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Ministry ofIndustry and CommerceIslamic Republic of Afghanistan
AFGHANISTAN’SNATIONAL EXPORT STRATEGY 2018-2022
SAFFRON SECTORSpicing up Afghan exports
AFGH
ANISTAN
• NATIO
NAL EXPO
RT STRATEG
Y - SAFFRON SECTO
R • 2018-2022
ITC is the joint agency of the World Trade Organization and the United Nations. As part of ITC’s mandate of fostering sustainable development through increased trade opportunities, the Chief Economist and Export Strategy section offers a suite of trade-related strategy solu-tions to maximize the development pay-offs from trade. ITC-facilitated trade development strategies and roadmaps are oriented to the trade objectives of a country or region and can be tailored to high-level economic goals, specific development targets or particular sectors, allowing policymakers to choose their preferred level of engagement.
The views expressed herein do not reflect the official opinion of ITC. Mention of firms, prod-ucts and product brands does not imply the endorsement of ITC. This document has not been formally edited by ITC.
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The International Trade Centre ( ITC )
Street address : ITC, 54-56, rue de Montbrillant, 1202 Geneva, SwitzerlandPostal address : ITC Palais des Nations 1211 Geneva, SwitzerlandTelephone : + 41- 22 730 0111Postal address : ITC, Palais des Nations, 1211 Geneva, SwitzerlandEmail : itcreg@intracen.orgInternet : http : / / www.intracen.org
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AFGHANISTANNATIONAL EXPORT STRATEGY2018-2022SAFFRON SECTOR
This project is funded by the European Union
Ministry ofIndustry and CommerceIslamic Republic of Afghanistan
iii
ACKNOWLEDGEMENTS
The Saffron Strategy forms an integral part of Afghanistan’s National Export Strategy ( NES ). It was developed under the aegis of the Islamic Republic of Afghanistan, and the leadership of the Ministry of Industry and Commerce ( MoIC ) and the Afghanistan Chamber of Commerce and Industry ( ACCI ), in close collaboration with the Ministry of Agriculture, Irrigation and Livestock ( MAIL ), the Afghanistan National Standards Authority ( ANSA ) and the Afghanistan Women Chamber of Commerce and Industry ( AWCCI ). The strategy builds on the work done by the Saffron Development National Committee and benefited from the contributions of sector stakeholders and as-sociations, 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 in view of increasing export performance and social dividends.
iv
NOTE TO THE READER
The Afghanistan NES was developed on the basis of a participatory approach, dur-ing which over 500 Afghan industry leaders, small business owners, farmers and public sector representatives held consultations to reach consensus on key sector competitiveness 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 where supply chain assessments were carried out to gain further knowledge on key issues such as quality procedures, technical skills, lean man-agement, quality of raw materials, access to markets, 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 initiatives of development partners so that collaboration can occur during implementation.
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 economic empowerment of youth and women. Equally importantly, the NES initiative already accommodates budget-ing 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.
v
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, of-fering 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
vi
CONTENTS
Acknowledgements iii
Note to the reader iv
EXECUTIVE SUMMARY 1
RED GOLD : DISSECTING SAFFRON’S CONTINUED DOMINANCE IN THE GLOBAL SPICES SECTOR 3
THE VERSATILE QUEEN OF SPICES : SAFFRON PRODUCT MAP 3
LEAD PLAYERS AND THEIR MARKET DYNAMICS, PRICING STRUCTURES AND DISTRIBUTION APPROACHES 5
KEY GLOBAL TRENDS 7
STIGMAS FOR PROSPERITY : PLANNING A ROBUST FUTURE FOR AFGHAN SAFFRON 9
A CURRENT VALUE CHAIN WITH HIGH POTENTIAL FOR GROWTH AND SCALABILITY 9
Production of saffron 9
Saffron processing 9
Distribution 10
A SECTOR HARBOURING MULTIPLE COMPARATIVE ADVANTAGES FOR AFGHANISTAN 12
HIGH INITIAL COSTS AND LONG PROFIT GESTATION ARE BARRIERS TO ENTRY FOR PROSPECTIVE SAFFRON FARMERS 13
A HIGHLY SEASONAL AND LABOUR-INTENSIVE SECTOR ( ESPECIALLY FOR WOMEN ) 14
PROMISING EXPORT PERFORMANCE OF AFGHAN SAFFRON 15
OVERCOMING HURDLES FOR GROWTH : KEY COMPETITIVENESS CONSTRAINTS 17
ASSESSING AFGHANISTAN’S POSITIONING VIS-À-VIS THE GLOBAL SAFFRON VALUE CHAIN 27
FACTORS DRIVING GROWTH FOR THE AFGHAN SAFFRON VALUE CHAIN 27
Short-term : Compete on quality and cultivate relationships with leading importers, especially in the EU and Middle East 27
Long-term : capitalize on established brand and advance up the value chain 28
vii
MARKET POSITIONING : PREMIUM AND HIGH-QUALITY SEGMENTS 28
Short-term priority markets ( 1–3 years ) 28
Medium-to-long term ( +3 years ) 32
ACHIEVING THE GOALS :VISION AND STRATEGIC OBJECTIVES 35
VISION 35
Strategic objective 1 : Increase production and productivity through improved supply-side conditions. 35
Strategic objective 2 : Strengthen the organization of the sector’s ecosystem through greater collaboration and efficiency. 37
Strategic objective 3 : Spur market penetration and development through integrated quality management, packaging and branding operations. 39
MOVING TO ACTION 41
KEY REQUIREMENTS FOR EFFECTIVE IMPLEMENTATION 41
Establish and operationalize a public and private sector coordinating body and executive secretariat 41
PLAN OF ACTION 43
REFERENCES 53
viii
FIGURES
Figure 1 : Afghanistan’s saffron export strategy : theory of change 2
Figure 2 : World consumption trends, 2007–2016 5
Figure 3 : World’s top exporters of saffron ( 2016 ) 6
Figure 4 : World’s top importers of saffron, 2016 7
Figure 5 : Current value chain 11
Figure 6 : Afghan saffron : enabling and dissuading factors 12
Figure 7 : Exported value of Afghan saffron, 2005–2016 ( US $ thousands ) 15
Figure 8 : Top 10 export destinations of Afghan saffron, 2012 ( US $ thousands ) 16
Figure 9 : Top 10 export destinations of Afghan saffron, 2016 ( US $ thousands ) 16
Figure 10 : Problem tree – challenges to compete 20
Figure 11 : Problem tree – challenges to connect 22
Figure 12 : Problem tree – challenges to change 25
Figure 13 : Iranian saffron export dynamics 30
Figure 14 : Afghanistan exports of spices excluding saffron ( 2012-2016 ) in US$ thousands 34
Figure 15 : Future value chain – strategic objective 1 36
Figure 16 : Future value chain – strategic objective 2 38
Figure 17 : Future value chain – strategic objective 3 40
ix
TABLES
Table 1 : Uses of saffron – final concentration of saffron in parts per million in the final product 4
Table 2: Target market: India 29
Table 3: Target market: Europe 31
Table 4: Target market: United States 32
BOXES
Box 1 : Saffron in food 4
Box 2 : What explains the high price of saffron in global markets? 8
Box 3 : Saffron versus opium poppy cultivation 14
Box 4 : The role of Afghan women in saffron production 14
Photo: creative commons
xi
ACRONYMS
The following abbreviations are used :
ABA Afghanistan Banks Association
ACCI Afghanistan Chamber of Commerce and Industries
ANSA Afghanistan National Standards Authority
ARIA Agriculture Research Institute of Afghanistan
AWCCI Afghanistan Women Chamber of Commerce and Industry
DAB Da Afghanistan Bank
EU European Union
ISO International Organization for Standardization
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
MoHE Ministry of Higher Education
NES National Export Strategy
PoA Plan of Action
SMEs Small and medium-sized enterprises
SPS Sanitary and Phytosanitary
UAE United Arab Emirates
UNIDO United Nations Industrial Development Organization
USAID United States Agency for International Development
Photo: (CC BY-NC-SA 2.0) Kazu Ahmed @flickr.
[ EXECUTIVE SUMMARY ]
1
EXECUTIVE SUMMARY
The Afghan adage, ‘drop by drop a river is made’ holds es-pecially true for the saffron sector. Although labour-intensive to produce, with a long wait between planting and harvest-ing, saffron offers ample rewards for those who invest in its production ; kilo for kilo, saffron is the highest-value spice in the world.
While saffron production in Afghanistan dates back more than 100 years, cultivation remained marginal until a few decades ago. Saffron is experiencing a revival in the country for a number of reasons. First, the high value that it com-mands in the international market bolsters its attractiveness because it has a high value-to-volume ratio, making it easy and profitable to export. Second, agronomic and climatic conditions make Afghanistan an ideal location to grow high-quality saffron. The distinct attractiveness of Afghan saffron has been validated on numerous occasions, most recently in 2016, when Afghan saffron was ranked first out of 30 com-peting regions at the International Taste and Quality Institute of Brussels.
From the perspective of socioeconomic development, the high labour requirements of the saffron industry offer employment opportunities in both peak and off-peak sea-sons ( especially for women ). Additionally, the high profit-ability of saffron provides incentives for farmers to cultivate it instead of opium. As a result of these factors, there is wide consensus among leaders in the Afghan public and private sectors, as well as the international development communi-ty, that there are significant economic and social benefits to increased saffron production in Afghanistan. In this regard, the Government has embarked in a five-year national plan for saffron development, led by MAIL.
At present, the saffron sector’s export potential is con-strained by supply-side challenges in Afghanistan’s busi-ness environment as well as difficulties penetrating new markets. To overcome these hurdles, improvements are needed across the value chain in areas ranging from plant-ing techniques to harvesting methods to packaging.
Accordingly, the Strategy aims to achieve the following impact, with the overarching goal of strengthening Afghan saffron’s value proposition to international buyers :
� Increase saffron exports in terms of volume and value � Gradual migration to the production of high-quality saf-
fron from medium/low-quality saffron � Increase income and socioeconomic benefits to actors
across the value chain � Position Afghan saffron as a prized product with a recog-
nizable and lasting brand in international markets.
This Strategy is driven by the following overall vision :
“ Saffron : spicing up Afghan exports ”To achieve this vision, the Strategy focuses on three strate-gic objectives.
Strategic objective 1 : Increase production and productivity through improved supply-side conditions.
This strategic objective consists of progressively profes-sionalizing and standardizing both farming and processing practices to achieve larger-scale production while being rig-orous and systematic in managing issues related to quality. It is also about encouraging structural change by facilitating the purchase of additional inputs ( land, buildings ), allowing for adjustment and economies of scale.
Strategic objective 2 : Strengthen the organization of the sec-tor’s ecosystem through greater collaboration and efficiency.
This strategic objective will focus on how coordination and institutional support can be enhanced between the various actors involved in the value chain, including farm-ers, intermediaries, exporters, researchers and other actors. Success in this area will be achieved through improved sec-tor governance, institutional strengthening and empowered sector associations, with particular focus on women-led organizations. Moreover, the strategy will also support the government’s ongoing efforts to expand countrywide the cultivation and harvest of saffron through the ‘Five Years National Saffron Development Program’.
Strategic objective 3 : Spur market penetration and development through integrated quality management, packaging and branding operations.
The aim of this objective is to build on the historical but fragile achievements of Afghan saffron to cement its pre-mium reputation in international markets. This can be done by supporting an integrated approach through which quality procedures, packaging equipment and branding strategies are bundled together to best promote and commercialize Afghanistan’s unique offering. As the last line of defence in protecting the reputation of Afghan saffron, institutions that test quality will need to be supported.
Finally, this component of the Strategy will focus on building the capacity of select enterprises to modernize their brand and thereby appeal to a larger pool of potential buy-ers, in addition to developing the analytical ability to identify and adapt to dynamic global trends.
2
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / SAFFRON SECTOR 2018-2022 ]
Figure 1 : Afghanistan’s saffron export strategy : theory of change
Change Compete Connect
Vision
• Increased saffron exports in terms of volumes and value• Gradual migration to the standardization and certification of quality saffron production• Increased income and socio-economic benefits to actors across the value chain, afforded by the
growth in production and exports• Positioning of Afghan saffron as a highly prized product commanding a lasting brand in
international marketst
Saffron: spicing up Afghan exports
1. Increase production and productivity through
improved supply-side conditions
2. Strengthen theorganization of the sector’s eco-system through greater
collaboration and efficiency and
appropriate skillsupgrading
3. Spur market penetration and
development through integrated quality
management, packaging and branding operations
Enabling strong market linkages
with the tight global distribution
channels
Improving socio- economic situation
of farmers, especially women
workers
Increasing absolute volumes, while
improving quality levels
Differentiating via robust brand management
A high potential sector requiring broad support across the value chain
IMPA
CTST
RATE
GIC
OBJE
CTIV
ESSI
TUAT
ION
ANAL
YSIS
STRA
TEGI
C TH
RUST
SIM
PACT
• Lack of extension services tailored to the sector
• Insufficient investment in development, dissemination and practical implementation of sector- focused research
• Limited access to credit• Insufficient support services
targeting women throughout the value chain
• Weak ability of enterprises to connect with foreign buyers
• Underdeveloped marketing of Afghan saffron in international markets
• Weak organization among producers and limited services provided to members
• Limited coordination and dialogue among value chain actors
• High prices and low availability of corm limit and new entrants
• Small-scale saffron production difficult to achieve economies of scale
• Low productivity levels• Weak packaging and quality
assurance
[ RED GOLD : DISSECTING SAFFRON’S CONTINUED DOMINANCE IN THE GLOBAL SPICES SECTOR ]
3
RED GOLD : DISSECTING SAFFRON’S CONTINUED
DOMINANCE IN THE GLOBAL SPICES SECTOR
THE VERSATILE QUEEN OF SPICES : SAFFRON PRODUCT MAP
Culinary Medicine Textile dye Perfumery
Saffron
Saffron is used in an ever-increasing number of applications and industries and it is likely that the full potential of saffron is far from understood. At present, there are four primary applications of saffron worth mentioning here ( with more detail provided below ). Saffron is used as : a cooking spice and an herbal remedy, and in textile dyeing and perfumery.
Food industry : Saffron enjoys a coveted and highly valued status in the culinary world. It is widely used as a seasoning in European / Mediterranean, Middle Eastern, North African and Asian cuisines. Saffron is used as an herb and a spice as well as a flavouring ingredient. It is also increasingly used as an alternative to chemical additives, especially in western markets.
Medicine : Saffron has been used in traditional medicine in Persia, Egypt and Europe for millenniums. In the age of modern medicine, pharmaceutical firms are researching the potential of saffron as a health supplement. A recent United Nations Industrial Development Organization ( UNIDO ) re-port summarizes the medicinal benefits of saffron as follows :
There is some evidence that saffron may have anti-cancer effects and may help lower cholesterol and triglycerides. Saffron is also sometimes used to help with certain condi-tions, such as baldness. Its effect on strengthening male fertility is also known. In addition, it has some positive ef-fects on amyotrophic lateral sclerosis disease.1
Textile dye : Saffron is used as a fabric dye, primarily in Asian countries such as India and China. Although not par-ticularly cost-effective or stable ( with colours fluctuating over time ), the popularity of saffron as a dye stems from the sta-tus it conveys, a trait that endures to the present day.
Perfumery : The attractive quality of saffron’s complex aro-ma has also been recognized by the perfumery world, al-though this is not a significant market segment yet.
1.– UNIDO ( 2014 ). Saffron Industry Value Chain Development in Iran : Diagnostic Study Report. Available from https ://open.unido.org/api/documents/4672742/download/Saffron %20Industry %20Value %20Chain %20Development %20In %20Islamic %20Republic %20of %20Iran %20- %20Diagnostic %20Study %20Report..
4
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / SAFFRON SECTOR 2018-2022 ]
Box 1 : Saffron in food
Saffron is used as a culinary seasoning and to colour cottage cheese, chicken and meat, rice, mayonnaise, liquors and cordials. It is also used in specialty breads, cakes, confectionaries and Mughlai dishes. Saffron is also used as a perfume in cosmetics.
In medicine, saffron is used in fevers, melancholia, and enlarge-ment of liver and spleen. In Ayurvedic medicine it is used to heal arthritis, impotence and infertility. It has a wide range of uses in Chinese and Tibetan medicines.
Source : Spices Board of India.
Table 1 indicates the different use of saffron.
Table 1 : Uses of saffron – final concentration of saffron in parts per million in the final product
Uses of saffron Saffron powder Saffron extract
1 Baked goods 10 1.9 –14.0
2 Non-alcoholic beverages 1.3 1.3 to 7.5
3 Ice-cream — 1.3 to 9
4 Meats 260 —
5 Alcoholic beverages 200 —
6 Condiments 50
Source : Sampathu, S.R. and others ( 1984 ).
Photo: ITC
[ RED GOLD : DISSECTING SAFFRON’S CONTINUED DOMINANCE IN THE GLOBAL SPICES SECTOR ]
5
LEAD PLAYERS AND THEIR MARKET DYNAMICS, PRICING STRUCTURES AND DISTRIBUTION APPROACHES
The global market size of the saffron sector was US $ 213 million in 2016 ( imports ). While saffron’s exports in value have continuously increased since 2013, the exported quan-tity has decreased since 2014. This indicates an increase in saffron prices, which is partly caused by the exchange rate fluctuations faced by the Islamic Republic of Iran, which is the greatest producer of saffron worldwide.
Although the Islamic Republic of Iran produces more than 90 % of the world’s saffron, it only accounts for 40 % of global exports. This is due to the influence of prestigious re-exporters such as Spain, France and Italy, which add value to Iranian bulk imports and then resell the saffron at a higher price. Countries such as Spain, Italy and France all produce saffron ; however, their domestic production is marginal compared with the quantities that they export.
While Afghan saffron is a new entrant in the global mar-ket, Afghanistan became one of the largest exporters of saf-fron in 2016. Based on its remarkable growth rate of 36 % annually between 2012 and 2016, Afghanistan could be a serious competitor against other major exporters with much lower growth rates. A new entrant and fast-growing exporter of saffron is Hong Kong ( China ), which marked an exported value of US $ 5.2 million in 2016 and export growth of 123 % between 2012 and 2016.
Figure 2 : World consumption trends, 2007–2016
6,000
5,000
4,000
3,000
2,000
1,000
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350,000
300,000
250,000
200,000
150,000
100,000
50,000
-
World Consumption Trends
World Consumption (USD Millions) Quantity (Tons)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Source : ITC Trade Map.
Photo: By Safa Daneshvar (Own work) [CC BY-SA 3.0 (https-_creativecommons.org_licenses_by-sa_3.0)], via Wikimedia Commons.
6
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / SAFFRON SECTOR 2018-2022 ]
Figure 3 : World’s top exporters of saffron ( 2016 )
100,000
80,000
60,000
40,000
20,000
0
120
100
80
60
40
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-20
Iran, Islamic Republic of
FranceCountries
List of exporters for the selected product in 2016Product: 091020 Saffron
Expo
rted
val
ue, U
SD th
ousa
nd Annual growth in value, %
Afghanistan Netherlands China
Spain Portugal Hong Kong, China Greece Germany
Exported value, USD thousand Annual growth in value, %
Source : ITC Trade Map.
Islamic Republic of Iran : Approximately 90 % of the world’s saffron is produced in the Islamic Republic of Iran2 and there is a high correlation between the volume of Iranian saffron exports and the overall increase in saffron exports in the world. Although currency fluctuations in recent years have affected the dollar value of overall exports, the Islamic Republic of Iran remains the global leader in terms of both volume and exported value of saffron. Most Iranian saffron is exported in bulk and then packaged, marketed and dis-tributed through established trade networks of re-exporters. Few of the 120 Iranian saffron processing and packaging enterprises are exporters, as most limit their focus to sup-plying the domestic market. The majority of Iranian export-ing companies use very basic packaging, which requires repackaging afterwards by re-exporters according to the final export destination.
Growth drivers Growth inhibitors
• Capable and experienced sector in terms of production capabilities
• Large domestic market• Joint venture initiatives with
Spanish / Italian firms
• Limited proficiency in packaging, branding and distribution of non-bulk forms
• Underdeveloped market links have led to value loss through re-exports of Iranian saffron from other markets
• Certain quality and sanitary and phytosanitary ( SPS ) issues persist
• Political tensions affecting trade relationships
2.– Ibid., p. 1.
Spain : Spain is currently positioned as the second-largest global exporter of saffron, with a total recorded value of saf-fron exports reaching US $ 66 million in 2016. Global trade statistics do not distinguish between domestically produced exports and re-exports, and Spain’s position as the second-largest saffron exporter is undoubtedly tied to its position as the world’s largest importer of saffron. Over half of all Iranian saffron exports ( 56 % ) made their way to Spain in 2016. Imported saffron is not only consumed domestically but is also further processed, re-packaged and re-exported with high-end branding and quality assurances.
Growth drivers Growth inhibitors
• Highly proficient in repackaging and re-exporting
• Sophisticated grading and quality standards have led to a strong brand
• Developed trade channels
• Gradually declining production owing to rises in the cost of production structure ( wages )
India : After the Islamic Republic of Iran, India ranks as the second-largest producer of saffron, with the spice cultivat-ed primarily in the Kashmir region. As a saffron exporter, though, India’s performance is less commanding ; it is only ranked twelfth among global saffron exporters. With a spice-loving population that tops 1 billion, India’s impressive pro-duction levels are still insufficient to meet domestic demand. To satisfy this demand, US $ 14.9 million in saffron was im-ported to India in 2016, making it the world’s fourth-largest importer. This indicates that India predominantly imports for consumption and not for re-exporting, unlike other major saffron exporters.
[ RED GOLD : DISSECTING SAFFRON’S CONTINUED DOMINANCE IN THE GLOBAL SPICES SECTOR ]
7
Growth drivers Growth inhibitors
• Large domestic market• Investment and institutional capacities• Private sector interest
• Increasing domestic demand limits exports, as production is largely consumed domestically
Italy : Italy is the second-largest European exporter of saf-fron after Spain. Like Spain, it has a rich heritage of saffron production that continues to the present day, driven by high demand for the spice in Italian kitchens. Also like Spain, Italy has recognized the profit-generating opportunities in re-exporting saffron. It is the second-largest importer after Spain, with an unknown ( though likely substantial ) portion of that import volume undergoing value added processing and rebranding, followed by re-export.
Growth drivers Growth inhibitors
• Investment and institutional capacities• Developed trade channels
• Production is progressively decreasing
Greece : Another key player in the European saffron trade is Greece. For several years Greece’s saffron exports were damaged by an economic crisis and poor yields but it has since reversed these negative trends. Greece is now the world’s third-largest producer of saffron and eighth-largest exporter, with significant export growth recorded over the last five years.
Growth drivers Growth inhibitors
• Recultivation efforts point to a resurgence of the sector in the near future • Slow recovery of production
European re-exporters : Portugal, the Netherlands, Germany, Switzerland, Austria and the United Kingdom of Great Britain and Northern Ireland are not saffron producers but this has not prevented them from operating as major re-exporters and end users. Anecdotal evidence suggests that approximately 95 % of the saffron branded and exported by European countries is supplied by the Islamic Republic of Iran.3
KEY GLOBAL TRENDS
Global demand is increasing
Global imports of saffron grew 7 % annually between 2012 and 2016, indicating that the industry has long-term sustain-able growth potential. Most of the current leading importers in Europe appear enthusiastic about importing ever-greater quantities of saffron for the demonstrated profits generated from re-exports. Turkey, the United Arab Emirates ( UAE ) and Hong Kong ( China ) have also recognized the profit potential of saffron processing and re-export and are increasing their import volumes accordingly.
In South Asia, strong growth in saffron demand is com-ing from the fourth-largest saffron importer, India. India’s explosive economic growth has made saffron accessible for an ever-increasing number of middle- and high-income households. The result has been a 23 % annual increase in demand during the past five years.
3.– Ibid., p. 3.
Figure 4 : World’s top importers of saffron, 2016
60.000
40.000
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0
20
20
15
10
5
0
-5
Countries
List of importers for the selected product in 2016. Product: 091020 Saffron
Impo
rted
val
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ousa
nd Annual growth in value, %
Spain United Statesof America
Italy India
Imported value, USD thousand Annual growth in value, %
Hong Kong,China
ArgentinaFranceSweden Saudi Arabia United Kingdom
Source : ITC Trade Map.
8
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / SAFFRON SECTOR 2018-2022 ]
Other fast-growing economies such as Argentina, Saudi Arabia, Kuwait and China have contributed to the increased worldwide demand for saffron. Fast-paced growth in the global south has meant more saffron in more kitchens in more countries, with the trend likely to continue. With high levels of demand assured for years to come, future increas-es in Afghan saffron production will be quickly absorbed by the global market.
Branding and distribution channels strongly controlled by Italy and Spain, while the regional market is controlled by the Islamic Republic of Iran
The main value of the world’s saffron harvest is captured by re-exporters such as Spain, France and Italy, which have sophisticated, well-established packaging methods and dis-tribution channels. The latter applies as well to the Islamic Republic of Iran, which maintains well-established trade net-works. For emerging producer nations such as Afghanistan, it remains a challenge finding a niche in the market inde-pendent of the existing distribution channels controlled by re-exporters.
Re-expor ts are increasing based on growing worldwide demand for high-quality saffronThe UAE is a significant re-exporter of imported saffron, along with Spain, Turkey, Portugal, the United States of America, the Netherlands, Germany, Switzerland, Austria and the United Kingdom, among others. Some of these countries do not produce saffron at all ( as is the case with the UAE ), while others such as Spain are producers, con-sumers and re-exporters. The level of profitability in saffron re-exports is a function of strategic geographic location, so-phistication of packaging methods, creative branding and strong market links.
High per capita retail prices are expected to remain stable in the long termWorld saffron prices at wholesale and retail level range from US $ 1,100 to US $ 11,000 per kilo, depending on the quality of the saffron and the sales market.4 Kilo for kilo, it is the most expensive spice in the world, a status that has led in-dustry insiders to refer to saffron as ‘red gold’. Price trends are gravitating upward, a phenomenon that has motivated exporters to increase the volume of exports in recent years.
4.– Afghanistan Public Policy Research Organization ( 2011 ). Gender and the Agricultural Innovation System in Rural Afghanistan : Barriers and Bridges. Available from : https ://reliefweb.int/sites/reliefweb.int/files/resources/Full %20Report_46.pdf.
Box 2 : What explains the high price of saffron in global markets?
Saffron is a highly labour-intensive crop, especially during the harvesting stage of the value chain. Industry research has not yet identified a reliable way to remove the thread-like stigmas from the saffron flower using automation. As a result, among both de-veloped and developing producer nations, the harvesting process is undertaken by hand. As labour costs in Europe have risen, production has been increasingly pushed to developing countries.
Another reason for the high price point of saffron is that global demand for saffron has been increasing at a greater pace than supply. Even increased saffron yields per acre – achieved through
improved growing and harvesting methods – have not been suf-ficient to meet this rising demand. Part of the reason for rising demand is an increase in the use of saffron in niche segments, including pharmaceuticals and cosmetics. Marketing and busi-ness development activities of lead firms in the sector have also contributed to growing awareness of the uses and benefits of saffron, thereby attracting new consumers. Finally, higher incomes in China, India and other sizeable, fast-growing economies have resulted in more households that can afford to use saffron on a regular basis.
[ STIGMAS FOR PROSPERITY : PLANNING A ROBUST FUTURE FOR AFGHAN SAFFRON ]
9
STIGMAS FOR PROSPERITY : PLANNING A ROBUST FUTURE FOR
AFGHAN SAFFRON
A CURRENT VALUE CHAIN WITH HIGH POTENTIAL FOR GROWTH AND SCALABILITY
PRODUCTION OF SAFFRON
Saffron production starts with field preparations; one heavy tilling is required to prepare each plot for planting. Following the tilling, saffron farmers will use between 20 and 100 tons of fertilizer per hectare to prime the fields. Typically, this step is performed in autumn or winter in anticipation of planting the following year. The time window for planting saffron corms starts at the first half of June and lasts until late summer. A rough guideline for planting is 50 corms per square metre.
The irrigation phase lasts from beginning of October to May, when the provision of water spurs the growth of the saffron plants and directly impacts the volume of flower blossoming. Notably, during winter, the rain and snow water can be used for irrigation. Harvesting begins roughly 10 to 25 days after initial irrigation, taking place from October to November. Weeding is particularly important after the har-vesting stage and is a labour-intensive task.
The harvesting period is the most labour-intensive step in saffron production, as saffron flowers have a 48-hour lifes-pan. Ideally, field workers will begin picking flowers early in the morning, as soon as the flowers blossom. The substan-tial cost of labour during harvesting is a major contributing factor to saffron’s high global prices : 150,000–170,000 flow-ers are required to produce a single kilogram of saffron.
The main production inputs include : � Corms ( also commonly referred to as ‘bulbs’ or ‘saffron
onions’ ) : a one-jerib ( 0.2 hectare ) plot will require 500 kg to 800 kg of corms, costing between US $ 3 and US $ 4 per kg.5
5.– Afghanistan Public Policy Research Organization ( 2010 ). Value Chain Governance and Gender : Saffron Production in Afghanistan. Available from http ://appro.org.af/wp-content/uploads/2017/03/131206754-Value-Chain-Governance-and-Gender-Saffron-Production-in-Afghanistan.pdf.
� Water : minimal amount required, during the irrigation phase only.
� Plots : optimal soil for saffron cultivation is sandy loam rich in calcium, with high organic content.
� Ammonia fertilizers : quality of fertilizer directly impacts yields.
� Nitrate fertilizers : preferably organic. � Other fertilizers : traditionally animal manure. � Drying equipment : used to dry stigmas after separation
from flowers. � Packaging material : necessary for transportation and
marketing, preferably airtight.
High-quality corms are often imported from neighbouring countries, as domestic supply varies in quality due to lack of input control, although this situation seems to be improving thanks to increase availability of domestic corm in the coun-try. Saffron farmers are especially attentive to corm size, as it is a significant indicator of future productivity. Farmers also prefer imported ammonia fertilizers rather than domes-tic brands due to similar concerns about quality. Electrical drying equipment needed during the postharvest, process-ing phase is available but scarce in some regions because most of these machines are imported. Packaging materials are also largely imported.
SAFFRON PROCESSING
While harvesting is ongoing, the harvested saffron flowers are stored for a short period in cool, shaded storage areas. The flowers are stacked no deeper than10cm, to prevent crushing of the flowers and damage to the valuable stigmas.
The flowers are then transported to processing facili-ties where the stigma is carefully separated from the flow-er. After separation, stigmas are dried through air-drying ( the traditional method ) or by using electronic driers and
10
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / SAFFRON SECTOR 2018-2022 ]
dehydrators. Air-drying can take up to a week to complete, and as a result machine-assisted drying – with processing times measured in minutes, rather than days – has become the preferred method.
The final step of the process is sorting, in which the dried stigmas are graded based on colour, odour, length and shape. Samples of fully processed saffron are sent to labo-ratories for quality testing. Only saffron passing a certain quality standard is designated for branding and marketing. As domestic and international end users are sensitive to taste and quality, quality testing laboratories are crucial for the future success of Afghan saffron.
DISTRIBUTION
Domestic market
In 2008, there were approximately 15 traders6 who distrib-uted Afghan saffron to domestic consumers and retailers. In 2017, there were approximately 43 companies7, while it is estimated that there were more than 30 traders of saf-fron, Domestically, Afghan traders and consumers have adopted the grading terminology of their Iranian neighbours. The grade of sargol, which literally translates from Persian to ‘head of the flower’, denotes the best quality. Saffron has a cherished place in Afghan homes, where it is used as a tea
6.– USAID ( 2010 ). Afghanistan Agricultural Finance Market Research. Washington, D.C., p. 123.7.– Ghafoory, Besmellah and Yuksei, Isahn ( 2017 ). Competitive Strategy in Afghanistan’s Saffron Sector, Proceedings of 9th European Business Research Conference 7 - 8 September 2017, Hotel Intercontinental, Madrid, Spain ISBN : 978-1-925488-43-2. Available from : https ://wbiworldconpro.com/uploads/madrid-spain-conference-september-2017/economics/1504157616.pdf
for special occasions as well as a spice in the culinary arts. It retails at about US $ 1,500 per kilogram.8 Due to the high price, though, most demand comes from high-end restau-rants and hotels.
International market
Exporters usually demand samples from processors for quality checking with foreign buyers. They store and sort the goods for the international market and sometimes even retest Afghan saffron to make sure that the product meets international quality standards. In 2016, Afghanistan export-ed US $ 17 million of saffron to international markets. Major destinations were India ( US $ 14 million ), France ( US $ 1.2 million ), Saudi Arabia ( US $ 1.2 million ), the United States of American ( US $ 238,000 ) and Bahrain ( US $ 110,000 ).9 Notably, informal trade of Afghan saffron reaches the Iranian market, where it is labelled as Iranian, and thus a large amount of Afghan exports of this product goes unreported.
In the last several years, Afghan saffron has attracted more and more attention in the European high-end market, based on its unique taste and high quality. This trend indi-cates remarkable future export opportunities for Afghan saf-fron, as long as the reputation of the Afghan saffron brand can be protected through the implementation of quality con-trol measures. As Afghan saffron has managed to make its way to different markets, different dynamics and requirements must be taken into account by exporters. More efforts to strengthen market development and penetration are required.
8.– Afghanistan, Ministry of Counter Narcotics ( 2015 ). Afghanistan Drug Price Monitoring Monthly Report, September. Ministry of Counter Narcotics, Islamic Republic of Afghanistan and United Nations Office on Drugs and Crime. Kabul. Available from http ://mcn.gov.af/Content/files/Afghanistan %20Price %20Monitoring %20September %20 %202015.pdf.9.– Based on Comtrade mirror data
Photo: (CC BY-NC-ND 2.0) World Bank Photo Collection @flickr.
[ STIGMAS FOR PROSPERITY : PLANNING A ROBUST FUTURE FOR AFGHAN SAFFRON ]
11
Figure 5 : Current value chain
Corm
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le
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12
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / SAFFRON SECTOR 2018-2022 ]
A SECTOR HARBOURING MULTIPLE COMPARATIVE ADVANTAGES FOR AFGHANISTAN
Figure 6 reveals the key comparative advantages of saf-fron production in Afghanistan. Saffron benefits from stable high prices ; growing demand in international markets ; high resistance to extreme temperatures, diseases and irregular supply of inputs ; and is relatively easy to handle and trans-port. Saffron’s high value-to-weight ratio is especially ap-pealing for Afghan traders, as it opens up air transport as a viable, cost-effective shipping option.
In terms of social benefits, saffron production is highly la-bour-intensive, with women capturing a high share of labour-related income. Even in culturally conservative Afghanistan, there is the perception that the detail-oriented work involved in saffron crop maintenance and harvesting / processing is especially suitable for female workers. Additionally, saffron is
harvested in autumn, after the harvesting period of other lo-cal crops. The result is high availability of seasonal workers who are able to boost their annual income during a period where they may otherwise be idle.
Another social benefit is saffron’s ability to compete with opium in terms of income generation. In a country where the crime of opium production is rarely prosecuted, a farmer must have economic incentives to pivot away from this il-licit narcotic. The proven profit-generating ability of saffron cultivation provides this incentive.
On the market side, Afghan saffron is highly regarded among international spice connoisseurs and has consist-ently received high rankings when compared with the saf-fron of other world producers.
Figure 6 : Afghan saffron : enabling and dissuading factors
Enabling factors
Resistant to extreme
temperatures and erratic supply of inputs such as
water
+
Stable and high prices in international
markets
Relatively easy transportation and handling requirements
Afghan saffron is highly
regarded in international
markets
High potential for providing employment for women
Labour- intensive, with ample available labour. Simple
equipment requirements
Promising substitute for
opium cultivation
Dissuading factors
High gestation time (up to seven years)
between planting and harvesting, and high
costs for good quality corms - leading to high sunk costs
Established competitor
landscape, including neighbouring Islamic
Republic of Iran
Seasonal employment for
women handpickers
Farmers have typically not been able to penerate
international markets, so limited incentive to
develop
High fragmentation of cultivated land and ad hoc links from farm
gate to market
-
With European saffron-producing countries like Spain, Greece and Italy experiencing difficulty finding cost-effec-tive labour options, Afghanistan may be able to fill the gap created by their declining output. Afghanistan has a strong surplus of readily available labour, especially when it comes to capable female workers.
With all factors taken into consideration, the business case for growing saffron in Afghanistan is strong. The Ministry of Agriculture estimates that the Afghan saffron industry could reach a value between US $ 200 million and US $ 300 million. However, a number of recent developments point to favour-able growth prospects :
[ STIGMAS FOR PROSPERITY : PLANNING A ROBUST FUTURE FOR AFGHAN SAFFRON ]
13
� Saffron production has reached 31 provinces10 ( out of 34 total ), from just one province a decade ago.
� For the third year in a row, the International Taste and Quality Institute in Brussels, Belgium, certified Afghan saffron as one of the world’s best.11
� The area under saffron cultivation has increased to more than 5,200 hectares in 2017, exhibiting a steady rise over the last several years.12
� MAIL is currently planning the deployment of a large-scale training programme aimed at saffron farmers.
10.– MAIL.11.– International Taste and Quality Institute ( 2013 ). Afghan saffron company ranked 1st by International Taste and Quality Institute, 22 June. Available from www.itqi.com/en/about-itqi/press-archives/afghan-saffron-company-superior-taste-award-2013/.12.– Ministry of Agriculture.
HIGH INITIAL COSTS AND LONG PROFIT GESTATION ARE BARRIERS TO ENTRY FOR PROSPECTIVE SAFFRON FARMERS
At present, engaging in saffron cultivation in Afghanistan is restricted as a result of the high capital requirements. At the initial stage, farmers must have sufficient capital avail-able to purchase enough saffron corms to populate a plot. With demand for corms high ( and increasing every year ), this can require a sizeable investment. Once the corms are purchased and planted, a saffron farmer must have enough savings, financial backing or other sources of income to wait nearly two years for the saffron plants to blossom in suffi-cient quantities to harvest. Maximum output is only achieved after several years tending to the same plot of saffron plants. The first harvest season will generate zero revenue for the saffron farmer. New research results shows that using new appropriate technics, it is possible to increase saffron pro-duction up to 30 – 40 kilos per hectare during a period of 4 years (6 to 8 kilos/year).
Once a farmer has secured the initial capital to begin saffron cultivation, operating costs are minimal. Although saffron production is labour-intensive, it is also highly sea-sonal and requires minimal investment in machinery. Most activities tending the plants can be carried out manually, with a high degree of attention necessary only during the first year after planting. The typical life cycle of a saffron plant is seven years in total.
Besides labour, there are additional inputs involved in cultivation, which include fertilizer, fungicide and water. Fortunately, saffron has a low water requirement, an espe-cially critical factor for Afghanistan where irrigated land is scarce. Estimated annual costs for these items are US $ 90 per jerib ( US $ 450 per hectare ).
While saffron is a highly profitable crop in the long term, significant returns are only obtained in the medium term. Profitability is generally achieved only after the third year of production, as output from production increases. Maximum yields are achieved between the third and fifth year of production.
In Afghanistan, where personal savings are minimal and access to finance is scarce, the capital requirements for saf-fron production are a significant barrier to entry. To date, this has limited saffron production to male landholders who have already accrued some degree of wealth or who are able to access the wealth of immediate family members.
Photo: ITC
Photo: ITC
14
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / SAFFRON SECTOR 2018-2022 ]
Box 3 : Saffron versus opium poppy cultivation
Saffron production is not new to Afghanistan, as there are histori-cal testimonies indicating the country cultivated it at least 2,000 years ago, particularly in Herat Province. However, it is only 30 years ago that saffron started being grown in the country for trial purposes. In the early 1990s, saffron production was mainly undertaken by returnees from the Islamic Republic of Iran who re-entered Afghanistan bringing saffron corms and work experience in Iranian saffron fields. In the early 2000s, saffron production started blooming as a result of the end of the civil war and the ef-forts of both Government and development partners, who observed
good results and high returns in trials. Notably, saffron cultivation is being encouraged through corm distribution, giving rise to the idea that it can be an economically viable alternative to poppy production and a more effective policy than burning poppy fields.
As is explained in subsequent sections, several factors account for the narrow scalability of saffron production vis-à-vis poppy cultivation. One of the main reasons is that for saffron income to be relatively higher than opium income, farmers must wait until the third year of cultivation.
A HIGHLY SEASONAL AND LABOUR-INTENSIVE SECTOR ( ESPECIALLY FOR WOMEN )
Over the last decade, saffron cultivation has steadily spread across Afghanistan. In Herat Province, Afghanistan’s saf-fron production hub, it is estimated that more than 11,000 farmers are involved in cultivating roughly 5,200 hectares of saffron plots.13
Aside from the year-round work of farmers tending to their saffron plots, the harvesting of the saffron flowers be-tween October and November each year requires an enor-mous mobilization of labour. The saffron flowers must be picked within their 48-hour lifespan to prevent damage to the valuable stigmas contained within, and should ideally be picked within hours of blooming at sunrise. The flowers
13.– Ministry of Agriculture
must then be taken to a processing facility where the three thread-like stigmas in each flower are delicately removed. The work is not finished until the stigmas are sorted and packaged, preferably in airtight containers. In aggregate, harvesting and processing each saffron plot requires 20-30 days of intensive labour.
One kilogram of saffron – roughly 450,000 stigmas – de-mands approximately 40 hours of labour. Estimates indicate workers pick on average 10 kg of saffron flowers per day, while earning roughly AFN 25 ( US $ 0.38 ) per kg. or US $ 4 to US $ 6 per day. Importantly, the timing of the saffron harvest does not create any opportunity costs for seasonal workers. As saffron is the final harvest before winter sets in, labour-ers who commit themselves to it would likely have few other income-generating opportunities at that time of year.
Box 4 : The role of Afghan women in saffron production
Afghan women play a critical role in the saffron value chain, par-ticularly in the harvesting and processing stages of production. It is estimated that 80 % of activities in the production of Afghan saffron are undertaken by women. In part, the heavy involvement of women in the saffron harvest is explained by the low wages that female workers are willing to accept. While the wages may be low, the enticement of cash payments is enough to mobilize the female populations of saffron-producing communities. For these women, it may be their last opportunity to contribute to household income before the unforgiving Afghan winter sets in.
To date, Afghan women’s role in saffron production has been largely limited to the manual labour required for harvesting and postharvest processing. There are promising signs, though, that these gender barriers in the saffron sector are gradually breaking down. Women’s saffron producer associations exist today, a fact that would have seemed inconceivable in the not-so-distant past. These associations have provided spaces for women to share experiences and know-how, and will hopefully contribute to more women serving in more prominent roles in the Afghan saffron value chain.
[ STIGMAS FOR PROSPERITY : PLANNING A ROBUST FUTURE FOR AFGHAN SAFFRON ]
15
PROMISING EXPORT PERFORMANCE OF AFGHAN SAFFRON
Prior to 2001, Afghan production of saffron was minimal, with export figures at or close to zero. While the condition of the saffron sector in 2001 may have appeared dismal, the foundation for future success was already in place. Afghan refugees with experience in the Iranian saffron sector had re-turned to Herat Province in the early 1990s and had started cultivating their own distinctive brand of saffron. By the late 1990s, this nascent community of saffron farmers was re-ceiving various forms of support from international develop-ment agencies that recognized the sector’s potential.
The export of Afghan saffron to Europe and North America – impossible under the Taliban – became a reality in the mid-2000s as production levels grew. After the first shipments of Afghan saffron reached Western markets, the reputation of Afghan saffron steadily grew as a result of its unique flavour. Since then, the exported value of Afghan saf-fron has kept growing and reached US $ 17 million in 2016. This resulted from steep export growth of 36 % annually in the last five years.14 The growth was supported by export diversification and access to new markets in Europe, the Middle East and Asia.
14.– Based on Comtrade mirror data.
Afghanistan’s export basket was valued at US $ 421 million in 2016.15 Among traditional export products such as dried and fresh fruits and vegetables, saffron ranked fifth in the export basket with an exported share of 5 % in 2016. Looking at the export basket’s composition in 2008, saffron did not appear as one of Afghanistan’s most exported products. The comparison between the two years again highlights the strong growth of Afghan saffron exports in a short period.
When Afghan saffron exports started to grow rapidly, the majority of the product reached Italy in 2012. Other first receivers of Afghan saffron were the United Arab Emirates, Germany and the United States in the same year. Within only five years, India became the greatest importer of Afghan saffron, followed by European countries and Saudi Arabia in 2016. The exported value also jumped from US $ 4.6 million in 2012 to US $ 17 million in 201616. This shows the high abil-ity and potential of Afghan saffron to quickly penetrate and establish reputation in new export destinations based on its premium quality and unique taste. Notably, Italian imports of Afghan saffron show a remarkable decrease, owing to issues related to SPS, and the quality and traceability of Afghan production.
15.– Based on Comtrade mirror data.16.– Based on Comtrade mirror data
Figure 7 : Exported value of Afghan saffron, 2005–2016 ( US $ thousands )
18.000
16.000
14.000
12.000
10.000
8.000
6.000
2.000
-2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Source : ITC Trade Map. Based on Comtrade mirror data
16
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / SAFFRON SECTOR 2018-2022 ]
Figure 8 : Top 10 export destinations of Afghan saffron, 2012 ( US $ thousands )
Figure 9 : Top 10 export destinations of Afghan saffron, 2016 ( US $ thousands )
4.5004.0003.5003.0002.5002.0001.5001.000
500-
1. Ita
ly
2. Unit
ed Arab
Emira
tes
3. Germ
any
4. Unit
ed Stat
es o
f Ameri
ca
5. Spa
in
6. Fra
nce
7. Norw
ay
8. Can
ada
9. Swed
en
10. M
exico
Source : ITC Trade Map.
16.000
14.000
12.000
10.000
8.000
6.000
4.000
2.000
-
1. Ind
ia
6. Unit
ed Arab
Emira
tes
7. Germ
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2. Fra
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5. Bah
rain
9. Can
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8. Swed
en
10. N
etherl
ands
Source : ITC Trade Map.
Photo: ITC
[ STIGMAS FOR PROSPERITY : PLANNING A ROBUST FUTURE FOR AFGHAN SAFFRON ]
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OVERCOMING HURDLES FOR GROWTH : KEY COMPETITIVENESS CONSTRAINTS
Key issues constraining the sector’s ability to compete, connect and change
The following section analyses sector challenges across three dimensions : firm capabilities ; institutional and trade support ; and national environment, policy and regulations.
Compete : Issues limiting the sector’s capacity to compete in national and foreign markets. This includes challenges related to access to inputs, productivity, quality management, national infrastructure and compliance with standards, among others.
Connect : Issues restraining connectivity to suppliers, markets and clients. This dimension includes challenges related to market
information, marketing, 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 related to access to trained / skilled labour, intellectual property protection, institutional support to innovate, investment promo-tion and protection, corporate social responsibility, and youth and women employment, among other issues.
Compete
The competitiveness of the Afghan saffron industry is con-strained by its limited ability to achieve economies of scale. Moreover, despite Afghan saffron’s international reputation for quality, the majority of producers have not been certified by the International Organization for Standardization ( ISO ) ( ISO 3632-1 :2011 and ISO 3632-2 :2010 ). The sales pros-pects of Afghan saffron traders are further diminished by non-standard packaging, which decreases the product’s appeal in international markets.
High prices and low availability of corms limit new entrants
The rising price of corms is a critical barrier to entry for Afghan farmers interested in engaging in saffron produc-tion. The relatively small number of Afghan saffron farm-ers, in turn, prevents the sector as a whole from achieving economies of scale.
Following a period when saffron corms were imported ( and in many cases, smuggled ) almost exclusively from the Islamic Republic of Iran, the Afghan saffron sector was able to reach a stage where corms could be produced domesti-cally. The total supply of saffron corms from domestic and foreign sources ( including corms provided by international development agencies ) remains insufficient to meet de-mand among Afghan farmers. The natural consequence is high prices for saffron corms in Afghanistan, which can be as much as 30 % higher than in neighbouring Islamic Republic of Iran. The cross-border price discrepancy for this
key input places Afghan producers at a severe competitive disadvantage vis-à-vis Iranian saffron enterprises.
In Afghanistan, the cost of planting saffron corm is esti-mated to be around US $ 2,00017 per jerib ( half acre ) of land, ( cost calculated using an estimate of 500kg of corms per acre ), an expensive investment for most Afghan farmers. The high prices of saffron corms have caused some Afghan saffron farmers to focus on corm production, a development that may increase the capacity of the sector in the long term.
Value chain segment Inputs / production
Severity ● ● ● ● ○
PoA reference Activities 2.4.1 to 2.4.4
Economies of scale are difficult to achieve due to small-scale saffron production
Saffron cultivation in Afghanistan is characteristically under-taken on small plots between 1.5 and 2 jeribs18 ( 0.3 to 0.4 hectares ). Moreover, saffron cultivation is usually undertaken alongside other crops such as vegetables or fruits. The in-stinct of Afghan farmers to hedge risk is one of the main rea-sons behind the small scale of production. The expensive initial investment required for saffron production, along with
17.– Afghanistan Public Policy Research Organization ( 2010 ). Value Chain Governance and Gender : Saffron Production in Afghanistan. Available from http ://appro.org.af/wp-content/uploads/2017/03/131206754-Value-Chain-Governance-and-Gender-Saffron-Production-in-Afghanistan.pdf.18.– World Bank ( 2011 ). Understanding Gender in Agricultural Value Chains : the Cases of Grapes/Raisins, Almonds and Saffron in Afghanistan. Washington D.C.
18
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / SAFFRON SECTOR 2018-2022 ]
a long wait ( typically three years ) to reach the investment break-even point, leads farmers to diversify production with other crops.
Furthermore, the perennial nature of the saffron plant means that once a plot has been dedicated to saffron, it cannot be used to ‘rotate in’ other seasonal crops. Even when a saffron field may appear inactive, the bulbs are still lie dormant beneath the surface. The consequence is that increased saffron production can only be achieved by open-ing up more land to its cultivation, rather than by looking for more efficient crop rotation systems.
Value chain segment Production
Severity ● ● ● ○ ○
PoA reference Activities 1.2.1 to 1.2.5
Poor farming practices lead to low productivity
As saffron is still a relatively new crop in Afghanistan, ef-forts need to be made to elevate the technical expertise of saffron farmers. Particularly, training is needed to help Afghan farmers recognize optimal bulb weight and size at planting, as well as introducing adequate spacing between plants. Training in pest and disease control would also be enormously beneficial to the sector, as saffron plants are vulnerable to insects, worms and animals, as well as some fungal diseases.
Value chain segment Production
Severity ● ● ● ○ ○
PoA referenceActivities 1.1.1, 1.1.2, 2.1.4, and
2.1.5
Incentives to cultivate other crops, especially opium, are higher
Saffron cultivation has been strongly advocated by the Afghan Government and its development partners, such as the EU and the United Kingdom, as an economically viable and legal alternative to opium production.
Despite the best efforts of these entities, several factors can explain the relatively higher preference among farm-ers to cultivate other crops, particularly opium poppy. While opium provides near-term profits ( and often even credit assistance in the form of advance payments from buyers ), saffron cultivation is characterized by a longer-term period for investment return that typically spans several years ( with zero revenue in the first year ).
Another risk factor for saffron producers ( compared with opium farming ) is difficulty connecting to international buyers. While the price of saffron may be high in official reports and publications, this does not necessarily mean that Afghan saffron traders are able to access the buyers who are willing to pay premium prices for premium saffron.
The risk for saffron traders of selling their product below market prices has likely resulted in a situation where farmers are paid less than expected for their saffron yields. In addi-tion, concerns from farmers regarding the marketability of produced saffron is a hindering factor that favours the pro-duction of poppy. While saffron exporters struggle to con-nect with international buyers, opium traders directly contact farmers and they even provide them with substantial support for growing poppy, including credit assistance. Finally, Herat farmers struggle with pressures from insurgents to switch saffron production for poppy cultivation.
Value chain segment Production
Severity ● ● ● ○ ○
PoA referenceActivities 1.3.1 to 1.3.5, 2.2.1, 2.2.2,
3.4.1, 3.4.2
Weak packaging capacity reduces the market price and limits market-entry
The limited capacity of packaging services is partly ex-plained by the lack of packaging equipment and materials available, which in turn restrains the capacity of firms to ship consignments to overseas markets and reduces the market price of the final product. Purchasing packaging equipment is a prohibitively costly investment for producers given the current small scale of production.
Weak marketing skills among producers and insufficient access to market intelligence are also factors that weaken the sales prospects of Afghan saffron traders. The limited understanding of international market regulations regard-ing proper packaging – such as the International Standards For Phytosanitary Measures 15 packaging standards – can impact the volume of imports to highly regulated markets like the EU. The unprofessional packaging of Afghan saffron also decreases its attractiveness to potential buyers in the domestic market, leaving it vulnerable to competition from imported Iranian saffron.
Value chain segment Marketing / distribution
Severity ● ● ● ● ○
PoA referenceActivities 1.2.2, 1.2.4, 3.2.1 to 3.2.4,
3.3.2, 3.3.4, 3.3.5
Weak ability to ensure the quality of saffron is a barrier to export to highly regulated markets
Providing credible assurances of the quality of Afghan saf-fron is a prerequisite to enter highly regulated markets such as the Netherlands, United States, Australia and Italy. The current shortcomings related to quality control in the Afghan saffron sector exist at both firm level and Government level.
At the enterprise level, irregular quality at the produc-tion level is explained by low awareness among producers
[ STIGMAS FOR PROSPERITY : PLANNING A ROBUST FUTURE FOR AFGHAN SAFFRON ]
19
regarding international standards and the irregular quality of saffron corms. Despite these problems, some produc-ers grow outstanding saffron. Both domestic and imported corms vary in quality. Inexperienced saffron farmers are susceptible to the allure of lower cost, lower quality corms because they lack sufficient training to grade the corms and recognize a bad sales proposition.
At the processing stage, traditional methods for drying saffron – exposure to the open air and charcoal-fuelled ov-ens – are still being used, which degrades the quality of the saffron. Long periods spent drying exposes the saffron to contaminating agents like dust and sand. The low uptake of improved methods of drying, such as electric driers and microwave ovens, is due to the limited ( and highly irregular ) access to electricity across the country. Saffron process-ing centres with laboratory conditions for drying and sort-ing could drastically improve quality but the construction of such centres has not yet attracted the interest of investors.
When it comes to the regulatory framework within Afghanistan, the Afghan Government has little to no capac-ity to effectively regulate the quality of exports. Quality cer-tificates for saffron are issued by an agency under MoCI but samples are provided by the traders themselves, with no random sampling. Anecdotal evidence suggests that many Afghan saffron traders have learned the hard way about the importance of quality control – when they find their shipments being rejected at EU border control points. Insufficient testing facilities and trained technicians available to objectively measure key saffron attributes such as colour, taste and aroma are major challenges for quality assurance.
Value chain segment All segments
Severity ● ● ● ● ●
PoA referenceActivities 1.1.1 to 1.1.3, 2.1.4, 2.1.5,
3.1.1 to 3.1.7, 3.3.4, 3.3.5
Photo: Hand processing saffron (CC BY-NC-ND 2.0) World Bank Photo Collection @flickr.
20
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / SAFFRON SECTOR 2018-2022 ]
Figure 10 : Problem tree – challenges to competeCo
mpe
te: L
ow le
vels
of p
rodu
ctio
n an
d w
eak
abili
ty to
ens
ure
qual
ity d
imin
ishe
s th
e co
mpe
titiv
enes
s of
Afg
han
saffr
on in
inte
rnat
iona
l mar
kets
Poor
un
ders
tand
ing/
low
tech
nica
l kn
owle
dge
rela
ted
to p
acka
ging
ap
proa
ches
for
inte
rnat
iona
l m
arke
ts
Inad
equa
te
prod
uctio
n an
d po
stha
rves
t pr
actic
es re
sult
in
saffr
on q
ualit
y no
t m
arke
tabl
e in
fir
st-ti
er c
ount
ries
(ent
erpr
ise-
leve
l)
Wea
k ca
paci
ty to
pr
ovid
e qu
ality
as
sura
nce
and
food
saf
ety
com
plia
nce
(inst
itutio
nal-l
evel
)
No s
tand
ard
regu
latio
nsfo
rpr
oduc
tion
/pro
cess
ing
Insu
ffici
ent
test
ing
faci
litie
s an
d tra
ined
te
chni
cian
s to
ob
ject
ivel
y m
easu
re
prod
uced
sa
ffron
’s
char
acte
ristic
s
Saffr
on
mai
nly
drie
d by
trad
ition
al
met
hods
, w
hich
ex
pose
s it
to
mor
e co
ntam
inan
ts
Prod
uctio
n of
«f
ake»
saf
fron-
La
ck o
f an
enfo
rced
sy
stem
of
barc
odes
to
prev
ent f
raud
Irreg
ular
qu
ality
at t
he
prod
uctio
n le
vel(i
nstit
u-tio
nal-l
evel
)
Low
kn
owle
dge
abou
t sor
ting
and
grad
ing
saffr
on
Lack
of
pack
agin
g eq
uipm
ent f
or
orga
nizin
g co
nsig
nmen
ts
to in
tern
atio
nal
mar
kets
Insu
ffici
ent/
inad
equa
te
exte
nsio
n se
rvic
es
supp
ort
Med
ium
-term
m
atur
atio
n pe
riod
requ
ired
for
grow
ing
saffr
on w
ith
full
prod
uctio
n re
alize
d in
the
third
yea
r
Ofte
n co
rm is
pr
ovid
ed to
fa
rmer
s by
or
g., w
ithou
t pr
oper
trai
ning
Agg
rava
ted
by d
iffic
ult
leas
e of
land
, pa
rtic
ular
ly
for w
omen
Diffi
cult
acce
ss to
lo
ans
Stro
ng d
eman
d ha
s pu
shed
an
artif
icia
l in
crea
se in
co
rm p
rices
Saffr
on-
spec
ific
finan
cial
se
rvic
es –
co
mpl
iant
with
Is
lam
ic
belie
fs- a
re
need
ed
Lim
ited
liter
acy
leve
ls
amon
g pr
oduc
er
grou
ps,
Need
for
adap
tatio
n of
tra
inin
g m
ater
ials
for
farm
ers
Smal
l plo
t ar
eas
mak
es
inve
stm
ent i
n ite
ms
like
capa
city
-bui
l-di
ng d
iffic
ult
Wea
k or
gani
zatio
n am
ong
prod
ucer
s
Dom
estic
su
pply
of
corm
var
ies
in
qual
ity
Insu
ffici
ent
train
ing
of
farm
ers
to
enab
le th
em
to id
entif
y go
od q
ualit
y co
rms
Lac
k of
spe
cific
re
quire
men
ts fo
r im
port
ing
plan
t m
ater
ials
and
re
lianc
e on
ce
rtifi
cate
s pr
ovid
ed b
y co
untry
of o
rigin
Hig
h co
st o
f in
dust
rial
pack
agin
g m
achi
nes
to
prod
uce
pack
agin
g de
man
ded
by
Wes
tern
m
arke
ts
Pro
duct
ion
is
too
smal
l for
lo
caliz
ed
inve
stm
ent i
n pa
ckag
ing
Irre
gula
r qu
ality
of
corm
s
Low
aw
aren
ess
amon
g pr
oduc
ers
rega
rdin
g in
tern
atio
nal
stan
dard
s
Low
upt
ake
of
upgr
aded
te
chno
logi
es
Low
le
vel/d
isse
mi-
natio
n of
kn
owle
dge
on
tech
nica
l is
sues
rela
ted
to p
rope
r dr
ying
of
stig
mas
Cost
s re
late
d to
initi
al
purc
hasi
ng o
f bu
lbs
are
high
fo
r far
mer
s
High
cos
ts o
f im
port
ing
corm
s an
d bu
lbs
Curr
ent c
orm
ba
nks
cann
ot
mee
t fa
rmer
s’
dem
and
Land
issu
es(s
affro
n pr
oduc
tion
does
no
t allo
w th
e us
e of
land
for
othe
r cro
ps)
High
cos
t/lo
w q
ualit
y pa
ckag
ing
Lack
of
capi
tal t
o bu
y sa
ffron
ha
rves
t fro
m
farm
ers
Rela
tivel
y hi
gher
cos
t of
a
saffr
on
bulb
vi
s-a-
vis
an o
pium
po
ppy
seed
Retu
rns
on
opiu
m p
oppy
ar
e m
ore
imm
edia
te
than
for
saffr
on
Insu
rgen
ts
are
pres
surin
g He
rat
farm
ers
to
switc
h to
gr
owin
g po
ppy
inst
ead
of
saffr
on
Insu
ffici
ent
capa
city
-bui
l-di
ng p
rovi
ded
to p
rodu
cers
on
bes
t far
min
g m
anag
emen
t pr
actic
es
High
pric
es a
nd lo
w
avai
labi
lity
of c
orm
lim
it ne
w e
ntra
nts
Smal
l plo
t are
as o
f pr
oduc
tion,
lack
of
spec
ializ
atio
n in
saf
fron
Poor
farm
ing
man
agem
ent p
ract
ices
le
ad to
low
er
prod
uctiv
ity
Ince
ntiv
es to
cul
tivat
e ot
her
crop
s, e
.g. o
pium
pop
py, a
re
high
er
Wea
k pa
ckag
ing
capa
city
re
duce
s th
e m
arke
t pric
e an
d lim
its m
arke
t ent
ry
Wea
k ca
pabi
lity
to e
nsur
e qu
ality
of s
affro
n pr
even
ts e
ntra
nce
to in
tere
sted
mar
kets
suc
h as
Ne
ther
land
s, U
nite
d St
ates
, Aus
tralia
, Fra
nce,
Sp
ain
and
Italy
[ STIGMAS FOR PROSPERITY : PLANNING A ROBUST FUTURE FOR AFGHAN SAFFRON ]
21
Connect
Afghan saffron, despite outstanding performances at promi-nent spice tasting events, continues to have low visibility in international markets. Explanatory factors include the weak ability of enterprises to connect with foreign buyers, and as yet unsuccessful efforts to build an Afghan brand for saffron in overseas markets. In addition, value chain actors are not adequately connecting with each other.
Afghan companies struggle to create business connections with international buyers
Afghan saffron enterprises lack the skills and knowledge to market their products abroad. Limited market intelligence support hinders the ability of Afghan saffron traders to iden-tify export opportunities.
Apart from weak formal export support provided by public and private sector institutions, existing producer associations are also failing to provide expected market connections and market intelligence to members. Most in-formation is provided by individual firms and may or not be vetted and accurate. Further dissemination of information on market dynamics, pricing structures and marketing meth-ods is required. More efforts are also needed to publicize the benefits and tariff preferences accorded by bilateral and preferential trade agreements, such as the EU’s Generalized Scheme of Preferences. These special preferences afforded to Afghanistan should ( in theory ) give Afghan saffron traders a price advantage vis-à-vis their competitors.
Finally, Afghan saffron companies have low participa-tion rates in relevant trade fairs such as Gulfood Dubai. To overcome all of these weaknesses, Afghan saffron traders require tailored services to help them identify and connect with business partners in target international markets.
Value chain segment Marketing / distribution
Severity ● ● ● ● ●
PoA reference Activities 3.3.1 to 3.3.6
Underdeveloped marketing of Afghan saffron in interna-tional markets
One of the primary reasons that Afghan saffron enterprises continue to struggle attracting recognition in international markets is that a portion of Afghanistan’s saffron is marketed abroad as an Iranian product. Commonly, Iranian merchants smuggle saffron corms to farmers in Afghanistan for saffron production. After the valuable saffron stigmas are harvested, they are sent to the Islamic Republic of Iran to be further pro-cessed and packaged. The saffron is labelled as an Iranian product and then exported to Europe and other markets.
It should also be noted that many Afghan saffron trad-ers also complain of the opposite scenario plaguing the sector ; lower-quality Iranian saffron being smuggled into Afghanistan, mixed with Afghan saffron, and then sold under the label of Afghan saffron. Both types of adulteration, by both Afghan and Iranian saffron traders, weaken the position of the Afghan saffron sector as a whole. Corruption and inef-ficiencies at the Afghan / Iranian border allow for seemingly effortless smuggling of saffron between the two countries.
Value chain segment Marketing / distribution
Severity ● ● ● ● ○
PoA referenceActivities 1.2.2, 1.2.4, 3.2.1 to 3.2.4,
3.3.2, 3.3.4, 3.3.5
Weak organization among producers and limited services provided by associations
Weak organization among saffron producers not only limits the potential to achieve economies of scale but also hinders farmers’ ability to receive technical support. The registration procedures to form associations are perceived as highly bureaucratic and discretionary, given that processes often require personal connections and networks, which favours elites within villages. Existing associations have a narrow fo-cus in terms of services provided to members because they concentrate their efforts on supply-side production issues, while provision of services to support post-production and international marketing has been limited ( or non-existent ).
Value chain segment All segments
Severity ● ● ● ● ○
PoA reference Activities 2.2.1 to 2.2.3
Limited coordination between value chain stakeholders
Weak coordination and information-sharing by value chain actors hinders the development of the saffron industry in Afghanistan. Although a National Saffron Coordination and Support Committee exists, increased dialogue and coop-eration between public and private sector staleholders is needed at both national and provincial levels. Currently, there are insufficient efforts to coordinate systematic infor-mation-sharing meetings between relevant stakeholders. The Committee, as well, lacks empowerment to advocate for the definition and subsequent execution of its legal status within the system.
Value chain segment All segments
Severity ● ● ● ● ○
PoA reference Activities 2.1.1 to 2.1.5
22
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / SAFFRON SECTOR 2018-2022 ]
Figure 11 : Problem tree – challenges to connect
Conn
ect:
Afgh
an s
affr
on is
unr
ecog
nize
d an
d un
bran
ded
in th
e in
tern
atio
nal m
arke
t
Lack
of a
priv
ate-
publ
ic s
ecto
r m
echa
nism
for
coor
dina
tion
and
info
rmat
ion-
shar
ing
at th
e pr
ovin
cial
and
na
tiona
l lev
els
Proc
edur
esto
form
as
soci
atio
ns
ofte
n re
quire
pe
rson
al
conn
ectio
ns
(favo
urin
g el
ites
with
in v
illage
s)
Proc
edur
esto
form
asso
ciat
ions
are
high
ly
bure
aucr
atic
Bottl
enec
ksat
cus
tom
s pr
oced
ures
Lim
ited
acce
ss to
mar
kets
fro
m p
rodu
ctio
n ar
eas
Curr
ently
par
t of
Afgh
an s
affro
n pr
oduc
tion
is
mar
kete
d as
Iran
ian
Afgh
an c
ompa
nies
stru
ggle
to
crea
te b
usin
ess
conn
ectio
ns
with
inte
rnat
iona
l buy
ers
Wea
k or
gani
zatio
n am
ong
prod
ucer
s in
ord
er to
be
able
to re
ceiv
e te
chni
cal
supp
ort
Lim
ited
coor
dina
tion
betw
een
valu
e ch
ain
stak
ehol
ders
Few
mea
ns o
f tra
nspo
rt to
ne
arby
mar
kets
an
d po
or ro
ad
infra
stru
ctur
e
Afgh
an
prod
uct s
ent
to Ir
an/T
urke
y to
be
furt
her
proc
esse
d an
d pa
ckag
ed
Low
pa
rtic
ipat
ion
of A
fgha
n sa
ffron
co
mpa
nies
in
trade
fairs
and
ex
hibi
tions
The
few
ex
istin
g pr
oduc
er
asso
ciat
ions
do
not p
rovi
de
expe
cted
m
arke
t co
nnec
tions
to
the
mem
bers
Lack
of
awar
enes
s of
m
arke
t acc
ess
agre
emen
ts
(EU-
GSP)
Lack
of s
kills
in m
arke
ting
amon
g en
terp
rises Lim
ited
mar
ket
inte
lligen
ce
supp
ort
Lim
ited
in-m
arke
t su
ppor
t in
targ
et m
arke
ts
Insu
ffici
ent
pack
agin
g se
rvic
es
avai
labl
e in
Af
ghan
ista
n
High
leve
ls
of c
orru
ptio
n
Poor
co
ordi
natio
n w
ith c
usto
ms
in
neig
hbou
ring
coun
tries
Burd
enso
me
cust
om
proc
edur
es
[ STIGMAS FOR PROSPERITY : PLANNING A ROBUST FUTURE FOR AFGHAN SAFFRON ]
23
Change
The Afghan saffron industry exhibits a low level of adoption of modern production and processing techniques, owing to diverse factors such as low availability of skilled labour spe-cializing in saffron, basic infrastructure constraints and insuf-ficient investment in advanced saffron research. Additionally, the capacity of the sector to change is hindered by a mini-mal effort to provide support services for women throughout the value chain.
Few agricultural extension workers with specific training in saffron production
In order to advance the saffron sector, current suboptimal agronomic methods must be replaced with modern produc-tion techniques. Expertise is required in such areas as plot preparation, row spacing, timing of irrigation, and the quanti-ty and composition of fertilizer to be applied. To improve the level of support, the agricultural extension workers deployed by MAIL must be trained specifically in saffron production. At present, MAIL’s extension workers possess little in the way of actionable insights to assist saffron farmers.
Increasing the level of expertise in saffron requires the development of saffron-focused programmes at Afghanistan’s undergraduate-level agricultural education institutions. Such a measure would require the training of expert-level faculty members, as well as a curriculum that covers all components of the saffron value chain.
Value chain segment Production
Severity ● ● ● ● ○
PoA reference Activities 1.1.1, 2.3.5
Limited ability to change/upgrade existing processing methods
At present, the Afghan saffron sector is woefully underde-veloped when it comes to international best practices for handling and processing saffron. Especially relevant is the ability ( or lack thereof ) of saffron producers to ensure the hygienic handling of stigmas and protection from dust and other contaminants. Afghan saffron producers also tend to lack awareness of packaging methods that conserve the spice’s aroma and flavour, factors which increase sales prospects during off-season trade.
When it comes to drying the saffron stigmas immedi-ately after the harvest, Afghan producers continue to use traditional air-drying methods. Air-drying is not considered a saffron processing best practice, as the length of time – typi-cally around one week – increases the likelihood of contami-nation while also limiting precision in terms of achieving the optimal level of stigma dryness.
The continued practice of air-drying is likely the result of the high cost of electrical drying equipment, as well as
the high operational costs necessary to power such equip-ment. Government-supplied power in Afghanistan is erratic ( if available at all ) and running auxiliary generators is expen-sive. In a promising development, the establishment of 10 saffron processing centres was announced by the Afghan Government in early 2017.19
Value chain segment Processing
Severity ● ● ● ○ ○
PoA reference Activities 1.1.1, 1.1.2, 1.2.2 to 1.2.5
Limited access to credit that fits the needs of the sector
Considering the high initial investment required for saffron cultivation, along with the three years required to break even, saffron farmers require financial services that can ac-commodate their needs. There are currently no financing instruments available that are structured to support saffron farmers.
Value chain segment All segments
Severity ● ● ● ● ○
PoA reference Activities 1.3.1 to 1.3.5
Need for saffron-related research and dissemination of ( accessible ) information on saffron
Further research is needed to support the Afghan saffron sector, particularly in the areas of agronomic methods, pest and disease control, socioeconomic relations along the value chain, processing and packaging with the objective of improving volume, and methods to increase the quality of the finished saffron product. Moreover, existing studies undertaken by the relevant ministries, development part-ners and research institutions have not been disseminated widely enough among key stakeholders in the value chain, especially in a way that is accessible to those with limited educations.
Value chain segment All segments
Severity ● ● ● ● ○
PoA reference Activities 2.3.1 to 2.3.7, 2.4.3
Insufficient support services targeting women across the value chain
Women play an outsized role in the Afghan saffron value chain, especially during the harvesting and processing stages. In fact, women are estimated to make up as much as 80 % of the saffron sector’s workforce.
19.– MAIL announcement in March, 2017.
24
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / SAFFRON SECTOR 2018-2022 ]
Despite the extraordinary contribution of women to the Afghan saffron sector, there is limited support to elevate their capacity. At the production level, MAIL agricultural extension services focusing on women are lacking. Social norms in Afghanistan require extension services to be provided from women to women. However, a shortage of women saffron specialists is a barrier for the provision of women-tailored technical training.
In terms of institutional support for women-owned / op-erated saffron production enterprises, women’s saffron associations face challenges unknown to their male coun-terparts. Although women’s associations have been estab-lished in Herat, prospective female members require the permission of a male relative to register. In general, wom-en’s saffron associations remain weak, limiting their ability
to engage in capacity-building interventions, disseminate market information or pool financial resources to fund corm banks or community processing facilities.
Lastly, there are few women-only spaces for saffron trade in Afghanistan, owing to the social constraints that limit the mobility of women. As a consequence, Afghan women depend on local traders to inform them about saffron prices instead of directly obtaining pricing information from their own investigations. As a result, women’s negotiating power over prices is diminished.
Value chain segment All segments
Severity ● ● ● ● ○
PoA reference Activities 1.3.1 to 1.3.5, and 2.2.3
Photo: ITC
[ STIGMAS FOR PROSPERITY : PLANNING A ROBUST FUTURE FOR AFGHAN SAFFRON ]
25
Figure 12 : Problem tree – challenges to changeCh
ange
: Sec
tor c
apac
ities
to u
pgra
de m
etho
ds o
f pro
duct
ion
are
wea
k
Exte
nsio
n w
orke
rs w
ith
spec
ific
train
ing
in s
affro
n pr
oduc
tion
are
lack
ing
Lim
ited
abilit
y to
cha
nge/
upgr
a-de
exi
stin
g pr
oces
sing
met
hods
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)
Photo: (CC BY 2.0) Dr Partha Sarathi Sahana.
[ ASSESSING AFGHANISTAN’S POSITIONING VIS-À-VIS THE GLOBAL SAFFRON VALUE CHAIN ]
27
ASSESSING AFGHANISTAN’S POSITIONING VIS-À-VIS THE
GLOBAL SAFFRON VALUE CHAIN
This Strategy aims to achieve the following objectives :
• Increased saffron exports in terms of volume and value.• Gradual migration to the production of high-quality saffron
from medium/low-quality saffron.
• Increased income and socioeconomic benefits to actors across the value chain, afforded by the growth in production and exports.
• Positioning of Afghan saffron as a highly prized product with a lasting brand in international markets.
FACTORS DRIVING GROWTH FOR THE AFGHAN SAFFRON VALUE CHAIN
� In terms of characteristics, Afghan saffron inherently pos-sesses a high degree of quality on a par with or better than industry leaders Islamic Republic of Iran and Spain. Recent Government efforts to resolve the long-standing problem of good quality corms is a step in the right direc-tion. A focus on quality management – a make-or-break requirement for the international retail segment – has also started emerging fast.
� The weather, agronomic conditions and availabil-ity of labour are all well-suited for cultivating saffron in Afghanistan.
� International firms with Afghan operations, such as Rumi Spice, have started promoting Afghan saffron and spur-ring interest in the sector.
� Recent understanding among policymakers and donors of the socioeconomic importance of the sector.
� The global markets are not price-sensitive and the high demand ensures that prices stay high. The global saffron market has been growing at an average rate of 30 % per annum in recent years.
� Political risk stemming from the threat of sanctions on the Islamic Republic of Iran. Although a distant possibility, this is a high political risk for the Republic’s customers such as Spain, who may look to diversify supply chan-nels if the risk increases. Afghanistan has an opportunity
here, provided production output is stable and quality control is achieved.
� The high availability of labour ( particularly female work-ers ) during the off-peak months ensures that adequate pairs of hands are available.
� Recent developments in terms of the air corridor between Afghanistan and India bode well for export logistics.
� The saffron supply chain ( producers, traders, proces-sors, financiers ) inside the country is relatively fragment-ed. However, quality management efforts can be more effective if the supply chain is better organized inside the country.
SHORT-TERM : COMPETE ON QUALITY AND CULTIVATE RELATIONSHIPS WITH LEADING IMPORTERS, ESPECIALLY IN THE EU AND MIDDLE EAST
Afghanistan can position itself to compete on quality in the short / medium term by investing in quality manage-ment across regulatory institutions and saffron enterprises. Ensuring a stringent focus on the premium and high-quality segment will also help build a culture of quality within the sector. For market-leading retailers, especially in the EU,
28
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / SAFFRON SECTOR 2018-2022 ]
quality is the make-or-break parameter. Afghan export-ers must build strong relationships and a brand based on quality with these importers and their networks. This entails that SPS and other quality-based requirements are fully ad-dressed before the product leaves Afghanistan.
As discussed earlier in the Strategy, the global distribu-tion of saffron is controlled by select large importers and resellers in EU countries like Spain, Italy and France. Closer to home, the UAE is similarly important as a re-exporter. A concerted focus on these countries is therefore required to build relationships with clients that have strong distribution channels.
Additionally, in the short-to-medium term, Afghanistan must look at both the demand and supply sides of the do-mestic market. Estimates indicate that domestic Afghan de-mand for saffron could be as high as three tons annually. This provides a strong base of clientele for Afghan saffron producers, albeit at lower prices.
LONG-TERM : CAPITALIZE ON ESTABLISHED BRAND AND ADVANCE UP THE VALUE CHAIN
In terms of volumes, Afghanistan is and will continue to be a smaller player in the global saffron industry for at least the next 10–15 years. However, through a concerted effort to increase / aggregate / scale up the amount of land dedicated to saffron cultivation, as well as improve overall productivity, the sector will be able to increase absolute export volumes. If quality and volume levels are improved and Afghan saffron becomes a recognized brand in international markets, then Afghan saffron producers will be able to move up the value chain closer to the end consumers. In some cases, Afghan exporters may also find it viable to directly reach consumers using e-commerce platforms.
MARKET POSITIONING : PREMIUM AND HIGH-QUALITY SEGMENTS
The following analysis divides into two broad phases : one related to the immediate, short-term perspective and the other to the medium / long-term outlook. By the latter pe-riod, it is expected that a significant portion of the NES – as well as the sector PoAs – will have been implemented. This phased approach is aimed at staging interventions in align-ment with the evolving capacities of each sector’s trade and investment support institutions and sector enterprises as NES implementation moves forward.
The following product-market combinations are further prioritized. These recommendations should not deter indi-vidual enterprises from acting on their own strengths and weaknesses, and in fact they are likely to benefit equally from the support and structural improvements to the val-ue chain which should result from implementation of this Strategy.
SHORT-TERM PRIORITY MARKETS ( 1–3 YEARS )Short-term priority markets are product–market combina-tions which are already exporting well but could either : a ) perform better with implementation of shorter-term improve-ments recommended in this Strategy ; or b ) be translated into quick success with promising variations on other suc-cessful products.
Domestic market
Domestic : About 40 % of the saf fron produced in Afghanistan is consumed domestically, with distribution through retail outlets in Herat and Kabul.20 The spice has a stable market in Afghanistan, with growing use in Afghan cuisine. Domestic demand mainly comes from high-income households in Afghanistan’s urban centres, restaurants and hotels. At present, the local market is dominated by import-ed Iranian saffron. As the Afghan saffron sector develops ( and with domestic demand trends remaining at the cur-rent pace ), there is a sizeable opportunity for Afghan saf-fron producers to capture market share from their Iranian competitors.
Strategy for the domestic market :
� Substitute Iranian saffron : supply the domestic market with domestic saffron.
� Promotions creating customer awareness on the properties and uses of saffron.
20.– Abadia, A. ( 2012 ) Analysis of the Saffron Industry in Afghanistan and Introduction to Export Promotion Strategies for Saffron. Slide 11, USAID
[ ASSESSING AFGHANISTAN’S POSITIONING VIS-À-VIS THE GLOBAL SAFFRON VALUE CHAIN ]
29
There are around 43 saffron trading companies supplying major saffron buyers in Afghanistan. Most of the traders are growers themselves or have alliances with farmers and farmers’ associations. Three major companies control the domestic market share, two of which are located in Herat and one in Kabul. The major companies are keen to sell their product to international buyers using so-called ‘friend-ship channels’ ( i.e. to friends, relatives or business partners who have the means and interest to sell saffron in foreign trading hubs ), which are relatively efficient for small-scale exports. As the high-value commodity can be easily shipped and does not require special treatment in store and no spe-cial items beyond what is needed to properly present it to clients, the saffron industry is not investment-driven. Local companies are thus able to sell abroad with little cost, which shifts the Afghan saffron sector’s focus to foreign markets instead of domestic supply.
South Asia ( India )
India : Population growth, increased urbanization and higher household incomes have driven the growth of saffron con-sumption in India. While India has the largest area under saffron cultivation after the Islamic Republic of Iran, it is in-sufficient to meet this growing demand. As a result, saffron imports to India have risen 23 % annually over the past five years.
Afghanistan has had remarkable success penetrating the Indian market ; according to United Nations Comtrade data, India imported US $ 15 million of saffron in 2016, with US $ 14 million supplied by Afghanistan. This success comes despite a 35 % tariff for saffron imports21 and may be ex-plained, in part, by lower quality standards among Indian consumers and government regulators. To better under-stand the Indian market, the Afghanistan Rural Enterprise Development Programme has also supported exposure visits to India for about six saffron enterprises from Herat to enhance market links.
Saffron is primarily consumed by high-income house-holds comprised of the elite. However, based on economic development, more and more middle-income households have started to demand the high-end spice.
21.– UNIDO ( 2014 ). Saffron Industry Value Chain Development in Iran : Diagnostic Study Report. Available from https ://open.unido.org/api/documents/4672742/download/Saffron %20Industry %20Value %20Chain %20Development %20In %20Islamic %20Republic %20of %20Iran %20- %20Diagnostic %20Study %20Report, p.12.
The world’s greatest spice-consuming country also wel-comes medium-quality saffron, which makes the Indian market more accessible. The main demand is segmented by the private sector, ranging from households to restau-rants and hotel chains. Afghan saffron exporters have been able to capitalize on India’s growth, developing strong re-lationships with wholesalers and retailers. The geographic proximity and growing market size of the destination market have helped in the development of these relationships. In the short term, it is expected that these relationships will stay stable and even become stronger, considering the rapid growth of the Indian market. Therefore, export to India brings significant potential for further market penetration and stable export opportunities.
Strategy for the Indian market :
� Increase production volumes to allow for stable, bulk shipments of saffron to India.
� Improve packaging standards to further enhance the reputation of Afghan saffron among Indian wholesalers and retailers.
� Enhance legal business relationships between Afghan sellers and Indian buyers to counter the al-lure of smuggling ( considering the interest of both parties in avoiding the 35 % tariff ).
Photo: ITC
Table 2: Target market: India
Target market Market segment Distribution channelAfghan saffron exports to markets, 2016 ( US $ )
Annual growth of sector imports ( 2012–2016 )
India Private households, and businesses Wholesalers, retailers 14 million 25 %
30
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / SAFFRON SECTOR 2018-2022 ]
Europe
The European market provides the best short-term oppor-tunities for market diversification. The region saw growth in saffron imports of 7 % annually between 2012 and 2016. Notably, a marginal amount of Europe’s saffron imports are currently arriving from Afghanistan, meaning that Afghanistan has enormous potential to capture a larger per-centage of market share in the dominant European markets. This depends, critically, on whether or not Afghanistan can address its quality control issues. European importers are willing to pay premium prices for premium-grade saffron but accessing these buyers is contingent on a rock-solid reputation for quality, as well as the application of SPS best practices at all stages of the production value chain.
European markets also act as re-exporters for pres-tige quality from all over the world. Therefore, re-exporters with a strong network serve as important export destina-tions, as they have high interest in high-quality saffron. The International Taste and Quality Institute in Brussels has rated Afghan saffron as the best in the world, which has further contributed to the high reputation of Afghan saffron
in Europe and enabled greater access to re-exporting coun-tries. The award and certificate of the Institute is valid for three years and the certificate holder can export its products to international markets. Consequently, the recognition of Afghan saffron by the Institute operated as a gate opener for international trade.
Saffron is widely used for consumption but also as a fragrance or dye, and in medicine. Its health benefits and unique flavour are widely known in Europe. Studies show that individuals / households consume more than 50 % of saf-fron ( mostly in the form of powder or threads ).22 Estimates indicate that 20 % is used by food and drink companies and the rest in the medical and cosmetic industries.23 Saffron is mainly distributed to European households through su-permarkets, and to industries through wholesalers and re-exporters. Besides the classical distribution channels, online supply has started to emerge as another popular way to access Afghan saffron.
22.– Ibid., p. 63.23.– Ibid.
Figure 13 : Iranian saffron export dynamics
Producer Re-exportTop importer of Iranian saffron
Islamic Republicof Iran
(Producer of90% of saffron in the world)
US$ 51,480,000
US$ 4,654,000
US$ 6,054,000
US$ 3,560,000
US$ 3,526,000
US$ 3,526,000
Spain• USA US$10 248,000• Italy US$8 136,000• Sweden US$8 136,000
• Switzerland US$251,000• Germany US$197,000• USA US$197,000
• Portugal US$2,938,000• Belgium US$951,000• Saudi Arabia US$919,000
• Saudi Arabia US$2,962,000• UK US$126,000• Sri Lanka US$559,000
• France US$339,000• Italy US$314,000• Austria US$237,000
• Lithuania US$363,000• Spain US$89,000• Norway US$67,000
Italy
France
Sweden
China
Germany
BothEnd-userMain re-exporter
[ ASSESSING AFGHANISTAN’S POSITIONING VIS-À-VIS THE GLOBAL SAFFRON VALUE CHAIN ]
31
France : France has been a stable destination mar-ket for Afghan saffron, with US $ 1.2 million of imports recorded in 2016. While 72 % of imported saffron is con-sumed domestically,24 high volumes are also re-exported to Portugal, Belgium and Saudi Arabia. France’s imports of saffron from international exporters grew 5 % annually between 2012 and 2016, with re-export increasing by 28 % annually during the same period. This bodes well for Afghan saffron exporters, who have seen their shipments to France increase at an average annual rate of 116 % over the past five years.
Germany : An initial assessment of Afghan saffron’s prospects in Germany may not seem particularly positive ; over the last several years the volume of Germany’s saf-fron imports ( and subsequent re-exports ) has declined. Furthermore, Afghanistan’s saffron exports to Germany stood at only US $ 53,000 in 2016, a relatively paltry sum. Nevertheless, opportunities exist to increase that figure. The presence of a sizeable Afghan diaspora in Germany could be the foundation for ‘friendship channels’ that facilitate the distribution of Afghan saffron in the German market.
Spain : Spain is the world’s largest re-exporter of saffron, supplying much of Europe with ‘Spanish’ branded saffron that is, in fact, grown in North Africa, the Middle East or Asia. Saffron imported to Spain undergoes advanced pro-cessing and packaging. Afghan saffron exports to Spain peaked at US $ 611,000 in 2013. After 2013, the exported value started to decline. The main reason for this decrease is related to contamination ( i.e. Escherichia coli and salmonel-la ) detected in Afghan saffron. The relief of sanctions on the Islamic Republic of Iran affected saffron exports to Spain, as Iranian saffron substituted Afghan exports. Due to lack of knowledge of the regulatory requirements and the inability of Afghan firms to provide the large amounts that Spanish importers requested, Afghan saffron lost in the competition against Iranian rivals.
Italy : Similar to Spain, Italy is a prominent re-exporter of saffron to the European market. Italy mainly resells saf-fron to Switzerland, Germany and the United States. Italy cultivates saffron domestically, but as in case of Spain, its domestic yields constitute a minority of its export volume. Considering Italy’s wide saffron trade network and high
24.– Ibid., p.13.
demand for saffron in Italian kitchens, Italy is an attractive market for Afghanistan.
Requirements for saffron in the EU market : Legal requirements – “musts”
� Use the network of re-exporters : Link with retail distribution networks through a branded chain re-tailer network.
� Food safety : Full compliance with European laws regarding safe food production ( EC Regulation No. 852/2004 ), in particular : » Hazard Analysis and Critical Control Points and
hygienic measures » Traceability from farmer to final packing ready
for export » Compliance of packaging materials to EU laws. » Meet legal EU requirements mentioned in the
Quality Minima Document of the European Spice Association.
� Regulations to meet : Association, General Food Law Regulation EU 178/2004, Microbiological Criteria for Foodstuffs Regulation 20783/2005, Traceability Regulation EU No. 178/2004, and Regulation 1169/2011 on Labelling and Allergens.
� Meet strict EU labelling requirements by devel-oping delivery of adequately packaged saffron, or consider entry into the EU market with unpackaged products and leave packaging to the destination market in order to meet standards and require-ments
Non-legal requirements – “good to have”
� Certification according to international stand-ards, such as food safety standards ( British Retail Consortium, International Featured Standards, ISO 22000, Food Safety System Certification, etc. ).
� Organic certification, according to EU laws Regulation No. 834/2007 and Regulation ( EC ) No. 889/2008.
Table 3: Target market: Europe
Target market
Market segment Distribution channelAfghan saffron
exports to markets 2016 ( US $ )
Annual growth of sector imports
( 2012–2016 )
France Re-exporters, wholesalers, saffron processors Wholesalers, retailers, resellers 1.2 million 0 %
Germany Supermarkets, shops / pharmacies, Internet Wholesalers, retailers 57,000 -24 %
Spain Re-exporters, wholesalers, saffron processors Wholesalers, retailers, resellers 0
Italy Re-exporters, wholesalers, saffron processors Wholesalers, retailers, resellers 0
32
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / SAFFRON SECTOR 2018-2022 ]
North America
United States : Afghan saffron exports to the United States currently rely on ‘friendship channels’ between the export-ers and members of the 300,000-strong Afghan diaspora living in the United States, of which the majority is con-centrated in the San Francisco Bay Area. The ‘friendship channels’ strategy obviously brings great expansion op-portunities and should be stretched as much as possible. Afghan saffron exports to the United States were valued be-tween US $ 111,000 and US $ 256,000 in the past five years. Moreover, a start-up from Chicago found by American vet-erans, which cooperates with Afghan farmers in Herat in the production, processing and distribution of saffron to the United States, recently received a US $ 250,000 investment from an American investor. The United States also shows positive trends in saffron imports, which brings opportunities for Afghanistan to meet the country’s increasing demand.
Outside of the ‘friendship channels’, major Afghan saf-fron enterprises have established solid ties with American saffron distributors. The majority of Afghan saffron exported to the United States is distributed to supermarkets and in-dustrial clients through wholesalers. Besides traditional dis-tribution channels, online sales platforms have emerged as another popular means to purchase Afghan saffron.
The United States market is increasingly interested in organic products and further research should be conducted to establish if Afghan saffron qualifies as ‘organic’ accord-ing to American regulators. As noted earlier in this report, saffron farmers in Afghanistan have been advised to use fertilizers as an input in the first year of planting. Following the initial planting stage, though, chemical inputs such as
fertilizers and pesticides are kept to a minimum ( if used at all ). If Afghan saffron is able to meet standards set by the National Organic Programme issued by the United States Department of Agriculture, thereby earning its ‘organic’ cer-tification, then this may allow Afghan exporters to corner the niche organic saffron market.
Strategy and requirements for the United States market :
� Produce a logo or emblem to distinguish Afghan saffron in the United States market.
� Meet preferences of United States importers, whether this entails shipments in bulk, packaging or retail-ready packaging.
� Registration with the United States Food and Drug Administration, with a designated agent closely co-ordinating with Administration regulators on SPS, health and quality compliance issues.
� Meet key standards and regulations for food safety. � Meet regulations issued by the United States Food
and Drug Administration, Department of Agriculture and Environmental Protection Agency.
� Obtain certification for quality standards. � Strengthen production and marketing of organic
saffron.
Table 4: Target market: United States
Target market Market segment Distribution channelAfghan saffron exports to
markets 2016 ( US $ )Annual growth of sector
imports ( 2012–2016 )
United StatesSupermarkets,
shops / pharmacies, Internet Wholesalers, retailers 256,000 14 %
MEDIUM-TO-LONG TERM ( +3 YEARS )
The markets listed in the short-term section will also hold ex-port potential in the medium / long-term. Assigning markets to the medium / long-term category is an acknowledgement that additional market understanding, product development and Strategy implementation is required and is unlikely to be completed in a time frame of less than two years.
East Asia ( China, Japan )
China : Geographic proximity, strong economic growth and a large population make China a high-potential export
destination for Afghan saffron producers. Building on histori-cal Silk Road relationships between China and Afghanistan, Afghan saffron brings great opportunities to boost business and people-to-people relationships with China. In 2016, Afghanistan signed six significant agreements and mem-orandums of understanding with China aiming to boost business and diplomatic relationships. Auspiciously, one of these agreements was specifically related to saffron ex-ports to China.
With the recently signed agreements, Afghanistan has the opportunity to benefit from China’s growing de-mand for saffron. China currently imports saffron from the Islamic Republic of Iran and Germany but distributors will
[ ASSESSING AFGHANISTAN’S POSITIONING VIS-À-VIS THE GLOBAL SAFFRON VALUE CHAIN ]
33
probably welcome more diversification in sourcing consider-ing the whopping 49 % annual growth in demand since 2012. Afghan saffron enterprises received a degree of exposure in the Chinese market after participating in one of the larg-est and most prominent Chinese food and beverage exhibi-tions in Guangzhou. Concerted efforts must still be made if Afghanistan wishes to establish itself as a major supplier of saffron to the Chinese market.
Japan : Japan is a particularly enticing market due to the high demand for premium products coming from a large base of high-income consumers. The market prefers to import saffron in bulk, likely due to the preference for Japanese-language retail packaging. Growth in saffron imports averaged 6 % annually between 2012 and 2016. That increase in the Japanese taste for saffron has not, unfortunately, translated into high sales for Afghan traders ; exports of Afghan saffron to Japan stood at only US $ 5,000 in 2016. This leaves quite a bit of room for growth, which perhaps explains the decision of Afghan Saffron ( one of the major saffron companies in Afghanistan ) to open an office in Kyoto.
Japan’s planned development assistance to Afghanistan, in the form of a recently announced US $ 8.7 million pro-gramme to improve the agricultural value chain in Herat Province, may have a secondary benefit of connecting Afghan saffron enterprises with Japanese wholesalers. It will likely take several years for relationships to grow be-tween Afghan saffron traders and Japanese buyers, during which time Afghan saffron producers should ensure that their product is ready to pass Japan’s stringent quality and SPS standards.
Online marketing in both countries brings great op-portunities to spread knowledge about Afghan saffron in East Asian countries. Additionally, strengthening visibility of the product through participation at Asia trade fairs would help to establish the reputation of Afghan saffron in Asian markets.
Europe
On a medium- and long-term basis, the best approach for the European market is to increase the sales volume of high-quality Afghan saffron to the most dominant re-ex-porting countries, namely Spain, Italy and France. After an initial period focusing on bulk shipments, Afghan saffron enterprises can focus on moving up the value chain by es-tablishing relationships with local distributors and national supermarket chains. Success in this area will require a sig-nificant improvement in Afghan packaging standards, along with credible quality certification. A well-developed national stamp may help to demonstrate the quality of Afghan saffron in the long term.
Other European countries such as Sweden, the Netherlands, Austria, the Czech Republic, Belgium, Hungary and Switzerland have recently shown interest in Afghan
saffron. Buyers in all of these countries made small-scale purchases of saffron in 2016, according to United Nations Comtrade data. Further penetration of these markets may in-volve a period of ‘test’ trade, in which wholesalers and retail-ers determine the level of domestic demand, as well as feel out their Afghan partners for reliability and quality control.
Middle East
Demand for saffron in Middle Eastern countries, in par-ticular the UAE and Saudi Arabia, has seen steady growth since 2012. While distinctive culinary traditions exist in dif-ferent regions of the Middle East, all are familiar with saf-fron and its applications in the kitchen. While Spain and the Islamic Republic of Iran dominate the Middle Eastern market ( unsurprisingly ), Afghan saffron has been making promising gains. In 2016, Saudi Arabia imported US $ 1.2 million of Afghan saffron, making it one of the top markets for Afghanistan’s saffron producers. Middle Eastern coun-tries are ( relatively ) accessible for Afghan traders in terms of geographic proximity and visa requirements, and have a significant demographic of consumers who are attracted to high-priced luxury goods. To continue increasing mar-ket share throughout this region, Afghan saffron producers must invest in the development of attractive packaging and branding to attract luxury shoppers.
Photo: ITC
34
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / SAFFRON SECTOR 2018-2022 ]
Other spices and medicinal plants hold significant export potential for Afghanistan
Afghanistan is particularly suited for the production of a wide array of uncommon plants and spices owed to its semiarid climate and favourable soil conditions.
Some of the most important medicinal plants and spices produced in the country for domestic consumption and exports include asafoetida ( or hing ), oleo-gum-resin, liquorice ( Glycyrrhiza glabra and G. uralensis ) root, caraway fruit ( Carum carvi ), cumin ( Cuminum cyminum ) and jujube ( Ziziphus jujube ) fruit, besides saffron.
The top export destination for Afghan exports of spices ( except saffron ) was India ( 2016 ). The most significant sub-products exported to the Indian market were cumin at an exported value of US $ 7 million, followed by green caraway ( US $ 2,8 million ), kajak caraway ( US $ 1,3 million ) and black caraway ( US $ 738,000 ) in 2015. Other major destinations are Pakistan, Germany, the UAE and the United States.
Among the medicinal plants, asafoetida, an aromatic gum-resin, is of particular importance for Afghan regional trade. Afghanistan’s main market for this product is India. Afghanistan’s exported value of asafoetida to the Indian market reached US $ 70 million in 2016. In India, this product is used in spices, especially in the south, and
in traditional medicines all over the country. The price of this crop in international markets is relatively high, due to the limited areas of production, mainly in Afghanistan and the Islamic Republic of Iran. India also re-exports asafoetida to the UAE, the United States and Singapore, among others. These are markets, which could be explored by Afghanistan.
Another medicinal plant holding significant export potential for Afghanistan is liquorice. This plant has also several applications in the food industry ( confectionary, beverages, etc. ). The EU is an important market for liquorice due to growing scarcity in supplies. Value addition, as most European buyers import liquorice extract and compliance with legal requirements ( Ochratoxin A levels ) are important for this market.
The global market for spices and herbs is expected to continue growing in the near future. Several challenges prevent Afghanistan from seizing the existing market opportunities for these products. One of the main constraints is the weak capacity for postharvest-value addition ( processing and packaging ) of these products within the country. Some improvements in this area are starting to occur, as Afghanistan is now producing essential oil distillation from rose ( Rosa spp. ) flowers.
Figure 14 : Afghanistan exports of spices excluding saffron ( 2012-2016 ) in US$ thousands
12000
10000
8000
6000
4000
2000
0India Pakistan
2012
Germany United ArabEmirates
United Statesof America
2013 2014 2015 2016
Source : ITC Trade Map. Based on Comtrade mirror data
[ ACHIEVING THE GOALS : VISION AND STRATEGIC OBJECTIVES ]
35
ACHIEVING THE GOALS : VISION AND STRATEGIC OBJECTIVES
VISION
The Afghan saffron sector is united by the following vision :
“ Saffron : spicing up Afghan exports ”In order to fulfil this ambitious vision, the following strategic objectives have been identified. These objectives provide a framework for developing solutions over a five-year time frame. The strategic objectives agreed on by stakeholders to uphold the vision are as follows.
STRATEGIC OBJECTIVE 1 : INCREASE PRODUCTION AND PRODUCTIVITY THROUGH IMPROVED SUPPLY-SIDE CONDITIONS.
Supply-side conditions for saffron production need to be improved, particularly in the areas of access to inputs, fi-nance, skilled labour and land for cultivation. This integrated approach will aim to increase the absolute production levels as well as productivity over the long term.
Farmer field schools and master trainer programmes will be developed and implemented to encourage the adoption of best practices in the production, harvesting and process-ing stages. On the inputs side, farmer access to good qual-ity corms will be improved through a variety of initiatives, including pilot programmes to increase corm multiplication. Ongoing Government-led initiatives to distribute corms on a large scale will also be supported through the Strategy.
Industry-academic links and research in the areas of saf-fron will be improved. The potential to develop academic degree programmes, as well as technical and vocational ed-ucation and training certificate programmes focusing on saf-fron, will be explored. The research dimension is especially
important given the relative lack of experience with saffron until recently in Afghanistan. Research will identify options for expanding land under saffron cultivation, among other objectives.
With the understanding that knowledge transfer and best practices often organically accompany investments, this strategic objective will focus on spurring investment in the sector through investment promotion efforts.
Activities falling under this strategic objective will also fo-cus on improving access to finance, as this has been identi-fied as a major constraint. Expanding access to working and investment capital for women will be especially important.
Photo: ITC
36
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / SAFFRON SECTOR 2018-2022 ]
Figure 15 : Future value chain – strategic objective 1
Corm
s, b
ulbs
(US$
3-4
/kg,
whi
le
for 1
jerib
500
kg
-800
kg
requ
ired)
Inpu
ts
Prod
uctio
nAs
sem
bly
Proc
essi
ngDi
strib
utio
nDo
mes
tic m
arke
t(a
roun
d 40
% o
f Afg
han
saffr
on c
onsu
med
do
mes
tical
ly)
Inte
rnat
iona
l mar
ket
Croc
us fi
elds
(opt
imum
soi
ls: r
ich
in c
alci
um, s
andy
loam
, hig
h or
gani
c co
nten
t)
Labo
ur (h
ighl
y in
tens
ive)
Dryi
ng E
quip
men
t (el
ectri
c dr
yers
, de
hydr
ator
s
Pack
agin
g M
ater
ial
Exte
nsiv
e ad
apta
tion
stud
ies
for i
dent
ifica
tion
of s
uita
ble
area
s fo
r pro
duct
ion
Mas
ter p
rogr
amm
ein
qua
lity
and
food
safe
ty is
sues
Info
rmat
ion
shar
ing
of s
affro
n-fo
cuse
dre
sear
ch
Teac
hing
mat
eria
lde
velo
pmen
t
Colla
bora
tion
with
inte
rnat
iona
lin
stitu
tions
with
saffr
on e
xper
tise
R&D
saffr
onag
enda
R&D
for c
orm
mul
tiplic
atio
n
Dev.
Sup
ply
chai
nof
cor
mco
mpa
nies
Saffr
on e
duca
tion
prog
ram
mes
Desi
gn a
nd s
uppo
rt c
redi
t sch
emes
: Wor
ksho
p to
sen
sitiz
e ba
nk o
ffice
rs to
sec
tor a
nd w
omen
’s fi
nanc
ial n
eeds
Prom
ote
inve
stm
ent i
n th
e pr
oces
sing
sta
ges
of th
e sa
ffron
val
ue c
hain
: inc
entiv
e pa
ckag
es, t
arge
ted
initi
ativ
e to
attr
act i
nves
tmen
t in
sect
or
Fert
ilizer
s
Prod
uctio
n by
sm
all t
om
ediu
m-s
ized
saf
fron
farm
ers
(spe
cial
ized
in s
affro
npr
oduc
tion)
Mod
ern
proc
essi
ng c
entr
esw
ith m
oder
n te
chno
logy
Fiel
d Pr
epar
atio
n
Plan
ting
Sepa
ratio
n of
stig
mas
Dryi
ng o
f stig
mas
Sort
ing
and
grad
ing
Corm
mul
tiplic
atio
n
Qual
ityte
stin
gla
bora
tory
Test
ing
Pack
agin
g
Irrig
atio
n
Harv
est
On F
arm
Stor
age
Tran
spor
tatio
nto
Pro
cess
ing
Faci
litie
s
Smal
l-sca
le o
n- fa
rmpr
oces
sing
Saffr
on tr
ader
s
Expo
rter
s
Cust
oms
offic
e
Glob
al R
etai
lers
Saffr
on b
uyer
sW
hole
sale
rsNa
tiona
l ret
aile
rs
Tota
l Exp
ort U
S$ 1
7 m
illion
sTo
p 5
expo
rt d
estin
atio
ns
(201
6)•
Indi
a US
$ 14
milli
ons
• Fr
ance
US$
1.2
milli
ons
• Sa
udi A
rabi
a US
$ 1.
2 m
illion
s•
Unite
d St
ates
(US$
238
,000
)•
Bahr
ain
US$
110,
000
Acce
ss to
high
qua
lity
corm
s
Stra
tegi
c ob
ject
ive
1 : I
ncre
ase
prod
uctio
n an
d pr
oduc
tivity
thro
ugh
impr
oved
sup
ply-
side
con
ditio
ns.
Acce
ss to
high
qua
lity
corm
s
Farm
er fi
eld
scho
ols
for s
affro
npr
oduc
tion
[ ACHIEVING THE GOALS :VISION AND STRATEGIC OBJECTIVES ]
37
STRATEGIC OBJECTIVE 2 : STRENGTHEN THE ORGANIZATION OF THE SECTOR’S ECOSYSTEM THROUGH GREATER COLLABORATION AND EFFICIENCY.
The Afghan saffron sector stands to benefit from improved coordination between the various actors involved in the val-ue chain, including farmers, intermediaries, exporters and researchers, among others. The high degree of fragmenta-tion at the cultivation level stems from small per capita plot size, although farmers bonding together at the processing and marketing stages can be immensely useful in offsetting this challenge.
Capacity-building initiatives will be undertaken for farmers’ associations and other stakeholder groups in the sector. The Strategy will focus on strengthening existing and devel-oping new international institutional links in the sector. This will include building research ties to academic institutions in India, the Islamic Republic of Iran, Spain and Italy, among other countries.
Activities falling under this strategic objective will include a concerted effort to organize and / or enhance producer groups, including farmers’ associations, at the local, pro-vincial and national levels. These associations will assist in the deployment of targeted technical assistance, and at the same time improve cohesiveness between farmers.
Photo: ITC
38
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / SAFFRON SECTOR 2018-2022 ]
Figure 16 : Future value chain – strategic objective 2
Corm
s, b
ulbs
(US$
3-4
/kg,
whi
le
for 1
jerib
500
kg
-800
kg
requ
ired)
Inpu
ts
Prod
uctio
nAs
sem
bly
Proc
essi
ngDi
strib
utio
nDo
mes
tic m
arke
t(a
roun
d 40
% o
f Afg
han
saffr
on c
onsu
med
do
mes
tical
ly)
Inte
rnat
iona
l mar
ket
Stra
tegi
c ob
ject
ive
2 : S
tren
gthe
n th
e or
gani
zatio
n of
the
sect
or’s
eco
syst
em th
roug
h gr
eate
r col
labo
ratio
n an
d ef
ficie
ncy.
Croc
us fi
elds
(opt
imum
soi
ls: r
ich
in c
alci
um, s
andy
loam
, hig
h or
gani
c co
nten
t)
Labo
ur (h
ighl
y in
tens
ive)
Dryi
ng E
quip
men
t (el
ectri
c dr
yers
, de
hydr
ator
s
Pack
agin
g M
ater
ial
Stre
ngth
enre
sear
ch-
exte
nsio
n-fa
rmer
links
Stre
ngth
enso
uth-
sout
hco
oper
atio
nin
the
saffr
onse
ctor
Prov
inci
al a
nd n
atio
nal c
oord
inat
ion
com
mitt
ees
form
ed b
y re
leva
nt s
take
hold
ers
Capa
cita
te fa
rmer
s’ a
ssoc
iatio
ns le
ader
s to
enh
ance
thei
r lea
ders
hip
skills
Fert
ilizer
s
Prod
uctio
n by
sm
all t
om
ediu
m-s
ized
saf
fron
farm
ers
(spe
cial
ized
in s
affro
npr
oduc
tion)
Mod
ern
proc
essi
ng c
entr
esw
ith m
oder
n te
chno
logy
Fiel
d Pr
epar
atio
n
Plan
ting
Sepa
ratio
n of
stig
mas
Dryi
ng o
f stig
mas
Sort
ing
and
grad
ing
Corm
mul
tiplic
atio
n
Qual
ityte
stin
gla
bora
tory
Test
ing
Pack
agin
g
Irrig
atio
n
Harv
est
On F
arm
Stor
age
Tran
spor
tatio
nto
Pro
cess
ing
Faci
litie
s
Smal
l-sca
le o
n- fa
rmpr
oces
sing
Saffr
on tr
ader
s
Expo
rter
s
Cust
oms
offic
e
Glob
al R
etai
lers
Saffr
on b
uyer
sW
hole
sale
rsNa
tiona
l ret
aile
rs
Tota
l Exp
ort U
S$ 1
7 m
illion
sTo
p 5
expo
rt d
estin
atio
ns
(201
6)•
Indi
a US
$ 14
milli
ons
• Fr
ance
US$
1.2
milli
ons
• Sa
udi A
rabi
a US
$ 1.
2 m
illion
s•
Unite
d St
ates
(US$
238
,000
)•
Bahr
ain
US$
110,
000
Farm
er fi
eld
scho
ols
for s
affro
npr
oduc
tion
[ ACHIEVING THE GOALS :VISION AND STRATEGIC OBJECTIVES ]
39
STRATEGIC OBJECTIVE 3 : SPUR MARKET PENETRATION AND DEVELOPMENT THROUGH INTEGRATED QUALITY MANAGEMENT, PACKAGING AND BRANDING OPERATIONS.
Building an Afghan saffron brand that is renowned for its high quality will be paramount. Achieving success in this area requires reforms across the entire span of the saffron value chain, in terms of how corms are sourced and graded, planting techniques, harvesting techniques and postharvest processing. Standards development, adoption and enforce-ment will be undertaken as well. Capacity-building will also be provided for quality testing institutions and systems.
Keeping in mind that e-commerce is a fast-emerging me-dium to access retailers and end users, the Strategy will lend support to exploring the feasibility of e-commerce options for Afghan saffron exporters. Technical assistance may be provided for pilot e-commerce efforts if this sales medium shows potential to boost saffron exports.
Exporters will be provided critical in-market support to promote Afghan saffron at the regional and international lev-els. Activities will also focus on increasing the accessibility of market intelligence through support for the development and dissemination of profiles and guides for existing and potential markets.
In a highly competitive landscape, packaging aesthetics are a critical consideration. Given the low awareness and capacity of Afghan saffron producers in this area, activities will focus on access to packaging equipment and support for domestic packaging facilities.
Photo: ITC
40
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / SAFFRON SECTOR 2018-2022 ]
Figure 17 : Future value chain – strategic objective 3
Corm
s, b
ulbs
(US$
3-4
/kg,
whi
le
for 1
jerib
500
kg
-800
kg
requ
ired)
Inpu
ts
Prod
uctio
nAs
sem
bly
Proc
essi
ngDi
strib
utio
nDo
mes
tic m
arke
t(a
roun
d 40
% o
f Afg
han
saffr
on c
onsu
med
do
mes
tical
ly)
Inte
rnat
iona
l mar
ket
Croc
us fi
elds
(opt
imum
soi
ls: r
ich
in c
alci
um, s
andy
loam
, hig
h or
gani
c co
nten
t)
Labo
ur (h
ighl
y in
tens
ive)
Dryi
ng E
quip
men
t (el
ectri
c dr
yers
, de
hydr
ator
s
Pack
agin
g M
ater
ial
Fert
ilizer
s
Prod
uctio
n by
sm
all t
om
ediu
m-s
ized
saf
fron
farm
ers
(spe
cial
ized
in s
affro
npr
oduc
tion)
Mod
ern
proc
essi
ng c
entr
esw
ith m
oder
n te
chno
logy
Fiel
d Pr
epar
atio
n
Plan
ting
Sepa
ratio
n of
stig
mas
Dryi
ng o
f stig
mas
Sort
ing
and
grad
ing
Corm
mul
tiplic
atio
n
Qual
ityte
stin
gla
bora
tory
Test
ing
Pack
agin
g
Irrig
atio
n
Harv
est
On F
arm
Stor
age
Tran
spor
tatio
nto
Pro
cess
ing
Faci
litie
s
Smal
l-sca
le o
n- fa
rmpr
oces
sing
Saffr
on tr
ader
s
Expo
rter
s
Cust
oms
offic
e
Glob
al R
etai
lers
Saffr
on b
uyer
sW
hole
sale
rsNa
tiona
l ret
aile
rs
Tota
l Exp
ort U
S$ 1
7 m
illion
sTo
p 5
expo
rt d
estin
atio
ns
(201
6)•
Indi
a US
$ 14
milli
ons
• Fr
ance
US$
1.2
milli
ons
• Sa
udi A
rabi
a US
$ 1.
2 m
illion
s•
Unite
d St
ates
(US$
238
,000
)•
Bahr
ain
US$
110,
000
Farm
er fi
eld
scho
ols
for s
affro
npr
oduc
tion
Cond
uct t
rain
ing
to fa
cilit
ate
impl
emen
tatio
n of
stan
dard
s
Trac
eabi
lity
syst
em th
roug
hba
rcod
es fo
rsa
ffro
n in
dust
ry
Supp
ort M
oCI
Saff
ron
Qua
lity
Cert
ifica
te
Assi
st c
ompa
nies
to g
et IS
Oce
rtifi
catio
n
Dev
elop
Afg
han
Saff
ron
Qua
lity
Stam
p
Enha
nce
mar
ket
inte
llige
nce
onre
gion
al a
nd
inte
rnat
iona
l
Awar
enes
sra
isin
gca
mpa
ign
onAf
ghan
saf
fron
Revi
sion
of e
xist
ing
inte
rnat
iona
lm
arke
t man
dato
ryre
quire
men
tsEn
hanc
e m
arke
tin
telli
genc
e th
roug
hde
velo
pmen
t of
mar
ket p
rofil
es
Enha
nce
in m
arke
tsu
ppor
t thr
ough
ca
paci
ty b
uild
ing
of
trad
e at
tach
és
abro
ad
Enha
nce
busi
ness
and
mar
ketin
gca
paci
ties
Upd
ate
inst
itutio
nal
web
site
s
Part
icip
atio
n at
inte
rnat
iona
l fai
rsan
d ex
hibi
tions
Stra
tegi
c ob
ject
ive
3 : S
pur m
arke
t pen
etra
tion
and
deve
lopm
ent t
hrou
gh in
tegr
ated
qua
lity
man
agem
ent,
pack
agin
g an
d br
andi
ng o
pera
tions
.
[ MOVING TO ACTION ]
41
MOVING TO ACTION
KEY REQUIREMENTS FOR EFFECTIVE IMPLEMENTATION
The development of the future value chain for the Afghan saffron sector is a five-year project defined through a con-sultative 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 Strategy’s PoA.
The Strategy in and of itself will not alone suffice to en-sure the sector’s sustainable development. Such develop-ment will require the coordination of various activities. While the execution of these activities will allow for the Strategy’s targets to be achieved, success will ultimately depend on the ability of stakeholders to plan and coordinate actions in a tactical manner. Seemingly unrelated activities must be synchronized across entities in the public sector, private sector and non-governmental organizations, along with the participation of local communities, in order to create sustain-able results.
To ensure the success of the Strategy, 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 PUBLIC AND PRIVATE SECTOR COORDINATING BODY AND EXECUTIVE SECRETARIAT
Saffron sector steering committee
A key success criterion for the Strategy is the ability to coor-dinate activities, monitor progress and mobilize resources for implementation. It is recommended that a steering com-mittee comprised of the key public and private sector entities be formed or supported ( if a similar entity already exists ). This will function as a platform with balanced representation of all major saffron stakeholders to share information.
Overall it is proposed that the steering committee be re-sponsible for the following tasks related to Strategy implementation :
� Coordinate and monitor the implementation of the Strategy by the Government, private sector, institutions or international organizations to ensure implementation is on track ;
� Identify and recommend allocation of resources neces-sary for the implementation of the Strategy ;
� Assess the effectiveness and impact of the Strategy ; � Ensure consistency with the Government’s existing
policies, plans and strategies, and align institutions’ and agencies’ internal plans and interventions with the Strategy PoA ;
� Elaborate and recommend revisions and enhancements to the Strategy 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 for the monitoring, coordina-tion, resource mobilization, policy advocacy and com-munication functions to enable effective implementation of the Strategy ;
� Provide the sector secretariat with the mandate and the necessary resources to fulfil its functions in an effective manner.
Composition of the saffron sector steering committeeIt is recommended that the steering committee be com-prised of key entities involved in the sector, with special fo-cus on ensuring equitable involvement of both the public and the private sector.
Secretariat
A secretariat will assist the saffron sector steering committee in acting as an operational body responsible for the daily coordination, monitoring and mobilization of resources for implementing 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 2–3 technical operators.
42
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / SAFFRON SECTOR 2018-2022 ]
The core responsibilities of the secretariat should be to : � Support functioning of the steering committee ; � Collect and manage data to monitor the progress and
impact of Strategy implementation ; � Liaise with and coordinate development partners for
Strategy implementation ; � Elaborate project proposals and build partnerships to
mobilize resources to implement the Strategy ; � Follow up on policy advocacy recommendations from the
steering committee ; � Ensure effective communication and networking for suc-
cessful Strategy implementation.
Both the steering committee and 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 may be determined that the secretariat is accommodated as part of an existing entity with an extended mandate and resources allocated to it.
Photo: ITC
PLAN OF ACTION
44
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / SAFFRON SECTOR 2018-2022 ]
Stra
tegi
c ob
ject
ive
1 : in
crea
se p
rodu
ctio
n an
d pr
oduc
tivity
thro
ugh
impr
oved
sup
ply-
side
con
ditio
ns.
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
etLe
ad a
nd s
uppo
rting
im
plem
ente
rs
2017
2018
2019
2020
2021
2022
1.1.
Impa
rt tra
inin
g aim
ed a
t pr
omulg
atio
n of
bes
t far
min
g an
d pr
oces
sing
prac
tices
.
1.1.
1. D
evelo
p a m
aster
train
ing p
rogr
amm
e on
best
farm
ing an
d pr
oces
sing
prac
tices
, inc
ludi
ng o
n iss
ues r
elated
to q
ualit
y and
food
safet
y.
• De
velo
p cur
ricul
a and
teac
hing m
ateria
ls fo
r the
mas
ter tr
aining
prog
ramm
e in t
he fo
rm of
a gu
iding
m
anua
l ( in
ligh
t of t
he S
affro
n O
pera
tion
Man
ual d
evelo
ped
by th
e Da
nish
Com
mitt
ee fo
r Aid
to
Afg
han
Refu
gees
and
Wor
ld B
ank )
in li
ne w
ith m
arkets
’ req
uirem
ents,
usin
g reg
iona
l exp
erien
ce
and
partn
ering
with
inter
natio
nal b
uyer
s’ qu
ality
depa
rtmen
ts ( e
.g. M
cCor
mick
).•
Set u
p prop
er ins
titutio
nal fr
amew
ork a
nd te
chnic
al su
ppor
t func
tions
to op
eratio
naliz
e the
mas
ter tr
ain-
ing pr
ogram
me,
allow
ing fo
r a m
ultip
lier e
ffect
thro
ugh e
xtens
ion s
ervic
es an
d farm
er fie
ld sc
hool
s.•
Identi
fy an
d sele
ct ke
y farm
ers’
orga
nizati
ons,
coop
erati
ves a
nd pr
oces
sing e
ntitie
s ( He
rat an
d Fary
ab )
to se
rve as
nuc
lei fo
r pilo
t init
iative
s. Ev
aluate
the r
each
of f
armer
s’ or
ganiz
ation
s, th
eir cu
rrent
per-
form
ance
and
their
pas
t wor
k in t
he sa
ffron
valu
e cha
in, an
d as
sess
their
mark
et rea
dine
ss. E
valu
ate
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.
• Se
lect,
sens
itize
and
train
prog
ramm
e am
bass
ador
s and
train
ers.
Topi
cs to
inclu
de :
–Te
chni
cal k
nowl
edge
on
saffr
on b
est f
arm
ing
prac
tices
, with
an
emph
asis
on q
ualit
y an
d fo
od
safet
y prin
ciples
; –
Deve
lopi
ng p
artic
ipato
ry an
d di
scov
ery-
base
d lea
rning
and
man
agem
ent s
kills ;
–Or
ganiz
ing pe
riodic
al br
iefs f
rom
train
ers t
o key
loca
l / pr
ovinc
ial st
akeh
older
s in o
rder
to im
prov
e flo
ws o
f inf
orm
ation
and
know
ledge
-sha
ring.
1•
Instit
utio
nal a
nd te
chnic
al fra
mew
ork
set u
p an
d op
erati
onal
• At
leas
t 5–1
0 far
mer
s org
aniza
tions
/ co
oper
ative
s ide
ntifie
d, as
sess
ed an
d pr
ofile
s crea
ted•
Fifty
am
bass
ador
s /
train
ers
are
capa
citate
d•
Quar
terly
brief
ings
from
train
ers
or-ga
nized
ever
y yea
r
MAI
L ( A
gricu
lture
Res
earc
h In
stitu
te o
f Afg
hani
stan
( A
RIA )
), M
oCI,
ACCI
, Dan
ish
Com
mitt
ee fo
r Aid
to A
fgha
n Re
fuge
es
1.1.
2. R
oll o
ut th
e mas
ter tr
aining
pro
gram
me w
ith p
artic
ular
focu
s on
facto
rs aff
ectin
g th
e qua
lity
and
prec
ious
ness
of s
affro
n.
• Pr
e-ha
rvesti
ng :
–So
rting
of c
orm
s and
iden
tifica
tion
of g
ood
quali
ty co
rms f
or p
rodu
ction
–Pe
st an
d di
seas
e con
trol
–Fe
rtiliz
ers
( disc
oura
ge th
e us
e of
nig
ht s
oil,
which
is n
egati
vely
perc
eived
in E
U an
d Un
ited
State
s mark
ets )
–Be
st far
ming
prac
tices
( e.g
. soi
l and
wate
r man
agem
ent,
bed
prep
aratio
n ).
• Ha
rvesti
ng an
d po
stharv
est :
–Qu
ality
stand
ards
for s
affro
n pr
oduc
tion,
e.g
. ISO
363
2 an
d fo
od s
afety
princ
iples
, e.g
. Haz
ard
Analy
sis an
d Cr
itica
l Con
trol P
oint
s –
Saffr
on h
arves
ting
meth
ods
–St
ock /
ware
hous
ing an
d tra
nspo
rtatio
n of
saffr
on fl
ower
from
field
to p
roce
ssing
cent
res.
• Pr
oces
sing :
–Sp
ice se
parat
ion
meth
od –
Sorti
ng an
d gr
ading
–Pr
oduc
t qua
lity t
ests
( facto
rs un
der c
onsid
erati
on fo
r saff
ron
quali
ty ) –
Use o
f drye
rs –
Pack
aging
.
1•
Mas
ter tr
aining
prog
ramm
e ope
ration
-al
and
bene
fitin
g 4,
000
farm
ers.
In ea
rly st
ages
the f
ocus
to b
e on
Herat
an
d Fa
ryab
prov
inces
.
MAI
L ( A
RIA )
,ACC
I, M
oCI,
ANSA
1.1.
3. C
arry o
ut aw
arene
ss-ra
ising
and
advis
ory c
ampa
igns
to p
rom
ote t
he u
se o
f bes
t prac
tices
.Us
ing fo
otag
e fro
m o
f the
mas
ter tr
aining
pro
gram
me,
carry
out
aware
ness
-raisi
ng ca
mpa
igns
show
-ing
goo
d ( v
ersu
s bad
) prac
tices
and
relate
d ec
onom
ic an
d so
cial b
enefi
ts.Pil
ot ad
visor
y cam
paig
ns ta
rgete
d at
farm
s and
own
ers o
f pro
cess
ing fa
ctorie
s to
prov
ide p
ractic
al rec
omm
enda
tions
for q
ualit
y and
pro
ducti
vity e
nhan
cem
ent.
• Ba
sed
on le
sson
s lea
rned
, bro
aden
the c
ampa
ign
using
pos
ters,
leafle
ts an
d bo
oklet
s, bo
th p
rinted
an
d on
line.
3•
One a
nnua
l com
preh
ensiv
e cam
paign
pe
r yea
r dev
elope
d in
Herat
/ Fa
ryab
befo
re ha
rvesti
ng se
ason
MAI
L ( A
RIA )
in co
llabo
ratio
n wi
th N
ation
al Ra
dio
Telev
ision
of
Afg
hanis
tan, M
AIL,
ACCI
, AN
SA
[ PLAN OF ACTION ]
45
Stra
tegi
c ob
ject
ive
1 : in
crea
se p
rodu
ctio
n an
d pr
oduc
tivity
thro
ugh
impr
oved
sup
ply-
side
con
ditio
ns.
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
etLe
ad a
nd s
uppo
rting
im
plem
ente
rs
2017
2018
2019
2020
2021
2022
1.2.
Sup
port
the
scali
ng u
p of
bo
th fa
rmin
g an
d pr
oces
sing
oper
atio
ns.
1.2.
1. E
ncou
rage s
tructu
ral ch
ange
by f
acili
tating
the p
urch
ase o
f add
ition
al inp
uts (
land,
buil
d-ing
s ), a
llowi
ng fo
r adj
ustm
ent a
nd ec
onom
ies o
f sca
le.
• Pl
an re
adju
stmen
t and
rearr
ange
men
t of l
and
parc
els an
d th
eir o
wner
ship
to fo
rm la
rger
and
mor
e rat
ional
land h
olding
s ( wi
th a v
iew to
impr
oving
rural
infra
struc
ture a
nd to
impl
emen
t dev
elopm
ental
an
d en
viron
men
tal p
olici
es ) w
hile b
uildi
ng an
d str
engt
henin
g lin
ks w
ith sm
allho
lder
s.•
Enco
urag
e inv
estm
ent b
y ens
uring
own
ersh
ip ( s
ecur
e rig
ht to
land
), tra
nsfer
abili
ty an
d tra
nsfo
rm-
abili
ty of
capi
tal th
roug
h go
od g
over
nanc
e and
rule
of la
w.Pr
omot
e farm
-leve
l inv
estm
ent t
hrou
gh la
nd co
nsol
idati
on to
enab
le far
mer
s to
attain
a lev
el of
in-
com
e ade
quate
for p
ositi
ve sa
vings
and
reinv
ested
earn
ings.
2•
At le
ast 1
,000
add
ition
al he
ctar
es
turn
ed a
s a
resu
lt of
the
rear
rang
e-m
ent
of l
and,
in a
lignm
ent
with
M
AIL’s
nati
onal
saffr
on p
rogr
amm
e
Afgh
anist
an L
and
Auth
ority
( A
razi ),
MoC
I, M
AIL,
ACCI
, M
inistr
y of J
ustic
e
1.2.
2. P
rovid
e inc
entiv
es an
d inv
estm
ent s
uppo
rt to
lowe
r the
pric
e of c
apita
l in
orde
r to
facili
tate i
n-ve
stmen
t in
new
equip
men
t / te
chno
logi
es ( e
.g. d
ryers,
pro
cess
ing tr
ays,
pack
aging
mac
hiner
y ).
• Pu
t in
plac
e m
easu
res
to im
prov
e ad
optio
n of
inno
vatio
n, s
uch
as c
redi
t for
inve
stmen
t in
farm
-lev
el or
firm
-leve
l inn
ovati
on, i
ncen
tives
to ad
opt s
pecif
ic tec
hnol
ogies
and
prac
tices
, sup
port
to
scale
-up
activ
ities
, etc.
2•
At le
ast 2
0 su
cces
sful a
gric
ultu
ral
loan
s per
year
Min
istry
of F
inan
ce ( M
oF ),
Da A
fgha
nistan
Ban
k ( D
AB ),
Afgh
anist
an B
anks
As
socia
tion
( ABA
), AC
CI
1.2.
3. Id
entif
y and
dev
elop
oppo
rtunit
ies fo
r joi
nt ve
ntur
es w
ith th
e aim
to :
• Ac
cess
new
mark
ets an
d di
strib
utio
n ne
twor
ks•
Expa
nd ca
pacit
y and
dive
rsify
prod
ucts
• Ac
cess
grea
ter re
sour
ces,
inclu
ding
know
-how
, tec
hnol
ogy a
nd fi
nanc
e.In
light
of j
oint
vent
ures
, set
up in
the I
slam
ic Re
publ
ic of
Iran
with
Spa
nish
and
Italia
n fir
ms.
The
joint
vent
ure m
odel
will
have
to b
e ver
y flex
ible,
with
a lim
ited
lifes
pan
and
guara
ntee
mec
hanis
ms,
thus
lim
iting
the c
omm
itmen
t for
bot
h pa
rties
and
the b
usine
ss’ e
xpos
ure.
• Ide
ntify
and
selec
t pos
sible
types
of j
oint
vent
ure m
odels
• Se
lect a
few
pilo
t Afg
han
com
panie
s bas
ed o
n ca
pacit
y and
per
form
ance
• As
sess
firm
s’ rea
dine
ss fo
r a jo
int ve
ntur
e•
Plan
the j
oint
vent
ure r
elatio
nship
• Ch
oose
the r
ight
joint
vent
ure p
artn
ers
• Cr
eate
a joi
nt ve
ntur
e agr
eem
ent
• Ac
com
pany
the s
et-up
of t
he jo
int ve
ntur
e rela
tions
hip.
1•
At le
ast f
ive A
fgha
n fir
ms s
uppo
rted
to es
tablis
h jo
int ve
ntur
esDA
B, M
oF, M
oCI,
ACCI
, M
inistr
y of E
cono
my
1.2.
4. S
uppo
rt, th
roug
h pu
blic
inves
tmen
t, th
e esta
blish
men
t of n
ew p
roce
ssing
and
pack
aging
cen-
tres o
r the
upg
rading
of e
xistin
g on
es in
line
with
inter
natio
nal s
tanda
rds a
nd n
orm
s. Fo
llowi
ng ar
e ex
ampl
es o
f req
uirem
ents :
• Pl
ace (
room
), wi
th a m
arble
floor
and t
iled w
alls,
for s
torin
g / so
rting
flowe
rs an
d sep
aratio
n of s
pic-
es, a
rrang
ed w
ith ta
bles
and
chair
s.•
Dryin
g an
d ste
riliza
tion
room
for s
affro
n sp
ices w
ith an
area
of 2
5m2.
• St
orag
e for
drie
d sa
ffron
with
an ar
ea o
f 30m
2 an
d arr
ange
d wi
th sc
affol
ding
.•
Labo
rator
y roo
m fo
r phy
sical,
chem
ical,
steril
e and
micr
obio
logi
cal t
ests
with
an ar
ea o
f 50m
2.
2•
At le
ast 5
–10
new
proc
essin
g an
d pa
ckag
ing
cent
res
esta
blis
hed
/ up
grad
ed
MoF
, MAI
L, M
oCI,
ANSA
, AC
CI
46
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / SAFFRON SECTOR 2018-2022 ]
Stra
tegi
c ob
ject
ive
1 : in
crea
se p
rodu
ctio
n an
d pr
oduc
tivity
thro
ugh
impr
oved
sup
ply-
side
con
ditio
ns.
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
etLe
ad a
nd s
uppo
rting
im
plem
ente
rs
2017
2018
2019
2020
2021
2022
1.2.
Sup
port
the
scali
ng u
p of
bo
th fa
rmin
g an
d pr
oces
sing
oper
atio
ns.
1.2.
5. Im
prov
e the
inve
stmen
t clim
ate an
d de
velo
p pr
omot
iona
l mate
rials.
Deve
lop
a spe
cific
and
prac
tical
inves
tmen
t pro
mot
ion
strate
gy fo
r saff
ron,
inclu
ding
pro
mot
iona
l m
ateria
ls an
d pr
ogram
mes
for i
nves
tor t
argeti
ng, r
etent
ion
and
expa
nsio
n. Th
is co
uld
be d
esig
ned
with
an em
phas
is on
elem
ents
such
as su
pplie
r dev
elopm
ent a
nd jo
int ve
ntur
e matc
hmak
ing.
Deve
lop
an in
cent
ive p
acka
ge fo
r inv
esto
rs wh
ich co
uld
inclu
de :
• Th
e rev
ision
of p
olici
es to
supp
ort l
ocal
inves
tors.
• Th
e pro
visio
n of
infra
struc
tural
ince
ntive
s, su
ch as
land
for l
ease
at af
ford
able
rates
.•
The p
rovis
ion
of ta
x inc
entiv
es fo
r inv
esto
rs in
saffr
on p
roce
ssing
.La
unch
a tar
geted
initi
ative
to at
tract
inves
tmen
t in
the s
ecto
r.
• De
velo
p a s
hortl
ist o
f inv
estm
ent a
ttrac
tion
oppo
rtunit
ies.
• De
velo
p and
impl
emen
t sec
tor-s
pecif
ic inv
estm
ent p
rom
otion
prog
ramm
es ta
rgeti
ng lo
cal, r
egion
al an
d int
erna
tiona
l inv
esto
rs.•
Crea
te pr
omot
iona
l mate
rials,
suc
h as
mar
ket f
actsh
eets,
and
awa
rene
ss-ra
ising
pro
gram
mes
to
prom
ote i
nves
tmen
t in
the s
ecto
r.•
Orga
nize i
nves
tmen
t miss
ions a
nd ex
hibiti
ons (
e.g.
Italy,
Spa
in, In
dia )
to sh
owca
se se
ctor p
oten
tial
and
facili
tate i
nves
tmen
t opp
ortu
nities
.
2•
Inves
tmen
t pro
mot
ion st
rateg
y is d
e-ve
lope
d an
d ro
lled
out
• At
leas
t 10–
15 in
vestm
ent a
ttrac
tion
oppo
rtunit
ies id
entif
ied•
Two
secto
r-spe
cific
inves
tmen
t pro
-m
otion
prog
ramm
es es
tablis
hed (
one
targe
ting
natio
nal i
nves
tors
and
the
othe
r tar
getin
g in
tern
ation
al in
ves-
tors
). De
velo
p co
rresp
ondi
ng p
ro-
mot
iona
l mate
rial p
er p
rogr
amm
e•
Four
inve
stmen
t miss
ions
org
anize
d pe
r yea
r
MoF
, D
AB, A
fgha
nistan
Ind
epen
dent
Land
Aut
horit
y ( A
razi ),
MoC
I, M
inistr
y of
Econ
omy,
ACCI
1.3.
Des
ign,
sup
port
and
pro-
mot
e ne
w an
d ex
istin
g cr
edit
sche
mes
( spe
cifica
lly fo
r wo
men
farm
ers )
to in
crea
se
finan
cial a
cces
s fo
r saf
fron
prod
uctio
n.
1.3.
1. C
ondu
ct wo
rksho
ps to
sens
itize
ban
k offi
cers
to b
oth
secto
r and
wom
en’s
finan
cial n
eeds
and
enco
urag
e the
m to
dev
elop
new
loan
instr
umen
ts. Th
e loa
n ter
ms a
nd co
nditi
ons s
houl
d be
acco
rd-
ing to
the a
bilit
y of t
he fa
rmer
s. Co
nsid
er p
rovid
ing lo
ng-te
rm lo
ans o
f at l
east
for t
hree
years
with
a lo
wer i
ntere
st rat
e.
2•
Two
works
hops
cond
ucted
per
year
DAB,
MoF
, MAI
L, AC
CI an
d AW
CCI
1.3.
2. A
ssist
ban
ks in
dev
elopi
ng fi
nanc
ial p
rodu
cts ta
ilored
to fe
male
valu
e cha
in sta
keho
lder
s and
in
com
plian
ce w
ith Is
lamic
belie
fs. D
esig
n lo
ans w
hich
acco
mm
odate
the s
affro
n gr
owing
seas
on
and
addr
ess s
ocial
and
cultu
ral b
arrier
s to
wom
en ( e
.g. l
imite
d int
erac
tion
and
mob
ility )
. Exp
lore
the
poss
ibili
ty of
dev
elopi
ng m
obile
fina
ncial
servi
ces t
o ad
dres
s lim
ited
mob
ility.
2•
Ten
succ
essf
ul a
gric
ultu
ral l
oans
pe
r yea
rDA
B, M
oF, M
AIL,
ABA,
ACC
I
1.3.
3. Li
nk w
omen
farm
ers a
nd w
omen
farm
ers’
asso
ciatio
ns w
ith fi
nanc
ial in
stitu
tions
to en
hanc
e th
e flo
w of
info
rmati
on o
n av
ailab
le fin
ancia
l pro
ducts
. Link
s to
be cr
eated
thro
ugh
aware
ness
-rais-
ing p
rogr
amm
es b
y cred
it pr
ovid
ers t
hrou
gh fe
male
-onl
y com
mun
ity-le
vel w
orks
hops
, deli
vered
by
wom
en ag
ents.
2•
Ten
fem
ale-
only
wo
rksh
ops
cond
ucted
ACCI
, AW
CCI,
MoC
I, M
oF,
MAI
L, AB
A
1.3.
4. S
treng
then
exist
ing fi
nanc
ial se
rvice
s targ
eting
fem
ale fa
rmer
s.
• M
ap a
nd e
valu
ate th
e pe
rform
ance
of e
xistin
g fin
ancia
l ser
vices
for w
omen
in th
e sa
ffron
sec
tor
( e.g
. Zah
ra ).
• In
colla
borat
ion
with
key s
takeh
olde
rs, d
evelo
p an
d im
plem
ent m
easu
res to
stren
gthe
n an
d/or
ex-
pand
exist
ing fi
nanc
ial se
rvice
s, in
acco
rdan
ce w
ith th
e per
form
ance
stud
y.
2•
Map
ping
and a
sses
smen
t con
ducte
d•
Mea
sures
integ
rated
in in
itiati
ves
DAB,
MoF
, MAI
L, AW
CCI,
ABA
1.3.
5. C
ondu
ct aw
arene
ss-ra
ising
wor
ksho
ps to
pro
mot
e exis
ting
finan
cial s
ervic
es. T
hrou
gh a
se-
ries o
f wor
ksho
ps, r
adio
pro
gram
mes
and
the d
evelo
pmen
t of o
utrea
ch m
ateria
l suc
h as
bro
chur
es,
crea
te aw
arene
ss am
ong
farm
ers a
nd lo
cal c
omm
uniti
es o
f rele
vant
and
avail
able
finan
cial s
ervic
es
for t
he se
ctor i
n Isl
amic
bank
ing.
3•
Two
cam
paig
ns c
arried
out
per
yea
r in
key p
rovin
ces,
includ
ing H
erat
and
Farya
b
MAI
L, A
BA, D
AB, A
CCI
[ PLAN OF ACTION ]
47
Stra
tegi
c ob
ject
ive
2 : S
treng
then
the
orga
niza
tion
of th
e se
ctor
’s e
cosy
stem
thro
ugh
grea
ter c
olla
bora
tion
and
effic
ienc
y.
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
etLe
ad a
nd s
uppo
rting
im
plem
ente
rs
2017
2018
2019
2020
2021
2022
2.1.
Rein
forc
e se
ctor
coo
rdi-
natio
n to
favo
ur p
rodu
ctiv-
ity e
nhan
cem
ent a
nd p
olicy
ad
voca
cy.
2.1.
1. S
et up
a hig
h-lev
el pu
blic–
priva
te pa
rtner
ship
plat
form
( e.g
. Afg
hanis
tan sa
ffron
boa
rd ) t
o rep
re-se
nt th
e int
erests
of t
he in
dustr
y, wi
th a
view
to en
hanc
ing se
ctor p
rodu
ctivit
y and
advo
cacy
. The
par
tner-
ship
plat
form
shou
ld co
mpr
ise re
pres
entat
ives o
f pub
lic ag
encie
s, far
mer
s’ as
socia
tions
and
lead
expo
rt-ing
firm
s. It
shou
ld b
uild
on th
e wor
k of t
he S
affro
n De
velo
pmen
t Nati
onal
Com
mitt
ee ( M
AIL )
.
1•
High
-leve
l pub
lic–p
rivate
par
tner-
ship
plat
form
estab
lishe
dAC
CI, M
oCI,
MAI
L, Sa
ffron
De
velo
pmen
t Nati
onal
Com
mitt
ee, s
ecto
r ass
ocia-
tions
, Hig
h Ec
onom
ic Co
uncil
, M
inistr
y of E
cono
my
2.1.
2. Th
e par
tner
ship
plat
form
cont
ribut
es to
secu
ring
impl
emen
tatio
n, m
obili
zing
resou
rces
and
advo
-ca
ting
for t
his N
ES S
affro
n St
rateg
y, an
d pu
ts in
plac
e the
pro
per m
echa
nism
s to
mon
itor a
nd au
dit i
ts ex
ecut
ion.
1•
Mon
itorin
g m
echa
nism
des
igne
d an
d im
plem
ented
ACCI
, MoC
I, M
AIL,
Saffr
on
Deve
lopm
ent N
ation
al Co
mm
ittee
, sec
tor a
ssoc
iatio
ns2.
1.3.
Mem
bers
of th
e hig
h-lev
el pa
rtner
ship
plat
form
are s
uppo
rted
to b
uild
a com
mon
pos
ition
on
key
issue
s affe
cting
the s
ecto
r and
buil
d th
e nec
essa
ry ad
voca
cy to
supp
ort r
equir
ed p
olicy
or r
egul
ation
ch
ange
s.
2•
At le
ast f
ive d
ocum
ents
prod
uced
to
conv
ey co
mm
on po
sitio
n ( de
c-lar
ation
s, wh
ite p
aper
s, etc
. )
ACCI
, MoC
I, M
AIL,
Saffr
on
Deve
lopm
ent N
ation
al Co
mm
ittee
, sec
tor a
ssoc
iatio
ns,
Mini
stry o
f Eco
nom
y2.
1.4.
Crea
te tec
hnica
l com
miss
ions
with
in th
e hig
h-lev
el pl
atfor
m, t
o ov
erse
e the
dev
elopm
ent,
impl
e-m
entat
ion
and
oper
ation
of t
echn
ical a
ctivit
ies w
ithin
the f
ield
of th
eir sp
ecifi
c com
miss
ion.
Estab
lish
two
techn
ical c
omm
issio
ns o
n th
e fol
lowi
ng ar
eas :
• Te
chnic
al co
mm
issio
n on
bes
t farm
ing p
ractic
es an
d qu
ality
man
agem
ent (
ISO
certi
ficati
on, e
tc. ).
• Te
chni
cal c
omm
issio
n on
sale
s ( in
clud
ing
pric
es ) a
nd m
arke
ting
( mar
ketin
g bo
ard ).
The
com
mit-
tee sh
ould
inclu
de tr
ader
s, ex
porte
rs an
d ex
perts
on
mark
eting
and
inter
natio
nal r
elatio
ns fo
r saff
ron.
2•
Tech
nica
l com
mis
sion
on
best
farm
ing pr
actic
es an
d qua
lity m
an-
agem
ent s
et up
• Te
chni
cal c
omm
issio
n on
sal
es
and
mark
eting
set u
p
MAI
L ( A
RIA )
, ACC
I, M
oCI,
ANSA
2.1.
5. B
ased
on
stand
ards f
or sk
ills d
evelo
pmen
t set
thro
ugh
the e
stabl
ished
mas
ter tr
aining
pro
gram
me,
the p
latfo
rm co
ordi
nates
the d
evelo
pmen
t of c
urric
ula a
nd tr
aining
mod
ules
and
mate
rials
thro
ugh
its
techn
ical c
omm
issio
n on
bes
t farm
ing p
ractic
es an
d qu
ality
man
agem
ent.
The o
perat
ion
man
ual i
s a li
ving
docu
men
t and
will
be a
dopt
ed, m
odifi
ed o
r exp
ande
d fro
m th
e lea
rning
du
ring
impl
emen
tatio
n.
1•
Cour
se cu
rricu
la de
velo
ped,
alon
g wi
th tr
aining
mate
rials
ACCI
, MoC
I, M
AIL (
ARIA
), Sa
ffron
Dev
elopm
ent N
ation
al Co
mm
ittee
2.2.
Stre
ngth
en s
ecto
r as
socia
tions
.2.
2.1.
Carr
y out
an in
stitu
tiona
l ben
chm
arking
pro
gram
me f
or se
ctor a
ssoc
iatio
ns to
impr
ove t
heir
perfo
r-m
ance
by m
easu
ring
the e
ffecti
vene
ss an
d eff
icien
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
erna
nce,
resou
rces
and
proc
esse
s, pr
oduc
ts an
d se
r-vic
es, a
nd re
sults
mea
surem
ent.
2•
Inst
itutio
nal b
ench
mar
king
pro-
gram
me c
arried
out
and
prov
iding
tec
hnica
l cap
acity
to a
t lea
st fiv
e se
ctor a
ssoc
iatio
ns
MAI
L ( A
RIA )
, ACC
I
2.2.
2. C
apac
itate
farm
ers’
asso
ciatio
ns le
ader
s to
enha
nce t
heir
leade
rship
skill
s and
advo
cate
for t
he
secto
r.Im
part
coac
hing
to fa
rmer
s’ as
socia
tions
to en
hanc
e the
ir lea
dersh
ip an
d m
anag
emen
t skil
ls an
d to
pro
-vid
e mem
ber-o
rient
ed se
rvice
s.Ca
pacit
ate le
ader
s to
reduc
e the
sour
cing
costs
of a
ssoc
iatio
n m
embe
rs th
roug
h co
llecti
ve so
urcin
g of
no
n-co
mpe
titive
inpu
ts ( i.
e. bu
lk or
ders
to en
sure
the b
est p
ossib
le pr
ices f
or al
l play
ers )
.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
as th
e Go
vern
men
t and
fina
ncial
insti
tutio
ns.
2•
Two
train
ing
work
shop
s pe
r yea
r ta
rget
ing
lead
ers
of f
arm
ers’
as
socia
tions
MAI
L, A
CCI,
Mini
stry o
f Hig
her
Educ
ation
( MoH
E )
2.2.
3. D
evelo
p a p
ilot p
rojec
t targ
eting
wom
en’s
asso
ciatio
ns to
stren
gthe
n th
eir p
ositi
on in
the s
ecto
r.Im
part
wom
en-to
-wom
en co
achin
g on
lead
ersh
ip, b
usine
ss m
anag
emen
t and
mark
eting
.Ca
pacit
ate fe
male
lead
ers o
f ass
ociat
ions
to ad
voca
te fo
r the
pro
visio
n of
mor
e tec
hnica
l trai
nings
to
wom
en.
Reinf
orce
their
capa
cities
in fu
ndrai
sing
and
resou
rce m
obili
zatio
n, d
irecti
ng p
ublic
and
dono
r fun
ds to
-wa
rds t
he es
tablis
hmen
t of p
roce
ssing
and
pack
aging
cent
res fo
r wom
en, a
mon
g ot
hers.
3•
Pilo
t pro
ject
dev
elop
ed a
nd o
p-er
ation
al, b
enefi
ting
at lea
st th
ree
wom
en’s
asso
ciatio
ns in
the s
ector
AWCC
I, AC
CI, M
inistr
y of
Wom
en’s
Affai
rs
48
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / SAFFRON SECTOR 2018-2022 ]
Stra
tegi
c ob
ject
ive
2 : S
treng
then
the
orga
niza
tion
of th
e se
ctor
’s e
cosy
stem
thro
ugh
grea
ter c
olla
bora
tion
and
effic
ienc
y.
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
etLe
ad a
nd s
uppo
rting
im
plem
ente
rs
2017
2018
2019
2020
2021
2022
2.3.
Dev
elop
and
capi
taliz
e on
regi
onal
/ int
erna
tiona
l co
oper
atio
n to
impr
ove
re-
sear
ch o
utco
mes
.
2.3.
1. E
nhan
ce p
olicy
effo
rts an
d m
echa
nism
s to
enco
urag
e cro
ss-c
ount
ry an
d int
erna
tiona
l col
labor
a-tio
n. S
treng
then
exist
ing /
deve
lop
new
links
for s
outh
–sou
th co
oper
ation
in th
e saff
ron
secto
r.Ide
ntify
inter
natio
nal p
ublic
secto
r and
rese
arch
instit
utio
ns al
ready
colla
borat
ing / o
perat
ing in
the s
affro
n se
ctor i
n Af
ghan
istan
. Con
duct
a quic
k ass
essm
ent o
f cur
rent a
ctivit
ies an
d rei
nfor
ce / e
xpan
d rel
evan
t ac-
tiviti
es as
requ
ired.
2•
Ten
instit
utio
ns id
entif
ied•
Initia
tives
of i
dent
ified
insti
tutio
ns
revise
d•
Reco
mm
enda
tions
dev
elope
d an
d int
egrat
ed
ACCI
, MoC
I ( co
mm
ercial
atta-
chés
), M
AIL,
Mini
stry o
f For
eign
Affai
rs ( M
oFA )
2.3.
2. A
t the
inter
natio
nal l
evel,
crea
te pa
rtner
ship
s with
gov
ernm
ents,
regi
onal
orga
nizati
ons,
acad
emia
and
the p
rivate
secto
r for
the m
utua
l sha
ring
of kn
owled
ge, s
kills
and
techn
ical k
now-
how,
and
exch
ange
of
dev
elopm
ent s
olut
ions
relat
ed to
saffr
on ( e
.g. M
oroc
co, I
ndia )
.
3•
At le
ast t
wo m
emor
andu
ms o
f un-
ders
tandi
ng w
ith in
terna
tiona
l in-
stitu
tions
sign
ed
ACCI
, MoC
I, M
AIL (
ARIA
), M
oFA
2.3.
3. E
nhan
ce sh
aring
of i
nfor
mati
on o
n sa
ffron
-focu
sed
resea
rch.
• Co
nduc
t an
inven
tory
of e
xistin
g res
earc
h pr
ojec
ts un
derta
ken
by re
levan
t stak
ehol
ders
– e.g
. univ
ersi-
ties,
priva
te co
mpa
nies –
on
saffr
on p
rodu
ction
and
agro
nom
ic pr
actic
es at
the
natio
nal a
nd re
gion
al /
inter
natio
nal l
evels
( e.g
. Ind
ia, Is
lamic
Repu
blic
of Ir
an, M
oroc
co ).
• Di
ssem
inate
resea
rch f
inding
s and
prov
ide a
cces
s to r
eleva
nt st
akeh
olde
rs th
roug
h a va
riety
of m
edium
s ( fa
rmer
field
scho
ols,
exten
sion
servi
ces a
nd ra
dio
prog
ramm
es, a
mon
g ot
hers
).
2•
Deve
lop a
resea
rch da
tabas
e ava
il-ab
le to
secto
r stak
ehol
ders
• Tw
o an
nual
works
hops
org
anize
d tar
getin
g farm
er fie
ld sc
hool
facili-
tator
s and
exten
sion
servi
ces p
ro-
vider
s to
upd
ate th
em o
n se
ctor-
focu
sed
resea
rch
deve
lopm
ents
ACCI
, MoC
I, M
AIL (
ARIA
), M
oHE
2.3.
4. B
ased
on
inven
tory,
cond
uct a
gap
analy
sis o
n res
earc
h ne
eds f
or th
e saff
ron
secto
r and
impl
e-m
ent a
saffr
on re
searc
h an
d de
velo
pmen
t age
nda i
n co
llabo
ratio
n wi
th ke
y stak
ehol
ders,
such
as re
levan
t un
iversi
ties (
e.g.
Her
at Un
iversi
ty ) an
d th
e for
thco
ming
Saff
ron
Instit
ute
• Ide
ntify
rese
arch
gaps
on
saffr
on st
udies
. Top
ics ca
n inc
lude
: –
Wate
r and
soil
man
agem
ent ;
–Ide
ntifi
catio
n of
agro
ecol
ogica
l area
s at t
he n
ation
al lev
el wi
th o
ptim
um c
harac
terist
ics ( e
.g. w
ater,
soil,
wea
ther
) for
hig
h-qu
ality
saffr
on p
rodu
ction
; –
Tech
nolo
gica
l inn
ovati
ons a
cros
s the
valu
e cha
in.•
In co
llabo
ration
with
iden
tified
rese
arch a
nd de
velop
men
t pro
vider
s, cre
ate a
resea
rch ag
enda
, prio
ritizi
ng
the m
ost u
rgen
t top
ics. Im
plem
ent t
he re
searc
h age
nda a
nd br
ing id
entif
ied /
deve
lope
d tec
hnol
ogy a
nd
know
ledge
to th
e saff
ron v
alue c
hain
throu
gh up
scali
ng in
dem
onstr
ation
activ
ities a
nd fla
gship
proj
ects.
3•
Rese
arch
gap
analy
sis co
nduc
ted•
Rese
arch
agen
da d
evelo
ped
MAI
L, A
CCI,
MoH
E, M
inistr
y of
Edu
catio
n, A
RIA,
Her
at Un
iversi
ty
2.3.
5. S
treng
then
rese
arch–
exten
sion–
farm
er li
nks t
hrou
gh d
issem
inatio
n of
new
tech
nolo
gy to
farm
ers,
bette
r tak
ing in
to ac
coun
t loc
al sp
ecifi
cities
. Bas
ed o
n th
e dev
elope
d inv
ento
ry of
saffr
on re
searc
h in
the
coun
try, e
stabl
ish m
echa
nism
s for
cont
inuou
s diss
emina
tion
of re
searc
h fin
ding
s to
relev
ant s
takeh
old-
ers.
Mec
hanis
ms c
an in
clude
:De
mon
strati
ons f
or fa
rmer
s
• Fl
agsh
ip p
rojec
ts•
Field
day
s•
Perm
anen
t exh
ibiti
ons
• Sh
ort c
ourse
s, ha
nds-
on tr
aining
• Ex
tensio
n se
rvice
s•
Amon
g ot
hers,
inclu
ding
the d
evelo
pmen
t of c
omm
unica
tion
mate
rials
such
as fa
ct sh
eets,
pos
ters.
3•
Diss
emina
tion m
echa
nism
s esta
b-lis
hed,
inclu
ding
dev
elopm
ent o
f co
mm
unica
tion
mate
rial
• Te
n res
earch
stud
ies co
nduc
ted on
di
fferen
t top
ics•
Five p
ilot d
emon
strati
ons p
er ye
ar•
Two
flags
hip p
rojec
ts pe
r yea
r•
Two t
rainin
gs of
train
ers c
arried
out
per y
ear t
o di
ssem
inate
rese
arch
result
s to e
xtens
ion se
rvice
s age
nts
MAI
L, A
CCI,
and
MoH
E
2.3.
6. C
ondu
ct ex
tensiv
e ada
ptati
on st
udies
in ag
ro- a
nd su
b-ec
ozon
es to
iden
tify s
uitab
le are
as fo
r saf-
fron
prod
uctio
n in
Afgh
anist
an.
3•
Five
ada
ptati
on s
tudi
es a
re c
on-
duct
ed a
nd fi
ve p
ilot i
nitia
tives
de
velo
ped
acco
rding
ly
MAI
L
2.3.
7. A
sses
s opt
ions
for s
uppo
rting
the d
evelo
pmen
t of s
pecia
lized
cour
ses (
shor
t-ter
m ) a
s well
as
Mas
ters a
nd P
hD le
vel c
ourse
s in
Afgh
an u
niver
sities
( e.g
. Kab
ul U
niver
sity,
Herat
Univ
ersit
y ), f
ocus
-ing
on
saffr
on st
udies
. As a
shor
t-ter
m o
ptio
n, in
trodu
ce sa
ffron
educ
ation
in th
e cur
ricul
a of v
ocati
onal
scho
ols f
ocus
ing o
n ag
ricul
ture.
3•
Mod
ule
deve
lope
d an
d int
egrat
ed
at 10
voca
tiona
l sch
ools
/ ins
titutes
MAI
L ( A
RIA )
, MoH
E, M
oCI
[ PLAN OF ACTION ]
49
Stra
tegi
c ob
ject
ive
2 : S
treng
then
the
orga
niza
tion
of th
e se
ctor
’s e
cosy
stem
thro
ugh
grea
ter c
olla
bora
tion
and
effic
ienc
y.
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
etLe
ad a
nd s
uppo
rting
im
plem
ente
rs
2017
2018
2019
2020
2021
2022
2.4.
Facil
itate
acc
ess
to
high
-qua
lity c
orm
s an
d bu
lbs
at c
ompe
titive
pric
es.
2.4.
1. C
ondu
ct a s
tudy
to es
tablis
h th
e effe
ctive
dem
and
for s
affro
n co
rms p
er se
ason
.
• Th
e stu
dy sh
ould
inclu
de m
edium
-to-lo
ng te
rm fo
recas
ting.
The s
tudy
will
serve
as a
base
line s
tudy
to
feed
into
the d
ue d
ilige
nce r
equir
ed fo
r oth
er ac
tiviti
es.
2•
One s
tudy c
ondu
cted a
nd di
ssem
i-na
ted to
key s
takeh
olde
rsM
AIL,
Mini
stry o
f Eco
nom
y
2.4.
2. M
onito
r and
lend
supp
ort t
o th
e MAI
L init
iative
to d
istrib
ute 5
00 to
ns o
f saff
ron
corm
s in
30 p
rov-
inces
acro
ss th
e cou
ntry.
1•
Estab
lish
a m
onito
ring
fram
ewor
k fo
r saff
ron
corm
s dist
ribut
ion
MAI
L
2.4.
3. In
colla
borat
ion
with
rese
arch
instit
utio
ns, l
aunc
h an
initi
ative
to p
rodu
ce an
d m
ultip
ly be
tter-q
ual-
ity co
rms.
• Co
nduc
t a te
chnic
al stu
dy to
asse
ss m
ultip
licati
on m
ethod
s for
goo
d-qu
ality
corm
s.•
Asse
ss th
e fea
sibilit
y of e
stabl
ishing
a co
rm ba
nk in
a ke
y loc
ation
. The
corm
bank
will
main
tain a
certa
in lev
el of
stoc
k and
ensu
re av
ailab
ility
of g
raded
qua
lity c
orm
s for
farm
ers.
• Es
tablis
h pub
lic–p
rivate
partn
ersh
ips w
herei
n see
d ( co
rm ) f
irms w
ill be
invit
ed to
inve
st in
a cor
m m
ul-tip
licati
on p
rogr
amm
e.•
Unde
rtake
a qu
ality
corm
mul
tiplic
ation
pro
gram
me t
hrou
gh p
ilot i
nitiat
ives i
n Her
at an
d in
othe
r ide
nti-
fied
areas
with
pot
entia
l for
hig
h-qu
ality
saffr
on p
rodu
ction
.•
Pilot
initi
ative
s can
take
the f
orm
of p
ublic
–priv
ate n
urse
ries.
• De
velo
p de
mon
strati
on p
lots
linke
d to
the
farm
er fi
eld s
choo
l init
iative
to e
nsur
e co
rrect
plan
ting
and
harve
st m
ethod
s of q
ualit
y cor
ms.
Crea
te de
mon
strati
on p
lots
to en
able
farm
ers t
o un
derst
and
the b
en-
efits
of p
lantin
g hig
her-q
ualit
y cor
ms.
• St
rengt
hen
exist
ing c
orm
mul
tiplic
ation
initi
ative
s. Co
nduc
t an
asse
ssm
ent b
eforeh
and
to id
entif
y spe
-cif
ic ne
eds o
f cur
rent i
nitiat
ives.
2•
Tech
nical
study
cond
ucted
• Pr
opos
al fo
r the
esta
blish
men
t of
a cor
m b
ank d
evelo
ped
• Te
n pilo
t initia
tives
for c
orm
mult
i-pli
catio
n in H
erat,
Farya
b and
othe
r ke
y area
s•
Thirt
y de
mon
strati
on p
lots
estab
-lis
hed p
er ye
ar, on
meth
ods t
o ob-
tain
highe
r-qua
lity c
orm
s•
Asse
ssm
ent o
f cur
rent c
orm
mul
-tip
licati
on in
itiati
ves
unde
rtake
n an
d cor
rectiv
e mea
sures
integ
rated
MAI
L
2.4.
4. P
rovid
e tec
hnica
l sup
port
to st
rengt
hen
/ dev
elop
a sup
ply c
hain
of se
ed co
mpa
nies t
o ge
t in-
volve
d in
saffr
on co
rm p
rodu
ction
.3
• Fiv
e tec
hnica
l stud
ies to
deve
lop a
su
pply
chain
of se
ed co
mpa
nies i
n ke
y pro
vince
s of H
erat,
Farya
b and
ot
her s
electe
d lo
catio
ns
MAI
L, A
NSA
50
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / SAFFRON SECTOR 2018-2022 ]
Stra
tegi
c ob
ject
ive
3 : S
pur m
arke
t pen
etra
tion
and
deve
lopm
ent t
hrou
gh in
tegr
ated
qua
lity
man
agem
ent,
pack
agin
g an
d br
andi
ng o
pera
tions
.Op
erat
iona
l obj
ectiv
esAc
tivitie
sPr
iorit
y1=
high
2=
med
3=
low
Impl
emen
tatio
n pe
riod
Targ
etLe
ad a
nd s
uppo
rting
im
plem
ente
rs
2017
2018
2019
2020
2021
2022
3.1.
Impr
ove
the
abilit
y of
the
sect
or to
mee
t int
erna
tiona
l qu
ality
sta
ndar
ds.
3.1.
1. C
ondu
ct a r
evisi
on o
f exis
ting
inter
natio
nal m
arket
man
dato
ry req
uirem
ents
and
iden
tify i
nsti-
tutio
nal a
nd en
terpr
ise ch
allen
ges i
n m
eetin
g th
ese s
tanda
rds,
espe
cially
rega
rding
com
plian
ce w
ith
hygi
ene,
trace
abili
ty, re
liabi
lity a
nd co
nsist
ency
stan
dard
s.
1•
At le
ast 5
–10
key
mar
kets
are a
s-se
ssed
( i.e.
mark
et req
uirem
ents )
• At
leas
t 20–
50 s
affro
n co
mpa
nies
are
surve
yed
MoC
I, AC
CI, A
NSA
3.1.
2. C
ondu
ct tra
ining
s ( th
roug
h th
e mas
ter tr
aining
pro
gram
me i
nitiat
ive ) f
or ke
y sec
tor s
takeh
olde
rs ( p
rodu
cers,
expo
rters
) to
facili
tate t
he im
plem
entat
ion
of st
anda
rds a
nd d
issem
inate
key i
nfor
mati
on.
Supp
ort e
xistin
g ini
tiativ
es, e
.g. C
ARD-
F, fo
cuse
d on
train
ing p
roce
ssing
enter
prise
s in
stand
ards o
f pr
oces
sing
techn
olog
y
1•
Two
train
ings
con
duct
ed p
er y
ear
thro
ugh
each
farm
er fi
eld sc
hool
M
oHE,
Mini
stry o
f Edu
catio
n,
ANSA
, MAI
L ( AR
IA )
3.1.
3. E
stabl
ish te
sting
labo
rator
ies fo
r qua
lity c
ontro
l and
certi
ficati
on.
• As
sess
exist
ing la
borat
ory f
acili
ties f
or q
ualit
y con
trol a
nd ce
rtific
ation
.De
velo
p a s
tate o
f the
art l
abor
atory,
sam
pling
and
testin
g fac
ilitie
s in
Herat
.
2•
One
labo
rato
ry f
acili
ty (
re )
estab
lishe
dAN
SA, M
AIL
3.1.
4. A
ssist
saffr
on co
mpa
nies t
o ge
t ISO
certi
ficati
on th
roug
h th
e pro
visio
n of
tech
nical
supp
ort.
2•
Twen
ty co
mpa
nies
rece
ive te
chni
-ca
l sup
port
to g
et IS
O ce
rtific
ation
ANSA
, MAI
L
3.1.
5. Le
nd su
ppor
t to
the M
oCI in
itiati
ve to
issu
e vol
untar
y saff
ron
quali
ty ce
rtific
ates a
s par
t of t
he
Natio
nal S
affro
n De
velo
pmen
t Pro
gram
me.
2•
Fram
ewor
k to
issue
saffr
on q
ualit
y ce
rtific
ates i
s esta
blish
edAN
SA, M
oCI
3.1.
6. D
evelo
p an
Afg
han
saffr
on q
ualit
y stam
p.
• Co
mm
unica
te th
e as
socia
ted re
quire
men
ts, in
cent
ives
and
bene
fits
that
acco
mpa
ny th
e sta
mp
to
expo
rters.
Laun
ch a
stron
g ca
mpa
ign
to p
rom
ote t
he q
ualit
y stam
p in
inter
natio
nal m
arkets
.
3•
Afgh
an s
affro
n qu
ality
sta
mp
deve
lope
d•
Two i
nfor
mati
on se
ssio
ns ta
rgeti
ng
small
and m
edium
-size
d ente
rpris
-es
( SM
Es ) p
er ye
ar•
One a
nnua
l cam
paig
n ro
lled
out i
n fo
ur ke
y targ
et m
arkets
ANSA
, MAI
L, M
oCI
3.1.
7. Im
plem
ent a
trac
eabi
lity s
ystem
thro
ugh
barc
odes
for t
he sa
ffron
indu
stry.
• Co
nduc
t a fe
asib
ility
study
to id
entif
y wid
ely u
sed
barc
odes
in th
e saff
ron
indus
try an
d to
asse
ss re
-qu
irem
ents
for t
he ad
optio
n of
barc
ode t
echn
olog
y in
the s
affro
n ind
ustry
.Cr
eate
links
with
key t
echn
ical i
nstit
utio
ns an
d pr
ovid
ers t
o req
uest
techn
ical s
uppo
rt fo
r crea
ting
bar-
code
s and
verif
ying
the p
rint q
ualit
y of b
arcod
es.
3•
One f
easib
ility
study
cond
ucted
• A
trace
abilit
y sys
tem is
set in
plac
e an
d ap
plied
for s
affro
n
ANSA
, MAI
L, AC
CI, M
oCI
3.2.
Impr
ove
acce
ss to
pa
ckag
ing.
3.2.
1. C
ondu
ct a b
rief a
sses
smen
t of p
acka
ging
supp
liers
in th
e thr
ee p
rojec
t loc
ation
s, inv
olvin
g th
e fo
llowi
ng ac
tiviti
es :
• M
ap p
acka
ging
supp
liers
in th
e thr
ee lo
catio
ns w
ith a
com
preh
ensiv
e ass
essm
ent o
f the
ir ca
pacit
ies
to su
it sa
ffron
SM
Es th
roug
h fac
tory
visits
and
inter
views
.•
Asse
ss ch
allen
ges f
aced
by s
uppl
iers i
n ter
ms o
f sou
rcing
inpu
ts fo
r the
ir su
pply
chain
, and
tech
ni-ca
l and
fina
ncial
chall
enge
s.•
Base
d on
the
findi
ngs
of th
e du
e di
ligen
ce s
tudy
, pac
kagi
ng s
uppl
iers
will
be p
rovid
ed a
ssist
ance
ac
ross
their
supp
ly ch
ain. T
his ac
tivity
will
likely
invo
lve a
broa
der s
cope
to co
ver o
ther
secto
rs als
o.
2•
Map
ping
and
asse
ssm
ent a
re co
n-du
cted
in th
ree se
lected
loca
tions
• Fi
ve p
acka
ging
sup
plie
rs a
re
supp
orted
MoC
I, M
AIL,
ANS
A
3.2.
2. A
coho
rt of
pac
kagi
ng fi
rms w
ill b
e ind
ucted
in a
traini
ng p
rogr
amm
e inv
olvin
g tar
geted
train
ing
and
works
hops
rang
ing fr
om b
asic
/ awa
renes
s-rai
sing
to h
ighl
y spe
cializ
ed p
rogr
amm
es fo
r trai
ners,
ad
viser
s and
SM
Es, u
sing
the i
nter
natio
nally
-reco
gnize
d PA
CKit
mod
ules
( inc
ludi
ng m
ethod
olog
ies
and
tool
s ). S
elect
topi
cs w
ill in
clude
:
• Pa
ckag
ing re
gulat
ion
and
com
plian
ce•
Distr
ibut
ion
and
pack
aging
• Tra
ceab
ility,
bar
codi
ng an
d rad
io fr
eque
ncy i
dent
ifica
tion
• Pa
ckag
ing o
f targ
eted
secto
rs, in
cludi
ng sa
ffron
• Pa
ckag
ing d
esig
n pr
incip
les•
Sour
cing
of ra
w m
ateria
ls an
d th
eir q
ualit
y ass
uran
ce•
Pack
aging
mate
rials,
etc.
A sy
stem
of f
inanc
ial g
rants /
loan
s for
pac
kagi
ng co
mpa
nies t
o m
eet t
heir
oper
ation
al ex
pens
es an
d ca
pital
expe
nditu
res re
lated
to eq
uipm
ent a
nd fa
ciliti
es w
ill b
e crea
ted.
Chall
enge
s in
impo
rting
impo
rtant
raw
mate
rials
and
pack
aging
varie
ties w
ill b
e rev
iewed
, and
relat
ed
advo
cacy
effo
rts w
ill b
e und
ertak
en at
the o
fficia
l lev
el.
2•
Five
pac
kagi
ng f
irms
rece
ive
traini
ng•
Finan
cial g
rant /
loan
syste
m se
t up
and
oper
ation
al•
Revis
ion
of le
gal a
nd im
port
duty
fram
ewor
k for
impo
rting
pack
aging
m
ateria
ls. Po
licies
are (
re )fo
rmula
t-ed
, acc
ordi
ngly
ANSA
, MoC
I, AC
CI, M
inistr
y of
Pub
lic H
ealth
[ PLAN OF ACTION ]
51
Stra
tegi
c ob
ject
ive
3 : S
pur m
arke
t pen
etra
tion
and
deve
lopm
ent t
hrou
gh in
tegr
ated
qua
lity
man
agem
ent,
pack
agin
g an
d br
andi
ng o
pera
tions
.Op
erat
iona
l obj
ectiv
esAc
tivitie
sPr
iorit
y1=
high
2=
med
3=
low
Impl
emen
tatio
n pe
riod
Targ
etLe
ad a
nd s
uppo
rting
im
plem
ente
rs
2017
2018
2019
2020
2021
2022
3.1.
Impr
ove
the
abilit
y of
the
sect
or to
mee
t int
erna
tiona
l qu
ality
sta
ndar
ds.
3.1.
1. C
ondu
ct a r
evisi
on o
f exis
ting
inter
natio
nal m
arket
man
dato
ry req
uirem
ents
and
iden
tify i
nsti-
tutio
nal a
nd en
terpr
ise ch
allen
ges i
n m
eetin
g th
ese s
tanda
rds,
espe
cially
rega
rding
com
plian
ce w
ith
hygi
ene,
trace
abili
ty, re
liabi
lity a
nd co
nsist
ency
stan
dard
s.
1•
At le
ast 5
–10
key
mar
kets
are a
s-se
ssed
( i.e.
mark
et req
uirem
ents )
• At
leas
t 20–
50 s
affro
n co
mpa
nies
are
surve
yed
MoC
I, AC
CI, A
NSA
3.1.
2. C
ondu
ct tra
ining
s ( th
roug
h th
e mas
ter tr
aining
pro
gram
me i
nitiat
ive ) f
or ke
y sec
tor s
takeh
olde
rs ( p
rodu
cers,
expo
rters
) to
facili
tate t
he im
plem
entat
ion
of st
anda
rds a
nd d
issem
inate
key i
nfor
mati
on.
Supp
ort e
xistin
g ini
tiativ
es, e
.g. C
ARD-
F, fo
cuse
d on
train
ing p
roce
ssing
enter
prise
s in
stand
ards o
f pr
oces
sing
techn
olog
y
1•
Two
train
ings
con
duct
ed p
er y
ear
thro
ugh
each
farm
er fi
eld sc
hool
M
oHE,
Mini
stry o
f Edu
catio
n,
ANSA
, MAI
L ( AR
IA )
3.1.
3. E
stabl
ish te
sting
labo
rator
ies fo
r qua
lity c
ontro
l and
certi
ficati
on.
• As
sess
exist
ing la
borat
ory f
acili
ties f
or q
ualit
y con
trol a
nd ce
rtific
ation
.De
velo
p a s
tate o
f the
art l
abor
atory,
sam
pling
and
testin
g fac
ilitie
s in
Herat
.
2•
One
labo
rato
ry f
acili
ty (
re )
estab
lishe
dAN
SA, M
AIL
3.1.
4. A
ssist
saffr
on co
mpa
nies t
o ge
t ISO
certi
ficati
on th
roug
h th
e pro
visio
n of
tech
nical
supp
ort.
2•
Twen
ty co
mpa
nies
rece
ive te
chni
-ca
l sup
port
to g
et IS
O ce
rtific
ation
ANSA
, MAI
L
3.1.
5. Le
nd su
ppor
t to
the M
oCI in
itiati
ve to
issu
e vol
untar
y saff
ron
quali
ty ce
rtific
ates a
s par
t of t
he
Natio
nal S
affro
n De
velo
pmen
t Pro
gram
me.
2•
Fram
ewor
k to
issue
saffr
on q
ualit
y ce
rtific
ates i
s esta
blish
edAN
SA, M
oCI
3.1.
6. D
evelo
p an
Afg
han
saffr
on q
ualit
y stam
p.
• Co
mm
unica
te th
e as
socia
ted re
quire
men
ts, in
cent
ives
and
bene
fits
that
acco
mpa
ny th
e sta
mp
to
expo
rters.
Laun
ch a
stron
g ca
mpa
ign
to p
rom
ote t
he q
ualit
y stam
p in
inter
natio
nal m
arkets
.
3•
Afgh
an s
affro
n qu
ality
sta
mp
deve
lope
d•
Two i
nfor
mati
on se
ssio
ns ta
rgeti
ng
small
and m
edium
-size
d ente
rpris
-es
( SM
Es ) p
er ye
ar•
One a
nnua
l cam
paig
n ro
lled
out i
n fo
ur ke
y targ
et m
arkets
ANSA
, MAI
L, M
oCI
3.1.
7. Im
plem
ent a
trac
eabi
lity s
ystem
thro
ugh
barc
odes
for t
he sa
ffron
indu
stry.
• Co
nduc
t a fe
asib
ility
study
to id
entif
y wid
ely u
sed
barc
odes
in th
e saff
ron
indus
try an
d to
asse
ss re
-qu
irem
ents
for t
he ad
optio
n of
barc
ode t
echn
olog
y in
the s
affro
n ind
ustry
.Cr
eate
links
with
key t
echn
ical i
nstit
utio
ns an
d pr
ovid
ers t
o req
uest
techn
ical s
uppo
rt fo
r crea
ting
bar-
code
s and
verif
ying
the p
rint q
ualit
y of b
arcod
es.
3•
One f
easib
ility
study
cond
ucted
• A
trace
abilit
y sys
tem is
set in
plac
e an
d ap
plied
for s
affro
n
ANSA
, MAI
L, AC
CI, M
oCI
3.2.
Impr
ove
acce
ss to
pa
ckag
ing.
3.2.
1. C
ondu
ct a b
rief a
sses
smen
t of p
acka
ging
supp
liers
in th
e thr
ee p
rojec
t loc
ation
s, inv
olvin
g th
e fo
llowi
ng ac
tiviti
es :
• M
ap p
acka
ging
supp
liers
in th
e thr
ee lo
catio
ns w
ith a
com
preh
ensiv
e ass
essm
ent o
f the
ir ca
pacit
ies
to su
it sa
ffron
SM
Es th
roug
h fac
tory
visits
and
inter
views
.•
Asse
ss ch
allen
ges f
aced
by s
uppl
iers i
n ter
ms o
f sou
rcing
inpu
ts fo
r the
ir su
pply
chain
, and
tech
ni-ca
l and
fina
ncial
chall
enge
s.•
Base
d on
the
findi
ngs
of th
e du
e di
ligen
ce s
tudy
, pac
kagi
ng s
uppl
iers
will
be p
rovid
ed a
ssist
ance
ac
ross
their
supp
ly ch
ain. T
his ac
tivity
will
likely
invo
lve a
broa
der s
cope
to co
ver o
ther
secto
rs als
o.
2•
Map
ping
and
asse
ssm
ent a
re co
n-du
cted
in th
ree se
lected
loca
tions
• Fi
ve p
acka
ging
sup
plie
rs a
re
supp
orted
MoC
I, M
AIL,
ANS
A
3.2.
2. A
coho
rt of
pac
kagi
ng fi
rms w
ill b
e ind
ucted
in a
traini
ng p
rogr
amm
e inv
olvin
g tar
geted
train
ing
and
works
hops
rang
ing fr
om b
asic
/ awa
renes
s-rai
sing
to h
ighl
y spe
cializ
ed p
rogr
amm
es fo
r trai
ners,
ad
viser
s and
SM
Es, u
sing
the i
nter
natio
nally
-reco
gnize
d PA
CKit
mod
ules
( inc
ludi
ng m
ethod
olog
ies
and
tool
s ). S
elect
topi
cs w
ill in
clude
:
• Pa
ckag
ing re
gulat
ion
and
com
plian
ce•
Distr
ibut
ion
and
pack
aging
• Tra
ceab
ility,
bar
codi
ng an
d rad
io fr
eque
ncy i
dent
ifica
tion
• Pa
ckag
ing o
f targ
eted
secto
rs, in
cludi
ng sa
ffron
• Pa
ckag
ing d
esig
n pr
incip
les•
Sour
cing
of ra
w m
ateria
ls an
d th
eir q
ualit
y ass
uran
ce•
Pack
aging
mate
rials,
etc.
A sy
stem
of f
inanc
ial g
rants /
loan
s for
pac
kagi
ng co
mpa
nies t
o m
eet t
heir
oper
ation
al ex
pens
es an
d ca
pital
expe
nditu
res re
lated
to eq
uipm
ent a
nd fa
ciliti
es w
ill b
e crea
ted.
Chall
enge
s in
impo
rting
impo
rtant
raw
mate
rials
and
pack
aging
varie
ties w
ill b
e rev
iewed
, and
relat
ed
advo
cacy
effo
rts w
ill b
e und
ertak
en at
the o
fficia
l lev
el.
2•
Five
pac
kagi
ng f
irms
rece
ive
traini
ng•
Finan
cial g
rant /
loan
syste
m se
t up
and
oper
ation
al•
Revis
ion
of le
gal a
nd im
port
duty
fram
ewor
k for
impo
rting
pack
aging
m
ateria
ls. Po
licies
are (
re )fo
rmula
t-ed
, acc
ordi
ngly
ANSA
, MoC
I, AC
CI, M
inistr
y of
Pub
lic H
ealth
Stra
tegi
c ob
ject
ive
3 : S
pur m
arke
t pen
etra
tion
and
deve
lopm
ent t
hrou
gh in
tegr
ated
qua
lity
man
agem
ent,
pack
agin
g an
d br
andi
ng o
pera
tions
.Op
erat
iona
l obj
ectiv
esAc
tivitie
sPr
iorit
y1=
high
2=
med
3=
low
Impl
emen
tatio
n pe
riod
Targ
etLe
ad a
nd s
uppo
rting
im
plem
ente
rs
2017
2018
2019
2020
2021
2022
3.2.
Impr
ove
acce
ss to
pa
ckag
ing.
3.2.
3. Im
prov
e acc
ess t
o pa
ckag
ing eq
uipm
ent f
or sa
ffron
com
panie
s thr
ough
the d
evelo
pmen
t of a
sh
ared
servi
ce fa
cility
for p
acka
ging
.
• De
velo
p a pi
lot p
acka
ging
cent
re wh
ere pa
ckag
ing eq
uipm
ent c
ould
be es
tablis
hed a
s a sh
ared f
acil-
ity fo
r farm
ers’
orga
nizati
ons t
o us
e.•
Loca
tion
idea
lly in
Her
at.•
Priva
tely
oper
ated
and
man
aged
facil
ity. O
pera
tors
can
be
chos
en th
roug
h ex
pres
sion
of in
teres
t. Pr
ivate
com
panie
s will
show
case
and
dem
onstr
ate eq
uipm
ent.
2•
Share
d serv
ice fa
cility
for p
acka
ging
is se
t up
and
oper
ation
alAN
SA, M
oCI,
ACCI
3.2.
4. In
an ef
fort
to b
ridge
the i
nfor
mati
on an
d tru
st ga
p be
twee
n su
pplie
rs an
d sa
ffron
firm
s, cr
eate
pack
aging
clini
cs w
ith th
e fol
lowi
ng m
odali
ties :
• Ex
perts
will
pro
vide d
etaile
d fee
dbac
k on e
xistin
g sa
mpl
es to
saffr
on fir
ms i
n ord
er to
coac
h the
m on
th
e wea
knes
ses /
stren
gths
of t
heir
exist
ing p
acka
ging
.•
Pack
aging
supp
liers
coac
hed
by in
terna
tiona
l exp
erts
will
lead
sess
ions
to p
acka
ge sa
mpl
es o
f par-
ticip
ating
saffr
on fi
rms.
Pre-
and
post-
pack
aging
and
labell
ing as
sess
men
t will
be p
rovid
ed.
• Inf
orm
ation
and
dem
onstr
ation
s on
a vari
ety o
f pac
kagi
ng ty
pes w
ill b
e sha
red w
ith S
MEs
and
pack
-ag
ing su
pplie
rs.•
To in
cent
ivize
saffr
on S
MEs
to u
se p
acka
ging
firm
s, fir
ms w
ill b
e pr
ovid
ed w
ith ‘v
ouch
ers’
that
can
be u
sed
to p
rocu
re pa
ckag
ing se
rvice
s on
a one
-tim
e ba
sis, t
he g
oal b
eing
that
this
will
help
pro
ve
the
valu
e pr
opos
ition
for f
irms
so th
at th
ey w
ill p
rocu
re th
e pa
ckag
ing s
ervic
es o
n th
eir o
wn in
fol-
lowi
ng it
erati
ons.
2•
At le
ast t
wo co
achin
g se
ssio
ns le
d by
inte
rnati
onal
expe
rts p
er y
ear,
targe
ting
saffr
on fi
rms
• A
vouc
her s
ystem
is de
velop
ed an
d op
erati
onal
MoC
I, AN
SA, M
AIL
3.3.
Pro
mot
e Af
ghan
saf
fron
in
inte
rnat
iona
l mar
kets
and
facil
i-ta
te g
reat
er in
-mar
ket s
uppo
rt.
3.3.
1. R
oll o
ut an
aware
ness
-raisi
ng ca
mpa
ign
on A
fgha
n sa
ffron
by d
evelo
ping
pro
mot
iona
l mate
-ria
l and
merc
hand
ising
such
as vi
deos
and
a ded
icated
web
site t
o sh
owca
se th
e attr
ibut
es o
f Afg
han
saffr
on.
2•
One
com
preh
ensi
ve c
ampa
ign
launc
hed
reac
hing
four
key
targ
et m
arkets
MoF
A, A
NSA,
MAI
L, AC
CI,
MoC
I
3.3.
2. Th
roug
h a c
ompe
titive
selec
tion
proc
ess,
iden
tify a
num
ber o
f Afg
han
saffr
on co
mpa
nies t
o be
su
ppor
ted th
roug
h gr
ants
to p
artic
ipate
in in
terna
tiona
l fair
s and
exhib
ition
s. Ca
pacit
ate p
artic
ipati
ng
com
panie
s on
mark
et int
ellig
ence
prio
r to
their
trav
el. C
oach
com
panie
s on
the f
ollo
wing
topi
cs :
• Ide
ntify
ing an
d co
nnec
ting
with
new
buy
ers,
and
how
to fo
llow
up m
eetin
gs an
d de
als.
• Un
derst
andi
ng m
arket
requir
emen
ts.•
Ident
ifying
opp
ortu
nities
for r
each
ing in
terna
tiona
l mark
ets.
Facil
itate
busin
ess-
to-b
usine
ss m
eetin
gs fo
r par
ticip
ating
com
panie
s dur
ing th
e cor
respo
nding
fairs
an
d ex
hibiti
ons.
Orga
nize f
ield
visits
in th
e hos
t cou
ntry
to lo
cal p
roce
ssing
unit
s and
pac
kagi
ng fa
ciliti
es, a
nd lo
cal
mark
ets ( e
.g. D
ubai’
s Gol
d So
uk ) t
o inc
rease
their
aware
ness
of i
nter
natio
nal s
tanda
rds.
1•
Ten
Afgh
an S
MEs
are s
electe
d an
d be
nefit
from
gran
t sup
port
ACCI
, MoC
I, M
oFA
3.3.
3. E
nhan
ce in
-mark
et su
ppor
t thr
ough
capa
city-
build
ing o
f trad
e atta
chés
abro
ad.
• Th
rough
onlin
e cap
acity
-buil
ding w
orks
hops
and t
he di
ssem
inatio
n of m
arket
profi
les an
d Afgh
an sa
ffron
factsh
eets,
build
the c
apac
ities o
f trad
e atta
chés
at A
fgha
n miss
ions a
broa
d on t
he po
tentia
l of s
affro
n.•
Train
trade
attac
hés o
n ide
ntify
ing bu
sines
s dev
elopm
ent o
ppor
tunit
ies an
d cha
nnell
ing th
em ba
ck to
sta
keho
lder
s suc
h as
mini
stries
, sec
tor a
ssoc
iatio
ns, e
tc.
2•
Four
onlin
e wor
ksho
ps ar
e con
duct-
ed an
nuall
y, tar
getin
g trad
e atta
chés
in
at lea
st eig
ht ke
y targ
et m
arkets
MoC
I, AC
CI an
d M
oFA
3.3.
4. C
ondu
ct a f
easib
ility
study
to as
sess
the p
ossib
ility
of es
tablis
hing
at lea
st on
e sho
wroo
m in
a ke
y mark
et to
show
case
saffr
on an
d ot
her s
imila
r exp
orts
to ra
ise aw
arene
ss an
d cr
eate
a sing
le ad
-dr
ess w
here
whol
esale
rs an
d ret
ail b
uyer
s can
get
saffr
on an
d ot
her p
rodu
cts in
that
expo
rt m
arket.
Base
d on
the s
tudy
, lau
nch
a pilo
t for
the e
stabl
ishm
ent o
f a sh
owro
om in
a ke
y mark
et.
3•
Feas
ibili
ty stu
dy d
evelo
ped
• Pil
ot la
unch
edM
oCI,
ACCI
52
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / SAFFRON SECTOR 2018-2022 ]
Stra
tegi
c ob
ject
ive
3 : S
pur m
arke
t pen
etra
tion
and
deve
lopm
ent t
hrou
gh in
tegr
ated
qua
lity
man
agem
ent,
pack
agin
g an
d br
andi
ng o
pera
tions
.Op
erat
iona
l obj
ectiv
esAc
tivitie
sPr
iorit
y1=
high
2=
med
3=
low
Impl
emen
tatio
n pe
riod
Targ
etLe
ad a
nd s
uppo
rting
im
plem
ente
rs
2017
2018
2019
2020
2021
2022
3.3.
Pro
mot
e Af
ghan
saf
fron
in
inte
rnat
iona
l mar
kets
and
facil
i-ta
te g
reat
er in
-mar
ket s
uppo
rt.
3.3.
5. E
nhan
ce m
arket
intell
igen
ce o
n cu
rrent
and
poten
tial r
egio
nal a
nd in
terna
tiona
l mark
ets ( e
.g.
Italy,
UAE
) by d
evelo
ping
mark
et pr
ofile
s. Inf
orm
ation
to in
clude
: leg
al req
uirem
ents,
such
as q
ual-
ity re
quire
men
ts, la
belli
ng ; c
onsu
mer
pref
erenc
es, s
uch
as ce
rtific
ation
s, pa
ckag
ing ; a
nd co
nsum
er
trend
s.De
velo
p str
ategi
es fo
r eac
h tar
get m
arket,
cons
ider
ing :
• EU
( mark
et req
uirem
ents
such
as p
acka
ging
), po
ssib
le di
versi
ficati
on o
f pro
ducts
( e.g
. pha
rmac
eu-
tical,
cosm
etic a
nd fo
od in
dustr
ies ),
mark
et an
d di
strib
utio
n cha
nnels
( e.g
. inv
olve
men
t of d
iaspo
ra,
hotel
s, res
tauran
ts, ac
cord
ingly )
.•
Asian
mark
ets, p
ossib
le div
ersif
icatio
n of p
rodu
cts ( e
.g. h
erba
l drin
ks, s
affro
n-fla
vour
ed da
iry pr
oduc
ts,
plan
t-bas
ed m
edici
ne ).
Regu
latio
n for
impo
rts is
gen
erall
y non
-exis
tent e
xcep
t for
Chin
a and
Japa
n.•
Mid
dle
East
mark
et ( U
AE, s
econ
d-lar
gest
cons
umer
afte
r Isla
mic
Repu
blic
of Ir
an, r
e-ex
ports
mos
t sa
ffron
impo
rts ),
with
pot
entia
l foc
us o
n pa
ckag
ed sa
ffron
and
saffr
on-fl
avou
red p
rodu
cts.
Diss
emina
te m
arket
prof
iles a
nd co
nduc
t wor
ksho
ps fo
r saff
ron
com
panie
s.
1•
Mar
ket p
rofil
es d
evel
oped
for a
t lea
st eig
ht ta
rget
mark
etsM
oCI (
com
mer
cial a
tta-
chés
), M
oFA,
ACC
I and
MAI
L
3.3.
6. E
nhan
ce b
usine
ss an
d m
arketi
ng ca
pacit
ies o
f Afg
han
saffr
on co
mpa
nies.
Orga
nize t
rainin
g se
ssio
ns fo
r exp
orter
s on :
• Pr
oced
ures
and
docu
men
tatio
n fo
r exp
ort ;
• Bu
sines
s and
mark
eting
( pric
ing, q
ualit
y, pa
ckag
ing, e
tc. ) ;
• Fin
ancia
l skil
ls ;•
Enha
nced
mark
et op
portu
nities
crea
ted b
y trad
e agr
eem
ents ;
• Ho
w to
use
, acc
ess a
nd b
enefi
t fro
m fr
ee tr
ade a
gree
men
ts in
the t
arget
mark
et ;
• Ho
w to
use
mark
et inf
orm
ation
tool
s. Fo
cus o
n int
erpr
etatio
n of
mark
et inf
orm
ation
.
1•
Two
train
ing
sess
ions
targ
eting
at
least
30 S
MEs
are
con
duct
ed p
er
year
MoC
I, M
oFA,
ACC
I and
MAI
L
3.3.
7. E
xplo
re e-
com
merc
e dev
elopm
ent p
ossib
ilitie
s for
the A
fgha
n sa
ffron
secto
r.
• Co
nduc
t a b
rief f
easib
ility
study
/ as
sess
men
t to
expl
ore o
ptio
ns to
use e
-com
merc
e to
sell
and
ship
Af
ghan
saffr
on.
As a
pilo
t init
iative
, ass
ist se
lect c
oope
rative
s / co
mpa
nies t
o se
t up
webs
ites,
onlin
e pay
men
t mod
ali-
ties a
nd o
ther
func
tions
invo
lved
in e-
com
merc
e app
licati
ons.
Ensu
re th
at lo
cal i
nfor
mati
on te
chno
l-og
y firm
s are
invol
ved
in th
e im
plem
entat
ion
and
scale
up
the i
nitiat
ive b
ased
on
succ
ess.
3•
A fea
sibili
ty stu
dy is
cond
ucted
• Te
n co
oper
ative
s / c
ompa
nies
are
pr
ovid
ed w
ith te
chnic
al su
ppor
t
ACCI
and
MoC
I, M
inistr
y of
Com
mun
icatio
ns an
d Inf
orm
ation
Tech
nolo
gy
3.4.
Dev
elop
the
dom
estic
m
arke
t for
Afg
han
saffr
on.
3.4.
1. Th
e loc
al m
arket
need
s to
be ad
dres
sed
thro
ugh
a hom
e bus
iness
mark
eting
strat
egy,
which
cr
eates
link
s with
socie
ty an
d bu
sines
ses t
hrou
gh se
mina
rs, ex
hibiti
ons a
nd sy
mpo
sium
s as w
ell as
th
e esta
blish
men
t of s
affro
n sa
les re
pres
entat
ives.
Othe
r acti
vities
inclu
de :
• Ne
twor
king
and
orga
nizin
g of
a lo
cal m
arke
t thr
ough
coo
rdin
ation
with
indu
strial
, foo
d an
d ho
me
cons
umer
s.•
Crea
tive p
acka
ging
acco
rding
to co
nsum
er in
teres
ts.•
Raisi
ng a
ware
ness
am
ong
famili
es a
bout
the
signi
fican
ce o
f saff
ron
and
meth
ods
of u
sing
saffr
on
at ho
me
2•
Hom
e bus
iness
mark
eting
strat
egy
desig
ned
and
rolle
d ou
t•
An an
nual
sym
posiu
m is
cond
ucted
ACCI
, MoC
I and
loca
l med
ia
3.4.
2. P
rom
ote p
rogr
amm
es to
incr
ease
nati
onal
dem
and
for s
affro
n.
• En
cour
age n
ation
al de
man
d fo
r saff
ron
by ro
lling
out
com
mun
icatio
n ca
mpa
igns
.Co
nduc
t a st
udy t
o an
alyse
the c
urren
t dom
estic
mark
et. D
evelo
p a s
tudy
to an
alyse
the p
oten
tial u
n-m
et m
arket
and
corre
spon
ding
pro
duct
deve
lopm
ent a
ltern
ative
s for
dom
estic
saffr
on co
nsum
ptio
n.
2•
A te
chni
cal r
epor
t is
deve
lope
d on
the
curre
nt d
omes
tic m
arke
t fo
r saff
ron
• On
e na
tiona
l ca
mpa
ign
is c
ar-
ried
out p
er y
ear,
base
d on
stu
dy
findi
ngs
ACCI
, MoC
I and
loca
l med
ia
[ REFERENCES ]
53
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