d e z ri o h ut A e r u s o cl s Di c bli u P d e z ri o h ut A e r u s o cl s Di c bli u P d e z ri o h ut A e r u s o cl s Di c bli u P UNDERSTANDING GENDER IN AGRICULTURAL VALUE CHAINS: THE CASES OF GRAPES/RAISIN S, ALMONDS AND SAFFRON IN d e AFGHANISTAN riz o h ut A e r Agriculture and Rural Development Unit u os Sustainable Development Department scl South Asia Region Di The World Bank c bli u P May 2011 Report No. 62323-AF CURRENCY EQUIVALENTS (Exchange rate effective as of July 2010) Currency unit = Afghani (Af) US$ 1.00 = 46.2 Af FISCAL YEAR March 21 – March 20 UNITS OF MEASURE 1 jerib 0.4942 acres or 2,000 square meters 1 ser 7 kilograms ABBREVIATIONS AND ACRONYMS AAIDO Afghanistan Almond Industry Development Organization ACCI Afghanistan Chamber of Commerce and Industries Af Afghani (currency) AFSA Afghanistan Farm Service Alliance AMIP Agriculture Market Infrastructure Project ANDS Afghanistan National Development Strategy ANSA Afghanistan National Standardization Authority APPRO Afghan Public Policy Research Organization APTTA Afghanistan - Pakistan Transit Trade Agreement AREDP Afghanistan Rural Enterprise Development Program ASAP Accelerating Sustainable Agriculture Program ASMED Afghanistan Small and Medium Enterprise Development AWBC Afghan Women's Business Council AWBF Afghan Women's Business Federation b Billion CDC Community Development Council CSO Central Statistics Organization (Afghanistan) DACAAR Danish Committee for Aid to Afghan Refugees ECO Economic Cooperation Organization EPA Afghanistan Raisins, Fruits and Vegetables Export Promotion Agency EPAA Export Promotion Agency of Afghanistan EU European Union FAO Food and Agriculture Organization of the United Nations FGD Focus group discussion FOD Farmer Organization Development g Gram GTZ Deutsche Gesellschaft für Technische Zusammenarbeit ha Hectare HLP Horticulture and Livestock Project ISO Information Organization for Standardization KAIIFC Khulm Agriculture Islamic Investment Finance and Cooperative Kg Kilogram i M Million MAIL Ministry of Agriculture, Irrigation, and Livestock MBDFA Mazar Sharif Balkh Dry Fruits Processing Association MEDA Mennonite Economic Development Associates MFI Microfinance institution MOC Ministry of Commerce MOWA Ministry of Women's Affairs MRRD Ministry of Rural Rehabilitation and Development NGO Nongovernmental organization NSDP National Skills Development Program NSP National Solidarity Program PRT Provincial Reconstruction Team PTA Preferential Trade Agreement Rs Rupees SAARC South Asia Association of Regional Countries SAFTA South Asia Free Trade Agreement SDO Sanayee Development Organization t Metric ton TTGG Through the Garden Gate Project UAE United Arab Emirates UK United Kingdom UN United Nations USAID United States Agency for International Development USA United States of America VF Village facilitator WOCCU World Council of Credit Unions WTO World Trade Organization yr Year Vice President: Isabel Guerrero Country Director: Nicholas J. Krafft Sector Director: John Henry Stein Sector Manager: Simeon Ehui Project Team Leaders: Jennifer Solotaroff, Mio Takada ii Table of Contents Acknowledgements .................................................................................................................. vii Executive Summary ................................................................................................................ viii Chapter 1: Understanding Gender in Afghanistan’s Agricultural Value Chains: Context, Methodology, and Case Studies .................................................................................................1 1.1 The Context ..........................................................................................................................1 1.2 Study Objectives ..................................................................................................................2 1.3 Methodology ........................................................................................................................2 1.4 Selecting Value Chains for the Case Studies .......................................................................4 1.5 Organization of this Policy Note..........................................................................................7 Chapter 2: Afghanistan’s Expanding Export Markets and Women’s Potential to Participate ....................................................................................................................................9 2.1 Exports and Export Partners in Regional and International Markets ..................................9 2.2 Gender Dimensions in the Agricultural Sector ..................................................................12 2.3 Conclusion: Toward a More Nuanced Understanding of Gender in Agricultural Value Chains ................................................................................................................................14 Chapter 3: Women’s Constraints and Opportunities in the Grape/Raisin, Almond, and Saffron Value Chains ................................................................................................................15 3.1 Women’s Roles in the Grape/Raisin, Almond and Saffron Value Chains ........................15 3.2 Constraints and Opportunities for Women Producers .......................................................23 Chapter 4: Policy Recommendations ......................................................................................31 4.1 Promoting Opportunities For Women Producers ...............................................................31 4.2 Conclusion: Developing Value Chains That Work for Rural Women ..............................33 References ..................................................................................................................................35 ANNEXES Annex 1: Grape and Raisin Value Chain Annex 2: Almond Value Chain iii Annex 3: Saffron Value Chain Annex 4: Meetings with Key Value Chain Participants Annex 5: Interview Data Annex 6: Stakeholder Workshop TABLES Table 1.1: List of key export products with women’s involvement in value chains Table 1.2: Value chain selection Table 1.3: Export of raisins and almonds by Afghanistan Table 2.1: Afghanistan’s exports by country, 2004–09 Table 2.2: Afghanistan’s participation in multilateral trade and trade-related organizations Table 2.3: Preferential tariffs on Afghan raisins, almonds, and grapes by the Government of India Table 3.1: HLP farmers’ sals and income from grapes, raisins, and almonds Table A1.1: World’s top 10 fresh grape exporters and Afghanistan, 2006–09 Table A1.2: World’s top 10 fresh grape importers, 2006–09 Table A1.3: World’s top 10 raisin exporters, 2006–09 Table A1.4: Major importers of Afghan raisins, 2006–09 Table A1.5: World’s top 10 raisin importers, 2006–09 Table A1.6: Differences in fresh grape yields, sales volumes, and income among HLP producer households Table A1.7: Differences in raisin yields, sales volumes, and income among HLP producer households Table A1.8: Prices and costs along the value chain for fresh grapes and raisins Table A2.1: World’s top 11 almond exporters, 2006–09 Table A2.2: Major importers of Afghan almonds, 2006–09 Table A2.3: World’s top 10 almond importers, 2006–09 Table A2.4: Differences in almond yields, sales volumes, and income among HLP producer households Table A2.5: Prices and costs along the value chain for almonds Table A3.1: World’s top saffron exporters, 2006–09 Table A3.2: World’s top 10 saffron importers, 2006–09 Table A3.3: Prices of imported and domestically produced saffron, Afghanistan, 2010 FIGURES Figure 2.1: Afghanistan’s exports in 2008 Figure 3.1: Raisin subsector map Figure 3.2: Red raisin value chain Figure 3.3: High-quality, in-shell almond value chain Figure 3.4: Constraints tree: Raisins Figure 3.5: Gender constraints in the raisin subsector Figure A1.1: Fresh grape subsector map Figure A1.2: Raisin subsector map Figure A1.3: Trade values: Fresh grapes (in-season and off-season) Figure A1.4: Trade values: Red raisins Figure A1.5: Trade values: Green raisins iv Figure A1.6: Trade values: Golden raisins Figure A1.7: Constraints tree: Fresh grapes Figure A1.8: Constraints tree: Raisins Figure A1.9: Gender constraints in the fresh grape subsector Figure A1.10: Gender constraints in the raisin subsector Figure A2.1: Almond subsector map Figure A2.2: Value chain: High-quality, in-shell almonds Figure A2.3: Value chain: Medium-quality, shelled and in-shell almonds Figure A2.4: Value chain: Low-quality, shelled and in-shell almonds Figure A2.5: Constraints tree: Almonds Figure A2.6: Gender constraints in the almond subsector Figure A3.1: Saffron subsector map Figure A3.2: Value chain: Saffron Figure A3.3: Constraints tree: Saffron Figure A3.4: Gender constraints in the saffron subsector BOXES Box 2.1: Afghan women’s land ownership Box 3.1: The Kabul Women Farm Store Box 3.2: Providing extension services to women: The HLP experience Box 3.3: Two saffron producer associations for Afghan women Box 3.4: The Afghan Pride Association: A women-owned processing company Box 3.5: Through the Garden Gate: A project mobilizes women in the vegetable value chain Box 3.6: Developing the saffron value chain with women producers MAP Map 1.1: Main production areas and trade routes in Afghanistan for grapes/raisins, almonds, and saffron v ACKNOWLEDGEMENTS This report was prepared by a team led by Jennifer Solotaroff and Mio Takada, with the core team comprising Miki Terasawa, Cornelia Staritz, and Najla Sabri. The report was developed under the overall guidance of Simeon Ehui, Sector Manager, Agriculture and Rural Development Department, South Asia (SASDA), and Maria Correia, Sector Manager, Social Development Department, South Asia (SASDS). Venkat Ramachandran, Wahida Obaidy, and Wazhma Khalili provided administrative assistance. The major contribution to this report was made by the Mennonite Economic Development Associates (MEDA), with a team of consultants led by Ann Gordon with the participation of Catherine Sobrevega, Deepa Swaminathan, Zainab Wahidi, Mohibullah Mohmand, Simrat Mand, and Parinaz Hissami. The MEDA team undertook extensive field and desk research and data analysis for two value chains (grapes/raisins and almonds). MEDA also carried out desk research and data analysis on the saffron value chain, building on the field research conducted by the Afghan Public Policy Research Organization (APPRO). Miki Terasawa converted MEDA’s field report into the policy document contained in these pages. The team wishes to thank the peer reviewers, Stephen Jaffee, Asta Olesen, and Riikka Rajalahti for helpful comments and guidance; and counterparts in the Ministry of Agriculture, Irrigation, and Livestock (MAIL) and the Horticulture and Livestock Project (HLP) team for their valuable assistance. The team also extends its thanks to the women; entrepreneurs; service providers; producer and/or trade organizations; the Ministries of Rural Rehabilitation and Development (MRRD), Public Works (MPW), Women’s Affairs (MOWA), and Commerce (MOC); nongovernmental organizations, in particular Roots of Peace and the Danish Committee for Aid to Afghan Refugees (DACAAR); and donors in Afghanistan who provided valuable input to the study through interviews and the stakeholder workshop. The study was made possible through assistance from the Multi-Donor Trust Fund for Trade and Development, and its dissemination is supported by a Gender Action Plan Just-in-Time grant. The team wishes to take this opportunity to express its appreciation for the supporting donors. vi EXECUTIVE SUMMARY 1. Afghanistan has comparative and competitive strengths in agriculture, which accounts for approximately half of its gross domestic product. An estimated 54 percent of Afghanistan’s agricultural workforce is female, and women are especially prominent in horticulture. More than half of Afghanistan’s official exports—not including informal or illicit trade—are fresh or processed horticultural crops, especially fresh grapes and raisins (approximately 40 percent of Afghanistan’s horticultural exports) and almonds (20 percent). Exports of saffron, although still very small, have the potential to become quite significant, and women are heavily involved in growing and processing this extremely high-value crop. 2. Recognizing women’s predominance in agricultural production, harvesting, and processing, the National Agriculture Development Framework of the Ministry of Agriculture, Irrigation, and Livestock (MAIL) stipulates that gender mainstreaming must form an important cross-cutting element of its work in economic regeneration, agricultural production, and natural resource management (MAIL 2009). This study supports gender mainstreaming in horticulture by developing a better understanding of constraints and opportunities shaping women’s prospects for moving up the value chains for grapes/raisins, almonds, and saffron. The study maps the placement and roles of women and men in the value chains of these key horticultural exports. It identifies constraints and opportunities influencing the value chains in general and women’s roles in particular. The analysis combines a vertical perspective (focusing on sectoral dynamics and commercial actors) with a horizontal perspective (focusing on institutions and structures in the Afghan context). The study involved extensive field research in Kabul, Parwan, Balkh, and Herat Provinces. 3. Women are generally concentrated at the lower levels of the grape/raisin, almond, and saffron value chains, where they perform irrigation, weeding, harvesting, and minimal processing, such as drying and packing raisins and almonds, at the household level. Men, on the other hand, link households with the market to obtain input supply and sell the products, in addition to their substantial engagement in production. Most of these activities also involve heavy lifting, such as carrying 50 plus kilogram bags to the local market. Men also serve as the actors in the upper levels of the value chains, including middlemen or village-level traders and processors, wholesalers, retailers, or exporters. This division of labor is largely a reflection of social and cultural norms, which do not allow women to interact with men, travel by themselves, or own land. These factors severely curtail women’s access to resources and services, including credit, training, extension, inputs, and trading and marketing networks. Women do not have collateral to apply for credit or opportunities to participate in extension training because selection for these opportunities is often based on land ownership. Moreover, there are few or no women service providers in extension, credit, input supply, or marketing. Despite the key roles women play in harvesting and post-harvest processing, there is little or no training on quality control, including hygiene, sanitation, and higher-value varieties. 4. Because men and women perform different functions, the difference in their wages is not comparable. Rural women perform harvesting and post-harvest processing of raisins, almonds, and saffron as a part of household chores; thus, their work goes unpaid. In the case of saffron, however, some women (most likely from women producer associations) are hired by small- or vii large-scale farmers at Af 200-300 per day, because these activities are highly labor intensive as well as time bound. A similar wage (Af 100-200 per day, or Af 100 per 50-kilogram processed) is paid to women in urban or peri-urban areas, who are hired by processors or wholesalers to clean, sort, grade, and package raisins or almonds for national, regional, and international markets. Post-harvest processing is among the lowest paid work, in which men—who have other opportunities—would not be interested. For example, male laborers, who are hired by exporters to harvest, pack, and load crates of fresh grapes, are paid Af 400 per day. 5. The case studies show that in developing value chains that work for women, it is vital for women producers to (i) remain in charge of harvesting and post-harvest processing and (ii) be provided with women-to-women service delivery. These conditions can be achieved by (a) providing training on quality control in harvesting and post-harvest handling, including hygiene, sanitation, sorting, and grading; (b) mobilizing women producer associations; (c) developing a pool of women para-professionals at the village level, who would work in critical areas such as input supply, extension, quality control, credit, and trade/market linkages; (d) facilitating women’s access to credit by developing MFI linkages; (e) facilitating women’s access to medium and high-end export markets by providing certification and supporting research on high-end market preferences; (f) using information technology in service provision. In support of women’s movement up in the grape/raisin, almond, and saffron value chains, this study offers the following policy recommendations: 6. Develop value chain action plans that would enhance women’s participation. MAIL should develop value chain action plans for key horticulture export products, including grapes/raisins, almonds, and saffron. These plans should be developed in consultation with all stakeholders, such as women producers, other key value chain actors, the private sector, relevant ministries and agencies, NGOs, and donors. Developing and implementing the plans would require honest brokers, such as NGOs already active in promoting the value chains. These brokers should also monitor impacts on household dynamics as well as increases in household income. 7. In supporting the action plans, MAIL also should develop a marketing strategy for each product to access key regional and international markets. The strategy would help identify quality standards and certification requirements, which need to be addressed by extension packages. This would have to be developed in consultation with export support agencies, such as the Export Promotion Agency of Afghanistan (EPAA) and the Afghanistan Chamber of Commerce and Industries (ACCI), and the private sector. 8. Support mobilization of women’s producer groups and their aggregation with men’s groups at the cluster or district level. In forming producer groups, the Community Development Councils (CDCs) developed by the National Solidarity Program (NSP) should be the entry point and provide a governance mechanism by ensuring transparency and accountability in the selection and management of producer groups. The human capacity and knowledge of CDC members (in subproject management, accounting, and procurement capacity, for example) could support producer groups in undertaking select group activities. viii 9. Female and male producer groups should be aggregated at the cluster or district level, which would enable producers to reach economy of scale to attract regional or international buyers. Global experiences indicate that by encouraging women to stay in charge of harvesting and post-harvest processing, there could be opportunities for the cluster organizations to market their products with those international buyers, who are willing to pay premium for women- managed value addition or businesses. 10. Improve rural outreach by developing a pool of women para-professionals. MAIL could support creating a pool of women para-professionals at the producer or cluster/district level by training women high school graduates. In addition to providing extension services, these para-professionals could develop entry points for service delivery, such as by (i) mobilizing group formation and accounting support for savings and credit and/or (ii) developing linkages with MFIs and markets. Following good practices identified in livelihood development projects elsewhere in South Asia, these para-professionals could be contracted by NGOs or eventually work for producer groups and associations for a fee per business case. The latter would shift quality control from NGOs to producers themselves, thus ensuring sustainability. 11. Develop a certified training program for women extension service providers. MAIL should develop a systematic extension training program in collaboration with the Ministries of Education and Higher Education. The program would provide women extension workers with current knowledge, in particular of harvesting, post-harvest handling, quality control, and market information. Another program should also be developed for women para-professionals, who would require less technical but more pedagogical training on the value chains. These programs would also offer regular opportunities for re-training to update their skills. The National Skills Development Program (NSDP) could support development of a certification program and identify training providers. The Faculties of Agriculture in Kabul, Balkh, and Herat Universities could potentially expand their curricula to deliver the program for extension workers and para- professionals. It is recommended that MAIL support these universities to strengthen research and development of grapes/raisins, almonds, and saffron value chains. 12. Improve rural road infrastructure to enable access by women service providers. Poor public infrastructure, particularly for rural connectivity, is one of the major constraints on the ability of women service providers, including extension workers and village-level traders or sales agents, to reach women producers. The World Bank-financed National Emergency Rural Access Project has been upgrading tertiary roads to improve access to and from rural areas. Even so, more investments are necessary to upgrade farm roads, and MAIL and key ministries should continue investigating alternatives. In building access roads, the hub approach is recommended. A good practice is also to carefully consult the value chain actors—in particular, processors—on the appropriate locations for raw material/processed product acquisition. This may further guide infrastructure investment to the economically most appropriate locations. 13. Provide value chain innovation grants for women. A grant facility could be set up to specifically support women’s producer groups, female service providers in a cluster organization, or women-managed processing companies, in innovation and entrepreneurship to promote the value chains of key horticulture export products for Afghanistan. This incentive could finance women’s producer groups in accessing value addition tools and infrastructure, ix
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