Nestle is planning to set up two juice plants in Pakistan, after considering the potential of fruit production and high rate of fruit losses, a company official said.
Highlighting the huge potential, Nestle Pakistan Head of Corporate Affairs Fakhar Ahmed said Pakistan produced large quantities of finest fruits, which could be processed.
Talking to selected media, Ahmed said, “There is tremendous potential in the processed fruit sector, especially in Balochistan. We need to keep in mind that Pakistan loses a large quantity of fruits because of absence of processing facilities.”
Stressing the need to support the packaged milk industry, he said the supply chain needed more investment to make it more effective and reduce cost of production.
The government is earning Rs1.5 billion through income tax from this industry, which holds only three per cent share in the total milk market. “This industry can earn huge revenues and provide employment opportunities, if it continues to grow at the present rate and enjoys zero-rated regime. However, growth will suffer in coming years if the government slaps taxes on the food industry,” he explained.
“Our industry supports the local economy, taking most of the inputs from within the country, and in return, provides employment and tax revenue,” said Ahmed.
Citing a World Bank study, he said the percentage of milk consumption in the kitchen budget is around 22 per cent, adding that if packaged milk was subject to taxes, it would add to inflationary pressure in the country.
The government has already taxed animal feed, which will increase the cost of milk production in the country.
Last year, Pakistan Dairy Association officials campaigned to persuade the government to continue the zero-rated regime for packaged milk in the reformed general sales tax (RGST).
In April 2010, all leading packaged milk products in Pakistan received certification from Eurofins – a state-of-the-art laboratory in Germany – which adds to the quality of local products, informed Ahmed.
The quality of locally-packaged milk was challenged in the Lahore High Court in 2009, but was ultimately approved by the German lab.
Published in The Express Tribune, April 03rd, 2011.
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