Ministry of Industry and Commerce Islamic Republic of Afghanistan AFGHANISTAN’S NATIONAL EXPORT STRATEGY 2018-2022 FRESH FRUITS AND VEGETABLES SECTOR Harvesting success in regional and global markets
Ministry ofIndustry and CommerceIslamic Republic of Afghanistan
AFGHANISTAN’SNATIONAL EXPORT STRATEGY 2018-2022
FRESH FRUITS AND VEGETABLES SECTORHarvesting success in regional and global markets
AFGH
ANISTAN
• NATIO
NAL EXPO
RT STRATEG
Y - FRESH FRUITS AND VEGETABLES SECTO
R • 2018-2022
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AFGHANISTANNATIONAL EXPORT STRATEGY2018-2022FRESH FRUITS AND VEGETABLES SECTOR
This project is funded by the European Union
Ministry ofIndustry and CommerceIslamic Republic of Afghanistan
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ACKNOWLEDGEMENTS
The Fresh Fruits and Vegetables Strategy forms an integral part of Afghanistan’s National Export Strategy. It was developed under the aegis of the Islamic Republic of Afghanistan, the leadership of the Ministry of Industry and Commerce ( MoIC ) and the Afghanistan Chamber of Commerce and Industries, in close collaboration with the Ministry of Agriculture, Irrigation and Livestock, the Afghanistan National Standards Authority and the Afghanistan Women Chamber of Commerce and Industry. The Strategy benefited from the contributions of sector stakeholders and associations, who played an important role in the consultative process. This Strategy was elaborated thanks to the technical assistance of the International Trade Centre ( ITC ) and falls under the framework of the European Union ( EU )-funded ‘Advancing Afghan Trade: EU Trade-Related Assistance’ project.
This document reflects the ambitions of the public and private stakeholders who defined the enhancements and future orientations for the sector for the purpose of increasing export performance and social dividends.
iv
NOTE TO THE READER
Afghanistan’s NES was developed based on a participatory approach during which over 500 Afghan industry leaders, small business owners, farmers and public sector representatives held consultations to reach consensus on key sector com-petitiveness issues and priority activities. These inclusive consultations were held throughout the country, including in Mazar-e-Sharif, Herat, Kandahar and Kabul, with participation of stakeholders coming from Nangarhar Province.
Besides in-depth research and value chain analysis, these consultations were com-plemented by:
� Factory visits through which supply chain assessments were carried out to gain further knowledge on key issues such as quality procedures, technical skills, lean management, quality of raw materials, access to market, etc.
� Interviews with domestic, regional and international buyers to guide the NES with strategic insights and market intelligence as well as buyers’ requirements in terms of quality standards, food safety, packaging, buying cycles, distribution channels, prices, etc.
� Donor coordination meetings to identify synergies with ongoing / planned ini-tiatives of development partners to eventually result in collaboration during the implementation phase.
In spirit and in action: The NES is aligned with existing national and sector-specific plans and policies and builds on ongoing initiatives in areas related to private sector development, regional integration, investment, and youth and women’s economic empowerment.
Equally important, the NES initiative already accommodates budgeting to support implementation of critical pilot activities identified during the design process. This will ensure that impact and momentum are generated from early on, and support further resource mobilization and confidence-building.
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The principal outputs of the NES Afghanistan design initiative are endorsed, coherent and comprehensive export Strategy documents with a five-year detailed plan of ac-tion ( PoA ) and implementation management framework. These documents include:
1. A main NES document, which contains Trade Support Functional strategies, offering critical support across value chains and acting as enablers for sector development.
2. Individual NES priority sector strategies packaged as separate documents but in alignment with the main NES findings and overarching strategic objectives.
NES Afghanistan
Main NES document comprising Trade Suppor t Functional Strategies:
� Quality management � Trade facilitation � Trade information and promotion � Skills development � Business and professional services � Access to finance
Individual NES priority sector documents:
� Saffron � Fresh fruits and vegetables � Dried fruits and nuts � Carpets � Marble and granite � Precious stones and jewellery
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CONTENTS
Acknowledgements iii
Note to the reader iv
EXECUTIVE SUMMARY 1
TRAJECTORY OF THE GLOBAL SUPPLY CHAIN AND ENTRY POINTS FOR AFGHAN EXPORTERS 5
PRODUCT MAP 5
HEALTHY OUTLOOK FOR THE GLOBAL FRESH FRUITS AND VEGETABLES INDUSTRY 6
EMERGING ECONOMIES ARE GAINING GROUND AS SUPPLIERS IN GLOBAL MARKETS 9
DEMAND HAS INCREASED IN ALL REGIONS, PARTICULARLY IN THE EUROPEAN AND ASIAN MARKETS 11
A closer look at demand in regional markets 12
Main regional importers of fresh fruits and vegetables 13
REGIONAL COMPETITORS POSE CHALLENGES IN BOTH DOMESTIC AND TARGET MARKETS 15
PEELING THE ONION : VALUE CHAIN ANALYSIS OF AFGHANISTAN’S FRESH FRUITS AND VEGETABLES SECTOR 19
CURRENT VALUE CHAIN AND OPERATIONS 19
Production of FFV 19
Processing of FFV 20
DISTRIBUTION 21
Domestic market 21
International market 21
MARKET DYNAMICS PROMOTE LOW PRICE RATHER THAN HIGH QUALITY 24
SUBSTANTIAL POSTHARVEST LOSSES AFFECT VOLUME AND CONSISTENCY OF PRODUCTION 24
LOGISTICAL CHALLENGES DELAY DELIVERY AND DEGRADE QUALITY 26
AFGHANISTAN’S CURRENT EXPORT PERFORMANCE 26
Survivability and sustainability of export relationships 27
AFGHANISTAN’S LEADING FRESH VARIETIES 30
Fresh fruits 30
Fresh vegetables 32
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‘MUSH’ ROOM FOR IMPROVEMENT : A SERIES OF CHALLENGES PREVENTING SECTOR GROWTH 33
Compete 33
Connect 37
Change 40
YIELDING BETTER RESULTS : POSITIONING AFGHANISTAN’S FRESH FRUITS AND VEGETABLES SECTOR IN THE GLOBAL MARKET 43
MARKET IDENTIFICATION 47
Short-term to medium-term phase 47
Long-term phase 50
STRATEGIC OPTIONS FOR THE AFGHAN FRESH FRUITS AND VEGETABLES SECTOR 53
VISION 53
Strategic objective 1 : Increase volumes of production and improve price competitiveness 53
Strategic objective 2 : Reduce postharvest losses across the value chain by addressing technical and non-technical issues 55
Strategic objective 3 : Add value by improving postharvest practices and processing capacities 57
Strategic objective 4 : Increase the sector’s capacity to enter and sustain relationships in domestic and international markets 59
MOVING TO ACTION 61
KEY REQUIREMENTS FOR EFFECTIVE IMPLEMENTATION 61
Establish and operationalize a public and private sector coordinating body and executive secretariat 61
STRATEGIC PLAN OF ACTION 63
REFERENCES 77
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FIGURES
Figure 1 : Fresh fruits and vegetables sector strategy – theory of change 3
Figure 2 : World exports of fresh fruits and vegetables, 2005–2016 ( US $ thousands ) 9
Figure 3 : Main trade partners of the largest world exporters 10
Figure 4 : Imports by world region, 2006 and 2016 ( US $ thousands ) 11
Figure 5 : Current value chain – fresh fruits in Afghanistan 22
Figure 6 : Current value chain – fresh vegetables in Afghanistan 23
Figure 7 : Technical and non-technical causes of postharvest losses in Afghanistan’s fresh fruit and vegetables sector 25
Figure 8 : Afghan exports of fresh fruits and vegetables, 2005–2016 ( US $ thousands ) 26
Figure 9 : Probability of export survival for Afghan fresh fruit and vegetable exporters, 2002–2016 27
Figure 10 : Market reach of Afghan fresh produce exports, 2006 28
Figure 11 : Market reach of Afghan fresh produce exports, 2016 28
Figure 12 : Afghanistan’s top 10 export destinations for fresh fruit and vegetables, 2008 ( US $ thousands ) 29
Figure 13 : Afghanistan’s top 10 export destinations for fresh fruit and vegetables, 2016 ( US $ thousands ) 29
Figure 14 : Afghanistan sector export basket, 2008 29
Figure 15 : Afghanistan sector export basket, 2016 29
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TABLES
Table 1 : Main world exporters of fresh fruits and vegetables 10
Table 2 : Reachable import markets’ imports 12
Table 3 : Reachable markets’ imports of fresh grapes 13
Table 4 : Reachable markets’ imports of apples 13
Table 5 : Reachable markets’ imports of melons and watermelons 14
Table 6 : Reachable markets’ imports of onions 14
Table 7 : Reachable markets’ imports of tomatoes 15
Table 8 : Afghanistan’s main import markets for fresh grapes 30
Table 9 : Afghanistan’s main import markets for fresh apples 30
Table 10 : Afghanistan’s main import markets for fresh melons and watermelons 31
Table 11 : Afghanistan’s main import markets for pomegranates 31
Table 12 : Afghanistan’s main import markets for tomatoes 32
Table 13 : Afghanistan’s main import markets for onions 32
Table 14 : Short-to-medium term market opportunities 48
Table 15 : Long-term market opportunities 50
BOXES
Box 1 : Health benefits of fruits and vegetables consumption 6
Box 2 : Powerful pomegranates : a rising super fruit 8
Box 3 : Implications for Afghanistan 8
Box 4 : Implications for Afghanistan 17
Box 5 : The role of women in the fresh fruits and vegetables sector 20
Box 6 : List of fruits and vegetables approved for the United States market 35
Photo: USAID, Farmers working in a field in Surkhrod district of Nangarhar, Afghanistan.
xi
ACRONYMS
The following abbreviations are used :
ACCI Afghanistan Chamber of Commerce and Industries
ANNGO Afghanistan National Nursery Growers’ Organization
ANSA Afghanistan National Standards Authority
ARIA Agricultural Research Institute of Afghanistan
EU European Union
FAO Food and Agriculture Organization of the United Nations
FFV Fresh fruits and vegetables
HS Harmonized System
ISPM International Standards For Phytosanitary Measures
ITC International Trade Centre
MAIL Ministry of Agriculture, Irrigation and Livestock
MoCI Ministry of Commerce and Industries
MoF Ministry of Finance
MoFA Ministry of Foreign Affairs
MoLSAMD Ministry of Labour, Social Affairs, Martyrs and Disabled
MSMEs Micro, small and medium-sized enterprises
NES National Export Strategy
PoA Plan of action
PPP Public–private partnership
R&D Research and development
SMEs Small and medium-sized enterprises
TVET Technical and vocational education and training
UAE United Arab Emirates
Photo: CC0 Creative Commons
[ EXECUTIVE SUMMARY ]
1
EXECUTIVE SUMMARY
Afghanistan is a fundamentally agrarian nation, with agricul-tural production serving as one of the pillars of the economy. Fresh fruits and vegetables ( FFV ) is perhaps the most sig-nificant sector among Afghanistan’s agricultural pursuits, in terms of providing an honourable livelihood to millions of Afghan farmers, ensuring household food security, sup-plying the raw inputs for the dried fruits sector, and keeping fruit and vegetable stalls across the country bursting with healthy, mouth-watering fresh produce.
Moreover, as certain crops offer high economic returns per hectare of land, the FFV sector has the potential to im-prove the economic conditions of producers, particularly smallholders. Considering the labour-intensive nature of fruit and vegetable production, the sector can also provide gainful employment to young men and women, and hence contribute to poverty alleviation.
Afghanistan possesses ideal climatic and soil conditions for the production of a wide array of FFV, including grapes, pomegranates and melons. Afghan farmers have a com-parative advantage over regional neighbours ; climates in South Asia are overwhelmingly hot and humid, with Central Asian states to the north experience short growing seasons due to cold temperatures. As a result, the FFV sector has opportunities to respond to unmet consumer demand to both its north and south.
Traditionally, FFV has represented a significant share of Afghanistan’s export basket. Fresh fruits also serve as a raw material for the production of Afghanistan’s wide array of dried fruit products. In spite of Afghanistan’s comparative advantages and its advantageous regional position, the FFV sector has been unable to reach its full potential. Analysis offered in this Strategy paper reveals productivity and cost-related disadvantages at the production level vis-à-vis re-gional competitors, weak capacities to meet quality and phytosanitary standards, and logistics challenges resulting from Afghanistan’s landlocked position. All of these factors are aggravated by a weak national cold chain infrastructure and lack of refrigerated trucks. As a consequence, Afghan exports of FFV remain overly dependent on the Pakistani market.
In the short-to-medium term, Afghanistan has the poten-tial to consolidate sector exports to markets in close geo-graphic proximity, such as India and the Russian Federation, as demand in these target markets continues to rise. The opening of air cargo facilities will strengthen Afghan traders’ links to the Indian market, and could even enable exports of FFV to other regional markets that are out of reach at present.
Increasing FFV exports is not simply a logistics puzzle ; Afghanistan faces increasingly fierce price competition in domestic and regional markets, where the Islamic Republic of Iran and Pakistan are direct competitors. In the short term, Afghanistan should focus on regaining price competitive-ness and expanding into regional markets, predominantly with products that have a medium-to-long shelf life, such as grapes, apples and onions.
In the long term, taking into consideration high trans-port costs and the perishability of produce, Afghanistan should prioritize efforts to export high-value crops – par-ticularly products with a high-value / low-weight ratio – as a strategy to penetrate global markets. Afghanistan produces crops which hold the potential to reach high-end markets in European countries, such as premium varieties of grapes, pomegranates and mushrooms. However, Afghanistan must first ensure quality and volume of production, as well as im-prove food safety compliance, to meet standards in highly regulated developed markets.
In support of the Afghan FFV sector, this document aims to serve three purposes :
� Inform stakeholders of recent market trends � Outline the present status of the sector and its challenges � Provide a realistic strategy and PoA.
This Strategy is driven by the following overall vision :
“ Afghan fresh fruits and vegetables : harvesting success in regional
and global market ”To achieve this vision, the Strategy focuses on four strategic objectives.
Strategic objective 1 : Increase the volume of production and improve price competitiveness.
This strategic objective aims to increase volumes of produc-tion, gain cost efficiencies through economies of scale, and consequently improve price competiveness at the regional level.
On the inputs side, the Strategy will seek to improve the availability of domestically produced fertilizers and pesti-cides, because importing them leads to higher production costs and hence less price competitiveness ( particularly vis-à-vis regional competitors ). Moreover, measures to
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[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
strengthen sector horizontal and vertical coordination will be critical to aggregating and increasing volumes of produc-tion. Additionally, associations will receive technical support to organize their operations collectively, for example, through capacity-building in bulk marketing and collective transport.
Specific measures related to commercial farming and smallholders are evaluated as a part of this strategic ob-jective. Activities to support the expansion of commercial orchards will be implemented in parallel with measures to in-crease smallholders’ productivity. This will be accomplished through training on cultivation best practices in farmer field schools across the country, as well as increasing access to working capital for producers.
Finally, investment in research and development ( R&D ) will be encouraged in several areas, such as improvement of crop varieties and methods to extend the production sea-son. Results of any trials and / or pilot initiatives will be dis-seminated to sector stakeholders.
Strategic objective 2 : Reduce postharvest losses across the value chain by addressing technical and non-technical issues.
As well as challenges related to low productivity and low volumes of production, the sector suffers severe postharvest losses. At the technical level, the Strategy will seek to im-prove the knowledge and implementation of best practices at the different stages of the value chain to increase quality and minimize spoilage of fresh produce by using the existing cold chain infrastructure. At the non-technical level, activities will be geared towards encouraging investment in cold chain infrastructure, including refrigerated trucks.
Strategic objective 3 : Add value by improving postharvest practices and processing capacities.
This strategic objective will add value to sector outputs through packaging and other forms of value addition. One area of focus will be improving quality and food safety as-surance for sector products. Another critical goal will be to increase domestic capacity to provide high-quality pack-aging products and services, as packaging materials are mainly imported and expensive.
This strategic objective also seeks to increase domes-tic capacity to add value through processing activities, predominantly by substituting imported juices and tomato pastes ( among other products ) with domestically produced versions. To accomplish this goal, the Strategy will look at ways to build a pool of Afghan workers with expertise in food processing ( with a focus on fruit and vegetable processing ).
Strategic objective 4 : Increase the sector’s capacity to enter and sustain relationships in domestic and international markets.
This strategic objective seeks to establish new links with in-ternational markets in order to diminish dependence on the Pakistani market. To achieve this objective, the Strategy will build the capacity of Afghan Government officials in inter-national trade. Another area of focus is market intelligence : how to collect information on key markets systematically and disseminate it to sector stakeholders ( including small-holders ) effectively. Once key markets have been identified, sector enterprises need support to connect to and build relationships with international buyers. The construction of cold storage facilities in key regional markets such as India and the United Arab Emirates ( UAE ) could be one means to support this objective.
Logistics is one component of this objective, while mar-keting and branding are others. Marketing activities must be pursued in order to build a national brand for Afghan FFV in regional and international markets. At present, Afghan FFV have little global visibility ( if any ), while bulk quantities of Afghan produce flow into the Pakistani market with no pack-aging or branding. The overarching goal is to ensure that if someone is eating an Afghan grape ( or any other type of fruit or vegetable ) somewhere in the world, they know that it is a product of Afghanistan.
Figure 1 captures the FFV sector vision and strategic objec-tives.
Photo: EPAA pictures, IMG_0509.JPG
[ EXECUTIVE SUMMARY ]
3
Figure 1 : Fresh fruits and vegetables sector strategy – theory of change
Compete
Vision
‘Afghan fresh fruits and vegetables: harvesting success in regional and
global markets’
1. Increase volumes of production and improve price competitiveness
3. Add value by improving postharvest practices and
processing capacities
2. Reduce postharvest losses across the value chain by addressing technical and
non- technical issues
4. Increase the sector’s capacity to enter and sustain relationships in domestic and
international markets
Increase volumes of production and exports
Decrease postharvest
losses
Optimize time of entry in key
markets
Progressively upgrade the
quality of production
Add value through
packaging and processing activities
Prioritize positioning of
high-value crops in
international markets
A sector poorly connected internationally and struggling to regain competitiveness in domestic and international markets
IMPA
CTST
RATE
GIC
OBJE
CTIV
ESSI
TUAT
ION
ANAL
YSIS
STRA
TEGI
C TH
RUST
SIM
PACT
• Limited domestic availability of critical inputs
• Low productivity and low volumes of production
• Severe postharvest losses• Poor capacity to meet
international safety and quality standards
Connect
• Poor logistics and trade-related infrastructure
• Uncertainty, delays and irregularities in Customs and border procedures
• Inadequate and insufficient packaging services
• Underdeveloped marketing and branding
• Weak market intelligence provision
• Weak coordination among sector stakeholders
Change
• Weak access to working and investment capital
• Limited availability of skilled workers
• Poor investment in R&D• Women are underserved by
support services providers
A sector capable of connecting and competing better, in both quality and price, in existing and new markets
Photo: EPAA
[ TRAJECTORY OF THE GLOBAL SUPPLY CHAIN AND ENTRY POINTS FOR AFGHAN EXPORTERS ]
5
TRAJECTORY OF THE GLOBAL SUPPLY CHAIN AND ENTRY POINTS
FOR AFGHAN EXPORTERS
PRODUCT MAP
The FFV sector comprises a wide array of products, which allows for a broad spectrum of applications in both fresh and processed form.
Fresh fruits and vegetablessector
Processed food industry (e.g.
canned, dried,juice, jams)
Unprocessed fresh fruits and
vegetables
Fresh-cut fruits and vegetables
Fresh produce industry
Within the food industry, FFV are sold unprocessed, fresh-cut and as raw material for the processed food industry.
Fresh produce industry
The global fresh food market is a vast industry, which is estimated to grow to 2.4 billion tons by 2021 at an annual growth rate of over 3 % during the forecast period. Within the fresh produce industry, fruits and vegetables are sold to consumers in unprocessed, raw form, without having un-dergone any thermal processing or preservation. In some
cases, minimal value addition is undertaken in the form of peeling, halving, wedging, slicing and trimming.
Processed food industry
The processed food industry encompasses all businesses which alter FFV to create a value added food product for consumption. These products tend to have significantly longer shelf lives than FFV. Primary product categories in this industry include canned fruits and vegetables, juices, jams, and frozen fruits and vegetables.
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HEALTHY OUTLOOK FOR THE GLOBAL FRESH FRUITS AND VEGETABLES INDUSTRY
Global production of fruits and vegetables has experienced sustained growth over the past few years. According to the Food and Agriculture Organization of the United Nations ( FAO ), worldwide production of fruits stood at roughly 965 million tons in 2013, while production of vegetables totalled approximately 1.39 billion tons in the same year. Production growth is largely driven by increases in cultivated land in Asia, particularly China, the world’s largest producer of FFV.
On the demand side, growth in consumption is driven by several factors, including the rise of vegetarianism, substan-tial increases in income and rising urbanization in developing
countries. Income growth and urbanization are correlated with higher rates of fruit and vegetable consumption, which indicates a positive future for the sector as cities grow and incomes rise in many highly populated developing countries.
Demand is also driven by better access to information about healthy eating habits, in addition to campaigns by international and national organizations to promote the con-sumption of FFV. Fresh fruits are the second most common global snack, while vegetables are the third. In the African and Middle Eastern regional markets, consumers rank fresh fruit as their first choice among snack items.
Box 1 : Health benefits of fruits and vegetables consumption
Fruits and vegetables are considered foundational components of a healthy diet, with a recommended minimum daily intake of 400 grams ( excluding potatoes and other starchy tubers ) to help prevent micronutrient deficiencies. According to the World Health Organization International Agency for Research on
Cancer, consumption of fruits and vegetables may lower the risk of contracting cancer. Considering the positive attributes of fruits and vegetables, the FAO and World Health Organization have col-laborated to lead a global initiative to promote the consumption of fruits and vegetables for health.
Source : FAO.
With advancements in logistics and cold storage technol-ogy, the sale of FFV is becoming more globalized. Key dy-namics and trends within the industry are explained below.
Several factors determine prices and influence global trade
A natural trade obstacle in this sector is perishability. Perishability of fresh produce can limit its transport over long distances, although this depends on the shelf life of particu-lar crops. Perishability of the crop and the availability ( or lack thereof ) of cold storage facilities consequently play a ma-jor role in determining trading partners and how goods are delivered to markets. Certain fruits, such as bananas and citrus products, have longer shelf lives and can therefore be shipped by cost-effective sea freight. Other premium-priced fruits can be transported by expensive air freight while still remaining profitable.
In the case of landlocked countries such as Afghanistan, the costs incurred in cross-border FFV trade can have a sig-nificant negative impact on export volumes. Particularly for highly perishable fresh produce, delays at border crossings can undermine trade by increasing transportation costs. This, in turn, leads to higher prices in the market and less
competitiveness. In the worst case scenario, transport and Customs delays can lead to partial or even full loss of ship-ments due to spoilage.
Weather conditions can have a significant impact on the supply side in terms of the volume, quality and availability of farm outputs. This impacts the FFV sector in two ways : ex-treme weather conditions affecting farm yields, and chang-ing seasons that dictate when and where each crop can be cultivated and harvested. Droughts can devastate harvests for years, while heavy rain and / or snowfall can result in crop damage. The seasonality of crops is a driver for counter-season trade between southern and northern hemisphere countries. In the last several decades, improvements in production methods and advances in transport have con-tributed to smoothing out global prices for FFV throughout the year. These advances in technology have also allowed FFV to be shipped to destinations far from the point of origin while still maintaining product quality.
At the demand level, prices are influenced by a variety of elements, including variety, size, brand and ‘organic’ certification ( among other factors ). Demand for competing products, seasonality of supply and changes in consumer preferences also influence prices.
[ TRAJECTORY OF THE GLOBAL SUPPLY CHAIN AND ENTRY POINTS FOR AFGHAN EXPORTERS ]
7
Significant technology improvements, R&D and innovation are shaping production
Significant investments in R&D are flowing into the FFV sector. Specialized plant breeding companies are constantly developing new fruit and vegetable varieties, with the ob-jective of improving crop resistance to pests and diseases, obtaining higher yields and enhancing quality and taste.
Proliferation of food safety and quality standards requirements, leading to increased vertical coordination
The global FFV supply chain is increasingly buyer-driven, in which buyers determine certain conditions or requirements for fresh produce. As a consequence of the proliferation of food safety and quality standards, there is greater interest in food supply chains and the traceability of raw materials. This has led to an increase in vertical coordination, i.e. ac-tors along the value chain maintaining closer communica-tion and, whenever possible, synchronizing their activities to maximize gains for all parties.
Transparency and traceability requirements in the supply chain will remain high
One of the main global trends for the sector is the increasing consumer demand for transparency and authenticity when it comes to the fresh produce they are buying. Advances in technology and access to information enable greater trans-parency in terms of where and how produce was cultivated and processed. Common information required is place and date of harvesting, production methods and level of adherence to sustainability principles. To satisfy consumer demand for this information, new tools are now available to improve supply chain transparency, from QR codes to traceability apps for smartphones.
While demand for differentiated products is increasing among importers, exposure to branding is still limited for consumers
Compared with other sectors, the FFV sector has limited branding opportunities ( the world-famous ‘Chiquita banana’ being a rare exception ). Nevertheless, retailers in developed markets are increasing their demand for differentiated prod-ucts. In the case of fresh produce, this can entail a particular type of packaging, supplying a premium variety or comply-ing with a specific production certification system, such as fair trade or organic production.
Functional and intelligent packaging to extend the life of fresh products
Packaging not only serves as a marketing tool but also plays a critical role extending shelf life and maintaining the quality and freshness of products : innovations in packaging are continuous, with remarkable contemporary breakthroughs already influencing the industry. Innovation in packaging is
expected to continue, ranging from higher development and use of bio-packaging materials to the inclusion of even more specific sensors to measure real-time shelf life. Additionally, convenience is a key factor to consider for packaging of fresh products, as lifestyles are becoming faster-paced. Consumers increasingly demand food in suitably portioned ‘grab and go’ sizes as snacks. Tailored portions such as do-it-yourself fresh packs ( selected ingredients to complete a recipe ) are also becoming more popular.
Digitalization is also reaching the fresh produce market through new distribution channels
In large markets such as the UAE, European countries, and particularly China, online sales of FFV are expected to in-crease. Although selling fresh produce online is challenging for businesses, large firms and even digital platforms out-side the sector are investing in developing their e-commerce services and making deliveries, particularly in cities with concentrations of high-income consumers. Massive tech-nology companies such as Google and Amazon are already offering these services to consumers in joint ventures with grocery partners such as Whole Foods.
Increased interest of consumers in ‘super fruits’
There is increasing global interest in so-called ‘super fruits’, an informal label for fruits that have significant potential to benefit health owing to their high content of vitamins, an-tioxidants, polyphenols and other beneficial nutrients. An increasingly popular ‘super fruit’ is the pomegranate, which grows widely in southern Afghanistan. Although consump-tion of ‘super fruits’ is on the rise, this type of fruit is mostly purchased by relatively wealthy consumer groups and spe-cialized import companies.
Photo: EPAA pictures, IMG_1325.JPG
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[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
Box 2 : Powerful pomegranates : a rising super fruit
Pomegranates are considered super fruits because they have several health-related attributes. Pomegranates are packed with antioxidants, with almost three times the total antioxidants present
in green tea. Health benefits associated with pomegranates in-clude a boost in resistance to viruses and tumours, in addition to being an excellent source of vitamins and folic acid.
The popularity of organic FFV products will remain high
Important markets for certified ‘organic’ products are Switzerland, Germany and France, among other developed markets. The organic market is still considered a niche, al-though it is expected to grow in the future. Consumption of organic products is driven by health benefits as well as better taste. Notably, demand for organic produce in the European market often exceeds supply, which creates
opportunities to find buyers and profit from better margins. Nevertheless, European regulations for organic produce can be challenging for agricultural enterprises in developing countries. As for super fruits, the organic market is of par-ticular importance within the high-end market. Accordingly, premium prices are paid for exotic, high-quality organic fruits and vegetables that are valued both for their taste as well as the wholesome narrative attached to the product.
Box 3 : Implications for Afghanistan
• The position of Afghanistan can improve, particularly at the regional level, as the number of middle- and high-income consumers continues growing in emerging neighbouring economies.
• Packaging is crucial for Afghanistan, not only for marketing but also to extend the shelf life of fresh produce.
• Investments in R&D and technological improvements are oc-curring in all regions. Emphasis on obtaining higher yields and optimizing the use of water should be the focus of technology investments in Afghan fruits and vegetables production.
• As food safety and quality standards requirements become more important for more markets each day, Afghan exporters will need to improve their ability to meet these requirements in order to diversify their export destinations.
• New sourcing strategies, such as joint ventures with interna-tional buyers, should be considered and incentivized.
• Afghan exporters can benefit from the rising popularity of certain fruits – such as pomegranates – by promoting their health benefits through marketing.
• The niche organic market is expected to grow in the future, as organic products are increasingly appealing to high-income consumers. Many Afghan FFV would likely qualify to be certi-fied ‘organic’ if the administrative capacity existed for them to undergo the rigorous certification process. Nonetheless, it should be noted that it requires 2–3 years to obtain organic certification, in addition to targeted financial investment.
[ TRAJECTORY OF THE GLOBAL SUPPLY CHAIN AND ENTRY POINTS FOR AFGHAN EXPORTERS ]
9
EMERGING ECONOMIES ARE GAINING GROUND AS SUPPLIERS IN GLOBAL MARKETS
Figure 2 : World exports of fresh fruits and vegetables, 2005–2016 ( US $ thousands )
90.000.000
80.000.000
70.000.000
60.000.000
50.000.000
40.000.000
30.000.000
20.000.000
10.000.000
-
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Source : ITC.
Worldwide, exports of FFV exceeded US $ 76 billion in 2016, almost double their value in 2006 ( US $ 43 billion ). This de-velopment reflects a greater awareness of the health ben-efits of FFV consumption among consumers, as well as an increase in demand from developing countries.
In terms of global leaders in the export of FFV, Spain is at the top. Spain possesses a sunny, warm climate, which is suitable for the cultivation of a wide range of produce. Spain accounted for 14 % of world exports in 2016, worth US $ 10.8 billion. The Netherlands is the second-largest exporter of FFV, with 2016 exports reaching US $ 7 billion and represent-ing 9.25 % of global exports in the sector. The Netherlands is itself a modest producer and primarily serves as a re-export hub in the European region. The third-largest exporter of FFV is the United States of America, which actually experi-enced negative average annual growth between 2012 and 2016. The United States recorded an export value of US $ 6.6 billion in 2016 : 8.6 % of global exports for the sector.
Right behind the leaders from developed markets are China and Mexico, two emerging economies with steadily increasing global export share. Between 2012 and 2016, China’s FFV exports grew at an annual average of 11.90 %, with Mexico’s FFV exports growing by 9.04 % during the same period. Italy, France and Belgium are other large European exporters of FFV after Spain, with global export
shares of 5.36 %, 3.32 % and 2.54 % respectively. At the bot-tom of the leader board for FFV exports are South Africa and New Zealand.
Photo: EPAA pictures, IMG_1675.JPG
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Table 1 : Main world exporters of fresh fruits and vegetables
Exporters Exported value in 2016 ( US $ thousands ) Annual growth 2012–2016 ( % ) Share in world imports ( % )
Spain 10 763 828 1.24 14.06
Netherlands 7 077 683 -1.58 9.25
United States 6 615 307 -1.17 8.64
China 6 334 139 11.90 8.28
Mexico 6 195 858 9.04 8.09
Italy 4 106 362 -0.78 5.36
Chile 3 652 153 2.09 4.77
France 2 542 074 -1.51 3.32
South Africa 2 205 638 2.92 2.88
Belgium 1 946 316 1.17 2.54
New Zealand 1 894 507 9.97 2.48
Source : ITC.
The forces driving global trade of FFV vary largely by prod-uct, and it is therefore difficult to make generalizations. Although interregional trade has increased over the years, leading suppliers of fresh produce still tend to export to mar-kets in close proximity. This can be explained, in part, by the perishable nature of fresh produce and the existence of regional trade agreements.
Spain mainly ships its products to other European mar-kets, namely Germany, France, the United Kingdom of Great Britain and Northern Ireland, the Netherlands and Italy. Similarly, the Netherlands has buyers in Germany, the United Kingdom, Belgium, France and Norway. The Netherlands is notably a direct importer of fruits and vegetables from de-veloping countries for re-export within the European region. Over 50 % of America’s exports of FFV go to neighbour-ing Canada, and 8.8 % go to neighbouring Mexico. China primarily exports FFV to Viet Nam, Thailand, Hong Kong ( China ), the Russian Federation and Malaysia. The fifth-largest global exporter, Mexico, mainly ships to the United States, which accounts for a whopping 97.6 % of Mexican fresh produce exports.
Figure 3 : Main trade partners of the largest world exporters
SpainUS$10.8 billion
• Germany 27%• France 16.8%• UK 14.2%• Netherlands 8.2%• Italy 5.2%
NetherlandsUS$7.1 billion
• Germany 37.3%• UK 12.9%• Belgium 6.9%• France 4.8%• Norway 3.6%
United StatesUS$6.6 billion
• Canada 53.8%• Mexico 8.8%• Rep. of Korea 5.3%• Japan 4.9%• Chinese Taipei 4.4%
ChinaUS$6.3 billion
• Vietnam 18.8%• Thailand 15.6%• Hong Kong (China) 14.8%• Russian Fed 8.6%• Malaysia 8.5%
MexicoUS$6.2 billion
• United States 97.6%• Guatema 0.7%• Canada 0.5%• Japan 0.3%• UK 0.1%
Source : ITC.
Photo: EPAA pictures, IMG_2374.JPG
[ TRAJECTORY OF THE GLOBAL SUPPLY CHAIN AND ENTRY POINTS FOR AFGHAN EXPORTERS ]
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DEMAND HAS INCREASED IN ALL REGIONS, PARTICULARLY IN THE EUROPEAN AND ASIAN MARKETS
Consumption of FFV increased in all regions of the world over the last decade. The fastest growth occurred in Asia, where imports have almost quadrupled since 2006. American demand for fresh produce has almost dou-bled within the past 10 years, with imports of FFV top-ping US $ 20.5 billion in 2016. As a regional bloc, Europe
consistently recorded the highest demand for fresh pro-duce between 2006 and 2016, with imports reaching US $ 32.5 billion in 2016. An emerging market for the fresh produce sector is the Middle East, where imports of FFV reached US $ 4.8 billion in 2016, four times what they were in 2006.
Figure 4 : Imports by world region, 2006 and 2016 ( US $ thousands )
45.000.000
40.000.000
35.000.000
30.000.000
25.000.000
20.000.000
15.000.000
10.000.000
5.000.000
-Europe
Imported value in 2006 Imported value in 2016
Asia Americas MiddleEast
Africa Oceania
Source : ITC.
Global trade of FFV is dominated by three main regions : Europe, North America and Asia. Traditionally, trade of FFV has been predominately intraregional, although this is less and less the case with each passing day. A wide array of factors contribute to the expansion of fresh produce trade outside of regional blocs, such as an increased number of trade agreements, as well as better technology which has enabled shipments of produce to markets that were previ-ously unreachable due to the perishability of produce.
In the not so distant past, the offerings in the fresh pro-duce section of American and European grocery stores were dictated by the seasonality of crops. Now grocery stores in developed markets offer a full selection of FFV year-round thanks to advancements in greenhouse technology as well as imports from the southern hemisphere ( which experienc-es summer while the United States and Europe are in the middle of winter ). Demand for tropical fruits, particularly ba-nanas, has contributed to a substantial increase in the vol-ume and variety of fruits and vegetables traded worldwide.
Photo: Fruits & Vegetables, FOX20234.jpg
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[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
A CLOSER LOOK AT DEMAND IN REGIONAL MARKETSConsidering Afghanistan’s deficiencies in transport capac-ity and cold chain infrastructure, and its landlocked posi-tion in Central Asia, markets in close geographic proximity hold the most significant opportunities for increasing ex-ports in the short and medium terms. These target markets are the Middle East,1 South Asian Association for Regional Cooperation countries,2 Central Asian Republics,3 greater China,4 the Russian Federation and Belarus.
The Russian Federation accounts for almost 4 % of glob-al exports of FFV. Imports of fresh produce to the Russian Federation have decreased since 2012, predominantly be-cause of the Russian ban on imports of produce originat-ing from the EU and Turkey. Roughly 19 % of the Russian Federation’s fresh produce imports are citrus fruits, which are difficult to grow in the country due to unsuitable climate conditions. Tomatoes are the second most imported fresh produce product, accounting for 15 % of the Russian fresh produce import basket. Fresh apples, oranges, grapes and pears are also imported in significant volumes.
In contrast with the Russian Federation, China’s imports of FFV are growing in value. Imports have increased at an average annual rate of 11.97 % over the past five years, reaching a total import value of US $ 3 billion in 2016. Strong economic and population growth is responsible for this positive trend. The main product imported by China for this sector is cherries, representing 26 % of total fresh produce imports. Pomegranates, grapes, kiwifruit, apples and plums also represent a significant portion of China’s import bas-ket of fresh produce. China has little need to import fresh
1.– Bahrain, Egypt, the Islamic Republic of Iran, Iraq, Jordan, Kuwait, Lebanon, Oman, the State of Palestine, Qatar, Saudi Arabia, Syria, Turkey, UAE, Yemen.2.– Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka.3.– Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan.4.– Mainland China, Hong Kong ( China ), Macau, Chinese Taipei.
vegetables, which are produced locally in sufficient quanti-ties to satisfy domestic demand.
Hong Kong ( China ) is another target market for Afghan fresh produce, and serves as a major re-export hub in Asia. Hong Kong ( China ) imported US $ 2 billion of FFV in 2016, including US $ 0.5 billion in cherries alone. Most of these cherries ( estimated to be around 65 % ) end up being re-exported to mainland China. After cherries, Hong Kong ( China )’s second-largest import is grapes, accounting for 22 % of total imports. Other notable imports include orang-es, apples and pomegranates. Similarly to mainland China, Hong Kong ( China ) predominantly imports fruits rather than vegetables.
Belarus, located north of Ukraine in Eastern Europe, is a hot market for FFV. Average annual growth in imports of fresh produce to Belarus increased at a remarkable average annual rate of 46.12 % between 2012 and 2016. This demand is driven by rapid economic growth after a period of financial distress that ended in 2000 and an EU ban on imports of Russian agricultural products, which has converted Belarus into a – temporary – major entry point to the EU market for FFV. Belarus imported US $ 1.3 billion in FFV in 2016.
Other markets of interest are located in the Middle East, including the UAE, Saudi Arabia, Kuwait and Egypt. All of these countries are experiencing stable growth in fresh pro-duce imports due to increases in population. In East Asia, Chinese Taipei is an enticing destination : imports of FFV increased by an average annual rate of 12.53 % between 2012 and 2016. In South Asia, the Indian market offers sig-nificant opportunities as a destination for fresh produce, with an impressive average annual growth rate of 9.98 % between 2012 and 2016.
Looking at this list, it is apparent that Afghanistan has considerable options when it comes to high-growth destina-tion markets for FFV. The main challenge is getting Afghan produce to these target markets with minimal spoilage, re-lying on ground and sea transport and being subjected to procedures at multiple border control points.
Table 2 : Reachable import markets’ imports
Reachable import markets Imported value in 2016 ( US $ thousands ) Annual growth 2012–2016 ( % ) Share of world exports ( % )
Russian Federation 3 193 724 -15.25 3.93
China 3 152 151 11.97 3.88
Hong Kong ( China ) 2 057 114 7.82 2.53
Belarus 1 253 651 46.12 1.54
UAE 1 188 789 2.64 1.46
Saudi Arabia 1 120 530 6.49 1.38
Chinese Taipei 793 621 12.53 0.98
Kuwait 475 661 9.32 0.59
Egypt 393 029 8.72 0.48
India 356 102 9.98 0.44
Source : ITC.
[ TRAJECTORY OF THE GLOBAL SUPPLY CHAIN AND ENTRY POINTS FOR AFGHAN EXPORTERS ]
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MAIN REGIONAL IMPORTERS OF FRESH FRUITS AND VEGETABLES
Fresh grapes
Grapes are the single largest export for Afghanistan across all sectors. In terms of the previously identified target mar-kets, China is the largest importer of grapes, with US $ 630 million in imports in 2016. Chinese demand for grapes has increased at an average annual rate of 3 % over the past five years. At present, the Chinese are predominantly im-porting grapes from Chile, Peru and Australia, all of whom benefit from easy access to sea shipping. These three coun-tries have increased their production and improved their
positioning by entering the market at times of low supply and high prices.
Hong Kong ( China ) is the second-largest importer of fresh grapes among the target markets. Growth in demand from Hong Kong ( China ) exceeded even that of mainland China, with 13 % average annual growth in grape imports be-tween 2012 and 2016. With US $ 460 million in grape imports, Hong Kong ( China ) accounts for 5 % of the global import share. The Russian Federation and the UAE are other coun-tries experiencing high growth rates in terms of demand for grapes. Belarus is another target market for Afghan grapes, with US $ 96 million in grape imports in 2016. However, de-mand for grapes in Belarus declined rapidly between 2012 and 2016.
Table 3 : Reachable markets’ imports of fresh grapes
Fresh grapes
Reachable importersImported value in 2016 ( US $
thousands )Annual growth
2012–2016 ( % )Share of world imports ( % )
China 629 772 3 7
Hong Kong ( China ) 459 945 13 5
Russian Federation 184 646 6 2
Belarus 95 637 -23 1
UAE 84 833 49 1
Source : ITC.
Fresh apples
Apples are an important export product for the Afghan FFV sector. Among the target markets identified earlier in this section, the Russian Federation imports the largest quan-tity of apples. Overall, the Russian Federation accounts for 5 % of all global imports of apples, with US $ 370 million in imports in 2016. Since 2012, though, Russian demand for apples has decreased at an average annual rate of 17 %. Egypt is another significant importer of apples among the
target markets, with imports reaching US $ 329 million in 2016. Egypt has seen demand for apples grow over the last five years, at an average annual rate of 9 %. One of the target markets with the fastest growth in demand for ap-ples is Belarus, with average annual growth of 47 % between 2012 and 2016. In 2016, apple imports to Belarus reached US $ 309 million. Chinese Taipei and India are also worth mentioning as target destination markets for apples, holding world import shares of 4 % and 3 %, respectively.
Table 4 : Reachable markets’ imports of apples
Fresh apples
Reachable importersImported value in 2016 ( US $
thousands )Annual growth
2012–2016 ( % )Share of world imports ( % )
Russian Federation 370 430 -17 5
Egypt 329 147 9 4
Belarus 308 582 47 4
Chinese Taipei 274 745 14 4
India 237 800 5 3
Source : ITC.
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[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
Melons ( melons and watermelons )
Middle Eastern countries such as the UAE and Kuwait are important export destinations for melons ( both mel-ons and watermelons ). The UAE recorded US $ 43.7 mil-lion in melon imports in 2016, with Kuwait importing US $ 30.9 million the same year. Both markets have seen negative growth in melon imports since 2012. China is the second-largest melon importer among the target markets, with imports valued at US $ 32.8 million in 2016.
Demand from China is decreasing, though, with negative average annual growth of 15 % over the past five years. Hong Kong ( China ) is the fourth-largest melon importer on the target list, with average annual growth increas-ing at a rate of 7 % between 2012 and 2016. Imports of melons to Hong Kong ( China ) stood at US $ 25 million in 2016. The Russian Federation is another notable melon importer to Afghanistan’s north, although demand has de-creased at an average annual rate of 13 % over the last five years.
Table 5 : Reachable markets’ imports of melons and watermelons
Melons ( melons and watermelons )
Importers Imported value in 2016 ( US $ thousands ) Annual growth 2012–2016 ( % ) Share of world imports ( % )
UAE 43 712 -1 1
China 32 806 -15 1
Kuwait 30 951 -2 1
Hong Kong ( China ) 24 993 7 1
Russian Federation 14 850 -13 0
Source : ITC.
Other fruits ( including pomegranates )
Pomegranates are grouped into an ‘other’ Harmonized System ( HS ) code ( 081090 ). Therefore, official import statistics specific to pomegranates are not available. The best-consolidated market for pomegranates worldwide is the European market. However, demand in Asia and the Middle East ( particularly the UAE ), is slowly growing, thanks to greater consumption of both unprocessed pomegranates and pomegranate juice. Asian demand for pomegranates is concentrated largely in Hong Kong ( China ), Indonesia, India ( also a large producer ), Malaysia and Japan, due to increas-ing awareness of the health benefits of this ‘super fruit’.5
5.– Prospectiva 2020 ( 2015 ). World Pomegranate Market : Supply, Demand and Forecast.
Onions
Saudi Arabia is the largest importer of onions among the target markets, with a 5 % share of global onion imports. The volume of Saudi onion imports has increased at an average annual rate of 7 % since 2012. After Saudi Arabia, the UAE is the second-largest importer of onions in the region, with imports valued at US $ 76 million, representing 2 % of world import share. Bangladesh is another target market with high growth in onion imports. Bangladeshi imports of onions in-creased at an average annual rate of 43 % between 2012 and 2016. In 2016, Bangladesh imported US $ 58 million of onions. The Russian Federation and Sri Lanka are two ad-ditional large importers of onions among the target markets. While Russian onion imports declined at an average annual rate of 15 % over the last five years, imports to Sri Lanka increased by 14 % during the same period.
Table 6 : Reachable markets’ imports of onions
Onions
Reachable importers Imported value in 2016 ( US $ ) Annual growth 2012–2016 ( % ) Share of world imports ( % )
Saudi Arabia 149 649 7 5
UAE 75 740 5 2
Bangladesh 58 114 43 2
Russian Federation 56 111 -15 2
Sri Lanka 55 614 14 2
Source : ITC.
[ TRAJECTORY OF THE GLOBAL SUPPLY CHAIN AND ENTRY POINTS FOR AFGHAN EXPORTERS ]
15
Tomatoes
The Russian Federation accounts for 38 % of global imports of tomatoes, although this figure may decline in the future considering the negative growth in demand. Belarus, on the other hand, is a fast-growing export destination for to-matoes, with average annual growth in imports of 51 % be-tween 2012 and 2016. Total Belarusian imports of tomatoes hit US $ 217 million in 2016. The UAE, Pakistan and Saudi Arabia are other high-potential target export destinations for Afghan tomatoes, as all of these countries have been expe-riencing positive average annual import growth rates over the last five years. Their shares of global tomato imports are 10 %, 9 % and 8 % respectively.
Table 7 : Reachable markets’ imports of tomatoes
Tomatoes
Reachable importers Imported value in 2016 ( US $ ) Annual growth 2012–2016 ( % ) Share of world imports ( % )
Russian Federation 490 582 -14 38
Belarus 216 831 51 17
UAE 124 869 6 10
Pakistan 120 746 1 9
Saudi Arabia 99 394 9 8
Source : ITC.
REGIONAL COMPETITORS POSE CHALLENGES IN BOTH DOMESTIC AND TARGET MARKETS
Islamic Republic of Iran
Due to similar climate conditions, the Islamic Republic of Iran and Afghanistan have a similar export basket when it comes to FFV. Further heightening competition, both countries harvest each competing crop at the same time of the year, while also looking for buyers in the same target markets within the region. With total fresh produce exports valued at US $ 225 million, the Islamic Republic of Iran is a significant player in the global FFV market, with global and regional clout likely to increase in the future. Impressively, Iranian exports of fresh produce have doubled in the past 10 years. The Islamic Republic of Iran has over 50 million hectares of land suitable for agriculture, with low prices of FFV achieved through both industrial-scale farming and cur-rency depreciation.
The main Iranian export destinations in 2016 were the Russian Federation ( US $ 157 million ), Kuwait ( US $ 22 million ), Pakistan ( US $ 8 million ) and Oman ( US $ 8 million ). The most
significant Iranian fresh produce exports were cucumbers ( US $ 65 million ), kiwifruit ( US $ 56 million ), watermelons ( US $ 19 million ), grapes ( US $ 14 million ) and apples ( US $ 13 million ).
The Islamic Republic of Iran exported US $ 14 million of fresh grapes to world markets in 2016. The largest importer of Iranian grapes was the Russian Federation ( US $ 12 mil-lion ) followed by Pakistan ( US $ 1.7 million ). Although Afghan grapes are still much higher in value than Iranian grapes, the latter are continuously gaining market share in Pakistan, having gained price competitiveness, and pose a threat to Afghan grape exports in this market in the future.
The Islamic Republic of Iran is also a leading exporter of pomegranates. Both Afghanistan and the Islamic Republic of Iran export pomegranates to Pakistan, although Iranian exports to this market are larger. Similarly to exports of grapes, the Islamic Republic of Iran is slowly increasing its share of pomegranate exports to Pakistan. When it comes to Iranian apples, again, the main export destination mar-ket is Pakistan, with an export value of US $ 6 million. In this
Photo: Fruits & Vegetables, FOX20192.jpg
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[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
product category, Afghanistan severely outperforms its neighbour to the west, with US $ 26 million in apple exports to Pakistan in 2016.
However, the Islamic Republic of Iran is better positioned than Afghanistan to export processed fruits and vegeta-bles, having invested considerable resources in advanced processing technology. Afghanistan is a major importer of Iranian fruit juices, tomato paste and pickled vegetables, for example. Domestically produced Afghan processed foods are simply not able to compete with their Iranian competitors on quality, and often Afghan products cannot even beat their Iranian counterparts on price.
Enabling factors Deterring factors
• Growth in production and exports of fresh produce
• Suitable climate for cultivation of FFV• Growth in the processed food sector• Competitiveness partly based on currency
depreciation
• Threat of renewed sanctions
• Political instabil-ity negatively affecting export stability
• Absence of a NES
Turkey
Turkey reported total FFV exports valued at US $ 1.5 billion in 2016, almost double its exported value in 2006. However, droughts and other negative climate conditions have af-fected Turkey’s agricultural production. In response, the Turkish Government implemented policies to support the agricultural sector, which have yielded positive results and higher fresh produce exports. Turkish Government support has taken the form of organic farming policies, certification of seeds and seedlings, investment incentives, agricultural credits and other measures.
In 2016, the top export destinations for Turkey’s fresh produce were Iraq ( US $ 279 million ), the Russian Federation ( US $ 234 million ), Germany ( US $ 170 million ), Ukraine ( US $ 115 million ) and Belarus ( US $ 105 million ). The main Turkish export varieties were mandarins ( US $ 322 million ), tomatoes ( US $ 240 million ), cherries ( US $ 182.5 million ), or-anges ( US $ 180 million ) and grapes ( US $ 104 million ).
Tomatoes are one of the most important products for both the Turkish and Afghan fresh produce export basket. Top ex-port destinations for Turkish tomatoes were Belarus ( US $ 42 million ), Iraq ( US $ 32 million ) and Saudi Arabia ( US $ 27 mil-lion ). Turkey is the main supplier of tomatoes to the Belarusian market, with Afghanistan far behind in export volumes.
Turkish and Afghan grapes also compete in the Belarusian market, although Afghan traders lag far behind their Turkish counterparts. In 2016, Turkey exported US $ 26 million in grapes to Belarus, while Afghan traders supplied a mere US $ 716,000 in the same year.
Turkey is the third-largest exporter of ‘other fruits’ ( the HS category that includes pomegranates ) with exports val-ued at US $ 104 million in 2016. Belarus is the main Turkish destination for this category in the region. Afghanistan only recently accessed the Belarusian market, with significantly smaller export volumes.
Enabling factors Deterring factors
• Great diversification in exported varieties and export destinations
• Strong, established ties with buyers in export destinations
• Stable, high volume of supply• Support schemes through the
Government to boost exports in the agricultural sector
• Unstable quality ( has had shipments rejected in Western markets due to unsafe levels of pesticides and / or insecticides )
Pakistan
Pakistan exported US $ 213 million of FFV in 2016. Despite security issues and an energy crisis, the fresh produce sec-tor has shown impressive growth over the past 10 years, with total exports for the sector tripling in value. The signifi-cant increase in export volume can be attributed to several factors, including stricter policies regulating produce quality, as well as increasing price competitiveness.
Pakistan’s main export destination for fresh produce in 2016 was the Russian Federation ( US $ 87 million ), followed by Indonesia ( US $ 20 million ), Sri Lanka ( US $ 19 million ), Saudi Arabia ( US $ 15.5 million ) and Malaysia ( US $ 13.5 mil-lion ). A 2005 free trade agreement between Pakistan and Sri Lanka grants Pakistan preferential market access in the form of tariff concessions. Malaysia is an important export destination for Pakistan, especially for vegetables. Again, a preferential trade agreement bolstered Pakistani exports in the sector, as a result of the 2008 Malaysia–Pakistan Closer Economic Partnership Agreement. Middle Eastern countries – namely Saudi Arabia, Kuwait ( US $ 9 million ), Bahrain ( US $ 8 million ) and Oman ( US $ 5 million ) – are all rapidly increasing their demand. Pakistani FFV exporters have also built trade ties with Central Asian countries such as Kazakhstan ( importing US $ 12 million of Pakistani fresh produce in 2016 ).
More than half of Pakistani exports of fresh produce are mandarins, which grow exceptionally well in Pakistan’s warm and dry climate. Potatoes are the second most ex-ported product for the sector, representing about a quarter of Pakistan’s fresh produce export basket. Onions, ‘other fruits’ ( which includes pomegranates ), mushrooms, oranges and melons fill out the rest of Pakistan’s fresh produce ex-port basket.
Due to smuggling along the Afghan-Pakistani border, it is likely that a large amount of Afghan fresh produce entering Pakistan is undocumented. When it comes to potatoes and onions, Pakistan is likely acting partially as a re-exporter, bolstering exports of its own domestically cultivated yields with cheap ( and often smuggled ) Afghan produce. Pakistan is consequently able to be a major supplier of these prod-ucts to its trade partners in the Middle East and South Asia.
Pakistan and Afghanistan compete on the Belarusian market in the mushroom trade. According to reported ex-port data, Pakistan supplied Belarus with US $ 1.7 million in mushrooms in 2016, with Afghanistan leading its neighbour with exports of US $ 2 million in the same year. For both
[ TRAJECTORY OF THE GLOBAL SUPPLY CHAIN AND ENTRY POINTS FOR AFGHAN EXPORTERS ]
17
countries, Belarus is the only export destination for mush-rooms, creating dependence on this market.
Enabling factors Deterring factors
• Established export network for FFV• Re-exporting hub for Afghan fresh
vegetables• Free trade agreements with Sri Lanka
and Malaysia benefit exports of fresh produce
• Diversified export destinations• Diversified export basket of FFV• Effort of Government to improve quality
of exported FFV• Price competitive
• Security issues negatively affect exports
• Energy crisis• Unfavourable exchange
rate fluctuation• Dominance of Afghanistan
in fresh fruit exports
India
As with Pakistan, Indian exports of FFV have nearly tripled in value over the past 10 years. In 2016, total fresh produce ex-ports out of India verged on US $ 1 billion, reaching US $ 992 million. India’s main export destinations for fresh produce in 2016 were the UAE ( US $ 181 million ), the Netherlands ( US $ 102 million ), Malaysia ( US $ 84 million ), Bangladesh ( US $ 81 million ) and Nepal ( US $ 70 million ). Onions were the most valuable product within the Indian FFV export basket, with 2016 exports standing at US $ 382 million. Other notable Indian fresh produce exports include grapes ( US $ 219 mil-lion ), other fruits including pomegranates ( US $ 81 million ), tomatoes ( US $ 59 million ) and potatoes ( US $ 59 million ).
Nearly all Indian tomato exports were destined for Pakistan ( 99 % ), with India responsible for 70 % of all Pakistani tomato imports. India and Afghanistan are therefore in direct competition when it comes to sup-plying Pakistan with tomatoes. While it may appear that Afghanistan is being sorely outperformed by India in this market, undocumented ( i.e. smuggled ) tomatoes cross-ing the Afghan-Pakistani border may make the competition closer than it appears in available data.
Enabling factors Deterring factors
• Suitable climate for FFV cultivation• High production volumes• Large variety of products in the sector• Proximity to countries with rapid
economic and population growth
• Growing domestic demand may stunt export volumes
• Lack of technological advancement in harvesting and an underdeveloped supply chain
China
In 2016, China was the fourth-largest exporter of FFV world-wide. For this sector alone, total exports in 2016 reached US $ 6 billion. Chinese exports of fresh produce have expe-rienced phenomenal growth in the past 10 years, with total value increasing by a factor of five. South Asian countries – including Japan and the Republic of Korea – accounted for much of that volume, with the Russian Federation another major destination market.
The Kazakh market was also an important export des-tination for both Afghanistan and China, although again Afghan exporters were wildly outperformed. China ex-ported US $ 140 million of fresh produce to Kazakhstan in 2016, with Afghan exports nowhere close ( US $ 39,000 in the same year ).
Afghanistan directly competes against China in the Indian market, although Afghan trade volume is dwarfed by that of China ( US $ 4 million in 2016 from Afghanistan compared with US $ 122 million from China ). Over 70 % of China’s exports of FFV to India were fresh apples, although India also receives shipments of Chinese pears and grapes. China is the main supplier of fresh grapes for India, and the third-largest supplier in the world after the United States and Peru.
Enabling factors Deterring factors
• High production volumes• Continuous growth in sector exports• One of the most powerful suppliers of FFV
in the South Asian region
• Increasing domestic demand may slow growth in sector exports
• Poor reputation for quality
Box 4 : Implications for Afghanistan
• Considering Afghanistan’s landlocked geography, weak logis-tics capacity and deficient transport infrastructure, markets in proximity are crucial for sector exports.
• Although Afghanistan remains highly competitive in the export of grapes, other products such as potatoes and tomatoes ( and tomato-based products ) face increasing price competition from neighbouring countries such as the Islamic Republic of Iran and Pakistan.
• Time of entry is a crucial factor to be considered by Afghan exporters, particularly for achieving higher profit margins. Delaying sales of fresh produce requires strong cold storage capacity, which Afghanistan lacks at the moment.
• Policies by competitor countries aiming to support fresh produce production and exports should be examined and, if relevant, adapted to the Afghan context.
Source: ITC
[ PEELING THE ONION : VALUE CHAIN ANALYSIS OF AFGHANISTAN’S FRESH FRUITS AND VEGETABLES SECTOR ]
19
PEELING THE ONION : VALUE CHAIN ANALYSIS OF AFGHANISTAN’S
FRESH FRUITS AND VEGETABLES SECTOR
CURRENT VALUE CHAIN AND OPERATIONS
PRODUCTION OF FFV
Afghanistan has very few large-scale fruit producers. Key actors are smallholders growing fruits in their own family orchards. The same holds true for the production of vegeta-bles. Farmers usually contract the sale of their crop before harvesting, based on an estimate of the upcoming yield. This practice is necessary for farmers with limited savings, as buyers will often make advance payments to farmers in order to finalize the deal. Few independent farmers have the available cash and transportation resources to take their produce to market themselves, and instead negotiate for optimal prices.
Afghanistan’s most dominant fresh fruit product is grapes, followed by apples and apricots. All three of these fruits are cultivated throughout the country. Cherries are grown in Kabul Province, while citrus fruits flourish in the warmer weather of southern Afghanistan, particularly in the south-eastern provinces of Kunar, Laghman and Nangarhar. Pomegranates are harvested in the southern part of the country, while melons are cultivated in abundance in the northern provinces of Farah, Jawzjan, Faryab, Baghlan and Samangan.
Production of vegetables largely takes place in the prov-inces of Parwan, Kapisa, Nangarhar, Bamyan and Balkh. Tomatoes are grown in plentiful quantities around the north-ern provincial capital of Mazar-e-Sharif, while potato cultiva-tion is concentrated in the provinces of Bamyan, Nangarhar, Panjshir, Parwan, Samangan, Sar-e Pol, Takhar, Uruzgan and Wardak. Onions grow exceptionally well in the warmer climes of Paktia, Herat and Kandahar.
Fresh fruits generally garner higher prices on the market than their dried counterparts. Consequently, farmers and traders focus on pushing most of their fresh fruit stock into the fresh produce market. Approximately 75 % of total farm
production is currently sold on the fresh market, while ex-cess supply is designated for drying or consumed privately. Due to damage and spoilage resulting from rough ground trips in lorries with no refrigeration capacity, an inordinate quantity of fresh produce is lost to spoilage, with much of the remainder losing value due to damage.
The main production inputs needed to cultivate FFV are list-ed below, with a note about their availability in Afghanistan :
� Seeds : high-quality seeds are usually imported ( domes-tic seeds lack quality consistency ) ;
� Fruit tree saplings : some farmers prefer imported sap-lings over domestic saplings, as domestic varieties some-times carry diseases or have other undesirable qualities ;
� Arable land : abundant supply available, although much arable land is unused or underutilized ;
� Row planters : crucial for some vegetable varieties, with limited use at present ;
� Water : scarce in some areas of the country, with irriga-tion systems underdeveloped in many agricultural com-munities ;
� Fertilizers : the majority are imported, with fragmented distribution systems ;
� Pesticides : primarily imported, costly and consequently difficult to access ;
� Labour : abundant unskilled workers, with a limited pool of skilled agricultural experts ;
� Sulphur : used to enhance growth of fruit trees, difficult to access.
20
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
Several inputs that could improve the quality and volume of yields are either not used due to lack of knowledge about their application or are difficult to access due to limited availability. Producers rely heavily on imports of seeds and fruit tree saplings, as the supply of domestically produced saplings is insufficient to meet local demand. Production
is largely undertaken using outdated cultivation methods, which are inefficient and achieve low yields. This can be attributed to limited access to modern machinery, agri-cultural extension services and high-quality inputs, which prevents smallholders from adopting high-tech production methods.
Box 5 : The role of women in the fresh fruits and vegetables sector
Women play a major role in Afghanistan’s agriculture sector. Approximately two-thirds of the female labour force works in this sector at some level. Occupational and vertical segregation is persistent in the country ; women are mostly at the lower levels of the value chain, performing manual labour such as weeding, harvesting and postharvest sorting. Few women own land or have control over the crops they tend. Males dominate most trade-related activities ( e.g. purchasing inputs and negotiating sales of produce ).
Women often manage small orchards and vegetable gardens, either at their homes or at jointly managed smallholdings. Depending on the region, women are able to participate as day labourers picking fruit at their own family farm and neighbouring farms, as well as sorting produce in their homes. Although men negotiate the major bulk sales of produce, in certain regions – such as Badakshan, Baghlan, Daykundi and Bamyan – women do sell vegetables at the market.
PROCESSING OF FFV
Only well-connected farmers sell their FFV directly to lo-cal consumers without the produce passing through any other value chain steps. Fresh fruits are usually stored in a traditional Kishmish Khana ( literally meaning ‘raisin house’ in Persian ), a storage facility to which farmers bring their produce until it is transported to processing facilities or markets farther afield. Regional traders collect FFV either from the Kishmish Khana or directly from smallholders, with non-refrigerated trucks used to move produce from point to point. Only a handful of refrigerated, modern 10-ton trucks are available in Afghanistan.
Traders are responsible for organizing the collected har-vest, employing drivers for collection, and packaging pro-duce for transportation. After the produce is collected from rural smallholders and aggregated at storage points, trad-ers pass on the fresh produce to domestic value addition facilities, where fruits and vegetables are cleaned, graded, sorted and packed. The scarcity of adequate packaging material and crude packing methods lead to excess dam-age during subsequent transport. A small portion of fresh produce yields are sold to domestic food processing enter-prises that produce dried fruits, fruit juices, jams, pickled vegetables, snack foods and other items.
Photo: Fruits & Vegetables, FOX25892.jpg
[ PEELING THE ONION : VALUE CHAIN ANALYSIS OF AFGHANISTAN’S FRESH FRUITS AND VEGETABLES SECTOR ]
21
DISTRIBUTION
After the processing stage, small and large wholesale hubs ( Mandvi ) serve as collection points for produce in every major urban centre. Afghanistan’s six major urban cen-tres – Kabul, Khost, Mazar-e-Sharif, Herat, Jalalabad and Kandahar – all have Mandvi markets for every type of fresh produce product. Local retailers and export traders will visit the Mandvi in each major city to examine produce and make purchases.
DOMESTIC MARKET
Local retailers in villages and urban centres have several op-tions for stocking up on fresh produce ; they can pick up pro-duce from the closest Mandvi, buy directly from smallholders or make purchases from the closest Kishmish Khana. Fresh fruits popular among Afghan consumers include domesti-cally produced grapes, apricots, apples, almonds, pome-granates, citrus fruits, melons, cherries and plums. Popular fresh vegetables include carrots, cauliflower, cucumbers, eggplants, okra, onions, garlic, peppers and potatoes. The higher the quality of FFV, the higher the price on the do-mestic market.
INTERNATIONAL MARKET
Fresh fruits
Export traders procure their fresh fruits from local farmers, retailers and Mandvi wholesale hubs. They consolidate pro-duce, arrange packaging ( or do it themselves ), and gen-erally sell in bulk quantities to international markets. In the last several years, a limited but growing number of Afghan exporters have developed the capacity to package produce in retail-ready plastic containers. Profit margins vary from product to product but estimates are that grape exports to Pakistan achieve a profit margin of 4 %–16 %.
The main export destinations for Afghan fresh fruits in 2016 were Pakistan ( 91 % of total fruit exports ) and Belarus ( 5.3 % of total exports ). Significantly lower amounts were exported to India, France, Senegal, Kazakhstan, Bahrain and Canada in 2016. In the same year, Afghanistan’s pri-mary export product ( across all sectors ) was grapes, with US $ 72.5 million in export value. The main export destina-tions for Afghan fresh grapes were Pakistan ( US $ 71.5 mil-lion ), Belarus ( US $ 716,000 ) and India ( US $ 133,000 ). Fresh apples were the second most valuable sector export for Afghan traders, with a total export value of US $ 29 million in 2016. As with fresh grapes, the greatest share went to Pakistan ( US $ 18 million ), followed by India ( US $ 1.4 million ), Belarus ( US $ 203,000 ) and Kazakhstan ( US $ 39,000 ). Fresh
melons generated US $ 3.6 million in export sales, while wa-termelons earned Afghan exporters US $ 3 million. The main destinations for melons ( of all types ) were Pakistan, India and Bahrain.
Fresh vegetables
The main export destinations for Afghan vegetables were Pakistan ( 90 % of total vegetable exports ), and Belarus ( 10 % ). Less significant export volumes were shipped to India, Switzerland and France. Tomatoes, with an export-ed value of US $ 17 million, were the top vegetable export from Afghanistan. Of the US $ 17 million in tomato exports in 2016, US $ 16.5 million was generated in sales to Pakistan. After Pakistan, Belarus received US $ 668,000 of tomatoes in 2016. When it comes to onion exports, Pakistan was again the primary destination market, with US $ 8.4 million in imports of Afghan onions in 2016. India was the second-largest destination market for Afghan onions, with a mere US $ 32,000 in export volume. Other top high-value exports include US $ 2.3 million of cucumbers exported to Pakistan, and US $ 2 million of mushrooms sold to Belarus. Potatoes are also an important export from Afghanistan. However, based on desk research and consultations, the reported exported value of potatoes likely underestimates the total value of exports.
Photo: Fruits & Vegetables, FOX25890.jpg
22
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
Figure 5 : Current value chain – fresh fruits in Afghanistan
Fert
ilizer
s
Kish
mis
hKh
ana
for
dryi
ng /
stor
ing
Labo
ur fo
rce
Lim
ited
liter
acy
(abu
ndan
t) /
skills
(sca
rce)
Bags
/ pa
ckag
ing
(e.g
. woo
den
boxe
s
Natio
nal c
ompo
nent
Mix
ed c
ompo
nent
Larg
e fr
uit p
rodu
cers
Inte
rnat
iona
l com
pone
nt
Cutti
ng a
nd h
arve
stin
g eq
uipm
ent
Plan
ting
mat
eria
l
Smal
l far
mer
s
Hom
e ga
rden
ers
• M
ixed
tree
gar
den
with
2-5
tre
es•
Effo
rt: n
othi
ng b
eyon
d irr
igat
ion
Casu
al F
arm
ers
• Fo
cus
on fr
uits
, but
not
fin
anci
ally
com
itted
• Co
mm
ited
field
s
Frui
t far
mer
s (c
omm
erci
al
orch
ards
)•
Focu
s on
and
inve
st in
frui
ts•
Com
mite
d fie
lds,
tim
e an
d
mon
ey fo
r agr
icul
tura
l inp
uts
Regi
ons
Grap
es: G
row
n ev
eryw
here
in
cou
ntry
(Gha
zni h
as b
ette
r re
gula
tion
for p
rodu
ct)
Appl
es: T
akha
r, Ba
dakh
shan
, Ba
mya
n, P
arw
an, P
anjs
her,
Kabu
l, Lo
gar,
Bam
yan,
Gh
azni
, Pak
tia, W
arda
kAp
ricot
s: B
alkh
, Bam
yan,
Pa
rwan
, May
dan,
War
dak,
Lo
gar,
Kabu
l, Na
ngah
ar,
Panj
shir,
Gha
zni,
Zabu
l, Ka
ndah
arCh
errie
s: A
roun
d Ka
bul
Citru
s: K
unar
, Lag
hman
, Na
ngar
har
Pom
egra
nate
s: S
outh
ern
Afgh
anis
tan
Mel
ons:
Far
ah, J
awzja
n,
Fary
ab
Regi
onal
trad
ers
Non-
re
frige
rate
d tra
nspo
rt,
resp
onsi
ble
for
orga
nizin
g th
e ha
rves
t, em
ploy
ing
labo
urer
s,
pack
agin
g, e
tc.
Mid
dlem
en
and
villa
ge
leve
l tra
ders
Each
mov
ing
prod
uct s
hort
di
stan
ces.
Coop
erat
ion
with
tran
spor
t un
ions
Furt
her v
alue
add
ition
fo
r pro
cess
ed fr
uit
Cust
oms
offic
e
Fore
ign
reta
ilers
Dom
estic
Val
ue A
dditi
onSm
all a
nd
larg
e w
hole
sale
rs(M
andv
i)M
ain
mar
kets
; Ka
bul,
Maz
ar-e
- Sh
arif,
Kho
st,
Hera
t, Ja
lala
bad
and
Kand
ahar
Loca
l Re
taile
rs
Valu
e ad
ditio
n by
man
ually
cl
eani
ng
prod
uct t
o re
mov
e pa
ckag
ing
stra
w, d
ust
and
ston
es
Sim
ple
clea
ning
faci
litie
s
Grad
ing
faci
litie
s
Sort
ing
faci
litie
s
Pack
agin
g fa
cilit
ies
Info
rmal
mar
ket
Form
al m
arke
t
Dom
estic
ally
co
nsum
ed fr
esh
frui
ts•
Grap
es•
Apric
ots
• Ap
ples
• Po
meg
rana
tes
• Ci
trus
• Ch
errie
s•
Plum
s
Inte
rnat
iona
l mar
ket
Inpu
t sup
ply
Expo
rt tr
ader
s•
Mar
gin
4-16
% fo
r gr
apes
exp
orte
d to
Pa
kist
an•
Cons
olid
ate
prod
uce
and
who
lesa
le to
in
tern
atio
nal m
arke
t•
Act a
s ga
teke
eper
s to
exp
ort
Expo
rted
fres
h fr
uits
• Gr
apes
US$
72.
5 m
illion
• Ap
ples
US$
29
milli
on•
Pom
egra
nate
s US
$ 20
milli
on
• M
elon
s US
$ 3.
6 m
illion
• W
ater
mel
ons
US$
3 m
illion
Top
8 ex
port
de
stin
atio
ns•
Paki
stan
• Be
laru
s•
Indi
a•
Fran
ce•
Sene
gal
• Ka
zakh
stan
• Ba
hrai
n•
Cana
da
Prod
uctio
nAs
sem
bly
Proc
essi
ngDi
strib
utio
n
Dom
estic
mar
ket
(Gra
pes:
20-
40%
of t
otal
cro
p pr
oduc
tion
dom
estic
ally
con
sum
ed, r
est e
xpor
ted
or p
roce
ssed
to
drie
d go
ods)
[ PEELING THE ONION : VALUE CHAIN ANALYSIS OF AFGHANISTAN’S FRESH FRUITS AND VEGETABLES SECTOR ]
23
Figure 6 : Current value chain – fresh vegetables in Afghanistan
Fert
ilizer
s
Labo
ur fo
rce
Lim
ited
liter
acy
(abu
ndan
t) /
skills
(sca
rce)
Bags
/ pa
ckag
ing
(e.g
. woo
den
boxe
s
Natio
nal c
ompo
nent
Mix
ed c
ompo
nent
Inte
rnat
iona
l com
pone
nt
Cutti
ng a
nd h
arve
stin
g eq
uipm
ent
Plan
ting
mat
eria
l
Fam
ily-r
un fa
rms
Smal
l to
med
ium
-sca
le fa
rmer
s (m
ajor
ity)
• Cr
op is
con
tract
ed b
efor
e ha
rves
ting,
bas
ed o
n an
es
timat
e of
the
yiel
d•
Farm
ers
have
ver
y lim
ited
barg
aini
ng p
ower
Larg
e-sc
ale
farm
ers
(min
ority
)
Regi
ons
Parw
an, K
apis
aNa
ngah
ar, B
alkh
Tom
atoe
s: s
igni
fican
t in
Maz
ar-e
-Sha
rifPo
tato
es: B
amya
n (7
0%),
Nang
arha
r, Pa
njsh
er, P
arw
an,
Sam
anga
n, S
ar-e
pol
, Tak
har,
Uruz
gan
and
War
dak
Onio
ns: P
aktia
, Her
at,
Kand
ahar
Inpu
t sup
ply
Prod
uctio
nAs
sem
bly
Proc
essi
ngDi
strib
utio
nDo
mes
tic m
arke
t
Regi
onal
trad
ers
Non-
re
frige
rate
d tra
nspo
rt in
sm
all t
ruck
s;
Resp
onsi
ble
for
orga
nizin
g th
e ha
rves
t, em
ploy
ing
labo
urer
s,
pack
agin
g, e
tc.
Mid
dlem
en
and
villa
ge
leve
l tra
ders
Each
mov
ing
prod
uct s
hort
di
stan
ces.
Coop
erat
ion
with
tran
spor
t un
ions
Furt
her v
alue
addi
tion
Furt
her p
roce
ssin
g;
bagg
ed, w
eigh
ed,
heat
-sea
led,
stit
ched
, pr
epar
ed fo
r fur
ther
tra
nspo
rt
Dom
estic
Val
ue A
dditi
on
Sim
ple
clea
ning
faci
litie
s
Wei
ghin
g fa
cilit
ies
Grad
ing
faci
litie
s
Sort
ing
faci
litie
s
Pack
agin
g fa
cilit
ies
Peel
ing
and
dici
ng fa
cilit
ies
Cust
oms
offic
e
Smal
l and
la
rge
who
lesa
lers
(Man
dvi)
Mai
n m
arke
ts;
Kabu
l, M
azar
-e-
Shar
if, K
host
, He
rat,
Jala
laba
d an
d Ka
ndah
ar
Loca
l Ret
aile
rs
Valu
e ad
ditio
n by
man
ually
cl
eani
ng p
rodu
ct
to re
mov
e pa
ckag
ing
stra
w,
dust
and
sto
nes
Expo
rt tr
ader
sCo
nsol
idat
e pr
oduc
e an
d w
hole
sale
to
inte
rnat
iona
l mar
ket
Fore
ign
reta
ilers
Info
rmal
mar
ket
Form
al m
arke
t
Top
expo
rt
dest
inat
ions
• Pa
kist
an•
Bela
rus
• In
dia
• Sw
itzer
land
• Fr
ance
Dom
estic
ally
con
sum
ed fr
esh
vege
tabl
es•
Carr
ots
• Ca
ulifl
ower
s•
Cucu
mbe
rs•
Eggp
lant
s•
Okra
s•
Onio
ns a
nd G
arlic
• Pe
pper
s•
Pota
toes
• To
mat
oes
• Ot
hers
(Mun
g be
ans,
gre
ens,
sq
uash
es, p
umpk
ins,
gou
rds,
be
ets,
lettu
ce, s
pina
ch, c
owpe
as,
mor
inga
s, a
spar
agus
, sw
eet
pota
toes
, bro
ccol
i, Br
usse
ls
spro
uts,
cab
bage
, pea
s)
Expo
rted
fres
h ve
geta
bles
(201
6)•
Tom
atoe
s US
$ 17
m
illion
• On
ions
US$
8.5
milli
on•
Cucu
mbe
rs U
S$ 2
.3
milli
on
• M
ushr
oom
s US
$ 2.
0 m
illion
• Po
tato
es*
*Bas
ed o
n de
sk re
sear
ch a
nd
cons
ulta
tions
, rep
orte
d ex
port
ed v
alue
of p
otat
oes
likel
y un
dere
stim
ates
the
tota
l va
lue
of e
xpor
ts
Inte
rnat
iona
l mar
ket
24
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
MARKET DYNAMICS PROMOTE LOW PRICE RATHER THAN HIGH QUALITY
The marketing chain for FFV involves local and regional traders and wholesalers, as well as national and interna-tional traders and wholesalers. Thousands of middlemen and traders operate at the local level in direct contact with producers. They work independently or for larger traders and wholesalers. Conversely, there are in general few large traders and market aggregators. It is important to highlight that social networks still influence how products are sold and cross borders. These networks are based on ethnic-ity, family relations and cross-border networks. While social networks facilitate informal credit, they may hinder the opti-mization of market opportunities by hampering contractual relations outside of them.
Wholesale markets are highly speculative and prices are rather volatile, which creates risks for sector stakeholders. Moreover, because of the lack of cold storage facilities, marketing of FFV occurs right after harvesting to minimize potential losses. With enormous volumes of fresh produce dumped into the market within a relatively short time frame, FFV are sold by farmers at relatively low prices. Additionally, there is usually little grading of produce, so farmers are not rewarded with better prices for high-quality yields. The natu-ral consequence is that there is a lack of economic incen-tives to improve the quality of production.
SUBSTANTIAL POSTHARVEST LOSSES AFFECT VOLUME AND CONSISTENCY OF PRODUCTION
In Afghanistan, postharvest losses of FFV are substantial, reaching as much as 50 % to 60 % of total production, al-though there is not enough reliable data available in many situations. This deficiency severely degrades the ability of Afghan traders to establish relationships with international buyers, who have three main requirements : shipments of bulk quanitities, consistent supply of produce and consist-ent quality. Besides limiting export potential, loss of produce following the harvest also contributes to food insecurity, es-pecially during Afghanistan’s severe winters. Several issues along the value chain contribute to this problem. They can be categorized as technical and non-technical issues.
On the technical side, farmers’ lack of awareness of and training in best postharvest practices – such as proper handling, sorting and grading of products – are immediate causes of postharvest losses. Farmers’ lack of knowledge of quality standards and food safety issues, packaging and marketing also contribute to fresh produce losses. This lack of awareness and poor training of producers regarding these issues is mainly caused by insufficient and poor provi-sion of agricultural extension services and lack of coordina-tion among sector stakeholders.
On the non-technical side, there are several causes for loss of harvest, mainly related to the weak cold chain infrastructure and low number of refrigerated trucks in the country, which are vital for perishable products such as FFV. Another major issue is poor packaging. The paucity of packaging facilities and packaging input materials are also among the main causes of food spoilage and waste.
Proper packaging of fresh produce can help reduce spoil-age by providing protection from damage during handling, transport and storage.
Access to adequate cold storage facilities is also lim-ited nationally. There are approximately 3,164 cold storages with more than 120 000 metric tons overall capacity in the country. While the current need of cold storage space is cal-culated to be roughly 290 000 metric tons.6 Consequently, produce remains in inappropriate storage conditions for long periods, which affects its shelf life and quality. Low availability of storage facilities also limits households’ ca-pacity to sell produce after harvest, which is when prices are higher. Traditional storage facilities are substandard, be-ing primarily partly underground cellars, which are meant to maintain fruits and vegetables in a cool environment and prevent spoilage. Cellar size varies from small rooms to large spaces. These facilities are a low-cost, easy-to-build alternative to modern storage facilities but humidity and tem-perature are not controlled in these cellars. Therefore, there is a high likelihood of spoilage, as farmers indicate 30–35 % of products spoil once in these cellars.
On the other hand, modern storage facilities with temper-ature and humidity control are expensive to operate for most producers. Investment in storage facilities is partially inhib-ited by the lack of availability and high cost of land in the country. Moreover, land acquisition can be a long process
6.– Office of the Economic Advisor ( 2017 ) : Cold Storage Industry of Afghanistan.
[ PEELING THE ONION : VALUE CHAIN ANALYSIS OF AFGHANISTAN’S FRESH FRUITS AND VEGETABLES SECTOR ]
25
in Afghanistan, lasting up to seven years. These modern facilities are also not designed to accommodate smaller quantities, as they lack separate compartments with con-trollable temperatures. Using these storage facilities is thus prohibitively expensive for small firms because they must cover the cost of using the whole space. Another challenge is the difficulty maintaining a constant supply of electricity, which is vital for these facilities. At present, electricity sup-ply is unreliable ( particularly in rural areas ) and expensive.
Finally, lack of refrigerated trucks and poor road infrastruc-ture are also root causes for the substantial postharvest losses in this sector, especially considering that air freight options are limited and costly. Investment in refrigerated transportation has been deterred so far because of the un-certainty of profit margins in current trade, difficulties cross-ing borders for transit trade, and security risks.
Figure 7 : Technical and non-technical causes of postharvest losses in Afghanistan’s fresh fruit and vegetables sector7
Production (100%) Causes of postharvest loss
Harvesting
Sorting, grading and packaging
Storing
Transporting
Total product reaching consumers= 40% to 60%
• Bruising due to improper handling,lack of equipment
• Suboptimal harvesting time
• Improper handling causing bruising • No sorting of produce• Inadequate packaging
• Pests and diseases• Traditional storage lacks ventilation and control
of temperature and humidity• Insufficient modern storage
• Lack of refrigerated trucks• Poor road infrastructure, insufficient airfreight• Delays at borders
Total losses reaching 40% to 60% of production
7.– There are some discrepancies regarding estimated percentages of post-harvest losses. The World Vegetable Center ( 2014 ) estimates post-harvest losses of around 60 % for Afghan vegetables and fruits. See : World Vegetable Center ( 2014 ) “Cutting food losses in South Asia”. Available at : https ://avrdc.org/cutting-food-losses-south-asia/
While other sources indicate 40 % of losses for all agricultural products. See : Office of the Economic Advisor ( 2017 ) “Cold storage industry of Afghanistan”. Available at : http ://afghaneconomics.com/research/rs16.html
26
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
LOGISTICAL CHALLENGES DELAY DELIVERY AND DEGRADE QUALITY
Afghanistan’s landlocked geography and poor road infra-structure pose severe challenges to exporting FFV. This has resulted in weak connectivity with international markets, and even difficulties with distribution within Afghanistan. If border crossings were expedited and refrigerated trucks available, Afghan traders could transport shipments by ground to Karachi Port in Pakistan or the newly inaugurated Chabahar Port in the Islamic Republic of Iran. Afghan fresh produce could then be loaded onto refrigerated cargo ships. At present, though, the Karachi Port option is not particularly appealing, as Afghan shipments face severe challenges re-lated to transit of vehicles through Pakistan.
Not only are delays common at the Afghanistan–Pakistan border due to obstacles created by Pakistani Customs officials but there are also frequent incidences of corruption. Shipments of Afghan FFV are particularly vul-nerable to corrupt officials, as an entire truckload of pro-duce can rot in a matter of days if ‘speed money’ is not paid. Furthermore, Afghan traders have pointed to periodic
border closures initiated by the Pakistani Government, which tend to occur at the height of the postharvest season when millions of dollars of fresh produce stands by to cross the border. The Chabahar Port option may become viable in the future but only time will tell if this trade route will lead to significant increases in exports by sea freight.
One remarkable trade-related development in 2017 was the launch of a dedicated air corridor between Afghanistan and India. A key component of this initiative has been sub-sidized airfares and expedited Customs clearance on the Indian side. At present, 1–2 cargo flights per week fly out of the airports of Kabul and Kandahar, with FFV representing much of the cargo volume.
Despite several positive transport developments in 2017, producers and traders still suffer from the spoilage of their fresh produce due to lack of shipping options. These is-sues translate into higher transportation costs, higher rates of spoilage and less competitive prices of products.
AFGHANISTAN’S CURRENT EXPORT PERFORMANCE
FFV exports accounted for around 21 % of total Afghan ex-ports in 2016, valued at nearly US $ 168 million. Promisingly, sector exports have increased by a factor of seven over the last 10 years. With the addition of more export destinations, the Afghan FFV sector has grown strongly since 2012. In particular, remarkable growth in shipments to India has boosted the fresh produce sector’s export performance.
Figure 8 : Afghan exports of fresh fruits and vegetables, 2005–2016 ( US $ thousands )
200.000180.000160.000140.000120.000100.00080.00060.00040.00020.000
-2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Source : ITC.
[ PEELING THE ONION : VALUE CHAIN ANALYSIS OF AFGHANISTAN’S FRESH FRUITS AND VEGETABLES SECTOR ]
27
SURVIVABILITY AND SUSTAINABILITY OF EXPORT RELATIONSHIPSAlthough the sector has been able to achieve impressive export growth, difficulties in maintaining stable export rela-tionships threaten the realization of its full potential, as ex-port relationships have tended to be short-lived. The drop in exports to certain markets after the first year indicates that while buyers were initially pleased with the product, in the medium-term Afghan exporters were not able to effectively respond to buyers’ requirements.
ITC has developed a method to estimate the probability that an export relationship survives after an initial sale takes place. According to ITC calculations for the Afghan FFV sec-tor, the probability of export relationships surviving after the first year is only around 40 %. The probability of maintaining a relationship for five years is only around 10 %. Enterprises will need to improve their ability to maintain stable relation-ships with foreign buyers in the future if export development is to be sustained.
Figure 9 : Probability of export survival for Afghan fresh fruit and vegetable exporters, 2002–2016
1.9.8.7.6.5.4.3.2.10
1 2
Probability of Export Survival, 2002-16Fresh Fruits and Vegetables
3 4 5 6 7 8 9 10 11 12 13 14 15 16
Prob
abili
ty
Year
Source : ITC.
Afghanistan’s expor t basket has begun to diversify, but limitations remain to diversify destination markets.
Figures 10 and 11 provide a comparison between the sec-tor’s export basket in 2006 and 2016. The figures compare the number of products and the number of markets reached by each variety of fruit or vegetable. The horizontal axis pre-sents the number of markets reached, while the vertical axis shows the value of the export flow ( in logs ). Each dot represents a variety in the export basket of the FFV sector. Red dots appear when the basket contains varieties which existed in 2006 but not in 2016 ( extinct products ). Products which were not exported by Afghanistan in 2006 but were exported in 2016 appear in green ( new products ).
Comparing the two charts, it is clear that Afghanistan’s FFV sector has been able to reach a larger number of markets over the last decade. In 2006, fresh produce only reached a maximum of four export destinations. Ten years later, in 2016, the sector’s products managed to reach up to seven destinations, which indicates greater export reach and diver-sification in export destinations. During this period, Afghan traders have been able to increase the number of products they are able to export, which bodes well for the long-term sustainability of the sector.
28
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
Figure 10 : Market reach of Afghan fresh produce exports, 2006
10
5
0
-51 2 3 4
Old Products Extinct ProductsNumber of Destinations
Market Reach of ExportsAFG, 2006
Log
Trad
e Va
lue
Figure 11 : Market reach of Afghan fresh produce exports, 2016
10
5
00 2 4 6 8
Old Products Extinct ProductsNumber of Destinations
Market Reach of ExportsAFG, 2016
Log
Trad
e Va
lue
Source : ITC.
Pakistan remains the main expor t destination
Pakistan remained the most important export destination for Afghan FFV throughout the period between 2008 and 2016. Since 2008, Kazakhstan has lost importance as an export destination, with Belarus and India now trailing Pakistan as the second and third most significant export destinations, respectively. Kyrgyzstan was the fourth most important ex-port destination for Afghan fresh produce in 2008 but by 2016 it had been bumped off the top 10 list. During this eight-year period, Afghan traders were able to access a number of new markets in different regions, including France and Switzerland in Europe, Senegal in Africa, Bahrain in the Middle East, Canada in North America and Malaysia in East Asia.
Grapes continue to lead expor ts but other fresh produce is gaining importanceGrapes remain the highest-value item in the Afghan FFV export basket. While grapes were responsible for 83 % of sector exports in 2008, this percentage had dropped to just 43 % by 2016. This change in percentage does not indicate a decline in grape exports ( they are still the number one Afghan export across all sectors ) but rather that Afghan traders are selling a much larger variety of fresh produce than eight years ago. Apples, pomegranates, melons, wa-termelons and tomatoes now stand beside grapes as major sector exports. The overall trend for the sector is that fresh fruits are earning far more in export sales than their fresh vegetable peers.
Photo: Fruits & Vegetables, FOX25906.jpg
[ PEELING THE ONION : VALUE CHAIN ANALYSIS OF AFGHANISTAN’S FRESH FRUITS AND VEGETABLES SECTOR ]
29
Figure 12 : Afghanistan’s top 10 export destinations for fresh fruit and vegetables, 2008 ( US $ thousands )
35.000
30.000
25.000
20.000
15.000
10.000
5.000
-
Pakis
tan
Kazakh
stan
Kyrgy
zstanInd
iaPo
land
UAEFra
nce
Finlan
d
Ukraine
Camero
on
Figure 13 : Afghanistan’s top 10 export destinations for fresh fruit and vegetables, 2016 ( US $ thousands )
160.000
140.000
120.000
100.000
80.000
60.000
40.000
20.000
-
Pakis
tan
Kazakh
stan
Belarus Ind
ia
Seneg
al
Switzerla
ndFra
nce
Bahrai
n
Canad
a
Malays
ia
Source : ITC.
Figure 14 : Afghanistan sector export basket, 2008
Tomatoes12%
Fresh apples21%
Fresh grapes53%
Pomegranates14%
Figure 15 : Afghanistan sector export basket, 2016
Tomatoes10%
Watermelon2%
Other9%
Melons2%
Onions5%
Fresh apples17%
Fresh grapes43%
Pomegranates12%
Source : ITC.
30
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
AFGHANISTAN’S LEADING FRESH VARIETIES
FRESH FRUITS
Fresh grapes
Pakistan is the most important export destination for grapes, with 99 % of Afghanistan’s grapes shipped to its southern neighbour. Despite the overwhelming volume of Afghan grapes heading to Pakistan, Afghan traders have made
inroads with grape sales in a number of new markets. These markets include Belarus, France and Senegal. Two other destination markets over the last several years have been India and France, with remarkable export growth in both these countries. Grape exports to India grew at an average annual rate of 91 % between 2012 and 2016, with 43 % an average annual rate growth of grape exports to France dur-ing this same time period.
Table 8 : Afghanistan’s main import markets for fresh grapes
Fresh grapes
Importers Exported value in 2016 ( US $ thousands ) Annual growth ( % ) Share of Afghan exports ( % )
World 72 503 45.81 - / -
Pakistan 71 551 45.00 98.69
Belarus 716 0.99
India 133 91.00 0.18
France 76 43.00 0.10
Senegal 27 0.04
Source : ITC.
Fresh apples
Apple exports stood at US $ 28.9 million in 2016, with av-erage annual growth of 71 % since 2012. The main export destination was Pakistan, where 91 % of apple exports were shipped. India is another significant importer of Afghan ap-ples, with US $ 2.1 million in imports in 2016. Other importers of Afghan apples include Belarus, Senegal and France.
Table 9 : Afghanistan’s main import markets for fresh apples
Fresh apples
Importers Exported value in 2016 ( US $ thousands ) Annual growth ( % ) Share of Afghan exports ( % )
World 28 890 71.44 - / -
Pakistan 26 179 67.00 90.62
India 2 140 7.41
Belarus 378 1.31
Senegal 186 0.64
France 7 -6.00 0.02
Source : ITC.
Photo: pixabay, apple-3160533.jpg
[ PEELING THE ONION : VALUE CHAIN ANALYSIS OF AFGHANISTAN’S FRESH FRUITS AND VEGETABLES SECTOR ]
31
Melons
Afghan melons only recently joined the sector export basket, with exports valued at US $ 6.6 million in 2016. The primary
export destination was Pakistan, which received 97 % of exported Afghan melons. India and Bahrain were two new export destinations for Afghan melons in 2016.
Table 10 : Afghanistan’s main import markets for fresh melons and watermelons
Melons ( melons and watermelon )
Importers Exported value in 2016 ( US $ thousands ) Annual growth ( % ) Share of Afghan exports ( % )
World 6 617 - / - - / -
Pakistan 6 407 25 97
India 199 3
Bahrain 11 0
Source : ITC.
Pomegranates
Although pomegranates do not have an individual HS code and are included under HS code 081090, it is likely that, for Afghanistan, most exports under this code are in fact pomegranates, considering the significant production of this fruit in the country, particularly compared to the other fruits covered under this code.
As with other exported fresh fruits from Afghanistan, Pakistan was the most important export destination for other Afghan fruits including pomegranates. India was the second-largest importer of the variety with a share of 7 % of Afghan exported other fruits, including pomegranates. Other importers were Belarus and Kazakhstan, markets which have only recently become export destinations for this product.
Table 11 : Afghanistan’s main import markets for pomegranates
Other fruits ( including pomegranate )
Importers Exported value in 2016 ( US $ thousands ) Annual growth ( % ) Share of Afghan exports ( % )
World 28 890 71.44 - / -
Pakistan 18 062 54.00 91.67
India 1 400 7.11
Belarus 203 1.03
Kazakhstan 39 0.20
Source : ITC.
Photo: comments 9 3 18, pomegranate-58554.jpg
32
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
FRESH VEGETABLES
Tomatoes
Afghanistan exported US $ 17 million in tomatoes in 2016. Tomato exports have grown rapidly, at an average annual rate of 66 % between 2012 and 2016. The vast majority of tomato exports ( 96 % of total ) were shipped to Pakistan. The remaining 4 % of tomato exports in 2016 were sent to Belarus, with an export value of US $ 668,000.
Table 12 : Afghanistan’s main import markets for tomatoes
Tomatoes
Importers Exported value in 2016 ( US $ thousands ) Annual growth ( % ) Share of Afghan exports ( % )
World 17 160 66.07 - / -
Pakistan 16 492 65.00 96.11
Belarus 668 3.89
Source : ITC.
Onions
Afghan onion exports grew at an average annual rate of 6 % between 2012 and 2016, which is comparatively less than other sector products. The total exported value stood at US $ 8.4 million in 2016, with the majority of that amount go-ing to Pakistan. India is a new destination market for Afghan onions, although the export value was a mere US $ 32,000 in 2016 ( less than 1 % of total onion exports ).
Table 13 : Afghanistan’s main import markets for onions
Onions
Importers Exported value in 2016 ( US $ thousands ) Annual growth ( % ) Share of Afghan exports ( % )
World 8 432 5.96 - / -
Pakistan 8 400 6.00 99.62
India 32 0.38
Source : ITC.
Mushrooms
Mushrooms are also a promising crop currently being culti-vated, and their production is being encouraged by interna-tional organizations and development partners. It is worth mentioning that they are mainly exported to Belarus ( roughly
US $ 2 million in 2016 ), although this data may be underesti-mated because unrecorded exports to Pakistan have been reported. Afghan mushrooms – mainly dried – are shipped through Pakistan to third countries under the Pakistani trade-mark, after being further processed and packed there.
Photo: comments 9 3 18, By The Photographer (Own work) [CC0], via Wikimedia Commons.jpg
Photo: comments 9 3 18, (CC BY 2.0) Mike Licht.jpg
[ PEELING THE ONION : VALUE CHAIN ANALYSIS OF AFGHANISTAN’S FRESH FRUITS AND VEGETABLES SECTOR ]
33
‘MUSH’ ROOM FOR IMPROVEMENT : A SERIES OF CHALLENGES PREVENTING SECTOR GROWTH
Key issues constraining the sector’s ability to compete / connect / change
The following section analyses sector challenges across three levels – firm capabilities ; institutional and trade support ; and national environment, policy and regulations. Three dimensions of competiveness of Afghanistan export were analysed.
Compete : Issues limiting the sector’s capacity to compete in national and foreign markets. This includes challenges related to access to inputs, productivity, national infrastructure, quality management and complying with standards, among others.
Connect : Issues restraining connectivity to suppliers, markets and clients. This dimension includes challenges related to market information, marketing and trade promotion, branding and trade agreements, among others.
Change : Issues limiting the sector’s capacity to change, innovate and tap into emerging trends. This dimension relates to challenges accessing trained / skilled labour, intellectual property protection, institutional support to innovate, investment promotion and pro-tection, corporate social responsibility and youth and women’s employment, among other issues.
COMPETE
The FFV sector has significant growth and export potential. However, sector competitiveness is currently limited by low levels of production and high postharvest losses, as well as a poor capacity to meet quality and food safety standards in international markets.
Farmers have limited capacity to engage in market-oriented productionWeak dissemination of market information to stakeholders at the production level limits their ability to plan and organ-ize production strategically, based on market prices and demand. Moreover, producers have poor knowledge of fruit varieties that fetch premium prices in foreign markets. Underlying root causes include the near complete absence of information about prices in international wholesale mar-kets, the fragmented nature of the market ( i.e. insufficient producer cooperative structures ), and the lack of commu-nication channels for farmers and traders to coordinate and to exchange market information.
Value chain segment Production
Severity ● ● ● ● ●
PoA referenceActivities 1.4.1. to 1.4.5, 1.7.1 to
1.7.4, 4.1.4
Key operational costs are higher throughout the value chain, making Afghan expor ters less price competitive
The cost of production inputs ( e.g. fertilizers and labour ), are higher in Afghanistan than in regional countries, which nega-tively impacts price competitiveness for Afghan FFV. This weakness is exacerbated by the continuous depreciation of the Pakistani and Iranian currencies, allowing both of these neighbouring countries to sell fresh produce to foreign buy-ers at inordinately low prices. Another obstacle that hurts the price competitiveness of Afghan exporters is the high cost of packaging materials, which again is more expensive to procure for Afghan traders and sector enterprises than their peers in regional countries. Finally, transport costs are high both as a result of Afghanistan’s landlocked geography as well as illegal taxes and bribes in transit and at the borders.
Value chain segment All segments
Severity ● ● ● ● ○
PoA reference Activities 1.3.1 to 1.3.3, 3.5.2, 3.5.3
34
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
Limited domestic availability of critical inputs constrains growth and quality of productionProduction levels are constrained by the limited availabil-ity and inconsistent supply of critical inputs for production. Domestically produced fruit tree saplings are scarce, which has resulted in producers resorting to more costly imports. The sector is also dependent on imported fertilizers and pesticides, which creates difficulties for producers in terms of access and affordability. Fragmented distribution net-works and weak links to suppliers are underlying root caus-es behind the limited availability of inputs for production. Water for irrigation is another key input, with current irrigation systems outdated or in disrepair, and farmers rarely using specialized technology to optimize use of water.
Value chain segment Inputs / production
Severity ● ● ● ○ ○
PoA reference Activities 1.3.1 to 1.3.3
Low production yields are par tly explained by outdated farming methodsA heavy reliance on outdated production methods cre-ates inefficiencies and limitations in terms of productivity. Explanatory factors behind the limited adoption of advanced cultivation techniques are the lack of knowledge of better production methods and difficulty accessing capital, com-bined with a risk-averse mentality that inhibits reform.
Advanced cultivation methods could be promoted through provision of agricultural extension services, which is currently limited by numerous obstacles. These include the lack of female extension service providers, the low presence of extension agents at the provincial level, insufficient ongo-ing in-service training offered to extension service agents, and difficulty retaining qualified staff due to uncompetitive salaries.
Besides the expertise to use advanced cultivation methods, farmers also need capital to purchase modern machinery and high-quality production inputs. This issue needs to be addressed through institutional support in the form of financial instruments that increase access to capital. With more capital, Afghan farmers can purchase more and better-quality inputs, including high-yield fruit tree saplings, fertilizers, pesticides and planting / harvesting machinery.
Value chain segment Production
Severity ● ● ● ● ●
PoA referenceActivities 1.4.1. to 1.4.5, 1.5.1
to 1.5.6, 1.6.1 to 1.6.3
Severe postharvest losses are mainly caused by rough handling and weak cold chain infrastructure
Substantial postharvest losses are linked to careless post-harvest handling, a weak cold chain infrastructure and a dearth of refrigerated trucks. As explained in previous sec-tions, the causes of postharvest losses can be catego-rized as technical and non-technical. At the technical level, there are inadequate postharvest practices among value chain actors and poor knowledge regarding cold supply management.
At the non-technical level, low levels of investment ( among other factors ) has resulted in a scarcity of cold storage facilities and refrigerated trucks. Moreover, existing cold storage facilities are frequently not up to international standards, as they lack controls for moisture, temperature and air flow. With few ( if any ) long-term cold storage op-tions, producers and traders are forced to dump their fresh produce into the market as fast as possible, resulting in sub-optimal prices.
Value chain segment Production / distribution
Severity ● ● ● ● ●
PoA referenceActivities 2.1.1 to 2.1.3, 2.2.1
to 2.2.5
The sector has poor capacity to meet international safety and quality standardsOn the production side, there is poor understanding of qual-ity control and food safety management practices across the value chain. Several factors contribute to lower produce quality, including poor grading and sorting at the farm level, as well as substandard processing and packaging methods. As a result, much of Afghanistan’s fresh produce does not comply with international market requirements.
FFV are often exposed to contaminants in wholesale markets ( e.g. untreated well water ) as well as high levels of moisture that allow bacteria to grow. Moreover, although most production is performed without chemicals such as pesticides, there is no control or enforcement of stand-ards when it comes to chemical residue on fresh produce. Additionally, products are rarely sorted or graded, leaving farmers little incentive to work towards high-quality, premi-um-priced yields.
As a result, noteworthy Afghan fruits such as fresh grapes and apricots are currently considered ‘inadmissi-ble’ to enter the United States market, as per regulations of the Animal and Plant Health Inspection Service. Obtaining access to the United States market is a process that usually takes several years.
[ PEELING THE ONION : VALUE CHAIN ANALYSIS OF AFGHANISTAN’S FRESH FRUITS AND VEGETABLES SECTOR ]
35
Box 6 : List of fruits and vegetables approved for the United States market
All countries ( no permit required )
• Aloe vera ( above-ground parts )• Bat nut or devil pod ( Trapa bicornis )• Cannonball fruit• Chinese water chestnut• Coconut• Corn smut galls• Cyperus corm
• Edible flowers ( inflorescences only )• Garlic cloves, peeled• Ginger root• Lily bulb ( Lilium spp. )• Maguey leaf• Matsutake• Mushroom
• Palm heart, peeled• Peanut• Pomegranate arils• St. John’s Bread• Singhara nut ( Trapa bispinosa )• Tamarind• Truffle• Water chestnut ( Trapa natans )
Source : United States Department of Agriculture.
Likewise, lack of uniformity in shape and colour of pro-duce, for example, can affect the entrance of certain fruits – such as grapes – to the EU, under the European Specific Marketing Standards regulation. In terms of appearance, in many cases, fruit have irregular sizes and different colours, as well as bruises because of poor packaging. The lack of uniformity is caused by the range of varieties used and the propagation of species being done without grafting, among other reasons.
On the institutional side, there is weak Government ca-pacity to perform phytosanitary and quality control testing. This is mainly due to the extremely limited number of testing
facilities that can confirm that fresh produce meets inter-national standards. Many existing laboratories are poorly equipped and staffed, while other advanced donor-funded laboratories cannot recruit and retain qualified staff due to uncompetitive salary scales. Finally, the traceability of pro-duce – a common requirement for developed markets – is essentially non-existent.
Value chain segment All segments
Severity ● ● ● ● ○
PoA reference Activities 3.2.1, 3.2.2, 3.3.1 to 3.3.5
Photo: Fruits & Vegetables, FOX20212.jpg
36
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
Wea
k di
ssem
ina-
tion
of
mar
ket
info
rmat
ion
Farm
ers
have
lim
ited
capa
city
to
pla
n m
arke
t- or
ient
ed
prod
uctio
n
Key
oper
atio
nal c
osts
ar
e hi
gher
com
pare
d w
ith th
ose
of re
gion
al
com
petit
ors
Lim
ited
dom
estic
ava
ilabi
lity
of
criti
cal i
nput
s co
nstra
ints
gro
wth
an
d qu
ality
of p
rodu
ctio
n
Usua
l sub
stan
tial
post
harv
est
loss
es
Afgh
an p
rodu
cts
curr
ently
do
not m
eet t
he
qual
ity o
r phy
tosa
nita
ry
stan
dard
s of
maj
or
inte
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l mar
kets
Low
pro
duct
ion
yiel
ds
Wea
k co
mm
unic
a-tio
n ch
anne
ls
for
farm
er-tr
ader
co
ordi
natio
n
Pro
duct
ion
cost
s, e
.g.
fert
ilizer
s ar
e m
ore
expe
nsiv
e (im
port
ed)
Insu
ffici
ent
prod
ucer
co
oper
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e st
ruct
ures
Pack
agin
g m
ater
ials
are
m
ore
expe
nsiv
e
Insu
ffici
ent
colle
ctio
n of
pr
ice
info
rmat
ion
Tran
spor
tco
sts
are
high
er, p
lus
illega
l tax
es
and
brib
es
Ofte
n do
mes
tic
trees
car
ry
dise
ases
Lack
of p
est/
dise
ase
cont
rol
Sca
rce
supp
ly o
f (q
ualit
y)
youn
g fru
it tre
es
(hea
vy
relia
nce
on
impo
rts
of
youn
g fru
it tre
es)
Lac
k of
do
mes
tic
qual
ity
cont
rol
Lim
ited
wat
er
dist
ribut
ion
syst
ems
Inpu
ts a
re
impo
rted
(h
igh
pric
es)
Poo
r or
gani
zatio
n in
mar
ketin
g in
puts
to
farm
ers
Lac
k of
kn
owle
dge
on
the
adeq
uate
us
e of
fe
rtiliz
ers
Use
of
fert
ilizer
is
rare
ly b
ased
on
soi
l tes
ts
and
scie
ntifi
c kn
owle
dge
of
nutri
ents
re
quire
d fo
r m
axim
um
yiel
d
Lac
k of
kn
owle
dge
on
the
adeq
uate
ap
plic
atio
n of
pe
stic
ides
Rel
ucta
nce
to
chan
ge
tradi
tiona
l m
etho
ds a
nd
limite
d kn
owle
dge/
ac
cess
to
mod
ern
tech
nolo
gy
for c
ultiv
atio
n
Lim
ited
acce
ss to
ex
tens
ion
serv
ices
Lac
k of
ca
pita
l to
upgr
ade
culti
vatio
n sy
stem
s
Low
kn
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dge
abou
t col
d ch
ain
man
agem
en
Lac
k of
fa
cilit
ies
for
prop
er
asse
mbl
y,
clea
ning
, pa
ckin
g an
d st
orag
e of
fru
its/
vege
tabl
es to
le
ngth
en s
helf
life,
and
er
ratic
pow
er
supp
ly
Poo
r pr
oces
sing
an
d pa
ckag
ing
met
hods
(in
clud
ing
poor
gra
ding
an
d so
rtin
g pr
actic
es) a
nd
abse
nce
of
cold
cha
in
Ext
rem
ely
limite
d te
stin
g fa
cilit
ies
to
cert
ify
prod
ucts
ag
ains
t in
tern
atio
nal
grad
es a
nd
stan
dard
s
Inef
fect
ive
impo
rt/
expo
rt q
ualit
y an
d sa
nita
ry
and
phyt
osan
itary
co
ntro
ls
Exis
ting
labo
rato
ries
are
poor
ly
equi
pped
and
st
affe
d
Lac
k of
heal
thy
plan
t st
ock
to
reha
bilit
ate
dam
aged
and
di
seas
ed
trees
/ vi
neya
rds
No
spec
ializ
ed
tech
nolo
gy
used
that
re
adily
co
nser
ves
wat
er, s
uch
as p
last
ic
mul
ch a
nd
drip
irrig
atio
n
Diff
icul
t to
acce
ss
wat
er fo
r irr
igat
ion
Diffi
cult
to
acce
ss
fert
ilizer
s(e
.g.
sulp
hur f
or
apric
ots)
Pes
ticid
es
are
diffi
cult
to a
cces
s an
d ex
pens
ive
Lack
of
know
ledg
e of
im
prov
ed
culti
vatio
n te
chni
ques
to
incr
ease
yie
lds
(e.g
. vin
es)
Yiel
d po
tent
ial i
s af
fect
ed b
y w
eak
acce
ss
to q
ualit
y pl
antin
g m
ater
ial a
nd
old
trees
in
orch
ards
Relia
nce
on
outd
ated
pr
oduc
tion
met
hods
(in
effic
ienc
y)
Poor
po
stha
rves
t pr
actic
es
Wea
k co
ld
chai
n in
frast
ruct
ure,
sc
arci
ty o
f re
frige
rate
d tru
cks
(e.g
. 10
-ton
truck
s)
Lack
of
unde
rsta
ndin
g/
impl
emen
tatio
n of
qua
lity
man
agem
ent
prac
tices
ac
ross
the
valu
e ch
ain
(ent
erpr
ise-
si
de)
Wea
k na
tiona
l ab
ility
to
perf
orm
ph
ytos
anita
ry
and
qual
ity
cont
rol
(inst
itutio
nal
side
)
Cha
lleng
es to
com
pete
[ PEELING THE ONION : VALUE CHAIN ANALYSIS OF AFGHANISTAN’S FRESH FRUITS AND VEGETABLES SECTOR ]
37
CONNECT
Besides factors which limit the sector’s ability to compete in international markets, additional constraints affect the ability of sector enterprises to connect with international buyers.
Poor logistics and trade-related infrastructure create challenges for Afghan expor tersAs discussed in previous sections, Afghanistan’s land-locked geography limits transport options for exporting FFV. Depending on the product, Customs delays and poor road infrastructure inhibit the export of certain types of highly perishable fresh produce. Recent success launching the Afghanistan-India air corridor, as well as the inauguration of the Chabahar Port route through the Islamic Republic of Iran, hold great promise. With that said, the air corridor still lacks cold storage facilities at the airports in Kabul and Kandahar, while the Chabahar Port route remains unproven as a major transit route for exports of Afghan fresh produce. Main activities aiming at addressing these issues are cov-ered under the Afghanistan NES document, under the sec-tion on Trade Facilitation.
Value chain segment Distribution
Severity ● ● ● ● ○
PoA reference Activity 1.1.2, 4.2.3
Uncer tainty and irregularities in Customs and border procedures harms traders’ capacity to access distant markets
Customs delays and uncertainty, as well as burdensome border procedures, negatively impact exporters on several fronts. Instances of corruption and excessive bureaucracy preparing for Customs clearance create needless burdens for traders, who are often required to obtain an assortment of certificates from various Government agencies prior to export.
Another major obstacle for Afghan traders is uncertainty over transit of goods. Although high-level transit agreements have been hammered out between the Afghan Government and its neighbours, the implementation of these agreements has been spotty at best. Many Afghan trucks loaded with fresh produce are forced to offload cargo on the Afghan side of the border and then use trucks operated by the im-port / transit country to continue the voyage to the buyer. This additional step causes damage to fresh produce from rough handing during the transfer, as well as increasing the rate of spoilage as a result of hours ( if not days ) of delays. Finally, the additional hassle of transferring goods from one truck to another at borders decreases the incentive of Afghan trad-ers to invest in refrigerated trucks, as they cannot be used beyond Afghanistan’s borders.
Value chain segment Distribution
Severity ● ● ● ● ●
PoA reference Activities 2.2.1, 2.2.5
Photo: Fruits & Vegetables, FOX20223.jpg
38
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
Packaging services and materials are inadequate
Deficiencies in packaging of produce is another factor limit-ing the export capacity of the sector. These shortcomings in packaging have three significant ramifications : produce is less able to withstand long voyages, the produce is less attractive to international buyers and shipments may not comply with packaging regulations in developed markets.
Addressing the packaging challenge will not be easy, as facilities for packing fresh produce are limited and of-ten employ substandard methods. Little consideration is given to packaging best practices for each specific type of fresh fruit and vegetable. A final element of this dilemma is cost, as most packaging material must be imported at great expense.
Despite these critical weakness, a few measures have been taken to alleviate this situation. Activities to be consid-ered include spreading awareness of target market pack-aging requirements, as well as planning and implementing training for sector enterprises on how to comply with man-datory packaging requirements in target markets, such as International Standards For Phytosanitary Measures ( ISPM ) 15 ( a requirement in the EU and India ).
Value chain segment Marketing / distribution
Severity ● ● ● ● ○
PoA reference Activities 3.5.1 to 3.5.3
Marketing and branding of Afghan FFV is still underdevelopedThere is poor promotion of Afghan products in international markets, with no national ‘Made in Afghanistan’ brand to distinguish Afghan fresh produce from competitor varieties.
Value chain segment Marketing
Severity ● ● ● ○ ○
PoA reference Activities 4.4.1, 4.4.2
Gathering market intelligence has not been prioritizedThere have been minimal efforts to collect and disseminate market information to sector stakeholders.
Producers and exporters remain largely ignorant of pric-es, import regulations and preferential tariff rates for Afghan imports in target markets. This appears to be the result of a complete lack of any programme by Government or non-government agencies to gather market intelligence on be-half of sector producers and exporters.
The consequence of this intelligence shortcoming is that export relationships in key target markets have been difficult to develop. Afghan traders simply do not have the necessary information to look at a target market, evaluate the consumer landscape, note prices for key products and make a decision about whether or not to enter the market ( and time entry to achieve optimal prices ).
Value chain segment All segments
Severity ● ● ● ○ ○
PoA reference Activities 4.1.1 to 4.1.4,
Small-scale production hampers volume and consistency of fresh produceThe fragmented and small-scale nature of fruit and vegeta-ble cultivation in Afghanistan leads to relatively low yields with inconsistent quality. Additionally, it creates difficulties in terms of efficiently distributing inputs to producers. Cost savings by collective bargaining can be achieved through stronger producer organizations and increased horizontal coordination among farmers.
Value chain segment Production
Severity ● ● ● ● ○
PoA reference Activities 1.1.1 to 1.1.3, 1.2.1, 1.2.2
Photo: Airport, FOX27133.jpgPhoto: Fruits & Vegetables, FOX25921.jpg
[ PEELING THE ONION : VALUE CHAIN ANALYSIS OF AFGHANISTAN’S FRESH FRUITS AND VEGETABLES SECTOR ]
39
Lim
ited
trans
port
op
tions
for
peris
habl
e fo
od
Coor
dina
tion
amon
g pr
oduc
ers
is
limite
d an
d po
orly
en
able
d
Air
carg
o to
In
dia
still
suffe
rs fr
om
lack
of
coor
dina
tion
and
lack
of
cold
sto
rage
fa
cilit
ies
Poor
lo
gist
ics
and
trade
-rel
ated
in
frast
ruct
ure
Con
stan
t Cu
stom
s de
lays
Cor
rupt
ion
and
exce
ssiv
e bu
reau
crac
y
Unce
rtai
nty
in C
usto
ms
and
bord
er p
roce
dure
s
Unc
erta
inty
(w
heth
er
truck
s w
ill be
al
low
ed to
cr
oss,
or
dem
ande
d to
un
load
and
re
load
)
Lac
k of
fa
cilit
ies
for
prop
er p
acki
ng
and
stor
age
of
fruits
(e.g
. gr
apes
and
ra
isin
s) to
le
ngth
en s
helf
life.
Pac
kagi
ngeq
uipm
ent i
s of
ten
impo
rted
Sca
rcity
of
adeq
uate
pa
ckag
ing
mat
eria
ls
(con
side
ratio
nsfo
r eac
h va
riety
)
Qual
ity a
nd s
ize o
f pac
kagi
ng is
a m
ajor
co
nstra
int t
o m
aint
aini
ng p
rodu
ce q
ualit
y an
d fre
shne
ss a
nd th
us to
exp
ort t
o m
ore
dist
ant l
ands
(sho
rt s
helf
life
and
shor
t tim
e fra
me
for m
arke
ting) Lac
k of
pa
ckag
ing
stan
dard
s fo
r ho
rtic
ultu
ral
prod
ucts
Lac
k of
ac
tiviti
es to
ad
opt/
impl
emen
t ISP
M
15 (m
anda
tory
pa
ckag
ing
requ
irem
ent f
or
EU, I
ndia
)
Poo
r pr
omot
ion
of
Afgh
an
prod
ucts
, in
clud
ing
ende
mic
FFV
, in
fore
ign
mar
kets
Unde
rdev
elop
ed
mar
ketin
g of
Afg
han
fruits
and
veg
etab
les
Wea
k m
arke
t in
tellig
ence
ser
vice
s
Lac
k of
na
tiona
l br
andi
ng
Abse
nce
of
natio
nal b
rand
la
bel.
Unaw
aren
ess
of
Afgh
an o
rigin
of
prod
ucts
inin
tern
atio
nal
mar
kets
Lac
k of
fa
rmer
s’
orga
niza
tions
to
mar
ket t
heir
prod
ucts
Exi
stin
g fa
rmer
s’
orga
niza
tions
ar
e w
eak
in
horiz
onta
l co
ordi
natio
n an
d co
oper
atio
n
Wea
k di
ssem
inat
ion
of m
arke
t in
form
atio
n,
e.g.
rega
rdin
g Un
ited
Stat
es
Gene
raliz
ed
Sche
me
of
Pref
eren
ces
to
expo
rter
s,
regu
latio
ns a
nd
adva
ntag
es
Insu
ffici
ent
know
ledg
e/
train
ing
on
mar
ket
inte
lligen
ce
issu
es in
re
leva
nt
min
istri
es
Lac
k of
co
oper
atio
n am
ong
farm
ers
to c
reat
e co
llect
ive
barg
aini
ng
pow
er
Coor
dina
tion
amon
g pr
oduc
ers
is
limite
d an
d po
orly
ena
bled
Cha
lleng
es to
con
nect
40
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
CHANGE
At present, the Afghan fresh produce sector has demon-strated minimal capacity to innovate and diversify produc-tion. Changes across the value chain are necessary for the sector to achieve its full potential.
Limited access to finance prevents upgrades in production and processing capacityThe improvement of current value chain operations is inhibit-ed by limited access to finance. Working capital is needed to purchase production inputs like quality seeds and fertilizer, while investment capital is needed to procure up-to-date farming equipment and establish new commercial farms and orchards.
Another area where investment capital is sorely needed is in food processing. With only a handful of food process-ing facilities in operation, the vast majority of juices, jams, pickled vegetables and potato snacks are imported from abroad, adding to Afghanistan’s massive trade deficit. Moreover, the deficiency in domestic food processing ca-pacity represents a major opportunity cost for Afghan FFV producers, as the glut of supply during the postharvest pe-riod results in low prices in the fresh produce market. If more of this postharvest supply could be diverted to the food pro-cessing industry, prices in both domestic and international markets would increase.
In terms of institutional support, financial services for the fresh produce sector are difficult to access in rural areas and do not meet sector needs. Cultural and religious factors also need to be addressed by commercial banks, as many sec-tor producers and enterprises may be more inclined to use a financing instrument if it is sharia-compliant in structure. The consequence of limited access to finance through formal lending institutions is that opportunistic traders step in to fill the void, making advance cash payments to smallholders for crops at suboptimal prices.
Value chain segment All segments
Severity ● ● ● ● ○
PoA reference Activities 3.4.1 to 3.4.4
Limited availability of agricultural exper tise
The Afghan labour market does not have enough skilled ag-ricultural workers or workers with expertise in food process-ing. This has contributed to the weak capacity of the Afghan economy to develop strong food processing enterprises that can compete with imported products. At present, much of the food processed in Afghanistan is low quality, or worse, un-safe for human consumption. This can be addressed, in part, through the development of education programmes in food processing, both at the university level as well as through focused technical and vocational training programmes.
Value chain segment All segments
Severity ● ● ● ● ○
PoA reference Activities 3.1.1 to 3.1.2
Poor investment in R&D inhibits progress
Sector development is severely constrained by a lack of investment in R&D. Focused research is sorely needed to improve production practices, while at the same time sector producers and enterprises must be made aware of tech-nology and methods that have already been developed. Factors inhibiting sector R&D include a massive brain drain of agricultural scientists, as well as the poor state of the Agricultural Research Institute of Afghanistan ( ARIA ). ARIA lacks up-to-date machinery, financial support and laborato-ries, as well as access to arable land and irrigation systems to plant test crops.
Value chain segment All segments
Severity ● ● ● ○ ○
PoA reference Activity 1.6.3.
Women are marginalized within the sector, limiting their contributionIn spite of women’s prominence in horticulture, limited support services are available to them. As women are re-strained from interacting with men, suffer from mobility con-straints and have limited access to land, they participate mostly in the lower stages of the value chain. Moreover, women are directly affected by challenges accessing credit because they lack collateral ; and challenges participating in training opportunities because they have limited inter-action with men and do not own land, which is a selec-tion criterion to participate in extension training. Because women are not able to receive training, the sector’s capac-ity to improve in terms of quality control and food safety is inhibited. Women’s producer associations also need more support. The Ministry of Agriculture, Irrigation and Livestock ( MAIL ) and development partners are promoting these as-sociations, which could undertake collective investments or trading activities.
Value chain segment All segments
Severity ● ● ● ● ○
PoA reference Activities 1.1.3, 1.5.4
[ PEELING THE ONION : VALUE CHAIN ANALYSIS OF AFGHANISTAN’S FRESH FRUITS AND VEGETABLES SECTOR ]
41
Lack
of w
orki
ng a
nd
inve
stm
ent c
apita
l
Lac
k of
aw
aren
ess
abou
t exi
stin
g fin
anci
al
prod
ucts
co
mpl
ying
w
ith Is
lam
ic
fund
amen
tals
(Is
lam
ic
bank
ing)
, pa
rtic
ular
ly in
ru
ral a
reas
Lim
ited
expa
nsio
n of
fin
anci
al
serv
ices
to
prov
ince
s
Ave
rsio
n to
co
nven
tiona
l, in
tere
st-b
ased
lo
ans
and
lack
of
ada
ptat
ion
of b
anki
ng
serv
ices
to
Isla
mic
fu
ndam
enta
ls
(inte
rest
rate
s)
Hig
h in
tere
st
rate
s (a
s hi
gh
as 2
5%)
Lac
k of
co
llate
ral
Pro
cess
of
acqu
isiti
on o
f la
nd is
co
mpl
icat
ed
and
cum
bers
ome
(app
roxi
mat
ely
250
days
)
Wea
k pr
oper
ty ri
ghts
pr
otec
tion
(land
)
Wid
espr
ead
corr
uptio
n
Low
cap
acity
of
com
mer
cial
co
urts
Unc
lear
lega
l fra
mew
ork
rega
rdin
g la
nd
man
agem
ent
(rou
ghly
80%
of
land
is h
eld
and
trans
ferr
ed
illega
lly)
Lan
d ow
ners
hip
docu
men
ts a
re
ofte
n no
t ar
chiv
ed in
any
of
ficia
l reg
istry
Not e
noug
h w
omen
bei
ng
train
ed a
nd
recr
uite
d to
be
com
e ex
tens
ion
agen
ts
Poor
use
of
alte
rnat
ive
met
hods
in
serv
ice
prov
isio
n (e
.g.
info
rmat
ion
tech
nolo
gy)
Low
en
rolm
ent i
n hi
gher
ed
ucat
ion
Out
date
d te
achi
ng
mat
eria
ls
Inad
equa
te
natio
nal
agric
ultu
ral
high
sch
ool
curr
icul
um
Low
tech
nica
l an
d pe
dago
gica
l sk
ill le
vels
of
teac
hers
and
tra
iner
s
Insu
ffici
ent
inve
stm
ent i
n R&
D
Sig
nific
ant
‘bra
in d
rain
’ of
scie
ntifi
c st
aff
ARI
A la
cks
infra
stru
ctur
e,
mac
hine
ry,
finan
cial
su
ppor
t, la
bora
torie
s an
d ar
able
land
Poo
r cre
dit
serv
ices
ta
rget
ing
wom
en
Insu
ffici
ent
wom
en-to
- w
omen
ex
tens
ion
serv
ices
Wom
en
prod
ucer
s’
asso
ciat
ions
ne
ed to
be
stre
ngth
ened
Exi
stin
g ba
sic
skills
co
nstra
ints
w
ithin
the
adul
t po
pula
tion
(e.g
. num
erac
y,
liter
acy)
Lim
ited
avai
labi
lity
of s
kille
d w
orke
rs in
ag
ricul
ture
and
agr
o-pr
oces
sing
Poor
R&
D in
vest
men
tIn
suffi
cien
t sup
port
se
rvic
es ta
rget
ing
wom
en in
the
sect
or
Cha
lleng
es to
cha
nge
Photo: cc flickr - Todd Huffman, Irrigated farm fields in Afghanistan
[ YIELDING BETTER RESULTS : POSITIONING AFGHANISTAN’S FRESH FRUITS AND VEGETABLES SECTOR IN THE GLOBAL MARKET ]
43
YIELDING BETTER RESULTS : POSITIONING AFGHANISTAN’S
FRESH FRUITS AND VEGETABLES SECTOR IN THE GLOBAL MARKET
This Strategy aims to have the following impact.
• Increase Afghanistan’s exports of FFV, in terms of volume and value.
• Strengthen efforts to decrease postharvest losses.• Optimize time of entry in key markets.• Expand market access with existing transport infrastructure.• Progressively increase value addition by increasing process-
ing capacity for products based on FFV.
• At the regional level, improve Afghanistan’s price competitive-ness and consistency of production. Differentiated policies should be considered, both to intensify commercial farming and to support smallholders.
• At the global level, position Afghanistan by prioritizing high-value – and particularly high-value / low-weight ratio – FFV products.
The increasing demand for FFV in markets close by, such as India and the Russian Federation, offers significant op-portunities for Afghanistan to consolidate and expand sector exports to these markets. Moreover, the opening of air cargo facilities connecting Afghan traders to the Indian market will further boost exports by reducing spoilage from arduous ( and often unrefrigerated ) ground transport. Shipping by air is not cheap, though, which may limit exports by air to highly perishable and high-value / low-weight fresh produce.
While future prospects are generally positive, Afghanistan faces severe competition in regional markets from neigh-bouring exporting countries, such as the Islamic Republic of Iran and Pakistan. Both of these countries have significantly improved their price competitiveness vis-à-vis Afghan pro-ducers over the last several years. Afghan fresh produce has lost competitiveness in price as a result of several factors, including the continuous depreciation of competitors’ cur-rencies, as well as higher costs of production inputs such as fertilizers.
Diversifying Afghanistan’s export destinations has been inhibited by its landlocked geography, poor trans-portation infrastructure and weak cold chain infrastructure. Consequently, Afghanistan has relied heavily on Pakistan as a destination market for its fresh produce.
Considering the Afghan FFV sector’s strengths, weaknesses and opportunities, this Strategy outlines both short-term and long-term courses of action to take to allow the sector to achieve its full potential. They are summarized here :
� Short-term : At the domestic and regional level, Afghanistan should regain price competitiveness and ex-pand destination markets, particularly for key products with medium-to-long shelf life, such as grapes, apples, onions and potatoes. At the same time, the sector can consolidate its position in exports of products with short shelf life, such as tomatoes, in current markets ( e.g. Pakistan ) and add value by improving sorting, grading and packaging.
� Long-term : At the global level, Afghanistan is better suited to compete in high-quality, high-value / low-weight ratio FFV products, targeting high-end markets to mitigate air freight cost disadvantages. Afghan products that fall into this cat-egory are premium varieties of grapes, pomegranates and mushrooms. Most agricultural products in Afghanistan are cultivated using low levels of pesticides and fertilizers ( if any at all ). As a result, organic certification of such prod-ucts from internationally recognized bodies can strengthen Afghanistan’s positioning in developed markets.
44
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
This overall direction is attainable for Afghanistan during the five-year Strategy time frame. To position themselves in international markets, Afghan exporters must take the fol-lowing steps :
� Increase volume of production : Measures must be tak-en to expand commercial farming in the country, in par-allel with supporting smallholders. The former will entail facilitating access to investment capital to establish com-mercial orchards. The latter will involve a mix of activities, such as expanded use of farmer field schools to train farmers in agricultural best practices, promoting produc-ers’ associations, enhancing coordination within existing associations, and improving the quality of agricultural ex-tension services.
� Decrease postharvest losses : Postharvest losses occur at several stages of the value chain. At the current tech-nology levels, efforts to ameliorate postharvest losses will focus on increasing the skills and capacities of relevant actors throughout the value chain. In parallel, measures to encourage investments in cold chain infrastructure and refrigerated trucks will enable Afghan exporters to reach distant markets by reducing food spoilage. This issue will also be critical to reducing the dependence of Afghanistan on out-of-season imports of FFV, which are driven by a lack of adequate cool and cold warehouses to store produce.
� Optimize time of entry in key markets : By improving cold chain infrastructure, along with tracking price move-ments in target markets, Afghan traders can identify the optimal times of entry into markets in order to maximize profits.
� Expand market access with existing transport infra-structure : While there are several ongoing infrastructure projects that will better connect Afghanistan to regional and global markets, certain measures can be imple-mented at the national level to minimize transport time for exports and thus reduce losses due to spoilage. Among these measures, streamlining border and airport Customs procedures in order to reduce Customs delays will be crucial. Streamlining phytosanitary procedures can also significantly reduce transport delays for fresh produce exports.
� Progressively increase value addition : Improving the quality of production is vital for all relevant markets, as Afghanistan is better suited to compete on quality rather than price for most crops. Sorting and grading of prod-ucts should be conducted at the farm level, with price differentiation based on quality, in order to create eco-nomic incentives among producers to increase quality of production. Poor packaging practices can lead to goods being damaged in transit, diminishing quality and thus
the value of shipments. To address this issue, the Afghan packaging and labelling industry must continue to build its capacity. This will also enable Afghan products to go directly on shelves at retail locations in destination mar-kets. Lastly, the capacity to process fruits and vegeta-bles must be improved, as the Afghan domestic market is dominated by juices, tomato pastes, potato chips and pickled vegetables ( among many other products ) that are currently imported from the Islamic Republic of Iran and Pakistan.
� At the regional level, improve Afghanistan’s com-petitiveness : This can be accomplished by adopting measures to increase agricultural yields and improve their consistency, while also reducing production costs. Investments in the energy sector are an important com-ponent of this objective, as stable power supply is a criti-cal input for effective cold chain infrastructure. In order to boost yields, links must be developed between farming communities and suppliers of key inputs such as fertiliz-ers. Another step to increase yields is to encourage the aggregation of land, which will create more opportunities to achieve economies of scale and thereby improve price competitiveness.
� At the global level, position Afghanistan by prioritiz-ing horticulture products which hold high value, and particularly high-value / low-weight ratios. Afghanistan produces certain fruit and vegetable crops which have great potential in developed countries’ high-end markets. Among these products, Afghan grapes, pomegranates and mushrooms hold the most significant opportuni-ties – particularly in European markets – in the long-term, considering the strict requirements these markets hold in terms of food safety and quality assurance. These prod-ucts are characterized by their high-value / low-weight ra-tio, which compensates relatively higher transport costs, which would be incurred when exporting mushrooms, for example, as they are time-sensitive products and would need to be transported by air freight. Pomegranates can be transported by sea or air and they hold opportunities in high-end markets in European countries, where they are becoming increasingly popular. To capitalize on these products, Afghan exporters will need to be able to ensure food safety as well as consistency of production, packag-ing and processing operations. Quality assurance will be key in market niches, where Afghan products will com-pete based on these aspects. Additionally, promoting and facilitating organic certification could further strengthen Afghan exporters positioning in these markets.
[ YIELDING BETTER RESULTS : POSITIONING AFGHANISTAN’S FRESH FRUITS AND VEGETABLES SECTOR IN THE GLOBAL MARKET ]
45
• Medium shelf life• Main varieties: Red Delicious, Golden Delicious and Gala• Harvest: Late August to early November• Potential markets: Short to medium-term: Pakistan, India, Russian Federation, UAE
Fruits
Apples
Grapes
Pomegranates
Melons andWatermelons
• Medium shelf life• Main varieties:
Over 100 varieties, among them: Shondokhani, Kishmishi (or Thompson seedless) and Taifi
• Harvest:Mid July to late September
• Potential markets:- Short to medium-term: Pakistan, India, Russian Federation, UAE- Long-term: Germany
• Medium shelf life• Harvest: Mid July to late October• Main varieties:
Zarmati, Jintoor, Arkani, Zarda• Potential markets:
Medium-term: UAE
• Medium to long shelf life• Main varieties:
Jumbo, Bandana• Harvest:
Early September to late November• Potential markets:
- Long-term: Germany, Netherlands
46
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
• Long shelf life (2-3 months)• Harvest: Early September to late November• Potential markets: Short to medium term: Russian Federation, UAE
Vegetables
Onions
Potatoes
Mushrooms
Tomatoes
• Long shelf life (storage for a few months)• Main varieties:
Safed gul, Be gul, Sabz gul, Lavkar, Chandramukhi, Cardinal and Desiree
• Harvest:Late August to early October
• Potential markets:Short to medium-term: Russian Federation
• Short shelf life (less than 10 days)• Harvest: May–August• Potential markets:
- Short to medium term: Consolidate position in Pakistan, Belarus
- Value added products: Russian Federation
• Short shelf life (less than 10 days)• Harvest:
Two harvest seasons possible: March and October• Potential markets:
- Short to medium-term: Belarus- Long-term: United Kingdom
[ YIELDING BETTER RESULTS : POSITIONING AFGHANISTAN’S FRESH FRUITS AND VEGETABLES SECTOR IN THE GLOBAL MARKET ]
47
MARKET IDENTIFICATION
The following section provides insights into market develop-ment opportunities relevant to the Afghan FFV sector. Key markets with short-term opportunities to increase exports are selected based on factors such as existing trade rela-tionships, geographic proximity and cultural affinity. These factors form the foundation for optimism about expanded trade ties in the future. In the medium-to-long term, it is ex-pected that the evolving capacities of Afghan exporters and a steadily improving business environment will contribute to the success of exporters in penetrating new markets. Products listed under the short-term section will also hold export potential in the medium-to-long term, unless specifi-cally mentioned.
SHORT-TERM TO MEDIUM-TERM PHASE
Domestic market
Products : Melons, fruit juices ( e.g. apple, pomegranate, peach ), tomato sauce, potato chips
Despite strong national production of melons in Afghanistan, the country faces import competition from neighbouring countries. Melons from the Islamic Republic of Iran and Pakistan are preferred over domestically produced melons because they possess better physical variability and cos-metic appearance. Addressing these quality issues would lead to better prices and higher appreciation in the domestic market.
Although national production of fruits is strong in Afghanistan, the domestic market relies heavily on imports of processed fruit products. Fruit juices and jams are two such examples and are primarily imported from the Islamic
Republic of Iran and Pakistan. The fruit juice market is con-sidered the largest and fastest-growing industry subsector for processed fruit in Afghanistan, with estimates indicating a yearly growth rate of roughly 15 %. Given the high domestic demand for juices, significant opportunities lie mainly with apple, pomegranate, melon, grape and cherry flavours.
Another missed opportunity for Afghan fruit producers is in the area of jams, jellies and fruit concentrates. The Islamic Republic of Iran has traditionally been the main supplier of jams, jellies and marmalades for the Afghan domestic mar-ket. Manufacturing fruit jams and jellies requires relatively low investment and minimal processing. Thus, a crucial op-portunity for import substitution lies in scaling up the current small production of processed fruits in Afghanistan to satisfy domestic demand.
Similarly, local demand for tomato paste is substantial. Tomato paste is a staple in Afghan cooking, with sales es-timated to be between US $ 8 and US $ 16 million. However, tomato paste is currently being imported from the Islamic Republic of Iran and Pakistan. Afghanistan has high levels of tomato production, while also having high domestic demand for tomato paste – the only missing ingredients are invest-ment capital and food processing expertise.
In the last few years, potato production in Afghanistan has experienced sustained growth. Despite abundant sup-ply, production of processed potato products is nearly non-existent. Potato chips, for example, are very popular in the Afghan market, with various brands on the shelves of every neighbourhood shop. The vast majority of these snacks are imported from Pakistan and the Islamic Republic of Iran, with a handful of domestically produced Afghan potato snack brands fighting for shelf space. Further studies are needed to assess actual and forecast national demand for this product category, and the means to increase domestic production.
Photo: Fruits & Vegetables, FOX15818.jpg
48
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
Table 14 : Short-to-medium term market opportunities
Target market
Product Key success factorsDistribution channel
Afghan fresh fruits and vegetable exports
to market 2016 ( US $ thousands )
Annual growth of sector
imports all suppliers
2012–2016 ( % )
Annual gross domestic
product growth estimates
2017–2021 ( % )
Pakistan1
Apples, grapes, tomatoes, tomato-based products, apricots, watermelons
• Optimal entry timing• Price competitiveness
Wholesalers, supermarkets 179 456 7.87 5.56
India Apples, grapes• Quality standards• Optimal entry timing
Wholesalers, supermarkets 78 807 8.69 7.73
Russian Federation
Tomato paste, potatoes, onions, mushrooms, apples, grapes
• Sizing and grading• Price competitiveness Wholesalers - -12.21 1.42
Belarus Mushrooms, tomatoes • Optimal entry timing Wholesalers 10 519 35.64 7.40
UAE
Apples, onions, grapes, mushrooms, melons and watermelons
• Sorting and grading• Sanitary safety and qual-
ity standards ( low pesticides levels )
• Price competitiveness• Building trusting relationships
Wholesalers, distributors ( with direct links to retailers ) 4 523 2.57 3.17
Pakistan
Products : Apples, grapes, tomatoes, tomato-based prod-ucts, apricots, watermelons
Due to the limited ability of Afghan exporters to access in-ternational markets, the vast majority of Afghanistan’s fresh produce is shipped to neighbouring countries, primary among them being Pakistan. Demand in Pakistan for Afghan FFV is sizeable, although returns for Afghan traders are marginal ; Pakistani buyers have enormous leverage setting prices, as Afghan traders know their produce will rot if they fail to find a buyer. Out of necessity, Pakistan must remain a target market in the short and medium terms, although the power balance in this relationship can be shifted if and when Afghanistan expands its cold storage capacity and is able to exhibit patience when negotiating with buyers across the border.
Looking at specific products, the Pakistani market for fresh apples represents an attractive opportunity for Afghan exporters. Pakistani imports of apples have increased stead-ily in recent years, from 9,208 tons in 2008 to roughly 60,000 tons in 2015. Popular varieties include Royal Gala and Sweet Gold, both of which are produced in Afghanistan. The urban markets of Islamabad, Lahore and Karachi offer opportu-nities for higher returns, with supermarkets such as Metro Cash & Carry and Hyperstar selling to high-income consum-ers. They are also approachable for prior vendor registration and offer higher potential for well-graded, staged supply, requiring 3.5–16 kg packaging.
Pakistan is also a net importer of tomatoes, although its demand for tomatoes is largely being met by India ( roughly 76 % of Pakistani tomato imports in 2015 ). Besides tomatoes, Afghan exports of several key sector products to Pakistan are currently at suboptimal volumes and prices. These in-clude grapes, watermelons and fresh apricots. For all three of these products, higher prices could likely be obtained by optimizing time of entry. Again, cold storage capacity is a prerequisite for this course of action.
India
Products : Apples, grapes
India represents an important destination market for Afghan apples. While Afghan traders enjoy tariff preferences export-ing to India, producers must improve the grading and quality of produce if they are to sell at premium prices. Red apples, such as the Afghan-produced Gala variety, are the most popular among Indian consumers. Distribution channels for apples in India are large wholesale markets in Delhi, al-though Mumbai, Kolkata, Bangalore and Chennai also host major wholesale operations. Besides wholesalers, Indian supermarkets and hypermarkets also require regular sup-plies of apples in bulk quantities. However, these buyers are uncompromising when it comes to consistency in quality and professional packaging.
[ YIELDING BETTER RESULTS : POSITIONING AFGHANISTAN’S FRESH FRUITS AND VEGETABLES SECTOR IN THE GLOBAL MARKET ]
49
Besides apples, Afghan exporters have an opportunity to vastly increase their exports of fresh grapes to India. In 2015, Indian imports of fresh grapes stood at roughly US $ 12 mil-lion. Very little of that amount consisted of Afghan grapes. As in the case of the Pakistani market, Afghan exporters can increase their profit margins by optimizing their time of entry in the market ( prices tend to be higher in October and November ). On a positive note, exports to India have already increased significantly since the launch of the Afghan-India air corridor.
Russian Federation
Products : Tomato paste, potatoes, onions, mushrooms, ap-ples, grapes
The Russian Federation represents a largely untapped market for Afghan exports of FFV, as well as minimally processed food products. In terms of vegetables, mush-rooms, potatoes and onions are items largely imported by the Russian market. Mushroom consumption is high in the Russian Federation, although a ban imposed on mushroom imports from Poland has caused a decrease in imports since 2015. Afghanistan could step in to meet Russian de-mand for mushrooms but they would have to be transported via air freight considering the highly perishable nature of this product. Potatoes are another staple food for Russians, with demand currently unmet by domestic production. Potatoes are hardy enough to make long ground voyages but getting Afghan potatoes to the Russian market would still require transit through several Central Asian states ( which is easier said than done ).
When it comes to fruits, the Russian Federation is one of the largest apple importers in the world. The most popular apple varieties include Red Delicious, Golden Delicious and Granny Smith, all produced commercially in Afghanistan. Like potatoes, apples are able to survive long trips by ground, but delays at border crossings going through Central Asia currently make Afghan exports of apples to the Russian Federation a difficult proposition. Likewise, the Russian Federation is also one of the top importers of grapes worldwide ( and is already a buyer of Afghan grapes ). If Afghan traders can successfully maintain grape supplies in cold storage for several months after the harvest, they can achieve optimal prices between January and April. The distribution channels for the Russian market are ex-pected to be wholesalers. Major importers of fruits in the Russian Federation are Tander CJSC, Megafruit Ltd and Glavprodimport Ltd.
Belarus
Products : Mushrooms, tomatoes
Belarus has significantly increased its imports of FFV in the past five years. In 2016, Belarus was the primary destina-tion for Afghan fresh mushrooms and is actually the fourth-largest importer of mushrooms worldwide. Notably, Belarus is positioned as a re-export hub for fresh mushrooms, with the Russian Federation being the primary destination once minimal value addition has taken place. Belarus is also the second-largest export destination for Afghan tomatoes, with the potential to increase export volumes once barriers to trade are further reduced.
Photo: USAID, Rural Business Support Project in Afghanistan1.jpg
50
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
UAE
Products : Apples, onions, grapes, mushrooms, melons
Dubai is a central hub for FFV import and re-export. Suppliers to this market, who are often integrated with dis-tribution companies, can distribute directly to wholesalers, hypermarkets, supermarkets, hotels and regional wholesale markets. Regarding domestic wholesale markets, the Al-Aweer market in Dubai is of particular importance. This mar-ket includes 15–20 of the UAE’s largest direct importers with prominent fruit, vegetable and juice brands ( e.g. Barakat and Fresh Fruits ). Moreover, the growth of real estate, high levels of migration to urban areas and increasing tourism, combined with limited domestic capacity for food produc-tion, are spurring growth in food imports.
The top Afghan fresh produce product exported to the UAE is apples, although there is high demand in the Emirates for many other FFV that are produced in Afghanistan. Demand for onions grew at an average annual rate of ap-proximately 19 % between 2012 and 2015. Grapes and mushrooms are also in high demand in the UAE, with US $ 111 million of grape imports in 2015, along with US $ 16 million of mushroom imports. While Afghanistan has a com-petitive advantage producing both of these products, its share of imports to the UAE is close to zero. This represents a near complete failure to penetrate this critical regional mar-ket. ITC has calculated that Afghan melons also have signifi-cant potential for export to the UAE, although export levels at present are either nil or insignificant. Mushrooms exported from Afghanistan to the UAE would have to be transported by air freight, given their short shelf life.
Two major obstacles for Afghan exports to the UAE are phytosanitary regulations and expectations of pre-shipment
value addition. The UAE is a highly regulated market for food products, with requirements set by the Gulf Cooperation Council Standardization Organization. As a developed mar-ket, even wholesale buyers in the UAE expect fresh produce to be graded, sorted and professionally packaged prior to shipment. Another significant weakness for Afghan export-ers is that the Islamic Republic of Iran – which has a fresh produce product basket very similar to Afghanistan’s – has direct access to the UAE via a short sea voyage. This puts Afghan exporters at a severe price disadvantage compared with their Iranian competitors. Considering the emphasis on freshness by regional consumers, demand for ready-to-eat products ( e.g. pre-cut vegetables, fruits and juices ) is stead-ily increasing. At the moment, Afghan products compete directly with low-cost Iranian products, so price competitive-ness will be an important factor to consider.
LONG-TERM PHASE
Table 15 : Long-term market opportunities
Target market Product Key success factorsDistribution channel
Afghan fresh fruits and vegetable
exports to market, 2016 ( US $ thousands )
Annual growth of sector
imports, all suppliers,
2012–2016 ( % )
Annual gross domestic
product growth estimates
2017–2021 ( % )
United Kingdom
Mushrooms, dried mushrooms
• Sanitary safety and quality standards ( pesticide levels )
• Food certifications ( e.g. British Retail Consortium )
Specialized importers ( wholesalers ) - 0.97 1.80
GermanyGrapes, pomegranates
• Sanitary safety and quality standards
• Price competitiveness Wholesalers 61 -0.13 1.41
Netherlands Pomegranates• Sanitary safety and quality
standardsImporters ( wholesalers ) - -2.62 2.42
Photo: Fruits & Vegetables, FOX20225.jpg
[ YIELDING BETTER RESULTS : POSITIONING AFGHANISTAN’S FRESH FRUITS AND VEGETABLES SECTOR IN THE GLOBAL MARKET ]
51
United Kingdom
Products : Mushrooms, dried mushrooms
The United Kingdom is the largest global market for mush-rooms ( fresh or chilled ), with imports growing at an average rate of 5 % between 2012 and 2016. However, Afghanistan’s exports of mushrooms to this market are non-existent. Demand is driven by high consumption all year around, which usually peaks in September and November. Both cultivated and wild mushrooms do well in this market. The United Kingdom is also becoming an important market for dried mushrooms, with an average annual growth rate of 7 % for imports between 2012 and 2016.
Considering the high global prices for mushrooms, Afghan traders have an opportunity to use expensive air freight to deliver shipments of mushrooms to the United Kingdom and still generate profits. For such an effort to be successful, though, Afghan traders would have to take steps to ensure their shipments comply with British packaging and food safety requirements, which may begin to change as the United Kingdom prepares to leave the EU single market.
Germany
Products : Grapes, pomegranates
Germany is the third-largest importer of grapes in the world, with imports of US $ 675 million in 2016. Little of this amount is supplied by Afghanistan. Considering the pref-erence for seedless grapes among European consumers, Afghanistan’s Thompson Seedless variety would likely be best suited for this market.
Germany is also an important market for pomegranates as consumption continues to increase. Pomegranates hold the most promising opportunities when minimally processed, for example, by removing the tasty seeds ( arils ) and packag-ing them as ‘ready-to-eat’ snacks. The best entry time for pomegranates in this market is between March and May, which is several months after Afghanistan’s harvest period for pomegranates. Consequently, cold storage is a must in order to obtain optimal prices. There are also profit opportu-nities based on special varieties of organically certified high-quality pomegranates, which are sold at premium prices in this market.
In Germany, Afghan products benefit from the most favourable regime available under the EU’s Generalized Scheme of Preferences, which grants duty-free, quota-free access to the EU for exports of all products. However, strong competition and high levels of quality and food safety re-quirements present daunting obstacles for Afghan export-ers when it comes to both grapes and pomegranates. In order to comply with EU import regulations and establish long-term ties with German buyers, Afghan exporters must improve their capacities in grading, sorting, packaging and consistent shipment delivery.
Netherlands
Product : Pomegranates
The Netherlands is the largest importer of pomegranates from non-European countries and acts as a re-export hub for pomegranates in Europe. Wholesalers order pomegran-ates from various global suppliers and then distribute to various retailers, with supermarkets being the primary sales point for high-income Dutch consumers. As the Netherlands is a member of the EU, export requirements for the country are comparable to those for Germany.
NES focus
Afghanistan has significant opportunities for diversification but current challenges on the supply side ( e.g. productive capacity ), institutional side ( e.g. quality control, connecting with buyers ) and market-entry side ( e.g. movement of goods across borders ) are preventing Afghan exporters from unleashing their full potential. The NES will enhance the ability of Afghan FFV exporters to tap into these opportunities by :
• Stimulating the adoption of enhanced processing and packag-ing methods and the development of cold chain services and good practices ;
• Strengthening the Afghan standardization, quality, accredita-tion and metrology infrastructure ;
• Building a demand-driven skills pipeline based on market requirements ;
• Improving Customs relations and coordination with neigh-bouring countries.
Source: ITC
[ STRATEGIC OPTIONS FOR THE AFGHAN FRESH FRUITS AND VEGETABLES SECTOR ]
53
STRATEGIC OPTIONS FOR THE AFGHAN FRESH FRUITS
AND VEGETABLES SECTOR
VISION
The Afghan FFV sector is united by the following vision :
“ Afghan fresh fruits and vegetables : harvesting success in regional
and global market ”In order to fulfil this ambitious vision, the following strategic objectives have been identified. These objectives provide a framework for developing solutions over the next five-year time frame. They are as follows.
STRATEGIC OBJECTIVE 1 : INCREASE VOLUMES OF PRODUCTION AND IMPROVE PRICE COMPETITIVENESS
This strategic objective has the goal of increasing volumes of production and achieving cost savings through econo-mies of scale, and consequently improving the ability of Afghan exporters to compete with other regional fresh pro-duce suppliers on price.
On the inputs side, the limited availability of domesti-cally produced fertilizers and pesticides results in higher production costs and hence less price competitiveness for Afghan products, particularly vis-à-vis regional competi-tors. To address this weakness, links must be strengthened between Afghan producers and input suppliers, as well as supporting the domestic production of these critical inputs. Strengthening existing commercial nurseries across the country and supporting the establishment of new nurseries will further support this objective by facilitating access to higher-quality planting materials without high import costs. These measures will diminish costs of production while also resulting in higher yields per hectare.
In order to increase volumes of production, it is critical to strengthen sector coordination by facilitating the registra-tion of new associations through relevant Government bodies, and efforts to decentralize the registration of such associations will be key. Sector associations and farmers must become more nimble in responding to market trends, and this can only be accomplished by disseminating mar-ket research and promoting market-oriented production. In parallel, the sector will benefit from improved coordination between the various actors involved in the value chain, in-cluding farmers, intermediaries, exporters and researchers, among others.
Adopting best farming practices will be crucial for small-holders to attain higher yields. This will be achieved through a combination of policies, including the establishment and expansion of farmer field schools in major agricultural areas of the country. Improving the reach and quality of agricultur-al extension services, including the training and recruitment of female extension service providers, is another critical ac-tion to achieve success within this objective. This will require effort to increase the capacity of extension workers, identify incentives to improve retention rates for qualified technical staff, extend their presence across the country and adopt alternative channels for remote delivery of extension ser-vices. Training alone, though, will be insufficient to maximize smallholders’ yields. Farmers must have better access to working capital to pay for improved production methods, such as trellising for grapes. Measures will also be explored that facilitate the expansion of commercial orchards.
This strategic objective will also encompass activities aimed at increasing investment in R&D for the sector. R&D is crucially needed in several areas, such as improvement of crop varieties and methods to extend production seasons. Results of trials and pilot initiatives must be disseminated to sector stakeholders at all stages of the value chain.
54
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
Fert
ilizer
s
Kish
mis
hKh
ana
for
dryi
ng /
stor
ing
Labo
ur fo
rce
Lim
ited
liter
acy
(abu
ndan
t) /
skills
(sca
rce)
Bags
/ pa
ckag
ing
(e.g
. woo
den
boxe
s
Cutti
ng a
nd h
arve
stin
g eq
uipm
ent
Plan
ting
mat
eria
l
Smal
l far
mer
s
Hom
e ga
rden
ers
• M
ixed
tree
gar
den
with
2-5
tre
es•
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rt: n
othi
ng b
eyon
d irr
igat
ion
Casu
al fa
rmer
s•
Focu
s on
frui
ts, b
ut n
ot
finan
cial
ly c
omitt
ed•
Com
mite
d fie
lds
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t far
mer
s (c
omm
erci
al
orch
ards
)•
Focu
s on
and
inve
st in
frui
ts•
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mite
d fie
lds,
tim
e an
d
mon
ey fo
r agr
icul
tura
l inp
uts
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onal
trad
ers
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re
frige
rate
d tra
nspo
rt,
resp
onsi
ble
for
orga
nizin
g th
e ha
rves
t, em
ploy
ing
labo
urer
s,
pack
agin
g, e
tc.
Mid
dlem
en
and
villa
ge
leve
l tra
ders
Each
mov
ing
prod
uct s
hort
di
stan
ces.
Coop
erat
ion
with
tran
spor
t un
ions
Furt
her v
alue
add
ition
fo
r pro
cess
ed fr
uit
Cust
oms
offic
e
Fore
ign
reta
ilers
Smal
l and
la
rge
who
lesa
lers
(Man
dvi)
Mai
n m
arke
ts;
Kabu
l, M
azar
-e-
Shar
if, K
host
, He
rat,
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laba
d an
d Ka
ndah
ar
Loca
l Re
taile
rs
Valu
e ad
ditio
n by
man
ually
cl
eani
ng
prod
uct t
o re
mov
e pa
ckag
ing
stra
w, d
ust
and
ston
es
Info
rmal
mar
ket
Form
al m
arke
t
Dom
estic
ally
co
nsum
ed fr
esh
frui
ts•
Grap
es•
Apric
ots
• Ap
ples
• Po
meg
rana
tes
• Ci
trus
• Ch
errie
s•
Plum
s
Inte
rnat
iona
l mar
ket
Inpu
t sup
ply
Expo
rt tr
ader
s•
Mar
gin
4-16
% fo
r gr
apes
exp
orte
d to
Pa
kist
an•
Cons
olid
ate
prod
uce
and
who
lesa
le to
in
tern
atio
nal m
arke
t•
Act a
s ga
teke
eper
s to
exp
ort
Expo
rted
fres
h fr
uits
• Gr
apes
US$
72.
5 m
illion
• Ap
ples
US$
29
milli
on•
Pom
egra
nate
s US
$ 20
milli
on
• M
elon
s US
$ 3.
6 m
illion
• W
ater
mel
ons
US$
3 m
illion
Top
8 ex
port
de
stin
atio
ns•
Paki
stan
• Be
laru
s•
Indi
a•
Fran
ce•
Sene
gal
• Ka
zakh
stan
• Ba
hrai
n•
Cana
da
Prod
uctio
nAs
sem
bly
Proc
essi
ngDi
strib
utio
n
Dom
estic
mar
ket
(Gra
pes:
20-
40%
of t
otal
cro
p pr
oduc
tion
dom
estic
ally
con
sum
ed, r
est e
xpor
ted
or p
roce
ssed
to
drie
d go
ods)
Dom
estic
Val
ue A
dditi
on
Sim
ple
clea
ning
faci
litie
s
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ing
faci
litie
s
Sort
ing
faci
litie
s
Pack
agin
g fa
cilit
ies
Inve
stm
ent i
ndo
mes
tic fe
rtiliz
erpr
oduc
tion
&st
orag
e
List
of r
egis
tere
dan
d al
low
edpe
stic
ides
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nsio
n se
rvic
espr
ovid
ed b
y in
put
deal
ers
Foru
ms
for i
nfo
exch
ange
bet
wee
ntra
ders
and
farm
ers
Stan
dard
for
pest
icid
es
Expo
rt a
ssis
tanc
ene
twor
k (in
cl. y
ello
wbo
ok)
Rein
forc
e th
e im
plem
enta
tion
and
enfo
rcem
ent o
fth
e St
rate
gic
Fram
ewor
k of
MAI
L on
ext
ensi
onse
rvic
es to
ext
end
the
pres
ence
of e
xten
sion
serv
ices
and
age
nts
Sche
me
to in
crea
se re
tent
ion
of q
ualif
ied
man
agm
ent
and
tech
nica
l sta
ff in
ext
ensi
on s
ervi
ces;
pro
gram
me
to c
ertif
y fe
mal
e ex
tens
ion
serv
ice
prov
ider
s
Stre
ngth
en fa
rmin
gas
soci
atio
ns
Pric
ing
info
rmat
ion
• Pr
omot
e co
mm
erci
al fa
rmin
g•
Farm
er fi
eld
scho
ols
• Fr
uit t
ree
nurs
erie
s•
Cent
re fo
r col
lect
ion
and
diss
emin
atio
n of
mar
ket
info
rmat
ion
Rem
ote
deliv
ery
ofex
tens
ion
serv
ices
(e.g
. far
mer
help
line)
Inte
grat
ed P
est
Man
agem
ent
Prom
ote
Isla
mic
bank
ing
Trai
ning
s to
com
mer
cial
orch
ard
man
ager
s
Shar
e re
sear
ch /
R&D
Pest
and
dis
ease
con
trol
Exch
ange
pro
gram
mes
bet
wee
n M
SMEs
, pro
duce
rs, a
gron
omis
ts, e
xten
sion
wor
kers
and
pee
rs
Cred
it pr
ogra
mm
es
[ STRATEGIC OPTIONS FOR THE AFGHAN FRESH FRUITS AND VEGETABLES SECTOR ]
55
STRATEGIC OBJECTIVE 2 : REDUCE POSTHARVEST LOSSES ACROSS THE VALUE CHAIN BY ADDRESSING TECHNICAL AND NON-TECHNICAL ISSUES
In addition to low productivity and low volumes of produc-tion, the Afghan FFV sector is constrained by severe post-harvest losses. At the technical level, inadequate handling of produce following the harvest and poor knowledge of cold chain management contribute to postharvest losses. At the non-technical level, the sector must strengthen and increase the availability of cold chain infrastructure. Refrigerated trucks are a key component to achieve success in this area, as most produce is exported using road transport.
At the technical level, activities must be undertaken that build the capacity of value chain actors to reduce posthar-vest losses with available resources. This will require col-laboration with regional and international partners to share expertise in this area. Once best practices are identified, practical guidelines and recommendations can be devel-oped to ensure maximum quality and minimum spoilage of fresh produce, even with the current limitations in cold chain infrastructure. These best practices would include practical advice regarding optimal harvest times, handling recommendations and packing advice, at a minimum. Recommendations will be disseminated through practical
workshops organized for value chain actors such as small-holders and sector enterprises. Awareness-raising cam-paigns can also be organized that target producers and sector actors involved in postharvest activities.
At the non-technical level, the focus will be on encour-aging investment in cold chain infrastructure, including refrigerated trucks. To achieve this objective, a cold chain scheme will be developed to promote investment in and establishment of cold chain infrastructure companies out-side major trading hubs across the country. The cold chain scheme would consistent of a package of economic incen-tives, such as partial grants, tax incentives and facilitation of land purchase / leasing. In parallel, import regulations for cold chain equipment, including import duties, should be revised. Lastly, considering Afghanistan’s inconsistent power supply, R&D to identify energy-efficient alterna-tives, such as solar-based cold chain equipment, will be encouraged.
Addressing weaknesses related to cold chain infrastruc-ture would also have a positive impact on the marketing of FFV from the farmers’ perspective. As produce is now sold at the peak of harvesting time, farmers receive relatively low prices for their products owing to excess supply dumped into the market within a short time frame. Increasing farmers’ access to adequate cold storage facilities can potentially ameliorate this situation and lead to higher prices during peak harvest times, as well as high prices for several months following the harvest.
Photo: Fruits & Vegetables, FOX20203.jpg
56
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
Fert
ilizer
s
Kish
mis
hKh
ana
for
dryi
ng /
stor
ing
Labo
ur fo
rce
Lim
ited
liter
acy
(abu
ndan
t) /
skills
(sca
rce)
Bags
/ pa
ckag
ing
(e.g
. woo
den
boxe
s
Cutti
ng a
nd h
arve
stin
g eq
uipm
ent
Plan
ting
mat
eria
l
Smal
l far
mer
s
Hom
e ga
rden
ers
• M
ixed
tree
gar
den
with
2-5
tre
es•
Effo
rt: n
othi
ng b
eyon
d irr
igat
ion
Casu
al fa
rmer
s•
Focu
s on
frui
ts, b
ut n
ot
finan
cial
ly c
omitt
ed•
Com
mite
d fie
lds
Frui
t far
mer
s (c
omm
erci
al
orch
ards
)•
Focu
s on
and
inve
st in
frui
ts•
Com
mite
d fie
lds,
tim
e an
d
mon
ey fo
r agr
icul
tura
l inp
uts
Regi
onal
trad
ers
Non-
re
frige
rate
d tra
nspo
rt,
resp
onsi
ble
for
orga
nizin
g th
e ha
rves
t, em
ploy
ing
labo
urer
s,
pack
agin
g, e
tc.
Mid
dlem
en
and
villa
ge
leve
l tra
ders
Each
mov
ing
prod
uct s
hort
di
stan
ces.
Coop
erat
ion
with
tran
spor
t un
ions
Furt
her v
alue
ad
ditio
n fo
r pr
oces
sed
frui
t
Larg
e fr
uit p
rodu
cers
Smal
l and
la
rge
who
lesa
lers
(Man
dvi)
Mai
n m
arke
ts;
Kabu
l, M
azar
-e-
Shar
if, K
host
, He
rat,
Jala
laba
d an
d Ka
ndah
ar
Loca
l Re
taile
rs
Valu
e ad
ditio
n by
man
ually
cl
eani
ng
prod
uct t
o re
mov
e pa
ckag
ing
stra
w, d
ust
and
ston
es
Info
rmal
mar
ket
Form
al m
arke
t
Dom
estic
ally
co
nsum
ed fr
esh
frui
ts•
Grap
es•
Apric
ots
• Ap
ples
• Po
meg
rana
tes
• Ci
trus
• Ch
errie
s•
Plum
s
Inpu
t sup
ply
Prod
uctio
nAs
sem
bly
Proc
essi
ngDi
strib
utio
n
Dom
estic
mar
ket
(Gra
pes:
20-
40%
of t
otal
cro
p pr
oduc
tion
dom
estic
ally
con
sum
ed, r
est e
xpor
ted
or p
roce
ssed
to
drie
d go
ods)
Dom
estic
Val
ue A
dditi
on
Sim
ple
clea
ning
faci
litie
s
Grad
ing
faci
litie
s
Sort
ing
faci
litie
s
Pack
agin
g fa
cilit
ies
Cust
oms
offic
e
Fore
ign
reta
ilers
Inte
rnat
iona
l mar
ket
Expo
rt tr
ader
s•
Mar
gin
4-16
% fo
r gr
apes
exp
orte
d to
Pa
kist
an•
Cons
olid
ate
prod
uce
and
who
lesa
le to
in
tern
atio
nal m
arke
t•
Act a
s ga
teke
eper
s to
exp
ort
Expo
rted
fres
h fr
uits
• Gr
apes
US$
72.
5 m
illion
• Ap
ples
US$
29
milli
on•
Pom
egra
nate
s US
$ 20
milli
on
• M
elon
s US
$ 3.
6 m
illion
• W
ater
mel
ons
US$
3 m
illion
Top
8 ex
port
de
stin
atio
ns•
Paki
stan
• Be
laru
s•
Indi
a•
Fran
ce•
Sene
gal
• Ka
zakh
stan
• Ba
hrai
n•
Cana
da
Awar
enes
s ra
isin
gca
mpa
ign
to p
rolo
ngsh
elf l
ife
Trai
ning
prog
ram
men
s
Guid
elin
es a
ndre
com
men
datio
nsto
ass
ure
qual
ity
Capa
city
-bui
ldin
gpr
ogra
mm
es a
ndpr
omot
ion
of P
PP
Prom
ote
ener
gyef
ficie
ncy
Revi
ew im
port
regu
latio
ns fo
r col
dch
ain
equi
pmen
t
Cold
cha
insc
hem
e
[ STRATEGIC OPTIONS FOR THE AFGHAN FRESH FRUITS AND VEGETABLES SECTOR ]
57
STRATEGIC OBJECTIVE 3 : ADD VALUE BY IMPROVING POSTHARVEST PRACTICES AND PROCESSING CAPACITIES
In-country value addition to Afghan FFV will be critical to better position Afghan produce in regional markets, as well as to penetrate developed markets in the medium-to-long term. Types of value addition to be prioritized include ad-vanced packaging and food processing.
In order to realize this objective, measures will include capacity-building of sector firms, media campaigns to spread awareness, demonstrations of best practices in farmer field schools, and workshops targeting sector as-sociations. In parallel, upgrading quality-testing infrastruc-ture is a must to authenticate the quality ( or lack thereof ) of Afghan produce designated for export. Private investment in laboratory services and quality certifications should be encouraged, while also enhancing the capacity of existing Afghan Government laboratories, with a focus on incentives to hire and retain qualified staff.
Besides measures to improve the quality of produce, another critical area is Afghanistan’s domestic capac-ity to provide high-quality packaging services. The limited
availability of high-quality domestically produced packag-ing materials increases costs for sector enterprises, as they must import these products. Piloting the establishment of a packaging factory to meet sector demand is a key activity to be pursued under this strategic objective. At the same time, companies will receive training on the technical details for crop-specific packaging suitable for each target market.
Moreover, this strategic objective will seek to increase domestic capacity to engage in food processing activities in which FFV constitute the primary raw input. Currently, Afghanistan’s ability to process food domestically is ex-tremely limited. As a consequence, processed fruit and vegetable products, such as juices, tomato pastes, pickled vegetables and potato-based snacks are mostly imported from neighbouring countries. Promoting investment in pro-cessing companies ( including foreign direct investment ), will be one of the main activities aimed at addressing this issue. A complementary measure will be building a pool of skilled labour in food processing. At present, many of the existing food processing operations in Afghanistan do not operate to international standards when it comes to hygiene of work-ers and sanitation of facilities. Activities must be considered that address these critical deficiencies, which may include short courses on food processing developed by the Afghan Government or its international development partners.
Photo: Fruits & Vegetables, FOX20194.jpg
58
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
Fert
ilizer
s
Kish
mis
hKh
ana
for
dryi
ng /
stor
ing
Labo
ur fo
rce
Lim
ited
liter
acy
(abu
ndan
t) /
skills
(sca
rce)
Bags
/ pa
ckag
ing
(e.g
. woo
den
boxe
s
Cutti
ng a
nd h
arve
stin
g eq
uipm
ent
Plan
ting
mat
eria
l
Smal
l far
mer
s
Hom
e ga
rden
ers
• M
ixed
tree
gar
den
with
2-5
tre
es•
Effo
rt: n
othi
ng b
eyon
d irr
igat
ion
Casu
al fa
rmer
s•
Focu
s on
frui
ts, b
ut n
ot
finan
cial
ly c
omitt
ed•
Com
mite
d fie
lds
Frui
t far
mer
s (c
omm
erci
al
orch
ards
)•
Focu
s on
and
inve
st in
frui
ts•
Com
mite
d fie
lds,
tim
e an
d
mon
ey fo
r agr
icul
tura
l inp
uts
Regi
onal
trad
ers
Non-
re
frige
rate
d tra
nspo
rt,
resp
onsi
ble
for
orga
nizin
g th
e ha
rves
t, em
ploy
ing
labo
urer
s,
pack
agin
g, e
tc.
Mid
dlem
en
and
villa
ge
leve
l tra
ders
Each
mov
ing
prod
uct s
hort
di
stan
ces.
Coop
erat
ion
with
tran
spor
t un
ions
Furt
her v
alue
ad
ditio
n fo
r pr
oces
sed
frui
t
Smal
l and
la
rge
who
lesa
lers
(Man
dvi)
Mai
n m
arke
ts;
Kabu
l, M
azar
-e-
Shar
if, K
host
, He
rat,
Jala
laba
d an
d Ka
ndah
ar
Loca
l Re
taile
rs
Valu
e ad
ditio
n by
man
ually
cl
eani
ng
prod
uct t
o re
mov
e pa
ckag
ing
stra
w, d
ust
and
ston
es
Info
rmal
mar
ket
Form
al m
arke
t
Dom
estic
ally
co
nsum
ed fr
esh
frui
ts•
Grap
es•
Apric
ots
• Ap
ples
• Po
meg
rana
tes
• Ci
trus
• Ch
errie
s•
Plum
s
Inpu
t sup
ply
Prod
uctio
nAs
sem
bly
Proc
essi
ngDi
strib
utio
n
Dom
estic
mar
ket
(Gra
pes:
20-
40%
of t
otal
cro
p pr
oduc
tion
dom
estic
ally
con
sum
ed, r
est e
xpor
ted
or p
roce
ssed
to
drie
d go
ods)
Dom
estic
Val
ue A
dditi
on
Sim
ple
clea
ning
faci
litie
s
Grad
ing
faci
litie
s
Sort
ing
faci
litie
s
Pack
agin
g fa
cilit
ies
Cust
oms
offic
e
Fore
ign
reta
ilers
Inte
rnat
iona
l mar
ket
Expo
rt tr
ader
s•
Mar
gin
4-16
% fo
r gr
apes
exp
orte
d to
Pa
kist
an•
Cons
olid
ate
prod
uce
and
who
lesa
le to
in
tern
atio
nal m
arke
t•
Act a
s ga
teke
eper
s to
exp
ort
Expo
rted
fres
h fr
uits
• Gr
apes
US$
72.
5 m
illion
• Ap
ples
US$
29
milli
on•
Pom
egra
nate
s US
$ 20
milli
on
• M
elon
s US
$ 3.
6 m
illion
• W
ater
mel
ons
US$
3 m
illion
Top
8 ex
port
de
stin
atio
ns•
Paki
stan
• Be
laru
s•
Indi
a•
Fran
ce•
Sene
gal
• Ka
zakh
stan
• Ba
hrai
n•
Cana
da
Best
pra
ctic
es fo
rqu
ality
pro
duct
ion
Upda
te /
deve
lop
new
cour
ses
in a
gro-
proc
essi
ng /
busi
ness
by th
e se
ctor
at k
eyun
iver
sitie
s an
d tra
inin
gce
ntre
s
Capa
cita
teco
mpa
nies
on
pack
agin
g
Cond
uct f
easi
bilit
yst
udy
on s
ettin
g up
a pa
ckag
ing
fact
ory
Link
s be
twee
n re
gion
alan
d in
tern
atio
nal
pack
agin
g su
pplie
rs
Link
s be
twee
n th
eed
ucat
iona
l sec
tor
and
proc
esso
rs
Prom
ote
valu
ead
ditio
n
Prio
ritize
pro
duct
dive
rsifi
catio
n
Esta
blis
h m
onito
ring
mea
sure
s to
det
erm
ine
succ
ess
of th
e ad
just
ed/ n
ew c
ours
es a
ndre
visi
on m
echa
nism
toco
ntin
ue a
dapt
ing
them
Exte
nd re
ach
offin
anci
al s
ervi
ces
topr
ovin
ces
and
incr
ease
focu
s on
fres
h fru
its a
ndve
geta
bles
sub
-egm
ent
Ince
ntiv
e pa
ckag
e to
attr
act i
nves
tors
Supp
ort d
evel
opm
ent o
f ban
k pr
opos
als
Prev
ent b
rain
dra
in o
f ski
lled
prof
essi
onal
s in
the
sect
or
Capa
cita
te a
ssoc
iatio
ns in
bus
ines
s pl
anin
g an
d de
velo
ping
bank
pro
posa
ls
Upgr
ade
prod
uct-
test
ing
infra
estru
ctur
e
Trai
ning
prog
ram
me
toim
prov
e te
chni
cal
capa
city
Com
puls
ory
requ
irem
ents
on
trace
abilit
y
[ STRATEGIC OPTIONS FOR THE AFGHAN FRESH FRUITS AND VEGETABLES SECTOR ]
59
STRATEGIC OBJECTIVE 4 : INCREASE THE SECTOR’S CAPACITY TO ENTER AND SUSTAIN RELATIONSHIPS IN DOMESTIC AND INTERNATIONAL MARKETS
Afghanistan’s FFV exports remain extremely dependent on the Pakistani market. In order to diminish this dependence and reduce the vulnerability of Afghan exporters, it is im-perative for the sector to diversify export destinations.
To achieve this strategic objective, Afghan Government officials stationed at embassies and consulates in target markets must be tasked with preparing market studies and detailing the nuances of import requirements. To capital-ize on information collected by the Afghan Government’s foreign missions, there must be a central agency that coor-dinates market intelligence gathering and prepares reports for sector producers, enterprises and exporters. In paral-lel, measures must be taken to build the capacity of sector
enterprises in the area of export procedures, with detailed information provided about import requirements for all tar-get markets. At the state level, the Afghan Government can continue its work pushing for trade agreements with other nations that help Afghan exporters minimize time clearing Customs controls in target markets and transiting through neighbouring countries.
At the global level, Afghan FFV have little visibility. To build a national brand for Afghan FFV in regional and inter-national markets, marketing activities such as the develop-ment of catalogues that can be disseminated to potential buyers will be pursued.
Another key element under this objective is improving in-market support. This can be accomplished by facilitat-ing the participation of sector enterprises in relevant inter-national fairs and exhibitions, as well as the organization of business-to-business meetings to help Afghan sector en-terprises build ties with international buyers. Support for the establishment of warehouses in upcoming target markets, such as India and the UAE, will be promoted through invest-ment incentive packages.
Photo: Fruits & Vegetables, FOX16067.jpg
60
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
Fert
ilizer
s
Kish
mis
hKh
ana
for
dryi
ng /
stor
ing
Labo
ur fo
rce
Lim
ited
liter
acy
(abu
ndan
t) /
skills
(sca
rce)
Bags
/ pa
ckag
ing
(e.g
. woo
den
boxe
s
Cutti
ng a
nd h
arve
stin
g eq
uipm
ent
Plan
ting
mat
eria
l
Smal
l far
mer
s
Hom
e ga
rden
ers
• M
ixed
tree
gar
den
with
2-5
tre
es•
Effo
rt: n
othi
ng b
eyon
d irr
igat
ion
Casu
al fa
rmer
s•
Focu
s on
frui
ts, b
ut n
ot
finan
cial
ly c
omitt
ed•
Com
mite
d fie
lds
Frui
t far
mer
s (c
omm
erci
al
orch
ards
)•
Focu
s on
and
inve
st in
frui
ts•
Com
mite
d fie
lds,
tim
e an
d
mon
ey fo
r agr
icul
tura
l inp
uts
Regi
onal
trad
ers
Non-
re
frige
rate
d tra
nspo
rt,
resp
onsi
ble
for
orga
nizin
g th
e ha
rves
t, em
ploy
ing
labo
urer
s,
pack
agin
g, e
tc.
Furt
her v
alue
ad
ditio
n fo
r pr
oces
sed
frui
t
Smal
l and
la
rge
who
lesa
lers
(Man
dvi)
Mai
n m
arke
ts;
Kabu
l, M
azar
-e-
Shar
if, K
host
, He
rat,
Jala
laba
d an
d Ka
ndah
ar
Loca
l Re
taile
rs
Valu
e ad
ditio
n by
man
ually
cl
eani
ng
prod
uct t
o re
mov
e pa
ckag
ing
stra
w, d
ust
and
ston
es
Info
rmal
mar
ket
Form
al m
arke
t
Dom
estic
ally
co
nsum
ed fr
esh
frui
ts•
Grap
es•
Apric
ots
• Ap
ples
• Po
meg
rana
tes
• Ci
trus
• Ch
errie
s•
Plum
s
Inpu
t sup
ply
Prod
uctio
nAs
sem
bly
Proc
essi
ngDi
strib
utio
n
Dom
estic
mar
ket
(Gra
pes:
20-
40%
of t
otal
cro
p pr
oduc
tion
dom
estic
ally
con
sum
ed, r
est e
xpor
ted
or p
roce
ssed
to
drie
d go
ods)
Dom
estic
Val
ue A
dditi
on
Sim
ple
clea
ning
faci
litie
s
Grad
ing
faci
litie
s
Sort
ing
faci
litie
s
Pack
agin
g fa
cilit
ies
Cust
oms
offic
e
Fore
ign
reta
ilers
Inte
rnat
iona
l mar
ket
Expo
rt tr
ader
s•
Mar
gin
4-16
% fo
r gr
apes
exp
orte
d to
Pa
kist
an•
Cons
olid
ate
prod
uce
and
who
lesa
le to
in
tern
atio
nal m
arke
t•
Act a
s ga
teke
eper
s to
exp
ort
Expo
rted
fres
h fr
uits
• Gr
apes
US$
72.
5 m
illion
• Ap
ples
US$
29
milli
on•
Pom
egra
nate
s US
$ 20
milli
on
• M
elon
s US
$ 3.
6 m
illion
• W
ater
mel
ons
US$
3 m
illion
Top
8 ex
port
de
stin
atio
ns•
Paki
stan
• Be
laru
s•
Indi
a•
Fran
ce•
Sene
gal
• Ka
zakh
stan
• Ba
hrai
n•
Cana
da
Mid
dlem
en
and
villa
ge
leve
l tra
ders
Each
mov
ing
prod
uct s
hort
di
stan
ces.
Coop
erat
ion
with
tran
spor
t un
ions
Larg
e fr
uit p
rodu
cers
Trai
ning
on
expo
rtpr
oced
ures
Prep
arat
ion
on a
ndpa
rtic
ipat
ion
intra
de fa
irs
Afgh
an b
rand
thro
ugh
labe
lling
syst
em
Cata
logu
es o
fAf
ghan
fres
h fru
itsan
d ve
geta
bles
Expo
rt g
uide
for
fresh
frui
ts a
nd
vege
tabl
esCo
llabo
ratio
n w
ithin
tern
atio
nal
inst
itutio
ns
Com
mun
icat
ion
chan
nels
with
key
buye
rs
Regu
lar a
ndup
date
d m
arke
tin
form
atio
n
Stud
y to
urs
bygo
vern
men
tof
ficia
ls
Mar
ketin
g st
rate
gy
War
ehou
ses
in k
eym
arke
ts
Educ
ate
expo
rter
sab
out s
igne
d tra
deag
reem
ents
[ MOVING TO ACTION ]
61
MOVING TO ACTION
KEY REQUIREMENTS FOR EFFECTIVE IMPLEMENTATIONThe development of the future value chain for the Afghan FFV sector is a five-year project defined through a consul-tative process between Afghan public and private sector stakeholders. Achieving the strategic objectives and real-izing the future value chain depends heavily on the ability of sector stakeholders to start implementing and coordinating the activities defined in the PoA.
The PoA in and of itself will not alone suffice to ensure the sector’s sustainable development. Such development will require the coordination of various activities. While the execution of these activities will allow for the PoA’s targets to be achieved, success will ultimately depend on the ability of stakeholders to plan and coordinate actions in a focused, deliberate fashion. Seemingly unrelated activities must be synchronized across entities in the public, private and de-velopment sectors, with the additional need for local com-munities to participate.
To ensure the success of the PoA, it is necessary to create an appropriate framework for implementation. The following section presents some of the key conditions con-sidered necessary for successful implementation.
ESTABLISH AND OPERATIONALIZE A PUB-LIC AND PRIVATE SECTOR COORDINAT-ING BODY AND EXECUTIVE SECRETARIAT
FFV sector steering committee
A key success criterion for the FFV PoA is the ability to co-ordinate activities, monitor progress and mobilize resourc-es for implementation. It is recommended that a steering committee comprised of the key public and private sector entities be formed or supported ( if a similar entity already exists ). This will function as an information-sharing platform, with balanced representation of all major FFV stakeholders.
Overall it is proposed that the steering committee be re-sponsible for the following tasks related to PoA implementation :
� Coordinate and monitor the implementation of the PoA ; � Identify and recommend allocation of resources neces-
sary for the implementation of the PoA ; � Assess the effectiveness and impact of the PoA ; � Ensure consistency with the Government’s existing poli-
cies, plans and strategies, and align institutions’ and agencies’ internal plans and interventions with the PoA ;
� Elaborate and recommend revisions and enhancements to the PoA so that it continues to best respond to the
needs and long-term interests of the national business and export community ;
� Propose key policy changes to be undertaken, based on Strategy priorities, and promote these policy changes among national decision makers ;
� Guide the sector secretariat in the monitoring, coordi-nation, resource mobilization, and policy advocacy and communication functions to enable effective implemen-tation of the PoA ;
� Provide the sector secretariat with the mandate and the nec-essary resources to fulfil its functions in an effective manner.
Composition of the sector steering committee
It is recommended that the FFV steering committee be comprised of key entities involved in the sector, with special focus on ensuring equitable involvement of both the public and private sectors.
Secretariat
A secretariat will assist the steering committee by acting as an operational body responsible for the daily coordination, monitoring and mobilization of resources to implement the PoA. It is proposed that it take on this role with technical support from key ministries and technical agencies. The secretariat will be composed of 1–2 technical operators.
The core responsibilities of the sector secretariat should be to : � Support functioning of the FFV steering committee ; � Collect and manage data to monitor progress and impact
of PoA implementation ; � Liaise with and coordinate development partners for PoA
implementation ; � Elaborate project proposals and build partnerships to
mobilize resources to implement the PoA ; � Follow up on policy advocacy recommendations from the
FFV steering committee ; � Ensure effective communication and networking for suc-
cessful PoA implementation.
Both the FFV steering committeeand its secretariat will work hand-in-hand with existing entities established to stream-line government operations and enhance donor operations. These include the NES secretariat and others. It is possi-ble that the secretariat will be accommodated as part of an existing entity with an extended mandate and resources allocated to it.
Photo: Fruits & Vegetables, FOX16501.jpg
STRATEGIC PLAN OF ACTION
64
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
Stra
tegi
c ob
ject
ive
1 : In
crea
se v
olum
es o
f pro
duct
ion
and
impr
ove
pric
e co
mpe
titiv
enes
s.
Oper
atio
nal
obje
ctiv
esAc
tiviti
esPr
iorit
y 1=
high
2=
med
3=
low
Impl
emen
tatio
n pe
riod
Targ
ets*
Lead
and
sup
porti
ng
impl
emen
ters
2017
2018
2019
2020
2021
2022
1.1.
Stre
ngth
en
asso
ciat
ions
ope
r-at
ing
in th
e se
ctor
.
1.1.
1. E
ncou
rage t
he d
evelo
pmen
t of f
armer
s’ as
socia
tions
and
their
integ
ratio
n int
o lar
ger s
ecto
r ass
ociat
ions
.
• Re
view
the r
egist
ratio
n opt
ions
for f
armer
s’ as
socia
tions
thro
ugh t
he re
levan
t gov
ernm
ent b
odies
. Con
sider
and
infor
m p
rodu
cers
that
curre
ntly
coop
erati
ves
are s
ubjec
t to
20 %
tax a
nnua
lly, w
hich
leave
s th
em le
ss c
apab
le of
com
petin
g. C
onsid
er d
ecen
traliz
ation
of
appr
oval
for a
pplic
ation
s and
addr
ess i
ssue
s to
strea
mlin
e the
regi
strati
on p
roce
ss.
• En
cour
age t
he d
evelo
pmen
t of f
armer
s’ as
socia
tions
by d
oing
bus
iness
such
as fa
rming
, inp
ut d
istrib
utio
n, st
orag
e, pr
oces
sing,
trad
-ing
, etc.
with
asso
ciatio
ns ra
ther
than
with
indi
vidua
l farm
ers.
2•
Regi
strati
on o
f unio
ns /
asso
ciatio
ns is
revis
ed an
d co
rrecti
ve m
easu
res ar
e int
egrat
ed•
At le
ast 1
00 m
embe
rs of
as
socia
tions
par
ticip
ate
Min
istry
of E
cono
my )
, M
inistr
y of J
ustic
e
1.1.
2. C
arry o
ut an
insti
tutio
nal b
ench
mark
ing p
rogr
amm
e for
secto
r ass
ociat
ions
to im
prov
e the
ir pe
rform
ance
by m
easu
ring
the e
f-fec
tiven
ess a
nd ef
ficien
cy o
f the
ir bu
sines
s prac
tices
. The
pro
gram
me s
houl
d su
rvey a
ll ac
tivity
area
s, inc
ludi
ng st
rateg
y and
gov
ern-
ance
, res
ourc
es an
d pr
oces
ses,
prod
ucts
and
servi
ces,
and
resul
ts m
easu
remen
t.
2•
Instit
utio
nal b
ench
mark
ing
prog
ramm
e ope
ratio
nal
and
bene
fiting
10
secto
r as
socia
tions
Min
istry
of C
omm
erce
an
d In
dust
ries
( MoI
C ), A
fgha
nistan
Ch
ambe
r of C
omm
erce
and
Indus
tries
( ACC
I )1.
1.3.
Cap
acita
te as
socia
tions
( with
a se
t quo
ta of
wom
en’s
asso
ciatio
ns ) i
n bu
sines
s and
fina
ncial
plan
ning
and
advo
catin
g fo
r the
se
ctor.
• Co
nduc
t wor
ksho
ps an
d sh
ort t
rainin
gs to
micr
o, sm
all an
d m
edium
-size
d en
terpr
ises (
MSM
Es ) i
n th
e se
ctor t
o ca
pacit
ate th
em in
bu
sines
s pl
annin
g, fi
nanc
ial s
kills
( e.g
. pro
per r
ecor
d ke
eping
) and
dev
elopi
ng b
ank p
ropo
sals
to e
nhan
ce th
eir fi
nanc
ial s
tandi
ng
shou
ld th
ey ev
er ap
ply f
or lo
ans.
• Th
roug
h a
serie
s of
wor
ksho
ps, r
adio
pro
gram
mes
and
the
deve
lopm
ent o
f out
reac
h m
ateria
l suc
h as
bro
chur
es, c
reate
awa
rene
ss
amon
g far
mer
s and
loca
l com
mun
ities
of r
eleva
nt an
d av
ailab
le fin
ancia
l ser
vices
for t
he se
ctor i
n Isl
amic
bank
ing.
• Co
ach
asso
ciatio
n lea
ders
in m
arket
infor
mati
on an
d bu
lk m
arketi
ng.
• Tra
in lea
ders
of fa
rmer
s’ as
socia
tions
to m
ediat
e with
exter
nal r
esou
rce i
nstit
utio
ns, s
uch a
s the
Gov
ernm
ent a
nd fin
ancia
l insti
tutio
ns.
1•
Betw
een
10 an
d 15
secto
r as
socia
tions
par
ticip
ate in
ca
pacit
y-bu
ilding
train
ing,
out o
f whic
h fiv
e are
wom
en’s
asso
ciatio
ns
Min
istry
of F
orei
gn
Affa
irs ( M
oFA )
, M
inistr
y of F
inanc
e ( M
oF )
1.1.
4. To
facil
itate
the i
nteg
ratio
n of
the v
alue c
hain
and
prov
ide a
supp
ortiv
e bus
iness
envir
onm
ent f
or fa
rmer
s, as
sess
the f
easib
ility
of
estab
lishin
g “c
omm
odity
mark
ets” a
t majo
r citi
es an
d m
arket
cent
res fo
r fru
its an
d ve
getab
les2
• On
e fea
sibili
ty stu
dy
cond
ucted
M
AIL,
secto
r ass
ocia-
tions
, MoC
I
1.2.
Incr
ease
co-
ordi
natio
n fo
r sec
-to
r dev
elop
men
t ef
forts
.
1.2.
1. E
stabl
ish a
worki
ng g
roup
for t
he F
FV se
ctor (
e.g.
a bo
ard ).
Wor
king
grou
p to
be a
hig
h-lev
el pl
atfor
m co
mpo
sed
of p
ublic
and
priva
te se
ctor s
takeh
olde
rs, in
cludi
ng se
ctor f
irms,
asso
ciatio
ns, e
.g. U
nion
of F
ruits
and
Vege
tables
, am
ong
othe
rs.
• Th
e wor
king
grou
p is
to st
imul
ate d
ialog
ue an
d co
ordi
natio
n wi
th se
ctor s
takeh
olde
rs th
roug
h reg
ular
mee
tings
.•
Addi
tiona
lly, s
uch
a plat
form
will
ensu
re im
plem
entat
ion
of th
is St
rateg
y, res
ourc
e mob
iliza
tion
and
polic
y adv
ocac
y.
1•
Wor
king
grou
p ( e
.g. b
oard
) fo
r the
secto
r esta
blish
ed•
Mee
tings
of w
orkin
g gr
oup
are h
eld m
onth
ly
MAI
L, se
ctor
asso
ciatio
ns
1.2.
2. C
reate
techn
ical c
omm
issio
ns w
ithin
the h
igh-
level
platf
orm
to o
verse
e the
dev
elopm
ent,
impl
emen
tatio
n an
d op
erati
on o
f tec
h-nic
al ac
tiviti
es w
ithin
the f
ield
of th
eir sp
ecifi
c com
miss
ion.
• Cr
eate
a com
mitt
ee w
ithin
the w
orkin
g gr
oup,
e.g.
com
mitt
ee o
n skil
ls de
velo
pmen
t, co
mpr
ising
priv
ate an
d pu
blic
secto
r stak
ehol
d-er
s, to
reinf
orce
invo
lvem
ent o
f the
priv
ate se
ctor i
n ex
tensio
n se
rvice
s and
upg
rade a
grib
usine
ss-re
levan
t trai
ning
and
educ
ation
.•
Crea
te a t
echn
ical c
omm
ittee
with
in th
e wor
king
grou
p, e.
g. a
com
mitt
ee o
n co
ld c
hain
deve
lopm
ent,
com
prisi
ng p
rivate
and
publ
ic se
ctor s
takeh
olde
rs, in
cludi
ng re
pres
entat
ives f
rom
relev
ant a
ncill
ary se
rvice
s’ fir
ms s
uch a
s tran
spor
t com
panie
s. Th
e com
mitt
ee w
ill
help
pro
mot
e and
dev
elop
cold
chain
infra
struc
ture
base
d on
secto
r nee
ds.
2•
Com
mitt
ee o
n sk
ills
deve
lopm
ent a
nd co
mm
ittee
on
cold
chain
dev
elopm
ent
form
ed an
d op
erati
onal
• M
eetin
gs o
f com
mitt
ees a
re he
ld ev
ery t
wo m
onth
s
MAI
L, se
ctor
asso
ciatio
ns
1.3.
Impr
ove
pro-
duct
ivity
by
en-
hanc
ing
the
avai
l-ab
ility
of q
ualit
y ( n
on-s
eed )
inpu
ts.
1.3.
1. P
rom
ote i
nves
tmen
t in
dom
estic
ferti
lizer
pro
ducti
on.
• Ide
ntify
inve
stmen
t opp
ortu
nities
to :
–Se
t up
fertil
izer p
rodu
ction
plan
ts in
key
subn
ation
al lo
catio
ns ( c
lose
to m
ajor c
onsu
mpt
ion
or in
put s
uppl
y ce
ntre
s ). T
ake
into
cons
ider
ation
regi
on /
crop
-spe
cific
fertil
izer r
equir
emen
ts. –
Estab
lish
storag
e fac
ilitie
s for
ferti
lizer
s in
cent
ral n
odes
( pub
lic–p
rivate
par
tner
ship
( PPP
) ). F
ertil
izers
coul
d th
en b
e dist
ribut
ed
by w
holes
alers
and
retail
ers f
rom
thes
e cen
tral n
odes
.•
Deve
lop
inves
tmen
t inc
entiv
es to
revit
alize
the
dom
estic
ferti
lizer
indu
stry f
or d
omes
tic c
onsu
mpt
ion
( and
pot
entia
l reg
iona
l exp
ort )
by re
vam
ping
exist
ing p
rodu
ction
and
poten
tially
supp
ortin
g ne
w fer
tilize
r plan
ts.•
Supp
ort t
he d
evelo
pmen
t of b
ank p
ropo
sals
for i
dent
ified
inve
stmen
t opp
ortu
nities
in d
omes
tic fe
rtiliz
er p
rodu
ction
.
3•
Three
ferti
lizer
plan
ts se
t up
in m
ain p
rodu
cing
prov
inces
MoC
I ( Af
ghan
ista
n In
vest
men
t Sup
port
Agen
cy ),
MoF
* Ta
rget
s ar
e in
dica
tive
only
and
will
be
the
subj
ect o
f fur
ther
refin
emen
t at b
egin
ning
of t
he im
plem
enta
tion
man
agem
ent s
tage
. Sim
ilarly
, the
lead
and
sup
porti
ng im
plem
ente
rs
colu
mn
rem
ains
indi
cativ
e be
caus
e im
plem
enta
tion
will
requ
ire c
olle
ctiv
e ef
forts
, for
whi
ch a
dditi
onal
inst
itutio
ns m
ay b
e ad
ded.
[ STRATEGIC PLAN OF ACTION ]
65
Stra
tegi
c ob
ject
ive
1 : In
crea
se v
olum
es o
f pro
duct
ion
and
impr
ove
pric
e co
mpe
titiv
enes
s.
Oper
atio
nal
obje
ctiv
esAc
tiviti
esPr
iorit
y 1=
high
2=
med
3=
low
Impl
emen
tatio
n pe
riod
Targ
ets*
Lead
and
sup
porti
ng
impl
emen
ters
2017
2018
2019
2020
2021
2022
1.3.
Impr
ove
pro-
duct
ivity
by
en-
hanc
ing
the
avai
l-ab
ility
of q
ualit
y ( n
on-s
eed )
inpu
ts.
1.3.
2. In
a m
ulti-
stake
hold
er se
tting
, dev
elop
a plan
for t
he sa
le of
envir
onm
ental
ly fri
endl
y, aff
orda
ble p
estic
ides
to p
rodu
cers
( inclu
d-ing
a di
strib
utio
n m
odel
). Sp
ecifi
cally
pro
mot
e the
sale
of b
iope
sticid
es an
d pe
sticid
es o
f plan
t orig
in.3
• Di
strib
utio
n m
odel
deve
lope
dM
AIL
1.3.
3. D
evelo
p an
expo
rt as
sistan
ce n
etwor
k dire
ctory
for s
ecto
r com
panie
s.
• De
velo
p a c
ompr
ehen
sive d
ataba
se ( i
nclu
ding
cont
act d
etails
) on :
–Op
erati
ng co
mpa
nies e
ngag
ed in
the s
uppl
y of c
ritica
l inp
uts /
servi
ces (
e.g.
ferti
lizer
s, pe
sticid
es, e
quip
men
t, pa
ckag
ing m
ateri-
als, t
ransp
ort c
ompa
nies )
to fr
uit an
d ve
getab
le gr
ower
s. –
Prod
uct d
esig
n an
d de
velo
pmen
t com
panie
s. –
Avail
able
quali
ty ce
rtific
ation
bod
ies.
–Ex
port
mark
eting
and
prom
otio
n. –
Stati
stica
l and
cred
it inf
orm
ation
. –
Foca
l poi
nts i
n rel
evan
t mini
stries
.•
Diss
emina
te th
e da
tabas
e as
a ye
llow
book
to b
e av
ailab
le to
key s
takeh
olde
rs ( p
rodu
cers,
exp
orter
s ) th
roug
h a c
atalo
gue,
webs
ites
and
poste
rs in
loca
l mark
ets ( p
artic
ularl
y to
increa
se d
issem
inatio
n to
farm
ers’
asso
ciatio
ns ),
amon
g ot
hers.
3•
Yello
w bo
ok d
evelo
ped
and
diss
emina
tedM
oCI,
MAI
L, Ce
ntral
St
atisti
cs O
rgan
izatio
n,
MoF
A
1.4.
Ens
ure
and
prom
ote
the
use
of
certi
fied,
mar
ket-
orie
nted
see
ds a
nd
youn
g tre
es.
1.4.
1. S
uppo
rt th
e stre
ngth
ening
of e
xistin
g co
mm
ercial
nur
serie
s in
the c
ount
ry
• Up
date
the
cens
us o
f exis
ting
nurse
ries i
n Af
ghan
istan
. Col
lect i
nfor
mati
on o
n th
e nu
mbe
r of n
urse
ries,
avail
able
varie
ties,
statu
s of
prod
uctio
n, he
alth s
tatus
, pes
t dise
ase c
ontro
l sys
tems,
man
agem
ent p
ractic
es, c
urren
t con
strain
ts an
d cha
lleng
es ( e
.g. m
anag
emen
t, av
ailab
ility
of p
lantin
g m
ateria
l, etc
. ), am
ong
othe
rs. D
evelo
p co
rrecti
ve m
easu
res an
d po
licies
, acc
ordi
ngly.
• Th
roug
h wo
rksho
ps an
d an
aware
ness
-raisi
ng ca
mpa
ign,
supp
ort t
he re
gistr
ation
of e
xistin
g fru
it tre
e nur
serie
s.
3•
Cens
us u
pdate
dM
AIL,
Afg
hanis
tan
Natio
nal N
urse
ry Gr
ower
s’ Or
ganiz
ation
( A
NNGO
)
1.4.
2. S
uppo
rt th
e esta
blish
men
t of f
ruit
tree n
urse
ries i
n ke
y loc
ation
s. If
cons
idere
d ne
cess
ary, s
uppo
rt th
e esta
blish
men
t of n
ew
nurse
ries.
• Ide
ntify
loca
tions
with
pot
entia
l for
the
estab
lishm
ent o
f fru
it tre
e nu
rserie
s bas
ed o
n en
ablin
g fac
tors
such
as ac
cess
ibili
ty of
wate
r, lan
d and
wea
ther-r
elated
issu
es ( s
oil, w
eathe
r patt
erns
), the
exist
ence
of fr
uit gr
ower
s and
mark
ets. In
paral
lel, fa
cilita
te ac
cess
to la
nd.
2•
At le
ast 5
00 n
urse
ries
estab
lishe
d in
key l
ocati
ons,
inclu
ding
Kan
daha
r and
M
azar-
e-Sh
arif
MAI
L, M
inistr
y of
Econ
omy,
Afgh
anist
an
Indep
ende
nt La
nd
Auth
ority
, Afg
hanis
tanNa
tiona
l Hor
ticul
ture
Deve
lopm
ent
Orga
nizati
on1.
4.3.
Sup
port
exist
ing ef
forts
to d
evelo
p a c
ertif
ied fr
uit tr
ees p
rogr
amm
e.
• W
ork w
ith A
NNGO
to su
ppor
t the
expa
nsion
of pr
ogram
mes
for t
he de
velo
pmen
t of d
iseas
e-fre
e cer
tifica
tion s
chem
es. A
sses
s the
sta-
tus o
f the
ANN
GO in
itiati
ve an
d id
entif
y area
s of s
uppo
rt req
uired
. If n
eces
sary
: –
Advo
cate
and
enlis
t the
supp
ort o
f farm
ers’
grou
ps, u
nions
and
coop
erati
ves,
as w
ell as
inpu
t dea
lers.
–Fu
rther
defi
ne th
e ro
les o
f MAI
L an
d AN
NGO,
as w
ell as
oth
er re
levan
t ins
titut
ions
, inc
ludi
ng th
e Af
ghan
istan
Nati
onal
Stan
dard
s Au
thor
ity ( A
NSA )
.•
Deve
lop
a pro
posa
l to
stren
gthe
n th
e hum
an re
sour
ce ca
pacit
y of s
eed
certi
ficati
on b
odies
.
3•
Asse
ssm
ent o
f exis
ting
certi
ficati
on p
rogr
amm
es
avail
able
• Pr
opos
al fo
r stre
ngth
ening
an
d ex
pand
ing av
ailab
le sc
hem
es is
dev
elope
d an
d co
rrecti
ve m
easu
res ar
e in
plac
e
MAI
L, A
NNGO
1.4.
4. La
unch
an in
itiati
ve to
mul
tiply
impr
oved
seed
varie
ties.
Parti
cular
ly, co
nsid
ering
the o
fficia
l see
d pr
oduc
tion
syste
m ( A
RIA,
Im
prov
ed S
eeds
Ent
erpr
ises,
and
priva
te co
mpa
nies )
do
not p
rodu
ce su
fficie
nt q
uant
ities
of s
eeds
( i.e.
vege
tables
), de
sign
and
launc
h an
initi
ative
focu
sing
on ve
getab
le se
ed p
rodu
ction
.
• Es
tablis
h se
ed m
ultip
licati
on p
artn
ersh
ips
by in
crea
sing
techn
ical c
oope
ratio
n an
d co
ordi
natio
n wi
th s
eed
indus
tries
and
insti
tutes
th
roug
h m
onth
ly m
eetin
gs.
• Su
ppor
t see
d en
terpr
ises t
o pr
oduc
e im
prov
ed /
certi
fied
vege
table
seed
s.•
Stren
gthe
n ex
isting
seed
mul
tiplic
ation
initi
ative
s, su
ch as
the a
bove
-men
tione
d.
2•
Prog
ramm
e for
mul
tiplic
ation
of
impr
oved
seed
varie
ties
launc
hed
MAI
L, A
NNGO
, MoC
I
66
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
Stra
tegi
c ob
ject
ive
1 : In
crea
se v
olum
es o
f pro
duct
ion
and
impr
ove
pric
e co
mpe
titiv
enes
s.
Oper
atio
nal
obje
ctiv
esAc
tiviti
esPr
iorit
y 1=
high
2=
med
3=
low
Impl
emen
tatio
n pe
riod
Targ
ets*
Lead
and
sup
porti
ng
impl
emen
ters
2017
2018
2019
2020
2021
2022
1.4.
Ens
ure
and
prom
ote
the
use
of
certi
fied,
mar
ket-
orie
nted
see
ds a
nd
youn
g tre
es.
1.4.
5. D
evelo
p a m
ulti-
tier p
rogr
amm
e to
prom
ote t
he u
se an
d cu
ltiva
tion
of h
igh-
yield
ing m
arket-
drive
n cr
ops t
o far
mer
s, far
mer
s’ as
socia
tions
, coo
perat
ives a
nd u
nions
, as a
mea
ns to
bot
h inc
rease
yield
s and
impr
ove t
he d
issem
inatio
n of
mark
et inf
orm
ation
and
input
dist
ribut
ion
servi
ces.
Prom
ote s
pecif
ic va
rietie
s bas
ed o
n lo
cal a
groc
limati
c con
ditio
ns, p
redict
able
mark
et de
man
d an
d m
arket
perfo
rman
ce.
• Se
t up
an in
stitu
tiona
l and
tech
nical
fram
ewor
k to
desig
n an
d im
plem
ent t
he p
rogr
amm
e. Am
ong
the m
ain ac
tiviti
es, i
nclu
de :
–Cr
eate
mot
her t
ree n
urse
ries,
to fu
nctio
n als
o as
dem
onstr
ation
farm
s for
bes
t prac
tices
on
seed
selec
tion,
pro
ducti
on an
d qu
ality
contr
ol, t
argeti
ng fa
rmer
s and
exten
sion a
gents
thro
ugh t
he pr
ovisi
on of
parti
cipato
ry tra
ining
s. Pr
ovid
e tec
hnica
l sup
port
to fa
rmer
s on
varie
ty se
lectio
n ( h
igh-
quali
ty an
d di
seas
e-fre
e vari
eties
) and
inten
sive c
ultiv
ation
of f
ruits
/ ve
getab
les.
–Or
gani
ze p
erio
dic
info
rmati
onal
mee
tings
betw
een
trade
rs, p
roce
ssor
s an
d re
pres
entat
ives
of fa
rmer
s as
socia
tions
to e
xcha
nge
infor
mati
on o
n m
arket-
relate
d iss
ues s
uch
as p
ricing
and
varie
tal m
arket
requir
emen
ts. P
rovid
e co
achin
g du
ring
mee
tings
to o
p-tim
ize in
form
ation
flow
and
relev
ance
. –
Desig
n and
roll
out s
hort
cour
ses t
o stre
ngth
en th
e mark
eting
skill
s and
mark
et inf
orm
ation
know
ledge
of ex
tensio
n staf
f. Top
ics to
inc
lude
: mark
et op
portu
nities
for l
ocal
varie
ties,
such
as n
iche m
arkets
( inc
ludi
ng o
rgan
ic ) a
nd p
remium
s.
2•
A pl
an to
pro
mot
e hig
h-yie
lding
seed
s is d
evelo
ped
MAI
L, A
NNGO
, MoC
I
1.5.
Incr
ease
the
qual
ity o
f and
ac-
cess
to e
xten
sion
se
rvic
es.
1.5.
1. R
einfo
rce t
he im
plem
entat
ion
and
enfo
rcem
ent o
f the
Stra
tegic
Fram
ewor
k of M
AIL o
n ex
tensio
n se
rvice
s.
• De
fine
role
s an
d re
spon
sibili
ties
of in
stitu
tions
in e
xtens
ion
serv
ices
pro
visio
n an
d fo
rmali
ze th
em th
roug
h m
emor
andu
ms
of
unde
rstan
ding
.•
Harm
onize
exten
sion s
ervic
es by
deve
lopi
ng m
inim
um se
rvice
stan
dard
s and
sugg
est s
teps t
o im
prov
e coo
rdina
tion b
etwee
n the
pub-
lic se
ctor,
priva
te se
ctor a
nd d
evelo
pmen
t age
ncies
.•
Requ
est a
dvice
on
best
prac
tices
and
mini
mum
servi
ce st
anda
rds o
f exte
nsio
n se
rvice
s fro
m In
dia.
2•
Strat
egic
Fram
ewor
k of M
AIL
on ex
tensio
n se
rvice
s rev
ised
• M
inim
um se
rvice
stan
dard
s de
velo
ped
MAI
L, M
inistr
y of
Labo
ur, S
ocial
Af
fairs,
Mar
tyrs a
nd
Disa
bled
( MoL
SAM
D ),
Mini
stry o
f Edu
catio
n,
Mini
stry o
f Hig
her
Educ
ation
, Mini
stry o
f Co
mm
unica
tions
and
Infor
mati
on Te
chno
logy
1.5.
2. Id
entif
y inc
entiv
es to
exten
d th
e pres
ence
of e
xtens
ion
agen
ts ac
ross
the c
ount
ry.
• Co
nduc
t a su
rvey t
o id
entif
y pot
entia
l inc
entiv
es ( e
.g.,
finan
cial,
hous
ing, t
ravel
allow
ance
s, m
edica
l allo
wanc
es, e
duca
tiona
l allo
w-an
ces f
or ch
ildren
, etc.
) for
exten
sion
agen
ts to
wor
k in
the m
ost d
ifficu
lt are
as.
• Ide
ntify
and
estab
lish
reward
s and
ince
ntive
s to
mot
ivate
quali
fied
exten
sion
agen
ts, su
ch as
opp
ortu
nities
to co
ntinu
e hig
her e
duca
-tio
n, an
d en
cour
age t
hem
to fo
rm p
rofes
siona
l soc
ieties
.
3•
Surve
y con
ducte
d•
Incen
tives
iden
tified
MAI
L, M
oLSA
MD
1.5.
3. C
reate
a sch
eme t
o inc
rease
the r
etent
ion
of q
ualif
ied m
anag
emen
t and
tech
nical
staff
in ex
tensio
n se
rvice
s.
• De
velo
p a c
areer
stru
cture
for p
ublic
secto
r exte
nsio
n pe
rsonn
el as
par
t of a
sche
me t
o im
prov
e rew
ards a
nd in
cent
ives.
• Pr
ovid
e con
tinuo
us tr
aining
to ex
tensio
n pe
rsonn
el as
par
t of t
heir
caree
r dev
elopm
ent.
• Pr
ovid
e trai
ning
in tec
hnica
l and
man
ager
ial sk
ills t
o ex
tensio
n pe
rsonn
el to
enab
le th
em to
occ
upy h
ighe
r pos
ition
s.
2•
Sche
me t
o ret
ain q
ualif
ied
man
agem
ent a
nd te
chnic
al sta
ff in
exten
sion
servi
ces
deve
lope
d
MAI
L, M
oLSA
MD,
M
inistr
y of H
ighe
r Ed
ucati
on, M
inistr
y of
Educ
ation
1.5.
4. D
evelo
p a p
rogr
amm
e to
certi
fy fem
ale ex
tensio
n se
rvice
pro
vider
s.
• Tra
in wo
men
exten
sion s
ervic
e pro
vider
s to e
nabl
e wom
en-to
-wom
en se
rvice
deliv
ery a
t eve
ry sta
ge of
the v
alue c
hain,
with
parti
cular
em
phas
is on
the e
arly s
tages
of t
he va
lue c
hain
( e.g
. harv
estin
g, so
rting
) whe
re th
ere is
a str
ong
female
pres
ence
.
2•
At le
ast 5
0 fem
ale ex
tensio
n se
rvice
pro
vider
s are
recru
ited
and
traine
d
Min
istry
of W
omen
’s
Affa
irs, M
AIL,
MoL
SAM
D, M
inistr
y of
Hig
her E
duca
tion,
M
inistr
y of E
duca
tion
1.5.
5. D
esig
n an
d im
plem
ent s
olut
ions
for r
emot
e deli
very
of ex
tensio
n se
rvice
s.
• La
unch
an
agric
ultu
re co
achin
g tel
evisi
on p
rogr
amm
e an
d de
velo
p rad
io s
pots
to re
ach
farm
ers
in ru
ral a
reas,
to o
verc
ome
limite
d m
obili
ty.•
Deve
lop
a pro
gram
me t
o int
rodu
ce a
free ‘
farm
er he
lplin
e’ th
roug
h MAI
L, us
ing m
obile
pho
nes a
nd in
par
tner
ship
with
mob
ile se
rvice
pr
ovid
ers,
to fu
nctio
n on a
daily
basis
. Fea
tures
wou
ld in
clude
the r
egist
ration
of fa
rmer
s for
the h
elplin
e ser
vice a
nd th
e esta
blish
men
t of
a ce
ntral
offi
ce o
perat
ed b
y agr
icultu
ral ex
perts
. This
servi
ce w
ould
be a
ble t
o pr
ovid
e inf
orm
ation
to il
liter
ate p
eopl
e in r
ural
areas
. Th
e farm
er h
elplin
e will
also
supp
ort t
he id
entif
icatio
n of
com
mon
pro
blem
s and
tren
ds fa
ced
by se
ctor f
armer
s.
2•
Agric
ultu
ral te
levisi
on
prog
ramm
e and
four
radi
o sp
ots a
re de
velo
ped
and
broa
dcas
t
MAI
L, M
oLSA
MD,
M
inistr
y of
Com
mun
icatio
ns an
d Inf
orm
ation
Tech
nolo
gy
[ STRATEGIC PLAN OF ACTION ]
67
Stra
tegi
c ob
ject
ive
1 : In
crea
se v
olum
es o
f pro
duct
ion
and
impr
ove
pric
e co
mpe
titiv
enes
s.
Oper
atio
nal
obje
ctiv
esAc
tiviti
esPr
iorit
y 1=
high
2=
med
3=
low
Impl
emen
tatio
n pe
riod
Targ
ets*
Lead
and
sup
porti
ng
impl
emen
ters
2017
2018
2019
2020
2021
2022
1.5.
Incr
ease
the
qual
ity o
f and
ac-
cess
to e
xten
sion
se
rvic
es.
1.5.
6. C
apac
itate
input
dea
lers t
o pr
ovid
e exte
nsio
n se
rvice
s.
• Th
roug
h sh
ort c
ourse
s and
wor
ksho
ps, e
ncou
rage i
nput
dea
lers t
o pr
ovid
e exte
nsio
n se
rvice
s to
farm
ers.
• Tra
in inp
ut d
ealer
s in :
–Be
st pr
actic
es fo
r pro
ducti
on in
the s
ecto
r. –
Use o
f cer
tified
inpu
ts.•
Prop
er ap
plica
tion
of in
puts
( e.g
. dos
es o
f fer
tilize
rs ).
2•
An an
nual
shor
t cou
rse is
ro
lled
out,
bene
fiting
50
input
dea
lers y
early
MAI
L, M
inistr
y of
Educ
ation
, Mini
stry
of H
ighe
r Edu
catio
n M
oLSA
MD
1.6.
Pro
mot
e kn
owle
dge
of b
est
prac
tices
in th
e se
ctor
.
1.6.
1. D
esig
n a m
aster
train
ing p
rogr
amm
e to
fom
ent b
est p
ractic
es in
the s
ecto
r.
• Co
mm
ittee
on
skill
s dev
elopm
ent t
o su
ppor
t the
des
ign
of a
mas
ter tr
aining
pro
gram
me o
n be
st pr
actic
es in
pro
ducti
on, h
arves
t and
po
stharv
est h
andl
ing.
• De
velo
p cu
rricu
la an
d tra
ining
mate
rials.
• Ide
ntify
key f
armer
s’ or
ganiz
ation
s, co
oper
ative
s and
unio
ns to
serve
as n
uclei
for s
elect
pilo
t init
iative
s : –
Evalu
ate th
e rea
ch o
f farm
ers’
orga
nizati
ons a
nd th
eir p
ast w
ork i
n th
e sec
tor v
alue c
hain.
–Ev
aluate
the i
mpl
emen
tatio
n ca
pacit
y of s
electe
d or
ganiz
ation
s and
crea
te a p
rofil
e for
each
org
aniza
tion.
• Tra
in fac
ilitat
ors i
n m
odul
es in
cludi
ng :
–Pr
oduc
tion,
pos
tharv
est a
nd p
lannin
g fo
r farm
ers.
–Ho
w do
es th
e mark
et wo
rk? –
Wha
t is v
alue a
dditi
on? H
ow is
valu
e add
ed?
–W
hat d
o bu
yers
want
? ( do
mes
tic an
d fo
reign
buy
er re
quire
men
ts ).
–Co
ntrac
ts, n
egot
iatio
ns an
d bu
ilding
relat
ions
hips.
1•
Mas
ter tr
aining
pro
gram
me
desig
ned
• At
leas
t 50
facili
tator
s are
traine
d
MAI
L, M
inistr
y of
Educ
ation
1.6.
2. R
oll o
ut th
e mas
ter tr
aining
pro
gram
me i
n th
e main
pro
ducin
g pr
ovinc
es o
f Afg
hanis
tan :
• De
velo
p de
mon
strati
on p
lots
in far
mer
field
sch
ools
to s
howc
ase
the
use
of a
ltern
ative
gro
wing
sys
tems
( e.g
. diff
eren
t sys
tems
of
grap
e trel
lising
) and
stim
ulate
disc
ussio
n of
their
pot
entia
l ben
efits.
• Th
roug
h prac
tical
traini
ng ( e
.g. in
farm
er fie
ld sc
hool
s ), c
apac
itate
farm
ers i
n bes
t farm
ing pr
actic
es, c
over
ing ha
rvesti
ng an
d pos
thar-
vest
hand
ling,
with
an em
phas
is on
sanit
ary an
d ph
ytosa
nitary
issu
es an
d tec
hnica
l barr
iers t
o tra
de. T
opics
to in
clude
: –
Pre-
harve
sting
: »
Prop
er u
se o
f cer
tified
seed
s. »
Prac
tical
dem
onstr
ation
s of b
est p
ractic
es o
n pr
oduc
tion
prac
tices
, e.g
. thin
ning,
pru
ning,
reco
mm
enda
tions
of f
ertil
izers
and
pesti
cides
( inc
ludi
ng en
ablin
g th
e ide
ntifi
catio
n of
alter
ed p
estic
ides
). »
Impr
oving
meth
ods o
f irri
gatio
n m
anag
emen
t ( Im
prov
ed, l
ow-c
ost a
nd w
ater s
aving
tech
nolo
gy ).*
–Ha
rvesti
ng :
»Be
st pr
actic
es in
harv
estin
g tec
hniq
ues (
e.g.
tim
ing o
f harv
est ).
Crea
te aw
arene
ss o
n lo
ss o
f qua
lity,
unifo
rmity
and
pro
duct
valu
e ( e.
g. id
eal h
arves
ting
time t
o m
axim
ize su
gar c
onten
t ) wh
en p
ractis
ing in
adeq
uate
harve
sting
meth
ods.
–Po
stharv
est :
»So
rting
, grad
ing o
f pro
ducts
. »
Pest
cont
rol i
n sto
rage f
acili
ties.
• Co
mpl
emen
t prac
tical
traini
ng w
ith d
issem
inatio
n of
info
rmati
on o
n be
st far
ming
prac
tices
thro
ugh
othe
r cha
nnels
, inc
ludi
ng w
ork-
shop
s to
farm
ers’
asso
ciatio
ns, r
adio
pro
gram
mes
, pos
ters a
nd le
aflets
.
1•
Mas
ter tr
aining
pro
gram
me
rolle
d ou
t and
ben
efitin
g 2,
000
farm
ers
MAI
L, M
inistr
y of
Educ
ation
, Mini
stry o
f Co
mm
unica
tion
and
Infor
mati
on Te
chno
logy
* S
peci
fic a
ctio
ns to
impr
ove
irrig
atio
n m
anag
emen
t sys
tem
s ha
ve b
een
outli
ned
by th
e E
xecu
tive
Com
mitt
ee o
n P
rivat
e S
ecto
r Dev
elop
men
t, W
orki
ng G
roup
2: A
gric
ultu
re, T
rade
and
SM
Es
(Priv
ate
Sec
tor R
efor
m P
riorit
y #
1). T
he F
resh
Fru
its a
nd V
eget
able
s S
trate
gy is
alig
ned
to a
nd s
uppo
rtive
of t
hese
effo
rts.
68
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
Stra
tegi
c ob
ject
ive
1 : In
crea
se v
olum
es o
f pro
duct
ion
and
impr
ove
pric
e co
mpe
titiv
enes
s.
Oper
atio
nal
obje
ctiv
esAc
tiviti
esPr
iorit
y 1=
high
2=
med
3=
low
Impl
emen
tatio
n pe
riod
Targ
ets*
Lead
and
sup
porti
ng
impl
emen
ters
2017
2018
2019
2020
2021
2022
1.6.
Pro
mot
e kn
owle
dge
of b
est
prac
tices
in th
e se
ctor
.
1.6.
3. S
uppo
rt th
e sec
tor w
ith ef
fectiv
e R&D
and
best
prac
tices
dev
elopm
ent.
• En
cour
age R
&D ac
tiviti
es re
lated
to fr
uit an
d ve
getab
le pr
oduc
ts. To
pics
to in
clude
: –
Basic
rese
arch
for n
ew va
rietie
s pro
ducti
on ( e
.g. v
egeta
ble h
ybrid
seed
pro
ducti
on ).
–Pe
st co
ntro
l. –
Posth
arves
t man
agem
ent.
–Im
prov
emen
t of c
rop
varie
ties (
high
-yiel
ding
resis
tant v
arieti
es an
d hy
brid
s ).
–M
ethod
s to
exten
d se
ason
pro
ducti
on ( g
reenh
ouse
hor
ticul
ture
prod
uctio
n, lo
w tu
nnel
prop
agati
on o
f see
dling
s ).
–Inn
ovati
ons i
n pa
ckag
ing.
–Al
terna
tive s
torag
e meth
ods.
• Di
ssem
inate
resul
ts th
roug
h tri
als an
d de
mon
strati
ons t
o pr
oduc
ers’
asso
ciatio
ns.
• De
velo
p pi
lot i
nitia
tives
and
app
ly pi
lot d
emon
strati
on tr
ials
( field
exp
erim
ents
) to
new
varie
ties,
new
crop
s an
d ne
w pr
oduc
tion
techn
olog
ies.
• Or
ganiz
e exc
hang
e pro
gram
mes
betw
een A
fgha
n MSM
Es, p
rodu
cers’
asso
ciatio
ns, a
gron
omist
s and
exten
sion w
orke
rs wi
th the
ir pe
ers
in ot
her c
ount
ries (
e.g.
Indi
a, Pa
kistan
) to
enco
urag
e exc
hang
e of b
est p
ractic
es.
3•
Ten
resea
rch
studi
es
cond
ucted
on
diffe
rent t
opics
• Fiv
e pilo
t dem
onstr
ation
s pe
r yea
r•
Two
flags
hip p
rojec
ts pe
r ye
ar•
Two
exch
ange
pro
gram
mes
or
ganiz
ed p
er ye
ar
Afgh
anis
tan
Rese
arch
an
d Ev
alua
tion
Unit,
Pl
ant B
iotec
hnol
ogy
Labo
rator
y, M
AIL,
Mini
stry o
f Rur
al Re
habi
litati
on
and
Deve
lopm
ent
( Afg
hanis
tan In
stitu
te of
Rur
al De
velo
pmen
t ),
Mini
stry o
f Pub
lic
Healt
h
1.7.
Stre
ngth
en
and
expa
nd c
om-
mer
cial
farm
ing.
1.7.
1. Tr
ain co
mm
ercial
orc
hard
man
ager
s thr
ough
the d
esig
n an
d de
velo
pmen
t of s
hort
cour
ses o
n :
• Ide
ntifi
catio
n of
goo
d qu
ality
plan
ting
mate
rial.
• Ef
ficien
t use
of w
ater a
nd al
terna
tive i
rriga
tion
syste
ms.
• Bu
sines
s and
orch
ard m
anag
emen
t and
mec
haniz
ation
( eco
nom
ic ret
urn o
n inv
estm
ent ;
shor
test le
ad tim
e to f
irst c
omm
ercial
harve
st ;
cons
isten
cy o
f pro
ducti
on, i
nclu
ding
yield
and
quali
ty ).
• M
arketi
ng, m
eetin
g m
arket
dem
and
( mark
et-or
iented
varie
ties,
with
long
shelf
life
and
easil
y tran
spor
table
).
2•
Four
shor
t cou
rses
deve
lope
d•
Shor
t cou
rses b
enefi
t 50
com
merc
ial o
rcha
rd
man
ager
s per
year
MoC
I, M
AIL
1.7.
2. F
acili
tate a
cces
s to
gove
rnm
ental
land
s for
com
merc
ial p
urpo
ses r
eleva
nt fo
r the
secto
r. As
a pr
iorit
y, fac
ilitat
e acc
ess t
o lan
d fo
r the
estab
lishm
ent o
f com
merc
ial h
igh-
dens
ity o
rcha
rds a
nd vi
neya
rds.
This
will
invol
ve cl
ear a
nd tr
ansp
arent
pro
cess
es fo
r pur-
chas
ing an
d lea
sing
land.
• De
velo
p an
inve
ntor
y of a
vaila
ble
land,
takin
g int
o ac
coun
t pro
ducti
on ar
eas,
basic
infra
struc
ture
avail
able
( e.g
. wate
r ) an
d tra
nspo
rt ro
utes
. Dev
elop
a com
preh
ensiv
e cor
respo
nding
repo
rt fo
r eac
h id
entif
ied av
ailab
le lan
d are
a.•
Diss
emina
te th
e lis
t thr
ough
wor
ksho
ps an
d ot
her d
issem
inatio
n ch
anne
ls, su
ch as
pos
ters a
nd n
ewsle
tters,
at th
e na
tiona
l and
pro
-vin
cial l
evels
. Targ
et au
dien
ce s
houl
d be
ass
ociat
ions
and
pro
duce
rs, a
nd d
iaspo
ra as
socia
tions
. Pro
vide
assis
tance
for l
and
regis-
tratio
n, as
requ
ired.
2•
An in
vent
ory o
f ava
ilabl
e go
vern
men
t lan
d in
at lea
st fiv
e pro
vince
s is c
reated
• At
leas
t 15–
20 re
ports
are
deve
lope
d an
d di
ssem
inated
MoF
, MAI
L
1.7.
3. D
esig
n an
d es
tablis
h an
agric
ultu
re inv
estm
ent f
und.
• Es
tablis
h a t
ask f
orce
com
pose
d of
com
merc
ial b
anks
, sec
tor a
ssoc
iatio
ns an
d ot
her r
eleva
nt st
akeh
olde
rs.•
Unde
rtake
a de
tailed
bas
eline
diag
nosis
of t
he su
pply
and
dem
and
for a
gricu
ltural
fina
nce b
ased
on
Islam
ic ba
nking
prin
ciples
at th
e co
untry
leve
l. As
sess
and
iden
tify s
olut
ions
for v
ariou
s cate
gorie
s of f
armer
s, su
ch as
nur
sery
man
ager
s, sm
allho
lder
s, co
mm
ercial
far
mer
s and
agrib
usine
sses
, alo
ng w
ith la
rger
com
merc
ial fa
rmer
s and
corp
orate
agrib
usine
sses
, thr
ough
a pa
rticip
atory
proc
ess.
• Pr
ovid
e a
parti
cular
focu
s to
sup
port
the
deve
lopm
ent o
f cre
dit p
rogr
amm
es to
impr
ove
acce
ss to
fina
nce
for t
he e
stabl
ishm
ent o
f co
mm
ercial
orc
hard
s•
Base
d on
find
ings,
deve
lop
affor
dabl
e loa
ns fo
r eac
h ca
tegor
y.
2•
Agric
ultu
re inv
estm
ent f
und
oper
ation
alM
oF, M
AIL,
High
Ec
onom
ic Co
uncil
1.7.
4. C
ondu
ct ca
pacit
y-bu
ilding
wor
ksho
ps ta
rgeti
ng fa
rmer
s and
asso
ciatio
ns o
n fin
ancia
l ins
trum
ents
avail
able
for t
he se
ctor (
e.g.
inc
ludi
ng se
rvice
s ava
ilabl
e thr
ough
the p
ropo
sed
agric
ultu
re inv
estm
ent f
und )
.3
• At
leas
t 500
pro
duce
rs,
com
merc
ial fa
mer
s and
co
rpor
ate ag
ribus
iness
es
receiv
e cap
acity
-buil
ding
wo
rksho
ps
MoF
, MAI
L
[ STRATEGIC PLAN OF ACTION ]
69
Stra
tegi
c ob
ject
ive
2 : R
educ
e po
stha
rves
t los
ses
acro
ss th
e va
lue
chai
n by
add
ress
ing
tech
nica
l and
non
-tech
nica
l iss
ues.
Oper
atio
nal
obje
ctiv
esAc
tiviti
esPr
iorit
y 1=
high
2=
med
3=
low
Impl
emen
tatio
n pe
riod
Targ
ets
Lead
and
sup
porti
ng
impl
emen
ters
2017
2018
2019
2020
2021
2022
2.1.
Bui
ld te
chni
cal
capa
citie
s to
redu
ce
post
harv
est l
osse
s at
cur
rent
infra
-st
ruct
ure
leve
ls.
2.1.
1. Te
chnic
al co
mm
ittee
on
cold
chain
dev
elopm
ent t
o lea
d th
e fol
lowi
ng ac
tiviti
es :
• De
velo
p gu
ideli
nes a
nd re
com
men
datio
ns to
assu
re m
axim
um q
ualit
y and
mini
mum
spoi
lage o
f FFV
.•
Increa
se co
llabo
ration
and c
oope
ration
with
gove
rnm
ents
such
as th
ose o
f India
, the N
ether
lands
and F
rance
to in
creas
e kno
wled
ge ex
chan
ge
on av
ailab
le tec
hnol
ogies
thro
ugh
capa
city-
build
ing p
rogr
amm
es an
d pr
omot
ion
of P
PPs,
inclu
ding
exch
ange
s of b
usine
ss d
elega
tions
.•
Cons
ider
ing c
urren
t col
d ch
ain in
frastr
uctu
re ga
ps, a
nd d
evelo
p pr
actic
al gu
ideli
nes
and
recom
men
datio
ns to
ass
ure
max
imum
qua
lity
and
mini
mum
spoi
lage o
f FFV
.•
Ident
ify b
est p
ractic
es to
ove
rcom
e co
ld c
hain
infras
tructu
re de
ficien
cies t
hrou
gh p
ractic
al ad
vice
in ali
gnm
ent w
ith fo
od sa
fety r
ecom
-m
enda
tions
, at a
ll va
lue c
hain
stage
s, su
ch as
: –
Prod
uctio
n –
Harve
st »
Optim
um h
arves
ting
times
for e
ach
crop
»Ha
ndlin
g rec
omm
enda
tions
. –
Posth
arves
t trea
tmen
ts »
Pack
ing ad
vice t
o av
oid
deter
iorat
ion
( e.g
. stac
king )
»En
cour
age v
alue a
dded
servi
ces,
inclu
ding
grad
ing an
d so
rting
»Co
oling
and
trans
port
optio
ns ( e
.g. h
ow to
crea
te air
flow
s for
bul
k loa
ds ).
1•
Guid
eline
s dev
elope
dAN
SA, M
AIL,
Mini
stry
of Tr
ansp
ort a
nd C
ivil
Aviat
ion
2.1.
2. D
evelo
p a t
rainin
g pr
ogram
me (
cold
chain
train
ing ),
targe
ting
key a
ctors
acro
ss th
e valu
e cha
in to
diss
emina
te rec
omm
enda
tions
to
prod
ucer
s and
com
panie
s, an
d ca
pacit
ate th
em th
roug
h wo
rksho
ps.
• De
sign
a cu
rricu
lum
and
train
ing m
ateria
ls in
conf
orm
ity w
ith d
evelo
ped
guid
eline
s an
d tai
lored
to re
levan
t valu
e ch
ain a
ctors
such
as
prod
ucer
s, as
well
as o
perat
ing st
aff o
f exis
ting
facili
ties.
• Tra
in fac
ilitat
ors o
n de
velo
ped
guid
eline
s and
supp
ort e
xistin
g / n
ew tr
aining
and
voca
tiona
l pro
gram
mes
.•
Supp
ort p
rivate
-sec
tor-l
ed p
rofes
siona
l dev
elopm
ent o
ppor
tunit
ies fo
r exp
erts
and
com
panie
s wish
ing to
train
their
staff
.•
Roll
out t
he tr
aining
pro
gram
me t
hrou
gh ta
ilored
shor
t cou
rses.
2•
Traini
ng p
rogr
amm
e de
signe
d an
d ro
lled
out
• Sh
ort c
ourse
s de
livere
d an
nuall
y
ANSA
, MAI
L
2.1.
3. D
esig
n an
d ro
ll ou
t a ca
mpa
ign
( e.g
. man
uals,
pos
ters,
leafle
ts, w
ebsit
e pub
licati
on ) t
argeti
ng fa
rmer
s and
pos
tharv
est a
ctors
( har-
vesti
ng, p
acka
ging
, tran
spor
t ope
rator
s ) o
n be
st pr
actic
es to
pro
long
the s
helf
life o
f fres
h pr
oduc
e, ba
sed
on th
e guid
eline
s dev
elope
d.2
• An
nual
cam
paig
n ro
lled
out i
n fiv
e m
ain p
rodu
cing
prov
inces
MAI
L, A
NSA
2.2.
Upg
rade
col
d ch
ain
infra
stru
ctur
e.2.
2.1.
Enh
ance
and
deve
lop
cold
chain
servi
ces t
hrou
gh th
e dev
elopm
ent o
f a co
ld ch
ain sc
hem
e.
• Ba
sed
on o
ngoi
ng a
nd e
xistin
g re
searc
h re
gard
ing
the
cold
cha
in in
frastr
uctu
re n
eeds
of A
fgha
nista
n ( e
.g. R
oots
of P
eace
Cold
Cha
in Inf
rastr
uctur
e As
sess
men
t as P
art o
f Com
mer
cial H
ortic
ultur
e an
d Ag
ricult
ural
Mar
ketin
g Pr
oject
), pr
omot
e th
e es
tablis
hmen
t of s
pecia
l-ize
d ag
ricul
tural
FFV
logi
stics
and
trans
porta
tion
com
panie
s ( ( im
mob
ile in
frastr
uctu
re at
farm
gate
( e.g
. pac
khou
ses )
, sto
rage (
e.g.
bul
k co
ld w
areho
uses
) and
cold
dist
ribut
ion
hubs
( e.g
. col
d sto
re fo
r las
t-mile
acce
ss to
mark
ets ).
• De
velo
p a sc
hem
e for
the p
rom
otion
of ne
eded
cold
chain
servi
ces,
base
d on i
nstit
ution
al su
ppor
t and
econ
omic
incen
tives
for c
old c
hain
enter
prise
s to
start
and
grow
ope
ratio
ns. I
ncen
tives
to b
e con
sidere
d : –
Parti
al gr
ants
/ tax
ince
ntive
s fo
r col
d ch
ain in
frastr
uctu
re de
velo
pmen
t ( in
cludi
ng th
e tra
nspo
rt se
ctor ).
Com
preh
ensiv
e Ag
ricul
ture
and
Rural
Dev
elopm
ent –
Fac
ility
to in
crea
se th
e rati
o to
fina
nce c
old
storag
e pro
jects
from
60 :
40 to
80 :
20.
–La
nd fa
cilita
tion.
1•
Cold
chain
sche
me
deve
lope
dM
oCI (
Afgh
anis
tan
Inve
stm
ent S
uppo
rt Ag
ency
), M
oF, M
inistr
y of
Tran
spor
t and
Civi
l Av
iatio
n
2.2.
2. R
eview
impo
rt reg
ulati
ons (
parti
cular
ly im
port
dutie
s ) fo
r col
d ch
ain eq
uipm
ent,
inclu
ding
refri
gerat
ed va
ns. C
onsid
er re
ducin
g or
ex
empt
ing co
ld ch
ain eq
uipm
ent f
rom
impo
rt du
ties t
o pr
omot
e inv
estm
ent i
n an
d es
tablis
hmen
t of c
old
chain
infra
struc
ture.
2•
Impo
rt reg
ulati
ons
revise
d an
d co
rrecti
ve m
easu
res /
polic
ies in
tegrat
ed
MoC
I
70
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
Stra
tegi
c ob
ject
ive
2 : R
educ
e po
stha
rves
t los
ses
acro
ss th
e va
lue
chai
n by
add
ress
ing
tech
nica
l and
non
-tech
nica
l iss
ues.
Oper
atio
nal
obje
ctiv
esAc
tiviti
esPr
iorit
y 1=
high
2=
med
3=
low
Impl
emen
tatio
n pe
riod
Targ
ets
Lead
and
sup
porti
ng
impl
emen
ters
2017
2018
2019
2020
2021
2022
2.2.
Upg
rade
col
d ch
ain
infra
stru
ctur
e.2.
2.3.
Dev
elop
a mod
el to
estab
lish
/ reh
abili
tate c
rop-
spec
ific s
torag
e fac
ilitie
s in
rural
area
s, us
ing lo
cal m
ateria
ls an
d bu
ilding
on
exist
-ing
tech
nique
s. Co
nsid
er th
e rep
urpo
sing
of re
frige
rated
ship
ping
cont
ainer
s for
buil
ding
cold
stor
age.
• Co
nsid
ering
powe
r sho
rtage
s, fo
cus o
n pro
mot
ing en
ergy e
fficie
ncy –
such
as co
ld-c
hain
solar
equip
men
t or t
he us
e of b
ioga
s – an
d low
ca
rbon
impr
int te
chno
logi
es th
roug
h R&
D an
d inv
estm
ent i
ncen
tives
.
2•
Mod
el de
signe
d an
d ro
lled
out
MAI
L
2.2.
4. B
ased
on
asse
ssm
ents
of th
e col
d ch
ain se
ctor,
estab
lish
large
stor
age f
acili
ties t
hrou
gh P
PPs o
utsid
e majo
r mark
ets, i
.e. K
abul
, He
rat, M
azar-
e-Sh
arif,
Jalal
abad
and
Kand
ahar,
as P
PPs.
• Pi
lot t
he e
stabl
ishm
ent o
f fou
r larg
e m
ulti-
crop
sto
rage
facil
ities
, fol
lowi
ng c
rop-
spec
ific
requ
irem
ents
for s
tora
ge ( b
ased
on
inter
na-
tiona
l stan
dard
s ).
1•
Estab
lish
four
larg
e sto
rage f
acili
ties
outsi
de m
ajor
mark
ets
Da A
fgha
nist
an B
ank,
M
AIL
2.2.
5. E
stabl
ish ad
equa
te ‘co
ld fa
ciliti
es’ a
t airp
orts
( e.g
. air
carg
o co
rrido
r with
Indi
a ) in
ord
er to
main
tain
prec
ise an
d co
ntinu
ous t
em-
perat
ure c
ondi
tions
in tr
ansit
.
• Tra
in ha
ndlin
g sta
ff to
ensu
re ad
heren
ce to
stan
dard
ope
rating
pro
cedu
res.
1•
One c
old
chain
fac
ility
at th
e airp
ort
• At
leas
t 10
hand
ling
staff
traine
d
MoC
I
[ STRATEGIC PLAN OF ACTION ]
71
Stra
tegi
c ob
ject
ive
3 : A
dd v
alue
by
impr
ovin
g po
stha
rves
t pra
ctic
es a
nd p
roce
ssin
g ca
paci
ties.
Oper
atio
nal
obje
ctiv
esAc
tiviti
esPr
iorit
y 1=
high
2=
med
3=
low
Impl
emen
tatio
n pe
riod
Targ
ets
Lead
and
sup
porti
ng
impl
emen
ters
2017
2018
2019
2020
2021
2022
3.1.
Upg
rade
sk
ills
in
agro
-pro
cess
ing.
3.1.
1. In
trodu
ce in
stitu
tiona
lized
arran
gem
ents
such
as an
advis
ory c
ounc
ils to
des
ign
and
impl
emen
t a sk
ills p
olicy
, inc
ludi
ng
priva
te se
ctor r
ecom
men
datio
ns, t
o he
lp en
sure
that
educ
ation
and
traini
ng p
rogr
amm
es ar
e rele
vant
to th
e nee
ds o
f the
secto
r.
• Se
t up
an in
stitu
tiona
l and
tech
nical
fram
ewor
k with
in th
e sec
tor c
oord
inatio
n pl
atfor
m, s
uch
as a
secto
r skil
ls co
uncil
, to
be re
-sp
onsib
le fo
r plan
ning
and
mon
itorin
g ind
ustry
-relat
ed tr
aining
and
skill
s dev
elopm
ent.
Secto
r skil
ls co
uncil
to b
e com
pose
d of
pr
ivate
secto
r rep
resen
tative
s, rel
evan
t univ
ersit
ies, a
nd te
chnic
al an
d vo
catio
nal e
duca
tion
and
traini
ng ( T
VET )
insti
tutio
ns, a
s we
ll as
mini
stries
in re
lated
secto
rs an
d th
e Mini
stry o
f Wom
en’s
Affai
rs.•
Ident
ify a
priva
te se
ctor i
nter
locu
tor t
o be
resp
onsib
le fo
r com
mun
icatio
n wi
th ac
adem
ia. T
he in
terlo
cuto
r mus
t hav
e inf
luen
ce
and
the s
uppo
rt of
oth
er p
rivate
secto
r stak
ehol
ders.
1•
Secto
r skil
ls co
uncil
es
tablis
hed
Min
istry
of E
duca
tion,
M
oLSA
MD,
MAI
L
3.1.
2. Th
e sec
tor s
kills
coun
cil w
ill id
entif
y job
roles
and
the c
ompe
tencie
s req
uired
for e
ach
job
role
in ali
gnm
ent w
ith th
e Na
tiona
l Occ
upati
onal
Skill
s Stan
dard
s.
• Sk
ills c
ounc
il to
disc
uss /
revis
e exis
ting
relev
ant N
ation
al Oc
cupa
tiona
l Skil
ls St
anda
rds f
or th
e sec
tor.
• Sk
ills co
uncil
to re
view
curri
cula
yearl
y, as
well
as se
ctor-r
eleva
nt co
urse
s, an
d pres
ent p
ropo
sals
for de
velop
men
t of n
ew co
urse
s to
be a
gree
d by
Mini
stry o
f Edu
catio
n.•
Estab
lish
mon
itorin
g m
easu
res to
dete
rmine
the
succ
ess
of th
e ad
juste
d / n
ew c
ourse
s an
d rev
ision
mec
hanis
ms
to c
ontin
ue
adap
ting
them
as th
e sec
tor e
volve
s.•
Cond
uct i
n-se
rvice
train
ing to
teac
hers
and
instru
ctors
in ne
w / ad
apted
cour
ses o
f key
univ
ersit
ies an
d tra
ining
cent
res.
2•
Relev
ant c
urric
ula r
evise
d ye
arly
• M
ain jo
b ro
les an
d co
mpe
tencie
s ide
ntifi
ed
Min
istry
of E
duca
tion,
M
oLSA
MD,
MAI
L
3.1.
3. P
reven
t ‘br
ain d
rain’
of sk
illed
pro
fessio
nals
in th
e sec
tor.
• De
velo
p inc
entiv
es to
impr
ove l
ocal
labou
r-mark
et co
nditi
ons i
n ord
er to
prev
ent e
mig
ration
of sk
illed
prof
essio
nals
in th
e sec
tor.
3•
Incen
tives
dev
elope
d an
d int
egrat
ed in
nati
onal
polic
yM
oLSA
MD
3.2.
Bui
ld fi
rms’
ca
paci
ties
to m
an-
age
thei
r sup
ply
chai
n in
line
with
in
tern
atio
nal f
ood
safe
ty p
ract
ices
.
3.2.
1. In
crea
se fi
rms’
capa
cities
to im
plem
ent f
ood
safet
y man
agem
ent s
ystem
s in
the s
uppl
y cha
in th
roug
h ro
lling
out
shor
t co
urse
s.
• De
velo
p cu
rricu
la an
d co
urse
mate
rials
on th
e fol
lowi
ng to
pics
: –
Busin
ess m
anag
emen
t –
Food
safet
y man
agem
ent.
• Pr
epare
train
ing m
anua
ls ac
cord
ingly.
• Co
nduc
t cou
rses t
o se
ctor s
mall
and
med
ium-s
ized
enter
prise
s ( SM
Es ) a
nd ex
porte
rs.
1•
Three
shor
t cou
rses t
argeti
ng
30 S
MEs
annu
ally
ANSA
, MoC
IM
AIL,
ACCI
3.2.
2. O
rgan
ize st
udy t
ours
for s
elect
firm
s to
unde
rstan
d fo
od sa
fety r
equir
emen
ts an
d be
st pr
oduc
tion
and
proc
essin
g pr
actic
es
in ke
y loc
ation
s ( e.
g. U
AE ).
3•
One s
tudy
tour
a ye
ar be
nefit
ing at
leas
t five
SM
EsM
oCI
MAI
L, AC
CI3.
3. Im
prov
e fo
od
safe
ty a
nd q
ualit
y as
sura
nce.
3.3.
1. U
pgrad
e pro
duct
testin
g inf
rastru
cture.
• Un
derta
ke a
cam
paig
n to
enc
ourag
e inv
estm
ent i
n a
state
of th
e ar
t lab
orato
ry, s
ampl
ing a
nd te
sting
facil
ity, b
ased
on
mark
et po
tentia
l.•
Lobb
y inv
esto
rs an
d tes
ting
firm
s to
alloc
ate re
sour
ces t
o id
entif
ied p
oten
tial p
rodu
ct tes
ting
facili
ties.
2•
At le
ast t
wo te
sting
facil
ities
es
tablis
hed
in ke
y loc
ation
s ou
tside
Kab
ul
Min
istry
of P
ublic
He
alth
, MAI
L, M
oF, M
oCI
( Afg
hanis
tan In
vestm
ent
Supp
ort A
genc
y )
3.3.
2. D
esig
n an
d im
plem
ent m
echa
nism
s to
ensu
re th
e tim
ely d
issem
inatio
n of
test
repor
ts on
plan
t dise
ases
to fa
rmer
s and
tra
ders.
2•
Mec
hanis
m es
tablis
hed
ANSA
3.3.
3. Im
prov
e the
tech
nical
capa
city f
or fo
od sa
fety a
nd q
ualit
y ass
uran
ce in
relev
ant i
nstit
utio
ns.
• Es
tablis
h a
traini
ng p
rogr
amm
e to
cer
tify
audi
tors
in Ha
zard
Ana
lysis
and
Criti
cal C
ontro
l Poi
nts,
Inter
natio
nal O
rgan
izatio
n fo
r St
anda
rdiza
tion
2000
, Brit
ish R
etail
Cons
ortiu
m, S
ocial
Acc
ount
abili
ty 80
00, e
tc. to
acce
lerate
the p
roce
ss o
f hig
her s
tanda
rdi-
zatio
n. E
xtend
the n
umbe
r of l
abor
atory
staff
to ke
y pro
vince
s.
1•
Traini
ng p
rogr
amm
e co
nduc
ted to
20
certi
fied
audi
tors
per y
ear
ANSA
72
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
Stra
tegi
c ob
ject
ive
3 : A
dd v
alue
by
impr
ovin
g po
stha
rves
t pra
ctic
es a
nd p
roce
ssin
g ca
paci
ties.
Oper
atio
nal
obje
ctiv
esAc
tiviti
esPr
iorit
y 1=
high
2=
med
3=
low
Impl
emen
tatio
n pe
riod
Targ
ets
Lead
and
sup
porti
ng
impl
emen
ters
2017
2018
2019
2020
2021
2022
3.3.
Impr
ove
food
sa
fety
and
qua
lity
assu
ranc
e.
3.3.
4. E
nhan
ce th
e abi
lity o
f loc
al ex
port
quali
ty m
anag
emen
t ser
vice p
rovid
ers t
hrou
gh a
traini
ng o
f trai
ners,
to en
able
them
to
offer
servi
ces a
nd su
ppor
t to
SMEs
in ex
port
quali
ty m
anag
emen
t on
a lon
g-ter
m b
asis.
• Ide
ntify
hos
t ins
titut
ions
to o
ffer t
rainin
g an
d ad
visor
y ser
vices
in q
ualit
y man
agem
ent.
• Ide
ntify
and
selec
t cor
e tea
ms o
f trai
ners
and
advis
ers.
• De
velo
p di
agno
stic t
ools
on th
e tec
hnica
l cap
aciti
es o
f ser
vice p
rovid
ers i
n qu
ality
man
agem
ent.
• Pr
epare
and
impl
emen
t tec
hnica
l wor
ksho
ps o
n qu
ality
man
agem
ent.
• Pr
epare
and
impl
emen
t wor
ksho
ps o
n tra
ining
and
advis
ory s
kills.
• Pr
ovid
e guid
ance
and
techn
ical s
uppo
rt to
loca
l ser
vice p
rovid
ers t
o de
velo
p an
d m
anag
e the
ir se
rvice
s.
1•
Traini
ng o
f trai
ners
rolle
d ou
t an
d co
nduc
ted to
50
quali
ty m
anag
emen
t ser
vice p
rovid
ers
ANSA
3.3.
5. D
evelo
p an
d ap
ply t
racea
bilit
y to
com
panie
s in
the F
FV se
ctor.
• Co
nsid
ering
com
pulso
ry req
uirem
ents
on tr
acea
bilit
y in
key t
arget
mark
ets –
e.g.
EU
– an
d th
e nee
d to
pro
tect t
he re
putat
ion
of
Afgh
an p
rodu
cts, d
evelo
p an
d ap
ply t
racea
bilit
y to
the F
FV se
ctor,
starti
ng w
ith a
small
num
ber o
f pro
ducin
g en
terpr
ises e
xpor
t-ing
fres
h pr
oduc
e and
then
expa
nding
the s
ystem
. Trac
eabi
lity t
o co
ver i
nput
s, pr
oduc
tion
and
distr
ibut
ion.
• Pr
ovid
e ong
oing
guid
ance
and
techn
ical s
uppo
rt.
2•
At le
ast 5
% o
f pro
ducti
on h
as
a trac
eabi
lity s
ystem
MAI
L, M
oCI,
ANSA
3.4.
Stim
ulat
e th
e es
tabl
ishm
ent a
nd
upgr
ade
of p
ro-
cess
ing
capa
citie
s.
3.4.
1. S
uppo
rt th
e main
tenan
ce /
expa
nsio
n of
indu
strial
park
s in
main
pro
ducin
g are
as. E
nsur
e the
qua
lity o
f inf
rastru
cture
such
as
elec
tricit
y and
wate
r sup
ply i
n ind
ustri
al pa
rks b
y pro
per m
ainten
ance
and
upgr
ading
of m
anag
emen
t sys
tems.
• Un
derta
ke an
inde
pend
ent s
tudy
to as
sess
the
level
of se
rvice
supp
ort,
techn
ical c
apac
ities
and
impl
emen
tatio
n of
activ
ities
in
indus
trial
parks
supp
ortin
g se
ctor f
irms.
• Ba
sed o
n ide
ntifi
ed ga
ps an
d flaw
s, de
sign a
nd im
plem
ent c
orrec
tive m
easu
res an
d tail
ored
wor
ksho
ps fo
r ind
ustri
al pa
rks’ m
an-
agem
ent s
taff (
e.g.
boo
kkee
ping
).•
Cond
uct fe
asibi
lity st
udies
in m
ajor l
ocati
ons f
or th
e esta
blish
men
t of a
gro-
focus
ed in
dustr
ial pa
rks, a
s a pu
blic–
priva
te inv
estm
ent.
• De
velo
p a p
ilot p
rojec
t in a
selec
t loc
ation
for a
n agr
o-fo
cuse
d ind
ustri
al pa
rk, w
ith b
asic
infras
tructu
re th
at se
ctor e
ntrep
reneu
rs ca
n lea
se fo
r the
setti
ng u
p of
food
pro
cess
ing an
d an
cillar
y unit
s.
1•
Indep
ende
nt st
udy c
arried
ou
t and
corre
ctive
mea
sures
in
plac
e•
Pilot
pro
ject d
esig
ned
and
impl
emen
ted
MoC
I, Af
ghan
istan
Ch
ambe
r of I
ndus
tries
and
Mine
s
3.4.
2. C
reate
links
betw
een
the e
duca
tion
secto
r and
agrib
usine
ss p
roce
ssor
s to
intro
duce
low-
cost
solu
tions
to re
habi
litate
inop
-er
ative
pro
cess
ing m
achin
ery.
Add
oper
ation
, main
tenan
ce an
d rep
air o
f com
mon
agrib
usine
ss p
roce
ssing
mac
hiner
y to
traini
ng p
rogr
amm
es in
key T
VET i
n-sti
tutio
ns an
d un
iversi
ties.
Asse
ss th
e skil
l req
uirem
ents
for t
he p
erfo
rman
ce o
f the
se ac
tiviti
es. A
djus
t the
TVET
curri
culu
m
acco
rding
ly.
2•
Cour
se d
evelo
ped
and
rolle
d ou
t in
three
TVET
insti
tutio
nsM
oCI,
MoF
A, M
inistr
y of
Educ
ation
, MoL
SAM
D
3.4.
3. O
rgan
ize eq
uipm
ent b
uyer
–sell
er m
eetin
gs in
Kab
ul at
tende
d by
equip
men
t man
ufac
turer
s and
supp
liers
as w
ell as
pot
en-
tial b
uyer
s ( un
ions
, firm
s, etc
. ).
• Th
e eve
nts s
houl
d be l
inked
to th
e sec
tor (
e.g.
proc
essin
g opp
ortu
nities
for F
FV ) w
ith in
trodu
ction
s by r
egio
nal a
nd in
terna
tiona
l co
mpa
nies a
nd va
lue c
hain
acto
rs.•
Equip
men
t sup
plier
s will
be i
nvite
d to
atten
d in
addi
tion
to va
lue c
hain
stake
hold
ers.
2•
Annu
al bu
yer–
selle
r mee
ting
in Ka
bul
ACCI
, Afg
hani
stan
Ch
ambe
r of I
ndus
tries
an
d M
ines
, MoC
I
3.4.
4. S
uppo
rt th
e ide
ntifi
catio
n of
pro
duct
dive
rsific
ation
opt
ions
thro
ugh
proc
essin
g ( e
.g. f
ruit
juice
s, se
parat
ing p
omeg
ranate
se
eds )
in d
omes
tic an
d int
erna
tiona
l mark
ets, b
ased
on
soun
ds m
arket
asse
ssm
ents.
• Es
tablis
h a gr
ant s
chem
e to p
rom
ote i
ncrea
sing t
he le
vel o
f pro
cess
ing an
d valu
e add
ition
in th
e sec
tor,
leadi
ng to
redu
ced w
ast-
age.
Sche
me t
o co
ver s
etting
up
of n
ew u
nits a
nd m
oder
nizati
on /
expa
nsio
n of
exist
ing u
nits.
• An
indi
cativ
e list
of a
ctivit
ies w
hich
may
be u
nder
taken
by p
roce
ssing
unit
s is g
iven
belo
w : –
Sorti
ng, g
rading
, was
hing,
wax
ing, p
eelin
g, cu
tting
, sizi
ng –
Blan
ching
, extr
actio
n, p
ulpi
ng –
Dryin
g, d
e-hu
lling
, spl
itting
, col
our s
ortin
g –
Pack
aging
facil
ities
like
cann
ing, v
acuu
m p
acka
ging
and
bottl
ing, a
mon
g ot
hers.
Prov
ide s
uppo
rt to
secto
r ass
ociat
ions
and
firm
s to
subm
it ap
plica
tions
thro
ugh
works
hops
.
2•
At le
ast 1
0 SM
Es ar
e su
ppor
ted to
upg
rade
proc
essin
g op
erati
ons
MoC
I, M
oFA
[ STRATEGIC PLAN OF ACTION ]
73
Stra
tegi
c ob
ject
ive
3 : A
dd v
alue
by
impr
ovin
g po
stha
rves
t pra
ctic
es a
nd p
roce
ssin
g ca
paci
ties.
Oper
atio
nal
obje
ctiv
esAc
tiviti
esPr
iorit
y 1=
high
2=
med
3=
low
Impl
emen
tatio
n pe
riod
Targ
ets
Lead
and
sup
porti
ng
impl
emen
ters
2017
2018
2019
2020
2021
2022
3.4.
Stim
ulat
e th
e es
tabl
ishm
ent a
nd
upgr
ade
of p
ro-
cess
ing
capa
citie
s.
3.4.
5. P
rom
ote i
nves
tmen
t in
agro
-indu
stry (
focu
sed
on fr
uits a
nd ve
getab
les p
roce
ssing
).
• Up
date
exist
ing li
st of
inve
stmen
t attr
actio
n op
portu
nities
( con
tinue
upd
ating
list
as th
e sec
tor e
volve
s ).
• Fa
cilita
te th
e pa
rticip
ation
of b
usine
ss a
ssoc
iatio
ns in
inve
stmen
t miss
ions
and
exh
ibiti
ons
to p
rom
ote
inves
tmen
t opp
ortu
ni-tie
s in
the s
ecto
r.•
Thro
ugh
onlin
e vid
eos,
conc
ept n
otes
and
broc
hures
, am
ong
othe
r com
mun
icatio
n m
ateria
ls, sh
owca
se in
vestm
ent o
ppor
tuni-
ties i
n th
e sec
tor.
1•
List o
f inc
entiv
es d
evelo
ped
• Tw
o inv
estm
ent m
issio
ns
a yea
r
MoC
I, M
oFA
3.5.
Impr
ove
pack
-ag
ing
prac
tices
.3.
5.1.
Cap
acita
te co
mpa
nies a
nd se
ctor a
ssoc
iatio
ns o
n tec
hnica
l req
uirem
ents
for p
acka
ging
, bas
ed o
n int
erna
tiona
l mark
et req
uirem
ents.
• Ca
pacit
ate co
mpa
nies t
hrou
gh ap
prop
riate
traini
ng fo
cuse
d on
pac
kagi
ng ( c
rop-
spec
ific )
. Mod
ules
to in
clude
: –
Type
s of p
acka
ging
mate
rial.
–De
sign
and
selec
tion
of p
acka
ging
mate
rial.
–Fo
od p
acka
ging
mac
hiner
y opt
ions
. –
Labe
lling
and
legisl
ation
, suc
h as t
he IS
PM 1
5 reg
ulati
on fo
r pac
kagi
ng an
d th
e Unit
ed S
tates
Food
, Dru
g an
d Co
smeti
c Act,
se
ction
409
. –
Com
plian
ce w
ith en
viron
men
tal co
ncer
ns an
d leg
islati
on o
f key
des
tinati
on co
untri
es.
–Re
using
and
recyc
ling
of p
acka
ging
. –
Mark
eting
advic
e on h
ow to
impr
ove p
acka
ging
for m
ore p
rofit
able
and s
ucce
ssful
acce
ss to
dom
estic
and e
xpor
t mark
ets an
d fo
r red
uced
pro
duct
loss
es al
ong
the v
alue c
hain.
• Co
mpil
e and
diss
emina
te ca
se st
udies
desc
ribing
how
com
panie
s can
redu
ce fo
od w
aste
throu
gh ne
w pr
oduc
t-pac
kagin
g solu
tions
.•
Prep
are tr
aining
man
uals
targe
ting
food
chain
acto
rs, ac
cord
ingly.
2•
Mod
ules
dev
elope
d•
Traini
ng m
anua
ls de
velo
ped
• Fif
ty SM
Es tr
ained
per
year
ANSA
, MoC
I
3.5.
2. C
reate
links
betw
een
regio
nal a
nd in
terna
tiona
l pac
kagi
ng su
pplie
rs an
d do
mes
tic co
mpa
nies.
• Th
roug
h th
e or
ganiz
ation
of f
airs,
crea
te bu
sines
s link
s betw
een
pack
aging
supp
liers
( dom
estic
and
inter
natio
nal )
and
dom
es-
tic co
mpa
nies.
3•
One f
air p
er ye
arM
AIL,
MoC
I
3.5.
3. In
alig
nmen
t with
activ
ity 2
.2.3
. ( sto
rage i
n ru
ral ar
eas )
, dev
elop
a pro
gram
me t
o ad
d se
rvice
s and
adap
t esta
blish
ed st
or-ag
e unit
s to
‘pac
khou
ses’
( e.g
. see
Indi
a mod
el ).
‘Pac
khou
ses’
to b
e use
d fo
r tem
porar
ily st
oring
, clea
ning,
grad
ing an
d pa
cking
far
m p
rodu
ce.
• Co
nduc
t a fe
asib
ility
study
.•
Deve
lop
requir
emen
ts ( e
.g. s
ize, v
entil
ation
, mate
rial )
for p
ackh
ouse
s, in
align
men
t with
inter
natio
nal s
tanda
rds a
nd c
onsid
er-ing
avail
able
cons
tructi
on m
ateria
ls.•
Cons
ider
the p
rovis
ion
of ad
equa
te eq
uipm
ent s
uch
as w
eighin
g m
achin
es an
d gr
ading
tabl
es, a
mon
g ot
hers.
• Pil
ot p
ackh
ouse
s in
main
pro
ducti
on p
rovin
ces.
2•
Twen
ty pa
ckho
uses
es
tablis
hed
per y
ear
MAI
L, M
oCI
74
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
Stra
tegi
c ob
ject
ive
4 : In
crea
se th
e se
ctor
’s c
apac
ity to
ent
er a
nd s
usta
in re
latio
nshi
ps in
dom
estic
and
inte
rnat
iona
l mar
kets
.
Oper
atio
nal o
bjec
tives
Activ
ities
Prio
rity
1=hi
gh
2=m
ed
3=lo
w
Impl
emen
tatio
n pe
riod
Targ
ets
Lead
and
sup
porti
ng
impl
emen
ters
2017
2018
2019
2020
2021
2022
4.1.
Enh
ance
the
qual
-ity
and
dis
sem
inat
ion
of m
arke
t int
ellig
ence
se
rvic
es.
4.1.
1. D
evelo
p sh
ort c
ourse
s to
enha
nce i
nter
natio
nal b
usine
ss ca
pacit
ies o
f sec
tor e
nter
prise
s. Co
urse
s sho
uld
cove
r :
• Un
derst
andi
ng d
oing
bus
iness
in A
fgha
nistan
, inc
lude
taxa
tion
coac
hing.
• Ex
porti
ng fr
om A
fgha
nistan
: exp
ort p
roce
dures
, inc
oter
ms,
prefe
rentia
l tari
ff tre
atmen
t.•
Nego
tiatio
n sk
ills a
nd cu
stom
er re
latio
nship
man
agem
ent.
• Pr
omot
ion
and
bran
ding
for f
ood
com
panie
s.
1•
Three
shor
t cou
rses
cond
ucted
to 5
0 SM
Es
annu
ally
MoC
I
4.1.
2. R
eview
/ up
date
exist
ing E
xpor
t Guid
e for
Fre
sh F
ruits
and
Vege
tables
Exp
orter
s ( i.e
. Roo
ts of
Peac
e ).
• Re
view
targe
t mark
ets to
be
addr
esse
d in
the
publ
icatio
n, s
uch
as th
e Ru
ssian
Fed
erati
on a
nd M
iddl
e Ea
stern
cou
ntrie
s, tai
lorin
g th
e exp
ort g
uide t
o fo
cus o
n th
e pro
ducts
with
the h
ighe
st m
arket
oppo
rtunit
ies in
such
coun
tries
.•
Inclu
de th
e fol
lowi
ng ke
y inf
orm
ation
: –
Mark
et pr
ospe
cts a
nd e
merg
ing tr
ends
( inc
ludi
ng p
rodu
ct de
finiti
ons
in ter
ms
of p
opul
ar va
rietie
s an
d fo
rms
of c
on-
sum
ptio
n, an
d pr
oces
sed
fruit
and
vege
table
prod
ucts
with
expo
rt po
tentia
l, e.g
. can
ned
tom
atoes
). –
Inter
natio
nal t
rade a
gree
men
ts wi
th se
lected
targ
et m
arkets
, if a
pplic
able.
–Ri
sks o
f ent
ering
the m
arket.
–Pa
ckag
ing le
gisla
tion
( ISPM
15 )
. –
Resp
ect f
or ta
rget
mark
et pr
oced
ures
. –
Lega
l pro
cedu
res.
–Di
strib
utio
n ch
anne
ls an
d di
recto
ry of
main
buy
ers i
n tar
get m
arkets
. –
Trade
fairs
avail
able
in-co
untry
. –
Price
s. –
Cont
act d
etails
of t
rade a
ttach
és.
2•
Guid
e rev
ised
and
upda
tedM
oCI,
MoF
A, A
NSA
4.1.
3. C
arry o
ut ca
pacit
y-bu
ilding
wor
ksho
ps ta
rgeti
ng p
rodu
cing
and
expo
rting
com
panie
s in
the s
ecto
r to
increa
se th
eir
know
ledge
of k
ey m
arkets
’ reg
ulati
ons o
n im
porti
ng F
FV, e
.g. E
U, th
e Rus
sian
Fede
ratio
n an
d th
e UAE
.
• Ca
pacit
y-bu
ilding
wor
ksho
ps to
focu
s on :
–EU
legi
slatio
n, w
hich
sets
gene
ral an
d sp
ecifi
c m
arketi
ng st
anda
rds f
or th
e m
inim
um q
ualit
y and
the
mini
mum
matu
-rit
y of
all
FFV.
Mar
ketin
g sta
ndard
s re
late
to q
ualit
y, gr
ading
, weig
ht a
nd s
ize, p
acka
ging
, sto
rage
and
tran
spor
t ; an
d pr
esen
tatio
n, o
rigin
and
labell
ing.
–Un
ited
Natio
ns E
cono
mic
Com
miss
ion
for E
urop
e stan
dard
s acc
epted
in li
eu o
f gen
eral
mark
eting
stan
dard
s. –
Spec
ific m
arketi
ng st
anda
rds f
or : a
pples
, pea
ches
and
necta
rines
, tab
le gr
apes
and
tom
atoes
. –
Trace
abili
ty req
uirem
ents.
–Ind
ian im
port
requir
emen
ts, e.
g. F
ood
Safet
y and
Stan
dard
s Reg
ulati
ons,
2011
, ISP
M 1
5 req
uirem
ents.
2•
Three
annu
al wo
rksho
ps
cond
ucted
to 5
0 SM
EsM
oCI,
ACCI
4.1.
4. E
nsur
e a re
gular
flow
of i
nfor
mati
on is
pro
vided
on
mark
et int
ellig
ence
.
• Th
roug
h a w
ebsit
e, ne
wslet
ter an
d tex
t mes
sagi
ng fo
r reg
istere
d us
ers (
e.g.
secto
r ass
ociat
ions
), en
sure
regul
ar an
d up
-da
ted m
arket
infor
mati
on ab
out t
he se
ctor i
s ava
ilabl
e.•
Infor
mati
on to
inclu
de : d
eman
d fo
r spe
cific
fruit
and
vege
tables
varie
ties
in ke
y m
arkets
, pric
es, s
easo
nal d
eman
d ( a
nd
prof
it m
argins
), etc
.
1•
Mark
et int
ellig
ence
di
ssem
inatio
n m
echa
nism
s in
plac
e and
ope
ratio
nal
MoC
I, M
inistr
y of
Com
mun
icatio
n an
d Inf
orm
ation
Tech
nolo
gy
[ STRATEGIC PLAN OF ACTION ]
75
Stra
tegi
c ob
ject
ive
4 : In
crea
se th
e se
ctor
’s c
apac
ity to
ent
er a
nd s
usta
in re
latio
nshi
ps in
dom
estic
and
inte
rnat
iona
l mar
kets
.
Oper
atio
nal o
bjec
tives
Activ
ities
Prio
rity
1=hi
gh
2=m
ed
3=lo
w
Impl
emen
tatio
n pe
riod
Targ
ets
Lead
and
sup
porti
ng
impl
emen
ters
2017
2018
2019
2020
2021
2022
4.2.
Impr
ove
links
with
ta
rget
mar
kets
.4.
2.1.
Crea
te co
mm
unica
tion
chan
nels
with
key b
uyer
s in
inter
natio
nal m
arkets
.
• Or
ganiz
e tri
ps to
key i
nter
natio
nal m
arkets
. Liai
se w
ith m
ain b
uyer
s in-
coun
try, m
aintai
n ac
tive
com
mun
icatio
n an
d op
en
dialo
gue t
o es
tablis
h ke
y tim
es o
f the
year
when
Afg
han
prod
uce i
s nee
ded.
• As
sist M
SMEs
to p
artic
ipate
in in
terna
tiona
l trad
e fair
s thr
ough
gran
t pro
gram
mes
, loa
ns, e
tc.•
Orga
nize b
usine
ss-to
-bus
iness
mee
tings
with
inter
natio
nal c
lient
s to
enco
urag
e pot
entia
l int
erna
tiona
l bus
iness
.
2•
Two
annu
al tri
ps to
int
erna
tiona
l mark
ets ( f
ive
firm
s par
ticip
ating
)•
Ten
firm
s par
ticip
ate in
trad
e fai
rs an
nuall
y•
One a
nnua
l bus
iness
-to-
busin
ess m
eetin
g
MoC
I, M
oFA
4.2.
2. Tr
ain en
terpr
ises o
n ho
w to
prep
are fo
r mark
et de
velo
pmen
t and
par
ticip
ation
in tr
ade f
airs :
• Pr
epari
ng p
rom
otio
nal m
ateria
ls in
the l
angu
age a
nd cu
lture
of th
e hos
t cou
ntry.
• Pr
esen
tatio
n an
d vis
ibili
ty ( in
cludi
ng d
igita
l mark
eting
).•
Man
aging
supp
ly an
d de
man
d.•
Ident
ifying
and
targe
ting
poten
tial b
uyer
s.
2•
At le
ast 5
0 SM
Es p
artic
ipate
in
traini
ng
MoC
I, M
oFA
4.2.
3. E
valu
ate th
e fea
sibili
ty of
estab
lishin
g wa
rehou
ses (
as p
ublic
–priv
ate se
ctor i
nves
tmen
t ) in
key m
arkets
, suc
h as
Ind
ia an
d UA
E, th
roug
h fea
sibili
ty stu
dies
. Dev
elop
a mod
el fo
r esta
blish
ing w
areho
uses
as a
PPP.
• Pil
ot a
wareh
ouse
in a
targe
t mark
et, ac
cord
ingly.
2•
Pilot
the e
stabl
ishm
ent o
f on
e ware
hous
e in
a key
targ
et m
arket
MoC
I, AC
CI
4.3.
Ena
ble
ente
ring
nich
e m
arke
ts b
y su
p-po
rting
org
anic
pro
duc-
tion
and
certi
ficat
ion.
4.3.
1. S
uppo
rt th
e dev
elopm
ent o
f org
anic
prod
ucer
s by :
• De
velo
ping
guid
eline
s for
orga
nic ag
ricul
ture
base
d on r
eleva
nt ce
rtific
ation
bodi
es in
targ
et m
arkets
( e.g
. spe
cific
EU le
g-isl
ation
to m
arket
prod
ucts
as ‘o
rgan
ic’ ).
• Of
fering
info
rmati
on o
n ho
w to
dive
rsify
their
pro
ducts
and
prov
iding
info
rmati
on ab
out v
iable
orga
nic p
rodu
ce in
dem
and
in int
erna
tiona
l mark
ets.
• As
sess
ing an
d di
ssem
inatin
g inf
orm
ation
abou
t the
mark
etabi
lity o
f org
anic
prod
ucts.
• Int
rodu
cing
mec
hanis
ms (
e.g.
radi
o sp
ots )
to d
issem
inate
relev
ant i
nfor
mati
on ab
out :
pest
cont
rol,
and
mark
et pr
ices f
or
orga
nic fr
esh
prod
uce.
2•
Afgh
an o
rgan
ic far
ming
pr
otoc
ol d
evelo
ped
• Re
port
prod
uced
on
the s
tudy
of
the m
arketa
bilit
y of a
t lea
st tw
o or
ganic
secto
r pro
ducts
int
erna
lly an
d ex
terna
lly•
Supp
ort a
t lea
st fiv
e SM
Es to
inc
rease
their
share
of o
rgan
ic pr
oduc
ts
MoC
I, AC
CI, M
AIL
4.3.
2. E
xplo
re pa
rtner
ship
s with
inter
natio
nal c
ertif
icatio
n bo
dies
for o
rgan
ic pr
oduc
tion.
2•
At le
ast t
wo m
emor
andu
ms
of u
nder
stand
ing si
gned
with
int
erna
tiona
l cer
tifica
tion
bodi
es
MoC
I
4.3.
3. D
evelo
p a s
chem
e for
org
anic
certi
ficati
on, p
riorit
izing
spec
ific f
ruit
and
vege
table
prod
ucts
( e.g
. pom
egran
ates,
mus
hroo
ms,
grap
es ).
2•
Sche
me d
evelo
ped
and
in pl
ace,
prio
ritizi
ng tw
o sp
ecifi
c fru
its an
d ve
getab
les
Da A
fgha
nist
an B
ank,
MoF
, MAI
L, M
oCI
4.4.
Enh
ance
the
vis-
ibili
ty o
f Afg
han
FFV
in re
gion
al a
nd g
loba
l m
arke
ts.
4.4.
1. R
eview
/ up
date
exist
ing F
FV ca
talog
ue ( o
nline
/ pr
inted
) to
be d
issem
inated
amon
g po
tentia
l buy
ers.
• Ca
talog
ue to
inclu
de :
–Le
ading
Afg
han
FFV
prod
ucts
–Re
gion
s of p
rodu
ction
–Av
ailab
ility
char
t by v
ariety
–Ce
rtific
ation
s ava
ilabl
e –
Afgh
an ex
porte
rs’ d
irecto
ry.•
Publ
ish ca
talog
ue an
d bo
oklet
s for
FFV
varie
ties i
n Af
ghan
istan
.•
Deve
lop
com
mun
icatio
n an
d m
arketi
ng m
ateria
ls to
pro
mot
e en
dem
ic va
rietie
s ( p
rope
rties
, attr
ibut
ions
) in
key
mark
ets,
base
d on
mark
et de
man
d as
sess
men
ts.
2•
Catal
ogue
revis
ed an
d di
ssem
inated
in ke
y mark
ets
thro
ugh
com
merc
ial at
taché
s an
d pu
blic
/ priv
ate se
ctor
webs
ites
MoC
I, AN
SA, M
oFA
76
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / FRESH FRUITS AND VEGETABLES SECTOR 2018-2022 ]
Stra
tegi
c ob
ject
ive
4 : In
crea
se th
e se
ctor
’s c
apac
ity to
ent
er a
nd s
usta
in re
latio
nshi
ps in
dom
estic
and
inte
rnat
iona
l mar
kets
.
Oper
atio
nal o
bjec
tives
Activ
ities
Prio
rity
1=hi
gh
2=m
ed
3=lo
w
Impl
emen
tatio
n pe
riod
Targ
ets
Lead
and
sup
porti
ng
impl
emen
ters
2017
2018
2019
2020
2021
2022
4.4.
Enh
ance
the
vis-
ibili
ty o
f Afg
han
FFV
in re
gion
al a
nd g
loba
l m
arke
ts.
4.4.
2. E
xplo
re th
e dev
elopm
ent o
f geo
grap
hical
indica
tions
for s
pecif
ic fru
it an
d ve
getab
le cr
ops s
uch
as re
d Ka
ndah
ari
pom
egran
ates.
• Pil
ot th
is ini
tiativ
e by
con
ducti
ng a
cost-
bene
fit st
udy o
n th
e de
velo
pmen
t of a
geo
grap
hical
indica
tion
for r
ed K
anda
hari
pom
egran
ates.
Stud
y to
cons
ider
:•
Prod
uct c
harac
terist
ics an
d po
tentia
l in
dom
estic
and
forei
gn m
arkets
.•
Capa
city t
o stre
ngthe
n the
cohe
sion o
f pro
duce
r gro
ups a
nd ot
her o
perat
ors w
ho w
ill be
pilla
rs of
the ge
ograp
hical
indica
tion.
• Re
view
/ set
up st
anda
rds (
i.e. c
ode o
f prac
tice )
circ
umsc
ribing
a pr
oduc
t’s g
eogr
aphic
al reg
ion
of p
rodu
ction
.•
Desig
n of a
mec
hanis
m to
effec
tively
attri
bute
the ri
ght u
se of
the g
eogr
aphic
al ind
icatio
n with
in the
estab
lishe
d bou
ndari
es.
• Po
tentia
l to
estab
lish
a trac
eabi
lity s
ystem
, am
ong
othe
rs inc
ludi
ng p
oten
tial m
arketi
ng st
rateg
ies.
3•
Cost-
bene
fit st
udy c
ondu
cted
and
diss
emina
tedM
oCI
4.5.
Enc
oura
ge lo
cal
cons
umpt
ion
of s
ecto
r pr
oduc
ts.
4.5.
1. A
sses
s mark
et dy
nam
ics fo
r loc
al co
nsum
ptio
n of
FFV
and
diss
emina
te inf
orm
ation
to re
levan
t priv
ate se
ctor
stake
hold
ers.
• As
sess
, thr
ough
a tar
geted
bas
eline
stud
y, de
man
d an
d su
pply
of lo
cal s
uper
mark
ets an
d co
nsum
ers.
Ident
ify co
nsum
ers’
attitu
des t
oward
s buy
ing lo
cally
pro
duce
d FF
V.•
Com
mun
icate
base
line s
tudy
find
ings t
o se
ctor a
ssoc
iatio
ns, c
oope
rative
s and
unio
ns th
roug
h wo
rksho
ps.
2•
Targ
eted
base
line s
tudy
de
velo
ped
• W
orks
hops
cond
ucted
to 1
00
mem
bers
MoC
I, AC
CI
4.5.
2. D
evelo
p a n
ation
al ca
mpa
ign
( It’s
Grea
t, It’
s Afg
han
Mad
e ) p
rom
oting
the l
ocal
cons
umpt
ion
of d
omes
ticall
y pro
-du
ced
FFV,
to su
ppor
t loc
al pr
oduc
ers c
ompe
ting
again
st im
porte
d pr
oduc
e.Ex
plor
e the
pos
sibili
ty of
crea
ting
/ stre
ngth
ening
bus
iness
link
s betw
een
secto
r ass
ociat
ions
and
instit
utio
ns in
volve
d in
scho
ol m
eal p
rogr
amm
es in
the c
ount
ry ( e
.g. W
orld
Foo
d Pr
ogram
me )
.
2•
Natio
nal c
ampa
ign
desig
ned
and
rolle
d ou
tM
oCI,
ACCI
[ REFERENCES ]
77
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