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International Business & WTO<br />                                                              <br />Submitted To:<br />Mr. Muhammad Naveed<br />Submitted By:<br />Danish Javaid<br />Muhammad Faisal Ashraf<br />Muhammad Adil<br />Jabran Umer<br />Syed Uzair Amin<br />                        <br />Department of Business Administration<br />Faculty of Management Sciences<br />International Islamic University Islamabad<br />Dedication<br />Dedicated to our parents and to our beloved teacher Mr. Muhammad Naveed without whom<br />We would be unable to write even a single word.<br />He made us to think and think positively while observing the things in daily routine….<br />May Allah bless him and may he live long…<br />Before the world goes dullI need just one more favorIdeas start dancing in your mindLike as if the world will dieI give you this for some helpYou take and use it wellBut there’s just one problemYou broke the promise you just couldn’t keepYou told those terrible thingsBehind my furious faceI know I can’t be mad foreverI think to myselfHe is a lying nitwitBut I know deep down he did it to help me, after allI am like a sick dog nowI haven’t eaten in daysNow I know it’s time to talkSay I’m sorry and thanksYou did what I wantedEven if it hurt meIt sure beats what could have happenedIf I got more stupidNow I’m in treatment And I can’t thank you moreI’m feeling a whole lot happierAnd it’s all because of you!(Thank You Teacher)<br />ACKNOWLEDGEMENT<br />All the efforts are put a name and given recognition under the head and patents of our beloved institute. This project has widespread scope to give us experience of managing our self and others in organization. We stipulate our thanks to those who render their help in data collection synchronized with guidance to put it to an end of better words.<br />We are deeply indebted to our supervisor, Sir Muhammad Naveed whose help, stimulating suggestions and encouragement helped us in all the time of data collection and writing of this project.<br />Table of Contents<br />Pakistan Food Industry<br />,[object Object]
Types of ApplesCompany overview<br />,[object Object]
Ownership & Capital
Trade & Market
Factory InformationIndonesia<br />,[object Object]
An Overview of Current Fruit Situation in Indonesia
Centers of Production
World's Exports
Export According to Province
AN OVERVIEW OF CURRENT FRUIT SITUATION
Channel of Distribution
Tropical Fruit Uses
World's Import
Industry AnalysisRussia<br />,[object Object]
Fruit Industry
Biggest part of Russian fruit import is appleWhy Does Indonesia Merit Business Attention<br />,[object Object]
Reason Why RussiaCountry Analysis<br />PAKISTAN’S FOOD INDUSTRY<br />The food and its allied products industry is considered Pakistan’s largest industry, and is believed to account for 27 percent of its value-added production. Trade sources estimate the sector's total value of production is over rs.46 billion (rs.58.00 equal used 1.00 at the current exchange rate). Pakistan's food industry produces cooking oils, hydrogenated vegetable oils, sugar, flour, dairy products such as milk, butter, yogurt, cheese and ice-cream, biscuits, breads and confectionery, fruit juices and fruit juice drinks, carbonated beverages, snack foods based on rice, potatoes, corn and pulses, processed chicken, jams, jellies, squashes, sauces, pickles, and some cereals and canned fruits. The fish, meat, fruit and vegetable sectors are underdeveloped partly for lack of adequate infrastructure, including storage and transportation facilities. Government policies and plans are expected to greatly increase the de If we look into Pakistan’s conditions; agriculture is the mainstay of its economy.<br />It contributes about 32% to the Gross National Product and accounts for 57% of the labor force and over 50% of foreign exchange earnings.  More than 70% of the country’s population depends directly or indirectly on agriculture for its livelihood. Agro-climatic conditions of Pakistan ranging from tropical to temperate allowing growing 40 different kinds of vegetables and 21 types of fruits.  Major vegetables grown include potato, onion, chilies, melons, cucumber, tomato, turnip, okra and pea, whereas citrus, dates, mango, guavas, apples, banana, apricot, grapes, almonds, peach, plum, and pomegranate are the main fruit crops.  The other major agricultural crops are wheat, rice, cotton, sugarcane, and maize.  Secondary processing technologies for these crops have been fairly developed in the country; however, so far much emphasis has not been given for primary processing (cleaning, grading, handling, drying, pre-cooling and storage, etc.) of these agricultural commodities.  Therefore, tremendous losses are associated with these crops after harvest.<br />Post-harvest processing of fruits and vegetables <br /> Cultivated area for fruits and vegetables are 1.141 million ha with total production of 1 1.64 million tons (Anon., 2000-2001).  The table presents the area under cultivation and annual production of various fruits and vegetables. It is revealed from Table 1 that area under vegetables is 0.556 million ha with production of 6.643 million tons, whereas the area under fruit crops is 0.585 million ha with production of 4.997 million tons.  Most consumption is in fresh form.  Fruits and vegetables are processed to produce jams, jellies, ketchup and juices.<br />Fruits              Area (million)         Production (million tons)    0.1991.898Mango   0.0970.989Banana   0.030.139Apple   0.0580.439Guava    0.0630.525Apricot  0.0130.126Peach  0.0050.003Pears  0.0030.038Plums  0.0070.064Grapes  0.0130.051Pomegranate0.0070.048Dates  0.0790.613Almonds0.0110.033Sub-total 0.5854.997<br />In Pakistan, apples have been grown as Commercial Fruit Plants in Balochistan and N.W.F.P., since long. Because of its attractive income, apple plantation was taken up by the growers in Swat, Dir, Mansehra, Parachinar, Chitral, Hunza, North and South Waziristan Agencies. District Swat covers an area of approximately 4000 square miles within the Malakand Division. The area is mainly a river valley surrounded by mountains, which also have fertile valleys feedings into the main Swat Plain. District Swat is the most important of all the apple producing districts of N.W.F.P. Next in importance come the districts of Mansehra, Dir, Abbottabad, Chitral and Hunza.<br />Table-1TOTAL AREA OF APPLES UNDER CULTIVATION(AREA quot;
000quot;
 HECTORS)YearPunjabSindhNWFPBaluchistanPakistan2003-040.30.18.033.441.82004-050.30.18.135.043.52005-060.30.19.237.046.62006-070.30.111.040.051.42007-080.30.112.042.053.4<br />Table-2PRODUCTION OF APPLES IN PAKISTAN (PRODUCTION quot;
000quot;
 TONS)YearPunjabSindhNWFPBalochistanPakistan2003-042.30.285.0466.0553.52004-052.30.285.7480.2568.52005-062.40.386.5492.5581.72006-072.40.390.0505.0597.72007-082.50.4100.0600.0702.9<br />Types of Apples<br />,[object Object]
Golden delicious apples
Granny Smith apples
Wine sap apples
Gala apples
McIntosh apples
Rome apples
Graven stein applesCompany overview<br />They are a leading company of Rice and Agro based products from Pakistan. They are the foods processor and exporters.<br />Basic Information<br />City:  Lahore<br />Province/State: Punjab<br />Country/Region: Pakistan<br />Business Type: Manufacturer, Trading Company<br />Company Name:Hamdaani Foods Company   <br />Business Type: Manufacturer, Trading Company   <br />Product/Service(They Sell): Fruits, Rice, Spices, Pulses, Sweets   <br />Address:            Suite#3 2nd Floor RM Centre Moon Market, Allama Iqbal             Town Lahore (Punjab) Pakistan.<br />Brands: Hamdaani, Lahori   <br />Number of Employees: 11 - 50 People<br />Company Website URL: http://www.hamdaanifoods.com/ <br />Ownership & Capital<br />Year Established: 2001    <br />Registered Capital: US$501 Thousand - US$1 Million  <br />Ownership Type: Partnership  <br />Business Owner: Muhammad Ashraf  Hamdaani    <br />Trade & Market<br />Main Markets: North America Eastern Europe Southeast Asia Mid East Eastern Asia. <br />Main Customers:  CMS Italia, zara bizness Inc.NY USA. Al Sahab Al Arabia KSA. <br />Total Annual Sales Volume: US$1 Million - US$2.5 Million<br />Export Percentage: 71% - 80% <br />Total Annual Purchase Volume: Below US$1 Million <br />Factory Information<br />Factory Size: Below 1,000 square meters   <br />Factory Location: Lahore, Jaranwala Main Road 50 KM Munian Wala   <br />No. of Production Lines: 4   <br />No. of R&D Staff: 5 - 10 People   <br />No. of QC Staff: 5 - 10 People   <br />Management Certification: ISO 9000/9001/9004/19011: 2000   ISO 14000/14001   <br />Indonesia <br />HistoryThe Republic of Indonesia is a country in Southeast Asia and Oceania. Indonesia comprises 17,508 islands. With a population of around 230 million people, it is the world's fourth most populous country, with the world's largest population of Muslims. Indonesia is a republic, with an elected legislature and president. The nation's capital city is Jakarta. The country shares land borders with Papua New Guinea, East Timor, and Malaysia. Other neighboring countries include Singapore, Philippines, Australia, and the Indian territory of the Andaman and Nicobar Islands. Across its many islands, Indonesia consists of distinct ethnic, linguistic, and religious groups. The Javanese are the largest and most politically dominant ethnic group. Indonesia has developed a shared identity defined by a national language, ethnic diversity, religious pluralism within a majority Muslim population, and a history of colonialism including rebellion against it. Indonesia's national motto, quot;
Bhinneka Tunggal Ikaquot;
 (quot;
Unity in Diversityquot;
 literally, quot;
many, yet onequot;
), articulates the diversity that shapes the country. Despite its large population and densely populated regions, Indonesia has vast areas of wilderness that support the world's second highest level of biodiversity. The country is richly endowed with natural resources, yet poverty remains widespread in contemporary Indonesia.<br />Politics of Indonesia<br />Indonesia is a republic with a presidential system. As a unitary state, power is concentrated in the central government. Following the resignation of President Suharto in 1998, Indonesian political and governmental structures have undergone major reforms. Four amendments to the 1945 Constitution of Indonesia have revamped the executive, judicial, and legislative branches. The president of Indonesia is the head of state, commander-in-chief of the Indonesian National Armed Forces, and the director of domestic governance, policy-making, and foreign affairs. The president appoints a council of ministers, who is not required to be elected members of the legislature. The 2004 presidential election was the first in which the people directly elected the president and vice president. The president may serve a maximum of two consecutive five-year terms. A session of the People's Representative Council in JakartaThe highest representative body at national level is the People's Consultative Assembly (MPR). Its main functions are supporting and amending the constitution, inaugurating the president, and formalizing broad outlines of state policy. It has the power to impeach the president.[48] The MPR comprises two houses; the People's Representative Council (DPR), with 560 members, and the Regional Representative Council (DPD), with 132 members. The DPR passes legislation and monitors the executive branch; party-aligned members are elected for five-year terms by proportional representation. Reforms since 1998 have markedly increased the DPR's role in national governance. The DPD is a new chamber for matters of regional management.<br />Foreign relations of Indonesia<br />In contrast to Sukarno's anti-imperialistic antipathy to western powers and tensions with Malaysia, Indonesia's foreign relations since the Suharto quot;
New Orderquot;
 have been based on economic and political cooperation with Western nations. Indonesia maintains close relationships with its neighbors in Asia, and is a founding member of ASEAN and the East Asia Summit. The nation restored relations with the People's Republic of China in 1990 following a freeze in place since anti-communist purges early in the Suharto era. Indonesia has been a member of the United Nations since 1950, and was a founder of the Non-Aligned Movement (NAM) and the Organization of the Islamic Conference (OIC).  Indonesia is signatory to the ASEAN Free Trade Area agreement, the Cairns Group, and the WTO, and has historically been a member of OPEC, although it is withdrawing as of 2008 as it is no longer a net exporter of oil. Indonesia has received humanitarian and development aid since 1966, in particular from the United States, Western Europe, Australia, and Japan.<br />Geography of Indonesia<br />Map of Indonesia consists of 17,508 islands, about 6,000 of which are inhabited. These are scattered over both sides of the equator. The five largest islands are Java, Sumatra, Kalimantan (the Indonesian part of Borneo), New Guinea (shared with Papua New Guinea), and Sulawesi. Indonesia shares land borders with Malaysia on the islands of Borneo and Sebatik, Papua New Guinea on the island of New Guinea, and East Timor on the island of Timor. Indonesia also shares borders with Singapore, Malaysia, and the Philippines to the north and Australia to the south across narrow straits of water. The capital, Jakarta, is on Java and is the nation's largest city, followed by Surabaya, Bandung, Medan, and Semarang.<br />At 1,919,440 square kilometers (741,050 sq mi), Indonesia is the world's 16th-largest country in terms of land area. Its average population density is 134 people per square kilometer (347 per sq mi), 79th in the world, although Java, the world's most populous island, has a population density of 940 people per square kilometer (2,435 per sq mi). At 4,884 meters (16,020 ft), Puncak Jaya in Papua is Indonesia's highest peak, and Lake Toba in Sumatra its largest lake, with an area of 1,145 square kilometers (442 sq mi). The country's largest rivers are in Kalimantan, and include the Mahakam and Barito; such rivers are communication and transport links between the island's river settlements. Lying along the equator, Indonesia has a tropical climate, with two distinct monsoonal wet and dry seasons. Average annual rainfall in the lowlands varies from 1,780–3,175 millimeters (70–125 in), and up to 6,100 millimeters (240 in) in mountainous regions. Mountainous areas—particularly in the west coast of Sumatra, West Java, Kalimantan, Sulawesi, and Papua—receive the highest rainfall. Humidity is generally high, averaging about 80%. Temperatures vary little throughout the year; the average daily temperature range of Jakarta is 26–30 °C (79–86 °F).<br />Biota and environment<br />Fauna of Indonesia, Flora of Indonesia, and Environment of Indonesia<br />The critically endangered Sumatran Orangutan, a great ape endemic to Indonesia and Malaysia. A mega diverse country, Indonesia's size, tropical climate, and archipelagic geography, support the world's second highest level of biodiversity (after Brazil),  and its flora and fauna is a mixture of Asian and Australasian species. Once linked to the Asian mainland, the islands of the Sunda Shelf (Sumatra, Java, Borneo, and Bali) have a wealth of Asian fauna. Large species such as the tiger, rhinoceros, orangutan, elephant, and leopard, were once abundant as Far East as Bali, but numbers and distribution have dwindled drastically. Forests cover approximately 60% of the country. In Sumatra and Kalimantan, these are predominantly of Asian species. However, the forests of the smaller, and more densely populated Java, have largely been removed for human habitation and agriculture. Sulawesi, Nusa Tenggara, and Maluku—having been long separated from the continental landmasses—have developed their own unique flora and fauna. Papua was part of the Australian landmass, and is home to a unique fauna and flora closely related to that of Australia, including over 600 bird species. Indonesia is second only to Australia in its degree of endemism, with 26% of its 1,531 species of bird and 39% of its 515 species of mammal being endemic. Indonesia's 80,000 kilometers (50,000 mi) of coastline are surrounded by tropical seas that contribute to the country's high level of biodiversity.<br />Indonesia has a range of sea and coastal ecosystems, including beaches, sand dunes, estuaries, mangroves, coral reefs, sea grass beds, coastal mudflats, tidal flats, algal beds, and small island ecosystems. The British naturalist, Alfred Wallace, described a dividing line between the distribution and peace of Indonesia's Asian and Australasian species. Known as the Wallace Line, it runs roughly north-south along the edge of the Sunda Shelf, between Kalimantan and Sulawesi, and along the deep Lombok Strait, between Lombok and Bali. West of the line the flora and fauna are more Asian; moving east from Lombok, they are increasingly Australian. In his 1869 book, The Malay Archipelago, Wallace described numerous species unique to the area. The region of islands between his line and New Guinea is now termed Wallacea.<br />An Overview of Current Fruit Situation in Indonesia<br />Centers of Production<br />The centers of production of fruits in Indonesia are found in Java, Bali, Sumatra, and Kalimantan. These tropical islands produce many kinds of fresh fruits to be distributed in other areas. <br />World's Exports<br />According to UNCTAD/WTO's statistics, the value of world’s export of fresh fruits and other fruits (HS 081090) in the period of 1999 - 2007 had fluctuated and experienced a decline with an average of -0.28% annually. In 1999, the export value was US$ 431.3 million, and declined to US$ 410.2 million in 2003. In 2005, it declined to US$ 396.4 million, the export value significantly increased to reach US$ 486.1 million and declined again to US$ 314.2 million in 2007. <br />Export trend of Indonesian fruits (SITC 057) in the period of 2000 - 2004 increased by 7.07%. In 2004, there were 10 countries as major importers of Indonesian fruits, which were: India with US$ 55,732 with a share of 36.47%, and its trend of import increased by 10.20%. Singapore was at the second place with a share of 13,03% and its import trend declined by 13.49%. Vietnam was at the third place with a share of 9.88%, but its import trend increased by 82.19%. The highest increase of export trend was to Bangladesh, which was at the 7th place, with a share of 3.04%, and a trend of 36.247%.<br />In 2007, Thailand was in the first place as exporter of fresh fruits with a share of 19.20%. It was followed by Spain with a share of 16.76%, the Netherlands (7.73%), France (6.62%), and the United States (5.35%). Indonesia was at the 20th place with export value of US$ 5.6 million or with a share of 1.16% of total world's export.<br />Indonesian Export of Fruits (SITC 058) 2004 (US$)<br />NOCOUNTRYEXPORT VALUE %-SHARE%-TREND (2000-2004)  TOTAL EXPORT 85,879100.005.201United States 24,57828.624.602Germany10,68712.443.773Singapore8,3689.74-11.664Spain7,8919.1956.875Netherlands7,8829.189.056Japan6,7327.847.547Argentine1,9722.30-8.648France1,9332.2516.679Taiwan1,6481.927.4510United Kingdom 1,4611.701.66<br />According to the Central Board of Statistics, the export value of fruits included in SITC 058 in 2004 was US$ 85.879. The trend of export during the period of 2000 -2004 was 5.20%. The United States was at the first place with a share of 28,62% and trend of import of 4.60%. It was followed by Germany with a share of 12.44% and a trend of 3.77%. Singapore was at the third place with a share of 9.74% and its import trend declined by -11.66%. Likewise Argentina at the 7th place, its import trend declined by -8.64%. <br />Export According to Province<br />According to port of loading, export of Indonesian fruits (SITC 057) in 2004 and its trend in the period of 2000 - 2004 can be seen in the following table;<br />NOCOUNTRYEXPORT VALUE %-SHARE%-TREND (2000-2004)  TOTAL EXPORT 152,809100.007.071West Java 63,56041.5923.182North Sumatra 46,41830.389.573Riau20,42713.37-9.594Jakarta8,5715.618.715South Sulawesi 3,8842.54-25.696Central Java 2,4701.6219.677Bali1,9311.2653.028Jambi1,5511.0290.099Lampung1,5080.99-2.93<br />Source: Indonesian Central Board of Statistics.<br />AN OVERVIEW OF CURRENT FRUIT SITUATION<br />1. The fruit industry is still characterized as a smallholder traditional enterprise.<br />2. Low capital and technology input in the agribusiness system <br />,[object Object]
poor cultural practices
Land cultivation/preparation
Fertilization practices

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Original final report of wto

  • 1.
  • 2.
  • 5.
  • 6. An Overview of Current Fruit Situation in Indonesia
  • 10. AN OVERVIEW OF CURRENT FRUIT SITUATION
  • 14.
  • 16.
  • 17.
  • 24.
  • 29. IPM
  • 31. poor post harvest, marketing and processing practices
  • 32.
  • 33.
  • 34. Chip
  • 35. Crack
  • 39. jam
  • 40. Jelly
  • 41.
  • 42.
  • 43. The total (values grown steadily)
  • 44. Production has shown substantial increase
  • 45. The total (value) of fresh fruit exports increased
  • 46.
  • 47. Apple production in recent years surpassed 60 million metric tons, enough to provide each person in the world with about 20 lbs of apples.
  • 48. World production of apples is now about 2.5 times what it was in 1960. It rose over 25 percent between 1995 and 2005.
  • 49. Apples are produced in many countries with a temperate climate. Newer varieties have permitted expansion of production into ever-hotter areas.
  • 50. China is the largest apple producing country in the world. It now produces close to 40 percent of the world total.
  • 51. China's apple production increased fourfold in the last decade. The rate of growth has been erratic since 2000, but absolute annual increases have been large.
  • 52. The traditional center of commercial apple production was continental Europe. Europeans brought commercial apple-growing to many other parts of the world.
  • 53. The United States is a distant second to China in apple production. France, Germany, Italy, Poland and Russia remain among the top ten apple producers.
  • 54. Turkey, Iran and India are also major apple producers. However, most of their production is absorbed by their own rapidly-growing populations.
  • 55. Major Southern Hemisphere apple producing countries include Argentina, Australia, Brazil, Chile, New Zealand and South Africa.
  • 56. Less than ten percent of world apple production enters international fresh apple trade. Only a handful of countries engage in long-distance exporting.
  • 57. The leading fresh apple exporting countries are China, France, the United States, Chile, Italy, New Zealand and South Africa.
  • 58. A number of these countries also produce large volumes of concentrated apple juice for export.
  • 59. The major import markets for fresh apples and concentrated apple juice are in the developed countries of Europe, North America and Asia.
  • 60.
  • 62.
  • 63. Has a wide range of environments, ranging from low- to high-lands, wet and dry tropical regions.
  • 64. Has tremendous biodiversity, hundreds of species and varieties, providing hundreds of species and varieties, providing opportunities for customer specific variety.
  • 65. Environment diversity & biodiversity provide year-round harvestingBusiness Prospect for Tropical Fruits in Indonesia<br />The potential to develop tropical fruits is excellent provided that such development is targeted to an industry based on reliable production, postharvest, processing and marketing. <br />Tropical fruits are expected to be large export-income earners, so that the development of Indonesia's tropical fruits must be supported by commercial plantations. Thus, opportunities in the development of commercial orchards are tremendous. <br />Commercial orchards of fruit crops require technology inputs to the production, postharvest, processing and marketing systems. Therefore there are huge opportunities for the supply of fruit production, processing, grading, packaging, cold storage etc. equipment and facilities. <br />The main constraints to efficient production and quality improvement of fruit on a commercial scale are the knowledge and ability of human resources in adopting modern technology. Indonesia needs technical training. Opportunities exist for other interested countries to conduct courses/training for plant breeding, micro countries to conduct courses/training for plant breeding, micro propagation, marketing, harvesting, processing etc. <br />As Indonesia moves towards a market economy, its fruit situation and trade are increasingly dependent on consumer behavior. Also, the international market requires standardized high quality products. Several areas need collaboration on facilities and human resource development: <br />Quality assurance, standardization and certification <br />Long distance transport <br />Quarantine development <br />Consumer and Promotion Development.<br />Reason Why Russia<br />Almost one in three fruits is an apple. Five years ago it was one in five. Russia has recorded a real drop in the total fruit imports of 6% this year. The fall is small compared to the total fall in imports of 41% since the beginning of the year. The fall in fruit imports is a break with the trend of the last few years, when the volume grew an average of 12%.<br />We are launching apple in Russia because of its increasing demand and also increase in their imports. As according to the world report Russia is at 9th place in imports of fruits and also it is a very stable country and it’s per capital income is also very good and because of increase in imports of apples we are suggesting Pakistani exporter of fruits that Russia is a good market for apples.<br /> <br />