Ministry of

Industry and Commerce

Islamic Republic of Afghanistan

AFGHANISTAN’S
NATIONAL EXPORT STRATEGY 2018-2022

DRIED FRUITS
AND NUTS SECTOR
A taste of Afghanistan
shared around the world
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AFGHANISTAN
NATIONAL EXPORT STRATEGY
2018-2022
DRIED FRUITS AND NUTS SECTOR

Ministry of
Industry and Commerce
Islamic Republic of Afghanistan
This project is funded
by the European Union
 iii

ACKNOWLEDGEMENTS

The Dried Fruits and Nuts 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 collabora-
tion with the Ministry of Agriculture, Irrigation and Livestock ( MAIL ), the Afghanistan
National Standards Authority ( A NSA ) and the Afghanistan Women Chamber of
Commerce and Industry. The Strategy benefited from the contributions of sector
stakeholders and associations, 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 with a view to in-
creasing export performance and social dividends.
iv

NOTE TO THE READER

Afghanistan’s NES was developed based on a participatory approach during which

over 500 Afghan industry leaders, small business owners, farmers and public
sector representatives held consultations to reach consensus on key sector com-
petitiveness 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:

ƒƒ Factory visits through which supply chain assessments were carried out to gain
further knowledge on key issues such as quality procedures, technical skills, lean
management, quality of raw materials, access to market, etc.
ƒƒ 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.
ƒƒ Donor coordination meetings to identify synergies with ongoing / planned ini-
tiatives of development partners to eventually result in collaboration during the
implementation phase.

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 youth and women’s economic
empowerment.

Equally important, the NES initiative already accommodates budgeting 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,

offering 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 Support
Functional Strategies:

ƒƒ Quality management
ƒƒ Trade facilitation
ƒƒ Trade information and promotion
ƒƒ Skills development
ƒƒ Business and professional services
ƒƒ Access to finance

Individual NES priority sector documents:

ƒƒ Saffron
ƒƒ Fresh fruits and vegetables
ƒƒ Dried fruits and nuts
ƒƒ Carpets
ƒƒ Marble and granite
ƒƒ Precious stones and jewellery
vi

CONTENTS

Acknowledgementsiii
Note to the reader iv

EXECUTIVE SUMMARY 1
Strategic objective 1 : Increase volumes of production through better sector coordination,
intensification of market-driven production and reduced spoilage. 1
Strategic objective 2 : Enhance food safety and quality assurance by fostering the adoption
of enhanced processing methods. 2
Strategic objective 3 : Reclaim Afghanistan’s prominent global reputation through improved packaging
and sound market insertion strategies. 2

TRAJECTORY OF THE GLOBAL SUPPLY CHAIN AND ENTRY POINTS FOR AFGHAN
EXPORTERS 5
PRODUCT MAP 5

SWEET OUTLOOK FOR THE SECTOR AS GLOBAL DEMAND CONTINUES TO GROW 6

A MIXED BAG OF PLAYERS AND STRATEGIES 8

GROWTH OF EUROPE AND ASIA AS IMPORTING REGIONS 8

LEADING IMPORTERS BY PRODUCT 9

A FEW COUNTRIES DOMINATE GLOBAL SUPPLY FOR MOST PRODUCT TYPES 13

LEADING EXPORTERS BY PRODUCTS 14

MAIN DRIED FRUITS AND NUTS SUPPLIERS AND STRATEGIES 16

United States 16
Turkey17
Islamic Republic of Iran 17
Germany18
Spain18

AFGHANISTAN’S DRIED FRUITS AND NUTS VALUE CHAIN 19

CURRENT VALUE CHAIN OPERATIONS 19
Production of dried fruits and nuts 19
Dried fruit and nut processing 19
Value addition facilities 20
Distribution20
 vii

Domestic market 20
International market 20
Fragmented production ecosystem leads to opportunistic rather than demand-driven sector production 22
Low levels of technology characterize Afghan dried fruit and nut processing 22
Unmet financial needs across the value chain 23
Packaging and branding remain major sector weaknesses 23

AFGHANISTAN’S CURRENT EXPORT PERFORMANCE 24

SOME TOUGH NUTS TO CRACK : A SERIES OF CHALLENGES PREVENTING SECTOR GROWTH 29

IN A NUTSHELL : POSITIONING THE AFGHAN DRIED FRUITS AND NUTS SECTOR

IN THE GLOBAL MARKET 39
MARKET IDENTIFICATION 42
Short-term phase 42
Medium-to-long-term phase 47

ACHIEVING THE GOALS : VISION AND STRATEGIC OBJECTIVES 51

VISION51
Strategic objective 1 : Increase volumes of production through better sector coordination,
intensification of market-driven production and reduced spoilage. 51
Strategic objective 2 : Enhance food safety and quality assurance across the value chain by fostering
the adoption of enhanced processing methods. 53
Strategic objective 3 : Reclaim Afghanistan’s prominent global reputation through improved packaging
and sound market insertion strategies. 55

MOVING TO ACTION 57
KEY REQUIREMENTS FOR EFFECTIVE IMPLEMENTATION 57
Establish and operationalize a public and private coordinating body and executive secretariat 57

PLAN OF ACTION 59
viii

FIGURES

Figure 1 : Theory of change 3

Figure 2 : Product map - Dried fruits and nuts 5
Figure 3 : World exported value of dried fruits and nuts, 2005–2016 ( US $ thousands ) 13
Figure 4 : Current value chain – dried fruits and nuts 21
Figure 5 : Afghan exports of dried fruits and nuts, 2008–2016 ( US $ thousands ) 24
Figure 6 : Afghan export basket, dried fruits and nuts, 2008 25
Figure 7 : Afghan export basket, dried fruits and nuts, 2016 25
Figure 8 : Afghanistan’s top 10 export destinations 2008 ( US $ thousands ) 26
Figure 9 : Afghanistan’s top 10 export destinations 2016 ( US $ thousands ) 26
Figure 10 : Problem tree : challenges to compete 32
Figure 11 : Problem tree – challenges to connect 35
Figure 12 : Problem tree – challenges to change 38
Figure 13 : Market segments according to price ranges 40
Figure 14 : Export potential to India – figs 44
Figure 15 : Export potential to India – dried grapes 44
Figure 16 : Export potential to India – dried apricots 44
Figure 17 : Export potential to India – fresh or dried nuts 44
Figure 18 : Export potential to the UAE – dried grapes 46
Figure 19 : Export potential to the UAE – fresh or dried pistachios 46
Figure 20 : Export potential to Germany – dried grapes 48
Figure 21 : Export potential to the United States – dried figs 50
Figure 22 : Future value chain – strategic objective 1 52
Figure 23 : Future value chain – strategic objective 2 54
Figure 24 : Future value chain – strategic objective 3 56
 ix

TABLES

Table 1 : Top world importers of dried fruits and nuts 8

Table 2 : Leading almond importers worldwide 9
Table 3 : Leading raisin importers worldwide 10
Table 4 : Leading pistachio importers worldwide 10
Table 5 : Leading dried apricot importers worldwide 11
Table 6 : Leading dried fig importers worldwide 11
Table 7 : Leading dried fruit and nut exporters worldwide 13
Table 8 : Leading almond exporters worldwide 14
Table 9 : Leading raisin exporters worldwide 14
Table 10 : Leading pistachio exporters worldwide 15
Table 11 : Leading dried apricot exporters worldwide 15
Table 12 : Leading dried fig exporters worldwide 16
Table 13 : Main processing methods 23
Table 14 : Afghanistan’s top five export destinations for almonds 26
Table 15 : Afghanistan’s top five export destinations for raisins 27
Table 16 : Afghanistan’s top five export destinations for pistachios 27
Table 17 : Afghanistan’s top five export destinations for dried apricots 28
Table 18 : Afghanistan’s top five export destinations for dried figs 28
Table 19 : Afghanistan’s dried fruits and nuts market potential by subproduct 41
Table 20 : Short-term phase ( 0–3 years ) 42
Table 21 : Medium to long-term phase 47
x

BOXES

Box 1 : Specific products forecast 12

Box 2 : Implications for Afghanistan 12
Box 3 : Implications for Afghanistan 18
Box 4 : Women in the dried fruits and nuts value chain 22
Box 5 : Export potential to India of selected products 44
Box 6 : Export potential to the UAE of selected products 46
Box 7 : Export potential to Germany of selected products 48
Box 8 : Export potential to the United States of selected products 50
Box 9 : NES focus 50
 xi

ACRONYMS

The following abbreviations are used :

ACCI Afghanistan Chamber of Commerce and Industries MoCI Ministry of Commerce and Industries

ANNGO Afghanistan National Nursery Growers’ Organization MoF Ministry of Finance

ANSA Afghanistan National Standards Authority MoFA Ministry of Foreign Affairs

AREU Afghanistan Research and Evaluation Unit MoLSAMD Ministry of Labour, Social Affairs, Martyrs and
Disabled
ARFVEPA Afghan Raisins, Fruits and Vegetables Export
Promotion Administration MoRRD Ministry of Rural Rehabilitation and Development

B2B Business-to-business MSMEs Micro, small and medium-sized enterprises

CAGR Compound Annual Growth Rate NES National Export Strategy

EU European Union PoA Plan of action

ISPM International Standards For Phytosanitary Measures SMEs Small and medium-sized enterprises

ITC International Trade Centre SPS Sanitary and phytosanitary

MAIL Ministry of Agriculture, Irrigation and Livestock UAE United Arab Emirates
Photo: Dried Fruits & Nuts, FOX28933.jpg

EXECUTIVE SUMMARY
The dried fruits and nuts sector has historically been one
of Afghanistan’s leading categories for exports. Afghan rai-
sins, in particular, once held a dominant position in world
markets prior to Afghanistan being subsumed by warfare
in the 1980s.
Afghanistan produces a wide array of dried fruits and
nuts ( with many different varieties of raisins and almonds
alone ), with unique tastes that have attracted buyers
throughout the region. This sector has played a critical
role in the post-2001 reconstruction period, filling out
Afghanistan’s export basket and setting the foundations for
strong export growth in the future.
Afghanistan’s weather and soil conditions are well-suited
for the production of fruits and nuts, with local producers
possessing a wealth of expertise on traditional processing
methods for fruit drying and nut roasting and shelling. While
these traditional methods have kept the sector producing
and exporting through very difficult times, they have also
constrained the sector’s future potential. Traditional methods
have kept output volumes low, limiting economies of scale
and keeping prices relatively high ( especially compared with
industrial-level dried fruits and nuts operations in the United
States of America ). More alarmingly, traditional methods
have led to quality and food safety concerns for buyers ( and
governments ) in Western markets. This has severely limited
the diversity of Afghanistan’s export destinations and cut
off access to buyers in developed markets willing to pay
premium prices for premium products.
At present, Afghan exports of dried fruits and nuts are
concentrated in a few regional markets, namely India and
Pakistan. This leaves the sector with exciting opportunities
to expand its export reach in both the East and the West,
but this can only be accomplished with a concerted effort to
develop a premium brand and address quality control and
food safety issues.
Unlocking the full potential of Afghanistan’s dried fruits
and nuts sector will require improvements throughout the
cultivating, harvesting and processing stages of production.
Following targeted interventions along the value chain, the
gains achieved in terms of volume and quality of production
outputs have implications beyond boosting export figures.
Work producing dried fruits and nuts is labour-intensive, with
entire households and communities contributing to different
activities along the value chain. Women often play a sig-
nificant role during the harvesting and processing stages,
thereby elevating their status as contributors to household
incomes. A thriving dried fruits and nuts sector will inevitably
lead to improvements in the quality of life of the communities
connected to the sector.
[ EXECUTIVE SUMMARY ]
1
Recognizing these opportunities and challenges, public
and private sector stakeholders have joined forces to de-
velop this Dried Fruits and Nuts Sector Export Strategy. This
Strategy is driven by the following overall vision :
“
 Afghan dried fruits and nuts :
a taste of Afghanistan shared
”
around the world 
To achieve this vision, the Strategy focuses on three strate-
gic objectives.
STRATEGIC OBJECTIVE 1 :
INCREASE VOLUMES OF PRODUCTION
THROUGH BETTER SECTOR
COORDINATION, INTENSIFICATION
OF MARKET-DRIVEN PRODUCTION
AND REDUCED SPOILAGE.
This strategic objective aims to improve both quality and
volume of production. It will improve the availability of high-
quality agricultural inputs and true-to-type seedlings ( e.g. for
almond orchards ) to achieve consistent yields and product
quality. As one element of the Strategy, farmers will be en-
couraged to specialize in crops that sell at premium prices in
international markets. Opportunities to increase production
levels ( e.g. by expanding land under irrigation and consoli-
dating existing plots ) will be pursued, with the concurrent
goal of lowering costs by achieving economies of scale.
Supporting the formation and operations of produc-
ers’ associations, along with improving access to working
capital for both producers and traders, are critical elements
of this strategic objective. Finally, conducting research
documenting the wide array of fruits and nuts produced in
Afghanistan, including analysis of each type’s export pros-
pects, will allow for more advanced strategy development
to take place in the future.
2
STRATEGIC OBJECTIVE 2 :
ENHANCE FOOD SAFETY AND QUALITY
ASSURANCE BY FOSTERING THE
ADOPTION OF ENHANCED PROCESSING
METHODS.
This strategic objective is focused on improving the sec-
tor’s access to international markets by increasing food
safety compliance and providing better quality assurance.
This must take place across the value chain, through the
various stages of cultivation, harvesting and processing. It
also requires enhancing the capacity of Afghan government
agencies to identify and halt substandard or contaminated
shipments of dried fruits and nuts.
One way to achieve this is through the establishment of
farmer field schools that will demonstrate improved agricul-
tural techniques through practical training. To improve pro-
cessing practices, it is critical to train and certify both male
and female agricultural extension service providers who can
provide insights on processing methods that are best able
to prepare products for international sale. In both cases, the
goal of the interventions is to boost production volume and
improve quality control.
Steps must be taken to increase awareness among
sector enterprises of the sanitary and phytosanitary ( SPS )
measures that must be taken for their products to satisfy
food safety requirements in target markets. While one nec-
essary step is voluntary compliance by producers, another
is improving the quality certification process and upgrad-
ing the Afghan Government’s ability to enforce quality
standards.
In order to fund necessary upgrades in cultivation and
processing capacity, options should be explored to improve
access to finance for both farmers and processing enter-
prises. Such financing could take the form of increased
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]
Photo:Screenshotsofvideo,AAT_NES_screenshots_promotionalvideo(50).png
microfinance lending, larger-scale commercial loans to pay
for processing machinery, and equity investments in the
sector to build new processing facilities and upgrade ex-
isting ones. Improving processing capacity through invest-
ment promotion will be crucial. One key activity will be the
establishment of an agro-industrial park as a pilot initiative.
STRATEGIC OBJECTIVE 3 :
RECLAIM AFGHANISTAN’S PROMINENT
GLOBAL REPUTATION THROUGH
IMPROVED PACKAGING AND SOUND
MARKET INSERTION STRATEGIES.
To improve the position of Afghan dried fruits and nuts in
the global market, it is vital to build the sector’s capacity to
market and package its products. This involves tangible up-
grades in packaging capacity as well as building soft skills
in marketing and market analysis.
As part of the short-term strategy for the sector, oppor-
tunities to increase sales in existing markets through more
attractive packaging will be pursued. The development and
dissemination of market intelligence is another component
of this strategic objective, with capacity-building for sector
enterprises on how to use available market research to iden-
tify priority markets and time the sale of products to obtain
optimal prices.
Another focus will be activities that improve in-market
support services. This will include assisting sector enter-
prises to participate in international trade fairs and exhibi-
tions. Finally, targeted marketing efforts will be undertaken
in selected regional and international markets to improve
the positioning of the Afghan brand for dried fruits and nuts.
Figure 1 captures the dried fruits and nuts sector vision
and strategic objectives.
 3

Figure 1 : Theory of change

IMPACT

A competitive and organized sector responding to market demands for high-quality exports
of dried fruits and nuts

Vision

Afghan dried fruits and nuts:

a taste of Afghanistan
STRATEGIC OBJECTIVES

shared around the world

1. Increase volumes of 2. Enhance food safety and 3. Reclaim Afghanistan’s

production through enhanced
sector coordination, intensifica-
tion of market-driven production
and reduced spoilage
STRATEGIC THRUSTS
quality assurance by fostering prominent global reputation
the adoption of enhanced through improved packaging and
processing methods sound market insertion strategies

Position
Increase Ensure Gradually Optimize time Improve Afghan dried
volumes of food-safety upgrade the of entry in key packaging and fruits and nuts
production compliance of quality of markets marketing as a mid-level
and exports final products production / premium
product
IMPACT

An unorganized sector unable to fulfil its export potential, in spite of a vast range of globally demanded
fruit and nut varieties

Compete Connect Change

• Inconsistent availability • Lack of timely delivery • Weak access to working

of raw materials and critical and investment capital
• Limited packaging and
SITUATION ANALYSIS

inputs
branding of products • Poor investment in R&D
• Inadequate processing
• Insufficient in-market • Lack of expertise in marble
techniques
support and granite production
• Insufficient access
• Weak provision of market • Limited access to quarry
to working capital
intelligence services and land permits
• Weak implementation
• Weak coordination among • Weak management skills
of quality management
value chain actors
and food safety practices

[ EXECUTIVE SUMMARY ]
Photo: Dried Fruits & Nuts, FOX16523.jpg
 5

TRAJECTORY OF THE GLOBAL

SUPPLY CHAIN AND ENTRY POINTS
FOR AFGHAN EXPORTERS

PRODUCT MAP
Considering the wide array of products that fall under the The food industry is the main market segment for dried fruits
dried fruits and nuts sector, there is a broad spectrum of and nuts, and the primary use of them in this industry is as a
potential applications that go beyond the food industry. raw material, in many cases in whole form as a snack food.
Research on alternative uses, particularly for nuts, continues
to reveal opportunities for product diversification.

Figure 2 : Product map - Dried fruits and nuts

Dried fruits and nuts

Miscellaneous
Food processing
e.g. cosmetic
industry
industry

Confectionary Breakfast Bakery Other food

Snack industry
industry cereal industry industry industries

Source : CBI ( 2017 )

[ TRAJECTORY OF THE GLOBAL SUPPLY CHAIN AND ENTRY POINTS FOR AFGHAN EXPORTERS ]
6

Snack industry
The snack industry typically does minimal processing of
dried fruits and nuts ; for instance, roasting or coating. This
particular segment is dominated by branded products which
are sold through retail outlets, although alternative distribu-
tion channels such as e-commerce platforms continue to
grow in popularity. These products are also used as a raw
material in energy and snack bars ( in some cases branded
as ‘breakfast bars’ ). These bars are in increasing demand
in Western markets owing to their convenience.

Confectionary industry
The confectionary industry, particularly the chocolate indus-
try, is one of the largest industrial users of nuts as a raw
material ( especially pistachios and almonds ). Dried fruits
are also becoming increasingly popular in a wide array of
products, such as premium dark chocolate-coated apricots
and peach chunks. A notable trend is the progressive shift
to high-tech drying and processing technologies, with the
objective of improving food safety and quality control. As
both nuts and dried fruits are perceived as healthy, the con-
fectionary industry promotes their use in products to appeal
to health-conscious consumers. Photo:Screenshotsofvideo,AAT_NES_screenshots_promotionalvideo(57).png

Breakfast cereal industry

The breakfast cereal industry also uses dried fruits and nuts
as ingredients in the production of biscuits, cereals and
muesli. Raisins are used whole, while other types of dried
fruits and nuts are sliced thinly ( in the case of almonds ) or
cubed ( in the case of peaches and apricots ).
Baking industry
Other food applications
Dried fruits and nuts have countless applications in the food
industry that cannot be easily labelled and categorized. Nuts
are an especially popular ingredient in ice cream, for exam-
ple, while also being used as milk substitutes ( almond milk ),
cooking oil ( almond and pine nuts ) and food supplements
( protein powder ).

This industry is of particular relevance in Europe. Although Miscellaneous

typically bakeries obtain their ingredients from specialized
European companies, some larger enterprises source their in- Nuts have diverse applications across different industries.
gredients directly from importers. The most relevant dried fruits Almonds, for example, are used in cosmetics and skin
and nuts for this segment are raisins, almonds and walnuts. creams, and as a raw material in the pharmaceutical industry.

SWEET OUTLOOK FOR THE SECTOR

AS GLOBAL DEMAND CONTINUES TO GROW
Consumers in both developed and developing countries are
increasing their consumption of dried fruits and nuts with the
rise of health-conscious eating habits. Dried fruits and nuts
are characterized by high levels of unsaturated fats, vitamins
and protein content. The latter is particularly important, as
consumption trends are shifting towards protein-rich and
protein-fortified products. The health benefits of dried fruits
and nuts are not only boosting their consumption as a snack
( in minimally processed form ) but also as a raw ingredient
in confectionary and baked goods, and in gluten-free and
vegan products. It should also be noted that, health benefits
aside, dried fruits and nuts are delicious.
The growing popularity of ‘natural’ food products – i.e.
individually-packaged or minimally processed organic

[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]

food products – is particularly consequential for the sec-
tor in developed markets. Examples of such foods include
snack-sized mixed dried fruit and nut packs, snack bars and
breakfast bars infused with whole or minimally processed
dried fruits and nuts, and breakfast cereals like muesli that
use dried fruits and nuts as key ingredients.
While demand in developed countries is growing at a
sustained pace, emerging markets, particularly in the Asia–
Pacific region, are the fastest-growing markets worldwide.
Besides health considerations, the expansion of the middle
class in this region, with the resulting increase in incomes,
means that dried fruits and nuts are more affordable.
Considering trends in different markets around the world,
it is likely that global demand for dried fruits and nuts will
continue to grow. This does not mean that Afghan dried
fruits and nuts enterprises will automatically benefit from this
global trend. Competition in this sector is intense, with major
international suppliers like the United States able to ramp up
production to meet the increase in demand. With the United
States and other competitors engaging in industrial-scale
farming and processing, and thereby benefiting from econo-
mies of scale, they are currently able to undercut Afghan
producers in both price and quality.
For Afghan dried fruits and nuts products to capture a
larger share of the global market, the following factors must
be taken into consideration.
Food safety requirements
The most basic requirement for export is food safety compli-
ance. A common contaminant in dried fruits is mycotoxins,
which have forced developed countries to impose special
procedures for imports from developing countries. High lev-
els of mycotoxins, particularly ochratoxins, have badly dam-
aged prospects for Afghan raisin exports to EU countries.
Consistency and reliability of supply
To forge a strong relationship with international buyers,
exporters must ensure reliability of supply. This is crucial
whether the buyer is a retailer or food processor.
Bulk versus retail sale
Around the world, dried fruits and nuts enterprises have two
options for selling their products. They can either sell their
products in bulk to food processing companies or they can
attempt to perform their own basic value addition. This could
involve salting or sugar-coating the dried fruits and nuts and
then packaging them for retail sale.
Packaging for retail sales
Directly related to the increase in health consciousness
among consumers in developed markets is the aware-
ness of portion control. As a result, dried fruits and nuts
[ TRAJECTORY OF THE GLOBAL SUPPLY CHAIN AND ENTRY POINTS FOR AFGHAN EXPORTERS ]
7
are expected to be packaged in smaller, ready-to-eat forms
( e.g. mixed dried fruit and nut snack packs and snack bars ).
While attractiveness and convenience are important, efforts
to improve packaging for the sector should also aim to ex-
tend product shelf life.
Increasing demand for transparency in global
value chains
Consumers in developed markets are increasingly con-
cerned about ethical business practices in global value
chains. The dried fruits and nuts sector is not exempt from
this trend. There is growing pressure from consumers for
package labelling to not only include information on nutri-
tion but also identify the origin of raw materials and provide
assurances that raw materials were purchased with sustain-
ability and fair trade principles in mind.
Evolving channels of distribution
A major global trend is the increasing popularity of e-com-
merce platforms to sell and buy products. For sellers, this
provides the opportunity to vastly broaden their potential
consumer base. The Chinese e-market for nuts alone is esti-
mated to be valued at US $ 1.2 billion. Globally, e-sales of nuts
are growing at an estimated annual rate of 14 %. This trend
is driven by wider access to the Internet, improvements in
delivery services and higher levels of online impulse buying.
Improved processing technology
Dried fruit and nut enterprises are putting more effort into
improving drying and processing technologies, in order
to improve food safety and quality control. This includes a
gradual shift from sun-drying techniques to more sophisti-
cated technologies such as freeze-drying ( lyophilization ).
There is significant demand from the bakery and breakfast
cereal industries for freeze-dried fruits.
Concern over sugar and fats
While the conventional view is that dried fruits and nuts are
inherently healthy, there are dissenting views that occasion-
ally threaten to hurt sales. Consumers are often concerned
about the sugar concentration in dried fruits, while nuts do
contain notable levels of fats ( even if most nutritionists agree
that they are healthy fats ). Industry players must monitor this
trend and adjust accordingly by revising and adapting their
packaging and marketing strategies.
Transportability
An important factor that impacts the export of dried fruits is
the reliability and cost-effectiveness of transport. Air trans-
port is more reliable but also more expensive. Land trans-
port is slow compared with air transport.
8

A MIXED BAG OF PLAYERS AND STRATEGIES

Global imports of dried fruits and nuts are fairly diversi-
fied across the world, with a handful of countries serving
in the role of regional re-exporters. In Europe, for example,
Germany and Spain purchase dried fruits and nuts in bulk,
perform various types of value addition, and then supply
their neighbours in the European market.
The United States is the leading importer of dried fruits
and nuts in the world, with imports reaching US $ 2.3 billion
in 2016. The United States predominantly imports cashew
nuts ( accounting for more than 50 % of all global cashew
imports ), which do not grow in the country.
The second-largest fruits and nuts importer is Germany,
with an import total of US $ 2.1 billion in 2016. Germany
is one of the major re-exporters for the European market
for nuts, few of which Germany produces domestically. A
similar European re-exporter of nuts, especially almonds,
is Spain. With US $ 1.1 billion in dried fruit and nut imports,
Spain comes in as the fifth-largest importer worldwide.
Asia’s largest re-exporter is Hong Kong ( China ), with
US $ 1.5 billion in dried fruits and nuts imports in 2016. Hong
Kong ( China ) mainly supplies the Asian and Middle East
markets, where there is great demand for nut-based snacks.
India is a large consumer of dried fruits and nuts, with
2016 imports standing at US $ 1.2 billion. Growth in imports
has been driven by the country’s rapid economic develop-
ment and population growth. Viet Nam, which is experienc-
ing similar socioeconomic trends to India, is the sixth-largest
importer of dried fruits and nuts.

Table 1 : Top world importers of dried fruits and nuts

Imported value in 2016 (US$ Compound Annual Growth Rate

Importers Share of world imports (%)
thousands) (CAGR) 2012–2016 (%)
United States 2 314 863 11.95 9.54
Germany 2 158 803 6.32 6.75
Hong Kong ( China ) 1 527 137 -1.40 5.36
India 1 212 919 15.92 5.15
Spain 1 164 730 12.67 5.03
Viet Nam 1 138 173 154.28 4.77
Netherlands 1 079 435 5.76 4.63
United Kingdom 1 048 627 5.38 4.17
Italy 944 600 8.39 3.96
France 896 867 6.99 2.98

Source : ITC.

GROWTH OF EUROPE AND ASIA

AS IMPORTING REGIONS
While global imports of dried fruits and nuts stood at US $ 10
billion 10 years ago, this number more than doubled by
2016, to US $ 22.6 billion. Europe and Asia account for 80 %
of imported dried fruits and nuts worldwide. The highest
growth in demand is occurring in Asia, with leading import-
ers in the region including China, India and Viet Nam, all
of which are experiencing rapid economic development.
European countries, which are increasingly conscious about
maintaining a healthy and balanced diet, have increased
their consumption of dried fruits and nuts in recent years
( with increased imports to meet demand ).
Another enticing market for dried fruits and nuts is the
Middle East, which increased its imports to almost US $ 2 bil-
lion between 2006 and 2016. Growth is driven by the United
Arab Emirates ( UAE ), Turkey and Saudi Arabia, which pre-
dominantly import nuts.

[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]
 9

Figure 2 : Imports by region, 2006 and 2016 ( US $ thousands )

12.000.000

10.000.000

8.000.000

6.000.000

4.000.000
2.000.000

-
Europe Asia America Middle East Oceania Africa

2006 2016

Source : ITC.

LEADING IMPORTERS BY PRODUCT

While Afghanistan exports a wide variety of dried fruits and
nuts, this section will take a focused look at the main prod-
ucts within the sector in which Afghanistan is competitive
globally. These include almonds, raisins, pistachios, dried
apricots and dried figs. In the future, other products – in-
cluding pine nuts, dried plums ( prunes ) and dried cherries –
should be analysed in-depth as well.
Almonds
A major importer – and re-exporter – of almonds is Spain,
with imports of US $ 741 million in 2016. Another major re-
exporter is Germany, which had a global import share of
10 % in 2016. Asian countries such as India and Viet Nam
import almonds for consumption rather than re-export, with
global import shares of 11 % and 5 %, respectively. As previ-
ously noted, Hong Kong ( China ) is the re-exporting hub in
Asia, importing US $ 493 million of almonds in 2016.

Table 2 : Leading almond importers worldwide

Importers Imported value in 2016 ( US $ thousands ) CAGR ( % ) Share in world imports ( % )
Spain 740 867 20 11
India 693 109 16 11
Germany 644 960 9 10
Hong Kong ( China ) 493 082 -3 8
Viet Nam 332 811 270 5

Source : ITC.

[ TRAJECTORY OF THE GLOBAL SUPPLY CHAIN AND ENTRY POINTS FOR AFGHAN EXPORTERS ]
10

Raisins
The world’s largest raisin importer is the United Kingdom,
with imports of raisins reaching US $ 219 million in 2016.
British consumers predominantly consume raisins origi-
nating from Turkey. Other high-volume European import-
ers were Germany and the Netherlands, with global import
shares of 10 % and 6 % respectively. In East Asia, Japan is
the leading raisin importer, with US $ 90 million in imports in
2016. In the West, Canada is the dominant raisin importer,
with total imports of US $ 65 million in 2016.
Photo: Dried Fruits & Nuts, FOX29110.jpg

Table 3 : Leading raisin importers worldwide

Importers Imported value in 2016 ( US $ thousands ) CAGR ( % ) Share in world imports ( % )
United Kingdom 218 666 -6 13
Germany 165 502 -3 10
Netherlands 99 072 -7 6
Japan 89 912 -1 6
Canada 64 899 -3 4

Source : ITC.

( 28 % of all world imports ). Impressive growth in demand

Pistachios
Three Asian economies are among the largest importers of
pistachios worldwide : Hong Kong ( China ), Viet Nam and
China. Hong Kong ( China ) was the largest market for pis-
tachios in 2016, with an imported value of US $ 721 million
came from Viet Nam, which received shipments of pistachi-
os worth US $ 308 million in 2016. Another large consumer
of pistachios is China, with 2016 imports valued at US $ 119
million. Germany and Italy import pistachios in bulk quanti-
ties but much of this is set aside for value addition and then
re-export to other European countries.

Table 4 : Leading pistachio importers worldwide

Importers Imported value in 2016 ( US $ thousands ) CAGR ( % ) Share in world imports ( % )
Hong Kong ( China ) 721 486 3 28
Viet Nam 308 745 587 12
Germany 260 980 -4 10
Italy 133 820 8 5
China 118 844 -3 5

Source : ITC.

Dried apricots
The United States is the largest importer of dried apricots,
with US $ 57 million in imports representing 14 % of the global
import total. American demand for dried apricots has in-
creased steadily over the past five years. European coun-
tries, including the United Kingdom of Great Britain and
Northern Ireland, France and Germany, follow the United
States in volume of imports of dried apricots. In general,
European demand for dried apricots has increased since
2012, increasing Europe’s global share of imports as a re-
gion. Australia is another major importer of dried apricots,
with imports valued at US $ 14 million in 2016.

[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]
 11

Table 5 : Leading dried apricot importers worldwide

Importers Imported value in 2016 ( US $ thousands ) CAGR ( % ) Share in world imports ( % )
United States 57 344 4 14
United Kingdom 39 942 4 10
France 32 500 2 8
Germany 31 132 2 8
Australia 14 480 -2 4

Source : ITC.

Dried figs
France is the leading importer of dried figs in the world,
with imports reaching US $ 60 million in 2016 ( 12 % of all
dried fig imports globally ). France’s main supplier of dried
figs is Turkey, which also exports significant quantities to
the United Kingdom and Germany. The second-largest im-
porter of dried figs is India. Within a short period, India has
expanded its world import share to 11 %, with US $ 60 million
in dried fig imports in 2016. After India, the country with the
second-fastest growth in demand for dried figs is the United
States. The Americans imported US $ 41 million of dried figs
in 2016.
Photo: Dried Fruits & Nuts, FOX20409.jpg

Table 6 : Leading dried fig importers worldwide

Importers Imported value in 2016 ( US $ thousands ) CAGR ( % ) Share in world imports ( % )
France 60 092 6 12
India 59 678 45 11
Germany 52 305 2 10

United States 41 044 26 8

United Kingdom 29 679 18 6

Source : ITC.

Pine nuts
Pine nuts are grouped into an “other” HS code ( 080290 ).
Therefore, official import statistics specific to pine nuts are
not available. Germany is the leading importer of pine nuts,
with a volume of 5,334 metric tons in 2015. The second
and third largest importers are USA and Italy, respectively,
with 3,879 and 1949 metric tons. Other main markets are
Netherlands, Australia and China1.

1.– International Nut And Dried Fruit Council ( 2017 ). Nuts & Dried
Fruits Statistical Yearbook 2016/2017. Available from : https ://www.
nutfruit.org/what-we-do/publications/technical-resources Photo: dfn 19/3/18, pine-nuts-1732080.jpg

[ TRAJECTORY OF THE GLOBAL SUPPLY CHAIN AND ENTRY POINTS FOR AFGHAN EXPORTERS ]
12
Box 1 : Specific products forecast
While the dried fruits and nuts sector is experiencing growth
across all product types, there are significant trends to consider
for certain products that have wide applications as raw materials.
Raisins : demand increasing for use as raw material and final
product
• Demand is expected to increase for raisins, as stand-alone
snacks and as a natural sweetener and substitute for cane
sugar in baked products. In Europe, 70 % of raisins are used for
further processing ( smaller raisins are preferred for biscuits ),
while 30 % are re-packaged and sold to retailers or the food
service industry.
• Organic raisin sales are increasing in the EU.
Almonds : product versatility spurs consumption along several
fronts
• In emerging markets, almonds continue to be a preferred
snack option, particularly in Asia–Pacific and the Middle East.
• In Europe and North America, health concerns about the con-
sumption of traditional dairy milk is one of the main drivers
increasing demand for almonds for the production of almond
milk.
• Other relevant industries boosting almond demand are the
cosmetic and pharmaceutical industries. Medicinal and
nutritional properties are among the main attributes sought
by producers of cosmetics, personal care products ( e.g. skin
creams ) and pharmaceutical products.
Dried apricots : high prices hurting demand but potential sweet
deals exist in niche markets
• Turkey dominates world supply, with high prices ( resulting
from limited sourcing options ) negatively impacting global
demand.
Box 2 : Implications for Afghanistan
• The position of Afghanistan can improve as food manufactur-
ers demand larger quantities of dried fruits and nuts as raw
materials.
• Packaging is a crucial element to be considered by Afghan
exporters who wish enter the retail sector.
• The growing preference for more natural foods and flavours
requires producers to be responsive and, if necessary, limit
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]
• Less branding options for the sector, compared with raisins
and almonds.
• Opportunities abound when it comes to the market for organic
and naturally dried apricots. In the short term, there is a short-
age of Turkish apricots in this niche market.
Pine nuts : product gaining momentum by increased usage in
traditional meals, not only as snacks
• The global market for pine nuts is competitive and fragmented.
• Pine nuts have multiple usages in sweet and flavory dishes
and in beverages, but also in the comestics industry.
• Demand for pine nuts as a flavoring agent is a major trend
for the next years.
Pistachios : market characterized by high prices, with demand
increasing in certain markets
• The United States and the Islamic Republic of Iran dominate
supply of the global pistachio market. Both countries are
highly competitive. The United States has demonstrated
an edge in pricing, supply consistency and quick decision-
making compared with the Islamic Republic of Iran. This
is hardly surprising, considering that the Iranian pistachio
industry has faced years of international sanctions related to
its nuclear programme.
• American and Iranian pistachios differ in taste and size. The
smaller size of Iranian pistachios is selling well, despite their
higher prices.
• Consumption is expected to grow, in Asia generally and China
in particular. Consumption is growing in the United States as
well, making America both a major exporter and importer of
pistachios.
the use of preservatives and additives, particularly for the
European market.
• Afghanistan needs to take advantage of preferential tariffs for
Afghan products in key markets, such as the EU and United
States.
• Trade routes to the fast-growing markets of India and China
are expected to improve over the next several years, providing
an important advantage for Afghan exporters.
 13

A FEW COUNTRIES DOMINATE GLOBAL SUPPLY

FOR MOST PRODUCT TYPES
Worldwide exports of dried fruits and nuts have been in-
creasing, reaching a total export value of nearly US $ 23
billion in 2016. This is more than double the 2006 total of
US $ 10.5 billion. Between 2005 and 2016, global export vol-
umes increased in nine out of 11 years, indicating positive
long-term growth prospects.
The United States is the leading global supplier of dried
fruits and nuts, increasing its export totals from US $ 3 billion
in 2006 to almost US $ 8 billion in 2016. Viet Nam has dem-
onstrated growing strength as a supplier over the past 10
years, becoming the second-largest exporter of dried fruits
and nuts in 2011. In 2016, Viet Nam’s total dried fruit and nut
exports reached US $ 2.3 billion.
Other top suppliers of dried fruit and nut products are
Turkey and the Islamic Republic of Iran. Top European export-
ers such as Germany, Spain and the Netherlands operate
primarily as re-exporters, engaging in various types of value
addition prior to sending shipments of dried fruits and nuts
off to other destinations. Based on excellent climate and soil
conditions to grow fresh fruits and nuts, other Asian coun-
tries, including India, have improved their capacity in drying
and processing to become exporters of dried fruits and nuts.

Figure 3 : World exported value of dried fruits and nuts, 2005–2016 ( US $ thousands )

30.000.000

25.000.000

20.000.000

15.000.000

10.000.000

5.000.000

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

Source : ITC.

Table 7 : Leading dried fruit and nut exporters worldwide

Exporter Exported value in 2016 ( US $ thousands ) CAGR ( % ) Share in world imports ( % )
United States 7 937 302 4.21 34.56
Viet Nam 2 300 878 12.10 10.02
Turkey 1 176 897 -0.70 5.12
Islamic Republic of Iran 908 347 -4.03 3.95
Germany 883 681 14.32 3.85
Spain 822 798 11.21 3.58
India 812 717 -2.18 3.54
Hong Kong ( China ) 802 734 -1.69 3.49
Netherlands 728 754 9.48 3.17
Mexico 662 760 22.66 2.89

Source : ITC.

[ TRAJECTORY OF THE GLOBAL SUPPLY CHAIN AND ENTRY POINTS FOR AFGHAN EXPORTERS ]
14

LEADING EXPORTERS BY PRODUCTS

Almonds
The world’s largest exporter of almonds is the United States,
owing to its optimal climate for production and industrial-
scale agricultural operations. American almond exports
constitute 68 % of all world exports of almonds. The coun-
try has benefited from the international shift in preferences
towards healthy, nutritious food. Other important exporters
of almonds are Germany, Spain and Hong Kong ( China ),
which serve as major re-exporters in Europe and Asia.
Another important producer of almonds is Australia,
which has one of the highest growth rates in almond ex-
ports. Like to the United States, Australia’s climate is par-
ticularly suitable for almond production. Australia directly
supplies to Asian end users as well as re-exporting hubs in
Asia and Europe.
Photo: Dried Fruits & Nuts, FOX20497.jpg

Table 8 : Leading almond exporters worldwide

Exporters Exported value in 2016 ( US $ thousands ) CAGR ( % ) Share in world exports ( % )
United States 4 286 723 7 68
Spain 641 132 15 10
Australia 346 628 22 5
Hong Kong ( China ) 268 425 -6 4
Germany 123 636 13 2

Source : ITC.

Raisins
Globally, export volumes of raisins are declining. The world’s
largest exporter of raisins is Turkey, with an export total in
2016 of US $ 426 million ( a global export share of 27 % ). The
second-largest raisin exporter is the United States, with a
world export share of 20 %. Both of these top raisin exporters
have seen their export volumes decrease in recent years.
Other raisin exporters are Chile, South Africa and the Islamic
Republic of Iran, all of which provide excellent conditions
for raisin production. Again, the trend among these leading
raisin exporters is declining export volumes, with the lone
exception being South Africa.

Table 9 : Leading raisin exporters worldwide

Exporters Exported value in 2016 ( US $ thousands ) CAGR ( % ) Share in world exports ( % )
Turkey 426 082 -5 27
United States 323 083 -4 20
Chile 116 900 -10 7
South Africa 99 306 10 6
Islamic Republic of Iran 92 964 -16 6

Source : ITC.

[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]
 15

Pistachios
As in the case of almonds, the United States is the largest
producer and exporter of pistachios. At present, the United
States is responsible for approximately 39 % of all pistachio
exports globally. The Islamic Republic of Iran is the second-
largest pistachio exporter but Iranian suppliers have suffered
in recent years due to sanctions and being outperformed
by their American competitors. Despite these hurdles, the
country has kept its dominant global position by serving
Asian and Middle Eastern markets such as Hong Kong
( China ), India and Lebanon, which the sanctions did not
affect. Other main exporters of pistachios are Hong Kong
( China ), Germany and the Netherlands, which are re-ex-
porters for their respective regions. As demand for healthy,
organic food increases, both imports to and exports from
the re-exporting hubs have risen accordingly.

Table 10 : Leading pistachio exporters worldwide

Exporters Exported value in 2016 ( US $ thousands ) CAGR ( % ) Share in world exports ( % )
United States 1 078 047 3 39
Islamic Republic of Iran 669 404 -3 24
Hong Kong ( China ) 393 046 5 14
Germany 187 329 15 7
Netherlands 114 246 5 4

Source : ITC.

Dried apricots
Globally, dried apricot exports have remained stable over
the past five years. A pioneer in dried apricot exports is
Turkey, which boasts a remarkable 76 % share of dried apri-
cot exports worldwide. Turkey exports its dried apricots to a
well-established network of international buyers. Germany
is the re-exporting hub in Europe, holding a global export
share of 2 %. France and the United States are re-export-
ers and producers of dried apricots but their global export
share is rather small and declining. Uzbekistan is a rising
player in the global dried apricot trade, and is one of the
few countries that recorded positive export growth in re-
cent years.

Table 11 : Leading dried apricot exporters worldwide

Exported value in 2016 ( US $

Exporters CAGR ( % ) Share in world exports ( % )
thousands )
Turkey 289 106 -1 76
Germany 9 179 -4 2
France 8 715 -1 2
Uzbekistan 8 490 5 2
United States 8 032 -2 2

Source : ITC.

Dried figs
Turkey is the leading producer and exporter of dried figs,
with exports worth US $ 250 million in 2016 ( 51 % of global
exports ). Demand for low-sugar healthy snacks has con-
tributed to the increase in demand for dried figs, which has
disproportionately benefited Turkey. The second most im-
portant producer and exporter of dried figs is Afghanistan,
which has demonstrated remarkable growth over the past
five years. Afghanistan has increased its market share to
12 %, with US $ 60 million in exports in 2016. Other leading
exporters are Australia and the United States, which benefit
from broad swathes of territory suitable for dried fig produc-
tion. The Netherlands is the leading re-export hub for dried
figs in Europe, with total exports in 2016 of US $ 17 million.

[ TRAJECTORY OF THE GLOBAL SUPPLY CHAIN AND ENTRY POINTS FOR AFGHAN EXPORTERS ]
16

Table 12 : Leading dried fig exporters worldwide

Exporters Exported value in 2016 ( US $ thousands ) CAGR ( % ) Share in world exports ( % )
Turkey 249 570 6 51
Afghanistan 59 883 57 12
Australia 23 301 3 5
United States 19 200 -6 4
Netherlands 17 237 -2 4

Source : ITC.

Pine nuts
Official global export statistics specific to pine nuts are not
available. China is the world leading exporter with a 78 %
share of the market. Germany and USA are the main target
destinations for Chinese exports of this product. China is
followed by Pakistan ( 7 % ), and Turkey ( 7 % ), as leading ex-
porters of pine nuts.2

2.– International Nut and Dried Fruit Council ( 2017 )

MAIN DRIED FRUITS

AND NUTS SUPPLIERS
AND STRATEGIES
Photo: EPAA pictures, IMG_1851.JPG

UNITED STATES
The United States is the largest exporter of dried fruits and
nuts, with US $ 7.9 billion in total exports in 2016. Sales are
driven by concerted marketing efforts, including television
advertising campaigns. Hong Kong ( China ) is the largest re-
cipient of American dried fruits and nuts shipments, with im-
ports valued at US $ 1.2 billion, followed by Spain ( US $ 691
million ) and Germany ( US $ 530 million ).
Almonds account for more than 50 % of the American
dried fruits and nuts export basket. According to the Almond
Board of California, almond yields increased to roughly
916,700 tons in 2016 / 17. The Californian almond industry is
investing in a global market development programme, with
forecasts indicating a 25 % increase in production over the
next three years.
Pistachios and walnuts both represent around 13 % of
America’s export basket for the sector. America’s growing ex-
ports of pistachios are driven by lower pricing compared with
competitors, strong promotion and greater global demand.
Notable demand comes from the Chinese market, particu-
larly near Chinese New Year. Given the well-established
links to the Chinese market, American pistachio exports are
expected to grow further on the back of demand from Asia.
American walnuts enjoy a reputation for their excellent qual-
ity worldwide. As with pistachios, China is one of the top
markets for American walnuts.
The United States also exports dried fruits and is the
world’s second-largest exporter of raisins. In 2016, outgo-
ing shipments of raisins totalled US $ 323 million. Although
many regions of the United States benefit from ample sup-
plies of water and lots of sunlight ( both of which favour raisin
production ), droughts in recent years have threatened the
American dried fruits and nuts sector. This has especially
been the case in the sector’s production hub of California.
Enabling factors Deterring factors
• High reputation for quality
• Suitable climate on the west coast for the
dried fruits and nuts industry • Tighter water regulations
• Strong established trade networks and Californian droughts
• Benefited from sanctions against Islamic have affected dried fruit
Republic of Iran in pistachio exports and nut production

[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]

TURKEY
The third-largest exporter of dried fruits and nuts is Turkey,
with exports of US $ 1.2 billion in 2016. Turkey is a main sup-
plier to Europe, with destination markets in 2016 including
the United Kingdom ( US $ 158 million ), Germany ( US $ 137
million ), France ( US $ 98 million ) and Italy ( US $ 96 million ).
A destination market for Turkey outside of Europe is the
United States, with exports of dried fruits and nuts valued
at US $ 70 million.
Turkey’s international success in dried fruits and nuts
exports is not only the result of an excellent reputation for
its products’ taste but also its strong exporters’ associa-
tions. The Aegean Dried Fruits Exporters’ Association is very
active in product promotion, including participation in the
European Dried Fruit Meeting and other international trade
fairs and exhibitions. The Association has also taken proac-
tive steps to ensure food safety compliance, in part by con-
ducting research on sanitary and quality control methods
during processing.
Through the Dried Fruits Promotion Committee of Turkey,
the industry engages in international promotion activities.
These efforts have paid off, with Turkish exports showing
impressive market diversification. The fact that Turkey is able
to export high volumes of product with excellent quality con-
trol and food safety compliance are other factors that explain
Turkish dominance in the global market.
Turkey is a major exporter of dried fruits, with raisins as
its top export in this category. Turkey exported US $ 426 mil-
lion of raisins in 2016, followed by dried apricots ( US $ 289
million ) and figs ( US $ 289 million ). Top export destination
markets for Turkish dried fruits were all in Europe, including
the United Kingdom, Germany, the Netherlands, Italy and
France.
The Aegean Dried Fruits Exporters’ Association expects
that exports of Turkish raisins will continue to increase,
thanks to sustained demand from European buyers. Despite
erratic weather conditions that have negatively impacted
some crops in recent years, Turkey’s agriculture sector is
resilient enough to continue to meet demand. In the future,
Turkey hopes to expand exports of dried apricots to China.
Nuts have a much smaller place in Turkey’s export bas-
ket. Turkey is among the three world exporters of pine nuts,
after Pakistan and China. Most Turkish exports of pine nuts
are destined to European countries, such as Germany,
Italy, Switzerland and Spain. Turkey’s most valuable nut ex-
ports are almonds, with US $ 66 million in exports in 2016.
Pistachio exports were close behind, with US $ 60 million
in exports the same year. The fluctuating value of curren-
cies, especially in relation to the United States dollar and
euro, can have a major impact on the price-sensitive global
dried fruits and nuts market. In 2016, the devaluation of the
Turkish lira against the United States dollar and the euro
gave Turkey a competitive edge against other international
pistachio suppliers.
[ TRAJECTORY OF THE GLOBAL SUPPLY CHAIN AND ENTRY POINTS FOR AFGHAN EXPORTERS ]
17
Enabling factors Deterring factors
• High brand recognition : known for • Exchange rate fluctuations of the
high-quality of dried fruits and nuts Turkish lira against the United
• Extensive experience and wide States dollar and the euro influ-
buyer network in dried fruits and ences exports of dried fruits and
nuts exports nuts
ISLAMIC REPUBLIC OF IRAN
The Islamic Republic of Iran exported US $ 908 million of
dried fruits and nuts in 2016, with Hong Kong ( China ) as its
most significant export destination ( US $ 244 million ). Iranian
export performance has experienced declined since peak-
ing in 2014 with US $ 1.3 billion in exports. The country’s sec-
ond-largest export destination in 2016 was India, receiving
US $ 104 million of Iranian dried fruits and nuts. Following
India, Germany is another major destination market ( US $ 71
million ), followed by Spain ( US $ 56 million ). Pistachios com-
prise around 74 % of the Iranian export basket for the sec-
tor, which is unsurprising considering that the country is the
world’s second-largest producer.
In recent years, sanctions against the Islamic Republic
of Iran have led to a shift in export destinations away from
Western markets and towards Asian markets, including
Hong Kong ( China ), India, Viet Nam and China. The Islamic
Republic of Iran has effectively promoted pistachio exports
by emphasizing the rigid quality control measures em-
ployed by its sector enterprises, reinforcing the high global
reputation of Iranian pistachios. Other factors contributing to
Iranian success in this sector are efficient operational man-
agement, warehouse management, and advanced process-
ing hardware and methods.
In 2016, the Islamic Republic of Iran also recorded im-
pressive export figures for dates ( US $ 97.5 million ), raisins
( US $ 92 million ) and almonds ( US $ 26 million ). According to
the Iran Dried Fruit Exporters’ Association, the Iranian raisin
crop increased by 13 % in 2016 compared with the previous
season. The Islamic Republic of Iran was the top supplier
of raisins to Iraq and the Russian Federation in 2016, in part
explained by the shift in Iranian exports to the East, where
international sanctions are less relevant.
Enabling factors Deterring factors
• Sanctions on trade to major markets
• Long history as a global pistachio • Improvements in quality control
exporter are required along the production
• Second-largest pistachio producer chain to meet the high standards
after the United States of buyers
• Export promotion support from the • Nationwide drought and water
Iran Trade Promotion Organization scarcity affecting production
18
Photo:Screenshotsofvideo,AAT_NES_screenshots_promotionalvideo(61).png
GERMANY
Germany’s exports of dried fruits and nuts stood at US $ 883
million in 2016. Germany’s export destinations in 2016 were
primarily focused on the European market, including France
( US $ 123 million ), the United Kingdom ( US $ 121 million ),
Italy ( US $ 90 million ) and the Netherlands ( US $ 85 million ).
Pistachios are not grown in Germany but that has
not stopped the country from being a major pistachio
Box 3 : Implications for Afghanistan
• Timing market entry for raw pistachios can provide Afghan
traders with the opportunity to obtain peak prices, as this
crop is vulnerable to fluctuations in supply from other global
suppliers.
• Strong brand positioning will require significant investments
by Afghan exporters. Most competitors are well-established
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]
re-exporter. Germany relies on Iranian and American im-
ports to satisfy domestic demand, while also purchasing
additional quantities for further processing, repackaging,
rebranding and then re-export. Most of the pistachios that
undergo value addition in Germany are then exported to
other destinations in Europe. Germany is also a major re-
exporter of almonds, with export value reaching US $ 635
million in 2016. Germany is less interested in re-exporting
dried fruits. Raisins were Germany’s largest dried fruit ex-
port, with export sales of just US $ 31 million in 2016.
Enabling factors Deterring factors
• Dependence on imports from the Islamic
• Strong national brand Republic of Iran and the United States
• Established, strong channels • Embargo on the Islamic Republic of Iran
for export in Europe caused import fluctuation of pistachios
SPAIN
The second-largest dried fruit and nut exporter in Europe
is Spain, with a sector export total of US $ 823 million in
2016. Spanish exports in 2016 were primarily destined for
the European market, including Germany ( US $ 181 million ),
Italy ( US $ 142 million ) and the United Kingdom ( US $ 129
million ). Outside of Europe, the United States was the most
important export destination for Spain, with sector exports
reaching US $ 51 million in 2016.
While Spain is not itself a major producer of almonds,
it has managed a profitable trade in re-exporting them.
Around 87 % of Spain’s imported almonds, of which roughly
90 % come from the United States, undergo value addition
before being re-exported to other European markets.
Enabling factors Deterring factors
• Dependence on nut imports from
• Strong national brand other countries for re-export
• Established, strong networks for • C o m p e t i t i o n w i t h G e r m a n
export in Europe re-exporters
and have engaged in highly targeted marketing in prime
destination markets.
• Building trust with international buyers will require production
consistency in terms of both volumes and quality control, with
food safety compliance a major priority.

AFGHANISTAN’S DRIED FRUITS
AND NUTS VALUE CHAIN
CURRENT VALUE CHAIN
OPERATIONS
PRODUCTION OF DRIED FRUITS
AND NUTS
The value chain starts with the fruit and nut farmers drying
their own produce. Key actors in the production stage are
smallholders, who are responsible for the majority of ag-
ricultural production in Afghanistan. Only raisins are dried
in specific processing factories, which involves washing,
winnowing and destalking of grapes. These factories are
owned by businessmen who both export raisins themselves
and rent out their facilities to regional grape producers for
processing.
Typical Afghan fruits that are suitable for drying include
grapes ( raisins ), apricots, figs, plums ( prunes ), cherries and
mulberries. Afghanistan is also a major regional producer
of melons of various kinds, although minimal drying of this
product exists at present ( if any at all ). Typical nuts are pis-
tachios, almonds and walnuts. Fruit production happens
all over the country, with Nangarhar Province renowned for
high-quality apricots and Herat Province for grapes. Famous
regions for nuts are Nangarhar, Paktia and Ghazni.
After the harvesting stage, farmers assess domestic de-
mand and set aside a portion of their crop to be sold in its
fresh state and a second portion to be dried. Compared with
dried fruits, fresh produce obtains higher prices on the do-
mestic market ( and even higher prices if it can be exported ).
Therefore only fresh fruit that cannot be sold domestically or
exported is dried. Approximately 75 % of total yields of fruit
are sold in fresh form, while the remaining amount is dried
or consumed at home.
The main production inputs to convert fresh fruit to dry fruit
include :
ƒƒ Fresh fruit
ƒƒ Dry floor or ideally a drying house, where fruits and nuts
are dried and stored until the products are ready for sale
ƒƒ Drying mats or bamboo trellises on which fruits and nuts
are laid for drying
ƒƒ Bamboo cord for flattening the fresh produce
[ AFGHANISTAN’S DRIED FRUITS AND NUTS VALUE CHAIN ]
19
Photo: Dried Fruits & Nuts, FOX16530.jpg
ƒƒ Sun for natural and traditional drying
ƒƒ Cutting tools and pressing machines for shaping the
product to marketable size and shapes
ƒƒ Solution of potassium carbonate, which enhances drying
quality and speed, especially when drying grapes.
At present, there are deficiencies related to several of these
sector inputs. This starts with the primary input of the fruit
itself, considering that the best quality fruit is sold in its fresh
form. This leaves the lower-quality fruits, often irregular or
smaller size, for drying. Due to limited financial resources
to fund upgrades in technology and purchase potassium
carbonate, dried fruit and nut farmers rely on traditional dry-
ing methods. This involves sun-drying on the ground ( using
mats, preferably ) and on bamboo trellises, which results in
products which barely meet international quality standards
( if at all ).
DRIED FRUIT AND NUT PROCESSING
Currently, the majority of dried fruits and nuts produced by
smallholders are sold directly to local consumers without
any value addition. Only a small portion of dried produce
reaches local urban centres, and a smaller portion still is
exported abroad. Dried fruits and nuts are generally aggre-
gated by middlemen who will pick up products from farmers
and sell them to processing facilities or wholesale hubs.
Some farmers have direct commercial relationships with
enterprising Pakistani traders who wish to purchase directly
from the source.
20
VALUE ADDITION FACILITIES
Processing methods for dried fruits and nuts vary from
product to product. In general, processing is performed as
follows :
ƒƒ Simple cleaning ( removing sand, dust and stones )
ƒƒ Further drying based on thickness of cuts and shapes of
dried pieces as well as variety of fruit or nut
ƒƒ Thorough washing of dried produce
ƒƒ Grading
ƒƒ Packaging.
Processing of dried nuts also involves shelling and roasting.
Due to the deficiencies of processing facilities in
Afghanistan, the majority of the dried fruits and nuts make
their way to Pakistan with little ( if any ) value addition. This is
an enormous loss for the sector ( and the Afghan economy
in general ), as Pakistani processing facilities are able to cap-
ture a large share of the profits from Afghan dried fruits and
nuts by way of value addition.
DISTRIBUTION
In the rare case that dried produce enjoys value addition
and is processed, local small dealers transport final prod-
ucts to local and export traders.
DOMESTIC MARKET
The trading channel between Jalalabad and Peshawar is
the main hub for local traders because it has access to both
Afghan and Pakistani markets. In most cases, local traders
gain a margin of 5 %. Traders on the border with Peshawar
enjoy geographical advantages, bringing opportunities for
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]
Photo: Dried Fruits & Nuts, FOX29044.jpg
higher margins. There is little capacity for extended storage
so traders need to sell their products as quickly as possible
to cope with storage shortages. When dried fruits and nuts
are sold domestically, the products are transported by mid-
dlemen to local retailers.
INTERNATIONAL MARKET
Some local traders channel the product to export traders
to benefit from higher margins in Pakistani markets. Export
traders consolidate produce and wholesale it not only to
Pakistan but also other international markets. Local traders
also cooperate with Pakistani traders, who also have direct
contact with regional Afghan collectors and small farmers.
Currently around 30 small export traders are active at the
border and trade around 5–6 million tons of dried fruit and
nuts per year. In 2015, top export destinations for Afghan
dried fruit and nuts were – besides neighbouring Pakistan –
India, the Russian Federation, Kazakhstan, Saudi Arabia,
Canada, the United States, Germany and Belarus.
Afghanistan exported US $ 66 million of dried grapes to
international markets. The majority of raisins went to India.
The second most-traded dried fruit was figs with US $ 60
million in exports.3 As for grapes, India was the number one
destination for fig exports. Further exported varieties were
dried apricots. Pistachios were the most exported dried nuts
with an export value of US $ 25 million, while India was again
the major buyer. Almonds were the second-largest export in
dried nuts, with US $ 12 million in exports of shelled almonds
and US $ 4.8 million in exports of in-shell almonds.4 Walnuts
and Brazil nuts were other varieties exported by Afghan
in 2015.
3.– Source : ITC calculations based on United Nations Comtrade statistics
( mirror data ).
4.– Source : ITC calculations based on United Nations Comtrade statistics
( mirror data ).
 Production Assembly Processing Distribution Domestic market

Dominating Direct Sales: demand exceeds supply, hence farmers are able to sell their produce locally

Local Consumers
Small Famers - Grapes
Input Supply - Drying self-produced fresh - Apricots
fruits and nuts - Figs
Rural Traders - Oranges / Citrus
- Owners of small-scale connected to
Fresh fruits (varying quality) orchards ranging from 50 - Peaches
local traders
trees upward - Guavas
- Persimmons &
Dry / mud floor Local Traders in Local Retailers Loquats
Jalalabad and Average sales 7 - Plums
Domestic Value Addition Inter-
Peshawar tons per year
mediary - Cherries
Sun Margin: 5% in - Mulberries
Shelling Facilities most cases - Melons
Small - Pistachios
Drying House Dealers - Almonds
Roasting Facilities - Walnuts
Regional
Figure 4 : Current value chain – dried fruits and nuts

Storage facilities Collectors (non-

refrigerated Simple Cleaning Facilities
transport in small International market
Drying mats or bamboo trellises trucks and 10 ton
trucks) Further Drying Facilities
Labour force
Top 8 export
Limited literacy (abundant) / Customs office destinations
skills (scarce) Washing Facilities (minor Customs fee paid - India Exported dried fruits
but only a small minority - Russian Federation - Dried grapes US$
of goods are run
- Kazakhstan 66 mil.
Processing machines Middlemen Packaging Facilities through)
- Saudi Arabia - Dried figs US$ 60
- Canada mil.
Long ropes - USA - Dried apricots
Grading Facilities
Export Traders - Germany
Cutting Tools - Consolidate - Belarus
Bagging Facilities produce and
Regions: wholesale to
Bamboo cord for flattering Apricots: Nangahar Rural Traders international
Mulberries: Sherzad, connected to market
Pakistani traders Value Addition Exported dried nuts
Pacheeragam, Hesarak and - 30 small export
Solution of potassium carbonate for raisins behind the border - Pistachios US$ 25
AchIn traders
(scarce) - Repacking mil-
Grapes: Mazar-e-Sharif - Trade around 5-
Nuts: Nangahar, Paktia, Ghazni - Storing - Almonds US$ 12
6 tons per year
- Re-exporting to mil.
- 5% profit

[ AFGHANISTAN’S DRIED FRUITS AND NUTS VALUE CHAIN ]

higher-value - Walnuts
Pakistani Traders markets - Brazil nuts
Direct shipping to - Branding /
National Component Pakistan by marketing as
skipping Pakistani products
inefficient Afghan
Mixed Component traders

International Component

Grapes Nuts
21
22
FRAGMENTED PRODUCTION
ECOSYSTEM LEADS TO
OPPORTUNISTIC RATHER THAN
DEMAND-DRIVEN SECTOR
PRODUCTION
Most fruit and nut production in Afghanistan is carried out by
smallholders. Few commercial orchards exist, which limits
opportunities to achieve economies of scale and prevents the
standardization of yields. Because higher profits are achieved
by fruit farmers through the sale of fresh produce, the pro-
duction of dried fruit is almost an afterthought, as a means
to commercialize produce that the fresh fruit market cannot
absorb. The consequence for the sector is that dried fruit pro-
duction has not been a priority, with production not undertak-
en in a focused, systematic fashion. The producers growing
fruit and nuts – and even the traders taking produce to mar-
ket – have minimal knowledge about what varieties of dried
fruits and nuts earn premium prices in international markets.
Box 4 : Women in the dried fruits and nuts value chain
Women are heavily involved in the Afghan dried fruits and nuts
value chain. At the production level, they are often responsible
for watering, weeding, pruning and harvesting in smallholder
orchards. At the postharvest level, women in rural areas are often
responsible for drying grapes, sorting them – if this activity is
carried out at all – and packing them in sacks.
In the case of raisin processing, there are approximately 30
processing facilities at the national level ( though how many
are operational remains in question ). Despite the existence
of these processing centres, most postharvest processing
is carried out at the farm level by smallholders themselves.
Two main drying methods are used in Afghanistan, which
are shade-dry and sun-dry techniques. Shade-drying is es-
sentially used for green raisins or kishmish, while sun-drying
techniques are used to process red and dark raisins, among
which Aftabi raisins are the main kind. When raisins are dried
through traditional methods, further processing is minimal.
One additional step is manually pounding heavy sacks of
raisins against the ground in order to remove the stems.
In contrast, raisins that are processed in factories are
washed and winnowed, and finally sprayed with paraffin or
seed oil. Most processing companies that handle raisins
also process other dried fruits and nuts, such as apricots,
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]
LOW LEVELS OF TECHNOLOGY
CHARACTERIZE AFGHAN DRIED FRUIT
AND NUT PROCESSING
In Afghanistan, processing of dried fruits and nuts is char-
acterized by traditional methods and low levels of technol-
ogy. The ability to upgrade processing capacity is limited
by enabling infrastructure ( or lack thereof ), particularly the
availability and cost of power. Access to finance is another
constraint limiting sector development, with most farmers
and processing enterprises unable to fund purchases of
advanced machinery.
As a consequence, the use of traditional techniques
– with little consideration for the requirements and prefer-
ences of the international market – leads to deficiencies in
uniformity and quality, as well as serious food safety con-
cerns. With that said, traditional techniques are relatively
easy to perform and cost-effective. Notably, women play a
prominent role in postharvest activities.
In urban areas where most processing facilities are located,
women work as wage labourers, primarily at the sorting stage.
Few women are involved in wholesaling and trading activities at
the village level, as a result of the culturally conservative views
about the role of women in commercial activities outside the
home. Considering the critical role of women in drying, sorting
and packaging dried fruits and nuts, tailored support services,
preferably provided by other women, should be provided to them
to improve the quality of outputs at the postharvest level.
figs, walnuts and pistachios. Traditionally, apricots undergo
a similar processing routine to red raisins, in which they are
sun-dried on rooftops or on the ground. Figs are partially
dried before being compressed and threaded onto a rope.
For the processing of most nuts, the first step typically in-
volves removing the nut ( shell intact ) from the outer hull ( also
commonly referred to as the ‘husk’ ). Afterwards, nuts should
be graded and sorted by size ; however, few Afghan traders
perform this task. Depending on the agreement with the buy-
er, nuts can further be shelled through manual or mechani-
cal methods. In Afghanistan, shelling is generally carried out
manually by women using hammers. After being separated
from their shells, nuts are roasted in a controlled manner.
Table 13 summarizes the main processing steps for
dried fruits and nuts, the approximate drying time and
deficiencies that can result from each step. While these
methods are highly cost-effective ( sunlight is free, after all ),

they often prevent Afghan dried fruits and nuts from enter-
ing highly profitable – but also highly regulated – markets.
Drying times are also relatively longer using traditional meth-
ods compared with methods employed by more developed
competitors, including industrial machinery and chemicals
that speed up the drying process.
Since most production and postharvest activities are
done on a small scale, Afghan dried fruits and nuts traders
must aggregate products from many different sources to
accrue volumes large enough for bulk sales. This results in
an unsorted mix of types and qualities ( and moisture con-
tent ), thereby diminishing interest from international buyers.
On the international market ( and especially in developed
Table 13 : Main processing methods
Product Processing step
Green raisins Shade-dried in Kishmish Khana ( raisin houses ) :
( kishmish ) rooms made from mud bricks and wood sticks
Sun-dried, ideally using a mat underneath, often
Red raisins mixed with dust to help them dry
Apricots Sun-dried, on top of a mat
Partially dried, then machine-pressed and thread onto
Figs a long rope
Nuts ( pistachios, De-hulling ( manually )
almonds ) Shelling ( depending on the trading agreement )
UNMET FINANCIAL NEEDS ACROSS
THE VALUE CHAIN
The dried fruits and nuts sector requires specific types of
working and investment capital across the value chain. The
following are the main financial needs of value chain actors :
ƒƒ Production stage : At the production level, farmers re-
quire financing to pursue long-term strategies, as certain
fruits and nuts have medium-to-long term maturation pe-
riods, e.g. almonds and grapes. Moreover, fruit and nut
production has high seasonal working capital require-
ments, in addition to storage service requirements.
ƒƒ Aggregation stage : In Afghanistan, the nut harvesting
season is short ( July to November ). Thus, traders require
large amounts of working capital to lock in low prices
prior to the harvest by paying farmers cash in advance.
ƒƒ Processing stage : Sector enterprises have limited ac-
cess to investment capital in order to establish or up-
grade processing plants. This issue is aggravated by the
low availability and high cost of private land.
ƒƒ Trade finance : Afghan exporters operate with suboptimal
levels of working capital and thus they are less competi-
tive than exporters from competitor countries that can
[ AFGHANISTAN’S DRIED FRUITS AND NUTS VALUE CHAIN ]
23
markets ), a key criterion for sales is consistency. Buyers
may not always be interested in premium-grade dried fruits
and nuts, but whatever grade and product type they order,
they do not want surprises when they open their shipment
for initial inspection.
At the current processing levels, there is significant po-
tential to increase the value of Afghan dried fruits and nuts
by upgrading processing methods and technology, where
appropriate. The use of certain fruit dipping mixtures, such
as food-grade potassium carbonate, can potentially reduce
the drying time of grapes by half. Consequently, Kishmish
Khana, for instance, would have double the capacity to dry
grapes in the same amount of time.
Approximate drying time Common deficiencies
30 days
Contamination :
dust / dirt,
15–20 days ochratoxin A
Contamination : Variability
4–12 days grit and dust of quality
and size
Contamination :
4–8 days dust
Kernel damage,
- aflatoxins
access trade financing. For example, there are limited
insurance options for producers or traders and limited ex-
port financing facilities, including limited line of credit and
no escrow accounts or financial dispute settlement mech-
anism between Afghan exporters and overseas buyers.
Lastly, there is a need to increase awareness of existing
short-term financing opportunities, which are available
through development partners such as the Agricultural
Credit Enhancement Programme.
PACKAGING AND BRANDING REMAIN
MAJOR SECTOR WEAKNESSES
The Afghan dried fruits and nuts sector lags significantly
behind its major global competitors in packaging, market-
ing and branding capacity. At present, Afghan dried fruit
and nut products are mostly packed in wooden crates and
plastic bags in preparation for bulk sale within the region
( primarily to Pakistan and India ). For Afghanistan’s neigh-
bours to the south, packaging is not an issue ; many bulk
shipments headed to Pakistan and India will undergo further
24

value addition at processing facilities before sale to end
consumers.
While acceptable for Pakistan and India, this casual ap-
proach to packaging is a major barrier to entry for Afghan
traders eyeing highly profitable but highly regulated markets
in the East and West. Poor packaging reduces the attractive-
ness of products to buyers and fails to prevent damage to
goods during transportation. The result is that neighbouring
countries, particularly Pakistan, capture profits from value
addition through packaging operations. Pakistani process-
ing enterprises have little incentive to promote the origin of
Afghan-supplied dried fruits and nuts, and thus the oppor-
tunity to promote the Afghan brand in regional and global
markets is lost.

AFGHANISTAN’S CURRENT EXPORT PERFORMANCE

With an export value of US $ 183 million,5 the dried fruits and
nuts sector accounted for almost 23 % of Afghanistan’s ex-
port basket in 2016 ( more than any other sector ). The fol-
lowing section examines Afghanistan’s export performance
in the sector, with particular attention to trends between
5.– Based on United Nations Comtrade mirror data.
2008 and 2016. Overall, exports in the sector have declined
in general since 2008 but have picked up in recent years.
In terms of market diversification, Afghanistan remains ex-
tremely weak, with most dried fruits and nuts heading to
India, followed by a handful of other destination markets.
The following section will only cover the leading export prod-
ucts for the sector, including almonds, raisins, pistachios,
dried apricots and dried figs.

Figure 5 : Afghan exports of dried fruits and nuts, 2008–2016 ( US $ thousands )

300.000

250.000

200.000

150.000

100.000

50.000

-
2008 2009 2010 2011 2012 2013 2014 2015 2016

Source : ITC.

The export basket of dried fruits and nuts in Afghanistan
was worth roughly US $ 257 million in 2008.6 The value of the
basket was US $ 183 million in 2016, a decrease of approxi-
mately US $ 74 million. Raisins comprised more than a third
of the export basket in both 2008 and 2016, while in 2016,
the second most-exported product was dried figs, with an
export share of 33 %. Dried fig exports from Afghanistan
owe their growth mainly to increased demand from India. In
2016, pistachios and almonds remained among the most
popular nuts exported from Afghanistan, and ranked fourth
and fifth in the most recent export basket. Other exported
varieties are cashews and walnuts, as well as some Brazil
nuts. Dried apricots, and prunes are other varieties contrib-
uting to the sector’s export basket.

6.– Source : ITC calculations based on United Nations Comtrade statistics

( direct data ).

[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]
 25

Figure 6 : Afghan export basket, dried fruits and nuts, 2008 Figure 7 : Afghan export basket, dried fruits and nuts, 2016

Nuts Brazil Dried

Walnuts Dried Other Dried
3% nuts grapes apricots 1% prunes
5% 0% 37% Dried
Almonds 5% 0%
Cashew 9% grapes
6% 38%
Pistachios
Dried 14%
figs
6%

Dried
apricots
7%

Pistachios
Dried
16% Almonds
figs 33%
20%

Source : ITC.

India was the most important export destination for the

Afghan dried fruits and nuts sector both in 2008 and in 2016.
According to consultations and desk research, significant
unreported trade to Pakistan has been taking place and
should be taken into account. Additional export destina-
tions are the Russian Federation, and Central Asian and
West European countries, namely Ukraine, Kazakhstan and
Belarus. However, exports to these regions have been un-
stable in recent years. Turkey – which is the world’s greatest
dried fruit exporter – ranked third as an export destination in
2008 but declined in 2016. Germany was another re-export
hub for Afghan dried fruits and nuts in 2008 and 2016, and
served as a gateway to the European market. Afghan prod-
ucts have started to receive better appreciation in Middle
Eastern countries ( UAE and Saudi Arabia ), where they enjoy
an excellent reputation for their unique taste and quality.

Photo: Dried Fruits & Nuts, FOX20456.jpg

[ AFGHANISTAN’S DRIED FRUITS AND NUTS VALUE CHAIN ]

26

Figure 8 : Afghanistan’s top 10 export destinations 2008 Figure 9 : Afghanistan’s top 10 export destinations 2016
( US $ thousands ) ( US $ thousands )

120000 180.000
160.000
100000
140.000
80000 120.000
100.000
60000
80.000
40000 60.000
40.000
20000
20.000
0 -

Kazakhstan

Canada
Saudi Arabia

Germany
Belarus
USA
Pakistan
India

Russia

UK
Russia

Lebanon
Ukraine
Turkey

Netherlands
Bangladesh
Germany
Belarus
India

UAE

Source : ITC.

Almonds
Afghan exports of almonds reached US $ 14.8 million in
2016, with roughly 89 % of this amount destined for India.
A growing population and rapid economic development
has increased Indian demand for dried fruits and nuts in
general, from which Afghanistan is benefiting. Following
India, Pakistan was the second-largest destination market
for Afghan almonds, as most remaining Afghan almonds
reached Pakistan, according to official statistics. Small
amounts of Afghan almonds were exported to Europe
( Germany and the United Kingdom ) and Bahrain.

Photo: By jules / stonesoup (natural almonds) [CC BY 2.0 (http://

creativecommons.org/licenses/by/2.0)], via Wikimedia Commons

Table 14 : Afghanistan’s top five export destinations for almonds

Importers Exported value in 2016 ( US $ thousands ) CAGR ( % ) Share of Afghan exports ( % )
India 14 832 42 89
Pakistan 1 806 45 11
Germany 36 64 0
United Kingdom 10 0
Bahrain 7 0

Source : ITC.

[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]
 27

Raisins
Raisins are the most famous export product within the
Afghan dried fruits and nuts industry. As with almonds, the
vast majority of Afghan raisin exports ( 79 % ) were shipped
to the fast-growing Indian market. Afghan raisins also en-
joy an excellent reputation in the Russian Federation and
Kazakhstan. Germany, which is one of the most important
re-export hubs in Europe, has steadily increased its imports
of Afghan raisins.

Photo: Dried Fruits & Nuts, FOX20509.jpg

Table 15 : Afghanistan’s top five export destinations for raisins

Importers Exported value in 2016 ( US $ thousands ) CAGR ( % ) Share of Afghan exports ( % )
India 54 358 47 79
Russian Federation 5 981 -14 9
Pakistan 3 215 179 5
Kazakhstan 2 367 61 3
Germany 889 34 1

Source : ITC.

Pistachios
Pistachios were the most valuable variety of nut for Afghan
exporters in 2016. Again, India was the leading destina-
tion market for this product, with 92 % of Afghan pistachios
reaching India in 2016. Saudi Arabia imported Afghan pis-
tachios worth approximately US $ 1.7 million in 2016. The
United States, Italy and Canada were also importers of
Afghan pistachios but in marginal volumes.

Photo: Dried Fruits & Nuts, FOX20481.jpg

Table 16 : Afghanistan’s top five export destinations for pistachios

Importers Exported value in 2016 ( US $ thousands ) CAGR ( % ) Share of Afghan exports ( % )
India 23 632 58 92
Saudi Arabia 1 726 7
United States 282 37 1
Italy 88 0
Canada 3 0

Source : ITC.

[ AFGHANISTAN’S DRIED FRUITS AND NUTS VALUE CHAIN ]

28

Dried apricots
Roughly US $ 7.1 million of dried apricots supplied the Indian
market in 2016, with demand increasing rapidly between
2012 and 2016. Pakistan is the second-largest importer of
Afghan dried apricots, with imports likely to top US $ 1 mil-
lion in 2017, considering the rapid increase in demand. The
United States and Canada are both current importers of
Afghan apricots, with growth in imports indicating a posi-
tive future. Meanwhile, Afghan apricot exports to Germany
have declined in the past five years, with Afghan products
facing stiff competition from Turkish suppliers.

Photo: Dried Fruits & Nuts, FOX20461.jpg

Table 17 : Afghanistan’s top five export destinations for dried apricots

Importers Exported value in 2016 ( US $ thousands ) CAGR ( % ) Share of Afghan exports ( % )
India 7 124 31 81
Pakistan 904 76 10
Canada 302 40 3
United States 241 97 3
Germany 109 -7 1

Source : ITC.

Dried figs
Nearly all Afghan exports of dried figs ( 99 % ) were sent to
India, with a recorded value of US $ 59.5 million in 2016. As
with dried apricots, Afghan dried figs have penetrated the
American and German markets, though the total value re-
mains marginal. Considering the high growth rate of Afghan
dried fig imports in Canada, the United States and Germany,
it is likely that all three of these markets will become increas-
ingly significant destination markets for Afghan dried fruits
and nuts in the future.

Photo: dfn 19/3/18, (CC BY-NC-SA 2.0) Francisco Antunes, Dry Figs Bokeh.jpg

Table 18 : Afghanistan’s top five export destinations for dried figs

Importers Exported value in 2016 ( US $ thousands ) CAGR ( % ) Share of Afghan exports ( % )
India 59 544 46 99
Pakistan 313 159 1
Canada 218 116 0
United States 93 91 0
Germany 25 26 0

Source : ITC.

[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]

Pine nuts
Official export statistics specific to pine nuts are not avail-
able. However, it is estimated that pine nuts exports from
Afghanistan amounts to approximately US $ 70 million yearly.
Pine nuts are predominantely exported from Afghanistan in-
shell. Traders roast the pine nuts in-shell as soon as pos-
sible to avoid the product from becoming rancid. Most of
Afghanistan exports of pine nuts ( Pinus gerardiana ) are
directed to Pakistan ( roughly 3,500 tons in 2016 ). Pine nuts
are afterwards reportedly exported to third markets.
SOME TOUGH NUTS TO CRACK :
A SERIES OF CHALLENGES PREVENTING SECTOR GROWTH
Key issues constraining the sector’s ability to compete, connect and change
The following section analyses sector challenges across three
levels : firm capabilities ; institutional and trade support ; and na-
tional environment, policy and regulations. For this analysis, the
issues that are crucial for the competitiveness of Afghan exports
can be sorted into three categories.
Compete : Issues limiting the sector’s capacity to compete in
national and foreign markets. This includes challenges related to
market access, inputs, productivity, quality management, national
infrastructure and compliance with standards.
Compete
As the leading sector among Afghanistan’s exports, Afghan
dried fruits and nuts hold enormous potential to boost total
exports and help close the country’s significant trade defi-
cit. However, the sector’s export capacity is limited by the
low availability of critical inputs and a lack of capacity to
upgrade processing methods to meet international quality
and safety requirements.
[ AFGHANISTAN’S DRIED FRUITS AND NUTS VALUE CHAIN ]
29
Photo: Dried Fruits & Nuts, FOX20420.jpg
Connect : Issues constraining connectivity to suppliers, markets
and clients. This dimension includes challenges related to market
information, marketing and trade promotion, branding and trade
agreements.
Change : Issues limiting the sector’s capacity to change, innovate
and capitalize on emerging trends. This dimension relates to lim-
ited access to skilled labour, production methods, institutional
support to innovate, investment promotion and protection, corpo-
rate social responsibility, and employment for youth and women.
Inconsistent availability of raw materials hinders increased
production
Several factors explain the low levels of fruit production at
the farm level. They include the use of traditional, less pro-
ductive cultivation methods, poor practices for pest and dis-
ease control, lack of adequate storage facilities, and lack
of harvest coordination among smallholders. Furthermore,
producers have economic incentives to push the best-qual-
ity produce from their fruit crops into the fresh fruit market
( where prices are high ), leaving the remaining lower-quality
produce for dried fruit processing. This lowers the overall
quality of Afghanistan’s dried fruit products, which impacts
its reputation in international markets.
30
When it comes to Afghanistan’s nut subsector, production is
primarily small-scale. Limited agricultural extension services
result in poor awareness of and training in best practices
for cultivation and harvesting. At present, poor tree care,
suboptimal fertilizer application and premature harvesting of
fruits and nuts negatively impacts the volume of yields and
their quality. In the case of pistachios and pine nuts, which
both grow wild in Afghanistan, the Afghan Government has
had difficulty regulating the harvest, often resulting in armed
insurgent groups and local strongmen taking control of for-
ests and improperly harvesting the nuts ( e.g. by picking nuts
prematurely ).
Value chain segment Inputs / production
Severity ●●●●○
Activities 1.3.1 to 1.3.4, 1.4.1, 1.4.2,
PoA reference
1.5.1 to 1.5.3.
Inconsistent availability of critical inputs hinders
productivity
Critical inputs for processing dried fruits and nuts, such
as chemicals for drying and mats for sun- and shade-dry-
ing, are in limited supply in the Afghan market. They are
especially difficult to access for rural smallholders who likely
make few ( if any ) trips to major urban centres throughout
the year. Access to irrigated land is another challenge, with
competition over land and water likely to become more in-
tense in the future.
Value chain segment All segments
Severity ●●●●○
PoA reference Activities 2.4.1, 2.4.2
Inadequate processing techniques reduce the value
of Afghan dried fruits and nuts
The use of manual techniques, particularly for postharvest
handling of nuts, often incurs damage to the product, there-
by reducing its market value. Extended sun-drying of fruits
frequently leaves products coated with dirt and foreign ma-
terials, which require them to be washed two or three times.
This increases production costs and the time required to
get products to markets. In some cases, foreign material
becomes so deeply lodged in the dried fruit that it is impos-
sible to remove it through washing.
Increased knowledge and training on more effective
methods to clean and otherwise process dried fruits and
nuts are desperately needed. At present, though, agricultur-
al extension support is focused on fruit and nut cultivation,
and offers little advice on postharvest processing. Making
matters worse, appropriate tools and equipment to improve
processing methods are difficult to purchase due to lack of
access to investment capital.
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]
Establishing modern processing centres ( and upgrading
existing ones ) is a challenge, considering the poor enabling
infrastructure at the national level. Industrial-scale dried fruit
and nut processing requires consistent ( and affordable )
power, which at present is not available.
Value chain segment Processing
Severity ●●●●○
Activities 2.2.1 to 2.2.3, 2.3.1
PoA reference
to 2.3.6
Insufficient access to working capital hinders sector
development
Both producers and exporters face difficulties owing to the
lack of working and investment capital. For example, sector
traders have particular financial needs when it comes to
acquiring larger volumes of products during the production
season. In the case of nut production, the harvesting sea-
sons for almonds, pistachios, pine nuts and walnuts are very
close together ( from July to November ), which necessitates
large amounts of capital in order to purchase produce from
smallholders in bulk. For smallholders, microloans and / or
microcredit would help expand areas under cultivation, as
well as buying inputs such as fertilizers and drying solutions
( during the postharvest drying stage ).
Value chain segment All segments
Severity ●●●●○
PoA reference Activities 1.4.1, 2.4.2
Weak quality management and consideration of food
safety limits access to international markets
Current processing techniques limit the ability of sector en-
terprises to export to countries with strict food safety and
quality standards. Across the value chain there is lack of
awareness of quality and food safety management prac-
tices. At the cultivation level, smallholders do not have the
necessary market information to make strategic decisions
about which types of dried fruits and nuts to cultivate to earn
premium prices in international markets. Minimal knowledge
about pest and disease control, as well as toxins that are
introduced through fungal contamination, all contribute to
difficulties in exporting to highly regulated markets.
These practices already have a negative impact on the
ability of sector companies to enter first-tier markets. This
is the case for imports of Afghan raisins into the European
market. After repeated non-compliance related to the pres-
ence of ochratoxin A, Afghan raisins are only allowed into
the EU market under strict conditions ( health certificate and
analytical test reports ). Early hulling of pistachios increases
the risks of exposure to Aspergillus flavus and A. parasiti-
cus spores, which have the potential to produce aflatoxins.

Afghan pistachios have been rejected in the past due to the
presence of aflatoxins.
Another issue is weak capacity to maintain quality stand-
ards. Poor on-site quality control results in frequent mixing of
raw materials of variable size, colour, moisture content and
overall quality, which decreases the value of the entire batch.
Differing methods of drying fruit also leads to end products
that vary from village to village and province to province,
further reducing sales prospects with international buyers,
who are very focused on product consistency.
Appropriate training is needed on best practices for
drying and roasting that can be reasonably implanted con-
sidering current limitations ( e.g. minimal available capital
and expensive, inconsistent power ). Agricultural extension
workers with expertise in processing, rather than cultivation,
could play a significant role in raising awareness of interna-
tional quality and food safety standards. Investment in cold
chain infrastructure and storage facilities to keep produce
in controlled environments is critical, since the quality and
safety of the final product is subject to weather conditions.
Value chain segment All segments
Severity ●●●●●
Activities 1.5.1 to 1.5.3, 2.1.1 to
PoA reference
2.1.3, 2.2.1 to 2.2.3, 2.5.2
The national quality and SPS infrastructure is not up
to international standards
On the institutional side, the Afghan Government’s capac-
ity to enforce food safety and quality control standards is
limited by the scarcity of technical staff and testing facilities
( e.g. mycotoxin laboratories ) to certify products against in-
ternational grades and standards. As a consequence, phy-
tosanitary certificates issued by the Government are not
recognized in many countries. Moreover, the small-scale
nature of production and processing limits the ability of
[ AFGHANISTAN’S DRIED FRUITS AND NUTS VALUE CHAIN ]
31
Photo: Dried Fruits & Nuts, FOX16524.jpg
sector enterprises to implement traceability measures which
help regulate quality control and reassure buyers. Improving
quality and food safety enforcement is a critical prerequisite
for Afghan dried fruits and nuts enterprises to successfully
penetrate target international markets.
Value chain segment All segments
Severity ●●●●○
PoA reference Activities 2.5.1 to 2.5.4
The tax regime is overly burdensome and decreases
incentives to operate in the formal economy and
invest in the sector
At present, traders report that they are subject to a variety
of informal taxes prior to export. These payments, often re-
ferred to as ‘gifts’ to speed up processing or avoid undue
scrutiny, cut into traders’ margins while also degrading the
credibility of the Afghan Government. The perception also
exists that taxes are not applied consistently across all trad-
ers. While there are no duties or taxes on outgoing goods,
there is a 4 % tax on revenue ( before any profits are calcu-
lated ) that applies to all businesses.
Some traders avoid this tax ( the Basic Revenue Tax ) al-
together by way of smuggling, or by renewing their trader’s
licence every year using a different name. Considering that
dried fruits and nuts are commodities that are often traded
with razor-thin margins, the current tax regime is forcing
traders to either leave the formal economy or see their busi-
ness go under. The tax regime also lowers profits across
the sector, decreasing the capital available to enterprises for
reinvestment, as well as reducing the appeal of new invest-
ments by outsiders.
Value chain segment Marketing / distribution
Severity ●●●○○
PoA reference Activity 1.2.2
 32

Compete: the sector’s export capacity is limited by the low availability of critical inputs and a lack of ability to upgrade processing methods
to meet international quality and safety requirements

Reduced value of Lack of working Lack of understanding and

Limited and unreliable availability of Limited availability
raw material of other critical
inputs
Weak national ability to
products due to capital limits implementation of quality Overly
perform phytosanitary and
inadequate expansion of management and safety burdensome
quality control
processing operations of value practices across the value tax regime
techniques (institutional-side)
chain stakeholders chain (enterprise -side)
Figure 10 : Problem tree : challenges to compete

Lack of
Difficulties to Unsanitary
Postharvest Deforestation knowledge of Phytosanitary Lack of clarity/
Dried fruit is Lack of Limited range/ achieve quality traditional
losses due to affects Small -scale better Scarce Use of Use of lower certificates awareness
Low working Lack of adequate expansion of consistency production and
only production processing availability manual quality seeds, Limited and issued by the about the
productivity in lack of production of capital for infrastructure for financial (outdated proc essing
processed without methods and of inputs at techniques varieties and inconsistent government are taxation
commercial adequate certain varieties traders to processing/ services machinery, methods still
from fresh harvest thus, lack of the district reduces value planting quality control not recognized system
crop farming storage of nuts, e.g. buy large adding value targeting unskilled labour, prevail and
fruit surplus coordination demand for level of the product materials in many among sector
facilities pistachios volumes sector needs poor sorting and dominate the
processing countries enterprises
grading) sector
inputs

Production of Lack of Testing facilities

Lack of Frequent import
Price of fresh Certain certain nuts is Few farmers’ Lack of, or Unawareness of adequate Difficult to certify
Small size Outdated knowledge of/ of substandard Lack of
fruit can get forests are more marketing use of quality storage quality products against
of orchards farming training in Poor enabling planting material awareness of
twice as high controlled by vulnerable as associations or outdated premiums on facilities to control due to international
methods better infrastructure through international
as dried fruit insurgents they only cooperatives machinery for particular keep stock in small -scale standards are
processing undocumented standards
grow wild processing varieties controlled production rare or non -
methods procedures
environments existent

Weak
Limited extension enforcement of
services to raise existing ban on Lack of access
awareness and access to to market
capacity to pistachio forests information
upgrade near harvest
production time
methods

[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]

Connect
Critical factors constraining the sector’s capacity to connect
to international buyers include the weak reputation of trad-
ers ( in terms of reliability and quality consistency ) and the
poor promotion of sector products in foreign markets. As a
result, sector exports are exceedingly concentrated in a few
regional markets, particularly India and Pakistan.
Lack of timely delivery undermines traders’
reputation in international markets
Afghan sector enterprises have faced difficulty delivering
shipments to international buyers in a timely manner. In most
cases the cost of air freight to target markets is prohibitively
expensive, leaving a combination of ground and sea trans-
port as the only available option. Deficiencies in transport
infrastructure often lead to habitual late delivery of ship-
ments, which in turn leads to loss of contracts. There have
been occasions when Afghan products have not managed
to arrive on time for festivals, owing to transit problems once
shipments enter Pakistani territory.
Lengthy border procedures caused by multiple export
controls while transiting through Pakistan not only impede
the timely delivery of shipments but also lead to loss of
quality and even wastage. Often products are treated with
insecticides when they are offloaded onto Pakistani trucks,
which creates problems with SPS and food safety regula-
tions in international markets. Furthermore, products must
be loaded and unloaded several times through these export
controls, which leads to product damage and losses. In ad-
dition, corruption plagues Afghan traders at border Customs
control points, which can lead to the halting of shipments
until bribes are paid.
[ AFGHANISTAN’S DRIED FRUITS AND NUTS VALUE CHAIN ]
33
Photo: Dried Fruits & Nuts, FOX16545.jpg
All of these factors undermine the reputation of sector trad-
ers who are working to build long-term relationships with
international buyers. This situation could be improved
with enhanced coordination with neighbouring countries’
Customs authorities, and especially efforts to halt the unof-
ficial harassment that Afghan goods face when transiting
through Pakistan to India or to Karachi Port. Main activi-
ties aimed at addressing these issues are covered under
the Afghanistan NES document, under the section on Trade
Facilitation.
Value chain segment Marketing / distribution
Severity ●●●●○
PoA reference Activities 1.5.1, 2.2.3
Minimal packaging and branding capacity
hinders visibility of Afghan dried fruits and nuts in
international markets
The limited availability of equipment and inputs for pack-
aging, exacerbated by weak marketing skills among sector
enterprises, constrains the ability of companies to differenti-
ate Afghan dried fruits and nuts from those of competitors.
As mentioned earlier in this Strategy, Afghan dried fruits
and nuts are mostly packed in wooden crates and in plastic
bags, which do not inspire trust when viewed by interna-
tional buyers.
The shortage of packaging facilities leads traders to
export ( or smuggle ) products into neighbouring countries,
mainly Pakistan but also the Islamic Republic of Iran, where
they are processed, packaged and then re-exported without
any Afghan brand. This practice results in a lost opportunity
to build the Afghan brand for dried fruits and nuts in the
global market.
34
Value chain segment Marketing / distribution
Severity ●●●●○
PoA reference
Activities 3.1.1 to 3.1.4, 3.5.1
to 3.5.4
Insufficient in-market support prevents Afghan
companies from creating links with international
buyers
Sector enterprises struggle to connect to buyers in interna-
tional markets due to insufficient provision of in-market sup-
port by relevant institutions. This is especially the case when
it comes to participating in international exhibitions and fairs,
which involves obtaining short-stay visas for business pur-
poses. Moreover, trade attachés stationed at Afghan em-
bassies and consulates around the world have done little
( if anything ) to gather local market intelligence and help
build business links with local buyers.
Value chain segment Marketing / distribution
Severity ●●●○○
PoA reference Activities 3.3.1 to 3.3.5
Weak market intelligence services inhibit the export
potential of sector companies
On the institutional side, more efforts must be made to pro-
vide relevant and up-to-date market intelligence to sector en-
terprises. Critical information includes import requirements,
packaging requirements ( e.g. International Standards For
Phytosanitary Measures ( ISPM ) 15 ), consumption trends,
consumer preferences, target market distribution channels
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]
Photo: Dried Fruits & Nuts, FOX29073.jpg
and product prices in target markets. Sector exporters also
require information on which certifications are required to
export goods to target markets and where these documents
can be secured. Once this shortcoming in information is ad-
dressed, capable farmers’ associations must be in place to
disseminate information to the rural agricultural communities
at the start of the value chain.
Value chain segment All segments
Severity ●●●●○
PoA reference Activities 3.2.1 to 3.2.4
Weak coordination among farmers’ and traders’
associations undermines horizontal and vertical
value chain integration
Weak coordination within associations of farmers and trad-
ers hinders the horizontal and vertical integration of value
chain operations. Considering that the vast majority of dried
fruit and nut growers and processors are smallholders, sec-
tor associations need to be strengthened with the goal of
achieving economies of scale, improved bargaining power
for bulk sales, and knowledge transfer. Enhancing the ca-
pacity of associations can also facilitate the provision and
distribution of inputs, provide information on opportunities
to receive microloans and microcredit, and coordinate mis-
sions by agricultural extension workers.
Value chain segment All segments
Severity ●●●●○
PoA reference Activities 1.1.1, 1.1.2, 1.2.1 to 1.2.3
 Connect: Enterprises are unable to penetrate and retain presence in international markets: as a result exports are concentrated in a few markets

Weak coordination in
Final products are exported farmers’ and traders’
Lack of timely delivery undermine Insufficient in-market Increased dissemination of
without branding and with basic associations undermines
traders’ reliability support market intelligence is required
packaging, if any horizontal and vertical value
chain integration
Figure 11 : Problem tree – challenges to connect

Increased support Insufficient development of

needed to facilitate Farmers do not market information on Lack of
Difficulty in getting Lack of reliable Lack of skills/
Lack of Limited participation of Lack of have timely access international markets promotion
Defective Customs Lack of visas to explore statistical knowledge to
Poor road marketing and availability and Afghan sector Trade attachés coordination to prices of (product specifications, encouraging the
procedures cause machinery for and participate in information on form and
infrastructure business skills variety of in puts companies in are inactive between sector products in other labelling requirements, formation of
delays in delivery packaging int ernational sector size and operate
training for packaging relevant stakeholde rs provinces of packaging, consumption producers’
markets production associations
international fairs Afghanistan trends, market channels, associations
and exhibitions competition, prices)

Lack of proper modern Difficult access Lack of common

Customs equipment in Previous research to fruit trees regional weights
clearance processes at Multiple export / documentation (marginal areas and measures
High levels of
Corruption incidents Customs. Improper controls between or home systems e.g. 1 Weak market
informality in lost during war
(un)loading of products Kabul and Pakistan backyards) make maan equals 4.5 links to farmers
trade years.
also damages the ir estimation their kg in Kandahar, 7
quality Brain drain number kg in Kabul and 8
burdensome kg in Herat

[ AFGHANISTAN’S DRIED FRUITS AND NUTS VALUE CHAIN ]

Lack of agreement
and coordination with
neighbouring
countries’ authorities
and Customs
35
36
Change
Poor processing expertise limits the sector’s capacity
to upgrade the quality of outputs
Unskilled labour is commonly responsible for postharvest
processes, which translates into irregular and lower-quality
outputs. For instance, Afghan nuts frequently have a lower
market value because inadequate hand-shelling techniques
often cause damage to the edible kernel. Additionally, fruits
are not dried using appropriate methods due to lack of
knowledge, training and physical resources. For example,
processors often apply different times for drying fruit, and
thus the moisture content of the dried fruit is not uniform.
In turn, this reduces the value of the final product. Further
practical training is needed, particularly in terms of handling,
sorting, grading and packaging of products.
Value chain segment Processing
Severity ●●●●●
PoA reference Activities 1.1.1, 1.1.2, 2.2.1 to 2.2.3
Sector enterprises have weak management skills,
constraining their ability to expand their businesses
and reach target international markets
Afghan sector enterprises frequently lack postharvest man-
agement skills, which results in low quality and consistency
of their products. Minimal ( if any ) proficiency in contem-
porary marketing techniques, combined with language
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]
Photo: Dried Fruits & Nuts, FOX20432.jpg
limitations and minimal experience with e-mail communi-
cations, impedes the ability of sector enterprises to build
relationships with international buyers.
Value chain segment Marketing / distribution
Severity ●●●●○
PoA reference Activity 1.2.2, 3.2.1
Low levels of investment constrain the sector’s
capacity to upgrade current processing methods
Sector capacity to upgrade current processing methods has
been constrained by low levels of investment in machinery,
storage and processing facilities, as well as limited cold
chain infrastructure. Investment in the sector has been lim-
ited for several reasons, such as security concerns, access
to credit and weak protections for investors. Another impor-
tant hindering factor is the legal ambiguity surrounding the
ownership and leasing of land. This can drain resources as
investors spend time in the complicated process of acquir-
ing new land and / or protecting rights to land they already
own. Furthermore, large-scale investments – for example,
setting up an industrial park – are inhibited by a poor ena-
bling infrastructure, such as the irregular and costly supply
of electricity and poor road infrastructure.
Value chain segment All segments
Severity ●●●●○
Activities 1.4.1, 1.4.2, 1.5.1, 2.3.1
PoA reference
to 2.3.6

Low levels of research on best-suited varieties
of dried fruits and nuts for the Afghan climate
and associated processing techniques
Insufficient effort and resources have been dedicated to up-
grading processing technology, particularly when it comes
to drying and roasting methods. When considering available
technology to bring to Afghanistan, infrastructural weakness-
es ( i.e. roads, electricity and water ) and limited investment
capital must to taken into consideration. The application of
solar-powered technology should be explored for activities
throughout the value chain.
Another area of focus must be on maximizing yields
through further study of fruit and nut tree types. Certain
nuts, such as pistachios, are harvested from public forests
rather than commercial orchards. This renders pistachios
vulnerable to deforestation and illegal harvesting by insur-
gents and local strongmen. Threats to Afghanistan’s pista-
chio supply can be addressed through the development of
commercial pistachio orchards that are privately owned and
operated. Further research must be conducted to identify
which strains of pistachio trees can be domesticated and
yield high-value crops.
Finally, there is a great need to conduct comprehensive
research cataloguing fruit and nut varieties which are native
to Afghanistan ( or have been proven to thrive in its climate ) to
understand their properties and potential commercial value.
Value chain segment All segments
Severity ●●●●○
PoA reference Activity 1.3.2
[ AFGHANISTAN’S DRIED FRUITS AND NUTS VALUE CHAIN ]
37
Photo: Dried Fruits & Nuts, FOX29018.jpg
Lack of women-to-women service delivery at every
stage of the value chain
Cultural norms limit women’s interaction with men outside
the household, which inhibits the capacity of women to con-
tribute to the dried fruits and nuts value chain at their maxi-
mum potential. To remedy this deficiency, tailored training
must be organized for female workers in such activities as
drying, roasting, sorting and grading. Ideally this training
would be given to women by women.
Outside of their role as manual labourers, women have
little presence in the sector value chain. This is hardly sur-
prising, considering that in conservative rural communities
a woman haggling over raisin prices with a non-relative
male buyer would be considered scandalous. While trying
to avoid offending conservative sensibilities, efforts should
be made to involve women in more significant roles in the
sector’s value chain, outside the sphere of manual labour ;
for example, supporting the involvement of more women in
administrative positions, such as accountants and market-
ing officers.
Value chain segment All segments
Severity ●●●●○
PoA reference Activity 2.2.1
 38

Change: The sector has limited ability to upgrade production methods

Limited skills and knowledge of Low levels of R&D to upgrade value

Weak abilities of sector Improvements in the sector are
the labour force restrains the chain operations and lack of
exporters to expand businesses Low levels of investment constrained due to weak
sector’s capacity to upgrade research on best-suited commercial
and develop relationships with service provision to women
the value and quality of varieties of certain fruits/nuts for
international buyers across the value chain
production production in Afghanistan
Figure 12 : Problem tree – challenges to change

Poor enabling
Low capacity
Weak infrastructure Lack of women-to-women
Insufficient knowledge of Limited language and credibility
management Security (high costs of Limited financial, infrastructural
and practical training in and computer of institutions service delivery to improve
and marketing concerns electricity and (labs) and technical resources postharvest activities
appropriate methods skills for investor
skills poor road
protection
infrastructure)

Lack of clarity
Poor on property
High levels of
enforcement of rights (land
corruption
contracts ownership,
tenure)

[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]
 39

IN A NUTSHELL : POSITIONING THE

AFGHAN DRIED FRUITS AND NUTS
SECTOR IN THE GLOBAL MARKET

This Strategy aims to achieve the following impact :

• Increase volumes of production and exports • Optimize timing of entry to key markets
• Ensure food safety compliance of final products • Improve packaging and overall marketing of dried fruits and
• Gradually upgrade the quality of production from low/medium nuts
quality to high quality • Position Afghan dried fruits and nuts as a premium product.

On one hand, global demand for dried fruits and nuts is

expected to continue expanding, driven by increasing
consumption in Europe and Asia. This is promising for the
Afghan sector because of Afghanistan’s proximity to large
Asian markets. Moreover, access to both European and
Asian markets has improved with the opening in 2017 of an
air cargo corridor with India and a ground corridor to the
Islamic Republic of Iran’s Chabahar Port. Better access to
air shipping will not only improve timely delivery of products
but also reduce spoilage.
On the other hand, the global market for dried fruits and
nuts is characterized by the dominance of a handful of sup-
pliers for particular products ( e.g. the United States and
Islamic Republic of Iran dominating the pistachio market ).
Global production levels have experienced shocks due to
climate-related misfortunes and political turmoil throughout
the world. Global prices, in turn, have fluctuated widely with
the inconsistent supplies. While demand has often outpaced
supply in the sector in recent years ( especially for premium
varieties of nuts ), suppliers are expected to continue to com-
pete aggressively on price in the coming years.
The dried fruits and nuts sector encompasses a wide va-
riety of products, making it challenging to visualize a price-
based segmentation of the market. Nevertheless, figure 13
provides a very simplistic characterization of how pricing is
Photo: Dried Fruits & Nuts, FOX20507.jpg
segmented in the sector.

[ IN A NUTSHELL : POSITIONING THE AFGHAN DRIED FRUITS AND NUTS SECTOR IN THE GLOBAL MARKET ]
40
Figure 13 : Market segments according to price ranges
Premium
Middle
Bottom end
Low price
Source : Centre for the Promotion of Imports from Developing Countries ( 2015 ).
Considering the price segmentation dynamics, industrial-
scale suppliers like the United States and Turkey are better
positioned than Afghanistan to respond to global market
demand. Having invested heavily in high-tech agricultural
and processing technology, the dominant suppliers are able
to offer their buyers comparatively low prices with high qual-
ity and food safety assurances.
In Afghanistan, there has been minimal investment in ad-
vanced technology that could decrease drying and other
processing costs. This can be explained, in part, by the
weak business environment, high cost of electricity and the
fact that most production is small-scale.
Considering the current challenges, Afghanistan is bet-
ter suited for competition in the premium price segment ( or
close to it ). In the short and medium terms, Afghan produc-
ers may not be able achieve the economies of scale that
allow for aggressive price competition. By focusing on the
premium market segment, they may be able to outclass their
competitors in a number of product classes, listed below :
ƒƒ Premium varieties of dried fruits or nuts that are unique
( in taste, shape, etc. ) to Afghanistan
ƒƒ Dried fruits with naturally high water content
ƒƒ Dried fruits without preservatives or added sugar
ƒƒ Large-sized grapes
ƒƒ Certified organic products
ƒƒ Products enhanced through value addition.
Considering Afghanistan’s comparative advantages in a
number of products within the sector, there are three specific
opportunities that sector enterprises can take advantage of
to obtain premium prices for their products.
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]
Luxury varieties
Organic and fair-trade certified products
Freeze-dried fruit
Chocolate-coated fruits and nuts
Most dried fruits and nuts with food- safety certification and basic
corporate social responsibility certification
Basic -quality nuts and dried fruit without certification
1. Capitalize on premium varieties : Afghanistan pos-
sesses hundreds of varieties of raisins and dozens of
varieties of almonds, to the extent that not all varieties
have been fully documented and assessed for sale in
international markets. Many of these products, consider-
ing their rare and distinctive qualities, could be sold at a
premium in international markets.
2. Promote organic production : Afghanistan has excelled
in the production of dried figs and apricots. While there
are few opportunities to obtain premium prices based
on particular varieties of apricot, there are opportunities
to achieve high profit margins through high-quality pro-
duction and organic certification. Due to the low levels
of pesticides and fertilizers used in production, most
Afghan agricultural products are organic by default. To
date, the concept of organic certification in Afghanistan
is virtually unknown, representing a missed opportunity
for Afghan dried fruits and nuts enterprises.
3. Time market entry : Afghanistan can adopt a more strate-
gic approach to market entry, considering the seasonality
of demand for certain varieties of dried fruits and nuts in
key markets. In this regard, optimal time of entry can be
determined through price observations and an analysis
of cyclical patterns of price movements, in order to make
sales at times of peak demand and maximize profit.
Owing to higher production volumes and market demand,
certain product varieties have better potential in international
markets. Table 19 summarizes opportunities for the Afghan
dried fruits and nuts sector to tap into existing demand
and / or generate new demand.
 41

Table 19 : Afghanistan’s dried fruits and nuts market potential by subproduct

Market
Product Competition Market positioning / strategy
opportunities
• Varieties such as green raisins have the highest potential as a revived Afghan
brand, which can have positive spillover effects for the rest of the sector
Green raisins : • Afghan shade-dried raisins are a specialty item in nearby markets ( India and
Main competitors are the Pakistan )
Islamic Republic of Iran • Besides the shape and taste of Afghan green raisins, the traditional process-
and the United States for ing method ( shade-drying ) further distinguishes the product from competing
green raisins suppliers
Red raisins :
Competition from the
High-end markets United States and Turkey • Value addition possibilities are enormous, since the current baseline in terms
for premium for other more common of quality is relatively low
Raisins varieties varieties • Improving time of market entry is key
• Increasing quality and adding value ( e.g. through packaging ) will be the main
High-end market strategy, as there is little scope for differentiation with dried apricots and figs
Dried apricots / potential with • Moving towards organic certification ( with accompanying ‘organic’ branding )
dried figs organic certification Main competitor is Turkey can provide higher profit margins in premium market segments in the long term
• Almonds with soft shells ( e.g. satarbai and kaharbai varieties ) benefit from high
demand in India and Pakistan, but unfortunately prices obtained by Afghan
traders in these markets remain low
• Developed markets like the United States could represent an excellent market
for the sale of soft shell varieties, with prices set at a premium based on size
and colour
High-end market • Improving time of entry : in many markets demand for almonds is seasonal, so
potential for Main competitors are the traders have the opportunity to maximize profits by delaying sales until optimal
Almonds premium varieties United States and Spain prices can be obtained
Main competitors are the
Islamic Republic of Iran • Pistachios garner high prices in international markets
Pistachios High-end markets and the United States • Improving packaging is crucial
• Pine nut market is highly concentrated ( strong demand, particularly in China )
• Value addition possibilities are significant. Good margins exist for well-roasted
pine nut products.
High-end market Main competitors are • Higher profit margins exist for organic and socially responsible pine nuts
Pine nuts potential Pakistan, Turkey and China production ( e.g. FairWild )

To reach their full potential as suppliers in international mar-
kets, Afghan dried fruit and nut enterprises must take the
following steps to address existing weaknesses.
ƒƒ Increase volume of production and exports : This is a pre-
requisite for improving sector performance in international
markets. Orchard specialization should be promoted with
the objective of increasing yields. At the same time, farm-
ers must be encouraged and trained to produce specific
varieties of fruits and nuts that can be sold at a premium
in international markets. Organic certification in the pro-
duction of certain crops, such as apricots and figs, has
the potential to immediately open up these products for
sale in new niche markets with considerably higher profit
margins. Moreover, the capacity of producers’ associa-
tions should be enhanced to facilitate supply aggregation.
ƒƒ Ensure food safety compliance of outgoing shipments :
The second prerequisite for improving the position of
Afghan dried fruits and nuts in global markets is im-
proving compliance with internationally recognized food
safety standards. Non-compliance not only damages the
international image of Afghan products but also effective-
ly blocks Afghan exports from entering highly regulated
developed markets. Concrete steps that can be taken to
address this issue include the introduction of traceability
systems in the value chain and training value chain actors
on proper food-handling methods to reduce instances of
harmful contamination.
ƒƒ Upgrade the quality of dried fruits and nuts from low/
medium quality to high quality : To compete on the ba-
sis of quality rather than price, Afghanistan must improve
postharvest operations. Reforms must take place along
the value chain, from sorting to grading to drying and
roasting techniques. The capacity of existing processing
centres must be improved to ensure quality consistency
and aggregation of supply. In parallel, increased access
to working and investment capital for value chain actors
can be directed towards upgrading technology and pro-
cessing methods in the sector.

[ IN A NUTSHELL : POSITIONING THE AFGHAN DRIED FRUITS AND NUTS SECTOR IN THE GLOBAL MARKET ]
42

ƒƒ Optimize time of entry in key markets : Optimizing timing
of entry into key markets will require investments in cold
chain infrastructure to minimize spoilage. Additionally,
market intelligence regarding optimal times to sell in each
target market should be collected and disseminated to
Afghan producers and exporters.
ƒƒ Improve packaging and overall marketing : Packaging
is a fundamental element in the sector, and improving
packaging attractiveness and methods must be a priority
for Afghan enterprises. Clearly marking Afghan products
with a ‘Made in Afghanistan’ label will also support the
long-term goal of differentiating Afghan dried fruits and
nuts from their competitors.
ƒƒ Position Afghan dried fruits and nuts as premium
products : In the short-term, Afghanistan can build on
the strong reputation of certain varieties of its dried fruits
and nuts in established destination markets such as India
and Pakistan. To capture more revenue along the value
chain, Afghan exporters can shift away from bulk ship-
ments to retail-ready packaging that reinforces product
differentiation. As the Afghan dried fruits and nuts sector
builds its capacity in packaging and marketing through
trade in South Asia, it will become more capable of selling
its premium-grade products in highly competitive devel-
oped markets.

MARKET IDENTIFICATION
The following section provides insights into relevant market
development opportunities. Key markets with short-term
opportunities to increase exports are selected based on
factors such as existing trade relationships, geographic
proximity and cultural affinity. These factors form the foun-
dation for optimism about expanded trade ties in the future.
In the medium-to-long term, it is expected that the evolving
capacities of Afghan exporters and a steadily improving
business environment will contribute to exporters’ success-
fully penetrating new markets.
The products listed under the short-term section will also
hold export potential in the medium-to-long term, unless
specifically mentioned otherwise.

SHORT-TERM PHASE

Table 20 : Short-term phase ( 0 –3 years )

Afghan dried fruits Annual growth of Annual gross

Target Distribution and nuts exports to sector imports all domestic product
Product Key success factors
market channel market 2016 ( US $ suppliers 2012–2016 growth estimates
thousands ) ( % ) 2017–2021 ( % )
• Price competitiveness
Almonds, • Product differentiation, Wholesalers,
Pakistan* raisins, packaging supermarkets 29 988 18.1 5.56
• Optimal entry timing
Almonds, • Supply consistency
pistachios, • Product differentiation, Wholesalers,
India raisins packaging supermarkets 86 871 8.89 7.73
• Access to high-quality inputs
Raisins, • Optimal entry timing Wholesalers,
China almonds • Branding e‑commerce – 3.43 6.09
• Attractive product
presentation
• Sanitary safety and quality
Kazakhstan Raisins standards Wholesalers 2 426 0.9 3.14
• Sanitary safety and quality Wholesalers,
standards ( low pesticide importers ( with
levels ) direct links to
Walnuts, • Price competitiveness supermarkets,
UAE almonds • Packaging requirements hypermarkets ) 3 617 3.86 3.17

* Official data for Pakistan imports of Afghan fresh fruits and vegetable products for 2015.
Direct data was used for Afghan dried fruits and nuts exports to market.

[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]

Pakistan
Products : almonds ( shelled and in-shell ), raisins
Afghan exporters of dried fruits and nuts rely heavily on neigh-
bouring Pakistan as a destination market, where demand
for Afghan products is high but prices paid by buyers are
low. Commonly, Afghan dried fruits and nuts are imported to
Pakistan, undergo value edition ( e.g. sorting and packaging ),
and are then re-exported to India and the Middle East.
Although Pakistan produces almonds, it must import
additional quantities to meet domestic demand. Pakistani
almond imports increased considerably between 2012 and
2016, with a 24 % increase in shelled almond imports and a
40 % increase for in-shell almonds. Pakistan is a key market
for Afghan almonds, although Afghan traders face intense
competition from the United States.
It is important to consider that consumer preferences
and prices in regional markets such as Peshawar and
Quetta are similar to those in local Afghan markets, while
Islamabad, Lahore and Karachi offer opportunities for higher
returns if proper packaging and quality control requirements
are addressed. In Pakistan’s major urban centres there are
also opportunities to sell directly to supermarkets, including
Metro Cash & Carry, Hyperstar ( Carrefour ), Al Fatah and
Chase Up Shopping.
Pakistan is a traditional Afghan destination market for
raisins, particularly green raisins. Most Afghan raisins arrive
in Pakistan with minimal processing, allowing Pakistani en-
terprises to earn significant profits through varying types of
value addition. Although Pakistanis usually buy food from tra-
ditional shops and markets ( where dried fruits and nuts are
sold by the kilogram in simple unbranded plastic bags ), in
major cities consumers are slowly increasing their purchases
of packaged and processed foods. Adding value through
packaging and product differentiation is a short-term strategy
option for Afghan exporters supplying the Pakistani market.
India
Products : almonds, pistachios, raisins
India is one of the top destination markets for Afghanistan’s
dried fruits and nuts. Factors that have facilitated sales for
Afghan traders in India include geographic proximity, pref-
erential tariffs ( afforded by the Indian Government ) and the
launch in 2017 of an air cargo corridor between both coun-
tries. Additionally, Indian government agencies are actively
supporting Afghan dried fruit and nut traders by establishing
warehousing and wholesaling operations in India.
India is the leading importer of Afghan almonds, with
sustained increase in demand between 2012 and 2016.
During this period, annual growth of imports of in-shell
almonds was 15 %, with the volume of shelled almonds
increasing by 20 % . Despite a strong presence in India,
Afghan almond exporters are severely outperformed by their
[ IN A NUTSHELL : POSITIONING THE AFGHAN DRIED FRUITS AND NUTS SECTOR IN THE GLOBAL MARKET ]
43
competitors in the United States. India’s domestic demand
is fulfilled mainly by American almonds, with American trad-
ers capturing 86 % of all in-shell almond imports and 39 % of
shelled almond imports. Meanwhile, Afghanistan accounts
for a minimum percentage of the Indian market. Afghan al-
monds only account for 0.5 % and 15.7 % for in-shell and
shelled almond imports to India, respectively.
Important seasonal demand for almonds ( September
to January ) should be considered by Afghan exporters. In
addition, volume consistency and production considerations
related to quality must be adequately addressed by Afghan
almond enterprises if they are to enhance their market po-
sitioning. Indian consumers prefer longer kernel varieties of
almonds, which can attract a premium of up to 50 % above
standard varieties. Premium prices will also be offered for
almonds packed in 250, 500 and 1,000 gram pouches, and
shipped in 10 kg cardboard boxes, both in wholesale mar-
kets and supermarkets. Only 5 % of retail sales of almonds in
India are in branded pre-packaged form, as many retailers
will weigh the requested quantity in the presence of their
customer and package it in unbranded plastic.
India is also an important market for pistachios, particu-
larly in shelled form, accounting for roughly 11 % of global
pistachio imports. Demand for shelled pistachios has grown
rapidly, at an average rate of 24 % between 2012 and 2016.
The retail sector is the main driver of demand, responsible
for around 80 % of domestic consumption. As with almonds,
packaging and branding of pistachios is minimal.
Demand for pistachios is highest during winter, when most
Indian marriages and festivals take place ( nuts are traditional
Indian gifts and snacks for guests on special occasions ).
Although Afghanistan is an important supplier of pistachios
to India and enjoys a comparative advantage for pistachio
production by virtue of favourable weather conditions, it fac-
es increasing competition from the Islamic Republic of Iran
( which accounts for nearly 48 % of Indian pistachio imports ).
To strengthen its position in the Indian market, Afghan ex-
porters must improve consistency of supply and demonstrate
patience by timing entry to achieve optimal prices.
Along with steady demand for Afghan nuts, India is also
the leading importer of Afghan raisins. Certain raisin varieties,
such as Afghan green raisins, have established excellent
reputations in the Indian market and have the potential to
obtain premium prices. Afghan exports of raisins to India are
mostly unprocessed, representing an opportunity for Afghan
traders to capture more revenue through value addition.
On the regulatory side, Indian authorities are not par-
ticularly stringent with food safety regulations. Few ( if any )
shipments of Afghan dried fruits and nuts have been rejected
in recent years by Indian Customs control for reasons re-
lated to food safety and / or SPS compliance. Afghan food
products destined for India do, however, require a Quality
Certificate from the Afghan Raisins, Fruits and Vegetables
Export Promotion Administration ( ARFVEPA – more popularly
known as the ‘Raisins Directorate’ ), as well as a Phytosanitary
Certificate issued by MAIL
44

Box 5 : Export potential to India of selected products

The products with the highest untapped export potential for the
Indian market are raisins and dried apricots. Afghanistan is already
a leading supplier of these products to India but has the potential
to increase its share of imports relative to competitors, along with
adding additional value prior to shipment.
India is also a prime export destination for Afghan nut exports,
with growing demand and a preferential tariff for Afghan traders.
Further investigation is needed to assess whether Afghanistan is
able to supply the precise types of dried fruits and nuts preferred
by Indian consumers, and which varieties sell at premium prices.*

Figure 14 : Export potential to India – figs Figure 16 : Export potential to India – dried apricots

India_ HS 080420 – Fresh or dried figs India_ HS 080620 – Dried grapes

UNTAPPED EXPORT POTENTIAL MARKET ENTRY REQUIREMENTS UNTAPPED EXPORT POTENTIAL MARKET ENTRY REQUIREMENTS

• Labelling requirements • Labelling requirements

• Restricted use of certain substances in foods and feeds • Restricted use of certain substances in foods
and their contact materials and feeds and their contact materials
• Special authorization requirement • Special authorization requirement
USD 26,625 tsd • Tolerance limits for residues of or contamination by USD 23,005 tsd • Tolerance limits for residues of or contamination
certain (non-microbiological) substances by certain (non-microbiological) substances
• Registration requirements for importers • Registration requirements for importers
DEMAND 2020 • Storage and transport conditions DEMAND 2020 • Storage and transport conditions
• Other requierements on production or post-production • Other requierements on production or post-production
41% processes, not elsewhere specified 41% processes, not elsewhere specified
• Testing requirement • Testing requirement
• Certification requirement • Certification requirement
USD 28.5 mn USD 27.4 mn
• Inspection requirement • Inspection requirement
2011-2015 • Distribution and location of products after delivery 2011-2015 • Distribution and location of products after delivery
• Traceability requirements, not elsewhere specified • Traceability requirements, not elsewhere specified
APPLIED TARIFF • Marketing requirements APPLIED TARIFF • Marketing requirements
• Packaging requirements • Packaging requirements
Afghanistan: 0% • Custom inspection, processing and servicing fees Afghanistan: 0% • Custom inspection, processing and servicing fees
Ø other suppliers: 0% • Additional charges not elsewhere specified Ø other suppliers: 0% • Additional charges not elsewhere specified
• Restricted use of certain substances in foods and feeds • Restricted use of certain substances in foods and feeds
Tariff advantage: 0pp and their contact materials Tariff advantage: 0pp and their contact materials
• Microbiological criteria of the final product • Microbiological criteria of the final product
• Plant growth processes • Plant growth processes
COMPETITION • Irradiation COMPETITION • Irradiation
• Product identity requirement • Product identity requirement
Concentrated • Requirement to pass through specified port of customs Concentrated • Requirement to pass through specified port of customs
equivalent suppliers • Import licence fee equivalent suppliers • Import licence fee
• Hygienic practice during production • Hygienic practice during production
Main suppliers: Afghanistan, Pakistan, Iran Main suppliers: Afghanistan, China, Greece
(Original documents available at www.macmap.org) (Original documents available at www.macmap.org)

UNITED VALUE UNITED VALUE

Relative index: 1.01 Relative index: 1.02

Figure 15 : Export potential to India – dried grapes Figure 17 : Export potential to India – fresh or dried nuts

India_ HS 081310 – Dried apricots India_ HS 081310 – Dried apricots

UNTAPPED EXPORT POTENTIAL MARKET ENTRY REQUIREMENTS UNTAPPED EXPORT POTENTIAL MARKET ENTRY REQUIREMENTS

• Labelling requirements • Labelling requirements

• Restricted use of certain substances in foods • Restricted use of certain substances in foods
and feeds and their contact materials and feeds and their contact materials
• Special authorization requirement • Special authorization requirement
USD 7,798 tsd • Tolerance limits for residues of or contamination USD 7,798 tsd • Tolerance limits for residues of or contamination
by certain (non-microbiological) substances by certain (non-microbiological) substances
• Registration requirements for importers • Registration requirements for importers
DEMAND 2020 • Storage and transport conditions DEMAND 2020 • Storage and transport conditions
• Other requierements on production or post-production • Other requierements on production or post-production
41% processes, not elsewhere specified 41% processes, not elsewhere specified
• Testing requirement • Testing requirement
• Certification requirement • Certification requirement
USD 10.5 mn USD 10.5 mn
• Inspection requirement • Inspection requirement
2011-2015 • Distribution and location of products after delivery 2011-2015 • Distribution and location of products after delivery
• Traceability requirements, not elsewhere specified • Traceability requirements, not elsewhere specified
APPLIED TARIFF • Marketing requirements APPLIED TARIFF • Marketing requirements
• Packaging requirements • Packaging requirements
Afghanistan: 0% • Custom inspection, processing and servicing fees Afghanistan: 0% • Custom inspection, processing and servicing fees
Ø other suppliers: 4% • Additional charges not elsewhere specified Ø other suppliers: 4% • Additional charges not elsewhere specified
• Restricted use of certain substances in foods and feeds • Restricted use of certain substances in foods and feeds
Tariff advantage: 4pp and their contact materials Tariff advantage: 4pp and their contact materials
• Microbiological criteria of the final product • Microbiological criteria of the final product
• Plant growth processes • Plant growth processes
COMPETITION • Irradiation COMPETITION • Irradiation
• Product identity requirement • Product identity requirement
Concentrated • Requirement to pass through specified port of customs Concentrated • Requirement to pass through specified port of customs
equivalent suppliers • Import licence fee equivalent suppliers • Import licence fee
• Hygienic practice during production • Hygienic practice during production
Main suppliers: Afghanistan, Turkey, Pakistan Main suppliers: Afghanistan, Turkey, Pakistan
(Original documents available at www.macmap.org) (Original documents available at www.macmap.org)

UNITED VALUE UNITED VALUE

Relative index: 1.2 Relative index: 1.2

Source : ITC ( 2017 ) : Reconnecting Afghanistan to global markets – An ITC assessment of export potentials and trade obstacles.
* ITC (2017) - Yvan Decreux, Maria Del Mar Cantero and Julia Spies: Reconnecting Afghanistan to global markets – An ITC
assessment of export potentials and trade obstacles.

[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]

China
Products : raisins, almonds, pine nuts
In the near future, China will likely be an ever more appeal-
ing destination for Afghan exports as new trade routes
open up. China has started the process of extending the
China–Pakistan Economic Corridor to Afghanistan, and both
countries have signed a Memorandum of Understanding
to include Afghanistan in China’s massive regional project,
the ‘One Belt, One Road’ initiative. Furthermore, China–
Afghanistan train connections are under development in the
northern province of Balkh, with Chinese investments and
commercial ties expected to deepen in the next few years.
In the short term, there is high potential to increase ex-
ports of raisins to China, owing to growing domestic con-
sumption. Currently, Chinese raisin demand is satisfied by
Uzbekistan and the United States, who have effectively
split the market with import shares of 46 % and 43.8 % ,
respectively.
Raisins are predominantly consumed as a snack but
demand for raisins destined for the food processing indus-
try is also increasing. Consumers tend to favour local fla-
vours ( e.g. Xinjiang-produced green raisins ) over imported
varieties that are often considered ‘too sweet’. As a result,
imported raisins are mostly used for the food processing
industry ( e.g. bakeries ), which prefer to use higher-quality
imported raisins.
Imports of Afghan almonds ( both shelled and in-shell ) to
China have been experiencing sustained growth, although
the Chinese market remains dominated by almond imports
from the United States. Almonds are typically consumed
as a snack, as they are associated with a healthy lifestyle.
Almonds are sold in retail outlets, convenience stores, su-
permarkets and hypermarkets. Packaging for almonds rang-
es from bags and cans to bulk quantities packed in boxes.
Another nut product with potential in the Chinese market.
China is a global leader in production, export and re-export
of pine nuts. Chinese companies import unshelled pine nuts
from Korea and Russia, process them and re-export them
as Chinese pine nuts.
Geographic proximity and strong production of green
raisins and almonds in Afghanistan both work in favour of
Afghan exporters interested in tapping into the Chinese
market. Additionally, the Afghan–Chinese Chamber of
Commerce and Industry is working to provide marketing
support to Afghan dried fruit and nut enterprises to facilitate
access to China.
Distribution channels for this market are mainly wholesal-
ers, particularly the Yide Lu wholesale market in Guangzhou,
although e-commerce is emerging as a retail avenue with
enormous potential to reach Chinese consumers. Attractive
branding is a fundamental requirement to effectively tap into
the most coveted Chinese distribution channels that supply
high-income consumers.
[ IN A NUTSHELL : POSITIONING THE AFGHAN DRIED FRUITS AND NUTS SECTOR IN THE GLOBAL MARKET ]
45
Kazakhstan
Product : raisins
Kazakhstan is a vibrant market for raisins, with consumers
particularly fond of red raisins. In 2016, Kazakhstan imported
more than US $ 37 million of raisins, predominantly originat-
ing in Uzbekistan ( 77 % of total raisin imports ), while imports
from Afghanistan only accounted for 6.4 %. Both countries
have been working on strengthening their trade relations
and cooperation in agriculture, with the Kazakh Government
agreeing to facilitate approval of visas for Afghan traders.
Due to its strategic location, trade ties with Kazakhstan
are crucial to reach more distant markets, especially the
Russian Federation. Complying with SPS requirements to
enter Kazakhstan will enable Afghan exporters to access
the Belarusian and Russian markets, since they share a
Customs union and have harmonized their SPS require-
ments. It is worth noting that packaged food is becoming
increasingly important for Kazakh buyers, especially among
consumers in urban centres.
UAE
Products : walnuts ( shelled and in-shell ), almonds
The UAE is one of the leading destinations for almonds and
walnuts. Between 2015 and 2016, total imports of walnuts
( in-shell ) to the UAE increased by 60 %. Almonds ( particu-
larly in shelled form ) are in particularly high demand, with
the UAE holding a dominant position in the global almond
market as the fifth-largest importer. The UAE produces very
little food domestically, while also experiencing growth in its
( high-income ) population and managing a booming luxury-
focused tourism industry. These indicators suggest that the
UAE is a ripe market for premium-grade dried fruits and
nuts, with buyers willing to pay prices at the upper end of the
global price spectrum as long as the quality is uncompro-
mising. The UAE is also a regional re-exporter, with higher
volumes of dried fruits and nuts imports during holiday sea-
sons in order to re-package and ship to other destinations
in the Middle East.
At present, Afghanistan exports relatively low quantities
of almonds and walnuts to the UAE, with the United States
dominating imports in these two products. This presents
an enticing opportunity for Afghan traders, if – and only if –
they can address quality control requirements. Afghan dried
fruit and nut enterprises must have processing and sorting
capacity sophisticated enough to consistently deliver the
premium-grade products that the Emirati market demands.
Regulatory compliance is another critical considera-
tion for Afghan traders looking to export to the UAE. In May
2017, the UAE banned imports of fruits and vegetables from
five Arab countries after high levels of pesticides were de-
tected. With a diverse, high-income population from around
the world, the Emirati Government is increasingly stringent
46

on food safety and SPS. The UAE has specific packaging

requirements for nuts, where “shelled roasted nuts, salted
or sweetened” must be packed in metal cans, aluminium
foil bags or plastic bags. Requirements for product labelling
is another hurdle that Afghan traders must overcome, with
deliberate research necessary to ensure that shipments of
dried fruits and nuts adhere to the most up-to-date require-
ments issued by the Emirati Government.

Photo: Dried Fruits & Nuts, FOX28989.jpg

Box 6 : Export potential to the UAE of selected products

Two products with high, untapped export potential in the Emirati

market are raisins and pistachios. While Afghan exporters have
duty-free access to the Emirati market, they continue to sell their
products at relatively low prices in both these product categories.*

Figure 18 : Export potential to the UAE – dried grapes Figure 19 : Export potential to the UAE – fresh or dried
pistachios

United Arab Emirates: HS 080620 – Dried grapes United Arab Emirates: HS 0802Xb – Fried or dried pistachios

UNTAPPED EXPORT POTENTIAL MARKET ENTRY REQUIREMENTS UNTAPPED EXPORT POTENTIAL MARKET ENTRY REQUIREMENTS

• Regularions concerning terms of payment imports • Regularions concerning terms of payment imports
• Special Authorization requirement for SPS reasons • Special Authorization requirement for SPS reasons
• Prohibitions/restrictions of imports for SPS reasons • Prohibitions/restrictions of imports for SPS reasons
not elsewhere specified not elsewhere specified
USD 13,018 tsd • Packaging requirements USD 4,022 tsd • Packaging requirements
• Treatment for elimination of plant and animal pests • Treatment for elimination of plant and animal pests
and disease-causing organisms in the final product and disease-causing organisms in the final product
DEMAND 2020 • Testing requirement DEMAND 2020 • Testing requirement
• Certification requirement • Certification requirement
20% • Inspection requirement 20% • Inspection requirement
• Quarantine requirement • Quarantine requirement
• Pre-shipment inspection • Pre-shipment inspection
USD 35.5 mn USD 82.3 mn
• Custom inspection, processing and servicing fees • Custom inspection, processing and servicing fees
2011-2015 • Merchandise handling or storing fees 2011-2015 • Merchandise handling or storing fees
• Import licence fee • Import licence fee
APPLIED TARIFF • Systems Approach APPLIED TARIFF • Systems Approach
• Tolerance limits for residues of or contamination • Tolerance limits for residues of or contamination
Afghanistan: 0% by certain (non-microbiological) substances Afghanistan: 5% by certain (non-microbiological) substances
Ø other suppliers: 0% • Restricted use of certain substances in foods and feeds Ø other suppliers: 5% • Restricted use of certain substances in foods and feeds
and their contact materials and their contact materials
Tariff advantage: 0pp • Labelling requirements Tariff advantage: 0pp • Labelling requirements
• Hygienic requirements not elsewhere specified • Hygienic requirements not elsewhere specified
• Plant growth processes • Plant growth processes
COMPETITION • Storage and transport conditions COMPETITION • Storage and transport conditions
• Origin of materials and parts • Origin of materials and parts
Concentrated • Procvessing history Concentrated • Procvessing history
equivalent suppliers • Import monitoring and surveillance requirements equivalent suppliers • Import monitoring and surveillance requirements
and other automatic licensing measures and other automatic licensing measures
Main suppliers: Iran, India, China • Additional charges not elsewhere specified Main suppliers: Iran, United States, Syrian • Additional charges not elsewhere specified
• Distribution and location of products after delivery Arab Republic • Distribution and location of products after delivery

UNITED VALUE (Original documents available at www.macmap.org) UNITED VALUE (Original documents available at www.macmap.org)

Relative index: 0.7 Relative index: 1.1

Source : ITC ( 2017 ) : Reconnecting Afghanistan to global markets – An ITC assessment of export potentials and trade obstacles.
* ITC (2017) - Yvan Decreux, Maria Del Mar Cantero and Julia Spies: Reconnecting Afghanistan to global markets – An ITC
assessment of export potentials and trade obstacles.

[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]
 47

MEDIUM-TO-LONG-TERM PHASE

Table 21 : Medium to long-term phase

Afghan dried fruits Annual growth of Annual gross

Target Distribution and nuts exports sector imports, all domestic product
Product Key success factors
market channel to market 2016 suppliers, growth estimates
( US $ thousands ) 2012–2016 ( % ) 2017–2021 ( % )
• Sanitary safety and quality
Almonds, standards
walnuts, • Grading
pine nuts, • Food safety management system Wholesalers,
dried ( Hazard Analysis and Critical large
Germany apricots Control Points ) supermarkets 1 338 5.76 1.41
Almonds,
walnuts, • Sanitary safety and quality
Italy pistachios standards ( aflatoxin ) Wholesalers 88 9.13 0.82
Almonds,
almond • Sanitary safety and quality
Spain meal standards ( aflatoxin ) Wholesalers - 9.39 1.55
• Sanitary safety and quality
standards ( aflatoxin )
France Dried figs • Attractive product presentation Wholesalers - 5.66 2.06
Wholesalers,
• Sanitary safety and quality distributors
standards ( low pesticides levels ) ( selling to
United Dried • Certifications on good agricultural retailers,
States apricots practices supermarkets ) 1 399 8.47 2.08

Germany
Products : almonds, walnuts, dried apricots

Consumption of almonds in Germany has been increasing
consistently, at an average annual rate of 11 % between 2012
and 2016. This growth in demand can be attributed, in part,
to an increased awareness of the health benefits of dried
fruits and nuts among consumers. Dried fruits and nuts are
commonly consumed whole as a snack or as a raw ingredi-
ent in other food products, e.g. chocolate, cereals and baked
goods. Germany is an especially hot market for walnut trad-
ers, as it is the single largest importer of walnuts in the world.
German demand for walnuts is consistent throughout the
year but spikes considerably during the winter holiday sea-
son. German expectations for quality are uncompromising,
with most walnuts entering Germany undergoing advanced
machine shelling and sorting. Germany is also a leading im-
porting market for pine nuts. This market is currently supplied
with pine nuts imported from China and Pakistan.
Dried fruits are also popular in Germany, with its popu-
lation consuming roughly 0.75 kg per capita per annum.
This sums up to approximately 40,000 tons worth over EUR
210 million per year. Dried apricots account for approxi-
mately 20 % of all dried fruit consumption, most of which are
currently supplied by China ( 41.3 % of total import share ).
Consumption is driven by a growing demand for natural
food without flavourings, while new packaging formats
and recipes featuring dried apricots are also stimulating
demand.
Two main challenges currently limit Afghan dried fruits
and nuts exports in Germany : stringent quality stand-
ards and well-established networks for sourcing ( in which
Afghanistan does not feature prominently ). The EU heavily
regulates food imports, with requirements related to tracea-
bility, food contact materials, contamination ( special empha-
sis on ochratoxins and aflatoxins ), food hygiene, labelling
and packaging ( e.g. almonds must be presented in bags
or solid containers of uniform weight for direct consumption
and packaged in bulk ). Moreover, grading exists for prod-
ucts such as walnuts, i.e. Extra Class, Class 1 and Class 2.
Additionally, German buyers often insist that their suppliers
adhere to even higher standards than those stipulated by
law, such as the International Food Standard. Over the long
term, the increased processing capacity of Afghan dried
fruit and nut enterprises will strengthen Afghanistan’s ability
to establish a place for itself in the German supply chain.
Development cooperation between German government
and non-government entities and the Afghan dried fruits and
nuts sector will play a key role in facilitating market entry.

[ IN A NUTSHELL : POSITIONING THE AFGHAN DRIED FRUITS AND NUTS SECTOR IN THE GLOBAL MARKET ]
48

Box 7 : Export potential to Germany of selected products

While Afghanistan has already accessed the German market, its

share of imports ( especially when it comes to raisins ) remains
far lower than calculated potential.*

Figure 20 : Export potential to Germany – dried grapes

United Arab Emirates: HS 080620 – Dried grapes

UNTAPPED EXPORT POTENTIAL MARKET ENTRY REQUIREMENTS

• Geographical restrictions of eligibility

• Systems Approach
• Special Authorization requirement for SPS reasons
• Registration requirements for importers
USD 1,900 tsd • Tolerance limits for residues of or contamination by
certain (non-microbiological) substances
• Restricted use of certain substances in foods and feeds
DEMAND 2020 and their contact materials
• Microbiological criteria of the final product
10% • Hygienic practices during production
• Food and feed processing
• Certification requirement
USD 183.6 mn
• Inspection requirement
2011-2015 • Traceability requirements
• Origin of materials and parts
APPLIED TARIFF • Processing history
• Distribution and location of products after delivery
Afghanistan: 0% • Authorization requirement for YBY reasons
Ø other suppliers: 1% • Labelling requirements
• Marking requirements
Tariff advantage: 1pp • Product quality or performance requirement
• Inspection requirement
COMPETITION
(More information available at http://exporthelp.europa.
eu/thdapp/index.htm)
Concentrated
equivalent suppliers

Main suppliers:Turkey, United States,

South Africa
UNITED VALUE

Relative index: 0.9

Source : ITC ( 2017 ) : Reconnecting Afghanistan Photo: (cc0) pixabay, green raisins
to global markets – An ITC assessment of
export potentials and trade obstacles.

Italy negatively impact Afghan dried fruit and nut imports. As is

the case with Germany, support from Italian government
Products : almonds, walnuts, pistachios and non-government entities will be a crucial factor deter-
mining success ( or failure ) for Afghan dried fruit and nut
Italy is a major player in the global dried fruits and nuts mar- enterprises seeking to supply the Italian market.
ket. Italy is the world’s largest consumer of walnuts ( in-shell ),
the second-largest market for pistachios ( shelled ) and the France
fourth-largest consumer of almonds ( shelled ). Between
2012 and 2016, consumption of almonds, walnuts and Product : dried figs
pistachios rose, with annual growth rates of 16 %, 5 % and
14 %, for each respective product. Although Italy is also a France is another key target market for global suppliers of
producer of dried fruits and nuts, Italian production is insuf- dried fruits and nuts. The reasons behind increased French
ficient to meet domestic demand. Consequently, most do- demand include the rapid population shift to urban areas, and
mestic demand is satisfied through imports, with the United heightened interest in international foods and the health ben-
States the single largest supplier. Pistachios, almonds and efits associated with minimally processed ‘natural’ food prod-
walnuts are popular snacks, with additional demand coming ucts. In the future, French consumers will likely continue to
from the food processing industry for such products as ice prefer attractively packaged and branded dried fruits and nuts
cream and baked goods. The EU food import regulations sold through large hypermarkets and supermarkets, although
described in the preceding section also apply to Italy, and other distribution channels exist to access smaller retailers.

[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]

By emphasizing the Afghan origins of products in branding
and packaging, Afghan traders could find a niche by sup-
plying smaller-sized retailers that specialize in foreign foods.
Another profitable niche market in France is for organic foods,
although significant work by all stakeholders in the Afghan
dried fruits and nuts sector must be undertaken to qualify for
this label. Like their neighbours in the EU, the French are very
attentive to matters of food safety ; all food imports to France
must satisfy uncompromising standards and regulations.
Spain
Product : almonds
Spain is the world’s largest importer of shelled almonds,
representing 14.4 % of all global imports. Between 2012 and
2016, Spanish almond imports grew at an annual rate of
22 %, indicating that demand is increasing at an accelerated
pace. The United States is the leading supplier of shelled
almonds to Spain. Spain is also a large re-exporter, par-
ticularly to European countries. Spain is a long-established
almond producer and re-exporter, which helps explain its
dominant position as the second-largest world exporter of
shelled almonds.
Almonds have a hallowed place in the Spanish kitchen,
with heavy use as a raw ingredient in the confectionary and
baked goods industries. Turrón, a beloved Spanish confec-
tion, is produced in many varieties, all of which require al-
monds as a key ingredient. Imports to Spain fall under the
EU food safety regime, which has thus far limited entry for
Afghan traders. The challenge for Afghan traders in Spain
will not end once EU food safety compliance is achieved.
Afghan almonds will have to compete with their American
competitors on both price and quality. This will not be easy,
considering America’s enormous economies of scale ( and
resulting low production costs ) achieved through industrial-
scale almond cultivation and processing.
[ IN A NUTSHELL : POSITIONING THE AFGHAN DRIED FRUITS AND NUTS SECTOR IN THE GLOBAL MARKET ]
49
Photo: Dried Fruits & Nuts, FOX16527.jpg
United States
Product : dried apricots
The United States is a large, lucrative market for the dried
fruits and nuts sector. America is the single largest importer
of dried apricots, with 14.2 % of all global imports in 2016.
At present, Turkey has a near monopoly of dried apricot im-
ports to the United States, with a 96 % share. As is the case
with European markets, high quality and food safety stand-
ards are a prerequisite for market entry. Besides standards
and regulations enforced by the United States Government,
certain buyers require voluntary certifications on good ag-
ricultural practices in order to reduce the risk of microbial
contamination. The United States Department of Agriculture
provides information regarding the grades and standards
( voluntary ) applicable to dried apricots. Dried apricots are
commercially classified into grades in which size and qual-
ity are both considered, from US Grade A ( or US Fancy ) to
US Grade D ( or Substandard ) in addition to U.S. Grade A
( Slabs ) to Grade D ( Slabs ).
While the American market may be difficult to access
in the short-term due to its strict regulations, long-term
prospects for Afghan exporters look significantly better.
The United States Government granted the Afghan dried
fruits and nuts sector preferential tariff treatment through the
Generalized System of Preferences programme. As a gen-
eral theme that runs through most Western markets, Afghan
traders also have the potential to tap into the demand for
products certified as organic. In order to qualify for this
product labelling, though, concerted research must be un-
dertaken by sector stakeholders to ensure that Afghan prod-
ucts meet the requirements of the United States Department
of Agriculture.
50

Box 8 : Export potential to the United States of selected products

Afghan traders eyeing the United States market should explore op-
portunities to sell dried figs to American buyers. Imports of dried
figs from Afghanistan are subject to a very low tariff of 0.48 %,
while imports from Afghanistan’s competitors ( Greece and Turkey )
pay 2.13 % of the sale amount in tariffs.*

Figure 21 : Export potential to the United States – dried figs

United States: HS 08420 – Fresh or dried figs

UNTAPPED EXPORT POTENTIAL DEMAND 2020

17%

USD 22.8 mn
2011-2015

USD 1,969 tsd

APPLIED TARIFF COMPETITION

Afghanistan: 0% Concentrated
Ø other suppliers: 2% equivalent suppliers

Tariff advantage: 2pp

Main suppliers: Turkey, Greece, Mexico
UNIT VALUE MARKET ENTRY REQUIREMENTS
Relative Index: 1.4 Various measures apply. For more information, please
review: http://www.macmap.org/CountryAnalysis/
NTM /LinksResults.aspx?country=SCC842

Source : ITC ( 2017 ) : Reconnecting Afghanistan to global markets – An ITC assessment of export potentials and trade obstacles.

Box 9 : NES focus

Afghanistan has significant opportunities for diversification but
current challenges in the supply side ( e.g. productive capacity ),
institutional side ( e.g. quality control, linking with buyers ) and
market-entry side ( e.g. movement of goods across borders ) all
combine to prevent the Afghan dried fruits and nuts sector from
reaching its full export potential.
The NES will enhance the ability of Afghan exporters to tap into
these opportunities by :
• Stimulating the adoption of enhanced processing and packag-
ing methods
• Promoting investment to improve the processing capacity
of the sector
• Strengthening the Afghan standardization, quality, accredita-
tion and metrology infrastructure
• Building a demand-driven skills pipeline based on market
requirements
• Improving Customs relations and coordination with neigh-
bouring countries.

[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]

ACHIEVING THE GOALS : VISION
AND STRATEGIC OBJECTIVES
VISION
The Afghan dried fruits and nuts sector is united by the fol-
lowing vision :
“
 Afghan dried fruits and nuts :
a taste of Afghanistan shared
”
around the world  material is collected from smallholders, efforts to support
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 VOLUMES OF PRODUCTION
THROUGH BETTER SECTOR
COORDINATION, INTENSIFICATION
OF MARKET-DRIVEN PRODUCTION
AND REDUCED SPOILAGE.
This strategic objective has the overall goal of increasing
consistency and volume of production to improve export
performance and competitiveness. On the inputs side, im-
proving the availability of quality planting materials will be
crucial for the industry. Imported seeds are currently vari-
able in quality, which leads to low productivity in orchards.
In response to this deficiency, activities will focus on the
development of specialized fruit tree nurseries that will boost
production of true-to-type seedlings. Using these seedlings
to expand existing fruit and nut orchards will help boost pro-
duction and increase consistency of yields.
Another component of this objective is to promote spe-
cialization by encouraging farmers to focus on specific va-
rieties that sell at premium prices in international markets.
Accomplishing this requires two steps ; first, exhaustive re-
search cataloguing Afghan varieties of dried fruits and nuts
[ ACHIEVING THE GOALS : VISION AND STRATEGIC OBJECTIVES ]
51
and their market potential, followed by information sessions
( possibly delivered by way of farmer field schools and dem-
onstration plots ) on high-value crops and what steps to take
to cultivate them successfully.
A key element of this strategic objective will be to en-
courage aggregation of production. Given that most raw
and enable the formation of sector farmers’ associations
are crucial. Farmers’ associations will facilitate the distribu-
tion of critical inputs to improve processing practices, such
as dipping solutions to optimize drying times. Coordination
between farmers and traders will be improved by the de-
ployment of a pilot project to introduce simple technology
to connect both ends. Peer-learning platforms will also in-
crease knowledge-sharing on marketing opportunities and
best farming practices among producers.
At present, agricultural extension services provided by
MAIL are insufficient to provide for the needs of the sec-
tor. Solutions for the remote delivery of extension services
will be investigated and piloted. In order to reduce spoilage
during production, opportunities to construct common stor-
age facilities will be explored while establishing pest and
disease control management practices in existing facilities.
Communications media such as radio, television and post-
ers in local agricultural communities will be instrumental in
disseminating relevant sector information, including pricing
information on dried fruits and nuts in key markets.
Convincing sector enterprises to ramp up production is
one element necessary to achieve success in this objective.
A related element is making sure farmers and sector enter-
prises have the capital to expand operations. Actors along
the sector value chain have different capital requirements at
different times of the year. During the harvest period, pro-
cessing companies require significant amounts of capital to
purchase bulk quantities of fruits and nuts from smallhold-
ers and begin performing value addition. In order to give
the processing companies the means to aggregate yields
and achieve economies of scale during the drying / roasting,
sorting and grading stages, commercial banks should be
encouraged ( or actively assisted through credit guarantees )
to develop financing products that are tailored to the needs
of the sector.
 52

Strategic Objective 1: Increasing volumes of production through better sector coordination, intensification of market-driven production and reduced spoilage

Production Assembly Processing Distribution Domestic market

Dominating Direct Sales: demand exceeds supply, hence farmers are able to sell their produce locally
Standard for Small Famers Local Consumers
planting • Grapes
material • Apricots
Input Supply • Figs
Market information Rural Traders
services for farmers connected to • Oranges / Citrus
Fresh fruits (varying quality) local traders • Peaches
Improved • Guavas
Local
access to • Persimmons &
Retailers
quality Dry / mud floor Intensification of Average sales Loquats
planting market-led production Improve 7 tons per • Plums
Local Traders in
material communication to year • Cherries
Domestic Value Addition Jalalabad and Inter-
farmers and traders • Mulberries
Sun Peshawar mediary
Margin: 5% in • Melons
Aggregation of small Shelling Facilities most cases • Pistachios
Figure 22 : Future value chain – strategic objective 1

Reduced Drying house farms Small • Almonds

spoilage of Dealers • Walnuts
produced raw Roasting Facilities
material Storage facilities Regional
Establishment of Collectors (non-
mother nurseries as refrigerated
International market
Simple Cleaning Facilities
demonstration farms transport in small
Drying mats or bamboo trellises
trucks and 10 ton
Increased pest trucks) Customs office
Further Drying Facilities
control (minor Customs fee paid
Labour force Formation of sector but only a small minority of Top export destinations
Limited literacy (abundant) / farmers’ association
skills (scarce) Washing Facilities goods are run through) • India
• Russian Federation
• Kazakhstan
Processing machines Peer-learning Packaging Facilities • Saudi Arabia
Middlemen Export Traders • Canada
platforms for small • Consolidate
farmers • USA
produce and • Germany
Long ropes Grading Facilities wholesale to • Belarus
Farmer helplines using international • Pakistan
mobile phones market • China
Cutting tools Bagging Facilities
• 30 small export • UAE
Peer-learning traders
Rural Traders • Italy
connected to • Trade around 5- 6 • Spain
Bamboo cord for flattering
Pakistani traders tons per year
Coaching on financial
• 5% profit
literacy
Solution of potassium carbonate for raisins
(scarce) Pakistani Traders
Direct shipping to Value Addition behind the border
Pakistan by • Repacking
skipping inefficient • Storing
Afghan traders • Re-exporting to higher-value markets
• Branding / marketing as Pakistani products

Improved R&D

[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]
Extension support R&D

Improved access to finance


STRATEGIC OBJECTIVE 2 :
ENHANCE FOOD SAFETY AND QUALITY
ASSURANCE ACROSS THE VALUE
CHAIN BY FOSTERING THE ADOPTION
OF ENHANCED PROCESSING
METHODS.
This strategic objective is focused on improving the sec-
tor’s ability to enter international markets by improving food
safety compliance and quality assurance across the value
chain, with an emphasis on upgrading processing methods.
At present, processing is a low-tech, predominately man-
ual affair. This must change in order for the sector to improve
food safety compliance and qualify for entry into coveted
developed markets. Reforms must take place along the
value chain, beginning with smallholders. A master training
programme entailing farmer field schools will be instrumen-
tal in demonstrating improved techniques through practical
training. Targeted training for women, who play a leading
role in postharvest processing, is a critical component at
this stage. In order to accommodate cultural norms, train-
ing and certification of female agricultural extension service
providers can help build the capacity of women engaged in
drying and roasting activities.
[ ACHIEVING THE GOALS : VISION AND STRATEGIC OBJECTIVES ]
53
Photo: Dried Fruits & Nuts, FOX16524.jpg
Another shortcoming in the early stages of the value chain is
poor sorting and grading practices. This can be overcome
in the short run through training that targets community pro-
cessing facilities and traders. Efforts must also be made to
increase awareness about SPS measures that reduce con-
tamination of products. This will move Afghan dried fruits
and nuts closer to achieving compliance with international
quality standards.
Another key activity will be promoting investment op-
portunities in the sector through the deployment of incen-
tive packages to attract investors. Sector associations must
also be supported to organize missions and exhibitions that
promote investment opportunities in the sector. Thirty raisin
processing centres exist in Afghanistan, although not all of
them are fully operational. Limited resources can be opti-
mized by upgrading technology in non-operational centres
rather than constructing new processing centres. To develop
economies of scale and better organize stakeholders, the
Strategy addresses the need to establish an agro-industrial
park with a specific section for dried fruits. It is proposed that
the first agro-industrial park be in Kabul and be linked with the
Customs office and air cargo operators for smooth operation.
Finally, improved quality certification can be achieved
with the establishment of a quality certification programme
for the sector. In parallel, the capacity of relevant agencies
within the Afghan Government to enforce quality standards
must be drastically enhanced.
 54

Strategic objectives 2: Enhance food safety and quality assurance by fostering the adoption of enhanced processing methods

Production Assembly Processing Distribution Domestic market

Dominating Direct Sales: demand exceeds supply, hence farmers are able to sell their produce locally

Input Supply Best practices (food Local Consumers

safety compliance) • Grapes
Small Famers • Apricots
Fresh fruits (varying quality) Upgrade technology • Figs
• Oranges / Citrus
Farmers’ field school Rural Traders
connected to • Peaches
Dry / mud floor Increase quality • Guavas
local traders
Local Traders • Persimmons &
Local
in Jalalabad Retailers Loquats
Inter-
Sun Domestic Value Addition and Peshawar Average • Plums
mediary
Margin: 5% in sales 7 tons • Cherries
Shelling Facilities most cases per year • Mulberries
Drying house Small • Melons
Dealers • Pistachios
Roasting Facilities • Almonds
Figure 23 : Future value chain – strategic objective 2

Storage facilities Regional

• Walnuts
Collectors (non-
refrigerated Simple Cleaning Facilities
transport in small
Drying mats or bamboo trellises
trucks and 10 ton
trucks) Further Drying Facilities International market
Implementation of
quality certification
Labour force scheme Customs office
Upgrade Washing Facilities
farmers’ (minor Customs fee paid
skills but only a small minority of
goods are run through) Top export destinations
Processing machines Packaging Facilities
Middlemen • India
• Russian Federation
• Kazakhstan
Long ropes Grading Facilities Export Traders
• Saudi Arabia
• Consolidate
Sorting Aid • Canada
produce and
• United States
Cutting tools Bagging Facilities wholesale to
• Germany
international
Rural Traders • Belarus
market
connected to • Pakistan
Bamboo cord for flattering • 30 small export
Pakistani traders • China
traders
Cold Chain • UAE
• Trade around 5-6
d managment • Italy
Solution of potassium carbonate for raisins tons per year
; programme • Spain
(scarce) • 5% profit
providers Product testing facility

Training in market Pakistani

standards, technical Traders
Value Addition behind the border
regulations, SPS Direct shipping to
• Repacking
measures Pakistan by
• Storing
skipping
inefficient Afghan • Re-exporting to higher-value markets
traders • Branding / marketing as Pakistani
Monitoring products

[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]
Facilitate promotion of investment opportunities in sector

STRATEGIC OBJECTIVE 3 :
RECLAIM AFGHANISTAN’S PROMINENT
GLOBAL REPUTATION THROUGH
IMPROVED PACKAGING AND SOUND
MARKET INSERTION STRATEGIES.
In order to improve the position of Afghan dried fruits and
nuts in the global market, it is critical to establish modern
packaging operations and develop systematic market en-
try strategies. Currently, packaging and branding of Afghan
dried fruits and nuts is limited to a handful of enterprises,
with most traders consequently preferring to sell products
in bulk at lower prices to regional buyers.
As part of the short-term strategy for the sector, add-
ing value in existing markets through packaging will be pro-
moted. This will entail training enterprises on international
packaging requirements and practices. In order to increase
economies of scale for currently operating packaging
[ ACHIEVING THE GOALS : VISION AND STRATEGIC OBJECTIVES ]
55
Photo: Dried Fruits & Nuts, FOX20465.jpg
facilities, a directory of available packaging services and
suppliers will be developed and disseminated. A pilot initia-
tive to promote the adoption of portable packaging units
will facilitate access to packaging services for producers in
remote areas.
Enhancing the provision of market intelligence to sector
enterprises will further enable enterprises to seize oppor-
tunities in international markets. Relevant information such
as target market demand, consumer preferences, sector
trends, niche markets and seasonal spikes in demand will
further assist Afghan traders in determining where and when
to sell their products to obtain optimal prices. In-market sup-
port will also be needed to assist Afghan firms to participate
in relevant international fairs and exhibitions.
Finally, targeted marketing efforts will be undertaken
with the objective of improving the positioning of the Afghan
brand. This will require a strategic marketing campaign that
highlights the key selling points of Afghan dried fruits and
nuts to potential international buyers.
 56

Strategic objective 3: Reclaim Afghanistan’s prominent global reputation through improved packaging and sound market insertion strategies

Production Assembly Processing Distribution Domestic market

Dominating Direct Sales: demand exceeds supply, hence farmers are able to sell their produce locally
Local Consumers
• Grapes
Input Supply Small Famers • Apricots
• Figs
Fresh fruits (varying quality) Rural Traders • Oranges / Citrus
connected to • Peaches
local traders • Guavas
Dry / mud floor • Persimmons &
Local Traders in Local Retailers Loquats
Jalalabad and Average sales 7 • Plums
Domestic Value Addition Inter-
Sun Peshawar tons per year • Cherries
mediary
Margin: 5% in • Mulberries
Shelling Facilities most cases • Melons
Drying house Small
Figure 24 : Future value chain – strategic objective 3

• Pistachios
Dealers • Almonds
Roasting Facilities • Walnuts
Storage facilities Regional
Collectors (non-
refrigerated Simple Cleaning Facilities
transport in small Optimize time of International market
Drying mats or bamboo trellises Access to packaging inputs market entry
trucks and 10 ton
trucks) Further Drying Facilities
Labour force Top export destinations
Improved packaging • India
Customs office
Washing Facilities practices: packaging in • Russian Federation
(minor Customs fee paid
Processing machines portable units • Kazakhstan
but only a small minority of
goods are run through) • Saudi Arabia
Middlemen Packaging Facilities • Canada
Long ropes Yellow book for suppliers of • United States
packaging material • Germany
Grading Facilities Export Traders • Belarus
Cutting tools • Consolidate • Pakistan
produce and • China
Bagging Facilities wholesale to • UAE
Bamboo cord for flattering international • Italy
Rural Traders market • Spain
connected to • 30 small export
Branding
Solution of potassium carbonate for raisins Pakistani traders traders
(scarce) • Trade around 5-6
Online and printed tons per year
catalogues • 5% profit Value Addition behind the border
• Repacking
Pakistani
Traders • Storing
Awareness creation through • Re-exporting to higher value
- markets
events and promotion Direct shipping to
Pakistan by • Branding / marketing as Pakistani products
skipping
inefficient Afghan
traders Enhance in-market support

Improve market intelligence services

[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]

MOVING TO ACTION
KEY REQUIREMENTS FOR EFFECTIVE IMPLEMENTATION
The development of the future value chain for the dried fruits
and nuts 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 depend 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 devel-
opment 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 depend on
the ability of stakeholders to plan and coordinate actions
in a tactical manner. Apparently unrelated activities must
be synchronized across the public sector, private sector,
non-governmental organizations and local communities
in order to create sustainable results.
To ensure the success of the Strategy, it is neces-
sary to foster an adequate environment and create an
appropriate framework for implementation. The follow-
ing section presents some of the key success conditions
considered necessary for effective implementation.
ESTABLISH AND OPERATIONALIZE A
PUBLIC AND PRIVATE COORDINATING
BODY AND EXECUTIVE SECRETARIAT
Dried fruits and nuts 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 key public and private sector entities
be formed or supported ( if such a committee already ex-
ists ). This will be a platform with balanced representation of
all major sector stakeholders to share information in open
communication.
It is proposed that the steering committee be responsi-
ble for the following responsibilities related to Strategy
implementation :
[ MOVING TO ACTION ]
57
ƒƒ Coordinate and monitor the implementation of the
Strategy by the Government, private sector, institutions
or international organizations to ensure implementation
is on track ;
ƒƒ Identify and recommend allocation of resources neces-
sary for the implementation of the Strategy ;
ƒƒ Assess the effectiveness and the impact of the Strategy ;
ƒƒ Ensure consistency with the Government’s existing
policies, plans and strategies, and align institutions’
and agencies’ internal plans and interventions with the
Strategy PoA ;
ƒƒ 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 ;
ƒƒ Propose key policy changes to be undertaken based on
Strategy priorities and promote these policy changes
among national decision makers ;
ƒƒ Guide the sector secretariat for the monitoring, coordi-
nation, resource mobilization, and policy advocacy and
communication functions to enable effective implementa-
tion of the Strategy ;
ƒƒ Provide the sector secretariat with the mandate and the
necessary resources to fulfil its functions effectively.
Composition of the dried fruits and nuts sector
steering committee
It 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 public and
private sectors.
Secretariat
A secretariat will assist the steering committee by acting as
an operational body responsible for the daily coordination,
monitoring and mobilization of resources for implementing
the PoA. It is proposed that it takes on this role with techni-
cal support from key ministries and technical agencies. The
secretariat will be composed of 1–2 technical operators.
58

The core responsibilities of the sector secretariat should be to : Both the steering committee and its secretariat will work
ƒƒ Support functioning of the steering committee hand-in-hand with existing entities established to stream-
ƒƒ Collect and manage data to monitor progress and the line government operations and enhance donor operations.
impact of Strategy implementation These include the NES secretariat and others. The secre-
ƒƒ Liaise with and coordinate development partners for tariat may be accommodated as part of an existing entity
Strategy implementation with an extended mandate and resources allocated to it.
ƒƒ Elaborate project proposals and build partnerships to
mobilize resources to implement the Strategy
ƒƒ Follow up on policy advocacy recommendations from the
steering committee
ƒƒ Ensure effective communication and networking for suc-
cessful Strategy implementation.

Photo: Dried Fruits & Nuts, FOX20501.jpg

[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]
PLAN OF ACTION

Strategic objective 1 : Increase volumes of production through better sector coordination, intensification of market-driven production and reduced spoilage.
Operational objectives
1.1. Organize a private–
public platform to coordi-
nate sector development
efforts.
1.2. Strengthen sector co-
ordination to enable pro-
ductivity enhancements.
1.3. Foster market-driven
supply and cultivation of
quality seeds and planting
material.
[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]
* Targets are indicative only and will be the subject of further refinement at the beginning of the implementation management stage. Similarly, the lead and supporting implementers column remains indicative as the implementation will require collective efforts, for which additional institutions may be added.
60
Activities Priority Implementation period Target* Lead and supporting
1=high implementers
2=med
2017
2018
2019
2020
2021
2022
3=low
1.1.1. Establish a specialized sector platform composed of dried fruits and nuts sector stakeholders in order to increase 1 • Sector high-level plat- MoCI, ARFVEPA,
private–public dialogue and collaboration in the sector, and for its development. form established Afghanistan Dry Fruit
Exporters Association, ACCI
1.1.2. Sector platform to hold meetings on a regular basis to encourage public–private partnerships, explore areas of 1 • Quarterly meetings MoCI, ARFVEPA,
common interest, exchange views, share information and network. conducted Afghanistan Dry Fruit
• Sector platform to monitor this Sector Strategy development process by setting up a joint monitoring unit under the Exporters Association
platform, establishing monitoring systems and reporting back to the steering committee. Joint monitoring unit to be
composed of both public and private sector representatives.
• Sector platform to mobilize resources and advocacy efforts for the implementation of this Sector Strategy.
1.2.1. Support the formation and strengthening of existing sector farmers’ associations ( e.g. ARFVEPA, Afghanistan Dry 2 • Two workshops con- MAIL, Ministry of Justice,
Fruit Exporters Association ). ducted annually in four Ministry of Rural Rehabilitation
• Through workshops, capacitate on registration procedures to form associations / cooperatives and promote the expan- main production prov- and Development ( MoRRD ),
inces, including Mazar- Fresh Fruit and Vegetable
sion of membership of existing dried fruit and nut associations in select production hubs.
e-Sharif and Herat Exporters Union, ARFVEPA,
• Promote among individual farmers the formation and strengthening of associations to cooperate to fulfil contracts, co-
Afghanistan Dry Fruit Exporters
ordinate harvests and facilitate marketing and distribution of critical inputs for processing. Association, ACCI
1.2.2. Strengthen existing associations/cooperatives through capacity-building workshops for their leaders. Include 2 • Five workshops held MAIL, ARFVEPA, Afghanistan
training on : annually Dry Fruit Exporters Association
• Leadership and business management skills and how to provide member-oriented services ( e.g. marketing ).
• Financial skills ( e.g. bookkeeping, loan application ).
• Collective sourcing of non-competitive inputs.
• Marketing and contract negotiation skills.
• Coach leaders to mediate with external resource institutions, such as the Government and financial institutions.
• Train business associations and sector enterprises in taxation regulations and administrative procedures. Create
awareness through other communication channels, e.g. brochures, leaflets, on tax regulations and procedures and the
benefits of formalizing businesses.
1.2.3. Organize business-to-business ( B2B ) events in main producing hubs to connect leaders of producers’ associa- 3 • Two B2B events held an- MAIL, MoCI, ACCI
tions, traders and processing companies and facilitate the establishment of business relationships among possible new nually, in five locations
trading partners.
Upgrade / establish new agricultural fairs to facilitate business relationships.
1.3.1. Undertake a quality planting materials propagation programme for nut production through pilot initiatives in the 2 • 500 tree nurseries es- MAIL, ANNGO
main domestic production hubs in Kabul, Herat and Kandahar. Activities related to fruit production are covered in the tablished / restored
Fresh Fruits and Vegetables Strategy.
• Set up a technical framework at the national and provincial level to design and implement the programme.
• Use established / establish new mother tree nurseries ( e.g. build on the success of Afghanistan National Nursery
Growers’ Organization ( ANNGO ) nurseries ) and restore old tree nurseries in key selected regions to facilitate access
to quality seeds and planting materials for farmers. Promotion of specific varieties based on :
–– Local agroclimatic conditions
–– Predictable market demand and market performance ( e.g. true-to-type varieties of almonds focusing on quality
soft shell-almonds such as Satarbai and premium kernels of the Shokorbai hard-shell almond variety ).
• Work with ANNGO to support the expansion of programmes for the development of disease-free certification schemes.
• Mother tree nurseries to function also as demonstration farms for best practices on seed selection, production and
quality control, targeting farmers and extension agents through the provision of participatory trainings. Provide techni-
cal support to farmers on variety selection ( high quality and disease-free varieties ) and intensive cultivation of nuts.
 Strategic objective 1 : Increase volumes of production through better sector coordination, intensification of market-driven production and reduced spoilage.
Operational objectives
1.3. Foster market-driven
supply and cultivation of
quality seeds and planting
material.
1.4. Enable the expansion
[ PLAN OF ACTION ]
of production areas.
* Specific actions to improve irrigation management systems have been outlined by the Executive Committee on Private Sector Development, Working Group 2: Agriculture, Trade and SMEs (Private Sector Reform Priority #1). The Dried Fruits and Nuts Strategy is aligned with and supportive of these efforts.
Activities Priority Implementation period Target* Lead and supporting
1=high implementers
2=med
2017
2018
2019
2020
2021
2022
3=low
1.3.2. Conduct research to identify best-suited pistachio varieties for production. 3 • Research conducted Afghanistan Research and
• Launch a variety testing initiative in select locations. • At least 100 pistachio Evaluation Unit ( AREU ),
orchards established MoRRD, MAIL, ACCI
• Involve selected farmers in the research by providing them with different types of pistachio varieties to cultivate.
in at least four different
• After the end of the season, collect and analyse information regarding the trial of varieties.
• Organize a public forum to discuss with extension workers, researchers and farmers in key provinces the results of the provinces
variety testing initiative.
• For the identified varieties, formulate a five-year seed development rolling plan ( by category, variety and province ).
• Pilot the establishment of domestic pistachio orchards.
1.3.3. Promote the cultivation of quality crops / varieties. Organize variety exhibitions through local fairs to promote the 2 • Two fairs conducted MAIL
benefits of best-suited crops and varieties ( e.g. economic viability, resistance to pests, water uptake and market oppor- on a quarterly basis
tunities ). Encourage interaction and discussion with farmers regarding the cultivation of such crops / varieties. in four provinces, in-
cluding Kandahar and
Mazar-e-Sharif
1.3.4. Improve dissemination of market-related information to farmers by : 3 • Two short courses con- MAIL, MoCI, ACCI, Ministry
• Strengthening marketing skills and market information of extension staff through short courses. Topics to include : ducted to 50 extension of Communications and
staff annually Information Technology,
–– Market opportunities for local varieties, such as niche markets and premiums.
• Two communication Ministry of Information and
–– Pricing and contract negotiation skills.
channels are set up Culture
• Adopting solutions for remote delivery of extension services :
–– Identify appropriate channels such as radio, television and posters to deliver key technical agricultural information to provide systematic
to farmers, in association with relevant radio and television channels. Relevant information to be provided would market information and
include market trends per subproduct and pricing information of fruits and nuts in / out of their provinces. disseminated in at least
four provinces
1.4.1. Promote farm-level investment through land consolidation to enable farmers to reach positive savings and rein- 2 • Four workshops twice a Ministry of Finance ( MoF ),
vest their earnings. year in four main pro- Da Afghanistan Bank, ACCI,
• Coordinate the provision of workshops by banks for producers on key financial literacy topics such as savings, making duction provinces, in- MoCI, MAIL, Afghanistan Banks
cluding Kandahar and Association
loan applications and managing loans, as well as existing financial options.
• Deploy affordable credit for inputs to producers’ associations through commercial banks, in compliance with Islamic Mazar-e-Sharif
banking.
1.4.2. Develop and roll out a land consolidation plan in key locations. Plan a land readjustment to form larger and more 2 • Land consolidation Afghanistan Independent
rational land holdings, taking into account agrarian special planning to consider the necessary infrastructure required for plan rolled out in four Land Authority, Afghanistan
the use of consolidated land ( e.g. irrigation systems,* soil conservation, etc. ) provinces, includ- Banks Association, Afghanistan
• Encourage investment by ensuring ownership ( secure right to land ), transferability and transformability of capital ing Kandahar and Institute of Banking and
Mazar-e-Sharif Finance, ACCI
through good governance and rule of law.
61
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Strategic objective 1 : Increase volumes of production through better sector coordination, intensification of market-driven production and reduced spoilage.
Operational objectives Activities Priority Implementation period Target* Lead and supporting
1=high implementers
2=med

2017
2018
2019
2020
2021
2022
3=low
1.5. Reduce damage 1.5.1. Support and strengthen initiatives for construction of small / medium-sized warehousing at border control points 2 • At least 40 warehouses MAIL, MoRRD, ACCI, MoF
/ spoilage of products and in central wholesale locations, as well as near the airport. Warehouses can facilitate coordination between farmers are established
through expanding access and processors, and alleviate harvest pressure associated with poor cold chain infrastructure. Warehouses can also serve
to warehousing facilities. as hubs where farmers can aggregate their produce for sale to traders and improve their bargaining position ( e.g. Khost
province where there is an important need of cold storage facilities for pine nuts production ).
• Establish accessible public warehouses ( i.e. access to storage is available to anyone after paying warehouse charges )
through public investment, based on feasibility studies of warehousing needs for the sector. Additional services may
include processing, packaging and labelling of products.
• Create standard warehousing requirements ( e.g. temperatures, dimensions ) in line with international standards and
norms, as guidelines for each subproduct. Specific requirements should be provided to avoid contamination of dried
grapes with ochratoxin A during storage.
Following are examples of specifications for almond storage :
• Ideal cold storage conditions ( <5°C and <65°C relative humidity ) for whole natural almonds.
• Room temperature between 20°C and 25°C for storing almonds in tightly sealed containers.
• Ensure kernels are not exposed to heavy odours so the flavour is not contaminated.
Roll out a course on storage management targeting farmers’ associations and cooperatives, based on the created ware-
housing requirements.
1.5.2. Support local associations to develop warehouses independently, through the creation of tailored credit schemes 3 • Credit scheme created Da Afghanistan Bank, MoF,
in association with commercial banks. and disseminated MoCI, ACCI
1.5.3. Establish procedures for pest control in storage facilities 3 • Pest control procedure Ministry of Public Health,
• Identify common warehouse pests and establish written procedures for the prevention of common pests and for the established MAIL, MoRRD, ANSA
use of sustainable pest management methods in storage facilities, considering internationally approved pesticides • Two short courses are
and doses ( e.g. maximum residue level for dried grapes allowed by the EU ). conducted annually in
• Communicate established procedures through appropriate channels such as posters. Organize short courses targeting five select locations
farming associations / cooperatives.

[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]
 Strategic objective 2 : Enhance food safety and quality assurance across the value chain by fostering the adoption of enhanced processing methods.
Operational Activities Priority Implementation period Targets Lead and supporting
objectives 1=high implementers
2=med

2017
2018
2019
2020
2021
2022
3=low
2.1. Build firms’ ca- 2.1.1. Increase firms’ capacity to implement food safety management systems in the supply chain through the rollout of short 1 • Three short cours- ANSA, MoCI
pacities to manage courses. es targeting 30 SMEs, MAIL, ACCI
their supply chain in • Develop curriculum and course material on the following topics : annually
line with international
–– Business management
food safety practices.
–– Food safety management
–– Mycotoxin ( aflatoxin / ochratoxin A ) prevention, control and management based on Hazard Analysis and Critical Control
Points.
• Prepare training manuals accordingly.
• Conduct courses to sector small and medium-sized enterprises ( SMEs ) and exporters.
2.1.2. Organize study tours for select firms to understand food safety requirements and best production and processing prac- 3 • One study tour a year MoCI
tices in key locations ( e.g. Turkey ). benefiting at least five MAIL, ACCI
SMEs
2.1.3. Develop a scheme aimed at upgrading the skills of employees in the sector. 3 • Grant is designed and MoCI
• Through a competitive process, create a grant to support short-term skills training for workers in formal enterprises on best benefits at least five MAIL, ACCI
processing practices. SMEs a year
2.2. Stimulate the 2.2.1. Develop a training programme on best production and processing practices, including quality and food safety issues, 1 • Training initiative set up MAIL, Ministry of Women’s
adoption of best prac- with a particular focus on SPS and quality standards compliance, considering mycotoxin contamination is possible across the and rolled out Affairs, Afghanistan Women
tices by enhancing value chain. Chamber of Commerce and
awareness and skills • Develop the curricula and teaching materials for the programme. Use the manual on small-scale fruit and vegetable process- Industry, ACCI
in the sector.
ing. Develop manuals / teaching material in local languages for other small-scale and large-scale agri-processing activities
in Afghanistan, based on international food safety standards.
• Set up an institutional framework to operationalize the training programme, allowing for a multiplier effect through extension
services and farmer field schools.

[ PLAN OF ACTION ]
• Identify key farmers’ organizations and cooperatives to serve as nuclei for select pilot initiatives :
–– Evaluate the reach of farmers’ organizations and their past work in the dried fruits and nuts value chain.
–– Evaluate the implementation capacity of selected organizations and create a profile for each organization.
• Select, sensitize and train programme facilitators.
• Roll out a programme to train women extension service providers to enable women-to-women service delivery at every stage
of value chain, with particular emphasis on the early stages ( e.g. sorting, drying ) where there is a strong female presence.
63
 64

Strategic objective 2 : Enhance food safety and quality assurance across the value chain by fostering the adoption of enhanced processing methods.
Operational Activities Priority Implementation period Targets Lead and supporting
objectives 1=high implementers
2=med

2017
2018
2019
2020
2021
2022
3=low
2.2. Stimulate the 2.2.2. Launch the training programme to capacitate producers’ and processors’ associations / cooperatives in best preharvest, 2 • Training initiative ben- MAIL
adoption of best prac- harvest and postharvest practices. Include best practices in : efits 2,000 producers / Technical and Vocational
tices by enhancing • Preharvest : processors Training Institutes ( Ministry
awareness and skills of Education ),
–– Best practices on production, e.g. recommendations on fertilizers, pruning trees, maintaining orchard soil moisture to
in the sector.
prevent frosting, irrigation ( water management ). ANSA
• Harvesting :
–– Optimal time of harvest.
–– Create awareness of the loss of quality, uniformity and product value ( e.g. ideal harvesting time to maximize sugar con-
tent ) when inadequate harvesting methods are used.
• Postharvest / processing :
–– Sorting and grading of products.
–– Nuts : Training on hand-shelling techniques to avoid damaging kernels and irregular quality of products.
–– Fruits : Training on drying practices to reduce time of drying ( e.g. raisins ) and develop uniformity in processed products.
–– Emphasis should also be placed on reducing contamination in drying practices ( sanitary methods ).
During training, encourage improving the quality of dried fruits and nuts by linking it to marketing, and reward compliance.
2.2.3. To multiply the original training efforts, develop communication materials. Complement practical training with dissemi- 3 • One radio spot devel- MAIL ( Agriculture
nation of information on best farming practices through other channels, including workshops to farmers’ associations, radio oped and streamed daily Research Institute of
spots, posters and leaflets. Develop a video explaining best practices and the use of integrated management systems to ensure in key provinces Afghanistan )
continuous training. • Video developed and
Allow videos to also be available to Customs personnel, particularly at borders which are key for the sector ( e.g. Pakistan ), to streamed on television,
create awareness and capacitate staff on correct handling of products. and in workshops and
trainings
2.3. Improve process- 2.3.1. Support the maintenance / expansion of industrial parks in main producing areas. 2 • Independent study car- MoCI,
ing capacity in the • Undertake an independent study to assess the level of service support, technical capacities and implementation of activities ried out and corrective Afghanistan Independent
sector through invest- measures in place Land Authority, MoF,
in industrial parks supporting sector firms.
ment promotion. • Pilot project designed ACCI, Ministry of Energy
• Based on identified gaps and flaws, design and implement corrective measures and tailored workshops to industrial parks’
management staff ( e.g. bookkeeping ). and implemented. and Water, Ministry of
• Conduct feasibility studies in major locations for the establishment of agro-focused industrial parks, as a public–private Expand pilot to other lo- Transport and Civil Aviation
investment. cations as required
• Develop a pilot project in a select location for an agro-focused industrial park supporting firms in the sector.
2.3.2. Develop a scheme to support private investment to establish new processing centres, and rehabilitate and upgrade exist- 2 • Scheme developed MoCI,
ing ones through partial subsidies, including the establishment of Kishmish Khana for green raisin production in areas with • At least 15 process- MoF, ACCI
potential. ing units established /
upgraded
2.3.3. Identify and support options for establishing processing units with higher technology, such as laser sorting, and retail 2 • Three processing units MoCI, ( Afghanistan
packaging in upcoming export processing zones within airport territory. established Investment Support
Support can also be provided to establish these processing units and showrooms in key target markets where security is higher Agency )
and accessibility is less restricted, such as UAE or India. MoF, High Economic Council

[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]
These activities have the objective of :
• Penetrating and developing new / existing markets and accessing new distribution networks.
• Accessing new technologies and know-how.
• Identifying and assessing the possibility of establishing processing units in target markets through a cost-benefit study.
• Selecting pilot Afghan firms based on export readiness.
• Providing support to select Afghan firms to establish processing units abroad.
 Strategic objective 2 : Enhance food safety and quality assurance across the value chain by fostering the adoption of enhanced processing methods.
Operational Activities Priority Implementation period Targets Lead and supporting
objectives 1=high implementers
2=med

2017
2018
2019
2020
2021
2022
3=low
2.3. Improve process- 2.3.4. Develop a list of investment opportunities for the sector. Include the following : 2 • List of investment op- MoCI, ( Afghanistan
ing capacity in the • Manufacturing : setting up modern processing facilities, e.g. for drying of fruits and shelling / roasting nuts ; or improving / portunities in the sector Investment Support
sector through invest- developed Agency )
restoring existing processing facilities.
ment promotion. MoF, High Economic
• Ancillary industries : packaging, containers and wrappings for dried fruits and nuts ; technological equipment ; conservation
and freezing equipment ( cold chain infrastructure ) ; advanced services, such as laboratories and handling equipment, e.g. for Council, ACCI
weighing ; among others.
• Update the list as the sector evolves.
2.3.5. Create a package to attract investors. In addition to the list of investment opportunities, the package will include : 2 • Package for investors, MoCI, ( Afghanistan
• Incentives and financial support ( for pre-investment and investment phases ), such as political risk guarantees and land fa- including incentives, cre- Investment Support
ated and disseminated Agency )
cilitation ( transfer of ownership rights ).
• At least 10 bank propos- MoF, High Economic Council
Support the development of bank proposals for identified investment opportunities.
als supported
• Develop related communication materials such as online videos, concept notes and leaflets highlighting Afghanistan’s com- • Communication materi-
parative advantages for the production of dried fruits and nuts, estimated value of investments, general and sector-focused als developed
investment packages and opportunities.
2.3.6. Organize investment missions to select countries to communicate and promote the investment package. Facilitate the 3 • Two investment missions MoCI, ( Afghanistan
participation of business associations in investment missions and exhibitions to promote investment opportunities in the sector. a year in target markets Investment Support
• Explain opportunities for investment in the sector to potential investors, and provide sector information and matchmaking such as India, UAE Agency )
with enterprises. MoF, Ministry of Foreign
• Provide financial support for sector firms to visit foreign countries to explore new business partners / markets and learn about Affairs ( MoFA ), ACCI
international practices in investment, while learning about modernization of the sector along the value chain.
2.4. Facilitate ac- 2.4.1. Enhance accessibility and links between input suppliers and farmers. Facilitate increased links between farmers’ coop- 2 • A fair is held annually MAIL, MoCI
cess to and afford- eratives / associations, processors and suppliers of : in four main produc-

[ PLAN OF ACTION ]
ability of equipment • Machinery ( e.g. drying, shelling, roasting, salting ) tion hubs
and critical inputs to
• Tools ( e.g. mats for drying )
improve processing
• Chemicals ( e.g. solution of potassium carbonate ).
techniques.
Speed up introduction of solar-powered equipment to counteract continuous power shortages.
• Identify suitable suppliers and organize fairs and exhibitions to bring together suppliers and interested parties.
• Support companies to send samples of products to test machinery before purchasing.
• Create communication and coordination channels between input suppliers and farmers through farmer field schools to facili-
tate purchases of drying equipment.
2.4.2. Deploy affordable equipment leasing options for farmers organizations / cooperatives and processors through commer- 3 • Technical assistance Afghanistan Banks
cial banks. provided to commercial Association, Afghanistan
• Provide technical assistance to financial service providers to design, implement, track and monitor leasing contracts and banks’ officers through Institute of Banking and
one course a year Finance
products to sector stakeholders.
2.5. Strengthen abil- 2.5.1. Review and update as necessary the established Afghan standards for sector products, such as raisins, almonds and pis- 2 • Standards reviewed and ANSA
ity to test and certify tachios, to be aligned with international buyers’ quality departments ( e.g. Borges in Spain ). disseminated
to international food • Disseminate established standards through the development of a guide for Afghan dried fruit and nut production, and other
safety and quality
relevant media such as newsletters and television / radio spots.
standards and de-
velop a traceability
system.
65
 66

Strategic objective 2 : Enhance food safety and quality assurance across the value chain by fostering the adoption of enhanced processing methods.
Operational Activities Priority Implementation period Targets Lead and supporting
objectives 1=high implementers
2=med

2017
2018
2019
2020
2021
2022
3=low
2.5. Strengthen abil- 2.5.2. Roll out a training programme to sector SMEs and exporters to facilitate the implementation of voluntary quality standards 2 • Training programme is ANSA, MoCI
ity to test and certify and disseminate key information. rolled out, targeting 30
to international food SMEs a year
safety and quality 2.5.3. Strengthen the capacity of ANSA to certify SPS and quality standards. 2 • A training programme Ministry of Public Health,
standards and de-
• Ascertain the competencies at ANSA to test and certify sector food safety and quality standards ( e.g. E. Coli, salmonella, is designed and rolled MAIL, MoF, MoCI
velop a traceability
system. humidity ) through lab inspections to assess infrastructure ( i.e. laboratories ) and technical resources. out, capacitating 20
• Develop and implement capacity-building programmes to bridge technical capacity gaps by training laboratory technicians. technicians
• Develop a state of the art laboratory, sampling and testing facilities in main production hubs. • State of the art labora-
• Expand the access to labs for mycotoxin testing and certification through upgrading existing labs or establishment of new tory is developed and
labs in main producing areas in provinces outside Kabul. measures are integrated,
accordingly
• At least three labs are
capable of mycotoxin
testing
2.5.4. Develop a traceability system for the sector. 3 • At least 5 % of produc- ANSA, MoCI, MAIL
• Undertake a feasibility study to develop a traceability system by surveying throughout the country, constructing a database tion to have a traceability
system and reviewing market requirements. system
• Assess requirements for the adoption of barcode technology and create links with key technical institutions and providers to
obtain technical support for creating and verifying the print quality of barcodes.
• Lobby businesses and government institutions to set up a traceability system by demonstrating current status and then the
expected benefits of the system, and inviting international institutions well-known in this area.

[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]
 Strategic objective 3 : Reclaim Afghanistan’s prominent global reputation through improved packaging and sound market insertion strategies.
Operational objectives Activities Priority Implementation period Targets Lead and supporting
1=high implementers
2=med

2017
2018
2019
2020
2021
2022
3=low
3.1. Improve packag- 3.1.1. Conduct a brief assessment of the packaging suppliers in the three project locations, involving the following activities : 2 • Assessment com- MoCI, ACCI
ing practices among • Map packaging suppliers in the three locations with a comprehensive assessment of their capacities to suit dried fruit and pleted in three project
enterprises. locations, includ-
nut SMEs through factory visits and interviews.
• Assess challenges faced by suppliers in terms of sourcing inputs for their supply chain, and technical and financial chal- ing Kandahar and
lenges. Develop corrective measures and policies as required. Mazar-e-Sharif
• Develop a system of financial grants / loans to packaging companies to meet their operational expenses and capital ex-
penditures related to equipment and facilities.
• Review challenges to imports of important raw materials and packaging varieties, and related advocacy efforts at the of-
ficial level.
3.1.2. Develop and disseminate a yellow book of suppliers of packaging materials for the sector. 3 • Yellow book developed ANSA
• Create an inventory of domestic and international suppliers of packaging inputs for the sector, including contact informa- and disseminated MAIL, MoCI, ACCI, Fresh
tion and product specifications. Fruits and Dry Fruits
• Disseminate inventory via website and printed brochures to be available at the district level. Unions
• Update inventory of suppliers annually.
3.1.3. Conduct a short course to train enterprises ( sector firms and relevant packaging companies ) on international packag- 2 • Short course designed ANSA, MoCI, ACCI
ing requirements, practices and applications : and rolled out, benefiting
• Types of packaging and advice on how to improve packaging for reduced product losses across the value chain 50 companies
• Design and selection of packaging
• Packaging machinery options,
• Labelling and legislation by target markets ( e.g. UAE, EU ), such as the ISPM 15 regulation for packaging and the United
States Food, Drug and Cosmetic Act, section 409
• Reusing and recycling packaging.

[ PLAN OF ACTION ]
Provide marketing advice on how to improve packaging for brand differentiation and for profitable and successful market
access.
3.1.4. Packaging service centres. 2 • Two packaging service MoCI, ACCI
Conduct a feasibility analysis for the establishment of packaging service centres in Herat and Kabul in order to strengthen the centres established in
capacity of SMEs to increase value addition of targeted products and to expand trade within the region and internationally. Herat and Kabul
Potential capacities of the packaging centres to include :
• Quality label designing and printing
• Packaging materials available for sale
• Packaging machinery / technology to be sold to SMEs
• Common packaging facilities
• Training SMEs on quality packaging
• Packaging service centre promotion
• Sourcing information on packaging technology, packaging materials, database development
• Advisory and consultation services
• A mobile packaging facility.
Based on the feasibility analysis, establish two pilot packaging centres.
3.2. Increase market ac- 3.2.1. Build the capacities of sector exporters on business and export management skills to enable them to take better ad- 1 • Three short courses MoCI
cess by improving in- vantage of business opportunities. Conduct short trainings on : rolled out annually
market support. • Understanding business in Afghanistan : licences, taxation regimes
• Understanding exporting : export procedures and documentation, incoterms
• Negotiation skills.
67
 68

Strategic objective 3 : Reclaim Afghanistan’s prominent global reputation through improved packaging and sound market insertion strategies.
Operational objectives Activities Priority Implementation period Targets Lead and supporting
1=high implementers
2=med

2017
2018
2019
2020
2021
2022
3=low
3.2. Increase market ac- 3.2.2. Facilitate SME decision-making process through access to trade intelligence 2 • Courses for MSMEs MoCI,
cess by improving in- • Organize training sessions for exporters on marketing and business skills. Additionally, conduct training sessions and rolled out annually MoFA, ACCI and Joint
market support. • Market profiles devel- Chamber, and Afghanistan
workshops on export procedures and related documentation.
• Develop training / courses for micro, small and medium-sized enterprises ( MSMEs ) on how to analyse trade intelligence oped for at least five Trading House Abroad
and adjust their business strategies accordingly. target markets, including
• Develop market profiles for target markets ( e.g. United States, EU, India and UAE ). Information to include : India, UAE
–– Mandatory requirements ( e.g. quality, shipping, contracts )
–– International trade agreements with selected target markets, if applicable
–– Market prospects and emerging trends ( including niche markets, such as organic certification, varieties with premium
prices )
–– Optimal time of entry ( seasonal demand )
–– Risks of entering the market
–– Packaging legislation ( ISPM 15 ) and trends
–– Distribution channels and directory of main buyers in target markets
–– Trade fairs available in-country
–– Contact details of trade attachés
–– Food safety certification companies approved by country buyers.
• Implement mechanisms to actively disseminate trade information via various channels of communication ( print, televi-
sion, websites ).
3.2.3. Assess secondary markets for dried fruits and nuts processed into other products, such as almond flour, oil and milk. 2 • At least five market pro- MoCI
• Develop domestic and international market assessments and disseminate them through seminars and newsletters to sec- files developed
tor associations and firms.
3.2.4. Build capacities of trade attachés in priority markets on the potential of the dried fruits and nuts sector. 2 • Two online courses MoCI, MoFA
• Through online courses, conduct trainings to trade attachés in priority markets regarding the potential and importance of per year
the dried fruits and nuts sector for Afghanistan. Capacity-building will cover assistance to exporters in networking and
business development.
• Ensure trade attachés are fully staffed in key markets.
3.2.5. Develop a pilot initiative on e-commerce for the sector. 3 • Pilot initiative designed MoCI
• Explore e-commerce potential for dried fruits and nuts through a sector study, analysing e-commerce readiness, mar- and supporting at least
kets and available online market tools, payment providers, logistics firms and information technology infrastructure 10 SMEs
companies.
• Select key target markets ( e.g. China ) and examine consumer protection and e‑transaction laws.
• Identify and select firms / cooperatives which will benefit from the pilot initiative. Competitive selection to be based on
several factors, including export readiness.
• Provide capacity-building and technical assistance to selected firms / cooperatives, including :
–– Setting up a website
–– Online payment modality
–– Order fulfilment
–– Other functions as required.

[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]
3.3. Increase market ac- 3.3.1. Organize B2B meetings with specialized importers and large producing / processing companies, as they often com- 1 • Two B2B meetings a year MoCI, ACCI
cess by improving in- plement their offer with imported dried fruits and nuts. Include Intersnack, Seeberger, Bösch Boden Spies ( Germany ) : V. benefiting 10 SMEs
market support. Besana ( Italy ) ; Borges ( Spain ), for example.
 Strategic objective 3 : Reclaim Afghanistan’s prominent global reputation through improved packaging and sound market insertion strategies.
Operational objectives Activities Priority Implementation period Targets Lead and supporting
1=high implementers
2=med

2017
2018
2019
2020
2021
2022
3=low
3.3. Increase market ac- 3.3.2. Support key actors in the sector to participate in international trade fairs and exhibitions. 1 • Scheme designed and MoCI, MAIL, ACCI
cess by improving in- • Identify key international fairs and exhibitions for dried fruits and nuts, such as the International Nut and Dried Fruit implemented, benefiting
market support. at least 10 SMEs a year
Council World Nut and Dried Fruit Congress, Fruit Logistica and Anuga ( Germany ), and Asian Fruit Logistica.
• Disseminate information about identified international fairs and exhibitions among key stakeholders through websites.
• Develop a scheme to support MSMEs and exporters’ associations to participate in such fairs and exhibitions :
–– Develop guidelines for selection criteria of MSMEs to be supported
–– Define support modality, e.g. grant, subsidy
–– Provide training sessions on marketing to participants
–– Follow up on learnings with the businesses after the visits.
3.3.3. Train enterprises on how to prepare for market development and participation in trade fairs : 2 • Training conducted to at MoCI, ACCI, Fresh Fruit
• Preparing promotional materials in the language and culture of the host country least 30 SMEs a year and Vegetable Exporters
Union, Afghanistan
• Presentation and visibility ( including digital marketing )
Dry Fruit Exporters
• Managing supply and demand
Association
• Identifying and targeting potential buyers.
Capacitate exporters on Afghanistan’s signed trade agreements ( regulations, requirements and benefits ), particularly regard-
ing the United States’ Generalized System of Preferences, in order to maximize opportunities provided by these agreements.
Accompany this activity by disseminating related information through press coverage in print, radio and television.
3.3.4. Facilitate visa approvals for business purposes in key markets. 2 • Bilateral meetings are MoFA
• Examine visa reciprocity arrangements for business stays with key markets’ governments. held with at least two MoCI, ACCI
regional and three inter-
Organize regular meetings with high representatives in foreign affairs ministries in key Western markets to discuss improving
national foreign affairs
visa approvals for Afghan business visitors.
ministries
Organize regular meetings with high representatives of foreign affairs ministries of key regional markets ( such as India,

[ PLAN OF ACTION ]
Islamic Republic of Iran ) to discuss reducing visa processing costs for Afghan business visitors.
3.3.5. Assist sector firms to establish warehousing and wholesaling operations in key target markets ( e.g. India and UAE ), 2 • Five feasibility studies MoCI ( Export
following specifications for storing sector subproducts, e.g. raisins, almonds, etc. are supported Promotion Agency of
Afghanistan )
3.4. Support the develop- 3.4.1. Support and facilitate tailored market information for organic producers by : 2 • Guidelines developed ANSA, MoCI, ACCI
ment of organic products • Developing guidelines for organic agriculture based on certification and quality requirements to be met in importing • Support five SMEs, in-
for export. cluding associations and
countries.
• Identifying possible partners, including exporters, foreign buyers, distributors and consumers, in order to establish appro- cooperatives, to increase
priate marketing strategies. their share of organic
• Assessing tariff protection in foreign markets ( including preferential rates ) and efficient ways to enter those markets. products
• Identifying availability of price premiums and likely future development of such premiums.
• Offering information about how to diversify their organic products, and providing them with valid information about vi-
able demand in international markets. Develop and disseminate market profiles based on the above-mentioned analysis.
Provide relevant technical assistance to sector SMEs.
3.4.2. Explore local partnerships with international certification bodies for organic production approved by main target mar- 3 • Two memorandums of ANSA, MoCI, ACCI
kets’ regulatory bodies, such as the European Commission. understanding are signed
• Develop a scheme for organic certification, prioritizing specific dried fruits and nuts products ( e.g. almonds, dried figs, with international certifi-
dried apricots ). cation bodies
69
 70

Strategic objective 3 : Reclaim Afghanistan’s prominent global reputation through improved packaging and sound market insertion strategies.
Operational objectives Activities Priority Implementation period Targets Lead and supporting
1=high implementers
2=med

2017
2018
2019
2020
2021
2022
3=low
3.5. Improve the position- 3.5.1. Support the dissemination and improvement of the Afghan fruit tree catalogue developed by ANNGO among potential 2 • Catalogue revised and MAIL, AREU, Plant
ing of the national Afghan buyers. Catalogue to be revised to include : disseminated annually Biotechnology Laboratory,
brand for dried fruits and • Leading Afghan dried fruits and nuts products, including premium varieties. Based on market research, highlight the pro- MoRRD ( Afghanistan
nuts through targeted Institute for Rural
duction of specific varieties according to target markets.
marketing and branding. Development ), Ministry of
• Regions of production.
Public Health, ACCI
• Certifications available.
• Afghan exporters’ directory.
Publish individual booklets and brochures for dried fruits and nuts varieties in Afghanistan.
3.5.2. Create awareness to increase consumption of Afghan dried fruits and nuts in key target markets. 3 • Tailored campaign is MoCI, ACCI, MAIL
• Select regional and international key and emerging markets ( e.g. Italy ) to carry out a campaign to promote knowledge and designed and rolled out
consumption of Afghan dried fruits and nuts among end consumers. in at least three target
markets
3.5.3. Establish a committee composed of public and private sector representatives and focused on marketing and branding, 2 • Committee on marketing MoCI. ACCI, MAIL
within the newly formed high-level sector platform. and branding established
• Committee to develop a funding mechanism to support branding activities in collaboration with all sector stakeholders. • Funding mechanism
developed
3.5.4. Based on common objectives developed in terms of Afghan quality standards, determine the added value of a brand- 2 • Branding sector plan is MoCI. ACCI, MAIL
ing programme. designed and rolled out
• Committee on marketing and branding to explore the option of developing a standard logo or a mark for the sector, which
can be easily recognized both inside and outside the country, and establish a licensing fee for the use of the official logo.

[ AFGHANISTAN’S NATIONAL EXPORT STRATEGY / DRIED FRUITS AND NUTS SECTOR 2018-2022 ]

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