Afghanistan: Can pomegranates power the economy?

13:30 | 04.12.2014
Afghanistan: Can pomegranates power the economy?

Afghanistan: Can pomegranates power the economy?

As delegates gather in London for a conference on Afghanistan, the prospects for reducing the reliance on foreign aid are increasingly focused on two sectors of the economy: agriculture and hydrocarbons.

Harvest time is coming to an end in the fruit orchards of Kandahar, a province now more associated with the Taliban than its famous pomegranates.

Amid shouts of "Ya Allah! Ya Allah!" fruit pickers are urging care as they pass the valuable crop from the tree tops to catchers on the ground.

The weather is still mild and ideal to let the fruit sweeten. Packed in boxes or jute sacks, the fruit make its way to markets and warehouses, some goes to Pakistan and the Middle East.

But for Afghanistan to profit from one of its key crops, it needs to reach more profitable markets in Europe and beyond.

Learning curve
In a factory in southern England, cartons of pomegranate juice are rolling off the production line.

The Pomegreat juice company buys quality pomegranate concentrate from all over the world and now has its sights set on Afghanistan.

"Pomegranates from Afghanistan are amongst the best in the world," says its boss Adam Pritchard. "But the logistical challenges are also amongst some of the most difficult."

At this week's London Conference on Afghanistan, Mr Pritchard has signed a multimillion pound supply agreement with the Kabul-based Omaid Bahar Fruit Processing Company to buy 1,000 tonnes of pomegranate concentrate.

It could prove a blueprint for Afghan agriculture in the years to come if all goes to plan.

Plenty of Challenges
In an office in central Kabul, Najlla Habibiyar, head of Afghanistan's Export Promotion Agency, is realistic about the extent of the challenge facing Mr Pritchard and his Afghan partners.

She is only too aware of how tough it is for Afghan farmers to make a living from pomegranates, in contrast to the illegal mainstay - opium.

Pomegranates need "work, time and a good market", she says. "But with poppies, farmers know they'll get paid, even if their crops get eradicated. It's less hassle."

Opium production was up 17% this year - as poor security further dented efforts to stamp out poppy growing.

Pomegranate production is also on the rise. But while poppy farmers can expect the buyers to come to them, pomegranate growers face big obstacles getting their fruit to market.

"The main challenges are to have proper facilities for cold storage, processing and packaging", says Najlla Habibyar. "And unfortunately we don't have an internationally recognised body to do the final quality checks and certify the product."

When Pomegreat first looked at buying juice concentrate from Kabul, these complications meant the final product was just too expensive.

But Adam Pritchard hopes things will be different now.

"We're trying to work with the manufacturing facility to help them develop a process which allows their product to become more commercially viable and to compete in the world market," he says.

Oiling the economy
In northern Afghanistan, foreign investors are also working with local companies to kickstart the economy.

In this case, the end product is oil.

In the basin of the Amu Darya, one of the region's great rivers, the Kashkari oil field is one of three being developed by China's National Petroleum Company in partnership with Afghanistan's Watan Group.

The 25-year profit-sharing deal was signed in 2011. Three years on, there are brand-new looking installations on show, but progress is slow.

There are thought to be around 80 million barrels of oil in these fields.

It is not much in global terms, but it would be enough to fuel the local economy if the oil could be exploited and processed more quickly.

Daily production so far is just a fifth of what was expected, according to the mines ministry.

There is no processing capacity on site and the crude oil has to be transported to the nearest refinery in Hairatan, a dangerous four-hour drive.

(BBC)

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