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Islamic Republic of Afghanistan Ministry of Agriculture, Irrigation and Livestock INVESTMENT OPPORTUNITIES IN AFGHANISTAN'S AGRICULTURE SECTOR 2012 - 2013 Private Sector Development Directorate November 2012

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Islamic Republic of Afghanistan

Ministry of Agriculture, Irrigation and Livestock

INVESTMENT OPPORTUNITIES

IN AFGHANISTAN'S

AGRICULTURE SECTOR

2012 - 2013

Private Sector Development Directorate November 2012

This brochure was published on the occasion of the Kabul International Agfair, which was held on November 7-9, 2012. Its purpose is to provide a brief overview of investment opportunities to AgFair participants, as well as to all other interested investors.

For additional information, please contact the Private Sector Development Directorate at: [email protected]

Apples on a farm in Kabul province

Introductory Words - H.E. Minister Rahimi 3

Welcome to Investors - Abdul Qayoom Bassam,

Private Sector Development Directorate Directo 5

7

9

Irrigation Sector 11

14

Fresh Fruit Processing - Eastern Region 15

Farm Machinery Manufacturing 16

Saffron Processing and Marketing in Herat 17

Automated Packaging Plant in Kabul 18

Livestock By-Products 19

Cashmere Production 20

Fruit Juice Processing in Kabul 21

Tomato Paste Processing

and Marketing in the Northern Region 23

Cold Storage Facility in Kabul 24

Edible Oil Processing and

Packaging in Balkh Province 25

AgFairs as a Networking Opportunity 26

Arazi - Afghanistan Land Authority

AISA - Afghanistan Investment Support Agency

Rice Mill Processing and Marketing

East/Northern Regions

Table of Contents

2

Ministry of Agriculture, Irrigation and Livestock

3

Respected Readers

and Visitors to the Kabul International AgFair,

it is a pleasure to present you with this brochure which provides up-to-date information on investment opportunities in Afghanistan's agricultural sector.

Being one of the fastest growing sectors of the Afghan economy, there is no doubt that agriculture provides almost inexhaustible opportunities for investment. The purpose of this booklet is to provide you with information on already approved projects so that investors wanting to take immediate action can do so.

The Ministry of Agriculture, Irrigation and Livestock is committed to providing valuable support to Afghan farmers and herders not only through activities related to increased production and productivity but also through facilitating access to agribusiness markets for our products.

Introductory Words of H.E. Minister Mohammad Asif Rahimi

Investment Opportunities in Afghanistan's Agriculture Sector

4

MISSION OF THE MINISTRY

To restore Afghanistan's licit agricultural economy

through increasing production and productivity,

natural resource management,

improved physical infrastructure

and market development.

AgFairs, especially those international in nature, are certainly one of the most effective mechanisms to build connections between agricultural producers and traders, thereby contributing to our strategic goals such as: Increase of agriculture production and productivity, economic regeneration and programme support, and change management which encompass three of the four key programs defined in the National Agriculture Development Framework.

We are advancing our strategic goals through concrete organizational improvements within the Ministry. The Private Sector Development Directorate has been reorganised and we are committed to further strengthening, particularly regarding capacity building.

It is my sincere hope that the Private Sector Development Directorate will be a focal point within this Ministry where entrepreneurs are linked to farmers and herders in a way that is mutually beneficial for all involved.

Mohammad Asif Rahimi, MinisterMinistry of Agriculture, Irrigation and Livestock

it is my pleasure to welcome you on behalf of the Private Sector

Development Directorate (PSDD) and AgFair team of the

Ministry of Agriculture, Irrigation and Livestock.

This year we are hosting the eight International AgFair in Kabul

which we hope will produce effective linkages between Afghan

agricultural producers, retailers and traders, both domestic and

international. In order to provide sufficient information for

potential investors in the agriculture sector seeking immediate

business opportunities, we have prepared this brochure which

contains up-to-date information on investment opportunities.

The Private Sector Development Directorate's vision over the

next five years, is to create a dynamic partnership with

Afghanistan's agribusiness sector to expand the

competitiveness of Afghanistan's agricultural products.

The Directorate will achieve its vision by collaborating with all

MAIL Directorates and the agribusiness sector to create an

enabling environment for producers and traders to increase

efficiency and expand agricultural production and exports.

An enabling environment for agribusiness development will be

created through:

n Formulating and implementing consistent polices that

directly increase agribusiness competitiveness;

5

Dear Readers, Entrepreneurs

and Visitors of the Kabul International AgFair,

Ministry of Agriculture, Irrigation and Livestock

Private Sector Development Directorate,a Service for Agribusiness Entrepreneurs

n Directing future public sector and donor investments in

market infrastructure to sites within the MAIL agricultural

development regions that have the highest potential for

increased competitiveness;

n Developing and maintaining a new public-private

partnership for acquiring and disseminating appropriate

market development information throughout

Afghanistan's key value chains; and

n Sustaining public-private sector engagement to identify

and support needed agribusiness policy reforms

and public sector support for agriculture.

PSDD will provide support to agribusiness management both to

existing organizations to leverage the capacity they already

have with management, planning and marketing technical

assistance, and to new companies.

In order to promote increased growth in the agribusiness sector,

PSDD will also support the formation of new enterprises and

organizations, including associations and cooperatives. While

associations are not legally permitted to engage in commercial

activities, they serve an important function in gathering

stakeholders of production, processing, trading and retailing

and providing a forum for the development of market linkages

and advocacy.

The Private Sector Development Directorate is committed to

providing valuable information and high quality service

through its Agribusiness centres to all entrepreneurs seeking

good business opportunities and contributing at the same time

to the development of the Afghan agriculture sector.

For information, please contact us at the following addresses:

With respect,

On behalf of Private Sector Development Directorate Team

Abdul Qayoom Bassam, Director

[email protected]

[email protected]

6

Investment Opportunities in Afghanistan's Agriculture Sector

7

Ministry of Agriculture, Irrigation and Livestock

Afghanistan Land Authority (Arazi) is an executive agency within Ministry of Agriculture, Irrigation and Livestock, whose purpose is to remove major economic constraints, by improving access to governmental lands for commercial activities. Arazi is a single reference point for both domestic and international investors, interested to invest in any kind of legal activities on government owned land in Afghanistan.

The mandate of this authority is to coordinate its activities with the Afghan government, line ministries, donors and private sector organizations to ensure that land needed for productive investment is readily available throughout the country.

Arazi - Afghanistan Land Authority

„We want to provide investors with an international-class service to lease government land through a simplified, transparent, 'one-stop-shop.' Arazi, our new land-lease agency, lease land for farming, grazing, factories and other agribusiness. They plan to offer 25,000 more hectares every year, including a new agricultural industrial park adjacent to Kabul International Airport”. H.E. Mohammad Asif Rahimi, Minister

8

Investment Opportunities in Afghanistan's Agriculture Sector

One Stop Shop for Investment

Investing on land is a sustainable opportunity for individuals and private sector. Arazi is the only authorized entity to provide lease services to investors for different commercial proposes such as: telecommunication, agriculture and livestock, industries and commercial, public services, etc.

Arazi has established an easy and very simple system of leasing procedures, which has reduced the land leasing process from 52 steps to 9 steps.Since establishment of Arazi, about 1100 land lease contracts covering 12,596 hectares of land have been signed with individual investors and private sector entities for different commercial purposes, which have led to 436, 8 millions USD investment and more than 10,000 employment opportunities.

Contacts:For additional information, please contact Mr. Arif Hakimy, phone: +93 794 40 04 34, email: , website: www.arazi.gov.af

[email protected]

Land leased to a telecom company

9

Afghanistan Investment Support Agency (AISA)

Thinking about investing in Afghanistan’s agriculture sector it is good to know that, apart from the Ministry of Agriculture, Irrigation and Livestock with its Private Sector Development Directorate and Arazi, you have one more partner on Government’s side which is tasked to support investors.

Afghanistan Investment Support Agency (AISA) was established in September 2003 in accordance with a directive issued by the Government of Afghanistan as a “One Stop Shop for Investors”. AISA has been charged with the responsibilities of registration, licensing and promotion of all new investments in Afghanistan.

AISA’s mission is to create sustainable enterprise development, particularly small and medium, by providing quality services to investors, facilitating cross border partnerships, advocating business enabling measures & reforms and by promoting Afghanistan as an attractive business and investment destination proactively.

In line with our mission AISA provides to investors the following specific services:

l Online investment inquiry optionsl All necessary permits, licenses and clearances – including online license applicationl General information on investment opportunitiesl Judicial details on investment, tax, labor, insurance and l environmental laws/regulations and social/ecological standards

Ministry of Agriculture, Irrigation and Livestock

10

l Financial information regarding banking facilities, labor costs, and investment incentives;l Support in the acquisition/leasehold of landl Assistance in custom clearance of material related to the investmentl Conferences and symposiums on important investment related issuesl Announcement of investment opportunities via the foreign missions in Afghanistan and the Afghan Embassies overseasl Research, surveys and reviews on issues, which are considered to be of vital importance for investorsl Regular consultations, dialogues, seminars and workshops with stakeholders

AISA provides potential investors with assistance based on their company’s particular requirements and expedites everything from preliminary investigations to final site negotiations.

We encourage you to visit AISA’s web site where you can find all laws and regulations related to investments, as

well as reports, studies and application forms www.aisa.org.af

Contacts:For additional information please contact AISA officers at:email: [email protected] or phone: +93 202 10 34 04Office Address: Opposite Ministry of Foreign Affairs, Kabul, Afghanistan

[email protected]

Investment Opportunities in Afghanistan's Agriculture Sector

11

Ministry of Agriculture, Irrigation and Livestock

Irrigation Sector

Water is a fundamental ingredient for growing crops. Afghanistan has total renewable water resources of 2389 m3/capita-year, and it means that we can irrigate more than 10Mha (million hectares) agriculture land with it. According to the Afghanistan Statistical Yearbook (2009-2010) on land use, only 12 percent (7.8 million hectares) of Afghanistan's 65 million hectares of land is classified as arable. The total amount of irrigated land in Afghanistan has declined from a high of 3.2 million hectares in the 1970s to about 1.8 million hectares at present (23 percent of the overall arable hectarage of the country). These facts and figures indicate huge potential for investment in the Irrigation sector.

In many regions around Afghanistan, it is possible to readily see dry land with no crops alongside a river bank because there is a few feet elevation difference between the water and agricultural land. Farmers use gasoline pumps unsustainably because of the high price of fuel. One of the low cost technologies available in the market is solar pumps, which can lift water from up to 200 meters, and continue to pump as long as day light is available.

Solar pumps

12

Investment Opportunities in Afghanistan's Agriculture SectorInvestment Opportunities in Afghanistan's Agriculture Sector

IHFD (International Home Finance & Development, LLC) is active in this field and have completed several projects inside Afghanistan. They are producing mobile solar stations that could cost USD15,000/unit pumping 2 inches of water from 70 meters below the ground surface. The cost dramatically lessens with decrease in elevation.

Contacts: For further information, please contact Rafaat B. Ludin, International Home Finance & Development, LLC, phone: +93 (0) 788 88 80 41 email: [email protected]

13

High Efficiency Irrigation Systems (sprinkler, drip, bubbler) use is common in agriculture. It has gained entry in Afghanistan's agriculture sector to produce a good yield with very little water. Because of a lack of local manufacturers for sprinklers, drip and bubbler systems inside Afghanistan their parts or the systems are extremely expensive due to the involvement of multiple layers of suppliers/profit makers. Currently, the cost of putting a drip system in one jerib of agricultural land ranges from $500 SU to $1000 US, depending on the source of the water. “Noor Brothers” and “Royal Abyari Supplies” install this equipment throughout Afghanistan. Manufacturing of this equipment locally could reduce costs dramatically.

Contacts:For further information, please contact Dr. Nisar Ahmad Zubair, Royal Aabyari, phone: +93 (0) 799 60 5740 email: [email protected]

Manufacturing of High Efficiency Irrigation Systems/Parts

Manufacturing of Precast Parabolic structures

Surface water is the biggest source of irrigation for agriculture in Afghanistan. Due to a porous sandy bed of canals their efficiency is below 30%. The Ministry of Agriculture, Irrigation and Livestock recent initiative (On-Farm Water Management Project) lines earthen canals through the use of PCPS (Precast Concrete Parabolic Structures). This is one of the best options to reduce the conveyance time and improve efficiency.

There is a demand for hundreds of these manufacturers, but currently only two manufacturers are available in the market. The cost of establishing this factory is in the range of $50,000 US.

Contacts:For further information, please contact Eng. Atiqurahman,phone: +93 786 66 25 90 email: [email protected]

Ministry of Agriculture, Irrigation and Livestock

The purpose of this project is to increase rice production through

the importation of certified rice varieties from India;

introduction of new technology for cleaning, processing and

packaging; and implementation of a marketing strategy.

Annual production of rice in Afghanistan is 450,000 MT. This

year Afghanistan imported 155,676 MT of rice worth

$122,000,000 US, largely from Pakistan. Afghan rice is also

exported to central Asia countries.

Value of investment:

Total investment of $12,850,000 US is required, of which

$10,000,000 will be used to construct a rice processing plant;

$2,400,000 to purchase and distribute rice seed to farmers;

and $450,000 for marketing ($200,000 year one, $150,000

year two, $100,000 year three).

Contacts:

For further information please contact Mr. Sherzad Azizi,

Afghan Rice Processing Mill,

phone: +93 (0) 774 23 58 17 or +93 (0) 775 82 67 68

email: [email protected].

14

Rice Mill Processing and Marketing East/Northern Regions

Investment Opportunities in Afghanistan's Agriculture Sector

15

Ministry of Agriculture, Irrigation and Livestock

The main objective of this project is import substitution for juices ($24,016,542 US 2011) and jams and jellies ($1,840,784 US 2011). A processing plant would be constructed in eastern Afghanistan to purchase fresh fruits from the eastern and central regions. Processed products will be sold nationally and export possibilities for concentrates explored. The processing plant will be equipped with a tetra pak line in order to produce juices with a long shelf-life. There are a few small fruit processing facilities that could explore joint ventures with new investors. One such company is Masroor Food Processing established in 2008 and located in Jalalabad. Their processing capacity is 2 MT/day and includes juices, jams and jellies.

Value of potential investment: Total value: $16,000,000 US, of which $12,000,000 is for processing plant construction and $4,000,000 is for purchase of approximately 20,000 MT of fresh fruit. Marketing and promotion (un-estimated at present) is required. Project preparation can start immediately and production can commence in March 2013.

Contacts:For further information, please contact Mr. Qayoom Bassam, mobile phone: +93 (0) 799 84 00 47, email: [email protected]

Fresh Fruit Processing - Eastern Region

A vineyard in Badam Bagh

16

Farm Machinery Manufacturing

The purpose of this project is to promote the manufacture and

distribution of farm machinery and tools. Farm machinery

manufacturing (especially tractor-powered threshers and

cultivators) is a sunrise sector experiencing high growth. The

farm machinery sector is dependent on Afghanistan's rapidly

mechanizing agricultural sector. There are 4 main

manufacturers of farm machinery in Afghanistan.

Jawed Afghan with its foundry and precision tools is the most

well-known farm machinery company in Afghanistan. This

company produces threshers for wheat and rice cultivation,

farm trailers, plows and cultivators.

Akhtar Mohammed Smith and Agricultural Tools main products

are tractor-mounted blades for soil mulching, farm trailers as

well as plows and cultivators.

Hussein Implement Manufacturer specializes in plows and

cultivators, and is slowly expanding into corn threshers.

Jan Agha produces corn and rice threshers as well as plows and

cultivators.

Value of potential investment:

Total value of investment is $10,000,000 US, of which

$3,000,000 is for a manufacturing plant, $5,000,000 is for

working capital, and $2,000,000 is for marketing purposes.

The nascent farm machinery sector accounts for $2,000,000 US

of a growing market that is valued at up to $20,000,000

including imports.

Contacts:

For further information please contact Mr. Qayoom Bassam,

mobile: +93 (0) 799 84 00 47

email: [email protected]

Investment Opportunities in Afghanistan's Agriculture Sector

17

Saffron Processing and Marketing in Herat

The purpose of this project is to promote the processing of

saffron and additional value addition. An investor will be

encouraged to build a saffron processing plant in Herat

province. In addition, an investor will allocate funds to develop

a marketing strategy to promote sales and development of an

international “Afghan” brand.

Afghan saffron is currently exported to Spain, France, UAE,

India, USA and Japan; however, processing, packaging, and

marketing require improvement in order to maximize the

returns from saffron cultivation. Year one plans are for the

purchase of 4,000 kg of saffron increasing in year two to

6,000,000 and 10,000,000 in year three. There are three

major Afghan companies that are heavily involved in the

production and export of saffron. Afghan Red Gold Saffron is

the largest of the three companies.

Value of potential investment:

Total value of investment is $6,550,000 US, of which $350,000

is for construction of processing plant and facility in 2012;

$6,000,000 is for purchase of 4,000 kg of saffron in 2013;

and $200,000 is for marketing expenses.

Contacts:

For further information, please contact: Ms. Sima Ghoryani,

Ghoryan Women Saffron Association,

phone: +93 (0) 703 18 80 20, or +93 (0)799 36 17 30,

email:

Mr. Azizullah Rahmati, Afghan Red Gold Saffron LLT,

phone: +93 (0) 799 66 66 50, or +93 (0) 700 40 23 40,

email:

Mr. Ghaffar Hamidzay, Afghan Saffron,

phone: +93 (0) 799 30 30 96,

email: ,

[email protected];

[email protected];

[email protected] www.afghansaffron.af

Ministry of Agriculture, Irrigation and Livestock

The purpose of this project is to construct and operate a large,

automated packaging plant for agribusiness products.

Currently only 10% of the large cartons required in

Afghanistan are produced domestically. The balance of

packaging is imported from Pakistan and Iran. Local demand is

estimated to be 100,000,000/cartons for year one and

increasing thereafter. Kabul Packages has been in business for

12 years and currently employs 30 permanent staff and 10

casual staff.

Value of potential investment:

Total value of investment is $30,000,000 US, of which 50% will

be provided by the Kabul Packages Company. Capital

investment costs count for approximately $15,000,000.

To date a number of meetings have been held with the Afghan

Government including a meeting with His Excellency President

Karzai and His Excellency Mohammad Asif Rahimi, Minister of

Agriculture Irrigation Livestock. An official application has been

prepared for the Afghanistan Land Authority (ARAZI).

This project offers potential employment for 300 – 500 people

depending on sales volume. The Afghan Government needs to

amend their importation rates for cartons and the required raw

materials.

Contacts:

For further information, please contact Kabul Packages, Mr.

Haji Abdul Ghafoor, phone: +93 (0) 799 33 00 22

email:

and Mr. Gul Mohammad, +93 (0) 799 73 95 71

[email protected]

18

Investment Opportunities in Afghanistan's Agriculture Sector

Automated Packaging Plant in Kabul

Agriculture Market Infrastructure Project (AMIP) is designed to

undertake livestock and horticulture market investments and

provide support to improve the commercial operations of

facilities, including slaughterhouses, improved post-harvest

technologies and marketing practices.

The project is expected to work with existing farmers'

cooperatives and groups to stimulate agribusinesses and assist

commercializing a largely traditional sector which has been

held back due to lack of investments and standard regulatory

framework.

Five slaughter-houses (2 in Kabul and 1 each in Mazar, Kunduz,

and Herat) will be established. Contractors’ teams have been

mobilized and the slaughter-houses are expected to be

completed late 2013.

When the slaughter-houses run at full capacity they will

produce 3,000 hides and skins per shift (8 hours) on a daily

basis. In addition, there will be animal waste consisting of

blood, faeces and waste water offering investment

opportunities for the private sector.

Contacts:

For further information, please contact Mr. Matin Behzad,

phone: +93 (0) 779 29 19 48

email: [email protected]

19

Ministry of Agriculture, Irrigation and Livestock

Livestock By-Products

Herati Cashmere and Skin Processing Plant (HCS) based out of

Herat has been involved in cashmere and animal skin

processing/trading since 1999. This company has been exporting

raw cashmere to China, Europe, and the USA. The company has

already invested approximately $5,000,000 US in processing

facilities, including land, buildings and machinery. HCS has

15,000 square meters of land with an approximately 10,000

square metres building.

HCS has established its first cashmere dehairing combine line in

Herat in 2011. A new cashmere dehairing line was just established

in north-eastern Afghanistan, Faizabad City, and a third dehairing

line will arrive in November 2012 for installation in Herat.

HCS has its own cashmere scouring line and test laboratory in

Herat. The company started developing hand spun cashmere

yarn at the end of 2011 and successfully found a new market

operating mainly in the US and started working with popular

American companies such as Kate Spade, J. Crew, Downtown Yarn,

and Elder Statesman.

HCS has just brought new equipment to Herat that will be used for

top making and is currently under installation. With this equipment

the company will be able to start the production of industrial spun

cashmere yarn, using two spinning mills already available in Kabul.

HCS already has marketing agencies in the US and the United

Kingdom. This company has the second largest tannery in the

region having daily capacity of 6,000 – 7,000 goat or sheep

skins. Its processed skin, wet-blue form, is being exported to Italy.

Value of investment:

$5,500,000 US is needed to operate HCS processing facilities

and sell processed materials, both cashmere and animal skins, to

the international market. This investment provides great

opportunity for value addition towards final products.

Contacts:

For further information, please contact Herati Cashmere & Skin

Processing Plant (HCS), Mr. Abdul Basir Hotak, President,

phone: +93 (0) 700 43 82 23

20

Investment Opportunities in Afghanistan's Agriculture Sector

Cashmere Production

21

Ministry of Agriculture, Irrigation and Livestock

Afghanistan is home to some of the most sought-after varieties

of fresh fruits and vegetables in the world. The country's

pomegranates, melons, grapes and apricots are recognized

internationally for their large size, sweetness, and color.

Global Industry Analysts, in an industry report on the fruit and

vegetable juice sector, state that the market for fruit and

vegetable juices has the potential to reach 72.79 billion litres

by 2017. The primary driver is a rising trend for consumer

purchase of healthy beverages.

Omaid Bahar Fruits Processing Ltd. (OBFPL) is the first and only

Afghan company to produce fruit concentrate as well as fill,

package, and distribute fruit juice drinks under their own brand.

Fruit concentrates and juices include Afghan pomegranates,

apples, mulberries, apricots, peaches, plums, cherries, and

carrots.

Fruit Juice Processing in Kabul

Did you know that apricots from Afghanistan taste 33% sweeter compared to similar varieties grown elsewhere?

22

Investment Opportunities in Afghanistan's Agriculture Sector

OBFPL has annual processing capacity of 30,000 tons of locally

grown fruits, with an estimated turnover of $20 million US per

year.

The current market size in Afghanistan is in excess of US $100

million per year with an estimated annual growth rate of 15%.

Substantial private financing has already been obtained and

the company is looking for expansion funding. $25,000,000

US has already been invested to date.

Value of investment:

An amount of $20,300,500 US is estimated. Total sales for

2012 are projected at $20 million (1.5 million net profit) and

expected to increase to $29 million (1.8 million net profit) by

2014. These projections are expected to double or triple with

an additional $10 million US investment.

Contacts:

For further information, please contact Mr. Mustafa Sadiq,

President, Omaid Bahar Fruit Processing Ltd.,

phone: +93 (0) 786 00 20 07

email: [email protected]

Afghanistan's fruits are superior in taste and famous across the

region.

The purpose of this project is to expand tomato paste

processing and increase production through the provision of

certified tomato seed to farmers in the northern region.

Increased locally produced tomato paste provides a strong

opportunity for import substitution.

QariZadah Tomato Paste Processing Company has been in

operation for six years and has an exclusive market in the

northern regions of Afghanistan. Tomato production is

estimated at 44,000 MT per year.

Current processing production is 15,000 cans per day although

there is a capacity of 45,000 cans per day. There is great

potential to extend their markets throughout Afghanistan. Cans

are currently imported from China, Iran and Pakistan.

Value of investment:

Total value of investment would be $2,300,000 US, of which

$1,150,000 US is required to purchase modern equipment

offering increased cleaning, processing and packaging

capacity. In addition, $500,000 US is required to purchase raw

tomatoes; $200,000 for distribution of certified seed to

farmers; and $450,000 US to implement a marketing strategy

($200,000 year one, $150,000 year two, and $100,000 year

three).

Contacts:

For further information, please contact QariZadah Tomato

Paste Processing Company, Mr. Sayed Arif Qarizadah,

phone: +93 (0) 700 50 83 53.

23

Ministry of Agriculture, Irrigation and Livestock

Tomato Paste Processing and Marketing in the Northern Region

The purpose of this project is to build a commercial cold storage

facility for fruit and vegetables. It would be located near the

Kabul fruit market. Although large in size, it would have

individual rooms so that operation is based on demand at any

given time. These rooms need to be designed carefully so they

can benefit from natural temperature differences. Insulation

panels are required for the construction of a chiller (fruit and

vegetables) and freezer (meat and fish). Refrigerator

equipment including condensing units and evaporator are

needed for temperature control.

Value of investment:

An amount of $500,000 US, depending on size of facility, is

needed to cover capital investment costs and other expenses.

An adequate and dependable electricity supply is required for

this venture.

Contacts:

For further information please contact Afghan Cooling

Company, Eng. Shiragha Wahabzai, Cold Storage Speciality,

phone: +93 (0) 798 13 75 79

email: [email protected]

24

Investment Opportunities in Afghanistan's Agriculture Sector

Cold Storage Facility in Kabul

The purpose of this import substitution opportunity is to increase

production through the provision of certified seed and fertilizer

thereby expanding processing capacity.

The Saniazada Edible Oil Extraction Company started business

operations in 2003 and has been extracting and refining oil

from a variety of seeds (cotton, sesame, flax, sunflower and

olive). They have developed a strong relationship with farmers.

This company has installed a new edible oil processing and

refinery factory with a capacity of 32 MT/day. In the Northern

provinces, oil crop production is estimated at 69,661 MT

annually. There is great potential for Saniazada to expand

their market throughout Afghanistan.

Value of investment:

Total value of investment is $8,800,000 US, of which

$8,000,000 US is required to construct store rooms for raw

material and final products; purchase of packing equipment

and marketing is estimated at $600,000 US; and purchase of

raw materials (oil seed) and other inputs such as fertilizer is

estimated at $200,000.

Contacts:

For further information please contact Eng. Emamuddin,

Saniazada, Edible Oil Processing Company,

phone: +93 (0) 700 51 04 92

email: [email protected]

25

Edible Oil Processing and Packaging

Balkh Province

Ministry of Agriculture, Irrigation and Livestock

26

Afghanistan’s AgFairs - A Great Networking Opportunity

Afghanistan's agriculture fairs are held annually and have drawn thousands of business people from across the country and from 15 nations including India, United Arab Emirates (UAE), Pakistan, Tajikistan, the United States, the United Kingdom, Italy, New Zealand, and Germany. Last year, more than 55,000 visitors came to the 12 AgFairs that were held in Kabul, Mazar-e-Shariff, Kunduz, Herat and other provinces to view the exhibitions.

The Kabul AgFair is the largest trade fair in Afghanistan, thus it is a great networking opportunity which should not be missed.

Located at the crossroads of Asia, Afghanistan is an ideal meeting point for all companies searching for high quality agriculture products and networks to respond to the surging consumer markets of India and China. The Kabul International AgFair provides a unique business opportunity to:

t Identify prime agri-business investment opportunities;t Explore profitable markets and business sectorst Gain valuable information from policy makers and business leaders;t Forge business deals in the country's expanding agricultural sector.

Contacts:For additional information please contact AgFair Secretariat at: [email protected]

Investment Opportunities in Afghanistan's Agriculture Sector

Ministry of Agriculture, Irrigation and Livestock

Afghanistan is home to some of the most sought-after varieties of fresh fruit and vegetables in the world.

The country's pomegranates are recognized internationally for their large size, sweetness, and color.

Its apples are distinctive for their high sugar content and crispness.

Afghanistan's melons, apricots, and grapes are superior in taste and famous across the region.

And Afghanistan's riches aren't limited to fresh produce. Afghanistan's nuts, including wild pistachios, almonds, walnuts, and pine nuts, have long been a favorite in

neighboring countries. The high-value spice of saffron can thrive in more than half

of the country's 34 provinces. Afghanistan ranks as the third largest producer of

cashmere in the world and has the potential to dramatically expand its market share of this luxury

product.

Investing in Afghanistan is a great chance to boost your business!

27

Contacts:

Private Sector Development DirectorateMinistry of Agriculture, Irrigation and LivestockJamal Meena, Opposite Kabul University, Kabul, Afghanistan

Phone: +93 (0)799 84 00 47

Email: [email protected] [email protected]

www.mail.gov.af