Formatted: Tab stops: Not at 6.94"

Commercial Horticulture and Agricultural Marketing Program CHAMP

Cooperative Agreement Award No. 306-A-00-10-00512-00

Cooperative Agreement Recipient Roots of Peace

Period of Cooperative Agreement February 1, 2010 - January 31, 2014

Amount of Cooperative Agreement $34,912,182

Agreement Officer’s Technical Rep Adel Khaksar

Agreement Officer Nataliya Holl

Chief of Party Peter Dickrell, [email protected]

ROP Executive Director Gary Kuhn, [email protected]

ROP Founder & CEO Heidi Kuhn, [email protected]

Cover page: Farmers training on orchard layout with CHAMP extension agents, Habib Noor and Noorulhaq, in Ahmad Aba District.

CHAMP Quarterly Report Oct-Dec 2011 Page: i

COMMERCIAL HORTICULTURE & AGRICULTURAL MARKETING PROGRAM (CHAMP)

Quarterly Report: October-December 2011

CHAMP is made possible by the support of the American people through the U.S. Agency for International Development (USAID). CHAMP is implemented by Roots of Peace (ROP). This report was produced for review by the USAID.

CHAMP Quarterly Report Oct-Dec 2011 Page: ii

contents

EXECUTIVE SUMMARY ...... 1 Project Information ...... 1 Achievements for Quarter ...... 1 PERFORMANCE INDICATORS ...... 2 PROGRAM ACHIEVEMENT HIGHLIGHTS ...... 4 Horticulture & Agriculture Highlights ...... 4 Gender Section Highlights ...... 4 Marketing Section Highlights ...... 4 HORTICULTURE AND AGRICULTURE PROGRAM REPORT ...... 6 Outreach Activities Focused on Young Orchards and Vineyards ...... 6 Orchard Care Activities...... 6 Trellising Vineyards ...... 6 Intercrop Management ...... 7 Commercial Orchard Layout:...... 7 Training of CHAMP and DAIL staff on Pruning, dormant spray and Orchard Layout: ...... 8 Next Quarter Priorities: Horticulture & Agriculture Program ...... 9 Challenges to Implementation: Horticulture & Agriculture Program ...... 10 GENDER ACTIVITES ...... 11 Kitchen Gardening ...... 11 Poultry Farming ...... 11 MARKETING SECTION ACTIVITIES ...... 12 Chilled Grape Exports to New Delhi ...... 12 Raisin Quality Improvement Program for Women Association ...... 13 Marketing Mission to Pakistan ...... 14 Afghan Exporters Participated in Indian International Trade Fair (IITF) ...... 15 Dried Mulberry Quality Improvement Program and Export to Canada ...... 16 Completion of two cool rooms in Wardak Province ...... 17 Locally Manufactured Solar Drier Successfully Tested in Mirbachakot ...... 17 CHAMP supported a reefer shipment of apples to New Delhi India ...... 19 MOU Signed for Establishing an Afghan Trade Office in Dubai ...... 20 Training on Apple Marketing and Off-Season Storage Program ...... 20 Two Pre-Cooling units Established at Cold Storages ...... 21

CHAMP Quarterly Report Oct-Dec 2011 Page: iii

Pomegranate Trade Promotion Visit to Dubai ...... 22 CHAMP Marketing Representatives with Kandahar Exporters ...... 22

CHAMP Quarterly Report Oct-Dec 2011 Page: iv

Acronyms

AAIDO Afghan Almond Industry Development Organization ACBAR Agency Coordinating Body for Afghan Relief ADB Asian Development Bank ADT US Military Agriculture Development Team ANA ANP Afghan National Police AOTR USAID Agreement Officer’s Technical Representative ASAP USAID Accelerated Sustainable Agriculture Program AVIPA Vouchers for Increased Production in Agriculture COIN Counter-insurgency Strategy COP Chief of Party CDC Community Development Council DDA District Development Assemblies DAI Development Alternatives Inc., a for-profit international development firm DAIL Directorate of Agriculture, Irrigation and Livestock DST District Stabilization Teams EC European Community GIRoA Government of the Islamic Republic of Afghanistan GPFA Global Partnership for Afghanistan, an INGO GTZ arbeit GmbH IDEA-NEW USAID program in North, East and West IED GesellschaftImprovised Explosivefűr Technische Device Zusammen IPM Integrated Pest Management IRD International Relief and Development ISAF International Security Assistance Forces LOE Level of Effort MAIL Ministry of Agriculture, Irrigation and Livestock M&E Monitoring and Evaluation MOE Ministry of Economics MOU Memorandum of Understanding MRRD Ministry of Rural Rehabilitation and Development P2K The provinces of Paktika, Paktya and Khost PHDP Perennial Horticulture Development Program, funded by the EC PMP Performance Management Plan PRT Provincial Reconstruction Team ROP Roots of Peace USAID United States Agency for International Development USDA United States Department of Agriculture USG United States Government

CHAMP Quarterly Report Oct-Dec 2011 Page: v

EXECUTIVE SUMMARY

Project Information

CHAMP began in February 2010 as a four year, $34.9 million activity that will reduce poverty among rural Afghan farmers by assisting them to shift from relatively low-value annual crops, such as wheat, to relatively high-value perennial crops, such as almonds, grapes and pomegranates. Because improved trellising can dramatically improve the productivity of existing grape vineyards, a second component of CHAMP is to assist grape producers to install improved trellising systems in new or existing vineyards. Participants will contribute $4.5 million of their own funds as a “partnership” portion of the costs of the materials for the orchards and vineyards.

A marketing program will support the increased production by linking producers to merchants in a system that rewards farmers and merchants for higher quality production with higher prices and profits, working with farmers to improve quality, and with traders to improve harvesting, packing, cooling, shipping and marketing methods. Profits will be increased through interventions targeting higher paying, non- traditional, export markets and better access to trade credit. To insure that women specifically benefit, and to encourage equal opportunities for women, CHAMP is implementing a pilot women’s program, focusing on home gardens and poultry rearing. CHAMP is implementing programs in 16 provinces in the Eastern, South Eastern, Southern and Central regions of Afghanistan.

The four program components are:

 New orchards and vineyards  Trellising vineyards  Home egg production units and vegetable gardens for women  Marketing programs for export and import substitution.

Achievements for Quarter After a slow start in year one of the program, CHAMP is on track to achieve its second year orchard and trellising targets. In the reporting period, CHAMP field staff focused on the planting of commercial orchards and instructing the farmers to properly maintain the newly planted saplings in the fall season. The team provided additional advice to the farmers who had established their orchards in the spring season.

Throughout the quarter, communication with relevant stakeholders (MAIL, DAIL, DDA, CDCs, USAID District Representatives, USDA and DOD) continued. The CHAMP staff met with the stakeholders at the District, Provincial and National levels.

The CHAMP team is now implementing the program in 16 provinces, including provinces in the Eastern Region (Nangrahar, Kunar, and Laghman, Parwan, Wardak, Bamyan, Logar, Ghazni, Paktya, Paktika, Khost), Southern Region (Zabul, Uruzgan, Kandahar, Helmand), and the Central Region (Kabul). Accordingly, staff was added as the program expanded into additional program districts. Currently, we have 146 employees working in the field and the Kabul office.

CHAMP Quarterly Report Oct-Dec 2011 Page: 1

PERFORMANCE INDICATORS CHAMP Performance Indicators (Codes refer to the US Mission in Afghanistan Agriculture Results Framework) 4th Year 2 Program to Date Quarter SN Code Indicators Oct-Dec Feb 01 2011 - Jan 31 Feb 01 2010 – Jan 31 2011 2012 2014 Results Target To Date Target To Date Number of households benefitted by 1 5b agriculture and alternative development 413 8,988 8,902 26,925 11,383 interventions in targeted area Net increase in private sector employment 2 5.1a for assisted farms & agribusinesses (full- 12 2,661 2,114 7,156 2,781 time) Sales increase of licit farm and non-farm 3 5.1b products in USG assisted areas over 87,750 750,000 344,927 3,600,000 1,183,947 previous year Percentage increase in household income 4 5.1c 0 25% 0% 110% 81% from licit agriculture in targeted areas

No. of farmers using USG-supported 5 5.1.1b 413 8,988 8,892 26,925 11,383 agricultural inputs in targeted areas

6 5.1.1c No. of farmers planting high-value crops 0 7,713 7,526 20,175 10,323

7 5.1.1d No. of hectares under improved irrigation 43 2,898 2,140 8,276 2,896

No. of farmers using improved irrigation 8 5.1.1e 212 7,909 7,017 23,963 9,782 techniques

No. of individuals received agriculture- 9 5.1.1f 4,362 8,988 22,680 26,925 25,871 productivity short-term training

No. of hectares of alternative crops under 10 5.1.1g 46 3,220 2,375 9,195 3,282 cultivation targeted by USG programs

Number of individuals benefitting from 11 5.1.2a 0 150 2 1,050 12 financial agreements

Total value of capital provided to 12 5.1.2b 65,271 4,685,110 3,436,361 13,378,754 4,774,874 agricultural value chain (total dollars)

No. of agriculture-related firms benefitting 13 5.1.2c 26 330 26 2,140 690 from USG-supported interventions

Total value of input sales from agriculture- 14 5.1.2d 65,271 4,685,110 3,454,403 13,378,754 4,774,874 related firms

No. of women’s Org./Assoc. assisted as 15 5.1.2e 4 4 5 4 12 result of USG assistance

No. of individuals who have received 16 5.1.2f 200 330 200 2,140 664 business skills training

CHAMP Quarterly Report Oct-Dec 2011 Page: 2

Number of hectares under improved 17 5.2a 42 2,940 2,127 8,276 2,673 natural resource management

No. of GIRoA agricultural extension staff 18 5.3.2d 8 25 33 25 62 trained in new techniques

As of September 30,2011

No. CHAMP Deliverables Actual versus target) Prior Period Actual Performance to Date Current Quarter Actual (percentage actual of Total ProgramDate to Target through 2nd Year Number of hectares of orchards and 1 vineyards established as a result of 2,975 718.00 0 2,735.00 92% CHAMP assistance Number of hectares of vineyards having 2 trellising installed as a result of CHAMP 245 56.8 46 102.8 42 % assistance. Number of home vegetable gardens 3 established a result of CHAMP 150 0 100 100 67% assistance. Number of home poultry (egg) 4 production units established a result of 50 50 0 50 100% CHAMP assistance.

Number of rural households benefiting 5 10,200 3,189 413 9,668 95% directly from CHAMP interventions

Number of individuals who have 6 received USG-supported agricultural 12,804 6,330 4,350 16,074 126% sector productivity short-term training Number of farmers planting high-value 7 8,926 2,698 0 9,093 102% crops Number of firms receiving CHAMP 8 assistance to improve their market 300 4 26 31 10.33% practices Number of new technologies or 9 management practices under field 3 1 1 3 100% testing as a result of CHAMP assistance Number of SMEs that successfully 10 accessed bank loans or private equity 1 0 0 0 100% as a result of CHAMP assistance. Number of new marketing channels 11 4 4 1 5 125 % being tested Number of new credit mechanisms for 12 1 1 0 1 100% fresh fruit marketing tested

CHAMP Quarterly Report Oct-Dec 2011 Page: 3

PROGRAM ACHIEVEMENT HIGHLIGHTS

Horticulture & Agriculture Highlights • 5,546 farmers have pledged their 2,018.6 hectares of land for the upcoming spring planting season. With these pledges we are on track to achieve our target for 3rd year. CHAMP orchard planting program were near targets for the 1st and 2nd year.

• 4,350 farmers received technical assistance on improved horticultural techniques from the extension team on regular basis during the quarter.

• CHAMP team delivered 27,620 concrete posts for trellising of 46 hectares of vineyards. That benefited 230 farmer families with the new improved trellising system for vineyards.

• In order to increase the farmers’ short term income, the program distributed seeds to intercrop vegetables and alfalfa in the newly established 2011 commercial orchard beneficiaries in Laghman, Kunar, Nangarhar, Zabul, Kandahar, Helmand and Urozgan provinces.

• 560 Jerib (112 ha) of land has been laid out for orchard establishment in Urozgan, Paktya, Khost and Nangarhar Provinces for the coming spring plantations.

• CHAMP arranged training for its Helmand, Kandahar, Laghman, Kunar, Kabul, Nangarhar and Zabul field staff and DAIL Agriculture Extension Officers in CHAMP regional offices on fruit tree pruning, dormant spray application, and preparation of land and orchard field layout.

Gender Section Highlights

• 150 Beneficiaries were identified in Nangarhar, Helmand and Bamyan Provinces

• 100 Beneficiaries of Kitchen Gardening Provided with Onion Seeds and Fertilizers.

• The Poultry Production Units are benefiting the poultry farmers more in the cold weather. The Poultry Farms established in the previous quarter have started producing Eggs.

Marketing Section Highlights

• Chilled grape were exported to New Delhi from northern for the first time

• The team provided assistance to Raisin Producing Women Association for raisin quality improvement

• A fact finding marketing Mmission to Pakistan carried out by two members of Marketing Team

• Afghan exporters participated in Indian International Trade Fair (IITF)

CHAMP Quarterly Report Oct-Dec 2011 Page: 4

• 100 mulberry producers trained in dried mulberry quality improvement and their product was xxported to Canada with assistance of CHAMP

• Construction of two cool rooms in Wardak Province completed

• Locally manufactured solar drier successfully tested and 35 farmers were provided with technically assistance and introduced them to this unit in Mirbachakot

• CHAMP supported a reefer shipment of apples to New Delhi, India

• An MOU signed for establishing an Afghan Trade Office in Dubai between CHAMP and Takdana Trading Company in presence of EPAA

• A training on apple marketing and storage program was conducted in Maidan, Wardak Province

• Two pre-cooling units were established as cold storage in Said Abad District and Maidan, Wardak Province

• CHAMP and ARD arranged a pomegranate trade promotion visit to Dubai

• CHAMP marketing representative participated in a meeting held for Kandahar exporters’ assistance

CHAMP Quarterly Report Oct-Dec 2011 Page: 5

HORTICULTURE AND AGRICULTURE PROGRAM REPORT

Outreach Activities Focused on Young Orchards and Vineyards During the reporting period, CHAMP Horticulture team continued to conduct the CHAMP activities in the targeted provinces by organizing individual and group meetings with DAILs, Shuras, CDCs and DDAs. A total of 5,546 new farmers with 2,018.6 hectares of land have been registered to participate in the establishment of commercial fruit orchards in upcoming spring season as per CHAMP technical and social criteria. Orchard Care Activities The CHAMP extension team provided extra assistance for the protection and improvement of the planted orchards. They visited the farmers, groups of farmers, and the community elders to make sure that the farmers are following up on the technical trainings regarding the planted orchards. These activities include the improvement of irrigation practices, pruning and training fruit trees, weeds control, white wishing trunks of the young trees, proper intercrop management, using fertilizers and finally implementing integrated pest and disease management. During this quarter over 4,350 farmers received technical assistance from the extension team on the above mentioned tasks.

Double Irrigation System Installation

Trellising Vineyards Trellising vineyard will double the harvest the yield of grapes, both in quality and in quantity. In order to increase farmer’s income, CHAMP is trellising existing vineyards in the grape production area in Kabul, Parwan, Logar, Ghazni, Zabul, Helmand and Kandahar provinces. Furthermore, traditionally in Afghanistan, vines are grown on the ground. CHAMP is training them in trellising them using wire and T-Bar supported by concert the concrete posts can double the yield, this method is used almost in all of the world. The T style trellis is a new introduction with the CHAMP program. The T structure provides a a nice canopy for the vines to cascade over, allowing the grape

CHAMP Quarterly Report Oct-Dec 2011 Page: 6 bunches to hang do below the canopy in shade. Past trellising by all other programs in Afghanistan are simple “I” trellises.

This quarter CHAMP focused on providing technical assistance to the maintenance of vineyards previously trellised by CHAMP farmers and the continuation of trellising of new vineyards in several areas. The extension team installed 27,620 concrete posts with 230 beneficiaries covering 46 ha areas.

Installation of trellis posts Panjwaiee, Kandahar

Intercrop Management In order to increase the short-term income of the farmers, inter-crop seeds were distributed to 2011 commercial orchard beneficiaries in Kandahar, Helmand, Zabul, Urozgan, Logar, Nangarhar, Laghman and Kunar provinces. The farmers are able to earn some interim cash to cover their expenses by growing vegetables and fodder crops in the interspaces between rows of the fruit trees. A total of 18,200 kg of Alfalfa seed and 793 kg seed of Onion, Tomato, Cauliflower, Spinach and Cabbage were distributed.

Commercial Orchard Layout: 560 Jerib (112 ha) of land have been laid out for orchard establishment in Urozgan, Paktya, Khost and Nangarhar Provinces for the coming spring plantations. Orchard lay out templates developed by CHAMP helps the farmers to plant the annual crops in regular intervals and allows for inter- crops that generate seasonal income for the orchard growers. It also minimizes the risk of pest and diseases because of the better sunlight penetration and air circulation among the trees.

CHAMP Quarterly Report Oct-Dec 2011 Page: 7

Orchard Layout for orchard establishment, Paktya

Training of CHAMP and DAIL staff on Pruning, dormant spray and Orchard Layout: During the reporting period CHAMP conducted three three-day trainings on “Fruit tree pruning, Dormant Spray Application, preparation of land and orchard field Layout”, and “Proper Trellising and T-Trellising systems in Afghanistan” in the CHAMP Kabul, Nangarhar, and Kandahar regional offices for its extension staff there. A total of 60 people participated in these trainings as illustrated in the table below. The main topics of this training were basics and principles of pomegranate and stone fruit pruning. Additional topics included pruning systems used for pomegranate and stone fruits, application of dormant spray, preparation of Bordeaux mixture, Bordeaux paste, lime sulfur, orchard layout, field design, preparation irrigation system and planting methods.

Comparisons were made between the trellis concepts, methods and benefits as compared to bush vine traditional systems, correct pruning of grapevines, good canopy management and their importance for quality production. Thus the participants of the training got a broader knowledge of the subject matter and they promised that they would practically apply it in the field and this would assist the fruit and vine growers to get high yield and income from their produce.

No. of CHAMP No. of DAIL No. of Reporting Place of Extension Extension Faculty Period Training Topic Training Officer Officers Students

October Proper Trellising and T- Mirbachakot 01-15, Trellising systems in District 17 3 2011 Afghanistan Kabul

November Fruit tree pruning, CHAMP 18 4 students of 16-30, Dormant Spray Jalalabad Nangarhar

CHAMP Quarterly Report Oct-Dec 2011 Page: 8

2011 Application, Land Office, University preparation and Nangarhar Orchard field Layout

December Fruit tree pruning, CHAMP 16-31, Dormant Spray Kandahar 2011 Application, preparation Office 13 5 of land and orchard field Layout

Total 48 8 4

Next Quarter Priorities: Horticulture & Agriculture Program

Team and Capacity Building Several training activities will characterize next quarter’s work. The extension team will receive training on planting, irrigation, fertilization, pruning, integrated pest and disease management (IPM) for activities to come. Additionally, CHAMP has to build up the capacity for farm input distribution plus sapling packing and handling.

Care of Newly Planted Orchards and Vineyards CHAMP will provide a basic training to farmers on planting, irrigation, weeding, white washing of the trunks, and importance of soil leveling, mulching, and intercrops. Those farmers who planted orchards last spring will be given training on pruning and shaping their young fruit trees/vines. By doing this job correctly, we expect a major positive impact on the productivity of the orchards.

Nurseries CHAMP will purchase saplings and root-cuttings for the spring season plantation from a set of selected certified nurseries. Besides, the managers of the nurseries will be trained in digging-out techniques, and packing the sapling as per the need and requirement of the outer environment. So that the planned target of approximately 1.7 million saplings and root-cutting could be achieved smoothly. Meanwhile the extension team will keep continue monitoring the nurseries practices to assure the sapling quality.

New Orchard and Vineyard Establishment CHAMP will be busy in orchard establishment in the coming quarter. It has already started the process of designing pieces of land for plantation. Further, work will include handling of sapling, distribution of sapling, farm inputs and plantation. CHAMP will establish orchards on an approximate 2,500 hectares of land.

Trellising Vineyards Another major activity will be trellising existing vineyards. The CHAMP team will continuously keep contact with the suppliers and producers of trellis posts and other inputs to insure top quality. The next step is the distribution of trellis inputs to the vineyards as, trellis posts, T-Bars, galvanized wire etc.

CHAMP Quarterly Report Oct-Dec 2011 Page: 9

Challenges to Implementation: Horticulture & Agriculture Program

Communications & Collaboration CHAMP regional and district level staff encounters many communication and collaboration challenges with multiple USG officials’ expectations from USAID, USDA, USDOD and PRT. They usually expect to talk directly to CHAMP sub-national level managers which bring many challenges and hurdles in their routine works because much of their time is taken up in these meetings. The main reason behind this issue is the large number of USG officials that sometimes exceeds CHAMP staff capacity. The team will continue to monitor this issue and how to improve communications.

Coordination meeting with USAID, Nangarhar

Differing Subsidies by NGOs CHAMP encounters with the problems of finding farmers as per its programming criteria because it requires a kind of contribution from the farmers who choose CHAMP as partner for establishing orchard. The reason is that other NGOs and military organizations especially in Kandahar and Helmand provinces provide all inputs for free while CHAMP requires a co-pay (contribution) arrangement. That is why for the short benefit farmers usually prefer working with the other organizations. While we have the advantage in sustainability as we look for the farmers who are really interested in the program and want to take care for their young orchards over a longer lasting period.

CHAMP Quarterly Report Oct-Dec 2011 Page: 10

The presence of heavily subsidized programs is detrimental to CHAMP’s longer-term trellising andorchard establishment activities and to the GIRoA and USAID development goals. Because high subsidies help implementing organizations to gain a rapid acceptance, but it harms the sustainability issues and has a negative direct impact on the organizations who struggle for more responsible environment and attitude of the beneficiaries.

Security There are mixed and scattered threats all over the implementing area. Current threats can delay specific activities, but no threat is causing a halt to operations.

GENDER ACTIVITES

Kitchen Gardening During the reporting period 150 beneficiaries were identified in Nangarhar, Helmand and Bamyan Provinces. Out of which 100 beneficiaries were provided with Onion seeds and fertilizers, 50 from Nangarhar and Helmand provinces. While in Bamyan the distribution was delayed because of the heavy snow and bad weather condition. As the situation improves the distribution in this area will be started. The village information is as follows:

Province District Village No of kitchen gardens

Nangarhar Behsud Taghar 50

Helmand Lashkargah Cartah Lagan 50

Bamyan Bamyan Center Qul Shahir 50

The beneficiaries in Nangarhar and Helmand provinces prepared the pieces of land and sowed the seed of Onion during the reporting period. As per the latest information from the field the onion seeds growth was good.

Poultry Farming Moreover, in Nangarhar and Helmand provinces, the poultry farms established in the previous quarter had started egg production. The egg production in the reporting period was as under:

CHAMP Gender Poultry Program - Egg Production (Quarterly update) Average per Beneficiary to Oct-Dec 2011 2011 (to date) Oct-Dec 2011 2011 (to date) Province date # of Eggs # of Eggs Value (Afs) Value (US$) Value (Afs) Value (US$) Eggs (Afs) (US$) Kandahar 10,867 40,509 67,838.0 1,398.7 228,525.0 4,711.9 1,620 9,141 188.5 Nangarhar 7,817 30,321 54,719.0 1,128.2 206,306.0 4,253.7 1,213 8,252 170.1 Helmand 5,976 28,443 36,069.0 743.7 172,664.0 3,560.1 1,138 6,907 142.4 Bamyan 6,415 23,128 37,841.0 780.2 128,668.0 2,652.9 925 5,147 106.1 Paktya 8,749 48,393 46,939.0 967.8 283,726.0 5,850.0 1,936 11,349 234.0 Total 39,824 170,794 243,406.0 5,018.7 1,019,889.0 21,028.6 1,366 8,159 168.2

CHAMP Quarterly Report Oct-Dec 2011 Page: 11

The beneficiaries are satisfied with the result of their poultry production units. They are benefitting from the good market prices of egg these days. They are receiving 7-8 Afs per egg a close total of 60- 70 Afs per day. While they still have the production of 8-10 eggs per day from their farms.

Chicken Feeder as part of CHAMP package

MARKETING SECTION ACTIVITIES

Chilled Grape Exports to New Delhi For the first time CHAMP changed the history of traditional export of grapes from northern Kabul. CHAMP supported one container of chilled grapes to New Delhi India. Traditionally, for the last 50 years grapes from Northern Kabul were exported to Pakistan using the old conventional methods. Under this traditional system the grapes were being exported in ordinary trucks using very poor packaging without sorting or grading. After reaching Pakistan, the Pakistani traders would resort and repack the grapes. They would then export the grapes to international markets under their own trademarks. Thus, Afghan grapes had no international recognition.

This time CHAMP supported Afghan Focus Company for a reefer shipment of grapes to India beyond the traditional market Pakistan. The process of grapes collection started in Mirbachakot Processing Center collecting from vineyards of of Kabul in early October 2011. Provision of collection baskets by CHAMP (as loan for a period of time), eased the process of collection and also ensured grapes reach the processing center safely maintaining its high quality as fresh as possible.

Moreover, CHAMP marketing team trained the packers in sorting, grading, cleaning of the grape bunches. They continued with assisting in packing, applying the pre-cooling process and finally storing the grapes into the reefer container. Applying these methods they successfully got ready the consignment s shipment within three days. On October 05, 2011 the grapes were on the way to India with a total onboard weight of 6.66 MT. The load contained 1037 boxes of grapes equal to

CHAMP Quarterly Report Oct-Dec 2011 Page: 12

4.66 MT accompanied with additional 112 boxes sample of apples equal to 2 MT. The apples were included to introduce Afghan apples to the Indian Markets.

Finally after 10 days travelling, the grapes consignment reached New Delhi on October 14, 2011. On unload the grapes were as fresh as when they were first packed which attracted high praise from Indian traders.

Chilled Grape Exports to India

Raisin Quality Improvement Program for Women Association CHAMP marketing team established a coordination relationship with an association for women farmers, Afghan Pride Women Association (APWA) based in of Kabul for quality improvement of their raisin production and to approach new profitable markets. The marketing team had several meetings with the members of the association in order to gather information regarding their current practice for producing raisins, maintaining quality and marketing their product.

To improve the quality of their raisins, CHAMP marketing team in coordination with the gender department distributed 19 square meters of mats to each of the 58 members of the association on October 10, 2011. In the follow up visit on 15 Dec 2011 the members of the association showed their full satisfaction with the mats for drying and told the team that they were then able to move their produce on mat whenever there was some risk from the weather or rain. They also requested for a broader training on drying and quality improvement of their products.

CHAMP Quarterly Report Oct-Dec 2011 Page: 13

Meeting with APWA association in Deh Sabz

Marketing Mission to Pakistan On October 10-15, 2011, two members of CHAMP marketing team travelled to Pakistan on a marketing fact finding mission regarding the current transit situation through Pakistan to India. The main aim of this visit was to meet transit related authorities, transport companies and fruit markets agents, and to check the demand for Afghan fresh fruit in the fresh fruit markets of Islamabad and Karachi. They met authorities of the transit departments, transport and goods forwarding companies, and clearing commission agents.

On 12 October 2011, the team met with Mr. Yaqoob Shaikh the CEO of Pyramid Logistic Company Limited. Issues and challenges faced by Afghan exporters were discussed in this meeting. Mr. Shaikh assured the team that they could provide assistance as required for the export of Afghan fresh fruits. The team met with two other companies’ representatives, Agility Transport Company Limited and Curius Pakistan Transport Company Limited to discuss marketing issues.

The team visited the Karachi and Islamabad fresh fruit markets and met with fruit commission agents and buyers. They had discussions about the demand of Afghan fresh fruits in the market. During the discussion it was discovered that the commission agents charge 10% commission to the gross sales on all types of fresh and dry fruits.

The team also had discussions and meetings with some other companies as;

• Karachi (Wholesales) Fresh Fruit Merchants and Commission Agents Association • Haji Abdul Rahman & Sons Fruit Commission Agency • Jaddah Fruit Company and Commission Agents • Haji Mohammad Karim and Haji Besmillah Company • Agha Fruit Company and Commission Agents • Chaman Fruit Company • Allah Bakhsh Fresh Fruit Commission Agent

CHAMP Quarterly Report Oct-Dec 2011 Page: 14

Afghan Exporters Participated in Indian International Trade Fair (IITF) Twenty-Six Afghan exporters and trading companies participated in the trade fair, of which 12 were newly introduced by CHAMP this year. The fair was held in New Delhi India on November 13-27, 2011. CHAMP facilitated the Afghan traders participation in the trade fair exhibition with support from ACE/ADF, AAIDO and MAIL. This annual trade show is organized by the Indian Government. Traders and exporters from around the world participate in this fair. Traders from Afghanistan have participated in the fair for the last few years through the facilitation of different programs including CHAMP, RAMP and ASAP.

CHAMP helped Traders and Exporters organize their products on the pavilion display. In addition CHAMP assisted the traders, exporters and MAIL in organizing meetings, business to business talks, and other bilateral discussions through its Trade Office India. The CHAMP marketing team provided its practical assistance from November 12, 2011 to November 19, 2011. Moreover, CHAMP arranged printing of 2,000 brochures and 2,000 business cards for each of the 26 participating trading companies, in order to help them advertise and promote their products to the participants in the trade fair.

On December 14, 2011, the CHAMP marketing team participated in a meeting to discuss the outcomes of the Afghan Traders’ participation in the Indian International Trade Fair in ACE/ADF office in Kabul. During the meeting, ACE requested the participating organizations to provide information regarding their sales from in the exhibition. ACE wanted to prepare an integrated comprehensive report on the Trade Fair. It is worth mentioning that CHAMP had already collected the necessary information and shared it with the participants.

Meeting on IITF at ACE on December 14, 2011

CHAMP Quarterly Report Oct-Dec 2011 Page: 15

IITTF Event in Dehi December 14, 2011

Dried Mulberry Quality Improvement Program and Export to Canada CHAMP marketing team arranged training for 100 mulberry producers in Estalif District of Kabul province in order to improve their dried mulberry quality and quantity. They were technically assisted in how to harvest, handle and how to dry their product in order to make it suitable for the international market. The team also distributed harvest baskets and tarpaulins to all the 100 mulberry producers the district. All this substantially improved the quality of their product. Meanwhile, CHAMP marketing team assisted the company’s packers in sorting, cleaning and packing of the dried product in order to introduce improved packed quality mulberries to the buyers in Canada.

Under CHAMP supervision, on December 19-25, 2011 Haidar Refat Company collected, processed and shipped 8MT of the dried mulberries to Canada, using 10 kg boxes packing.

Dried Mulberry exports to Canada (Loading in progress)

CHAMP Quarterly Report Oct-Dec 2011 Page: 16

Completion of two cool rooms in Wardak Province In order to enhance apple storage and extend the life of the fresh apple, CHAMP supported the construction of two cool rooms with a 75% CHAMP subsidy. One of these cool rooms was constructed in and the other was constructed in Maidan Shahr center of Wardak Province. CHAMP marketing team has been monitoring the construction process of the cool rooms. The team wanted to make sure these two pilots were constructed to our standard design and norms. The construction was completed on November 07, 2011. This was good news for the apple producers of the area as they were then able to store their fresh apple in the cool rooms and market them in the off-season this year. The apple collection process was already started to store in the cool rooms. As of the writing of this report the cool rooms are full.

Cool Room Construction in Wardak Province

Locally Manufactured Solar Drier Successfully Tested in Mirbachakot In continuation to its efforts to shift farmers and traders towards using new technology for drying fruit, CHAMP successfully tested a new type of Solar Drying that produces higher quality raisins. The Solar Drier was based on a German model ROP piloted in Badakhshan during the ALP North Program (funded by USAID). The German model proved effective, but carried a price of over $20,000. CHAMP work with local metal smiths to replicate the design at on quarter of the cost. The test was a success as the unit was drying grapes in just five days to raisin thus reducing the drying period from 35 days down to 5 days.

CHAMP marketing team used four different varieties for drying and found the best drying results with the solar machine. Grit count was substantially reduced since the grapes were not dried on the ground in the dirt.

CHAMP Quarterly Report Oct-Dec 2011 Page: 17

The trial project included 35 raisin producers in Mirbachakot District of Kabul Province. The basic aim of this training was to help the farmers dry their grapes in an efficient way, using less time, clean environment and to follow food safety standards, thus improving the quality of the dried fruit. Some of the main topics of the training were:

• What is a solar drier? And what are its functions? • For what products we can use it • Required types of grapes for quality raisin production • Cleaning, Sorting and Grading of Grapes • Arrangement of grapes in solar drier

The technical capacity building program was conducted in which the participants practically worked on the solar drying unit on October 20-25, 2011. They learned each and every step practically. Using the solar drier, depending on the weather conditions and the availability of the sun energy the grapes takes 3-5 days to dry. The farmers were shown the quality difference between the traditional drying method and drying using the Solar Drier.

Solar Drier Training, Mirbachakot, Kabul

CHAMP Quarterly Report Oct-Dec 2011 Page: 18

CHAMP supported a reefer shipment of apples to New Delhi India

In order to introduce quality Afghan apples in the Indian Markets, CHAMP marketing team assisted one of the Afghan exporters of apples in . CHAMP supervised the process of cleaning, sorting, grading, and packing of the apples collected from Jalriz District of Wardak Province. The team also helped the packers in packing the apples as per Indian market trends.

This trader was not familiar with exporting chilled fruits, but had good experience in local markets and exports to Pakistan. He was very willing to export chilled apples to India. As a continuation to its cold chain management experience CHAMP assisted the company with its expertise. All the pre- cooling practices were applied and the apples were successfully shipped.

On December 4, 2011 the reefer container started it journey with 10 MT of fresh apples on board. The shipment transited through Pakistan to India, crossing at Waga. Some holidays in Afghanistan and Pakistan made its travel longer than normal. Transit time ended up being nine days. Finally, the shipment reached in Delhi on December 13, 2011. Upon arrival the apples were as fresh as were at the time of packing and the packaging remained intact.

At the border crossing into India, the staff of the New Delhi Trade Office (Kabul Fruit Marketing and Trading Company) accepted the responsibilities for the shipment. The staff managed the customs clearance at the Waga Border crossing, the container transportation and its delivery to its destination. And finally the sale of the apples at the New Delhi wholesale market. The apples sold with a good .

Apple cleaning, grading and packing for chilled export

CHAMP Quarterly Report Oct-Dec 2011 Page: 19

MOU Signed for Establishing an Afghan Trade Office in Dubai On October 25, 2011, CHAMP and Takdana signed a MOU to establish the first ever Afghan Trade office in the United Arab Emirates (UAE). Similarly, EPAA signed the oversee section of the MOU and it will extend its support towards the establishment of the Trade Office.

The Afghan Trade Office in Dubai, UAE will mainly work to pave the way for Afghan fruits and vegetables to reach the UAE market. The office will assist Afghan exporters meeting the requirements of the wholesale, supermarkets and hypermarkets in the UAE.

Takdana Company will manage and run the Afghan Trade Office in Dubai UAE. They will receive the benefit of extending their own business to the UAE markets. Besides, they will provide support to other Afghan businessmen and exporters in establishing contacts, making deals, compiling the required documents and facilitating their payments. In this way, it is expected that there will be a boost in the fruits and vegetables exports to UAE markets from Afghanistan.

Furthermore, some of the expected results from the office will be:

• Explore the United Arab Emirates markets for the Afghan fruits demand • Try to establish long term business relationship between the Afghan and the UAE traders • Make Dubai a hub for Afghan Horticulture products to all Gulf countries as well as the Europe • Ensure Afghan traders are informed and have sufficient information regarding any Trade show or Exhibition held in Dubai • Be a self-sufficient and independent institution which will charge a minimal fee for services by the year 2013 Thus, the Afghan Trade Office in Dubai will be a center of business relations and exchange of trade between Afghanistan and the rest of the world that can be accessed through Dubai.

Training on Apple Marketing and Off-Season Storage Program A two-day training on apple marketing and storing program was conducted in Maidan Wardak Province by CHAMP Team in two different sessions on 10-11 December and 12-13 December 2011. A total of 100 farmers participated in the training from the three districts of Maidan Shar, Jalrez and Chak.

The Maidan Wardak DAIL Director inaugurated the training describing the importance of such trainings in building the capacity the farmers and fresh fruit growers. He explained the benefits of the training to the apple producers and also thanked CHAMP team for its efforts in conducting such trainings in Maidan Wardak Province.

The training comprised of the latest methods for increasing the quality of the produce, storing the apples, and applying different techniques to improve the harvest. CHAMP Master Trainer and CHAMP Marketing Specialist facilitated the training.

CHAMP Quarterly Report Oct-Dec 2011 Page: 20

Finally, the participants were presented with a certificate honored by the Head of Cooperatives and Extension of Maidan Wardak. Moreover, the DAIL officials requested for extension of the training to other areas of the province so that more of the apple growers could get the knowledge to improve their harvest quantity and quality.

Two Pre-Cooling units Established at Cold Storages CHAMP is assisting the Afghan fresh fruit traders in many ways, as familiarizing traders with using reefer container for exporting chilled fruits, subsidizing cold rooms building, enhancing cold storage capacities and providing them with better equipment for pre-cooling purposes. Previously, CHAMP had provided subsidized pre-cooling units for Kandahar and Maidan Shar cold storages.

320 MT fresh apples were stored in Maidan Shar cold storage in 2010. But the result was not as good as expected because the storage did not have the pre-cooling unit. That is why, CHAMP provided one pre-cooling unit for the storage in 2011 that significantly increased the shelf life the fresh apples thus completing the cold-chain cycle.

Similarly, the Turkish PRT had built a cold storage in Said Abad District of Wardak province in 2009 with a capacity of 1000 MT. But due to high security risk the space has not used for storage purposes yet. In 2011 Haji Aminullah president of Beradaran Takana Sofla Company Limited rented the cold storage for 200,000 Afs ($4000) per annum rent. This cold storage had all the necessary equipment, but again the pre-cooling unit was missing. In the month of November 2011, CHAMP provided the company with two pre-cooling units at 50% subsidy of the total cost

CHAMP Quarterly Report Oct-Dec 2011 Page: 21

Pomegranate Trade Promotion Visit to Dubai CHAMP facilitated the visit of a pomegranate trader Mr. Nazar Mohammad President of Kandahar Fresh Fruits Association to Dubai. There he was introduced to the traders from other origins and the buyers in Dubai. This trip was a good opportunity for the trader to observe pomegranate qualities, packaging, and value addition. The trader collected good information and knowledge of the practices to apply to pomegranate to make it exportable to the Dubai Market.

An air-shipment of pomegranate from the same trader was supported by ARD from Kandahar to Dubai. This consignment was exported by the Kandahar Fresh Fruits Association (KFFA) to Ishan General Trading Company in Dubai. Although there was increased competition in the Dubai Market, the Afghan Pomegranates received a good reception. This event was a good learning opportunity for the Pomegranates exporting community in Afghanistan.

The following four people went together on this trade visit on December 4-10, 2011. i. Mr. Mohammad Shafi Anwary, CHAMP Marketing Director ii. Mr. Abdullah Rahimi, CHAMP Marketing Assistant iii. Mr. Nazar Moahmmad, President Kandahar Fresh Fruits Association (KFFA) iv. Mr. Andres Judeh, President of Agrilinks Company (IRD Contract for this Mission)

CHAMP Marketing Representatives with Kandahar Exporters CHAMP Marketing Specialist in Kandahar participated in a meeting arranged by ACCI at Governor’s Office to discuss the issues faced by the exporters and traders of the province, on December 13, 2011. The participants were Kandahar Director of Economics Department, officials from the provincial Municipality, Agriculture, Custom and Revenue directorates, and a representative from each KPRT, USAID, ADA, IRD and ROP.

During discussion, it was discovered that one of the main problems for the Kandahar exporters was getting reefer container shipments to any international market beyond Pakistan, because of the trace obstacles placed by Pakistan to cross their territory. The participants unanimously agreed that the number one priority was to over come this obstacle. They agreed to work together to find other business corridors for their access to international markets.

In the year 2010 chilled grapes were exported to India from Kandahar that had good experience and profit to the traders. But due to the lack of reefer containers and transit problems the traders were not able to repeat the exercise this year. There is a need of broader solution for this issue that requires many stakeholders attention and close coordination.

CHAMP Quarterly Report Oct-Dec 2011 Page: 22