1. November 2011 Ministry of Commerce and Industry AGRIBUSINESS ACTION PLAN

2. Agribusiness encompasses a wide range of sub-sectors and products November 2011 1

3. 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 November 2011 2

4. 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 November 2011 3

5. Issues to be addressed along the value-chain November 2011 4 PRODUCING InputsProduction Post-harvest handling MANUFACTURING ProcessingPackagingStandards TRADING Customs Knowledge & market linkage Marketing & Branding Transit & transport Note: coloured boxes are areas which the action plan can address

6. Production related actions November 2011 5 PRODUCING InputsProduction 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

7. Manufacturing related actions November 2011 6 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 ProcessingPackagingStandards Some key issues Low skills level in agro-processing Much of the value of processing is captured by Pakistan and neighbours

8. Manufacturing related actions November 2011 7 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 ProcessingPackagingStandards Some key issues Limited domestic packaging activities Poor quality of packaging

9. Manufacturing related actions November 2011 8 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 ProcessingPackagingStandards 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…

10. Trading related actions November 2011 9 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

11. Coordination is key since actions….  Cover a number of issues along the value chain and span across various Ministries and agencies November 2011 4