November 2011

Ministry of Commerce and Industry

AGRIBUSINESS ACTION PLAN

Agribusiness encompasses a wide range of sub-sectors

and products

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Raw produce Processing and manufacturing Packaging Trading & Marketing

• Crates

• Boxes

• Jars & lids

• Tins

•Glass &

plastic

bottles

• Plastic

wrappers

• Tetrapak,

• Sealable

bags

• Labels

Fresh fruit,vegetables,nuts, olives

Wheat,potato, sugar, barley

Dairy, meat, poultry, fish, honey

•Transport

and logistics

•Identifying

markets

•Building

trading

partnerships

•Marketing

•Branding

Horticulture

Cereals, staples and sugar crops

Animal husbandry

Seeds and pulses

Spices and medicinal plants

Sunflower, sesame,linseed

Dried fruit & nuts

Jams, juices, sauces

Olive oil

Flour Potato chips

Cakes and

biscuits

Pasteurised dairy products: Milk, curd,

yoghurt, cheese

Dried meat

Oils

Scope of Industrial Policy, MOCI and Government partners

Liquorice, saffron,cumin, anis,asafoetida

Scope of Agribusiness Action Plan

The agribusiness action plan: does not address business enabling

environment issues that cut across all business

does address sector-specific constraints does not directly address farm-level and

yield related issues as these are firmly within the remit of MAIL

does address issues as you move up the value-chain into processing/manufacturing, packing, trading, marketing

focuses on agro-processing for exports and import substitution

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Objectives of the Agribusiness Plan

The plan looks at actions to: Move Afghanistan up the agri-business

value chain Improve the quality of Afghan agricultural

products and manufactured food and drink products

Improve the legal and regulatory framework

Expand trading activities in agricultural products

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Issues to be addressed along the value-chain

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PRODUCING

Inputs

Production

Post-harvest handling

MANUFACTURING

Processing

Packaging

Standards

TRADING

Customs

Knowledge & market linkage

Marketing &

Branding

Transit &

transport

Note: coloured boxes are areas which the action plan can address

Production related actions

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PRODUCING

Inputs

Production

Post-harvest handling

Examples:• Review existing cold storage and cold chain facilities to

identify problems and appropriate opportunities in specific localities. Conduct a feasibility study for developing cold chains to support the export of high value products.

• Support local entrepreneurs to develop cold storage and cold chains independently.

• In rural areas, develop improved crop-specific storage facilities, using local materials and building on existing techniques.

Some key issues• Limited information on community

specific gaps and needs related to storage

• Lack of functional cold chains and storages and understanding of the economic viability of cold chains/storage

Manufacturing related actions

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Examples:• Provide TA for transfer of processing skills to existing and

potential investors in the sector• Disseminate MAIL and FAO’s manual on small-scale fruit &

vegetable processing to a wider audience. Develop a set of accompanying manuals for other small-scale and large-scale agro-processing activities in Afghanistan.

MANUFACTURING

Processing

Packaging

Standards

Some key issues• Low skills level in agro-processing• Much of the value of processing is

captured by Pakistan and neighbours

Manufacturing related actions

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Examples:• Undertake a feasibility study for setting up packaging

factories & recycling units in Afghanistan to supply to the local market

• Identify the specific packaging needs required to support agricultural products with the highest potential for export

• In the short term, link producers, processors, traders, and local input suppliers with foreign packaging companies providing quality packaging at competitive prices. When local packaging supply systems are set up, link producers, processors and traders with the Afghan packaging firms.

MANUFACTURING

Processing

Packaging

Standards

Some key issues• Limited domestic packaging

activities• Poor quality of packaging

Manufacturing related actions

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Examples:• Develop regulatory frameworks, grades and standards for

food.• Establish streamlined and transparent food safety

management, inspection and certification system.• Educate producers, processors and traders on food safety

and quality measures.

MANUFACTURING

Processing

Packaging

Standards

Some key issues• Lack of food standards and

infrastructure for quality control • Poorly staffed and equipped

laboratories• Lack of understanding of quality

control by consumers, producers, manufacturers, traders…

Trading related actions

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Examples:• Support the development and promotion of a national brand for

Afghan Afghan agricultural exports, with specific sub-brands for high value products that target niche markets.

• Set-up Agricultural Facilitation offices in key trading locations.• Increase participation of Afghan producers and traders in trade

fairs.• Build capacity within MAIL to support traders and cooperatives

negotiating prices for large scale sales to international buyers.

TRADING

Customs

Knowledge & market linkage

Marketing &

Branding

Transit &

transport

Some key issues• Poor market linkages• No mechanism for traders

to set market prices for exports

• Corruption at customs• Under-exploited brand

equity of Afghan agricultural products

Coordination is key since actions….

Cover a number of issues along the value chain and span across various Ministries and agencies

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Producing TradingManufacturing

MAIL LEAD LEAD LEAD Support Support Support Support

MOCI Support Support Support Support LEAD Support LEAD

MRRD Support Support Support Support Support Support

MOTCHA LEAD

ANSA Support Support LEAD

MOF LEAD

MOPH Support

Donors Support Support Support Support Support Support Support Support

Cold storage

Knowledge & Market linkages

CustomsPackagingProcessing StandardsTransit & transport

Marketing & branding