Ministry of Commerce and Industry
AGRIBUSINESS ACTION PLAN
November 2011
Agribusiness encompasses a wide
range of sub-sectors and products
Raw produce
Horticulture
Fresh fruit,
vegetables,
nuts, olives
Cereals, staples
and sugar crops
Wheat,
potato, sugar,
barley
Animal
husbandry
Dairy, meat,
poultry, fish,
honey
Seeds and pulses
Sunflower,
sesame,
linseed
Spices and
medicinal plants
Liquorice,
saffron,
cumin, anis,
asafoetida
Processing and manufacturing
Dried
fruit &
nuts
Flour
Jams,
juices,
sauces
Olive
oil
Potato
chips
Cakes
and
biscuits
Pasteurised dairy
products: Milk, curd,
yoghurt, cheese
Oils
Dried
meat
Packaging
Trading & Marketing
• Crates
• Boxes
• Jars & lids
•Transport
• Tins
and logistics
• Glass &
•Identifying
plastic
markets
bottles
•Building
• Plastic
trading
wrappers
partnerships
• Tetrapak,
•Marketing
• Sealable
•Branding
bags
• Labels
Scope of Industrial Policy, MOCI and Government partners
November 2011
1
Scope of Agribusiness Action Plan
2

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
Objectives of the Agribusiness Plan
3

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
Issues to be addressed along the
value-chain
4
TRADING
Marketing &
Branding
Knowledge &
market linkage
Customs
Transit &
transport
MANUFACTURING
Processing
Packaging
Standards
PRODUCING
Inputs
Production
Post-harvest
handling
Note: coloured boxes are areas which the
action plan can address
November 2011
Production related actions
5
PRODUCING
Inputs
Production
Post-harvest
handling
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
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.
November 2011
Manufacturing related actions
6
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
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.
November 2011
Manufacturing related actions
7
MANUFACTURING
Processing
Packaging
Standards
Some key issues
• Limited domestic packaging activities
• Poor quality of packaging
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.
November 2011
Manufacturing related actions
8
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…
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.
November 2011
Trading related actions
9
TRADING
Marketing &
Branding
Knowledge &
market linkage
Customs
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
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.
November 2011
Coordination is key since actions….
4

Cover a number of issues along the value chain
and span across various Ministries and agencies
Producing
Cold
storage
MAIL
LEAD
MOCI
MRRD
Support
Trading
Manufacturing
Processing
Packaging
LEAD
LEAD
Support
Support
Support
Support
Support
Support
Standards
Customs
Support
Knowledge
& Market
linkages
Transit &
transport
Marketing
& branding
Support
Support
Support
LEAD
Support
LEAD
Support
Support
Support
MOTCHA
LEAD
ANSA
Support
Support
LEAD
MOF
LEAD
MOPH
Donors
Support
Support
Support
Support
Support
Support
Support
Support
Support
November 2011