpassed US$42 billion in 2019. It has been one of the most dynamic and fast
growing industry in the past two decades all over the world with the major paradigm shift of
production centers from developed to developing countries due to cheap labor and suitable
environments in the latter. Enhanced incomes, change in life style of people and enhanced
use of cut flowers for special occasions has been the main driving forces behind the
increased demand especially of high-quality flowers. The sector employs millions of people
and provide them livelihood worldwide.

International trade of flowers which has been growing at over 5% per annum since 2001, has
reached at US$ 8.6 billion in 2017. The Netherlands, with its geographic location and
development of capital intensive production technologies and marketing structure has
become the world’s main exporter of floricultural products and center for floriculture trade in
the world. Other countries like Colombia, Kenya, Ecuador, China, Canada, USA, France,
Britain and Italy have also well-established flower industry. Pakistan remained behind of
benefiting from the booming flower sector nationally and internationally as it has not
attempted to build necessary infrastructure to meet these demands. As a result, the country
has lagged far behind the global averages in yields, quality, price and exports of various
flowers, although it has huge potential to grow diversified flowers in various regions on
account of availability of favorable agro-climatic conditions and cheap labor.

In view of its potential in generating incomes, foreign exchange and employment, booming
global demands and Pakistan’s suitable diversified eco-regional environment for flower
cultivation, the Planning Commission of Pakistan (PCP) has decided to make floriculture a
modern, sustainable, and profit-driven sector which can not only meet the local demand, but
also export the quality flowers. In the first step, the Commission has initiated this study to
analyze the flower value chain including its production, marketing, trade and input supplies,
identify gaps and potentials, and recommend interventions, policies, and strategies along the
chain to make flowers in Pakistan globally a competitive and self-driving industry. In view of
regional variation in the value chain across various flowers, this analysis is conducted for
major flower clusters in Pakistan. To achieve the objective of the study, a large number of
stakeholders are consulted, related macro data are analysed and literature are reviewed. An
EXL model has been developed and is used to estimate the economic viability of the
package of suggested interventions.

In the current feasibility study two flower clusters i.e. Rose (rose cut flowers and loose
petals) and Gladiolus, have been identified for more detailed study of their respective value
chains. As part of this study, several gaps were identified in the production, postharvest
handling and marketing components of the value chain, specifically with the production,
infrastructure, technology, market structure and availability of quality support services. At
production level, these include the lack of appropriate planting material and appropriate
management practices to produce high quality marketable flowers such as inappropriate
peat material, absence of soil treatment, ineffective insect and disease control, flooded
irrigation and low plant density etc. At post-harvest level major constraints are absence of
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handling preservatives, packaging materials, cold storage, refrigerated transport, value
addition infrastructure for domestic and export markets, branding, attractive packaging and
disconnect with international market are major gaps.

In order to address multilevel challenges from production to product and market

development, performance targets are set, based on leading flower growing countries
average yield, quality and export and the interventions are designed to meet these targets
over the period of five to ten years. Based on these parameters and keeping in view the
gaps and constraints, specific interventions have been proposed for both the clusters.

These interventions include establishment of Pattoki Floriculture Center with all the
supportive elements as common facility center for small flower farmers by incentivizing large
numbers of small floriculture farms under protected cultivation adhering to international
requirements, strengthening flower research, organizing producers into Farmers
Entrepreneur Groups (FEGs) to resolve local issues, implementing quality standards, and
ensure quality in groups, capacity building of stakeholders along the value chain, supplying
true-to-type plants through tissue culture to meet the demands of consumers in various
markets and linking growers with domestic markets and traders with international markets.
The Pattoki Floriculture Center can also serve as Flower Auction Centers which can play a
vital role as common platform for the grower and buyers. There is an urgent need in
Pakistan for the application of better technologies to boost the floriculture industry’s
performance such as greenhouse technology for export quality flower production, cold
storages to preserve the freshness of flowers, provision of improved packaging materials
and preservative solutions to create attraction for the consumers. It is estimated that about
35% losses at the post-harvest level is wasted due to lack of cool chain system. Even those
which reach the market are of poor quality with very short vase life.

These interventions are to be initiated by government in partnership with private sector and
executed in collaboration with participation of private sector including the farmers, exporters,
traders and processors. A time-horizon of five to ten years has been set for realizing the
intended outcomes of the cluster development interventions. The total estimated investment
of this cluster development/up-gradation plan is US$25.04 million for both the clusters. The
public sector share in the total investment would be about 42% in terms of strengthening
research, building capacities of stakeholders along the value chain, put basic infrastructure
like Floriculture Centre in the hub of the clusters, incentivizing the green houses, value chain
and processing infrastructures, and providing interest free loans for one year on the building
of these infrastructures. We believe that these incentives will bring the remaining 58% of the
investments in the private sector.

The investment on capacity building and improved value chain and processing infrastructure
will increase the operational costs of various activities along various segment of the chain,
which is estimated to be US$2.9 million during the last year of the plan in both the clusters.
Accounting for all the yearly value chain costs including the production, processing and
marketing costs applied over five years and investments applied, the estimated Net Present
Value (NPV) of the plan would be US$10.5 million and US$ 2.7 million, and Internal Rate of
Return (IRR) at 52% and 25% for the rose and gladiolus clusters respectively. These IRRs
are based on respective investment costs in each product cluster and the present value of
resulting revenues over a period of five years. More cluster-level details of revenues,
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operational costs, and investments under various heads can be seen in the Summary Sheet
given below.

This Up-gradation Plan is to be initiated by government and executed in collaboration with

participation of private sector including the farmers, traders and their groups/associations.
This Up-gradation Plan is expected to produce far reaching economic and social impacts,
including increased production of high quality flowers and export benefiting all the
stakeholders. These interventions are expected to create over 4,000 jobs along the value
chain and generate nearly US$ 686,000 foreign exchange per year from increased quality
exports.

Strengthening of research, capacity building of the growers on production management

(GAP/SPS) will be the key for the success of the Up-gradation Plan.

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Summary Sheet of flowers clusters
Item Rose Gladiolus Overall
Area of cluster focal point (ha) 1,200 1,200 2,400
Production (tonnes) 16,302 16,302 32,604
Yield of the cluster (tonnes/ha) 14 14 14
Production from improved practices during 5th year
3,260 3,260 6,521
(tonnes)
Gross revenue from improved management practices (000
US$) 4830.2 3777.5 8607.7
Saved production from reduced post-harvest losses
1,956 1,956 3,912
(tonnes)
Value of saved production - reduced PH losses (000 US$) 2898.1 2266.5 5164.6
Added export due to improved value chain in 5th year
86 108 194
(tonnes)
Value of increase export during 5th year (000 US$) 381.1 305.7 686.8
Production through improved VC in 5th year - domestic
1,076 1,076 2,152
market (tonnes)
Value of production of improved VC in 5th year-domestic
market (000 US$) 5144.8 3057.2 8202.0
Number of floriculture center 1 - 1
Cost of floriculture center (000 US$) 740.7 0 740.7
Total number of small green houses required 50 50 100
Cost of greenhouses (000 US$) 7407.4 7407.4 14814.8
Number of small cold storage required 20 20 40
No of Tissue culture labs 1 1 2
Total Investments (000 US$)
Research & Development Level Interventions 2259.3 1814.8 4074.1
Capacity building of stakeholders 88.4 30.1 118.5
Tissue culture labs 298.9 156.7 455.6
Floriculture Center 740.7 0.0 740.7
VC infrastructure (Cold storage, green house) 8888.9 8148.1 17037.0
Processing infrastructure (Dehydration plant) 88.9 0.0 88.9
Loan 1020.4 259.3 1279.7
Marketing/Export level interventions 333.3 913.5 1246.9
Total public sector investments, including loans and
subsidies 6030.8 4471.3 10502.1
Total private sector investment 7688.0 6851.3 14539.3
Production level investments 2646.6 2001.6 4648.1
Value chain level investments and processing 9998.2 9061.7 19059.9
Marketing and export level investments 333.3 259.3 592.6
Floriculture Center 740.7 0.0 740.7
Overall benefits (000US$) and rate of return
Total increase in production – all intervention in 5th year
5,217 5,217 10,433
(tonnes)
Total investments (US$) 13718.8 11322.5 25041.4
th
Gross revenue due to all interventions in 5 year (US$) 13254.3 9406.9 22661.1
Increase in operational cost during the 5th year (US$) 541.4 2350.6 2892.0
Net cash flow after in 5th year (undiscounted) (US$) 12231.4 0.0 18806.2
NPV (M.US$) 10544.9 2719.8 13264.7
Internal Rate of Return 52% 25% 41%
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1. INTRODUCTION
Cut flower business deals with the growing and marketing of flowers along with their specific
length of stem and leaves. The cut flowers are usually used for indoor decoration. Live cut
flowers have a limited life. The majority of cut flowers can be expected to keep alive for
several days with proper care and postharvest handling strategies. They can be treated in
various ways to increase their life. To keep cut flowers beautiful and longer, flower stems
should be placed in water immediately. Alternatively, the air will rapidly move into the water-
conducting tissues and plug the cells that will cause early wilting of the flower. The return on
floriculture crops is much higher than the other agricultural crops. Cut flower demand
fluctuates during the year depending upon various social functions whereas supply of cut
flowers fluctuates due to seasonal effects of weather.

Agriculture in Pakistan mainly revolves around the major crops like wheat, rice, cotton,
maize, sugarcane, etc. Flowers occupy only 0.5% of the cultivated area. However, flower
cultivation and its marketing (to be referred here as ‘Floriculture’ in this study) is a fast
growing sector of Pakistan, which will be the best option of enhancing income of farmers and
other stakeholders along the value chain and eradicate poverty from rural areas. As Pakistan
is blessed by favorable agro climatic and socioeconomic conditions, such as cheap labor,
flat land, irrigation facility, suitable soils, etc., it has the potential to develop a strong
floriculture sector. The floriculture sector is famous but small around big cities like Karachi,
Hyderabad, Lahore, Rawalpindi, Islamabad, Peshawar, Faisalabad, Multan and Quetta
where flowers consumption is high.

The Pakistani floriculture sector is not very well developed because of low productive
propagating flower material being used, poor disease and pest control, lack of knowledge
about the market, non-availability of skilled labor during harvesting, and unavailability of
suitable facilities for harvest. The issues related to market are underdeveloped domestic
market, lack of post-harvest treatments like cold chain storage facilities, inadequate transport
facilities, and lack of collaboration between private and government sectors. All these factors
contribute towards low productive, low quality, and high cost flower business in the country.
(Floral Daily, 2015).

Demand for cut flowers in Pakistan is growing tremendously as more and more people are
becoming aware of the value of beauty of flowers as decorative items. Pakistan has
favorable climate and cheap labor for growing these crops whereas they need much less
resources for production. Unlike other crops and horticulture cultivation where returns are
seasonal, the flowers can give premium prices almost round the year. Net profit against the
investment is much higher for these crops compared with others conventional and
horticultural crops. However, there are lack of needed resources, interest by government,
and availability of skilled human resource to develop the floriculture sector up to international
standard. It is need of the time to produce skilled personals and provide required
infrastructure and resources to promote floriculture in the country which can ensure the
competitiveness of our farmer, save the economy from foreign exchange deficit by boosting
exports, and eradicate poverty in rural areas.

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Major advantages of flower production include:

• Favorable agro climatic conditions

• Easy availability of land
• Cheap labor
• Proximity to markets in Japan, Pacific Rim, South-East Asia and Middle East countries
which have a large growing demand.
• In west, the biting cold of winter months curtails flower production. As this period is the
prime cultivation time in Pakistan, the potential is enormous.
• Cut flowers fetch maximum price during first and last quarter of the year, whereas, during
2nd and 3rd quarter, prices is less. The Pakistani flowering season is during this period from
November to April; hence the produce will be available in 1 st and last quarters, thus
commanding highest prices in the international market.

1.1. Flower Production & Trade in Pakistan

Major flowers grown and marketed in Pakistan are:
• Rose (Surkha Ghulab and cut roses)
• Gladiolus
• Tuberose
• Marigold
• Annual Chrysanthemum
• Statice (Gul-e-Sataish)

Statistical data reveals that almost 10-12 thousand tonnes of flowers are produced in
Pakistan on an estimated area of 7,080 ha with scanty data available on fresh flowers. This
implies that only 0.5% of total cropped areas are under flower crops in the country.
According to a recent survey, around 2,500 growers along with over 1,000 wholesalers and
retailers are involved in the flower business in the country (Ahmad et al., 2018).

During 2017, 14.7 million Gladiolus, 16.8 million rose stems, while 292 tonnes of Surkha
roses were marketed from Pattoki mandi (the biggest flower market in the country). The
major share of total flower area of about 4,450 ha is in Punjab. Flower production is
emerging sector in KP and area under various flower crops such as roses, gladiolus and
lilium are fast increasing and have reached around 1,012 ha. In Sindh, mostly Surkha rose,
Motia/Jasmine, and marigold are being grown on an area of about 1,214 ha (UAF survey).
While rest of area is in Baluchistan (only a few hundred ha), Kashmir (Rawlakot and Kotli),
and recently emerging in Gilgit Baltistan.

Since last decade, production of flowers in Pakistan has increased and similar trend is
expected to be continued during the coming years (PARC 2014). Moreover, recently, new
flower crops like stock, snapdragon, delphinium, sunflower and celosia have been
introduced by the University of Agriculture, Faisalabad, and their commercial production has
also been started which will further promote flower production in coming years in Pakistan.

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Currently, growers are getting on an average around 135,850 gladiolus stems from one ha of
land, while average rose petal yield is around 13.59 tonnes of fresh petals per ha and 1.73
million stems of cut rose per ha; however, this may vary based on several production and
handling factors (Dr. Iftikhar Ahmed, UAF-Survey).

Flowers are highly perishable and require immense care during production as well as in
marketing. It involves sophisticated value chain infrastructure which can boost the returns in
floriculture. Most of the flowers produced in Pakistan are sold locally and very few are
exported as the produce does not meet the international export standards, large numbers of
cut flowers are wasted because of lack of infrastructure, postharvest mishandlings and
improper marketing.

Sporadic efforts are being made from Pakistan for export of floriculture products, since last
two decades. However, due to lack of proper patronage from public sector and unavailability
of cool chain and other marketing infrastructure, no regular export is being done from
Pakistan so far. In 2017, the total exports were 434 tonnes with the value of US$ 1.059
million which put Pakistan at 62nd position among flower exporting countries in the world.
Major importers of Pakistani flowers are Germany and United Arab Emirates (Figure 1).
Major exports are of cut roses (Table 2).

TOTAL EXPORTS USD 1.1 MILLION-2017

United Arab
Germany, 80 Emirates, 57

Egypt, 56
Others, 381
Jordan, 35

United
Iraq, 29
States of
America,
35
China, 29

Viet Nam, 28
Saudi
Arabia, 12Tunisia, 20

Figure 1: Floriculture exports from Pakistan-(Tonnes, 2017)

Source: ITC Data

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Table 1: Local Production and Imports during 2016
Type of Flower Production/Year Demand/Year (Million) Import (Million)
(Million)
Cut Rose 109.500 Sticks 136.875 Sticks 27.375 Sicks
Gladiolus 73.000 Sticks 91.250 Sticks -
Tuberose 11.000 Sticks 14.600 Sticks -
Lilium No local Production 0.913 Sticks 0.913 Sticks
Chrysanthemum -do- 1.280 Sticks 1.280 Sticks
Gupsophilla -do- 0.913 Sticks 0.913 Sticks
Others -do- 1.460 Sticks 1.460 Sticks

Source: ITC Data

Due to change in life style of the people as well as growing real estate, event management,
hotel and restaurant businesses in the country, demand for various floriculture products has
increased several folds during past decade. Demand has also risen due to globalization;
masses have become familiar with role of flowers in daily life to fulfill aesthetic needs. There
has been an increased demand of quality flowers in the major urban areas such as Karachi,
Lahore Islamabad/Rawalpindi, Faisalabad, Multan and Hyderabad. In order to fulfill the local
demand Pakistan has been importing various varietal flowers which are in short production
and/or not produced in Pakistan, mainly cut flowers and bulbs from Holland, Malaysia, Sri
Lanka, Kenya, Saudi Arabia & Thailand.

1.2. Production of Flowers at Global Level

The flower demand worldwide is changing very rapidly; many more flowers are needed year
round for the fast developing impulse sales in the mass-market. According to Future Market
Insight (FMI), the global revenue from floriculture is projected to supersede US$ 43.2 Billion,
registering a robust annual growth rate of 7.0 percent in 2019. This growth is expected to
continue due to extensive demand for floriculture—an important activity in agro-business,
specifically in Asian and Southeast Asian markets, considering favorable climatic conditions.
Scope for floriculture in developing economy is anticipated to flourish as a mainstream
occupation, majorly dominated by small and medium sized enterprises. Moreover, low cost
of production, transportation, and marketing especially due to the environmental factors,
infrastructure, and low labor costs in developing countries, is also a critical factor contributing
to the growth of floriculture industry.

Worldwide production of cut-flowers has become more sophisticated in producing new and
better quality products to meet the consumers’ evolving demand. To meet this growing and
changing demands, production has to move from countries that have traditionally been
consumers and growers, such as the Netherlands, to other relatively new producing
countries such as Colombia, Ecuador, Kenya and Ethiopia. Some of these countries have
similar climatic and socio-economic environment as Pakistan, however, due to lack of socio-
political stability and corporate culture, Pakistan fails to bring value chain infrastructure

20 KNOWLEDGE FOR LIFE

needed for the floriculture sector thus the country is unable to streamline the floriculture on
modern lines in order to fetch an appropriate share in global flower trade.

During the last 40 years, Netherland has created a big flora culture industry and now more
than 100 countries are sending their flowers and plants to this market and from there
wholesalers send them to customers all over the globe. Those wholesalers are able to
supply each customer with wide range of products. Every day millions of different flowers
and plants in all kind of colors are available for the international buyers and all according the
international standards. It took about 40 years to develop and follow these standards, which
helps supplying customers all over the world with a guaranteed fresh product having a long
vase life. Netherland is also the middle point of the daily market in selling flowers and plants.
The two big auctions "Aalsmeer" and "Flora Holland" markets are operating five days a
week, play a major role in the international selling of flowers and plants. On those auctions
the daily world market prices are settled and in a few minutes’ people all around the world
can follow this by high communication systems and latest techniques.

1.3. International Flower Trade

The world trade of flowers has reached at US$8.6 billion in 2017 from US$4.1 billion in 2002.
During the last 15 years, it grew with an average growth rate of 5.1% per annum, although it
has been almost stagnated (rather has slightly negative growth rate) during the last 5 years.
The highest growth in flower trade during the last 15-year was in Ethiopia followed by China.
Pakistan picked up its flower trade (mostly de-hydrated rose) during 2007-12 although from
almost zero base but the growth could not be sustained, as its last five years’ growth is now
on a declining trend (Table 2).

Table 2: Export Trends in Flowers by Major Exporting Countries 2002-17

Exported Value (US$ Million) Growth Rates (%)

Exporters
2002 2007 2012 2017 15 Years 10 Years 5 Years
World 4122.5 7123.1 8763.5 8639.8 5.1 1.9 -0.3
Netherlands 2152.4 3944.6 4566.6 4207.0 4.6 0.6 -1.6
Colombia 672.6 1114.9 1270.0 1399.6 5.0 2.3 2.0
Ecuador 291.1 403.0 771.3 881.5 7.7 8.1 2.7
Kenya 99.6 313.4 453.0 540.9 11.9 5.6 3.6
Ethiopia 0.0 68.8 162.0 196.6 85.2 11.1 3.9
Malaysia 22.7 52.0 121.0 107.5 10.9 7.5 -2.3
China 6.5 35.7 90.0 103.9 20.2 11.3 2.9
Italy 82.0 91.8 84.8 98.2 1.2 0.7 3.0
Pakistan 218 1,208 1,059 17.1 -2.6

Source: ITC Data

https://www.trademap.org/tradestat/Country_SelProduct_TS.aspx?nvpm=1%7c%7c%7
c%7c%7c0603%7c%7c%7c4%7c1%7c1%7c2%7c2%7c1%7c2%7c1%7c1

21 KNOWLEDGE FOR LIFE

The next decade the production and trade growth of flowers would continue to grow but the
dynamics of exports and imports would rather change. The traditional countries such as
USA, Europe, Russia and Japan will still remain world’s largest markets in absolute terms
but may not expect to increase, whereas the countries with strong economic growths such
as China and India would have high consumption and growth potential of flowers. In certain
markets the consumers are moving to low end of the markets sold by supermarkets,
discount stores and Do-It-Yourself (DIY) stores. In major flower producing countries, cut-
flowers are mainly purchased from local florists except in UK where supermarket is the main
source of supply. Indoor potted plants are mainly purchased from garden centers and florist.
Global trade in flowers and plants that are easy to grow and transport would continue to
expand which would benefit the low cost production regions. Pakistan has great potential of
benefiting the rising flower demand in China because of its proximity with this big market and
its growing relationship through CPEC project.

Developed countries in Europe, America, and Asia account for more than 90% of the total
demand. International trade in floriculture, to a large extent is organized along the regional
lines. Asia-Pacific countries are the main suppliers to Japan and Hong Kong. African, Middle
Eastern, and other European countries are the principal suppliers to Europe's main markets,
Colombia and Ecuador dominate the market in the USA. Global exports over the last few
years have grown exponentially. For developing countries alone, global exports reached
almost US$ 4 billion in 2012, a 24% growth against 2010. For Least Developed Countries
alone, the vast majority located in Sub-Saharan Africa, the total value of cut flower exports
more than doubled from US$ 208 million in 2011 to US$ 568 million in 2012 (ITC –
Floriculture at a glance). However, Pakistan has not benefited from the ballooning
international trade in flowers as it remains an insignificant player in the world market.

The Netherlands (49%), Colombia (16%), Ecuador (10%) and Kenya (6%) are among the
top flower exporters constituting nearly 81% of the global share in export value (Table 2). It
is worth noting that Netherland is the major exporter as well as one of the major importers of
flowers in the world. This is because, as explained earlier, of its modern flower wholesale
market which attracts flower from all over the world for export to other countries.
Netherlands has long been at the center of cut flower production in the European floral
market. The cut flower industry has flourished and grown in Netherlands since the 1970’s.
As early as 1995, Dutch growers produced over 8 billion blooms of flowers annually, which in
turn yielded a revenue equivalent to about US$ 3.2 billion (ITC- Floriculture at a glance).

Though the Netherlands continues to be the largest exporter of cut flowers in the world
market with 592 thousand tonnes valued at US$4.2 billion of exports, the country is currently
facing intense competition from other countries that are producing cut flowers more
inexpensively and on a larger scale than ever before, hence in the last 5 years the exports
have declined by 2.6%. Columbia holds 16% global share with most of flowers are marketed
to USA, this is followed by Ecuador with 10% share is exporting to USA, EU and Russia.
Kenya, a recent entrant as a major exporter holds 6% share with major exports to EU and to
some extend to USA and Russia. The main driver of Kenyan production and exports are due
to high quality blossoms because of ideal climate all the year around, without having to
invest large amount in green houses. The growth rate has been 3.6% during the last 5 years.

22 KNOWLEDGE FOR LIFE

Other upcoming countries making their mark in the global scenario are Ethiopia, China and
Israel (ITC_ Floriculture at a glance).

Using modern logistics system, people all over the world can order flower in the morning,
and applying the modern cooling systems, the customers receive flowers and plants fresh
the same day or early morning next day from across the globe (Figure 2). Producing and
trading of flower and plants has now become a huge internationally connected industry with
billions of sales and engaging millions of people worldwide. However, to be connected with
this international industry, it is necessary to knock down the trade barriers and open the
trade borders.

Figure 2: Trade flows of flower bulbs, cut flowers, cut foliage and other living plants
(excluding intra-EU)
Source: Rijswick (2016)

Cut flowers transported through sea shipment are becoming more prominent and the future trend
in the floriculture sector. Columbia transports about 15% of its flower exports through sea
shipment (700 containers) to EU and UK (Rabo Bank 2015). Expansion of container shipment in
cut flowers is mainly driven by price difference between air and sea freight.
The overall global imports are around US$ 8.1 billion in 2017 but have increased at a rate of 4.1%
during the 15 years’ and at 0.8% during the last five years. USA, Germany, Netherland and UK
constitute nearly 57% of the global import in value terms. Pakistan imports are in the range of
US$0.890 million. USA is the largest importer with US$1.45 billion and continuously growing at
the rate of 4.5% during the last 5 years. About 70% of the cut flowers presently sold in the USA
are imported and over 90% of these come from Colombia, Ecuador and the Netherlands. Roses
are the main imported flower with 41% of the share (Table 2). China currently exports flowers and
have little imports from its neighboring countries like Vietnam, but with increasing labor cost it will
be impossible for the country to produce large quantities of flower to meet its booming domestic
demand. This is expected to create a niche for Pakistani flowers, especially during the winter
when flower supply from China is very limited while it is peak season for Pakistani flowers.

23 KNOWLEDGE FOR LIFE

Table 3: Import Trends in Major Flower Importing Countries during 2002-17

Imports Value (US$ 000) Growth Rates

Importers 15 10
2002 2007 2012 2017 5 Years
Years Years
World 4439.4 7122.2 7824.6 8140.9 4.1 1.3 0.8
USA 684.2 1043.6 1167.5 1453.8 5.2 3.4 4.5
Germany 830.1 1102.2 1164.7 1188.0 2.4 0.8 0.4
Netherlands 440.2 672.4 738.2 994.8 5.6 4.0 6.1
UK 833.1 1139.6 954.1 964.1 1.0 -1.7 0.2
France 408.2 521.5 438.7 388.5 -0.3 -2.9 -2.4
Russia 50.7 485.8 746.8 350.8 13.8 -3.2 -14.0
Japan 150.7 258.8 441.5 348.7 5.8 3.0 -4.6
Belarus 1.6 9.1 11.8 181.4 37.3 34.8 72.8
Italy 153.9 238.2 208.7 180.7 1.1 -2.7 -2.8
Switzerland 141.4 177.8 186.9 172.9 1.3 -0.3 -1.5
Source: ITC Data

In view of the potential of the sector in generating income and employment, fast growing
international market and despite favorable diversified eco-regional environment Pakistan’s
inability to benefit from this very profitable market, the Planning Commission of Pakistan has
initiated this study to analyze the whole value chain of the flower sector, identify gaps and
potentials, and recommend interventions, policies, and strategies to make the flower a
competitive and self-driving sector. To incorporate the variation across flowers, this analysis
is conducted for major flower growing clusters in Pakistan.

24 KNOWLEDGE FOR LIFE

2. GOALS AND OBJECTIVES
The overall goal of this study is to contribute to the Cluster Development Based Agriculture
Transformation Plan -V2025. Specific objectives of the study are:

1. To identify the major cluster of flower production in Pakistan

2. To characterize and conduct SWOT analysis of flower cluster
3. To identify technological, institutional, infrastructure and policy gaps in the cluster
4. Assess the potential of flower production in the cluster
5. Suggest technological, institutional, infrastructure and policy interventions to achieve
the cluster potentials
6. Conduct economic and social feasibility of the suggested interventions. The purpose
of the whole exercise is to develop a research-based cluster development plan for
flower to achieve the following targets.

25 KNOWLEDGE FOR LIFE

 3. METHODOLOGY
The project was initiated with a workshop organized by meetings organized by project
sponsors CABI/Planning Commission in Islamabad. The main purpose was to have a proper
understanding of the study to be conducted and expectations from the project sponsors. The
meeting led to the development of the questionnaires and survey methodology.

The data and information related to the characteristics, gap, potential and required
interventions to meet the gaps in flower clusters were collected from three sources:
a) Macro-Data. Macro data were collected and analyzed from various sources, main
source were ITC data, UAF-HEC project data 2018, Pakistan Statistical Year Book
2016, Agriculture Statistic of Pakistan AMIS
Besides, all the relevant material, concept papers, proposals, baseline survey
reports, project/strategy documents were reviewed to reveal the information
regarding pre and post project interventions scenario of the flower sector (Detail list
in annexure 2).
b) Stakeholders Consultations. The primary data were collected with field visits, holding
interviews and focus group discussions with the stakeholders in the flower supply
chain in Pattoki Punjab. The stakeholders included (detail list in annexure 1):
 Growers
 Professional Farm Contractors
 Provincial Government Agriculture Departments, Research Institutes
 Universities
 Public Sector Trade Development Agencies
 Government and Donor Development Programs
 Input Suppliers
 Wholesalers/Contractors
 Processors
 Regulator – DPP
 Packaging Material Manufacturers
 Transporters
 Exporters
c) Literature Review.

Research papers, policy drafts, feasibilities, and newspaper articles were consulted and
used for preparing this report.

Following generic parameters and indicators are used in collecting the data:
 Global context of flower sector;
 Production potential and review of flower sector;
 Cost of production, harvesting, post-harvest processing of flowers from the growers
and grower associations;
 Marketing, trading, and processing from traders, wholesalers, retailers, and
processors;
 Issues and constraints relating to production, picking, drying, selling, marketing,
trading, and processing from all stakeholders;
26 KNOWLEDGE FOR LIFE
  Recommendations and benchmarks based on global parameters;

The author then used these data to first identify the flower cluster in the country and then
used his subjective judgment in prescribing the characteristics of each cluster, identifying the
cluster strengths, weaknesses, opportunities, and threats (SWOT), investigating the
functioning of existing value chain, and quantifying the cluster potentials. Based on the
above analysis, interventions for improvement in each cluster were suggested. The cost and
benefits of each intervention are also estimated to finally work out the Internal Rate of Return
of the whole package. A Flower Transformation Plan is also formulated which identifies
sustainable cluster upgrading strategies for the development of the flower sector that can
help create significant economic opportunities for producers, processors and all the
stakeholders participating at different points of the value chain.

27 KNOWLEDGE FOR LIFE

 4. LITERATURE REVIEW
Pattoki serve as the center for floriculture activity in Pakistan where the farmers have
developed some expertise. The wholesale markets established in Kasur district is the major
forum for buying and selling of fresh cut flowers and loose rose petals. About one million
pieces of cut flowers are daily sold from Pattoki to different markets in Pakistan, mainly to
large urban cities such as Karachi, Lahore, Peshawar and Islamabad.

Cut roses were the leading flower crop in the Pattoki area, but production systems and
practices were outdated and primitive, resulting in cut stems that were not acceptable in
international markets. The majority of growers (65%) had only basic education (grade 10 or
less) and 57% had small landholdings (<1 ha); therefore, they did not have modern
production techniques and resources for high-quality cut rose production. Moreover, lack of
production and postharvest facilities, ignorance of both public and private resources, and
poor production and postharvest practices were prevalent. Growers' training regarding
production and postharvest management would be required to lift the quality standards of
this industry up to the international level (Ahmad et al., 2010).

The cut flower industry in Pakistan is in its infancy stage, mainly due to lack of infrastructure
and facilities, skilled manpower, professional training, modern production and handling
techniques, and elite planting material (Kurd et al., 1999). Similar bottlenecks have been
reported in other provinces of the country, which are also impeding the development of cut
flower production in those areas. Other reasons limiting the growth of the cut flower industry
in Pakistan are the lack of progressive growers, cold chain facilities, and government interest
(Kurd et al., 2001).

Most of the flowers produced in Pakistan are sold locally and very few are exported as our
produce does not meet the international export standards’ large numbers of cut flowers are
wasted because of lack of infrastructure, post-harvest mishandlings and improper marketing.
The important cut flowers that have a known name in Pakistani trade are Roses, Gladiolus,
Iris, Carnation, Narcissus, Lilies, Gerbera, Freesia (Gul-e-Farzana) and Statice (Gul-e-
Sataish). Statistical data reveals that almost 10 to 12 thousand tonness of floricultural
products are produced in Pakistan on an estimated area of 6,880 ha with no data available
on fresh flowers (PARC, 2014).

The majority of respondents (97.5%) were growing roses in open fields, whereas only 2.5%
were using greenhouses. Few growers in Pakistan have sufficient capital to afford the
construction of greenhouses and the high cost of energy required to operate them. Since
most growers have small landholdings, it is unlikely that they can save sufficient capital to
construct a greenhouse without support by governmental or other agencies. However, 14–
33% of the experienced growers who were in business more than 5 years were using
greenhouses, indicating that they were successful enough to afford the greenhouses. As
smaller businesses develop and become larger, they may also be able to build greenhouses.
The use of high tunnels may be a lower-case alternative to greenhouses.

Of those surveyed, 35% of growers blamed environmental conditions and soil salinity for
impeding plant growth, while 27.5%, 10%, 10%, and 7.5% reported that postharvest
28 KNOWLEDGE FOR LIFE
handling, nutrition, salinity, and soil/growing media, respectively, were the major problems in
rose cultivation. The results suggested that climatic and edaphic factors restrict commercial
rose growth and productivity in the study area. These problems may be overcome by using
best management practices as well as greenhouse production with proper media and well-
balanced nutritional programs containing all required macro- and micronutrients.

Regarding postharvest problems, 60% of respondents reported lack of cold storage facilities
as a major hurdle, while 22.5% and 17.5% indicated that shorter vase life and improper non-
refrigerated transportation, respectively, were the major problems. Thus, the lack of
infrastructure is a major problem (Ahmad et al., 2010).

Regarding harvest stage, 60% of respondents reported that they harvested flowers at
partially open bud stage, whereas 40% harvested flowers at tight bud stage. Harvest stage
depends on where the flowers will be marketed. Flowers are harvested at partially open bud
stage when marketed in nearby local markets and at tight bud stage when transported to
distant markets. As majority of the growers were harvesting flowers at partially open bud
stage, most flowers were sold in the nearby local markets. All the growers who were illiterate
or had less than a 10th grade education harvested their flowers when they were partially
open, while the more educated growers harvested them when they were tighter indicating
that they were more knowledgeable about proper harvest standards.

Regarding postharvest handling, 92.5% of respondents placed their flowers in water, while
7.5% used ice for this purpose. No one reported using any floral preservatives. For
packaging materials, 60% of growers used wooden crates, while the rest 40% used spent
cardboard boxes without ventilation holes and layers of dry grass in-between (data not
presented). Sixty percent of growers use ice for storage of cut roses, while 40% marketed
flowers without storage (data not presented). Except for the part-time postgraduate growers,
the more educated growers used ice, indicating that they had a comparatively better
understanding of the perishability of their produce and had better packaging and storage
conditions (used ice) for their product than other growers. The roses were being transported
by rail (40%), both rail and non-refrigerated trucks (30%), non-refrigerated trucks (27.5%),
and carts and bicycles (2.5%). All the transport facilities were non-refrigerated, whereas
refrigeration is a prerequisite to preserve quality of flowers during transportation (Mercurio,
2007). These results revealed a deficiency in the proper infrastructural facilities required to
preserve the quality of this highly perishable commodity. During October to November and
February to March, good-quality flowers were produced by growers, but due to unavailability
of proper postharvest facilities, more than one-third of the product was wasted, reducing net
return and profitability (Ahmad, 2009).

Producers indicated that they were only selling locally because of non-cooperation of
government organizations (45%), ignorance of international standards (30%), and poor-
quality production. In Pakistan, most of the flowers are produced in winter season when
Europe sinks in the snow and most of the traditional functions are held during that period.
Our country is rich in resources and has got favorable climate conditions that are very helpful
for raising cut flower. Pakistan can earn its foreign exchange in billions of U.S. dollars
through export fresh flowers and flower buds (PARC, 2014).

29 KNOWLEDGE FOR LIFE

The “cool chain system” covering the whole country could save about the 40% production
that is wasted due to absence of proper cold storage facilities and improper handling. It is
necessary that TDAP and PHDEC should evolve a plan of action to boost production and
exports. Although a cut flower farm is a profitable and attractive venture. The grower is still
not rewarded properly in financial term for this work. The middleman or shopkeeper takes a
major share of the profit. Especially, shopkeeper enjoys the maximum margin. There is an
opportunity for a flower shopkeeper or exporter to set up a business backed by this own cut
flower farm. An investor in the floriculture sector can get maximum profit by making the
product value added for supplies to hotels as flower baskets, bouquet, and bunch or for
direct exports.

Exports of cut flowers and house plants are the need of the day of Pakistani farmers
(growers). Being in the stage of infancy the target quality and quantity cannot be achieved
unless modern ways and means are adopted along with the provision of basic infrastructure.
This will include expertise (staff and skilled labor for crop management, grading and
packing), technical advice on production, post-harvest techniques, legal and financial
marketing aspects, adequate cool room capacity, reliable supplies of quality planting stock,
contact supplies of packing material, post-harvest dis-infestations facilities (for pest control),
refrigerated transport to markets, reliable freight forwarded reliable specialist exporters. This
will be additional to capital (large amount is required to run the business), market search (to
exploit sale opportunity) and the scientific data (to explore the suitability of varieties to
certain situation and regions). These modern ways and means of production and marketing
will ensure quality production and proper utilization of produce up to the end consumer
(AgriHunt, 2014). Other major constraint was inadequate capital that hindered the production
of floriculture while the use of farm size, labor, manure, educational level, experience and
age of the farmers were having significant influence on the revenues of the farmers.
(Manzoor, et al., 2001)

30 KNOWLEDGE FOR LIFE

 5. IDENTIFICATION AND
CHARACTERIZATION OF
CLUSTERS
5.1. Identification of Clusters
Although no authentic published data on individual flower is available, recently Ahmad et. al.,
2018 has conducted a survey, according to which rose and gladiolus are the main flowers
cultivated throughout the country (Table 4).

Table 4: Main Flowers (Cut and Loose) Cultivation with Respective regions in Pakistan

CROP AREA (HA) MAJOR PRODUCTION LOCATIONS

Rose 1,214 - Punjab (Pattoki, Chunian, Kasur,

Faisalabad)
- KP (Peshawar valley, Mardan,
Swabi)

Rose Petals (Loose Flowers) 2,631 - Punjab (Chunian, Multan, Mailsi,

Pattoki, Choa Saedan Shah,
Jampur, DG Khan, Sargodha,
Faisalabad, Lahore, Gujranwala)
- Sindh (Hyderabad, Mitari,
Tandoajam, Gharoo, Dhaaby G,
Saakro etc.)
- KP (Mardan, Peshawar Valley)

Gladiolus 2,226 - Punjab (Pattoki, Chunian, Kasur,

Okara, Faisalabad Multan, RYK,
Kalarkahar, Soan Valley, Taxila)
- Sindh (Hyderabad, Larkana)
- KP (Swat, Peshawar, Mansehra,
Mardan, Swabi, CharSadah)
- Balochistan (Quetta)
- Kashmir (Rawlakot, Kotli)
- Gilgit Baltistan

Tuberose 316 - Punjab (Pattoki, Gujranwala)

Marigold 202 - Punjab (Pattoki, Chunian,

Sheikhupura, Rawalpindi.
Faisalabad)
- Sindh (Hyderabad, Miatri Karachi)
- KP (Peshawar Valley)
- Balochistan ( Quetta)

31 KNOWLEDGE FOR LIFE

 Jasmine 121 - Punjab (Lahore, Pattoki, Multan,
Faisalabad, Rawalpindi);
- Sindh (Karachi, Hyderabad);
- KP (Peshawar)

Statice 107 - Punjab (Pattoki)

Chrysanthemum Annual (81) - Punjab (Pattoki, Kasur, Chunian,

Perennial (20) Sheikhupura)
- Sindh (Hyderabad, Karachi)
- KP (Quetta, Qalat)

Cosmos, Calendula etc. ≈ 20 - Punjab (Lahore, Pattoki),

- Sindh (Karachi)

Lilium 6 - Punjab (Kasur, Multan, Lahore,

Rawalpindi, Islamabad)

Tulip 6 - Punjab (Sheikhupura, Multan,

Vehari, Lahore, Rawalpindi)

Chrysanthemum 6 - Punjab (Pattoki, Faisalabad)

- KP (Swat)

Gerbera 2 - Punjab (Pattoki, Lahore, Khanewal)

Gypsophilla 2 - Punjab (Pattoki)

Narcissus 2 - KP ( Haripur, Peshawar, Swat)

Lisianthus 0.4 - Balochistan (Quetta)

Amaryllis 0.8 - Punjab (Kasur)

Carnation, Annual Specialty cuts, ≈4 - Punjab (Lahore, Faisalabad)

Misc. Cuts - Baluchistan (Quetta)

(Ahmad et al., 2018)

Based on the level of production and marketing importance especially its export potential
around which the farmers, agribusiness, exporters, support institutions and infrastructure, we
identify two main flower product clusters in Pakistan for detailed study:

1. Rose Cut Flower Cluster. Mainly grown in Pattoki, Chonian, Faisalabad, Kasur in
Punjab and Peshawar valley, Mardan, and Swabi in KP. Based on its concentration
and potential for export, Punjab rose cut flower cluster is selected here for detail
study with Pattoki as its focal point (Table 5). Similarty, rose as loose petal is grown
in Punjab and Sindh but the main production area is Pattoki Punjab as the focal
point.

2. Gladious Cluster. Grown throughout the country, but its highest concentration is in
Pattoki, therefore considred as Gladious Cluster focal point (Table 5).

32 KNOWLEDGE FOR LIFE

 Rose and gladiolus flower production occupies prime position among flower production
in Pakistan, accounting for about 80 percent of total production of all flowers in the
country.

Figure 3: Focal point for Cut Rose and Gladiolus Flowers in Pakistan

Pattoki is taken as focal point for both rose and gladiolus clusters because of the following
consideration:
 Located in Kasur district in central Punjab province
 Major production area of cut flowers, ornamentals and cut foliage in Pakistan
 Large number of floriculture farmers
 Over 300 nurseries
 Three wholesale markets (mandis)
o Pattoki Mandi for cut flowers and cut foliage
o Tara Gargh Mandi for loose rose petals and garlands
o Thing Mor Mandi for cut flowers
 Punjab Agriculture Department Extension office
 Nursery Association (non-active)
 Railway Station
The rose and gladiolus clusters in Pattoki, District Kasur, Punjab (Figure 3) have generated
a leading floriculture business in Pakistan. It covers 17% of the national area under flower
production.
33 KNOWLEDGE FOR LIFE
 5.2. Characterization of clusters
Cluster characters are prescribed in detailed in Table 5, and briefly described here.

Table 5: Flower Cluster Characteristics

Salient Features Rose Cut flower Cluster Gladiolus Cluster
Product Rose flowers and rose cut flowers Gladiolus flowers
(loose petals)
Districts Kasur (Pattoki, Chunian, Kot Kasur (Pattoki, Chunian, Kot Radha
Radha Kishan) Kishan)
Area of the cluster: (ha) 1200 1200
Production of the cluster: 10,000-12,000 10,000-12,000
(tonnes)
Average yield of the Cut roses: 1.47 million to 1.98 Gladiolus: 135,850 flowers
cluster: (stems or tonne million flowers
per ha) Surkha roses: 13.59 tonnes
Percentage of the crop 31% 54%
area that lies in the
cluster (flower area of
the cluster/flower area in
the country)
Percentage of the total 40% 20%
cropped area in the
cluster (flowers area in
the cluster/total cropped
area in the cluster)
Geographical and Soil varies from clay loam to loam Soil varies from clay loam to loam
Environmental Factor and sandy loam in texture, have and sandy loam in texture, have
high soil pH greater than 8 with low high soil pH greater than 8 with low
organic matter contents organic matter contents
Latitude 31.02 N, Longitude 73.84 Latitude 31.02 N, Longitude 73.84 E
E and 186 m altitude and 186 m altitude
Topography has level lands with Topography has level lands with
gentle slope for irrigation gentle slope for irrigation
Subtropical climate with very hot Subtropical climate with very hot and
and dry summers and mild cool dry summers and mild cool winters
winters
Ground water is brackish and not fit Ground water is brackish and not fit
for irrigation for irrigation
Canal water best for irrigation and Canal water best for irrigation and
available except during canal available except during canal closure
closure periods periods
Average annual rainfall is 424 mm Average annual rainfall is 424 mm
Average temperature in summer is Average temperature in summer is
33.7 C and 12.2 C during winters. 33.7 C and 12.2 C during winters. In
In summers, June is the hottest summers, June is the hottest month
month when temperature rises up when temperature rises up to 41 ○C
to 41 ○C and in winters it drops to 5 and in winters it drops to 5 ○C.
○
C.

34 KNOWLEDGE FOR LIFE

 Due to smog in autumn and fog is Due to smog in autumn and fog is
winter, area is facing abrupt winter, area is facing abrupt
temperature fluctuations which is temperature fluctuations which is
affecting production and quality of affecting production and quality of
flowers flowers
Flower Growers About 90% of flower growers have About 90% of flower growers have
small landholding of average farm small landholding of average farm
size of less than 4 ha. Majority of size of less than 4 ha. Majority of
growers rent/lease the land and growers rent/lease the land and
make investment make investment
Majority of growers (>70%) are Majority of growers (>70%) are
illiterate or have basic schooling. illiterate or have basic schooling.
Majority (80%) of growers have Majority (80%) of growers have good
good experience being involved in experience being involved in flower
flower production for many years. production for many years.
Labor is easily available in the area Labor is easily available in the area
for planting and harvesting of for planting and harvesting of flowers
flowers
Majority of growers market their Majority of growers market their
flowers to local wholesale markets flowers to local wholesale markets in
in the cluster the cluster
No representative flower growers No representative flower growers
association exists in the cluster so association exists in the cluster so
far, which is direly needed in the far, which is direly needed in the
area for highlighting issues and area for highlighting issues and
seeking possible solutions seeking possible solutions
Product Feature Roses fragrant, red or pink in color Gladioli white, red or pink in color.
and best for value addition.
Roses may be used as petals or as Gladiolus and tuberose has 36-48
cut flowers. Cut flowers have 1.5- inch stem length.
3.0-inch bud diameter and 9-24
inches stem length.
Rose cut flowers are bunched in 50 Gladiolus are bunched in 24 or 100
flowers.
Variety Feature Roses are thorny plants. Bush Gladiolus grows erect with 7-8
roses for value addition grow leaves arising from base of plant,
vigorously, have dense canopy, and spikes erect which grow from
compound leaves, may or may not middle of the plant
form hips, erect branches and
flowering in flushes. Cut varieties
may have more or less prickles,
compound leaves, and stay small
because of harvesting along with
stems.
Nursery and Planting Roses are either propagated Gladiolus is propagated through
through cuttings or budding. Rosa corms (bulbs) which are either
bourboniana (Lahori gulab) is used imported from Netherlands or
as rootstock multiplied locally. 50,000 to 60,000
bulbs are planted per acre (1,25,000-
1,50,000 per ha)
Roses are propagated locally in

35 KNOWLEDGE FOR LIFE

 Pattoki or acquired from Institute of
Horticultural Sciences, University of
Agriculture, Faisalabad
Rose cuttings are prepared in Gladiolus is planted in October-
November-December, while November
budding is done in July-August
Bush roses for value addition or Plant to plant distance is 6x9 inches
petals are planted at 3 × 3 feet and row to row is 12x18 inches
distance between plants and rows.
Progressive growers are planting at
1-2 ft spacing between single row
plants in 4-6 ft wide rows. While
hybrid roses for cut flowers are
planted at 1 × 1 ft spacing in beds
For bush roses, 4,000-5,000 plants
are planted per acre (10,000-
12,500 per ha), while cut rose
plants are planted at 10,000 plants
per acre (25,000 per ha)
Inputs/Management For roses, NPK (20-20-20) 1 bag For gladiolus, 4 bags Nitrophos and
Practices per acre at 15 days interval for cut 2 bags K2SO4 at planting, 500 g Mg
roses, while 1 bag per acre every plus 1 kg Sulphur plus 25 kg CaSO4
month for bush roses at 3rd leaf stage, while 5 kg Zn plus
2% Boron and Ferrous Sulphate at 6
leaf stage
Farm yard manure is applied for No FYM for gladiolus
roses in December (2-3 trollies per
acre).
Except a few big growers, other Except a few big growers, other
growers are using below average growers are using below average
and imbalance inputs, which affect and imbalance inputs, which affect
yield and flower quality yield and flower quality
Green manuring done during Green manuring done during
summer prior to sowing summer prior to sowing
Pesticides regularly sprayed on Pesticides regularly sprayed to
roses to control thrips and mites. control fungal diseases on gladiolus.
Corms treated with fungicides before
planting
No government control on the No control on the supply or price of
supply or prices of inputs like seeds inputs like seeds and pesticides.
and pesticides. Majority of inputs Majority of inputs are available from
are available from local dealers and local dealers and retailers. Growers
retailers. Growers get inputs from get inputs from dealers and
dealers and commission agents on commission agents on credit, which
credit, which make it difficult to use make it difficult to use standard input
standard input products products
Flood irrigation is the only method Flood irrigation is the only method of
of irrigation to all flower crops in the irrigation to all flower crops in the
cluster. So far, no drip irrigation is cluster. So far, no drip irrigation is
being used in the region for flower being used in the region for flower
farming. Irrigation is applied as per farming. Irrigation is applied as per

36 KNOWLEDGE FOR LIFE

 requirement and availability of requirement and availability of canal
canal water. During summer water water. During summer water is
is applied at weekly interval, while applied at weekly interval, while
during winter at 20-30 days interval during winter at 20-30 days interval
Critical time for irrigating roses is Critical times for irrigating gladiolus
after pruning and at flowering. is after sowing and flower
development
Some growers intercrop gladiolus
with vegetable crops like cabbage,
chilies or coriander, but not a regular
practice
Weedicides are hardly used after
sowing bulbs. Growers control
weeds by weeding manually.
Pruning/Harvesting Pruning is done to remove old Gladiolus and tuberose are not
diseased branches, avoid flower pruned, while marigold and
damage due to bruising and chrysanthemum are pinched at early
invigorate new growth for better growth stage to enhance branching
quality flowers. Roses are pruned
heavily in winters (either December
or mid-February), while also light
pruning is done in May-June, when
temperature is high and good
quality production is not feasible
Harvesting is done manually and is Harvesting is done manually and is
done on marketing forces. If price done on marketing forces. If price is
is low in the market, flowers are low in the market, flowers are held
held on plants for some time, which on plants for some time, which
lowers flower quality. lowers flower quality.
Flowers are harvested during day Flowers are harvested during day
time using flower cutters time using flower cutters
(Secateurs), placed on bare soil (Secateurs), placed on bare soil
under direct sun which leads to under direct sun which leads to early
early senescence and blockage of senescence and blockage of the
the vascular system with germs. vascular system with germs.
After shifting under shed, they are
either kept on dirty grasses or held
in dirty water tubs (roses) which
also block the stems and add to
free moisture which increases
botrytis attack
Packaging/Transportatio Flowers are packed in wooden Flowers are packed in wooden
n crates or spent boxes which have crates or spent boxes which have no
no ventilation holes for ventilation holes for transportation.
transportation. Moreover, dead Moreover, dead grasses and weeds
grasses and weeds are used for are used for cushioning effect while
cushioning effect while transportation, which deteriorate
transportation, which deteriorate flower quality.
flower quality.
Roses are bunched in 50. Flowers Gladiolus are packed in 24 or 100
are packed in extra quantities per stems. Flowers are packed in extra

37 KNOWLEDGE FOR LIFE

 pack in order to lower quantities per pack in order to lower
transportation cost but cause transportation cost but cause
damage to flowers. damage to flowers.
Rose petals are packed in cotton
bags and transported by staking in
non-cooled vehicles.
Flowers are transported on bikes, Flowers are transported on bikes,
carts, and uncooled vehicles, which carts, and uncooled vehicles, which
cause damage to the 1/3rd of the cause damage to the 1/3rd of the
produce during handling and produce during handling and
transportation. Railway is used for transportation. Railway is used for
transportation to Karachi & transportation to Karachi &
Hyderabad. Hyderabad.
Wholesaler/Retailer The local mandis are developed by The local mandis are developed by
the private sector which are small, the private sector which are small,
congested and in deplorable congested and in deplorable
conditions. All wholesalers (artis) conditions. All wholesalers (artis) are
are growers too. growers too.
Commission agents and Commission agents and contractors
contractors buy flowers from buy flowers from growers in
growers in wholesale local market. wholesale local market. Price paid to
Price paid to the growers depend the growers depend on variety, stem
on variety, stem length, bud size or length, bud size or number of flowers
number of flowers per stem, and per stem, and number of open
number of open flowers flowers
Auction in local wholesale market Auction in local wholesale market
depends on flower quality and depends on flower quality and
variety variety
Final grading and packing is done Final grading and packing is done be
be commission agents in the commission agents in the wholesale
wholesale market market
Commission agents control the Commission agents control the
marketing process and different marketing process and different
growers are linked with specific growers are linked with specific
commission agents in the market commission agents in the market
Damaged flowers or poor quality Damaged flowers or poor quality
flowers are included in center of flowers are included in center of
bunches and this malpractice is bunches and this malpractice is quite
quite common common
Prices are high during wedding Prices are high during wedding
seasons, when supply is short and seasons, when supply is short and at
at special occasions like valentine’s special occasions like valentine’s
day, Eids, New Year, Rabi-ul-awal, day, Eids, New Year, Rabi-ul-awal,
etc. etc.
Domestic markets, viz. Lahore, Domestic markets, viz. Lahore,
Rawalpindi, Karachi, Faisalabad, Rawalpindi, Karachi, Faisalabad,
Multan and Sargodha Multan and Sargodha
New Technologies/ There is no infrastructure such as There is no infrastructure such as
Infrastructure cold stores at local mandis. They cold stores at local mandis. They are
are using ice on flowers for distant using ice on flowers for distant
markets such as Hyderabad, markets such as Hyderabad, Karachi

38 KNOWLEDGE FOR LIFE

 Karachi and Rawalpindi and Rawalpindi
No proper postharvest No proper postharvest
handling/packaging unit available in handling/packaging unit available in
the cluster the cluster
No rose water or rose oil extraction
unit available in the cluster
No floral box manufacturer unit No floral box manufacturer unit
available in the cluster available in the cluster
Export Rose petals are exported to Gulf
countries & Germany after
dehydration
Very limited number of cut flowers Very limited number of cut flowers
are being exported to Gulf are being exported to Gulf countries
countries and prices in international and prices in international markets
markets are quite low than other are quite low than other countries
countries produce due to low produce due to low quality
quality
Supply Chain There is no well-defined supply There is no well-defined supply chain
chain of flowers in the country. of flowers in the country. Inadequate
Inadequate packaging and packaging and transportation
transportation procedures pose procedures pose constraints and
constraints and bottlenecks bottlenecks throughout the supply
throughout the supply chain chain
Certification No farm in the cluster is GlobalGAP No farm in the cluster is GlobalGAP
certified. As majority of farmers are certified. As majority of farmers are
poor and have small landholdings, poor and have small landholdings,
they cannot afford this expensive they cannot afford this expensive
certification. Moreover, being their certification. Moreover, being their
produce is only marketed locally, produce is only marketed locally,
they are not interested in this they are not interested in this
unsustainable certification. unsustainable certification.
Socioeconomic On farms, whole families work for On farms, whole families work for
Networking/ Gender various cultural practices like various cultural practices like
Involvement weeding and harvesting. Women weeding and harvesting. Women
and children also participate in and children also participate in
handling flowers. handling flowers.
Subsidies/Incentives/Fac No subsidies or incentives are No subsidies or incentives are given
ilities given so far to flower growers and so far to flower growers and
stakeholders stakeholders

5.3. SWOT Analysis

The SWOT analysis was carried out in major rose and gladiolus flower-producing areas with
the consultation and participation of different stakeholders. The clusters have several
strengths and opportunities, including trained labor and established market with respect to
agro-ecological conditions (Table 6). The results are structured around the value chain
functions such as inputs supplies, production practices, cluster interactions, marketing/trade
& exports and processing & Infrastructure. Major weaknesses are poor planning, and policy
and priority neglect and inadequate investment in research, technology
development/breeding, extension, marketing, etc. Threats include diseases and insect
39 KNOWLEDGE FOR LIFE
infestation and poor quality, which are made worse by poor production infrastructure, energy
shortages for cold storage and processing, and non-transparent trading practices in local
market systems. These factors generally hold back investment into the value chain, inhibiting
its development.

Table 6: SWOT Analysis for Rose and Gladiolus Cluster in Pakistan

Parameters Strengths Weaknesses Opportunities Threats

Environment/ Favorable climatic Too hot summer which Different agro- Sudden climate
Climate Change conditions in 1st and makes good quality ecological climatic changes like
4th quarter of the flower production zones in Punjab abrupt
year for flower rather impossible where flowers can be temperature
production when during 2nd and 3rd produced during change, rainfall
demand is high quarter of the year extended period of patterns and
the year smog adversely
affect flower
quality and yield
Fertile sandy loam Increase in
to loamy soils pollution
(pesticide/chemic
al use)
Some flowers, like Some crops have
gladiolus may be quite short-duration
grown over which minimize
extended periods environmental
hazards impact on
those crops
Input Supplies Granular fertilizers Outdated planting Corms/bulbs of Non-availability
and pesticides are material and gladiolus are of improved
available in the production techniques imported for many planting material
market are used for majority of commercial cultivars of new cultivars
flower crops of roses and
other flowers
Canal water is Poor production Shortage of
available in most infrastructure with canal water when
areas of the cluster almost no greenhouse canals are closed
except canal for good quality and
closure periods year round flower
production
Underground water is Heavy use of
not fit for flower pesticides and
production their residues
Organic matter is Promotion of dairy
declining in the soils farming and poultry
farming may help
increase organic
matter in soils
Disease incidence and Cultural control Incidence of
soil sickness in soils methods may help fusarium and
increasing due to disinfect the soils botrytis in
continuous from fungi gladiolus crop
40 KNOWLEDGE FOR LIFE
 Parameters Strengths Weaknesses Opportunities Threats
monoculture
Non-availability of
water soluble macro
and micronutrients
Non-availability of
floriculture crops
specific pesticides
which have less
residual effects
Cluster Flower production a No corporate and Policies to promote
Interaction major business of collaborative farming is corporate farming
large population of being done in the and learn from high
the cluster cluster earning farmers in
the cluster
Unavailability of proper Identification of new Unstable socio-
extension network clusters for political situation
floriculture in the country
production & value
addition
Poor interaction of Development of
growers and cooperatives and
stakeholders with enhancing interaction
researchers and between all
academia stakeholders
Lack of regional Human resource
cooperation development (job
opportunities &
women
empowerment
Out-dated production Organization of trade
techniques as told by shows in the area for
forefathers are being promotion of
used by majority of interaction
growers
Malpractices and lack
of trust
Production Some family Lack of improved Establishment of Depletion of
Management businesses are varieties seeds, modern tissue environment and
Practices quite experienced certified varieties and culture labs. For water resources
in flower production tissue culture facilities mass production of
flower crops nursery
Unavailability of Provision of certified Problems
modern soilless seeds of new flower associated with
substrates for quality crops training of
flower production illiterate growers
and stakeholders
regarding
modern
production
techniques
41 KNOWLEDGE FOR LIFE
 Parameters Strengths Weaknesses Opportunities Threats
Unavailability of proper Training of growers High pesticide
plant protection and stake holders use and residues
facilities and over use regarding optimal along with poor
of agronomic crops production protocols, quality produce
pesticides which good agricultural increase
increase rejection of practices and rejection rate in
flowers in export sanitary and phyto- export markets
markets due to high sanitary measures
residual effects
No recommended
production protocols
best suited to cluster
agro-climatic
conditions available to
growers to ensure best
quality production

Growers have no idea

about proper
harvesting and
handling procedures
Transportation Reliable road and No reefer trucks CPEC may improve Higher import
rail infrastructure is available for transportation custom
available transportation of infrastructure for duties/taxes on
flowers distant markets and inputs
export
Improper packing by Development of Social issues like
noxious weeds and proper floral boxes police teasing
spent boxes with no with ventilation holes and road taxes
ventilation holes.
Limited freight space Provision of sufficient
and high costs of cargo space with
transportation to affordable costs
distant cities and non-
availability of air
space, no
infrastructure for
export marketing
Improper staking and Proper bunching,
parking of vehicles in sleeving,
direct sun damages preservatives
flower quality treatment, and
packaging and
holding/transport at
low temperatures
Marketing Higher returns than Growers and Development of Poor marketing
traditionally grown stakeholders have no market act and system
agronomic crops for idea about marketing reforms
major flower crops international marketing
grown in the cluster standards and their
42 KNOWLEDGE FOR LIFE
 Parameters Strengths Weaknesses Opportunities Threats
requirements
Un-competitiveness in High market prices of
global markets various flower crops
in export markets
No proper grading of
flowers in markets
Majority of growers are
not directly connected
with markets and
middleman getting
more share
Lack of marketing
infrastructure, like
platforms, storage,
auction clocks, etc.
Trade/Export Established market Lack of trained human Training of growers Import of artificial
link with all major resource and stakeholders flowers from
cities of the country China
Geo-proximity to Poor quality flower Provision of flower Poor interest of
middle east, Japan, production which is not crops during 3rd and growers and
Thailand, Malaysia, suitable for export, and 4th quarter of year to stakeholders in
and European result in very less global markets when capacity building
global markets exports demand is high
No incentives and
guarantees/protections
from Government for
flower growers
No credit facilities are Provision of working
available for flower capital with low
growers and interest for
stakeholders developing facilities
No information about Establishment of
payments of royalties farmers’ group to
and WTO laws promote trade and
export
Lack of public-private Lowering import Unavailability of
partnership in flower duties on floriculture cool chain
business related materials and facilities
infrastructure
Processing/Valu Value added Non-availability of Increased demand of
e Addition products like rose trained manpower and flower based value
water, jam, oil, etc. resources for small added products both
are popular and growers for processing domestically and
have great demand internationally
in the country
Flower perishability No information about High cost of high
may be reduced proper postharvest tech processing
through value handling techniques machines and
addition equipment

43 KNOWLEDGE FOR LIFE

 5.4. Value Chain Analysis
5.4.1. Input Providers:

A substantial presence of input providers exits in the flower producing areas. City has
several dealers of fertilizers. In addition to authorized dealers of fertilizers and pesticides
who sell as per the policies of their principals, there are many who buy in retail (small)
quantities. These dealers also sell on credit to small growers who usually are short on
finances. Due to proliferation of plant protection chemical brands/labels, growers find it
difficult to differentiate between quality products and substandard ones. Availability of
standard products is reported as an issue by growers. Similarly, there are many stories of
cheating growers by selling counterfeit products by fertilizer as well as pesticide dealers.
There are serious implications of substandard and counterfeit fertilizers and plant protection
chemicals for flower growers as well. Many experts believe that incidence of disease has
increased due to ineffectiveness of these chemicals. They also claim that some of the
pathogens have mutated due to in appropriate application of broad spectrum pesticides and
therefore several insect pests have developed resistance against plant protection chemicals
available in the market.

5.4.2. Structure of Flower Production

Flower farms are the production houses where they are produced. Majority of growers lease
the land from owners, make necessary infrastructure, and manage all the farming activities
at the farm. About 90% of flower growers have small landholding of average of less than 4
ha. Majority of growers (>70%) are illiterate or have only primary schooling. 80% of growers
have good experience being involved in flower production for many years. Through the
interviews the consultant was informed that 70% of the growers manage to grow and market
their cut flowers both rose and gladiolus through the wholesale markets themselves but a
small number of growers may also sell the ready crop at flowering to contractors, who are
responsible for the harvesting, post-harvest operations, logistics and marketing. It was also
highlighted that most of the contractor’s/commission agents are growers themselves. There
is no price, quality, and time-bound contracts between farmers and market agents.

Whereas the loose rose petals are sold to the contractors which they sell it at the whole sale
market. On the other hand many farmers de-hydrate the rose petals and sell it to the value
addition industry to form various products such as essential oil, rose water, etc.

5.4.3. Structure of Marketing Channels

Thing Mor mandi in Kasur is specified for cut flowers, while Pattoki market is for cut flowers,

44 KNOWLEDGE FOR LIFE

ornamental plants and cut foliage and Tara Gargh mandi is for loose rose petals and
garlands. All these mandis are owned and operated by the private sector and they are small,
congested and in a deplorable condition. Pattoki mandi is the leading flower market in the
country, from where flowers are shipped to whole of the country. The flowers, especially
roses and gladiolus, are grown for sale as cut flowers.

Figure 4: Cut Flower Supply Chain in Pakistan

Farmers, commission agents, and wholesalers are the main players of the market. Farmers
sell the produce to wholesalers in primary wholesale markets. Commission agents and
contractors buy flowers from growers in wholesale local market. Price paid to the growers
depend on variety, stem length, bud size or number of flowers per stem, and number of open
flowers. Prices are high during wedding seasons when supply is short and at special
occasions like Valentine’s day, Eids, New Year, etc.

Final grading of flowers is done by the commission agents at the wholesale market. The
flowers are packed into wooden or paper carton, with each flower pack containing 50 pieces
of cut flowers (Figure 4). Each package has one thousand pieces of cut flowers (20 packs @
fifty pieces). Damaged flowers or poor quality flowers are included in center of bunches and
this malpractice is quite common. These packages are transported to the destination by
railway and road. Most of the flowers are transported by road where carts, chingchi and vans
are used for short distance markets, whereas buses and railways are used for longer
distance markets. Most of the flowers sent to Hyderabad and Karachi are sent through
45 KNOWLEDGE FOR LIFE
railways. But due to lack of infrastructure (lack of space during season, no shed or storage
facility) at the railway station the quality of flowers is compromised.

Figure 5: Packing & Transportation of Flowers

The market’s flowers are used on all occasions – they are worn as jewelry at weddings, used
to decorate rooms for newlyweds, in spas and even during funeral rites in all religions. They
are also used in processed products such as extraction of essential oil from rose petals
units’ cluster has a potential in the Pattoki Zone. Further value addition is done by larger
industry for: Perfumery, Cosmetics, Essences, Fragrances, Medicines, etc.

Figure 6: De-hydration of loose rose petals

Loose petals are also dehydrated for use in food products, potpuri, etc. The growers either
sell it to the contractors which further goes through the traditional supply chain, i.e., primary
market and to the secondary markets and ultimately to the consumer. As for cool chain
system the fresh rose petals is concerned they are packed with ice while being transported.
The other chain is that the growers normally dehydrates it in the open and then sell it to the
value addition industry for further processing.

5.4.4. Secondary or Terminal Market

These markets are generally located in big urban locations. Lahore, Karachi, Islamabad,
Faisalabad and Multan are prominent terminal markets in the country. Flowers produced in
Pattoki reaches through the traditional distribution channel to the consumers.

46 KNOWLEDGE FOR LIFE

6. CHALLENGES FACED BY THE
CLUSTERS
Almost whole rose and gladiolus produce in the country are marketed locally. Although good
quality flowers are being produced, but due to certain challenges in production these are not
exported to global markets. These challenges include outdated cultivars, poor production
techniques which result in low standard quality than required in global markets, heavy use of
pesticides having high residual effects on flowers at harvest, improper postharvest handling
and non-existence of cool chain, and packaging facilities.

Both the rose and gladiolus clusters in Pattoki are not developed on scientific lines. There
are many shortfalls in production and handling, which need to be overcome if Pakistan
needs to enter in global floriculture trade. There is a need for diversification of the production
units with new species and cultivars which have high market demand and also new uses in
the global markets. There is also a need for improved cultivars, for which purpose Pakistan
need to follow breeder rights and IPRs, which are not effective so far in the country and is a
major hindrance in getting new cultivars for production and marketing. Almost all flower
production is in open fields and in soil, which limits quality production due to environmental
extremes and soil borne pathogens. No flower crops specific fertilizers or pesticides are
available in the country and most of agronomic crop pesticides are also applied on flower
crops. This has high residual effects and such products cannot be exported to global
markets. Due to lack of trained manpower and absence of cool chain facilities, even after
production of good quality flowers, more than 1/3 rd of the produce wasted which lowers the
profitability.

6.1. Production Level Constraints

The average national yield of cut roses is 2.5 million stems per ha, 13.60 tonnes of petals of
surkha roses and 135,850 stems of gladiolus, which is comparatively low. In case of
gladiolus it is due to different production method, while the yield of cut roses is reasonably
high, but are not of the quality demanded in global markets. The planting material suitable
for different eco-system is not available. Nursery preparation is generally poor for rose
flowers. Moreover, yield varies from farm to farm due to different production practices and
input use, indicating yield gap which could be improved. Various studies and consultations
with stakeholders have highlighted several constraints for low yield, which are: unreliable
supply of certified and improved planting material of new varieties, inefficient farm
management practices, inadequate pest and disease management strategies, improper
pruning, dysfunctional research and poor extension system, lack of mechanization due to
small scale farms, no technical know-how about modern production techniques and
international market standards required for export, literacy and access to information (Table
7).

47 KNOWLEDGE FOR LIFE

Table 7: Gaps and Constraints at Production Level

Parameters Rose Cluster Gladiolus Cluster

1 Research resources Scanty None

2. Special purpose (i.e., for Non-existence Non-existence both

shape, color, aroma, Private sector non-active in Private sector non-active in
resistance/tolerance, etc.) floriculture R&D floriculture R&D
breeding program

3. Mother nurseries or GPUs None None

4. Planting material Planting material available Corms/bulbs are imported.

but uncertified, not suitable Reuse of corms every year
for various ecosystem. reduce flower quality

5. Nursery preparation Unscientific No nursery as they are

propagated through corms
which are either imported or
multiplied.

6. Plant density Moderate Low

7. Management practices Primitive Primitive

8. Pit material and treatment Inappropriate material and no Inappropriate material and
soil treatment no soil treatment

9. Irrigation system Flooding Flooding

10. Pruning Limited Not Required

11. Weeds Medium problem Medium problem

12. Floriculture specific No specific inputs for No specific inputs for

Commercial inputs, like floriculture is made available. floriculture is made available.
pesticide, micronutrient.

13 Insects and Diseases Thrips and Mites along with Botrytis, Fusarium Rot and
Scales Dry Rot cause

14 Quality Poor Moderate

15. Labor input Hired and family labor Hired and family labor

16. Harvesting/post-harvest Inappropriate and cause high Inappropriate and cause high
techniques losses losses

17. Extension services Not available Not available

18. Price, quality, and time None None

bound contracts between
farmers and marketers.

Another factor for low yield of gladiolus is due to low density plantation per acre which is due
to soil type and the irrigation system to be used in Pakistan (flooding). Moreover, no flower
crop specific pesticides are available in cluster, so mostly agronomic crop based pesticides
are being used, which have higher residual effect making produce un-exportable. So, insect

48 KNOWLEDGE FOR LIFE

pests and diseases causes significant yield loss. Some of the major diseases which are
commonly present in the gladiolus farms and have threatened the flower farming particularly
gladiolus in Pakistan include Botrytis, Fusarium Rot and Dry Rot. On roses, Thrips and Mites
along with Scales pose serious threat to good quality production. If steps are not taken on
emergency basis the threat of pest and disease would become so prevalent that it would be
difficult to reverse back leading to threatening the future of floriculture industry in the country.
No cooperative or contract farming thus there is no community cooperation to control pests
or supply quality flowers.

6.2. Market Level Constraints

Consumers at high end markets tend to pay higher price for quality cut flower. It was
witnessed at the wholesale market that a consignment of good quality cut flowers was being
transported in reefer van for a Karachi buyer. But due to poor infrastructure in the value
chain including tunnel farming and lack of technical and management capacity and financial
resources of the growers, most of cut flowers marketed are not of quality standards. There is
no price, quality, and time-bound contracts between farmers and market agents.

6.3. Domestic Market Inefficiency

Lack of grades and standards. A major governance related weakness of flower value
chains in Pakistan is a lack of well-defined grades and standards. Such grades and
standards are essential for the competitiveness in markets with heterogeneous product
needs. The current lack of well-defined grades and standards makes price comparisons for
flowers of different qualities/grades difficult for both consumers and value chain actors.
Consequently, the value chain actors incur losses because of low quality flowers in their
supplies and consumers fail to get value for their money.

Poor post-harvest practices. Post-harvest management practices are poor in both the
flower clusters (Figure 7). Various studies and discussion with stakeholders highlighted that
there are high post-harvest losses ranging from 30-40% (Ahmad et al., 2010, Asif, 2016).
The major causes of such high losses are due to poor technical and management practices,
inappropriate non-refrigerated mode of transportation, poor packaging and lack of cold
storages facilities. Most of flowers in domestic markets are packed in spent boxes without
ventilation holes which pile up gases particularly ethylene in the boxes, which kills the
flowers.
Poor transportation means. The transportation from farm to wholesale market is done in
a traditional way by using carts, bikes, non-refrigerated open trucks, pick-ups, etc., which
leads to around 5% losses. Hardly anybody is using refrigerated transportation.
Lack of post-harvest preservatives. Moreover, postharvest diseases and desiccation
cause loss of value and shorter vase life. No proper postharvest preservatives are available
in the country and handling without treatment leads to early senescence (Table 7).

49 KNOWLEDGE FOR LIFE

Figure 72: Poor Postharvest handling practices in the flower cluster area

6.4. Export Market Inefficiency

Lack of market information. For exports to high end markets, the importers’ quality
standards are stringent and changing overtime. There is no mechanism to collect the quality
requirements and associated prices of flowers in different importing markets and
disseminate these to value chain stakeholders in the country (Table 8). Moreover, floriculture
is a very dynamic sector globally with emerging new production and post-harvest
management technologies. No mechanism exists in the country to collect and disseminate
the information about these emerging technologies in floriculture production and marketing
to the producers and value chain managers.

Flowers must be flawless, conforming to the grading standards and long vase life. Bunches
or bouquets be arranged according to pre-set parameters in agreement with customer (stem
length, flower size, petal count, number of flowers or stems, bud opening stage, etc.). Color
mix and product mix are very important in connection to specific destination. The flowers
should be free from pest/disease. Lack of understanding of these requirements in
international markets can lead to rejection of product at the border.

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Table 8: Gaps and Constraints in Domestic and International Marketing

Parameters Rose Cluster Gladiolus Cluster

1. Information about No mechanism exists, No mechanism exist,

production and national and Disconnect between farmers Disconnect between farmers
internat’l marketing and buyers and buyers

2. Grades and standards Not specified Not specified

3. Availability of quality Not available to the producers Quality corms are imported
planting material for high although some organizations but they are expensive.
end markets have developed a high-quality Moreover, quality becomes
rose propagating material poor during multiplication.

4. Packaging Inappropriate, and without Inappropriate and without

proper aeration proper aeration

5. Cool Chain/ Transportation No cool chain infrastructure. No cool chain infrastructure.

Inappropriate and non- Inappropriate and non-
refrigerated transport cause refrigerated transport cause
5% post-harvest losses 3% post-harvest losses

6. Post-harvest preservative Not available, not used Not available, not used

7. Air space availability Either expensive or not Not exported

entertained by airlines

Inappropriate product presentation and packaging . Presentation and packaging can

bring significant logistical challenges, particularly when handling different flower types or
arrangements. To meet the demand of consumers in different countries and to protect the
original solid colors, mixes, specific stem counts, sometimes weight are the main objectives
of packaging and product presentation. boxes, sleeves, decorations and others are very
important in the retail/mass market scenario. Bar codes, certification and other information
on boxes such as traceability are important components for exports to higher end markets.

According to our findings, first of all, planting material and production quality is not even
close to the mark required for export. Quality of Pakistani flowers is one of the important
impediments in the export of these flowers. It clearly indicates that if competitiveness of the
rose cut flowers in the international markets is to be improved, proportion of A-grade flowers
with longer sturdy stems and bigger flower diameter would have to be produced. Secondly,
good and vigorous gladiolus flowers, it has to be protected from hot climate perhaps by
growing it under protected cultivation, and continuous multiplication of its bulbs should be
avoided; Thirdly, understanding the quality requirements of consumers including those for
packaging and making product presentation consistent to their demand is very important to
compete in international flower market.

6.5. Inadequate Value Chain Infrastructure

For few internationally traded goods, time-to-market is as important as for the cut flowers.
Flowers are very sensitive to the treatment that they receive after harvest. Strict control of

51 KNOWLEDGE FOR LIFE

humidity, temperature and air quality is essential for delivering an attractive product to the
market. Thus in the floriculture industry, inadequate cold chain infrastructure in Pakistan
reduces product vase life and lose their freshness.

Eco-labels and certification are increasingly important. GLOBALGAP, Rainforest Alliance,

FairTrade, Veriflora and MPS are now recognized by consumers, and some importers and
traders (both wholesale and retail) now request them. Some mass marketers have their own
certificate or recognize specific ones. Environmental sustainability and Corporate Social
Responsibility (CSR) are considered equally important. International suppliers to the US
have standardized individual efforts in this respect, e.g. Flor Verde (Colombia), Flor Ecuador.

6.6. Lack of Processing

Currently, flowers are being harvested during noon, which is generally prohibited for export.
In roses, it leads to loss of volatile compounds from rose petals. Mostly, rose petals are
marketed and very limited quantity is used for rose water extraction or other value added
products. The main constraints in processing are the lack of appropriate roses with high
essence content, awareness of the potential investors about the potential of rose extraction,
and the knowledge about the availability of technology for the rose extraction (Table 9).

Table 9: Gaps and Constraints in Value Chain and Processing

Parameters Rose Cluster Gladiolus Cluster

1 Appropriate material for Available only with some No processing

processing research institute.

2 Cold chain Not developed Not developed

3 Value addition/processing Low level technologies available No processing

technologies but not adopted.

4 Auction/wholesale markets Poor infrastructure Poor infrastructure

5 Certification for traceability None None

6 Branding None None

7 Air Freight Lack of air space with airlines Lack of air space

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7. CLUSTER POTENTIAL
In this section an attempt has been made to evaluate the potential in the cluster in terms of
production, quality and market side of flower value chain. This will be helpful to establish
benchmarks for incremental improvements in the cluster performance. In addition, both
quantitative and qualitative analyses are presented to explain the nature of active, dormant
and inactive segments of the flower value chain cluster.

7.1. Production Potential

Looking at the gaps and after discussion with the stakeholders, we believe that rose cluster
yield can be enhanced by 50% approximately from 14 tonnes/ha to 20 tonnes/ha through
better farm management practices, increasing plant population, using modern production
techniques, and by soil solarization. This is also possible by propagating high-yielding rose
such as Rosa Centifolia material and standardized technologies which are available with the
research institutes and agricultural universities in the country. Yield of gladiolus cluster can
also be enhanced up to 50% by improving management practices especially minimizing
disease incidence.

In addition to improvement in per hectare yield, there is a potential to increase area under
floriculture, although in this study we are not exploring this potential. For example, with the
available heat tolerant rose varieties developed by UAF and AARI, rose petals can now
easily be grown in areas with high summer temperatures. With more stable yield and being
more profitable, growers are converting from other agriculture produce to rose production in
Pattoki cluster. If facilities and training are provided to the growers, yield and quality can be
substantially improved for both cut flowers and rose petals production.

7.2. Demand Potential

Due to change in life style of the people as well as growing real estate, event management,
hotel and restaurant businesses in the country, demand for various floriculture products has
increased several folds during past decade. Demand has also risen due to globalization;
masses have become familiar with role of flowers in daily life to fulfill aesthetic needs. There
has been an increased demand of quality flowers in the major urban areas such as Karachi,
Lahore Islamabad/Rawalpindi, Faisalabad, Multan and Hyderabad. This is also due to a
change in lifestyles and trends of using flowers at special occasions such as weddings,
funerals, Valentine Day, Christmas, Mother’s Day. Also in fresh form they are used in
garlands, bouquets, wreaths and in dried form they are the source of natural essence that is
used as Attar and flavoring for various food items. In order to fulfill the local demand
Pakistan has been importing various varietal flowers which are in short production and not
produced in Pakistan, mainly cut flowers and bulbs from Holland, Malaysia, Sri Lanka,
Kenya, Saudi Arabia & Thailand which can be substituted with enhanced production in the
country.

53 KNOWLEDGE FOR LIFE

Moreover, climatic and human resource advantages also depict potential to enter into global
markets and fetch foreign exchange for the country. With introduction of improved varieties
and modern production techniques and provision of required infrastructure, quality flowers
can successfully be grown for export.

In world market, scarcity of flowers is found during winter because of more festivals
(Christmas, New Year, Valentine Day, International events), in winter during this time,
freezing conditions of major production center i.e. European countries. Therefore, in Europe
there is a decline in flower production and the cost of production is substantially higher
during the winters, resulted the export demand increases. To overcome the higher
production cost, European countries are looking towards new production centers like Asia
(India, China) and African countries (Ethiopia, Kenya) for cheaper flowers. Being blessed
with diverse agro-climatic conditions, Pakistan can lead in production of cut flowers required
in global market.

An increase of 50 % yield of Roses and Gladiolus from the current base in the Pattoki cluster
over the period of ten years can result in an additional production 40,755 tonnes (valued at
US$ 6.10 million) of Roses and 203.78 million stems of gladiolus (valued at US$ 23.61
million).

7.3. Production to Export Ratio

There is considerable potential for exports of Pakistani flowers to high end markets in Gulf
and Far East countries and Europe especially Germany, Dubai, Saudi Arabia, Qatar, Oman,
China, Thailand and Japan, etc. Pakistani flowers can fetch good prices in international
markets, as long as they meet quality standards, quarantine requirements with regular
delivery and reliable logistics. Export potential to China is enormous due to very big market,
FTA status, its proximity to Pakistan and coming of CPEC project.

Potential for export of cut flowers from Pakistan exists due to favorable agro-climatic zones
and proximity to Gulf and East-Asian markets. Moreover, Pakistan has enormous scope to
enter in global cut flower exports by growing varieties demand in global markets and by
producing suit stems as per international standards. Some of these rose varieties are
already available with research institutes, like AARI and University of Agriculture,
Faisalabad.
With the opportunities stated above and after discussion with stakeholders, we assume that
the production-export ratio of rose can be improved from 0.4% to 0.8% (100%) and 0 to
0.5% for gladiolus. This is expected to generate additional annual revenue of US$0.448
million in both the cluster in five years.

7.4. Improvement in Quality

One of the areas of concern in floriculture sector of Pakistan is the gap between the
domestic prices compared to the global prices. The export price of Pakistani flowers (mainly
de-hydrated rose loose petals) was US$2,404/tonne whereas the average price of top ten
exporting countries of roses was US$5,909/tonne. Reason of this difference is the low
quality of the produce (cut flower and dehydrated rose petals) using traditional pre and post-
54 KNOWLEDGE FOR LIFE
harvest production activities and using manual sun drying of rose petals result in loss of
volatile compounds. Interventions and strategies which can improve the quality such as by
adopting best practices and modern mechanical dehydration technologies and practices of
petals can at least increase quality and exports of the domestic produce to international
export standards. This will increase economic returns in the whole value chain. Along with
dried petals, we need to focus on export of cut flowers because cut flowers account for 50%
of total floriculture trade in international markets. Although currently no significant exports of
cut flowers are being made from Pakistan, but there is enormous scope to fetch our share
from global floriculture trade as there are several markets in our geographic proximity and
we just need to deliver quality products as per their demands.
Improving the value chain and establishment for both rose and gladiolus clusters -
(mentioned in the strategy section) and with proper marketing strategy it will bring this quality
at least par to the world average quality thus fetching at least average world price of top ten
exporters. Using this higher export price for the existing and additional export will bring
US$5.037 million in the fifth year.

7.5. Reduction in Post-Harvest Losses

Post-harvest losses, one of the major concerns of agriculture in Pakistan, account for nearly
35% of wastage of flowers in the country. With improved post-harvest technologies such as
better harvesting techniques and packaging, cool chain system and appropriate dehydration
system, these losses can be reduced to 15%. This will generate estimated revenues of
US$14.842 million in the cluster for both rose and gladiolus flowers at the existing farm gate
price. The number of cold storages and processing units to be established in each cluster
has been calculated in the Cost & Benefit section. As per requirements, these units are
expected to create 300 jobs.

7.6. Establishment of Allied-industries

Allied-industries associated with floriculture like greenhouse construction and installation,
shade net manufacturing, grading and packaging machines, etc. will come up owing to high
demand with the expanding area under protected cultivation. This will also create substantial
income and employment opportunities in the peri-urban areas.

55 KNOWLEDGE FOR LIFE

8. PLAN, STRATEGIES, POLICIES AND
NETWORKING
8.1. The Plan
After discussing with stakeholders along the value chain and looking at the potentials of
each cluster, it is planned to formulate a five-year development project to achieve the
following specific targets in each cluster (Table 10).

Table 10: Targets of Flower Cluster Plan

A 20% increase in per ha yield of the remaining rose gardens and gladiolus gardens through
1.
improved management practices

2. Reduce post-harvest losses from 35% to 25%

Increase export to production ratio of rose by 100% (0.40% to 0.80% for rose and from zero
3.
to 0.5% of gladiolus in the next five years
Improve the quality of both flowers so that 5% of its local produce can fetch the average
4.
world export price.

8.2. Macro Policies

The floriculture sector has great potential not only to generate income, employment and
foreign exchange earning but also beatify the environment. But the sector has 11een
neglected in the past and needs lots of government attention to revive. Number of policy
issues required to be addressed by the Government in floriculture sector and agribusiness.
They are:

 To make floriculture a priority sector for addressing the issues, floriculture may be
declared as an industry and investment in the sector may be given special incentives.
Incentives would be required in the beginning to promote floriculture export.
 The Government should encourage and facilitate through incentives such as grants,
credit with low interest rate and tax incentives the establishment of flower value chain
infrastructure such as tissue culture labs, certified nurseries, flower auction floors,
value addition and cool chain infrastructure by private sector.
 The Ministry of Commerce need to continue the incentives as provided in the
Strategic Trade Policy Framework 2015-2018. Special incentive to be provided to
floriculture sector as it is a still in its infancy stage.
 Reduction in import duty on planting material and equipment especially the quality
hybrid flower seeds.
 Air freight should be reduced to reasonable level. Sufficient cargo space may be
provided in airlines.

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  Government needs to put lots of efforts to pu in place the floriculture applied research
both in the public and private sector. While public sector can focus on collecting and
supplying germplasm, the private sector can develop varieties of different flowers
suitable under various ecosystem. Similar, incentives should be provided to develop
floriculture related tools and equipment within the country in the private sector.
 Floriculture seed industry especially for home gardening needs to be promoted. The
tissue culture nurseries to supply certified true to type propagating materials should
be encouraged in the private sector.
 Technical skill training is required to create professional human resources in
managing flower production both on open field and greenhouse, landscaping,
nursery raising, flower packaging, storage, and transportation. Special training would
be requited in harvest and post-harvest handling of flowers. The Floriculture
Directorates in the provinces should play a leading role in this.
 Many of the floriculture activities like IPM, certification, branding, etc. require
community action. Similar, effectiveness of quality assurance and possibility of
initiating quality-price contract farming through groups should be emphasized through
FEGs. The public sector should play a catalyst role in the social mobilization of
farmers and other stakeholders along the value chain.
 Most importantly, is the role of the government and flower organizations in promoting
the public awareness about the potential benefits of using flowers on the mood of the
people and on the beatification of the environment.

8.3. Strategies
The promotion of floriculture sector in Pakistan requires adopting an aggressive strategy in
line with the best practices in the world for the purpose of tapping the fullest potential of the
sector in local and export markets. Execution of this strategy requires making improvements
in the existing production and marketing setup of flower for the purpose of increasing the
country’s flower production and its quality to meet international standards.

8.3.1. Social Mobilization and Networking

One of the strategic interventions in floriculture cluster development is to organize Farmers

Enterprise Groups (FEGs) involving 20-25 growers who are willing to make investment
together on value chain infrastructure. The floriculture related infrastructure will be owned
and operated by the group. The needed investment for the infrastructure, after whatever has
been provided by the government, will be gathered from the farmers and profit from the
services supplied will be shared among the farmers proportionate to the level of their
contribution in the investment.

New varieties of rose and gladiolus will be tested and introduced and incentive will be
channeled through FEGs. Experiments and field trials shall be organized with focus on
quality flower production in their fields. Field days shall be organized by FEGs with help of
agriculture departments in a crop season to share experience and results of the application
of modern techniques. The rest of the farming community shall also be invited to share
57 KNOWLEDGE FOR LIFE
learning, experience and overall benefits of modern techniques. Also these FEGs would be
able to create economies of scale and can collectively deal with input suppliers, technology
suppliers, financial support, contractors, exporters and processors to get better deals.

Some NGOs, particularly, Rural Support Programs (RSPs) have initiated rural development
activities with community participation. RSPs organize small community groups, mobilize
group resources to build financial capital and provide training to develop skills of its
members. RSPs provide micro finance services to members of community organizations
without collateral. RSPs can organize a relatively small group of several growers interested
in enterprise development. Due to their experience and extensive network the project needs
to collaborate with RSPs social mobilization of these FEGs and support them in their
collective efforts.

8.3.2. Strengthening of Floriculture R&D

The existing Floriculture and Landscaping Research Institute (FLSI) under the Directorate of
Floriculture in Lahore should be shifted to the DG(AR) in AARI, Faisalabad and its
development component should be shifted to DG(AE&AR) in Lahore. The capacity of FLSI
requires a major overhaul and upgrading. Some of key areas identified through survey and
discussion with the stakeholder and experts where the research and development efforts
need to be initiated on priority basis are:

 Establishment of protocols for tissue culture labs. Tissue culture labs can
produce true to type healthy bulbs of gladiolus and other flowers with exciting colors
and shape. The distribution of such bulb along with recommended practices can uplift
the floriculture sector in the country. The research should establish and supply the
protocols for the multiplication of these bulbs to the private sector.
 Development of high-yielding rose varieties. Currently, Surkha rose is grown on
large area in the country for petal production and export. However, it has less yield
and poor quality oil contents in the petals. Therefore, there is a need to introduce
new high yielding rose varieties which have better oil contents and constituents.
 Dissemination of existing varieties. At University of Agriculture, Faisalabad, a new
variety of Rosa centifolia has been developed which profusely flowers throughout
year even at higher temperatures than 40C, which need to be popularized and
distributed among growers for getting higher flower yields of good quality throughout
the year.
 Soil treatment to disinfect against fusarium. At Pattoki, due to continuous
gladiolus production on same soils, soils have got seriously infected with fusarium,
which is resulting in heavy loss of crop. Therefore, this soil needs to be treated either
by solarization or through rotation for 3-5 years in order to disinfect the soils and
protect next crops. This needs comprehensive studies to be conducted for sustaining
soils for future flower production.
 Development of local homemade floral preservatives. Currently, growers have no
idea of using floral preservatives in Pakistan because no floral preservatives are
commercially available in Pakistan. Being a necessary component of postharvest
handling of cut flowers, research on homemade local preservatives is being
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 conducted at University of Agriculture, Faisalabad, which need to be disseminated to
growers and stakeholders for keeping their flowers fresh for longer periods.
 Development of grades and standards. There is therefore a need for FC in
coordination with the Agriculture economics and marketing wings of provincial
agriculture departments in collaboration with relevant institutions to develop
grades and standards for rose and gladiolus flowers. Strict enforcement of such
grades and standards would help consumers to obtain the values they desire and
increase the profitability of value chain actors.
 It is recommended that special platform at major wholesales markets needs to be
established for those products conform to established grades and standards. It is
necessary to establish cold stores at these special platforms so that the flower quality
is kept and also during glut period the seller can store it and sell it appropriate time.

But this should not be the only issues addressed by the FLSI in the long and medium term. It
should be assigned major responsibility for developing new flower varieties under different
stress situations, promoting floriculture healthy seedlings of improved flower varieties,
developing and introducing new scientific flower and seedling production and post-harvest
handling techniques, and exploring the international flower market. Specific issues not only
just in production but along the whole value chain will be undertaken by the institute at the
request and funding of FEGs and other flower related associations along the value chain.
The results of this research will be generally conveyed to flower farmers across Pakistan, but
more particularly to the cluster farmers and other stakeholders along the value chain.

8.3.3. Establishment of Floriculture Center

A Floriculture Centre (FC) as common facility centre will be established under

FEG/Association in each flower cluster with all the necessary supportive infrastructure for
the purpose of producing and supplying quality flower for export and high-end domestic
markets. The proposed facilities shall be established on an area of 4 ha which will be
provided by the government. Each FC will provide modern technologies such as protected
materials like plastics, green houses, drip irrigation, fertigation technology, etc. on subsidized
prices as per demand of the farmers. The Centre will be put up under public private
partnership through incentive mechanism such as grants/loans. Having a consolidated
flower area organized on modern practices will immediately attract the attention of the
national and international stakeholders. This model has been implemented in India under the
project name TANFLORA – Tamil Nadu Floriculture Infrastructure Park with the support of
Indian government (Brief in Annexure 3). The following infrastructure and services will be
developed in the FC:
1. Flower Pack House. This facility will be for the purpose of cleaning, grading and
packaging of flowers as per the customer requirements in national and international
markets. The number and capacity of these packing houses will be determined by
the production figures of floriculture.
2. Cold Storage. For preserving the flowers freshness, it is important to place it in
controlled temperature and humidity conditions. For this purpose, cold stores will be
built, and the number and capacity of these cold stores will be determined by
floriculture production in each cluster.
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 3. Proper Transportation Facility. Small reefer trucks for flower transportation will be
provided by the centre. These trucks may be owned by the FC or rented from the
market on need basis.
4. Extension and Advisory Services. The FC will host the floriculture staff from the
agriculture department. The facility would also develop demonstration plots growing
flowers under best practices to showcase and serve as a training facility for the
growers in pre and post-production activities in the production of quality and
exportable (GlobalGAP) products. Depending upon the nature of the assignments,
the FC may engage short-term experts may from time to time including foreign
experts and local universities faculty and researchers.
5. Farming Input Suppliers. The project will be a large consumer of farming inputs.
Therefore, there will be provision for input suppliers to build their stores in the FC.
Farmers will be able to get all the required inputs from the centre.
6. Loading Stations and Parking Areas. There will be areas and bays in the FC; to be
used for loading the product boxes on trucks and containers.
7. Offices. A separate offices area for the farmers to carry out their routine business
activities will be established. Similarly, there will be offices for local and international
traders, farming input suppliers, transporters, etc.

The FC would be working under the Steering Committees of the FEGs/Association including
members from the business community as well. The Project Managers and all other
members of core technical team, supporting team including accounting, administration, and
monitoring be deployed from the private sector with 20% financial support from the
government. The remaining cost will be borne by the member of the FEGs on volunteer
basis. The government will provide one-time endowment fund to provide 20% subsides on
building the infrastructure of FC. The donors may also contribute in the endowments fund.
The endowment fund will be managed by the Secretary Agriculture (SA) on the request of
the SC of the FC. The Agriculture Department will also support the facility by providing
extension services through Directorate of Agriculture Extension (Horticulture) and
Directorate of Agriculture (Floriculture) on ongoing basis.

The estimated cost of the FC is estimated to be Rs. 100 million. Besides, the support
services would be provided to individual farmers on charge basis. It is expected to generate
over 100 jobs.

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 8.3.4. Improved Management Practices

Some key areas to improve farm practices include timely and balanced fertilizer and
pesticide/insecticides use, and use of micronutrients. Soil management training should be
imparted which includes soil testing and accordingly use of inputs. Over spraying of
chemicals should be discouraged as it is hazardous to human health and effects exports due
to international MRL protocols. Though Pest Warning and Quality Control department,
federal and provincial seed corporation and plant protection departments are making good
efforts in monitoring the adulterated fertilizers and pesticides in the market but still many
unbranded adulterated inputs suppliers are active in the market, so the above mentioned
authorities need to be empowered to levying strict penalties.

There is an urgent need in Pakistan for the application of better technologies to boost the
floriculture industry’s performance such as greenhouse technology for export quality flower
production, cold storages, provision of improved packaging materials and preservative
solutions. Imported technologies are expensive and, in any case, local users may find them
difficult to operate, so there is a need to develop low cost, easy to operate local machinery
and equipment. The other option is to joint ventures with international companies for
imparting with latest technology and know-how and also will established international
marketing linkages.

Machinery is required for mechanized harvesting, grading and packaging of cut flowers as
well as dehydrators for controlled atmosphere drying of petals for preserving quality.
Currently, majority of cut flowers are harvested in cluster areas during noon, which reduces
the vase life and hastens flower senescence. Growers need to be trained about proper time
and method of harvesting and handling flowers so that their freshness can be preserved.
Moreover, flower cutters need to be sharp and disinfected frequently to remove all bacteria
and other germs to avoid spread of infection among flowers. Flower should not be placed on
dirty soil and need to be immediately shifted into cool shed for removing field heat and
processing. After shifting and grading, these need to be treated with preservative solutions
61 KNOWLEDGE FOR LIFE
for enhancing their vase life. Afterwards, flowers need to be properly packed in floral boxes
and stacked in cold storages. To preserve quality reefer transportation should be promoted.
The FC should undertake a pilot project by introducing reefer transportation to
educate growers of the benefits incurs by selling quality flowers at higher prices. For
all these interventions, proper training mechanism needs to be devised as Farmer Field
Schools in various areas in the cluster. Specialized horticulture extension services are
required to improve orchard level practices. These must be equipped with adequate
knowledge of modern orchard practices, such as pruning, spraying, picking, harvesting and
handling of flowers. To this end, both short and long term training courses on modern
orchard and postharvest management need to be provided for PFC extension and
Agriculture Department Extension staff. Moreover, training of trainers would be done and
create Farmers Enterprise Groups (FEGs) for collective action as far training, certification
and other activities required. Currently, no idea of farm certification exists in the cluster area
for flower farms, which need to be initiated and GAP/SPS need to be implemented for
entering into export business. This would be the focus in the production of floriculture at
Pattoki Floriculture Center.

8.3.5. Capacity Building of Farmers

To make changes in above specified farm management practices, a program of capacity

building of various stakeholders would be required in farm production and postharvest
handling techniques covering following areas:

Pre-Harvest

 Soil Management
 Pruning
 Irrigation Management
 Disease and Pest Management
 Balance & Timely use of Fertilizer including Micronutrients and Plant Growth
Regulators
 Mechanization

Post- Harvest

 Improved Harvesting and Handling Methods

 Field Heat Removal and use of Preservatives
 Improved Grading and Packaging,
 Better Mode of Transportation

University of Agriculture Faisalabad has signed a MoU with PUM Netherlands since 2017 for
training of the growers and stakeholders for holding training workshops which are imparting
training to the flower growers and stakeholders on specific topics of interest. Moreover, FLSI
of government of Punjab is also providing guidance to the growers in the cluster through one
of their instructor on weekly basis. These interventions are proving helpful in social
mobilization of the growers and interested persons in the floriculture business.

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 8.3.6. Establishment of Certified Nursery
Clean and healthy nursery plants of high varietal purity and disease free bulbs and corms
are a basic requirement for good quality rose and gladiolus flower production. This
necessitates the establishment of certified clean nurseries in rose production hub (option is
to establish such nursery within the Pattoki Floriculture Center) that can produce certified
plants so that good quality plants can be raised from good quality cuttings. Moreover,
disease free bulbs of new varieties with exciting colors and shapes need to be produced
through tissue culture labs or imported for providing to the growers for good quality gladiolus
flower production. For this purpose, tissue culture laboratories need to be established for
disease free bulbs and saplings production.

8.3.7. Modern Production and Market Infrastructure

No country will be able to enter the international market without putting modern infrastructure
which includes greenhouse technology and cool chain system. New entrants in the global
floriculture scene such as Kenya, Ethiopia, India and few others have extensively invested in
these technologies with the financial and technical support from the government, donors and
joint venture arrangements with international companies. We suggest here to provide
government support in establishing green houses and cold storages.

Green Houses. The controlled environment of green-houses gives the producer control
over what kind of flowers the growers wants to produce and under the required control
conditions. Some of the important aspects of using a greenhouse are higher and reliability of
yield with year-round and disease free production, efficient use of chemicals, pesticides and
water. As Pakistan is primarily an agri-based economy, there exists a huge potential of cut
flowers cultivation under greenhouse for exports, especially when local growers have
already accumulated many years of experience in cut flowers cultivation in the Pattoki
cluster. To provide a jump start towards this endeavor it is proposed that farmers in Pattoki
be supported to establish greenhouses.

Cold storage and reefers. To keep the cold chain intact from production to market there
is need for establishing small scale cold stores at farm-level at Pattoki production area,
medium size cold storage at wholesale markets local “mandis” in Pattoki and large scale
stores at Karachi and Lahore airports for exports. These stores can be utilized for other
products like fruits and vegetables as well. More important is to introduce reefer
transportation especially catering to distant markets such as Karachi, Islamabad and
Peshawar. The cold storages and reefer transportation would be established under grant
mechanism by the government.

8.3.8. Introduction of Processing

There are three main reasons for flower processing: utilization of excess produce and
elimination of waste; stabilizing farm income by adding profits; and finally affording an outlet
for creativity. Hence there is wide range of products which can be value added, processed
products include essential oils, petal jam (rose, rhododendron), jelly, ready to serve
beverages, wine, floral tea, rose hip juice, poultry feed, insect repellent, floral dyes, petal
embedded handmade paper, cosmetics like calendula cream, rose water, rose cream etc.
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Pharmaceutical and nutraceutical compounds: Due to globalization international competition
is increasing, people are becoming more conscious, therefore use of natural ingredients is
increasing in food and pharmaceutical industry. Thus, flowers pigments like carotenoid,
xanthophyll, anthocyanin etc. are being used in food industry and compounds like lutein,
vincristine, catharanthine, vitamin C extracted from rose hips are being used in
pharmaceutical industry.

Despite many value addition options available, we propose that Pakistan should initially
invest on Dehydration Facilities because of the availability of large rose petals during the
peak season of rose supply. The dry rose flower export from Pakistan has been a recent
phenomenon. Currently, it is not being done scientifically and petals are just dried under sun
which results in loss of quality and volatile contents resulting in low prices in international
markets. Therefore, there is need to establish small scale modern dehydration units in the
cluster area for efficient drying of the petals preserving their volatile components. The best
thing is to start a dehydration unit that require very cheaper infrastructure. Mainly two
methods are commercially viable i.e. Press Drying and Embedding & Drying. Naturally
available unutilized flora and cultivated colorful annuals can be dehydrated through press
drying. Standard cut flowers and other attractive flowers can be dehydrated in its original
color and shape through embedding and drying using either hot air oven or micro wave oven
or solar cooker.

There is a demand for dried flowers within the country as well. It is being used in value
addition by making Gulkand, rose sharbat and rose water. There is also a great scope of
drying the flowers and to convert them into everlasting value added products like dry flower
arrangements, baskets, bouquets, table arrangements etc. Among different dry flower
products out pot pourri is a major dry flower export item. Besides this there are press dried
flower products including greeting cards, bookmarks, swaths, paper weights, wall hangings,
table tops, table mats, etc. Most of these dry flower products have a shelf life of 6- 9 months
therefore, consumer can enjoy these flower products for comparatively longer time and
utilize maximum benefit of the money spent. Training on making such value added products
should be imparted in the Pattoki Floriculture Center. The dehydration plants for drying rose
petals would be established under matching grant mechanism by the government.

8.3.9. Database for Floriculture

Presently there is no database to understand the dynamics of the floriculture sector in
Pakistani and international markets. This is critical for planning towards strategic
intervention, hence the priority of the government is to have a detailed surveys looking all
aspects of the floriculture sector in the domestic and international markets.

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9. BENEFITS AND COST OF
CLUSTERING
This section discusses the costs associated with cluster development strategies presented in
previous section. This also identifies resources and requisite inputs for achieving all the
targets given in section 8. An economic and social impact analysis has also been conducted
that evaluates the benefits of the floriculture cluster development interventions in the target
region of Punjab.

9.1. Summary of Costs

Two types of costs are required to implement the upgradation plan: i) Investment fixed costs,
ii) operational costs for improved value chain. The total investment costs of the projects over
the whole project period is US$13.71 and US$11.323 million in Patoki rose and Pattoki
gladiolus cluster, respectively (Table 11). The distribution of these costs over the period can
be seen in the production cost sheet of each cluster in EXL model.

Table 11: Summary of Investment Costs for Rose and gladiolus clusters

Summary of Investment Cost Rose Values Gladiolus Values

Total Investment (Mill. US$) 13.719 11.323
Total ha of land under flower production (ha) 1,200 1,200
Estimated investment per hectare (US$) 11,432 9,435
* Currency conversion rates (I US$ : 135 PKR)

The per tonne flow of operational costs at various segments of the value chain in each
cluster are shown in Appendix 4, which are converted into the cluster level costs depending
upon the level of output that passes into the value chain segment to meet the plan objective.
It is worth noting that operational costs start during the 2 nd year because 1st year is used for
learning new practices and put infrastructure in place, and continue until the last year. The
segment level and total additional operational costs for the whole value chain are shown in
(Table 12).

Table 12: Additional operational costs (000 US$) due to upgradation plan at different
segments of the value chain by cluster
Gladiolus Cluster Rose Cluster
Item Yr.
Yr.2 Yr.3 Y.4 Yr.5 Yr.3 Yr.4 Yr.5
2
Cost of Production Inputs and Harvest 478 956 1435 1913 89 178 267 356
Cost of Transportation and Storage 33 66 100 133 9 17 26 34
Cost of grading and packaging 60 120 179 239 7 14 22 29
Cost of domestic marketing 14 29 43 58 29 58 87 116
Cost of international marketing 2 3 6 8 1 3 5 6
Total Costs (000 US$) 587 1175 1763 2351 135 270 406 541
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 9.2. Economic Returns (Rose Cluster)
In the Pattoki rose cluster, the gross revenues before flower cluster development are
estimated to US$24.21 million per year. Cluster development investments are expected to
generate revenues from the 2nd year of the program resulting an additional gross revenues
of US$2.96 million in the 2nd year and US$13.25 million in the 5th year. The total initial cluster
investment during the 1st year is at US$5.64 million in the cluster (Table 13)

All the value chain costs including those related to the production, processing, marketing and
selling are applicable from 1st through to 5th year, the total of which ranges from US$0.135
million to $0.541 million in the respective year (Table 13).

Table 13: Economic Returns and Investments in Punjab Cluster (Rose)

Offsetting the value chain costs from revenues, net economic benefit during the 1 st year will
be negative at US$5.64 million. This amount is exactly equal to the value chain investment in
the 1st year, as no revenues or benefits is expected during the 1 st year of cluster
development program. The net economic benefits in subsequent years are expected to
range from US$ 3.77 million in the 2nd year to US$ 0.481 million in the 5th year (Table 13).

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 9.3. Economic Returns (Gladiolus Cluster)
In the Pattoki gladiolus cluster, the gross revenues before flower cluster development are
estimated to US$18.89 million per year. Cluster development investments are expected to
generate revenues from 2 nd year of the upgradation plan. All the four cluster interventions
are expected to result in additional gross revenues of US$ 2.13 million in 2nd year and
US$9.41 million in the 5th year. The total initial cluster investment during the 1st year is US$
3.97 million in the Pattoki cluster.

All the value chain costs including those related to the production, processing, marketing and
selling are applicable from 1st through to 5th year, the total of which ranges from
US$0.587million to $2.35 million in the respective year.

Offsetting these value chain costs from revenues, net cash flow in the 1st year will be
negative US$ 3.97 million. This amount is exactly equal to the value chain costs in year 1, as
no revenues or benefits are expected in the 1 st year of cluster development program. The
net cash flow in subsequent years are expected to range from negative US$ 1.66 million in
2nd year to US$6.57 million in the 5th year (Table 14)

Table 14: Economic Returns and Investments in Punjab Cluster (Gladiolus)

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 9.4. Implementation Plan
An investment of US$ 25.04 million is needed to support the cluster development efforts in
both the rose and gladiolus Pattoki clusters in Punjab. Out of the total investment about 42%
will be shared by the public sector in terms of strengthening floriculture research, capacity
building of stkeholders, and providing incentives on value chain infrastructure development.
The main investment is on the establishment of cold storages, greenhouses, and
dehydration units. This investment would be incentivized through offering 20% subsidy on
the infrastructure and providing interest free loans for the first year of the infrastructure
establishment. We believe that these incentives and public sector investment will bring
remaining 59% of the investment in the private sector. Eighty percent of the total government
share in the investment should be provided by the federal government, by establishing a
Cluster Development Fund (CDF) under Planning Commission Pakistan. The remaining 20%
should come from the provincial budgets.

9.5. Conclusion
In conclusion, the overall economic, social and environmental impact of the cluster
development program shall be positive, sustainable and long lasting. Accounting for all the
fixed costs and variable costs including the production, handling and marketing cost, the
estimated Net Present Values (NPV) for Pattoki rose cluster and Pattoki gladiolus cluster are
respectively US$10.5 million and US$2.7 million, respectively. The Internal Rate of Return
(IRRs) are respectively 52% and 25%, respectively. An overall NPV from both the clusters is
US$13.3 million, and an overall IRR is 41%. In addition to these economic benefits, the
floriculture cluster development program will generate a foreign exchange of US$0.69 million
and hundreds of new jobs especially in per-urban areas. It is worth noting that the
infrastructure build for floriculture can also benefit the value chain improvement of perishable
commodities like fruits and vegetables. Moreover, the benefits quantified here do not include
the spillover effects of the cluster development programs in other flower growing areas.
Strengthening of floriculture research and capacity building of the stakeholders will be the
key in the success of the floriculture upgradation plan.

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10. ROGRAMS AND PLANS
Various programs that need to be initiated to implement the Cluster Upgradation Plan and key
agencies involved in the implementation are narrated in Table 15.

Table 15: Summary of Target related Interventions in Flower Clusters

Target Key Interventions Key Implementing Partners

Increase flower Supply of true-to-type plants to the farmers Pattoki Floriculture Center
yield through the establishment of tissue culture (PFC), Punjab Floriculture
and certified nurseries at subsidized rates. Dept., UAF, FSC&RD, NARC
To be supplied by PFC.

Capacity building on production PFC, Agriculture Extension

management especially proper pruning, Punjab, Academia, Certifying
proper dosage and timing of fertilizer and Agency
pesticide and use of IPM techniques &
water management. GAP through FFS
methodology.

Establish Promote High Density plantation/high PFC, Punjab Floriculture Dept.,

improved new yielding varieties and use of drip irrigation UAF, FSC&RD, NARC
orchard and hydroponics under greenhouse
plantation State Bank of Pakistan
Access of farmers to financing
A. Improve Value Chain Improvement which includes:
quality of the
produce by for Capacity building farmers and contractors PFC, Agriculture Extension
domestic market for pre and post-harvest management Punjab, Academia, Certifying
based upon which includes fertility management, plant Agency
international protection management, proper harvesting,
standards in the packaging and transportation.
next five years
Provide incentive to adapt Certification PFC, Agriculture Extension,
B. Reduce Post- regimes FEG/PMO, Certifying Agency
Harvest Losses
from 35% to 15%
in the next 10 Establishment of cool chain system to PFC, Agriculture Dept. Punjab,
years increase the shelf life and quality of flowers. SMEDA, Grant Expert (private
Government to provide incentive sector company)
mechanism

Direct linkages of farmers with the market PFC, Agriculture Dept.

which includes exporters, processors and (Economic & Marketing)
retailers to bypass traditional value chain.
Local expositions are effective way of
networking

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 Target Key Interventions Key Implementing Partners
Increase export Aggressive market interventions with PFC, TDAP, Agriculture Dept.
to production special incentives from the (Economic & Marketing)
ratio (from 0.40% government/TDAP Punjab, Commercial Councilors
to 0.80%) and
improve quality PFC, Academia, relevant
and export price Capacity Building besides production government departments
in the next five aspects training would be imparted on
years WTO, Tariffs & Trades Customs Laws and
Phyto-sanitary requirement
PFC, Agriculture Dept. Punjab,
Linkages with domestic and international TDAP
markets through expos/B2B
PFC, Agriculture Department
Existing processing units to acquire Punjab, Certifying Agency
international certifications, including quality
assurance
Establishment of Incentive to be provided by the government Federal government and
Processing and Punjab government
Value Addition Establishment of modern rose petal
dehydration units and Gulkand units at PFC, Agriculture Dept. Sindh,
Pattoki area SMEDA, Grant Expert (private
sector company)
Establishment of Greenhouses at Pattoki
cluster and under PFC project PFC, Ag. Depts. SMEDA, Grant
Expert (private sector company)

Government to provide incentives for PFC, Punjab Agriculture

enterprises to acquire international Department
certifications and training on production
management.

Linkages with domestic and international PFC, Agriculture Dept. Punjab,

markets through expos/B2B TDAP

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11. ANNEXURES
Annex 1. List of Stakeholders Consulted
Sr No NAME INSTITUTION LOCATION
1 M. Abdul Salam Khan Directorate of Floriculture Punjab Lahore
2 Abdul Ghafoor Commission agent Pattoki
3 M. Ijaz Hussain President Flower market Pattoki Pattoki
4 Saleem Ahmad Bulb and seed importer Lahore
5 Dr. Tariq Iqtadar Ex-director, Floriculture Punjab Lahore
6 M. Asif Flower grower Nizam Pura, Pattoki
7 M. Pervaiz Flower grower Chunian
8 M. Behzad Rafiq Flower Grower Lahore
9 Akbar Bhatti Wholesaler, Purani mandi Pattoki
10 Arif Sarfraz Commission agent, Purani mandi Pattoki
11 Mureed Ahmad Wholesaler, New flower market Pattoki
12 Sarfraz Numberdar Commission agent, new flower market Pattoki
13 Sh. M. Javed Iqbal Director Floriculture Punjab Lahore
14 Dr. M. Saeed Assistant Horticulturist, AARI Faisalabad
15 Dr. Umer Habib PMAS Arid Agriculture University Rawalpindi
16 Dr. Monis Hussain Floriculture Research Station Islamabad
17 Mr. Noor Alam Khan Director Floriculture, NARC Islamabad
18 Mr. Iftikhar Ahmad Asst. Res. Officer, Floriculture Multan
19 Muhammad Ali Rose grower Faisalabad
20 Basharat Ali Rose grower Gujranwala
21 Ch. Ijaz Ahmad Wholesaler Pattoki
22 Malik Faisal Mahmood Flower Grower Taxila
23 Adnan Ali Flower Grower Rawalpindi
24 Nazar Ahmad Malang Flower Grower Kotli Sattian
25 Azam Shahzad Flower Grower Mansehra
26 Shahid Nadeem Scientific Officer Floriculture NARC, Islamabad
27 Ijaz Saleem Flower grower and chemist Chitral
28 Mr. Ijaz Shah Manufacturer Rose dehydrator Faisalabad
29 Mr. Arshad PAMICO industries, distilleries Faisalabad
30 Mr. Aslam Fogi Gladiolus grower Pattoki

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Annexure 2: List of Data and Literature Reviewed
AgriHunt 2014, “Floriculture in Pakistan-A SWOT Analysis. https://agrihunt.com/articles/horti-
industry/floriculture-in-pakistan-a-swot-analysis/
Ahmad, I. 2009. Production potential and postharvest management of cut roses. Ph.D. dissertation,
University of Agriculture, Faisalabad.
Ahmad, I. et. al., 2018. Institute of Horticultural Sciences, University of Agriculture, Faisalabad.
(Survey on floriculture in Pakistan has been conducted and the report is still under preparation)
Ahmad, I., J.M. Dole, M.A. Khan, M. Oasim, T. Ahmad, and A.S. Khan. 2010. Present status and
prospects of cut rose production in Punjab, Pakistan. HortTechnology USA.
Alam, S. M. and R. Manzoor. 2005. Cut-flower business. Daily Dawn. 28 th November, 2005.
Amin, J. et al. 2018. To Study Marketing Channels of Different Cut Flowers under Different Agro-
Ecological Zones of Nowsehra and Peshwar. Intl. J. Environ. Sci. Natur. Resourc. 8(3):1-6.
Asif, M. 2016. Developing Optimal Postharvest Protocols for Polianthes tuberosa ‘Single’ Spikes.
Ph.D. Dissertation. University of Agriculture, Faisalabad, Pakistan.
Export Promotion Bureau of Pakistan. 2000. Export from Pakistan. Page 07. Ministry of commerce
Govt. of Pakistan.
Export promotion Bureau of Pakistan. 2004. Export from Pakistan. Page 1. Ministry of commerce
Govt. of Pakistan.
Hanks, G. 2018. A review of production statistics for the cut flower and foliage sector. The National
Cut Flower Center, UK.
ITC (International Trade Center).
https://www.trademap.org/tradestat/Country_SelProduct_TS.aspx?nvpm=1%7c%7c%7c%7c
%7c0603%7c%7c%7c4%7c1%7c1%7c2%7c2%7c1%7c2%7c1%7c1
Kurd et al., 1999. The present status and future prospects of floriculture industry in Peshawar.
Sarhad J. Agri., Peshawar.
Kurd et al., 2001. Profile of floriculture industry in Quetta valley. Sarhad J. Agric., Peshawar.
Manzoor, R., S.A. Shahid and M. Baluch. 2001. Economics of floriculture in Pakistan: A case study
of Lahore market. Pak. Econ. social Rev. 39(2): 87-102.
Mercurio, G. 2007. Cut rose production around the world. Aesse Stampa, Benevento, Italy.
Nasir, N.M. 2005. Floriculture in Pakistan. R&D and training wing, Agribusiness Development Wing,
National Bank of Pakistan.
PARC 2014. Pre-Feasibility for Cut Flower Production in Pakistan, Prime Ministers Youth Business
Loan, GOP
PARC. 2014. Pre-feasibility for cut flower production in Pakistan. Pakistan Agriculture Research
Council, Islamabad, Ministry of National Food Security and Research, Government of Pakistan.
Pizano, M. 2016. USA Flower market. East Africa Trade plus investment hub. USAID.
Pre-Feasibility study cut flowers farm (Roses). Small and medium enterprises development
authority. Government of Pakistan p. 1-16.

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Rafiq, S. 2013. Floriculture in Pakistan: Issues and Analysis. Agrihunt, Pakistan, Pakkissan.com.
Riaz, T., S. Nawaz and A. Javaid. 2007. Scenario of gladiolus production in Punjab, Pakistan. Pak.
J. Bot. 39(7):2389-2393.
Rijswick(2016)
https://www.google.com/search?rlz=1C1CAFC_enPK803PK803&sxsrf=ALeKk01koQNjptm2eu9FG
hJ60KBuLGD8NQ:1587636589382&q=Rijswick+2016&tbm=isch&source=univ&sa=X&ved=2ahUKE
wiQ0cSXp_7oAhUTURUIHRDIBIAQ7Al6BAgHEBk&cshid=1587636736725892&biw=1348&bih=58
9#imgrc=Tes4XouWRCW7BM
Schneider, V.B. 1991. The comparison between Italian and Dutch floriculture: Technical and
economical aspects”. Horticultural Economics and Marketing, 23rd International Horticultural
Congress, Florence, Italy, 27th August to 1st September. Acta Horticulturae, No. 295.
Usman, M. and M. Ashfaq. 2013. Economic analysis of gladiolus (Gladiolus hortulanus) production
in Punjab, Pakistan. J. Agric. Res. 51(3): 317-326.
Zeb, J., Z. Khan and A.S. Khan. 2007. Marketing of floriculture in NWFP. Sarhad J. Agric. 23(3):
815-822.

Annexure 3: TANFLORA INDIA MODEL

TANFLORA Infrastructure Park Ltd:
• Tanflora Infrastructure Park Limited, is a joint venture company of TIDCO & MNA &
Associates, established in Tamil Nadu. The project is conceived to be one of the largest
production facilities for cut roses in the world, with a total production capacity of 67.5 million
roses per annum. The project is a co-operative farming concept developed on the lines of
Aggrexco of Israel. It is divided into 25 grower units of 2 ha each, while the centralized
common infrastructure is developed, owned and operated by Tanflora. All the 25 grower
units have been allotted to 25 individual companies. Besides Tanflora has also got 1.5 ha of
own production facilities and proposes to expand to 5 ha. Tanflora is the country’s first Agri
Export Zone for Cut Flowers. Government of Tamil Nadu had supported the project by
providing funds under ASIDE Scheme for developing infrastructure. APEDA, Ministry of
Commerce provided financial assistance for establishment of post- harvest facilities. National
Horticulture Board provided capital subsidy to the growers.
• The roses grown by the growers are collected and processed in the post-harvest facilities of
Tanflora, packed and marketed under the brand name of Tanflora, primarily exported to
Europe, Australia, Middle East, Far East and Japan. Also due to increase in domestic
market, good quantities of flowers are sold in domestic market mainly in Delhi, Hyderabad,
Chennai etc. The sale proceeds are shared in the ratio of 70:30 on FOB basis between the
growers and Tanflora.
• ‘Taj Mahal’, symbol of love, is a new rose variety, exclusively owned and grown by Tanflora
worldwide, having obtained the rights from a French breeder. The company is also in the
process of producing exclusively a new variety of rose viz. ‘Kohinoor’ jewel of India, on
similar lines of Taj Mahal.
The common infrastructure established by Tanflora includes:
• About 80,000 sq.ft. of grading hall, including 19,000 sq. ft. of Cold Room Facilities which can
handle about 95 million stems per annum.

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 • Water storage steel tanks imported from Holland (10 in number) having capacity of 7.33 lakh
litres per tank.
• Rainwater harvesting facilities (10 tanks) with a total storage capacity of 150 million litres, out
of which 3 ponds with a total capacity of about 70 million litres are provided with pond liners
from Israel.
• About 8 km length of black top internal roads and about 16 km length of storm water drains.
• Nursery with a capacity of 5 lakh plants per annum and the project started making plants,
selling locally as well as exporting the planting material.

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Annexure 4: Flow of Costs and Returns
Annexure 4, Table 1: Flow of Costs and Returns of Rose at Value Chain Actors Level – Domestic
Supply (Rs.)
Commission
Costs/Returns Grower Transporter Wholesaler Retailer
Agent
Raw Material 0 5 12
Production 10.5
Harvest 5
Cost per Kg
Packing 1.25
Transport 1.0 0.5
Others 0.75 1.0 2 5.0
Total Cost/KG 18.5 0.5 1.0 7.00 17.00
Cost Flow 42.0% 1.1% 2.2% 15.9% 38.6%
Revenues /KG 20.0 0.75 1.5 10 36
Gross Margins 1.5 0.25 0.5 3.00 19.0
Return Flow (%) 6.1% 1.0% 2.0% 12.3% 78.3%

Table 16:Flow of Costs and Returns of Surkha Rose at Value Chain Actors Level – Exporter (Rs)

Grower Transporter Exporter – Air Shipment

Raw Material 25.40
Production 10.50
Harvest 5.0 4.0
Cost per Kg Packing 8.0
Processing 10.0
Transport 0.25 17.70
Others 0.55
Total Cost/KG 16.05 0.25 65.1
Cost Flow 19.7% 0.3% 79.9%
Revenues /KG 39.5 0.5 88.0
Gross Margins 23.45 0.25 22.9
Return Flow 50.3% 0.5% 49.1%

Table 17:Flow of Costs and Returns of Gladiolus at Value Chain Actors Level – Domestic Supply (Rs.)

Commission
Costs/Returns Grower Transporter Wholesaler Retailer
Agent
Raw Material 0 6 10
Production 8.35
Harvest 1.25
Cost per flower
Packing 0.95
Transport 0.58 0.25
Others 0.45 1.20 2 3.8
Total Cost/flower 11.58 0.25 1.20 8.00 13.80
Cost Flow 33.2% 0.7% 3.4% 22.9% 39.6%
Revenues/flower 15.5 0.5 1.75 15 30
Gross Margins 3.92 0.25 0.55 7.00 16.20
Return Flow (%) 14.0% 0.8% 1.9% 25.0% 58.0%

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Annexure 4, Table 2: Flow of Costs and Returns of Gladiolus at Value Chain Actors Level – Exporter
(Rs)

Grower Transporter Exporter - Sea Shipment

Raw Material 18.60
Production 8.35
Harvest 1.25 3.0
Cost per flower Packing 12.5
Processing 5.0
Transport 0.5 28.40
Others 0.65
Total Cost/flower 10.25 0.5 67.5
Cost Flow 13.0% 0.6% 86.2%
Revenues /flower 36.5 0.85 106.0
Gross Margins 26.25 0.35 38.5
Return Flow 40.3% 0.5% 59.1%

There are many actors in the floriculture value chain each having different cost and returns. In order
to get a better understanding of the scenario, distribution margins for each market intermediary have
been estimated. The distribution margin or price spread is the difference between the price paid and
received by each specific market intermediary. The market intermediaries involved in the traditional
chain include grower, contractor, transporter, commission agent, wholesaler and the retailer.
Another chain is the processor/exporter sourcing flowers directly from the growers and processes
and exports flowers by air.

As shown in the tables above, for rose value chain the retailer received a maximum share of 78.3
percent in the distribution margin while the wholesaler, commission agent and transporter received
12.3 percent, 2 percent and 1 percent share in the distribution margin respectively. Whereas the
growers share is 6.1 percent which provides returns per kg without any value addition. Whereas for
gladiolus value chain the retailer received a share of 58%, wholesaler 25%, commission agent
1.9%, transporter 0.8% and the grower 14%. It may explain here that farmers get better price in unit
terms but returns per acre is low, probably due to low yield. The retailer’s share in the distribution
margin is calculated on the assumption that the total produce purchased by him is sold at a given
price. However, in reality the retailer is the last owner of the produce and has to bear all kinds of
losses, since produce left unsold fetches a much lower price the next day.

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