Tangy Tomato Paste from Afghanistan The modernization of Afghan agro industry constitutes a priority for the Government of Islamic Republic of Afghanistan. It is also a necessary condition to generate demand for agriculture produce, which will introduce incentives to increase production and harmonize produce quality. The Agriculture Development Fund (ADF) provided a loan to Qarizada Tomato Paste Company, an enterprise established in 2007 and one of the largest food processing companies in Herat Province of Afghanistan. The ADF loan is enabling the company to increase processing capacity to meeting growing market demand. This is being achieved through a three pronged approach: a) Financing the procurement of a boiler that will reduce the reliance of the company on diesels generated electricity, b) Increase the capacity of the company to produce its own tin cans, thereby replacing imports from China and Pakistan, and c) Improving food safety while mechanizing the production process. As a result of the loan the companies will increase its output from 15,000 to 28,000 800g cans per day, which will translate in increased demand for 10,400 metric tons of tomatoes, directly engaging an estimated 800 farm households. In addition to the loan, the ADF is providing the company with technical assistance in quality control and marketing, thereby increasing the likelihood of success of the enterprise. The ADF loan constitutes a clear example of how finance is being used to cement the links in the agriculture value chains, supporting inclusive and sustainable agricultural development. Since 2010 the ADF processed loans worth 2.72 billion Afghanis ($54.4 million USD) and disbursed 1.25 billion Afghanis ($25 million USD) to over 16,000 rural households in 30 provinces of Afghanistan. The ADF was established by the Ministry of Agriculture, Irrigation and Livestock of the Government of Islamic Republic of Afghanistan with the support from the United Sates Government.
Posted on: Wed, 26 Jun 2013 06:13:11 +0000
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