3

4
TABLE OF CONTENTS
i. Executive Summary ………………………………………….……..………….6

1 Context and Background-----------------------.-------------------11

2 PROVINCIAL CONTEXT ANALYSES--------------------------------11

2.1 SHERANI DISTRICT BALOCHISTAN------------------------------------11

2.2 DIAMER GILGIT BALTISTAN --------------- ----------------.----------12
2.3 CHILTRAL DISTRICT KPK…………………………… …………………..........................13

3 CHILGOZA PROCESING UNIT COMPOSITION --------------------14

3.1 PRIMERY PROCESSOR AND GRADING PLANT--------------------- ------14

3.2 CHILGOZA HORVESTING TOOL KITS-----------------------------------15
3.3 FUEL EFFICIENT STOVES AND GASIFIERS -------------------------------15
3.4. OVER ALL IMPECTS OF VALUE CHAIN DEVELOPMENT --------------------16
3.5 CONSTRAINTS IN THE CHILGOZA NUTS VALUE CHAIN--------------------16
3.6. VALUE ADDITION IMPECTS ON FOREST RESTORATION INITIATIVES--------- 17

4 CONCLUSION AND RECOMMENDATIONS-------------------------18

TABLES AND GRAPHS ----------------------------------------------------7

GRAPH. 1. CAUSALITIES DURRING HARVESTING-ALL REGIONS----------------------7

TAB. 1. CHILGOZA PROCESSING UNIT PROGRESS 2021………………………….. …….........7
RAPH. 2. CHILGOZA PRODUCTION SHERANI BALOCHISTAN………………… ………………12
TAB. 2. CHILGOZA PROCESSING UNIT IN DISTRICT SHERANI………………….………...…….12
GRAPH. 3. YEAR WISE CHILGOZA PRODECTION IN DIAMER CHILLAS………………………..12

ANNEXURES ERROR! BOOKMARK NOT DEFINED.

ANNEX 1. MEDIA AND NEWS REPORT COVID-19 IMPACT CHILGOZA TRADE………...9

5
Executive Summary

The Food and Agriculture Organization of the UN is implementing a

project “Reversing deforestation and degradation in high conservation
value Chilgoza Pine Forests in Pakistan” in Sherani-Balochistan,
Chillas- Gilgit Baltistan and Chitral & South Waziristan – Khyber
Pakhtunkhwa. The proposed project is part of the “The Restoration
Initiative” (TRI), with the objective to improve the livelihoods through
increased productivity and enhanced services of the Chilgoza forest in
the country and the respective districts. The main thrust of the projects
is to strengthen regulatory, policy environment for integrated and
sustainable management of Chilgoza forest ecosystem,
implementation of Chilgoza forest landscape conservation, restoration
and value chain development at community level.

Unsustainable and severe cone collection, lack of value chain

mechanism; trade in combination with livestock grazing and fuelwood
collection has resulted in Chilgoza forest degradation and poor natural
regeneration. The long-term effects of overharvesting are that trees in
Chilgoza stands are on average getting older and that new cohort
conscription is poor. Most local communities understand that Chilgoza
forests are becoming degraded, however they have very little
knowledge on how to mitigate these negative trends in forest health.
Since most of the villagers and labors involved in pine nut harvesting
are illiterate, use outdated traditional hooks, having limited/no idea of
sustainable harvesting and regeneration.

The project has established a number of Forest Protection and

Conservation Committees (FPCCs) in the core valleys of all the project
sites where communities play participatory role in establishing grazing-
free enclosures to support Assisted Natural Regeneration (ANR),
provision of land for agroforestry, participation in agro/farm forestry
and adopted improved non timber forest products (NTFPs) value
chains practices. The project facilitated the communities in value chain
development, built their capacity of communities in sustainable
management and linkages development with markets.

Improving the capacity of stakeholders and decreasing the losses of

high value Chilgoza trees, the project has equipped the progressive
farmers of the project areas with improve harvesting tools, Chilgoza
cone cracking machines, Chilgoza processing units, fuel efficient stoves
and gasifiers to make the cone picking process easier and save trees
and branches from damages. Not limited to this, the project also
attempted to improve value chains and minimize human and property
losses mostly due to unsafe harvesting practices. A total of 300 set of

6
toolkits including high quality cone pruner, safety belts, helmet, gloves,
hard toe shoes, climbing spikes, cone pickers and gum remover waxes
were provided through the members of forest protection and
conservation committees (FPCCs). Portable water reservoirs (Geo-
membrane) sheets were also introduced in the water-deficient
harvesting areas. To enhance Chilgoza nut value, the communities
were enabled to increase their income and enhance livelihoods
alternate opportunities. So far, four processing units consisting of
grading, washing, drying, roasting and packing machines provided.
Moreover, 1000 fuel-efficient stoves and 200 gasifiers have also been
provided to introduce innovative stoves to increase energy efficiency
and to decrease fuel wood pressure on local forests.

The impact of harvesting tools is very clear in decreasing casualties

given in below Graph 1.

Causalities During Harvesting - All Region

7 7 8
66 6 7
5 6
4 4 5
4
2 2 22 2 2 3
1 1 1 11 1 2
0000 0 0 0 000 00 1
0
Deaths Injured Deaths Injured Deaths Injured Deaths Injured
Chillas SW Sherani Chitral

2021 2020 2019 2018

For the first time in history, the project introduced the Chilgoza
processing units in 2020 at Chillas and Sherani and processed 44.5 MT
in Chillas while15 MT in Sherani. Benefited communities by 82.5 million
PKR in Chillas while Sherani communities got an extra amount by 24.5
Million PKR; a notable contribution especially in the period of COVID-
19 Pandemic (where Chilgoza traders went bankrupt; news report).
Created additional job opportunities and prolonged Chilgoza trade
business up to 5 months. In 2021, the project installed two more
processing units in Sherani and Chitral. All the four units are functional
and processed the Chilgoza nuts as shown in the following table 1;

S. No. Processing Unit Province Total Kg processed

1 Sherani 1 Balochistan 30,736
2 Sherani 2 Surlaki Balochistan 9,136
3 Chitral KPK 7,200
4 Chillas Gilgit Baltistan 10,500
Total 57,572
The machines proved a good source to secure communities from major
decline in the prices of Chilgoza nuts in the COVID-19 scenario where
7
prices went historically low. This small intervention benefitted
communities in getting double prices. The processing machines not
only gave financial benefits to the communities, but also opened new
avenues of businesses, entrepreneurships, digital media marketing,
businesses through courier, prolonged the season (previously hardly 2
months now expanded upto 5 months) and communities earned
additional income. The Government of Balochistan province replicating
the same model while Khyber Pakhtunkhwa Government has intended
to scale up to other Chilgoza forests.

8
9
 1. CONTEXT AND BACKGROUND

Pakistan is the third largest producer of pine nuts in the world after
China and Russia. Due to its unique taste and fragrance, demand for
Pakistani pine nuts is increasing day by day in national and
international markets. This demand has been reflected in increase of
its exports in recent years. Main importers of Pakistani pine nuts are
China, Taiwan, US, UK, Scandinavian countries, Middle East and
European countries.

Chilgoza pine (Pinus geradiana) is an important high value tree

species, a unique product of the ecosystem of dry temperate forests,
regulating water flows and biodiversity conservation. These forests
play an important role by providing both ecological and
environmental services besides being a source of income to local
communities. Due to increase in population coupled with lack of
alternate livelihood opportunities, Chilgoza forests are under constant
pressure of anthropogenic interferences; livestock, medicinal plants
collection, fuel wood and timber. The Chilgoza ecosystem is also
subject to negative impacts of climate change.

Food and Agriculture Organization of the United Nations (FAO) under

its project “Reversing Deforestation in High Value Chilgoza Pine
forests in Pakistan“ aimed to strengthen regulatory and policy
environment for integrated and sustainable management,
implementation of Chilgoza forest landscapes conservation,
restoration and value chain development options at community level.
It also aimed to strengthen local institutions, knowledge, partnerships,
monitoring and assessment for Chilgoza forest ecosystems. The two
important aspects of the project are: restoration of the Chilgoza pine
ecosystem and value chain development. Under the second objective,
the project provided cone harvesting tools, and the Chilgoza
processing units to help improve the socio-economic condition of
local communities.

The present project has established two Chilgoza processing units –

one in Sherani district of Balochistan and one in Diamer district of
Gilgit-Baltistan with the aim to empower Chilgoza forest communities,
enhance their income by increasing shelf life of nuts, creation of
alternate job opportunities especially women, and involving local
communities in Chilgoza business, trade and local entrepreneurship.
Currently, two units have been established but due to the high
demand, four more units will be established at various locations in the
project area.

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The COVID-19 pandemic forced the global economy into its worst
recession since World War II. The full impact of health related
economic and social consequences is yet to be determined. The
Chilgoza nut producer ill prepared to absorb this major exogenous
shock, were also affected primarily due to reduction in the exports of
Chilgoza resulting in declining prices such it went as low as 1.70 million
PKR/ton (2020) as compared to 4.12 million PKR/ton in the preceding
year.

2. PROVINCIAL CONTEXT ANALYSIS

2.1 Sherani District, Balochistan

Suleiman Range contains the world’s largest pure stand of Chilgoza

(Pinus gerardiana) forests spread over 29,000 hectare. The natural
cycle of Chilgoza pine gives a good crop every third year. Despite its
economic importance, the only record of pine nuts produced in
Sherani relates to a survey carried out by WWF-Pakistan in 2012-13
where they mentioned total production as 130 metric tons worth 117
million Pakistani Rupees (PKR). FAO conducted the most recent
surveys from 2018 to 2020. The estimated production of Chilgoza
pine nut and its worth for 2018, 2019 and 2020 were recorded
respectively as 163.7, 643 and 675 MT of worth 390 and 2,650 and
1,147.5 million PKR (Graph 2).

Graph 2: Year Wise Chilgoza Production in Sherani, Balochistan

Chilgoza Production Sherani Balochistan

3000
2500
2650
2000

1721 1500
1000
1015.2 500
117 130 390 163.7 643 675 423
0
2013 2018 2019 2020 2021

Nuts Production (MT) Total Income Generated (M)

Sherani district of Balochistan produces 74% of the country pine

nuts. The raw nuts at origin has become a promising business in
Sherani because national and international buyers prefer high
quality nuts at source. The raw nut is the main commercial product
of the pine tree. In past, the traditional activity from harvesting up to
trading had been taking 30-50 days in a year. However, due to
provision of processing units this activity extended up to 180 days.

Being a good producer of world second most expensive nut

commodity, people of Sherani are still poor and lack job
11
opportunities. Due to lack of processing facilities in Balochistan, raw
nuts either exported in raw form or processed in Lahore and
Rawalpindi prior to export.

The FAO installed first ever Chilgoza processing unit in the region. In
the year 2020, 15 tons of Chilgoza was processed (Table 1) saving to
communities about 24.5 Million PKR and during 2021 processed 39.5
MT and benefitted 47.4 million PKR through using the unit: a notable
contribution especially in the period of Pandemic (Table 2).

Table 2: Progress of Chilgoza Processing Units in districts Sherani

Chilgoza Processing Unit Month Wise Progress

2020 Processed 2021 Processed Kgs,
S.No. Total
Kgs, Sherani 1 Sherani 2
1 15045 39,872 54,917

2.2. Diamer, Gilgit-Baltistan

In Diamer district of Gilgit-Baltistan (GB), the Chilgoza forests are

found in Hodure, Khanbery, Goharabad, Chilas, Darel, Tangir,
Botogaa, Thor, Khinar and Doshal, Gonar Farm, ThakNeyatBabosar
valleys. These forests are situated in remote areas of the valleys with
a total estimated area of 8,000 ha. These are community forests,
where overall management rests with the Forest department, while
the local get the major portion of the amount generated directly or
indirectly by these forests. The related local communities are the
beneficiaries of the produce.

Graph 3: Year Wise Chilgoza Production in Chillas Gilgit Baltistan

Chilgoza Production Chillas

300
227.25
150
120 40 50.5

2021 2020 2019

Nuts Production (MT) Total Income Generated (M)

FAO established Chilgoza processing unit comprising on (Grading,

washing, drying, roasting and packing) in Chillas city with a capacity
of 50 Kg/hour. The establishment of the processing and roasting unit
had a social impact in the region and even beyond, job creation,

12
poverty reduction, addressing the rural traditional phenomenon of
processing the nuts and strengthening the Diamer pine nut industry.

Due to the establishment of processing unit 44,132 kg (Table 1) has

been cleaned and graded as A, B, C and D for further sale at main
markets of Lahore, Islamabad or internationally in China. The rates of
the pine nuts are depending upon the grade, respectively upon A, B,
C and D.

The Chilgoza pine nuts plays a vital role in the local, national
economic development and has potential to meet the local needs
and export requirements since last five decades. Being a good cash
and pure organic commodity it has not yet gained industry status
because of remote location, lack of supporting infrastructure for this
industry in terms of electricity supply, road and telecommunication
network, and basic processing facilities. On the other hand, the
people were provided no skills training programmes in processing,
trading, preservation and marketing. However, the commodity
currently faces many challenges emanating from the poor
performance of the national economy, uncertainties that exist over
access to both local and foreign finances due to COVID 19, limited
research, limited technical advice, limited marketing information and
lack of reliable markets.

In 2020, the machines processed 44.5 and benefited people by extra

earning of 82.57 million PKR while in 2021 processed 10.5 MT while
benefited communities by 10.5 million PKR is serious pandemic
COVID-19. Moreover, season prolonged, physical work load
minimized and created alternate livelihoods than traditional.

2.3. Chitral District Khyber Pakhtunkhwa

Chitral district Chilgoza trees of different age classes are spread across
twenty-one (21) forest compartments. The Chilgoza forests provide a
variety of goods and services for the local, national and international
level. Locally, the Chilgoza forests provide timber, fuel wood, fodder,
non-timber forest products (Chilgoza nuts, medical plants,
mushrooms, and honey, bio--diversity), while at national level, the
forests absorb and regulate water flow downstream for drinking. With
local population increases there has been a corresponding increase
in the number of livestock which, without proper planning, has
resulted in the degradation of adjacent rangeland ecosystem.
Degraded pasture, the lack of livestock planning and available fodder
has also compromised the natural regeneration of Chilgoza forests
and impacted forest biodiversity.

13
The first ever processing unit installed to improve Chilgoza value
chain in Bamorate valley Chitral and processed 7.2 Mt while benefited
communities by extra revenue of 8.64 million and after value addition
price raised 1200 PKR per kilo gram.

3. CHILGOZA PROCESSING UNIT COMPOSITION

3.1. Primary Processor and Grading Plant:

This particular unit is used for cleaning and grading processes.

Cleaning Process: As shown in below picture raw Chilgoza nuts are

put on conveyor belt, which goes to processing unit and a powerful
exhaust fan extract all the impurities from load and all the waste
materials goes out via a funnel. Cleaned Chilgoza nut is pushed
towards vibrating screens for further processing.

Grading Process: In this unit four

vibrating screens of different sizes
are installed inside the main
body-frame equipped with Two 4 inOutl
Electric Vibrating Motor. Four Tre
outlet treys are provided, one
with each screen. Gradation of
Chilgoza is done and sent to Exhaust
dedicated basket as shown in
below picture. LoadiPoi
Washing Unit: This machine
washes up 20 kg batch of
Chilgoza in an electric driven horizontal drum, for this continues water
supply is needed for showering all the time.

Drying Unit: A spinner like vaporization drum is installed in static body

surrounded by heating elements. It takes 15 minutes to dry a 20 kg
batch of Chilgoza.

Roasting Unit: Three parallel

gas burners installed under Packing Washing Roasting
Drying
an electric driven horizontal
drum (Capacity 10-20 kg)
take 35 minutes to roast a
batch of Chilgoza.
Packing Units: This machine is capable of different size of vacuum packing
which minimize the moisture contents inside the packing.

3.2. Chilgoza Harvesting Toolkits

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Chilgoza pine forest ecosystem plays an important role in socio-
economic development of rural communities and the nearby cities.
The forests not only provide pine nuts as an economic commodity,
but also provide fuel wood, medicinal plants, pasture and shelter and
cover for livestock as well as wildlife beside other environmental
services. Chilgoza cones picking activity almost is being morally
practiced unsustainably in all forests. In Suleiman Range Balochistan,
cones of Chilgoza pine are commonly collected with a sharp hook
attached to the end of a long stick and in some areas, small axes are
also used. The old traditional pattern of cone collection mostly cut or
break off the meristematic tips and ends of branches in order to cut
down multiple cones. This type of incidental pruning can significantly
affect seasonal growth patterns and disturb the natural growth of the
tree. Due to high prices of Chilgoza nut, local villagers or contractors
from outside try their best to collect every single cone from the tree.
Cone collectors do not consider natural regeneration during
harvesting season and do not leave even a single cone on the tree
for seed dispersal. Heavy cone collection not only leads in the cutting
and thrashing of branches but ends in the crown and bark injuries
and discourage birds association with forest and may disturb
pollination process. The tree bark, wood, leaves and cones are
resinous and produce oleoresins. The unsafe climbing without
scientific equipment’s normally causes causalities every year.

Realizing these facts, the project team considered that sustainable

cone-harvesting equipment’s used around the globe. The project
team finally selected pruner with adjustable stick, saw and rope that
may increase time efficiency and reduce damages to branches during
cone collection. The value addition in pruning materials aim to prune
pinecones from branches instead of breaking branches with common
hooks. With this equipment, cones can be pruned and detached from
branches easily. Harvesting cones with pruners will definitely decrease
damages and injuries to the tree and human risks. The project has so
far provided 300 sets of tools consisting of helmets, gloves, safety
belts, boots, climbing spikes, geo membrane ponds, spreading
sheets. This is which exercise ensures the cone picker safety of the
workers life and provide ease in harvesting.

----------------------------------------------------

3.3. Fuel Efficient Stoves and Gasifiers

15
In order to reduce fuel wood pressure on local forest, improve
household hygiene, the project provided 1000 innovative fuel efficient
stoves and 200 gasifiers in all project sites. After year end, the impacts
will be recorded. So far, the people utilizing these tools felt
betterment in environment and wood consumption.

--------------------------------------------------------

3.4. Over All impact of Value Chain Development

Small-scale processing unit and value chain development played an

important role in Chilgoza nut business, awareness, season
prolonging, entrepreneurships activities, and innovative ideas of
selling nuts, digital media marketing and online trade of Chilgoza nuts
created new business ideas. Chilgoza nuts in these areas a potential
source of livelihood for many poor people in the forest. The overall
potential of Chilgoza processing is huge as it can:

 Increase the value of commodity of poor farmers and thus

yield higher returns;
 Expand marketing opportunities;
 Human health safety,
 Water facility during harvesting
 Improve livelihoods of people;
 Extend shelf-life of commodities;
 Improve palatability of commodities;
 Enhance food security; and
 Overcome seasonality and perishability constraints.

3.5. CONSTRAINTS IN THE CHILGOZA NUTS VALUE CHAINS

Pakistan and worlds trade is currently going through a critical

economic recession. In this scenario, it is necessary to develop
innovative strategies to support vulnerable Chilgoza forest owners
from further loss.

Chilgoza farmers face numerous constraints including:

 Poor harvesting equipment, low advances offered by dealers,

shortages and high cost of equipment and spares;
 Limited access to information from government extension
services;
 Limited access to appropriate packaging material for
processed products, lack of marketing skills;
 Inadequate support services from training institutions, private
sector consultants, small enterprise advisors, research
institutions and engineering workshops;

16
  Erratic supply and increased cost of fuel coupled with frequent
power cuts;
 Poor cash flow emanating from low volumes of raw materials
hence low income is realized from processing;
 High cost of processing equipment; and
 Limited capacity to mobilize capital for equipment purchase
and working capital.
---------------------------------------------------------

3.6. VALUE ADDITION IMPACTS ON FOREST RESTORATION

INITIATIVES

Chilgoza pine is among the most abundant tree species in the forests
of the four mentioned districts under axe due to rising national
demand for the pines for use in everything from furniture to makeup
pencils has led to rampant illegal logging. The communities according
to their own specific administrative and institutional structures
manage these resources. In Sherani Balochistan during the year 1990,
a paradigm shift occurred that breached the tribal management
system. As result, thousands of matured trees bowdlerized between
1990 until 2006. Due to no stake of Government, several attempts
have been made by conservationists and tribal elders to control the
illicit cutting and deforestation but later on the efforts successes. A
Chilgoza Forest Protection Committee (CFPC) established in Koh-e-
Suleiman area and all the communities accepted the set conditions of
the committee. The committee constituted to play facilitative role in
checking forest cutting, forests products distribution rights,
deforestation and thefts control. Latter on onward from 2018, the
prices of Chilgoza nut went high, played positive role in deforestation.
After inception of this project, 630 hectors came under protective
forests (ANR enclosure/ sites) and communities agreed to not graze
livestock in the enclosures and good no. of regeneration of Chilgoza
plants observed. In 2020 when prices went down due to COVID-19
pandemic, the machines did good jobs in each region and prevent
people again to bring Chilgoza under axe.

That is indeed the crux of the matter value chain and forest, finding a
path to coexistence for people and the forests they both need to
survive. Folk wisdom, international partnerships and modern science
are merging to protect forest and survival of forest linked to improve
incomes of the residents of the forests.

4. CONCLUSION AND RECOMMENDATIONS

Small- scale processing enterprises play a vital role in the national

economic development yet they do not receive due attention from
the government. There is a need to critically look at how equipment
17
manufacturers can be assisted in the manufacture of good quality
machines that are affordable to processors. Research could also
contribute by investigating how equipment production costs can be
reduced. Business viability should be enhanced by good training,
service back-up, attractive financial packages and strategic
equipment ownership arrangements. Training institutions and
extension services should develop business models that can be
adopted by entrepreneurs. Equipment manufacturers and processors
need to coordinate with farmer organizations and organize
themselves into a lobby group in order to alleviate the constraints
faced in the sector.

The machines provided by FAO collectively processed 60 Mt; brought

changes in high recession time of COVID 19 and enhances collectively
PKR 90 million to the vulnerable communities in both of the districts.

There is need to review the technology supply chain for a wide range
of commodity produced in the various pockets of the country. The
reviews help to identify chain constraints, which need addressing. The
dynamic nature of the processing industry necessitate frequent and
periodic reviews.

With initial support to small and medium scale entrepreneurs in

Chilgoza processing, the livelihoods of smallholder farmers can be
greatly enhanced through local value addition resulting in improved
incomes and diets as well as releasing farmers’ time for other activities
when motorized systems are introduced compared to the
conventional manual methods.

18