SAFFRON SECTOR - ITC...NATIONAL EXPORT STRATEGY 2018-2022 SAFFRON SECTOR Spicing up Afghan exports AFGHANISTAN • NATIONAL EXPORT STRATEGY - SAFFRON SECTOR • 2018-2022 ITC is the

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.

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AFGHANISTANNATIONAL EXPORT STRATEGY2018-2022SAFFRON SECTOR

This project is funded by the European Union

Ministry ofIndustry and CommerceIslamic Republic of Afghanistan

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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



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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 socioeconomic 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

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OBJE

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ANAL

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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..

https://open.unido.org/api/documents/4672742/download/Saffron Industry Value Chain Development In Islamic Republic of Iran - Diagnostic Study Report




4


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


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

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350,000

300,000

250,000

200,000

150,000

100,000

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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.

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Figure 3 : World’s top exporters of saffron ( 2016 )

100,000

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0

120

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Iran, Islamic Republic of

FranceCountries

List of exporters for the selected product in 2016Product: 091020 Saffron

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Afghanistan Netherlands China

Spain Portugal Hong Kong, China Greece Germany

Exported value, USD thousand Annual growth in value, %


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.


• 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.


7


• 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.


• 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.


• 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

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Spain United Statesof America

Italy India

Imported value, USD thousand Annual growth in value, %

Hong Kong,China

ArgentinaFranceSweden Saudi Arabia United Kingdom


8


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.

https://reliefweb.int/sites/reliefweb.int/files/resources/Full Report_46.pdf


[ 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

http://appro.org.af/wp-content/uploads/2017/03/131206754-Value-Chain-Governance-and-Gender-Saffron-Production-in-Afghanistan.pdf


10


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.

http://mcn.gov.af/Content/files/Afghanistan Price Monitoring September 2015.pdf



11

Figure 5 : Current value chain

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12


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

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equipment requirements

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opium cultivation

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between planting and harvesting, and high

costs for good quality corms - leading to high sunk costs

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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 :


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

http://www.itqi.com/en/about-itqi/press-archives/afghan-saffron-company-superior-taste-award-2013/


14


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.


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

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14.000

12.000

10.000

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-2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source : ITC Trade Map. Based on Comtrade mirror data

16


Figure 8 : Top 10 export destinations of Afghan saffron, 2012 ( US $ thousands )

Figure 9 : Top 10 export destinations of Afghan saffron, 2016 ( US $ thousands )

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Photo: ITC


17

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


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 ● ● ● ○ ○


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.



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.



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


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


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


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


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.


Severity ● ● ● ● ●


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.



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 ).




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.




22


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


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.



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


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.




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.



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


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.



PoA reference Activities 1.3.1 to 1.3.5, and 2.2.3

Photo: ITC


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

Saffr

on re

sear

ch

whi

ch h

as n

ot

yet t

rickl

ed d

own

to A

fgha

nist

an

Insu

ffici

ent s

uppo

rt s

ervi

ces

targ

etin

g w

omen

Lack

of

incl

usio

n of

sa

ffron

in

agric

ultu

re’s

fa

culty

cu

rric

ulum

Lack

of t

rain

ing

of s

peci

alis

ts in

un

iver

sitie

s to

te

ach

stud

ents

ab

out s

affro

n

Poor

use

of

elec

tric

drie

rs,

mic

row

ave

oven

s an

d/or

de

hydr

ator

s

Lac

k of

/wea

k ac

cess

to

elec

trici

ty

High

in

vest

men

t, Di

fficu

lty

obta

inin

g cr

edit

Insu

ffici

ent

inve

stm

ent

Insu

ffici

ent

wom

en

to w

omen

ex

tens

ion

serv

ices

Shor

tage

of

wom

en

exte

nsio

n sp

ecia

lists

Lim

ited

mob

ility

of w

omen

Insu

ffici

ent

wom

en tr

ader

s

Wom

en d

epen

d on

loca

l tra

ders

to

info

rm a

bout

pr

ices

whi

ch

wea

kens

thei

r ne

gotia

ting

pow

er o

ver

pric

es

Insu

ffici

ent

proc

essi

ng

cent

res

whi

ch

conf

orm

to

inte

rnat

iona

l st

anda

rds

Poor

di

ssem

inat

ion

by tr

aini

ng a

nd

rese

arch

in

stitu

tions

of

new

Saf

fron

rese

arch

Lack

of

prov

isio

n of

te

chni

cal

educ

atio

n on

ho

w to

impr

ove

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[ 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


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


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 %





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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


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

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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


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


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


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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



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



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


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


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

http://www.infoentrepreneurs.org/en/guides/joint-ventures-and-partnering/#1






46


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


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


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


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

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ia

[ REFERENCES ]

53

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54


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https://assets.publishing.service.gov.uk/media/57a08c59ed915d3cfd00131c/RALF3_002.pdf



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