EU URGES GOVT TO LIFT DUTY ON IMPORT OF MILK POWDER

The Express Tribune, July 31, 2016

ISLAMABADThe European Union has urged the Pakistani government to remove the 25% regulatory duty on import of milk powder, which has hurt the export of this product.

The demand was made by some EU ambassadors at a meeting with Commerce Minister Khurram Dastgir Khan in Islamabad last week.

The ambassador of EU Mission led the delegation, accompanied by ambassadors of France and Holland, to take up the issue with the Pakistani authorities.

The ambassadors argued that since Pakistan enjoys GSP Plus status in exporting its products to the EU, the government should avoid such curbs on EU products as well. They urged the commerce minister to take up the matter with the higher authorities.

The Pakistani side said that the duty was imposed to protect the local farming community. The government imposed 25% regulatory duty on the import of powdered milk and whey powder in the latest budget, resulting in a total duty of 45% (20% customs and 25% regulatory duty) on the import of these items.

This was done on the recommendation of the Ministry of National Food Security and Research, which took the step after farmers demanded protection.

Sources said that after the categorical demand by the EU countries, the government is in a difficult situation about the issue as it cannot ignore the demand of the EU countries, particularly given the GSP Plus status.

At the same time, Pakistan’s agriculture and livestock sectors continue to show unimpressive growth, while forming a majority of the vote bank for the ruling PML-N.

http://tribune.com.pk/story/1152842/eu-urges-govt-lift-duty-import-milk-powder/

Environment: The aftershocks of global warming

HAMID AHMAD MIR

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For the past three decades climatologists have been raising alarms about global warming and its consequences, and now geologists have also got involved in the issue. World’s renowned geologists are of the opinion that rapidly melting glaciers will result in increasing number of earthquakes, volcanic eruptions and tsunamis.

This is based on the premise that ice is extremely heavy — one cubic metre of ice weighs almost one ton and glacier being a colossal sheet of ice exerts tremendous pressure on the surface of the earth beneath their cover. When glaciers start to melt, as we are experiencing today, pressure on the earth’s surface on which the glaciers are located is reduced significantly. The lightening of load on the earth’s surface allows its mantle to rebound causing the tectonic plates beneath to become unstuck.

According to Patrick Wu, a geologist at the University of Alberta in Canada, the weight of thick ice puts a lot of pressure. This weight suppresses earthquakes, but when the ice melts earthquakes are triggered. Wu goes on to say that many earthquakes that occur in Canada today are related to this ongoing rebound effect that started with the end of the last Ice Age some 10,000 years ago.

The melting of glaciers can lead to more earthquakes in Pakistan and around the world

In the face of present global warming, rapidly changing climatic factors and speedy deglaciation the foreseeable rebound is expected to be much severe and faster. Experts term this rebound ‘Isostatic Rebound’. This process reactivates the fault, increases the seismic activity and lifts pressure on magma chambers that feed volcanoes.

Experts are also of the view that there are implications for parts of the world where glaciers and active faults coincide, including the Hindukush, Himalayas, Alps, Andes, etc. In Pakistan, in the Hindukush and Himalayan regions glacier melt due to climate change coincides with active faults.

Andrew Hynes, tectonics expert at McGill University, puts forward another theory to illustrate an additional relationship between glacier melt and earthquakes when he says that increased glacier melt increases the concentration of fluid in the fault that lubricates the rock, allowing the plates to slide.

An added phenomenon that needs to be kept in mind is that if glacier melt is reducing the stress on earth’s surface in glaciated areas, it is also increasing the stress on seafloors due to rapid influx of water.

The massive melting of ice might trigger earthquakes that are strong enough to lead to the seafloor collapsing or and underwater landslide that in turn could generate a tsunami. Melting of glaciers and the subsequent rise in sea level also means that previously exposed continental margins become inundated with water.

Melting of ice in Antarctica is already triggering earthquakes and underwater seafloor slides, says Wu. Although, at present, these events are not getting much attention, these are early warnings of the more serious events that scientists believe will be experienced in near future.

The glaciated areas in northern parts of Pakistan are quite vulnerable to such events as they are not only heavily glaciated but are also located on tectonic fault lines. For the last three decades the area is also experiencing rapid ice melt due to climate change. Climate change induced disasters, like Glacial Lake Outburst Floods (Glofs) and riverine floods, have become common features in the northern parts of the country. Call it a mere coincidence or reality that for the same period earthquake events are also showing an upward trend vis-a-vis the Glofs/floods.

The recent floods and earthquake events in Hindukush and Himalayan regions of Pakistan are clear evidences of this correlation. Over a period of three decades the frequency and intensity of both glacier-melt and occurrence of earthquakes in the northern regions of Pakistan have increased. Apparently both seem to be directly proportional to each other. During August 2013 alone, Chitral district and adjacent areas experienced over a dozen earthquakes of above five magnitude. During December 2015 and first week of January 2016, District Chitral and adjoining glaciated areas experienced over five devastating earthquakes.

In Chitral it has now become a common belief among the local communities that the frequency and devastation of earthquakes in winter is directly proportional to the severity and intensity of floods during the preceding summer. However, this myth of the local communities needs to be evaluated and studied in detail.

Chitral is home to some 542 glaciers with an estimated volume of nearly 269 cubic kilometres and alone counts for nine per cent of the total glacial or ice reserves of Pakistan. According to experts from the field of environment, glaciology and hydrology all glaciers of Pakistan will melt away completely by the year 2035.

As has been mentioned earlier, one cubic metre of glacial ice weighs almost one tonne. If by 2035 all glaciers in Pakistan melt away, as has been predicted by experts keeping in view the present melting rate, then it means removal of 269 billion tonnes of load from the surface of the earth’s crust in Chitral alone.

The melting of glaciers in the district is quite evident from increased number of Glofs and the ever increasing water flow in River Chitral (also known as River Kabul in the lower course) for the last two decades. However, the phenomenon needs to be studied in detail.

The writer is a field officer at the Pakistan Glof Project in Chitral

Published in Dawn, Sunday Magazine, July 31st, 2016

http://www.dawn.com/news/1274426

Climate Change: a saga of disasters for riverine farmers in Pakistan!

The endless suffering of the riverine area farmers in Pakistan depicts the disaster that climate change is bringing to the most vulnerable marginalized communities. In March 2015, sudden rains and low floods had washed away the almost ready to harvest wheat crops of various villages along the Chenab River in the area called Ghanta Ghar, Mozan Nawabpur, Multan district; than later in July 2015 floods had forced communities to evacuate or live cut off from the rest of the city among the swirling waters. Daily coming and going became dependent on small row-boats which charged the villagers either per journey or even yearly payment of fixed amount of wheat grains. We have reported on their hardships earlier.

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Now once again there are flood warnings being issued by the government. In early Ramazan (early June), government had raised to the ground some homes but then stopped, supposedly because of Ramazan. Now they are back. Bulldozers are smashing the small mud-houses to the ground. According to the government officials who are with the eviction team these people were given notices earlier and they have to be evacuated as this land adjacent to the river bank and the government has to reinforce the embankment (bund) called the Sipar Nawabpur Bund. According to the officials there they will be abolishing 700 housed within this week. The police has barricaded the area not even allowing people to remove their belongings or go near the site.

No doubt, there are expected flood but that is nothing new. If this land was not safe why were people allowed to sit here in the first place. Second, many people had purchsed land here after the 2010 Super Floods – why was land sold to these farmers if indeed this area was not safe?

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July 26, 2016

No doubt, there is a flood warning but where do the people go? Our shameless government officials are forcing people to evacuate without giving them an alternate abode.  Nobody allows them to put down their belongings and makeshift abode.

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It is criminal that on one hand these people suffer from climate change calamities – dumped on their heads by the profit-driven capitalist growth – and on the other hand they are given no support from their own government. In a matter of 16 months, this is the third eviction that these communities are facing!

A farmer saving what he can of the destroyed wheat harvest. He will use the wasted crops as fodder for his livestock.

A farmer saving what he can of the destroyed wheat harvest. He will use the wasted crops as fodder for his livestock. March 2015

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July 2015

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May 2016

https://rootsforequity.noblogs.org/post/2015/03/10/the-miserable-life-of-the-kacha-area-farmers-facing-evacuation-once-again/

https://rootsforequity.noblogs.org/post/2015/07/15/in-the-jaws-of-climate-change/

Footprints: A case of mistaken identities?

NASIR JAMAL

A CHAK 28/2R resident, Ghulam Murtaza, points towards the place where the ‘shootout’ took place

A CHAK 28/2R resident, Ghulam Murtaza, points towards the place where the ‘shootout’ took place – Photo by writer

OKARA: In the midst of lush green fields in Chak 28/2R — one of the several villages that make up Okara’s Kulyana Military Estate — sits a decrepit cemented structure, the outhouse where the Okara police claim the six terrorists they had killed during a ‘shootout’ in the early hours of July 13 were hiding.

Many villagers speaking to Dawn recall how they were woken up by speeding police trucks and jeeps late in the night. None dared to step out, and only learnt about the “raid and gunfight” the next morning, after the bodies of the suspects had already been removed.

“It was in the dead of the night when we heard police vehicles racing in the direction of the outhouse,” says Dilshad Ali, a village resident.

The outhouse belongs to a retired army major, Faqir Hussain, who, like other military officers, was allotted land in the Kulyana Estate around 20 years ago. But it has been in possession of two Anjuman Muzaraeen Punjab (AMP) leaders — Saleem Jhakkar, who has been in jail for the last year and a half, and his brother Naeem.

It was in 2009 when the retired major’s men allegedly shot dead three protesting tenants over a land rent dispute, after which Faqir Hussain has never been able to return to the village. “The tenants, led by Saleem, grabbed all my land eight years ago. I tried every available option but neither the military nor the provincial government helped me regain possession of the land I made cultivable after almost 10 years of hard work. The police are on the side of the tenants, and the courts haven’t helped either,” he says.

According to police claims, Naeem had given shelter to the suspects at the outhouse. “He fled the place after the raid and is now a fugitive,” says a senior Okara police official. Some say the government has announced a reward of up to Rs1 million for information that may lead to his arrest.

AMP activist Ghulam Murtaza says no one has any knowledge of the whereabouts of the families of the AMP leaders. “Only the police can tell whether they are hiding or are in their custody,” he says.

There are more than 50 policemen lounging in the AMP leader’s home; their officer-in-charge seems unhappy to see a newspaper team asking his men about the whereabouts of the family of the owner. “We were brought here the morning after the encounter with terrorists and don’t know anything,” he says. “Talk to our seniors if you want any details; we cannot help you.”

Murtaza, like other villagers, rules out even the “remotest possibility of the presence of suspects at the outhouse before the police arrived,” insisting that neither any AMP leader nor the tenants have anything to do with religious militants.

“It is a lame effort to start a witch-hunt against Naeem and the rest of the AMP leadership [in Okara] to break the back of our movement for land rights, and evict us from the land we have been tilling for more than four generations. We are not terrorists. Nor are our leaders, as the police would want the world to believe,” he says.

There is hardly any evidence at the outhouse to corroborate the police’s claim that a fierce gunfight between security forces and suspected terrorists took place there less than a week ago. There are a few large bloodstains on the ground of the verandah, and on the bedcloth inside the room; no bullet marks can be seen on the outer walls. The room has been stripped down and appears to have been out of use for quite some time.

A news agency report has quoted the management of Lal Masjid that two of the six suspects killed in the encounter were employees of Jamia Hafsa and had been in custody of security forces for several months. This development has lent further credence to the villagers’ claim that the shootout was no more than a case of “custody killings”.

Police, however, say intelligence was provided by the Inter-Services Intelligence (ISI). “The raid was carried out jointly by the counter-terrorism department, local police, and ISI officials,” says a senior police official, unwilling to be identified.

A leader of the Awami Workers’ Party (AWP), Farooq Tariq, who has been working with tenants of the Okara military farms for their land rights since the movement began 15 years ago, also says the incident was “staged” and is an attempt by the military farm administration, with the aid of the police, to force tenants to strike a deal with the Kulyana Estate allottees on their conditions.

A few days after the Kulyana Estate village ‘operation’, police and military personnel raided the house of Mehr Abdul Sattar in Chak 4/4L. Sattar has been in jail since April when he tried to organise a peasant convention. “Police had not found anything in Sattar’s home when they raided it to arrest him. But after the so-called Kulyana shootout, they claim to have recovered weapons and Indian currency. Doesn’t their story baffle you?” says the AWP leader.

“If the authorities think they can scare tenants by labelling their leaders as Indian agents, or framing them in false cases by using high-handed tactics, they are grossly mistaken.”

Published in Dawn, July 26th, 2016

http://www.dawn.com/news/1273244/footprints-a-case-of-mistaken-identities

EU APPROVES MONSANTO, BAYER GENETICALLY MODIFIED SOYABEANS

Business Recorder, July 24th 2016

CHICAGO: The European Commission on Friday approved imports of Monsanto’s Roundup Ready 2 Xtend genetically modified soyabean variety, after months of delays that had derailed the US seed giant’s product launch this spring.

The decision now clears the way for widespread planting next season and removes a hurdle for North American farmers and grain traders, who have to keep close track of unapproved biotech traits that can disrupt trade. Top importer China approved the soyabeans earlier this year.

US grain trader and processor Archer Daniels Midland Co told Reuters on Friday its elevators and processing plants will now accept the Xtend soyabean variety. Rivals Cargill Inc, Bunge Ltd and CHS Inc, which had also refused to accept the variety without EU import approval, could not be immediately reached for comment.

The EU is the second largest importer of soyabeans and its approval is not expected to have a major impact on merger talks by German suitor Bayer AG, whose sweetened $64-billion buyout offer of Monsanto was rejected last week, as it had been widely anticipated, analysts said on Friday.

“It would have been a big deal if it hadn’t been approved, but this was the expected outcome, although it took longer than anyone thought,” said Bernstein analyst Jonas Oxgaard.

Still, the approval marks a key victory for Monsanto in the wake of months of regulatory delays over this launch, and swirling controversy over whether glyphosate, the chemical in its popular Roundup herbicide, is carcinogenic.

Monsanto expects Roundup Ready 2 Xtend soyabeans, designed to tolerate applications of glyphosate and dicamba weed killers, to be planted on 15 million acres next spring and 55 million acres by 2019. The company is still waiting the US Environmental Protection Agency to approve dicamba use on crops.

The European Commission also approved a Bayer CropScience soyabean variety. The EU executive branch took action after EU member states failed to reach an agreement on whether to licence them.

The approval will allow these GMO soyabeans to be used in food or animal feed, but not for planting within the EU.

“Any products produced from these GMOs will be subject to the EU’s strict labelling and traceability rules,” the European Commission said in a statement.

The EU imports tens of million tonnes of GMO crops and products every year for use in animal feed.

The authorisations, which cover Monsanto’s soyabean MON 87708 x MON 89788 and soyabean MON 87705 x MON 89788 and soyabean FG 72 of Bayer’s CropScience division, will be valid for 10 years.

Monsanto shares were little changed on Friday at $106.07.—Reuters

http://epaper.brecorder.com/2016/07/24/15-page/778956-news.html

FARMERS PROTEST LAND ACQUISITION FOR INDUSTRIAL ESTATE

Dawn, July 21st, 2016

GUJRAT: Scores of farmers and landowners from different villages along the Gujrat-Sargodha road on Wednesday staged a demonstration in front of the district government complex against a proposal to acquire land for the establishment of phase II of the industrial estate area.

At least 480 acres of agricultural land between Saroki and Sheikh Sukha along Sargodha Road have been earmarked by the local land revenue department and approved by stakeholders, including the Punjab Small Industries Estate Department and local business community.

A large number of people from Jhandewal, Mund, Dhudra and Sheikh Sukha — the villages to be affected due to the proposed land acquisition — gathered at the district government and staged a demonstration.

The protesters demanded the authorities select another site since the proposed site comprised rich fertile land, which should be spared for agricultural purposes only.

Later, representatives of the protesters met with District Coordination Officer (DCO) Liaquat Ali Chattha and local PML-N MPA Haji Imran Zafar to convey apprehensions of the villagers over the project.

They asked the district government to shift the project to the other side of Sargodha Road where at least 200 acres of government land was also available, which they claimed had been occupied by some influentials.

They project could also be shifted to the previously proposed site along Gujrat-Bhimbher road where a huge chunk of barren land owned by the provincial government was available, they suggested.

The DCO told them that at least 400 acres were required for the project, which was why the southern side of Sargodha road was not an option.

Both the DCO and the MPA asked the protesters to render this sacrifice for the uplift of the country as well as economic growth of Gujrat.

They also sought suggestions from landowners if the matter could be resolved by enhancing the price of land or sparing a part of affected villages.

The protesters dispersed peacefully when the DCO assured them of visiting the proposed site with them on Saturday.

Meanwhile, the district government in consultation with officials of the Gujrat Chamber of Commerce and Industry (GTCCI) proposed that phase 2 of the planned industrial estate be named Chenab Industrial Estate Area of Gujrat.

This was decided in a meeting held at the district government complex presided over by DCO Chattha with GTCCI President Mian Muhammad Ijaz leading a delegation of local industrialists.

The meeting was told that officials of the Punjab Small Industries Estate Department had also declared the proposed 480 acres feasible for the project, which would be linked with the GT Road by a 120-foot wide dual carriage way.

The DCO said following completion of the initial procedural work, a formal summary was being prepared for approval of the chief minister, which would be followed by the issuance of a notification of Section 4 of the Land Acquisition Act so that the district Land Revenue Department could acquire the land.

http://www.dawn.com/news/1272151/farmers-protest-land-acquisition-for-industrial-estate

Climate Change Impacts: From the Farmlands to Squatter Settlements.

Azra Talat Sayeed, Roots for Equity

July 13, 2016

In Pakistan, the word climate change-related disasters are generally related to upheaval of rural communities, especially riverine communities. However, what has happened today in a squatter settlement of Guslhan-e-Iqbal, Karachi belies this belief. National Disaster Management Authority (NDMA) on July 10, issued a warning about the “weather in Karachi and Coastal Areas of Sindh.” Though the warning did not state what kind of ‘weather’ the citizens of Karachi were to expect, the result was that officers from District Commissioner offices were demanding squatter settlement communities living along sewerage flows/water canals to evacuate the area. Today (July 13, 2016) a number of senior official with police escort came to this particular squatter settlement (generally known as kacchi abadi) living under bridge that is passing under the Northern Bypass Bridge on Rashid Minhas Road in District East, Karachi, near Moti Mahal and just a stone’s throwaway from the very recently opened Imtiaz Super Store.

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The police destroyed a temporary abode of a family that was in front of a major sewerage pipeline and other squatters (after much pleading) were given three hours to evacuate – they were threatened that the police and District East officials would return at 6:30 pm and at that time if the squatters were still there, their belongings would be bulldozed and they would be forcefully evacuated. The families were forced to pack their very meager belongings – the women, a majority of whom were domestic servants in the homes around the abadi running in every which direction searching for a shelter for their children at least for the night; a woman among them worried about keeping her children’s school books in a safe place; another on her way to storing her sewing machine and her daughter’s trousseau in her malikan’s (employer) home if she would allow her to do!

No doubt, the evacuation being demanded was fair and in preparation of possible flooding of the sewerage canals and the small stream highly polluted with very toxic-looking effluent flowing through it. However, the abusive behavior and show of force was not at all needed. But the hallmark of authority in Pakistan is of course first verbal abuse, and if need be, physical abuse.

However, our focus is not only on the atrocious behavior of our so called government servants, who are paid to serve us, the people of this city; The question is that why are so many people living in kachi abaids. Why have these families living in such inhuman, abysmal conditions? Where did the y come?

Almost every family in this abadi is a rural migrant from the Rahimyar Khan District in Punjab having migrated to Karachi in search of work. Most of them are landless agriculture workers who due to very poor enumeration of their work end up in Karachi. According to the women in the abadi, hardly anybody has any land. Of the 20 families, 2 families have just one or two canals (1 acre has 8 canals). Ghafurra, a domestic worker explained that even when families work as agricultural workers, they get paid seasonally. So, no doubt there is wheat stored at home but there is nothing else to eat apart from roti. According to her “there is no money to buy vegetables or any other stuff for food till the next season.”

 After wheat harvest, the next crop would be cotton picking which would be six months away. Sugar cane stands for 12 months so this crop only provides mazdoori (labor) once a year. One family has just come to this settlement– about 15-20 days ago, they had sown moong dal (lentils), which got washed away with the current floods. This family is suffering from hunger.  We asked the families if they have such shortage of cash how do they find the money to travel from Rahimyar Khan to Karachi? One family had sold their donkey to pay for the travel expenses.

Others sell stored wheat that they have earned during the wheat harvest. It was also explained that daily expenses are also met by selling small quantities of wheat during the ‘no work’ season.  This is the basic reason that these families come to Karachi in search of whatever work they can find. One woman who has recently come to Karachi has been telling the families here that they are lucky to have cooked meals every day. According to her “we only subsist on roti – even vegetables are hard to access as they cost money.”

Even in the extremely abysmal conditions of this community, it is important to point out that the patriarchy is rife and the burden of providing for the families, particularly the children is with the women. Almost all of them are working as domestic servants, therefore basically living a life of toil and abuse hour by hour. It was clear that the food in this abadi of which a recent rural migrant was so envious of, is dumped food from the homes where these women spend their day cooking, cleaning and washing.

A woman told us that even when the police was in their area threatening to throw away their things, her husband was on his way to Rahimyar Khan, for some family business; she had entreated him not to go at least till this issue was settled but to no avail. She has seven children whom she is putting through schooling by working almost 10 hours a day – backbreaking work of sweeping and mopping at least 4-5 homes daily. She told us “a small room which would include a kitchen and the washroom would have to paid Rs 6,000 in rent per month. Where would I pay for the rent?” For two hours of work daily she gets paid Rs 3,500 in one home – and in the whole month is only able to earn no more than Rs 14,000. If she pays Rs 6,000 for rent how would she pay for the family’s food, schooling, other expenses? Another woman is living with her daughters. Her husband has divorced her because she had given birth to only to daughters. So each woman has a story to tell. Each story has its root in the oppressive systems of feudalism, capitalism and patriarchy.

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The living conditions of the kachi abadi are beyond belief. The Karachi municipality has not been recycling garbage for the past months and a huge garbage dump is just next to the unkempt ‘homes’ under the bridge. The closed in space was causing the place to stink even more so as the air was dank and stale with no sunlight reaching the area even during the day. The small ‘stream’ is a black colored flow of effluent most probably carrying waste from factories and homes – the area was invaded by an awful smell – from the garbage, sewerage lines and of course the evil looking flow of water. Flies were like small pellets covering nearly every surface, swirling up and about like small whirlpools. And against this backdrop of extreme poverty – next door was the massive Imtiaz Super Store – thank you Globalization – just opened a month ago.

The area was full of private security – there to make sure that their customers had no trouble in accessing parking. There was a good stretch of area just in front of the abadi which would have a been a much better place for the abadi inhabitants to avail themselves of – but of course they knew very well that if they tried to sit there – they would be immediately removed. Such is the stinking class system of the ‘civilized’ society we live in. It is okay to live in rabid holes – for which these families pay bhata (bribe) to certain groups but not okay to live where they would get away from the stinking stream, the garbage, their children partially safe from falling into the polluted water. One woman mentioned that they were able get water from the nearby apartments but after Imtiaz Store has been operational – the store authorities have are not allowing them to carry water across.

In short, the working class of this country is constantly thrown from one end to another – all this because our feudal landlords have control over land and are living like the nawabs of the Mughal Dynasty – of course all thanks to the British Colonizers – our government in cahoots with the feudal landlords unwilling to carry out equitable land distribution; under the atrocious arm-twisting by the IMF and World Bank policies, our government is unwilling to stand with its people and provide them with decent, regular job security, social welfare and social security.

This short case study showcases how in Pakistan, climate change impacts come ‘searching’ for the people and communities so far away from flood areas; as has been constantly detailed by peoples groups and organizations: climate change is the manifestation of the exploitation of our resources by capitalist systems of production and results in the poor being the frontline victims.

This case study highlights the sick manifestations of all the oppressive production and reproduction system: feudalism, capitalism and patriarchy. It portrays not only the living conditions of this kachi abadi; it is the story of thousands of squatter settlements in Karachi as well as all mega cities of the third world. All over the world, the worsening conditions of the people, the living misery of our people is due to the life-draining clamp of the rich and the powerful class of feudal landlords and capitalist who are extracting every cent of profit that they can by taking control of land and other resources leaving the people to scrounge for each meal that they are lucky to access for the day.

There is no doubt that the answer lies in politicized, organized communities willing to fight for their rights to life, living and dignity!

DUTCH FIRM BUYS ENGRO FOODS FOR $450M

Dawn, July 5th, 2016

Karachi: Engro Corporation has finally entered into an agreement with a Netherlands-based dairy cooperative to sell up to 51 per cent shares in its subsidiary Engro Foods at an estimated cost of $448 million.

The transaction has been billed as the single largest private sector foreign direct investment (FDI) in Pakistan in recent years.

The Dutch acquirer FrieslandCampina said on Monday it would partner with the International Finance Corporation (IFC) and the Dutch development bank FMO in the share-purchase agreement (SPA).

Earlier on March 3, FrieslandCampina announced that it intended to acquire up to 51pc of voting shares of Engro Foods in line with local takeover laws.

Engro Corporation affirmed on Monday that it would remain a significant partner and shareholder under the new company structure.

Citibank, the financial adviser, said on Monday that FrieslandCampina planned to undertake acquisition directly and/or through a special-purpose vehicle (SPV). Subject to completion of public tender offer and relevant procedure under the law, IFC and FMO would acquire an equity interest in the SPV, resulting in FrieslandCampina holding around 80pc of SPV’s equity.

FrieslandCampina affirmed that it would make a tender offer to the remaining shareholders of Engro Foods from public shareholders. The actual number of shares purchased in the tender offer will be deducted from the number of shares acquired from Engro Corporation.

Analysts at Topline Securities said the sale price under the SPA has been agreed on a cash-free, debt-free basis with an enterprise value of $933m to be adjusted for certain items including debt-like items, cash and cash equivalents and working capital.

The sale price as of this announcement is estimated at around $448m (Rs120 per share). The final sale price will be calculated within 40 business days of closing after preparation of the closing statements. The analysts said that although the acquisition price of Rs120 per share was at 26pc discount to last closing, the discount was scarcely surprising for the market.

The sale is expected to result in a one-time cash flow impact of Rs90 per share (at deal price of Rs120 per share). “Engro Corporation will generate cash of around Rs47bn,” analysts calculated.

FrieslandCampina said in a statement on Monday that the acquisition of Engro Foods would enable it to obtain a key position in Central Asia. “Pakistan is the third-largest milk producing country in the world with an annual production of 38 billion litres of milk.”

The proposed buyer expects to benefit from the conversion of the market from loose to packaged dairy consumption that will drive the volume growth of packaged dairy products.

Hussain Dawood, the chairman of Engro Corporation, commented: “The partnership enables us to provide a wider array of affordable high-quality dairy products for a healthier Pakistan, especially of its younger population.”

http://www.dawn.com/news/1269078

 

A Small Farmer’s Advocacy for Agroecology!

The short documentary is witness to the knowledge of small farmers belief in traditional agriculture systems which are now being often referred to as agroecology.  In this documentary Rasheed Khan, a small farmer and a member of Pakistan Kissan Mazdoor Tehreek (PKMT) from Mansehra, Khyber Pakhtunkwa not only talks about the hardiness of crops grown from indigenous seeds but also ‘actively demonstrates’ their tenacity and deep roots in the ground. According to him, the stalk is also strong and even a buffalo would find it hard to take out the crop; whereas for hybrid varieties a simple pull would lift the crop off the ground.

Rasheed Khan has used oxen to prepare the land; according to him using a tractor cost him at least Rs 10,000 and he would much rather use his oxen than the tractor. He elaborates on the benefits of traditional sustainable agriculture practices which are based on the used of animal manure and traditional seed varieties. The corn flour is not only tasty but has much more energy than the hybrid varieties. Rasheed Khan states, “a roti made from the traditional corn varieties is as rich as eating butter.”  In addition, the traditional varieties are tall yielding plentiful fodder for animals which they relish; the milk also has a much better taste than when animals are fed with fodder from hybrid corn varieties.

Rasheed Khan has come back to traditional agricultural production practices after becoming a member of PKMT. According to him, people from the surrounding areas come and see him using traditional methods and he hopes that they will also convert once they understand the benefits.