Project for Socio-economic Activation of Rural...

Japan International Cooperation Agency (JICA) Ministry of Rural Rehabilitation and Development (MRRD)

Islamic Republic of Afghanistan

Project for Socio-economic Activation of Rural Afghanistan

Report on Implementation of Small-Scale Pilot Projects

September 2013

Oriental Consultants Co., Ltd.

INDEX

1. Introduction ............................................................................................................................. 1 1.1 Objectives of Small-Scale Pilot Projects .......................................................................... 1 1.2 Implementation Mechanism of the Small-Scale Pilot Projects ........................................ 3

2. Findings of the Three Small-Scale Pilot Projects ................................................................... 5 2.1 Potato Production and Processing Project ........................................................................ 5 2.2 Dairy Product Improvement Project ................................................................................. 12 2.3 Village Naan-Baking Service Project ............................................................................... 19

3. Lessons Learned and Suggestions for Economic Activation in Bamyan Province................. 23 3.1 Fostering Enterprises Specialized in Processing and Sales of Agricultural Products ...... 23 3.2 Branding and Expanding Sales of Dairy Products made in Bamyan ............................... 24 3.3 Necessity for Raising Villager’s Awareness for Women’s Engagement in Economic

Activities .......................................................................................................................... 24

Tables Table 1-1 Location of Small-Scale Pilot Projects .............................................................................. 1 Table 2-1 Changes in Potato Productivity ......................................................................................... 7 Table 2-2 Major Imported Potato Chips sold in Bamyan Center* ..................................................... 8 Table 2-3 Projected Financial Plan (case of minimum sales to avoid deficit) ................................ 9 Table 2-4 Price Difference of Potatoes Sold with Different Timing ................................................ 10 Table 2-5 Impact of Silage on Milk Production ................................................................................ 14 Table 2-6 Balance of Badanbagh Naan-Baking Center(calculated based on sales in July 2013) .... 23

Figures

Figure 1-1 Location of Small-Scale Pilot Projects ............................................................................ 2 Figure 1-2 Implementation Structure for the Small-Scale Pilot Projects ........................................... 4 Figure 2-1 Evaluation of Silage Application by Farmers ................................................................ 14 Figure 2-2 Changes in Farm-Gate Price of Chaka ........................................................................... 16 Figure 2-3 Breakdown of Sales Amount of Dairy Products (Nov 2012 – May 2013) ..................... 17 Figure 2-4 Simplified Estimation of Profitability from Dairy Processing ..................................... 18 Figure 2-5 Changes in the Number of Users ................................................................................... 21 Figure 2-6 Spare Time Generated by Using Naan-Baking Services ................................................ 22

Annex 1: Business Plan for Business Plan for Potato Processing Center / Qala Nau, Munara Village Annex 2: Business Plan for Dairy Processing Center / Shahra Qarghanato Village Annex 3: Business Plan for Village Nan-Baking Project / Surkhdar CDC Annex 4: Selection Process of Small-Scale Pilot Projects Annex 5: Participants of the Small-Scale Pilot Projects

Annex 6: Actions Taken in Response to the Issues pointed out in the Wrap-up Workshop and Site Visit

Annex 7: Discussions Regarding Follow-Up and Continuation of Small-Scale Pilot Projects

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1. Introduction

1.1 Outline of Small-Scale Pilot Projects

The Promotion Plan for Rural Economic Activation proposed by SEARAP indicates a series of measures for activating the rural socio-economy through efficiently and effectively utilizing regional development potentials. In order to verify the viability of the approaches indicated in the Promotion Plan and to examine necessary measures for their materialization, several small-scale pilot projects were planned and implemented under SEARAP. The activities comprising the pilot projects were selected from those with high priority within the Promotion Plan and from sectors with high development potentials, particularly in terms of economic activation. The planning and implementation processes of the small-scale pilot projects were also expected to contribute to the strengthening of the capacity of local government staff for planning and implementing practical works. The pilot projects were selected from the viewpoint of potentialities of activities, project scale, implementation period and necessary budget, and taking into consideration the priority development needs indicated by the local counterparts.1 As a result, nine candidate pilot projects were initially formulated by the SEARAP Project Team (see Annex-1). Subsequently, the candidates were jointly evaluated with the local counterparts and three small-scale pilot projects were finally selected for implementation. These are: 1) Potato Production and Processing Project, 2) Dairy Product Improvement Project, and 3) Village Naan-Baking Service Project.

Table 1-1 Location of Small-Scale Pilot Projects Small-Scale Pilot Project Location

Potato Production and Processing Project

Monara CDC, Folladi Valley, Bamyan Center District

Dairy Product Improvement Project Shahrah Qarghanato CDC, Qarghanato, Bamyan Center District

Village Naan-Baking Service Project Badanbagh Cluster and Geroo Cluster, Surkhdar, Bamyan Center District

1 Members who participated in the processes were representatives from: Provincial Governors Office (PGO), Provincial Office of Rural Rehabilitation and Development (PRRD), Department of Agriculture, Irrigation and Livestock (DAIL), Department of Economy (DoE) and Provincial Council (PC).

2

Figure 1-1 Location of Small-Scale Pilot Projects

Each of the pilot projects was implemented for a period of approximately one year. Though these short implementation periods somewhat limited the level of verification for some of the means and approaches in the pilot projects, sustainable operation of economic activities by local participants with the support of provincial government organizations were generally formulated within the period, expect for a certain portion of the Potato Production and Processing Project.

At the end of each pilot project, a participatory terminal evaluation was conducted, in which the following three items were identified: 1) necessary improvements of the project components and approaches, 2) issues for enhancement of the capacities of relevant organizations and individuals,and 3) issues in terms of securing sustainability of the projects. The findings of the terminal evaluation were reflected in the Promotion Plan for Rural Economic Activation and the Action Plan. The SEARAP Project Team also evaluated effectiveness, applicability, impact and sustainability of the models used in the projects.

This report indicates the results of the small-scale pilot projects, including their implementationprocesses, identified project effects, results of verification of the projects as models for economic activation, lessons learned and recommendations. It is hoped for that this report will provide valuable information for the central and provincial government for continuing and furtherexpanding the activities introduced through the small-scale pilot projects as a model for development.

Bamyan CityVillage Naan-Baking

Service Project

Potato Production and Processing Project

Dairy Product Improvement Project

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1.2 Implementation Mechanism of the Small-Scale Pilot Projects

The implementation structure for the small-scale pilot projects was formulated with the participation of officers from the Provincial Office of Rural Rehabilitation and Development (PRRD) and the Department of Agriculture, Irrigation and Livestock (DAIL), and was accepted in the counterpart meeting on 11 February 2012. The implementation structure is outlined in the following and in Figure 1-2.

- The Administration Unit formulated within the SEARAP Project Team took charge of the overall control of the pilot projects, procurement of equipment and material, and coordination among relevant organizations.

- Actual implementation of the pilot projects was managed by an implementation unit, which consisted of one member from each of the PRRD, DAIL and the SEARAP Project Team, who were exclusively engaged to support the operation of the pilot projects. One social organizer from PRRD and one crop cultivation specialist from DAIL participated in the implementation unit.

- In addition to the above, PRRD and DAIL deployed staff on an ad-hoc basis to facilitate the implementation of the pilot projects. One livestock specialist from DAIL participated for this purpose.

- Dispatching of other resources, such as technical trainers was requested to other relevant organizations working in the same field. Cooperation of the Rural Business Support Project (RBSP), implemented under MAIL, was obtained for the Potato Production and Processing Project. Trainers for the Dairy Product Improvement Project were dispatched from FAO, to share their wide experience in livestock management and dairy processing in the country. Support for the Village Naan-Baking Service Project was provided by Helvetas, which is an NGO withe some experience to support a naan-baking project in Sayghan district of Bamyan.

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Team LeaderMr. Yamamoto

Japanese Experts of Study Team

Project Coordinator of Study Team

Assistant Mr. Noor/ Ms. Raihana (N.S.)

Construction ManagementEng. Yaqoobi (N.S.)

Chief of Implementation UnitMr. Mohamadullah (N.S.)

Facilitation and MonitoringEng. Rahimulla(PRRD/DSO)

Technical Support and Monitoring[Potato cultivation]

Mr. Ramazan(DAIL)

SEARAP National Staffs

Potato: Mr. Zahir (N.S.)Dairy: Dr. Niamatullah (N.S.)

Bakery: Mr. Zabi (N.S.)

Facilitator-1Eng. Rahimulla(PRRD/DSO)

Technical Support and Monitoring[Livestock and processing]

Mr. Saeed Saadat(DAIL)

External Resource Persons

Helvetas

RBSP/MAIL Kabul

National Staffs

Part-time engaged

Implementation Unit (Permanent engaged)

STUDY TEAM PRRD DAIL

Administration Unit

FAO Development of Integrated Dairy Scheme

Figure 1-2 Implementation Structure for the Small-Scale Pilot Projects

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2. Findings of the Three Small-Scale Pilot Projects

Three small-scale pilot projects were implemented under SEARAP: 1) Potato Production and Processing Project, 2) Dairy Product Improvement Project, and 3) Village Naan-Baking Service Project. Outlines, results of verification and recommendations of the projects are described below.

2.1 Potato Production and Processing Project

(1) Outline

The pilot project was implemented to verify a series of activities aiming at establishing a value chain of potatoes, which are one of the major agricultural products in the province. Taking into consideration the difficulties in covering the entire value chain within a short implementation period, the pilot project mainly focused on production, processing and sales, verifying the viability of farming techniques for improving productivity and possibilities for value adding through agro-processing.

Enhancements in productivity and quality of potatoes were to be accomplished though the improvement of cultivation techniques. To improve the sales price, the timing of shipment was changed by utilizing modern storage facilities. Appropriate grading was also introduced for this purpose. In addition, potato chip processing was carried out after harvest, and the products were sold on a trial basis. Through the aforementioned activities, attempts were made to verify increases in the selling price of potatoes resulting from improved quality and marketing, along with the possibility of introducing potato chip processing to local farmers.

As a result, the effectiveness and viability of introducing appropriate farming techniques for improving the productivity and quality of potatoes was verified. On the other hand, the economic impact and feasibility of potato chip production by the farmers could not be verified within the project period.

Target Group (Responsible person)

Farmers’ group producing potatoes (Mr. Mohamad Hassan, Leader of potato processing)

Subsector Agriculture (Crop farming, Agro-processing)

Project site Monara CDC, Foladi Valley, Bamyan Center District

Implementation period

Potato Production: From April 2012 to November 2012 Potato Processing: From August 2012 to May 2013

Population benefitting from the project

Potato Production Farmers’ group producing potatoes: 20 persons Participants in the training for potato production: 50 persons Potato Processing Processing group: 7 persons

Aim of activities To develop a value chain for potatoes by adding market value through improving quality, grading and shifting the timing of sales.

To initiate a small-scale agro-processing industry for a local product and to increase the profit of potato farmers.

Expected outputs The quality of potato production is improved (including packaging). Sales prices of potatoes are increased by improving the quality and shifting the timing of sales.

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Potato chips are produced and sold in the market by the processing group.

Topics to be verified Potato Production Impact of agricultural extension on agricultural productivity and quality of products. Impact of both product quality improvement and shifting of sales timing on prices of potatoes. Potato Processing Adoptability of farmers on small-scale business and village level agro-processing. Competitiveness of Bamyan potato chips in the market.

Activities Potato Production Organization of farmers’ group: 20 voluntary farmers who were found appropriate to participate

in the pilot project in terms of production, land ownership and shipment. Holding seminars on appropriate farming techniques (distance between furrows and planted

potatoes, timing for application of fertilizers, frequency of irrigation, knowledge on pests and diseases, grading, etc.), installation of demonstration farms, and distribution of technical manuals for potato cultivation (distributed to farmers of Monara CDC, PRRD, and DAIL of the provinces of Bamyan, Ghor and Daykundi).

Partial support for urea and DAP at the time of fertilizer application. Introduction of sorting and grading of harvested potatoes. Off-peak sales of potatoes (sales avoiding September) in Bamyan and to Kabul. Potato Processing Organization of a three-member processing group including an accountant. Establishment of a potato processing center equipped with a processing line with the capacity

for processing 100 kg of potatoes every 8 hours (peeler, slicer, water separator, fryer, oil separator, flavoring drum, packing machine). Installation of a small generator for the operation of the processing line.

Training for potato chip production (processing method, safety management for machine operation, maintenance of equipment), and subsequent production of potato chips.

Regular monitoring and technical guidance regarding skills for potato chip production by the implementation unit.

Introduction of a business plan. Sales of potato chips in Bamyan Center bazaar (A tasting campaign and trial sales were

conducted jointly by the farmers, DAIL staff and the SEARAP Study Team. After this, several shopkeepers agreed to sell the product when production resumes after the next harvest period).

Inputs Potato Production Partial support for procurement of agricultural input (in kind, urea and DAP) Renting of potato storage facilities Technical training for farmers of Monara CDC Potato Processing Construction of potato processing center Installation of equipment for potato chip production Technical training on quality, hygienic control and safety management

(2) Time Schedule

[Potato production and sales]1 1

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

1 1 1 1 1

1 1

[Processing]1 1 1 1 1 1 1 1 1 1 1 1

1 1 1 1 1 1 1 1

1 1 1 1 1 1 1 1 1 1

1 1 1 1 1 1 1 1

1 1 1 1 1 1 1 1 1 1 1 1 1Trial sales of potato chips

Sales of potatoes

Procurement and installation of equipment

Construction of processing facility

Training and trial production

Production of potato chips

Apr May Jun

Project preparation, formulation of farmer's groupProduction of potatoes

Feb MarItem

2012 2013

Sorting / grading of potatoes

Oct Nov Dec JanApr May Jun Jul Aug Sep

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(3) Result of Verification

【Potato Production】 The farming techniques introduced through the pilot project in 2012 are continuously

practiced by almost all participant farmers. However, regarding the amount of fertilizers, farmers could not input sufficient amounts due to lack of funds. Though shortage of funds still remains as an issue, the effectiveness of cultivation methods introduced through the pilot project have been duly understood by the farmers.

The productivity of potatoes increased considerably after the introduction of appropriate farming techniques (Table 2-1). Particularly, the yield from the demonstration plot was two and a half fold higher than the average of the year before (2011). The average increase of yield for individual farmers was around 26%. It was understood that agricultural extension activities have the potential to further increase productivity in the province.

Photo 2.1-1 On site training on preparation of furrows for sowing potatoes. Appropriate distance

between furrows will enable efficient irrigation and allow plants to sufficiently grow.

Photo 2.1-2 On-site training on irrigation techniques. Application of appropriate amounts of

irrigation water is crucial for improving the productivity and quality of potatoes.

【Potato Processing】 As a result of a series of training and technical guidance on potato chip production, the

quality of potato chips produced in the processing center has reached a level compatible with imported products while SEARAP Japanese team was present. After bringing product samples to some shopkeepers in Bamyan Center bazaar and discussing the whole sales price, the shopkeepers expressed their intensions towards selling the potato chips in their stores. However, there was no more stock of potatoes produced by the participant farmers in May 2013 and commercial sales of potato chips could not be started within the pilot project period.

Table 2-1 Changes in Potato Productivity

Year Place Average Potato

Production (Seir/Jerib)

2011 Munara CDC 465

2012 Munara CDC 586

Demonstration Plot 1,176 1 Seir = 7 kg, 1 Jerib = 0.2 ha

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Potato chips commonly found in the bazaar in Bamyan Center and in kiosks near schools. Most of the products are imported from neighboring countries such as Pakistan and Iran, while one brand made in Kabul was also available. According to interviews with shop keepers, the main customers purchasing potato chips are students and other young people. Potato chips with various flavors are merchandised in the bazaar, but masala flavor is said to be most popular. A sample survey to nine shops along the main road of the bazaar in Bamyan Center indicates that a daily average of around 20 packs is sold in each shop. Considering that there are more shops in other parts of the bazaar and that merchandise potato chips, and that there are also other shops outside of the bazaar, potato chips sold in Bamyan Center district alone could be projected to be around 300 – 400. In order to penetrate into the current market in Bamyan Center, the price of the products should be set at 10 Afs/pack of 25 g or cheaper, with compatible quality (crisp, with less oil) and masala flavor. On the other hand, sales amount and price of potato chips in the other districts of Bamyan could not be obtained in the pilot project.

Table 2-2 Major Imported Potato Chips sold in Bamyan Center*

Photo 2.1-3 Imported potato chips from Pakistan. This brand was most popularly sold in the bazaar in Bamyan Center. The products have good and stable quality both for chips and package. 10 Afs at retail.

Photo 2.1-4 Potato chips made in Kabul. The quality of chips were considerably good, but defects were

found in many of the packages. The product was found in only one of the sample shops that was surveyed.

No. Name of Product Content(g)

Country of origin Retail Price(Afs)

Packets sold permonth

(annual average)Shop name

10 Pakistan 5 86420 Pakistan 10 -40 Pakistan 30 1,500100 Pakistan 50 400200 Pakistan 100 400

Total number of packets sold per month 3,16430 Iran 15 1,40060 Iran 15 -

Total number of packets sold per month 1,40025 Iran 10 -50 Iran 20 360

Total number of packets sold per month 36075 Malaysia 40 4875 Malaysia 100 140160 Malaysia 120 60

Total number of packets sold per month 24850 Pakistan 20 130

Total number of packets sold per month 13028 Malaysia 80 30

Total number of packets sold per month 3048 Pakistan 20 30

Total number of packets sold per month 30Daily average per shop 20

1 Lays

Azgharyan - general store, Alamir - Generalstore, Resalat - General store, Sayed Azghargeneral store, Ansaf - Super store

Sayed Azghar general store2 Chetoz

4 Jaker

Maramuddin - General store, Ansaf - Superstore, Azgharyan - general store

Khan Ali - general store

Azgharyan - general store, Ramazan - generalstore

Resalat - General store

Khan Ali - general store

Mister potato chips6

Maz Maz3

Super Crisp7

Tata5

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Commercial sales of potato chips could not be started within the period of the small-scale pilot project, and thus financial feasibility of chips processing could not be assured within the pilot phase. A trial calculation for costs and benefit of potato chip production indicates that a daily sales of 283 packs per day (whole sale price 9 Afs/pack of 25 g) is required to maintain the required wage for three workers. This amount is equivalent to more than half or possibly most of the projected sales of potato chips in Bamyan Center (300-400 packs/day), and it is not practical to assume that the products can immediately dominate such share. Therefore, identification of new markets such as selling potato chips as snacks for children in school kiosks and as souvenirs at Bamyan airport is crucial to maintain profitability from potato chip production.

Table 2-3 Projected Financial Plan (Case of minimum sales to avoid deficit)

Projected Financial Plan (Afs/month） Expenditure Afs Raw material

63Afs/sier x 93.7 sier 5,903

Operation Cost 45,190 Wages

(Afs 3750 x 3 persons） 11,250

Others (transportation of products) 1,200 TOTAL 63,543 Revenue Sales of Chips

（Afs 9 x 283packs x 25 days/month） 63,675

TOTAL 63,675 Net Balance 132

Note: Breakdown of expected expenditure is provided in Annex-1 Business Plan for Potato Processing Center

Photo 2.1-5 Product produced in the processing center. Each pack contains 25 grams of potato chips with masala flavor. The products are expected to be sold at 10 Afs at

the bazaar

Photo 2.1-6 Production of potato chips. The processing group members were provided with work

cloths and nose masks to maintain a hygienic environment for potato chips production.

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【Impact on Livelihood】 Taking advantage of late harvest and available modern storage facilities in Bamyan,

off-peak shipping makes it possible for farmers to sell potatoes at a higher price as follows.

Table 2-4 Price Difference of Potatoes Sold with Different Timing Price

Year Sold at harvest peak Sold a off-peak harvest

(December) Storage method

2011 60 Afs./sier 60 Afs./sier Traditional storage 2012 58 Afs./sier 68 Afs./sier Improved modern storage

Photo 2.1-7 Potatoes stored in modern storage

facilities. Appropriate temperature and humidity in the advanced storage enables potatoes to be

preserved with better quality.

(4) Recommendations

Out of the farming techniques introduced through the pilot project, application of fertilizers was not adopted by all farmers. This is mainly because the ability of farmers to purchase fertilizers is influenced by their economic conditions. Promotion of appropriate application of fertilizers can be facilitated by utilization of low interest credit schemes provided through agricultural cooperatives and by reducing the price of agricultural input by group purchase.

Photo 2.1-8 Distribution of fertilizers to the

project participants. Half of the necessary amount of DAP and urea were distributed in kind to support the

participant farmers

Photo 2.1-9 On-site training for appropriate application of fertilizers. With lack of appropriate knowledge, farmers in the area are often found to

apply too much or too less fertilizers.

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Though interviews with middlemen indicate that there are market demands for good quality potatoes and that and that value can be added to potatoes through grading, middlemen who actually intended to purchase graded potatoes could not be found in local markets at the time of harvest. Therefore, the impact of grading could not be verified during the pilot project. It is further desired that efforts are continued for identifying and developing marketing routes of graded potatoes and products be sold at higher prices to markets in major cities and to middlemen handling products for export. In order to realize this, grading of potatoes corresponding to the needs of middlemen and stabilized quality and production will be a requirement. Such a state can be ensured by formulation of farmers’ organizations, which are expected to stabilize sales and add value to the products by enabling bulk sales of products, increasing bargaining power, and contracting large-scale clients.

(5) Actions Recommended for Future Sustainability of the Small-Scale Pilot Projects

Organizations to support the pilot projects and further actions recommended to assure sustainability of the pilot project activities were considered as follows.

【Organization in Charge】 PRRD/DAIL

【Recommended Actions】 Follow-up on processing group for re-starting the production of potato chips in October

(PRRD) Facilitating negotiation between the processing group and shopkeepers in the bazaar for

supplying potato chips (PRRD) Facilitating negotiation between the processing group and Bamyan Airport for supplying

potato chips (PRRD) Obtaining permission from the Department of Education to supply potato chips to kiosks

located in schools in Bamyan Center (PRRD) Examining possibilities to supply potato chips to shops in Kabul Airport (JICA) Regular monitoring on the activities of the processing group (PRRD) Supporting the processing group as required when problems occur (PRRD) Regular contact with PRRD to obtaining information on whether potato chip production is

adequately conducted (JICA)

Photo 2.1-10 Grading of potatoes. Potatoes were

graded on-site based on their size and quality. Guidance for grading was provided in a training

programme held before harvest.

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2.2 Dairy Product Improvement Project

(1) Outline

Livestock is the major source of income for 36% of settled farmers of Bamyan, and along with crop farming, formulates the foundation of socio-economic activities in the province. In addition, the majority of farm households rear livestock for self-consumption or as assets. Excess milk produced in the households is an important source of cash income as it is processed into dairy products such as yogurt, butter, buttermilk, qorot and chaka, which are sold at markets. Currently, milk processing in the province is carried out by individual households and the limited production and low quality of the products result in cheap sales prices. There is an extremely high demand to expand the market of dairy products.

Though various products can be produced from the same raw milk, products with comparative advantage are defined by factors such as the economy of scale and situation of market infrastructure including cold chains. Considering the scale of milk production and level of infrastructure in Bamyan Province, it is desirable that the marketed products can be processed on a small-scale and can be stored for a relatively long period without refrigeration. Therefore, this small-scale pilot project focuses on qorot and chaka as main merchandise and aims to expand the markets towards those in major cities such as Kabul. Qorot made in Bamyan is already well known in the country for its good quality and can be expected to be sold at high prices at various markets, once a brand image is formulated through improved packaging, product quality and hygiene control. This pilot project aimed at branding local dairy products by establishing a model dairy processing center in a village conventionally practicing dairy processing, by improving the quality and productivity of milk, and securing milk production during winter through the application of silage prepared from local fodder crops. As a result, significant potential has been found in the development of dairy products.

Target Group (Responsible person)

Livestock farmers’ group (Haji Abdul Gahfoor, CDC Head / Mohammad Ali, accountant)

Subsector Livestock

Project site Shahrah Qarghanato CDC, Qarghanato, Bamyan Center District


Nutrition Improvement for Livestock: From April 2012 to November 2012 Milk Processing: From May 2012 to May 2013


Nutrition Improvement for Livestock Livestock Farmers’ group: 15 households Dairy Processing Farmers’ group member: 16 persons

Aim of activities To contribute to an increase in farmers’ income by processing value-added products using milk in the village

To improve the productivity of milk by applying feed with appropriate nutrition

Expected outputs Surplus milk in farming households is effectively utilized for processing dairy products. The quality and packaging of dairy products (qorot, chaka and butter) are improved. The sales price of dairy products (qorot, chaka and butter) is increased though

improvement of the quality and packaging.

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Silage is produced by farmers, fed to livestock, and milk production is increased.

Topics to be verified Nutrition Improvement for Livestock Impact of nutrition improvement by the use of silage on the productivity of livestock Dairy Processing Possibility of appropriate quality control of dairy products by farmers’ group Impact of improving the quality and packaging of qorot, chaka and butter on sales prices

Activities Nutrition Improvement for Livestock Organization of farmers’ group: 15 voluntary farm households that were found

appropriate to participate in the pilot project in terms of livestock rearing practices. Holding seminars on preparation of stack-silos. Preparation of 14 stack-silos by

participant farmers with local fodder. Provision of technical guidance. Seminar on feed management including application of silage. Subsequent application of

silage prepared in stack-silos. Dairy Processing Organization of farmers’group: 17 voluntary farmers including accountants and female

workers. Establishment of dairy processing center supplied with equipment for production of

chaka, fresh butter and qorot (procurement of pots, separators, packing material, etc.). Training for hygiene control of dairy products. Production of chaka and fresh butter. Regular monitoring and technical guidance regarding skills for hygienic production of

chaka and fresh butter by the implementation unit. Study tour to observe a business model of advanced dairy processing practices. Introduction of a business plan. Sales of chaka and fresh butter in Bamyan Center bazaar (Trial sales were first conducted

as a joint effort of the participants, DAIL and the SEARAP Project Team. After this, the number of shops selling chaka and fresh butter increased).

Inputs Equipment for dairy processing (chaka, fresh butter, and qorot) Work space for group processing activities including a drying yard Packing material Technical training for participant farmers Local fodder for silage preparation Material for constructing stack-silos (plastic sheets)

(2) Time Schedule


【Nutrition Improvement for Livestock】 Initially, one stack-silo was prepared in a training seminar that was conducted under the

cooperation of specialists from FAO. Subsequently, a total of 14 stack-silos were prepared by the participant farmers. The results of an evaluation workshop held in November 2012

[Nutrition improvement for livestock]1 1 1 1 1 1 1 1

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

1 1 1 1 1 1 1

1 1 1 1 1 1 1 1 1 1[Dairy processing]

1 11 1 1 1

1 1 1 1 1 1 1 1 1 1 1 11 1 1 1 1 1 1 1

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 11 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Application of silage to animals

Apr May

Production of chaka and fresh butterSales of dairy products

Training to farmers and trial production

Installation of stack-silos

Project preparation, formulation of farmer's groupProcurement of equipmentInstallation of processing center and equipment

Oct Nov Dec Jan Feb Mar2012 2013

Item

Cultivation of fodder for silage

Preparation of silage

JunApr May Jun Jul Aug Sep

14

Highly Satisfied87%

Satisfied13%

Neither / unsatisfied / highly unsatisfied

0%

indicated that 77% of the participants did not find silage preparation to be difficult. From observations in May 2013 indicating that many of the farmers have started cultivation of fodder for silage preparation, it can be said that practice of silage preparation has been widely adopted by local farmers.

Photo 2.2-1 Training for the preparation of a

stack-silo. With appropriate attention on moisture contents and airtightness, the simple method can be

easily applied by local farmers.

Photo 2.2-2 Constructed stack-silo. The silo is covered with a plastic sheet to keep the material in an airtight environment. The silo is further covered

with clay for protection from animals.

With application of silage, a decrease in milk production and body weights of milk cows during the winter season was avoided to a certain extent. Thus, further improvement of the productivity can be expected with such practice.

Table 2-5 Impact of Silage on Milk Production

Date Type of Feed

Average Milk Production

2011 Sep Pasture 2 Liter Oct Dry Grass 1 Liter

2012 Sep Pasture 2 Liter Oct Silage 2 Liter

Photo 2.2-3 Application of silage. Feeding silage from autumn to winter resulted in better body weight

and milk production of cows and also kept them healthy during winter.

Reasons of Evaluation Highly Satisfied: milk cows have not become

weak cows are healthy and do not suffer diseases

Satisfied: The amount of milk is increased and the cows have not become thin

Figure 2-1 Evaluation of Silage Application by Farmers

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【Milk Processing and Sales Promotion】 Chaka and fresh butter were produced and sold in the pilot project because it was difficult

to produce qorot in winter due to weather conditions. The farmers’ group has continued the production of chaka and butter based on introduced techniques, measures for quality and hygiene control. Results of monitoring indicated that the processing center and equipment was cleaned every day and kept in a hygienic condition. The introduced techniques for quality and hygienic control have been adopted by the farmers’group and as a result, good quality dairy products have been stably maintained. Furthermore, it has been confirmed that the quality of dairy products can be improved through hygiene control during processing works.

Photo 2.2-4 Training to the women’s group.

Hands-on training was provided with particular aim to production of qorot, chaka and fresh butter, which

are the main products of the center.

Photo 2.2-5 Processing of dairy products. All equipment used are cleaned twice daily: before and after processing works. The products are processed

daily by local women.

The products indicated that the quality of dairy products was strongly favored by retailers

and customers. Selling prices of the products are still rising in the bazaar in Bamyan Center. If the quality can be kept at the current level, their market competitiveness is expected to be high. The products of the Qarghanato dairy processing center have become well known in the bazaar. Government officers such as those of PGO and DAIL frequently purchase and bring them as souvenirs when they go on official trips to Kabul. Moreover, people coming from Kabul were also seen searching the bazaar for the products as souvenirs. In order to expand the sales of the products to visitors to Bamyan, the processing center has recently started a delivery service to some hotels, by placing order forms that specify the required amount and date of delivery. If this system becomes successful, fresh chaka and butter can be supplied to people from Kabul and other provinces, which is expected to further increase the name value of products made by the Qarghanato dairy processing center. In addition, amounts of sales are expected to further increase if such systems are expanded to other hotels.

Though some time was necessary for chaka packed in improved packages to be familiarized in the market, the good quality and freshness of the product soon became recognized in connection with the unique package. As a result, the farm-gate price of chaka

16

has shown a gradual increase from 38 Afs/kg in October 2012 to 55 AFS/kg in May 2013. In general, chaka in the bazaar of Bamyan Center is stored in large plastic buckets and sold in plastic bags. Due to this sales method, shops selling chaka used to be somewhat limited. However, the number of shops handling chaka was easily increased by the introduction of chaka in airtight packages. Chaka and fresh butter have become better known in the bazaar in Bamyan Center, and currently, production is not keeping up with the demand.

Photo 2.2-6 Conventional package of qorot. Qorot is stored in plastic buckets and sold in plastic bags. Debris such as plants or hair is often found in

the products.

Photo 2.2-7 Improved package for chaka and fresh butter introduced through the project. The airtight

package prevents contamination of the products and keeps them hygienic.

Figure 2-2 Changes in Farm-Gate Price of Chaka

Breakdown of actual sales of chaka and butter during the pilot project period is indicated in the following figure (qorot could not be produced in this period due to cold weather). The total sales amount (top of the colored portion) once decreased in February due to low production of milk, and then gradually recovered in spring. The benefit from sales of dairy products (green portion) showed a deficient in December due to insufficient sales experience of the FG, but became constantly positive after the following measures were taken in January.

17

Merchandising of products was negotiated with shop keepers in Bamyan Center bazaar, and several shops agreed to handle them in their shops.

A villager of Shahara Qarghanato CDC started a small shop in Bamyan Center

bazaar that constantly sell the produced products.

Means of transportation of the products were determined by the FG members (paid

transportation by private transporters and by FG members)

As a result of the above, the accumulated balance (purple portion) showed a constant increase and has reached Afs 17,752 by the end of May.

Note: Breakdown of expected cost and sales are provided in Annex-2 Business Plan for Dairy Processing Center

Figure 2-3 Breakdown of Sales Amount of Dairy Products (Nov 2012 – May 2013)

A business plan was introduced to the farmers’ group aiming at the improvement of their

capacity in managing the dairy processing center and to enable them to further develop

their business through strategic production of dairy products based on market demands. As a result of regular monitoring and recording of income and expenditure, as well as amounts

of raw milk processed and sold based on the business plan, the farmers’ group has

gradually improved their management capacity. Regular meetings by the participant

farmers are held on a weekly basis and the account book is being recorded appropriately.

The accountant of the center keeps hold of the weekly balance of the processing center.

Based on the results of the mid-term evaluation workshop held on April 30, the participants and SEARAP recognized that participants have become able to autonomously manage the

operation of the processing center, including procurement of the packages and materials.

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13

Afs

Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13Balance 2,195 (1,835) 6,287 254 1,231 457 9,164

Wage 6,300 6,140 4,340 3,920 4,445 4,760 4,410

Cost (excluding wage) 29,035 19,795 17,421 13,287 15,600 21,143 21,491

Sales 37,529 24,100 28,048 17,460 21,006 26,360 35,065

Accumulated Balance 2,195 360 6,647 6,900 8,131 8,588 17,752

18

Photo 2.2-8 Exterior of the milk processing

center in Shahrah Qarghanato. The facility consists of three rooms and an outdoor drying yard.

Photo 2.2-9 Weekly and monthly meetings are held between participants to confirm the income

and expenditures of the processing center and discuss issues related to the processing center.

(4) Recommendations

The dairy products produced in Qarghanato dairy processing center have so far obtained a good reputation in the bazaar of Bamyan Center and it may be said that a branding strategy has been successful to some extent. The demand is exceeding the current production of the processing center, which is controlled by the limited amount of raw milk being collected, and with further development of market in Kabul, demand is expected to increase further. The processing center is designed with a capacity to process 350 liters of raw milk daily. By involving other villages in Qarghanato, production of dairy products can be further expanded, hence spreading the economic impact to the whole area.

Figure 2-4 Simplified Estimation of Profitability from Dairy Processing

It should be noted that the quality of dairy products are not only determined by measures taken during processing, but are also strongly influenced by the quality of raw milk. In order to expand the production of dairy products, collection of raw milk from other villages

0

20,000

40,000

60,000

80,000

100,000

120,000

0 50 100 150 200 250 300 350

Estim

ated

Mon

thly

Pro

fit(A

fs)

Amonut of Milk Processed （L/day)Note: Calculated with assumption that only chaka and butter are prepared.

Range of milk processed during pilot project period (Nov 2012 – May 2013

Maximum capacity of the facility

Potential for further expansion

19

will be indispensable. In such a case, due attention must be paid to control the hygienic conditions of raw milk collected.



【Organization in Charge】 DAIL

The livestock advisor from DAIL highly appreciates the results of the pilot project. Thus, it is assumed that DAIL will have no objection in taking over the project.

【Recommended Actions】 Provision of technical guidance in silage preparation (Department of Livestock, DAIL: Eng.

Sayed Sada) This issue was confirmed with Eng. Sayed Sada in a regular meeting with CDC members. As a consensus is already formed, it is likely to be carried out without any problem.

Regular monitoring on dairy processing activities (Department of Livestock, DAIL) Supporting the farmers’ group as required when problems occur (Department of Livestock,

DAIL)

2.3 Village Naan-Baking Service Project

(1) Outline

Adding value to products through introducing agro-processing is considered one of the key agendas of the Promotion Plan for Rural Economic Activation in Bamyan Province. Introduction of new practices will require additional workload for the farm households. Considering the present situation of the roles of family members in the households, there are concerns that the promotion of in-house agro-processing would increase the labor load, especially for women. Villagers are already busy with farming, grazing animals, going to town to shop, Hashar, housework, etc. Introduction of new activities for economic activation will also require additional measures to decrease the current workload of farmers and generate spare time. Group activities, such as aggregation of works for naan-baking, which is a daily activity for rural women, can be one of the approaches. Implementation of this small-scale pilot project is expected to generate around two hours of spare time for each household.

In Bamyan Province, many of the activities for agro-processing are expected to be done by women. This small-scale pilot project has been carried out under the assumption that the spare time generated will be used for economic activities such as grading of potatoes and dairy processing. The pilot project was also expected to form a model for income generation for rural women.

20

However, commercial operation of a naan-baking center by women’s groups was not attained during the pilot project period and economic activities utilizing the spare time generated by the operation of the center could not be observed. Under this situation, the direct contribution of the project to socio-economic activation could not be verified.

Target Group Voluntary women’s group (Mr. Haji Ibrahim, CDC Head)

Subsector Small-scale business

Project site Badanbagh Cluster of Surkhdar CDC, Bamyan Center district


From April 2012 to May 2013


Voluntary women’s group: 12 persons The service user: 58 households

Aim of activities Initiating a small-scale business in the village Saving the time needed for housework by women in order to promote their participation

in economic activities in the village The following indirect impacts are also expected by implementing this pilot project: Firewood consumption is reduced in the village. Health effects on women from smoke are reduced.

Expected outputs A small-scale women’s group starts providing a naan-baking service Village households use the baking service. The total working hours of women for housework are reduced.

Topics to be verified Possibility of introducing small business to village women. Impact of sales profits of the naan-baking business on income. Impact of naan-baking service on reducing the time that women do housework and

participating in alternative income-generating activities.

Activities Workshop for confirming needs among local women for naan-baking services. Formulation of women’s group for operating the naan-baking center: 6 voluntary women

each for two centers, including accountants. Construction of naan-baking center. Training for operation of oven in the naan-baking center and starting of naan-baking

services. Study tour to another naan-baking project to observe its business model and state of

operation. Introduction of a business plan. Regular monitoring and technical guidance regarding naan-baking services by the

implementation unit.

Inputs Construction (Badambagh) and renovation (Geroo) of village naan-baking center. Installation of oven for naan-baking and other related material. Technical guidance by social organizers (training on naan-baking, group activities,

operation of small-businesses, etc.).

(2) Time Schedule

1 1 1 1 1 11 1 1 1

1 1 1 11 1 1 1 1

1 1 1 1 1 1 1 1

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 : Closure due to winter

Dec Jan Feb MarApr May Jun Jul Aug

Provision of naan-baking services

Construction / renovation of baking centerTraining of women's group / trial operation

AprSepItem

2012 2013May Jun

Project preparation / village needs surveyFormulation of women's groupProcurement of equipment

Oct Nov

21


Obstacles for commercial operation of the naan-baking center Multiple obstacles were found hampering the active operation of the naan-baking center: villagers did not want to pay cash in exchange for naan-baking services at the initial stage of the pilot-projectdespite their initial wish to install such service, there was difficulty in access due to the remote location of the naan-baking centers, naan-baking services did not generate spare time in winter because villagers had to light their ovens for heating, etc. The naan-baking center started to become recognized by the villages after promotion of the center through a free trial period, but because winter was approaching, the economic impact of the pilot project could not be verified.

Obstacles for participation of women’s groups in economic activitiesThe naan-baking group was formulated only by women with the assumption that all activities including naan-baking, accounting and business management would be done by them.However, this could not be realized to the full extent because the participants could not carry out heavy labor such as carrying coal, and their families were not supportive of them startingwork in the early morning. Due to such obstacles, the viability of the pilot-project as a business model for rural women could not be verified.

Photo 2.3-1 Operation of the naan-baking center. The structure of the oven is different from traditional ones in order to bake large numbers of naans per day.

Photo 2.3-2 Operation of the naan-baking center. The farmer’s group members received a series of

trainings on naan-baking to improve the quality of naans baked in the center.

Reduction of time required for houseworkA questionnaire survey to the village women indicated that the use of naan-baking service benefitted the households by reducing the time necessary for collecting firewood and the

Figure 2-5 Changes in the Number of Users

22

1 hr1%

2 hrs84%

3 hrs15%

amount of firewood consumption. Around 84% of the households indicated that utilization of the service generated around two hours of spare time every day, while 15% indicated that they saved around three hours. However, the spare time generated was not utilized for economic activities but allocated for other housework. Though women in this area have experience in participating in economic activities such as embroidery under the support of NGOs, they did not carry out such activities due to lack of funds for purchasing raw material and difficulty in accessing markets to sell their products.

With understanding of family members as well as the high motivation of the woman herself, such spare time can be utilized to participate in socio-economic activities.

Alternative arrange for continuation of naan-baking center operation Taking into consideration the above issues, the CDC has decided that the operation of the naan-baking center in Badambagh will be continued but run by a male selected by the villagers. A trustworthy individual was selected by the CDC in May 2013 and the naan-baking center is now operating successfully with orders of around 450 pieces of naan per day. The support of a male member was deemed necessary as a realistic response to the concerns of the community members that the center could not be operated solely by the women’s group. Currently, the naans are baked at the price of 3 Afs / piece, and the baking center is raising a profit of around 11,400 Afs / month (including labor cost). Trial calculation based on actual cost items indicates that the center needs to bake at least 324 naans / day in order to avoid deficit balance.

Figure 2-6 Spare Time Generated by Using Naan-Baking Services

No. of Respondents: 80 persons

23

Table 2-6 Balance of Badanbagh Naan-Baking Center (calculated based on sales in July 2013)

Daily Qtt Unit Price(Afs) Daily(Afs) Monthly(Afs) Cost Wood 10 Siers 90 900 27,000

Turepentine Oil 1 Bottle 70 70 2,100 Total 970 29,100

Income Naan 450 pieces 3 1,350 40,500 Balance (including wage of one laborer) 380 11,400



【Organization in Charge】 PRRD According to PRRD, the project will be taken over without any problem.

【Recommended Actions】 Regular monitoring on activities of the naan-baking center (PRRD) Supporting the naan-baking center as required when problems occur (PRRD)

3. Lessons Learned and Suggestions for Economic Activation in Bamyan Province

3.1 Fostering Enterprises Specialized in Processing and Sales of Agricultural Products

Besides promoting agro-processing activities by farmers’ groups, it is essential that local enterprises specialized in processing and sales of agricultural products are fostered to activate the local economy. Products such as locally made potato chips have to compete with imported products, even in remote provinces, and thus require high quality. In order to produce such products, part-time production by small farmers’ groups during off-seasons may not be sufficient. Therefore, establishment of specialized enterprises or attracting companies from outside the province should be considered to produce chips with strong competitiveness. At the same time, it is desirable that measures to protect domestic industries shall be adopted, such as levying tariffs on imported products.

On the other hand, Bamyan Province is well known in the country as a production area of potatoes. Taking advantage of this fact, value can also be added to raw potatoes by promoting the formulation of farmers’ groups and providing extension services in order to realize stable production with improved quality, appropriate storage for off-peak sales and improvement of packing.

24

3.2 Branding and Expanding Sales of Dairy Products made in Bamyan

Taking into consideration that a “Bamyan Brand” for dairy products is already gradually becoming recognized in the market, and that demands for the products are high not only in the province, but also for tourists visiting the area, high priority should be attached to the investment for strengthening the production capacity of the Qarghanato dairy processing center. This production should be increased by involving nearby villages in securing necessary amounts of raw milk. Economic impact can be further spread to other areas of the province by expanding the model applied in Qarghanato to areas with economic activities centered on livestock production. In this regard, it is desirable that provincial government agencies as well as line ministries at the central level provide continuous support for promotion of dairy processing. From the mid- to long-term prospective, if a cold chain is established between Bamyan and Kabul, dairy products of Bamyan may have the potential to replace imported products such as Nestlé yoghurt and Haleeb yoghurt, as a domestic brand.

3.3 Necessity for Raising Villager’s Awareness for Women’s Engagement in Economic Activities

The Village Naan-Baking Service Project focused on reducing time consumed for women’s housework, particularly for baking naan, based on an assumption that spare time generated can be allocated for new economic activities. The project was formulated taking into consideration local intentions and was highly appraised by the counterparts and the CDC at the beginning of the project, as it was expected to generate income opportunities for local women. However, sustainable operation of naan-baking centers by women could not be realized due to obstacles including the location of baking centers and the social environment surrounding women. Furthermore, the findings obtained through the project indicated that generation of spare time through usage of naan-baking services does not automatically lead to the engagement of local women in non-farm economic activities. One of the major reasons for this was found to be the reluctance of villagers against women engaging in economic activities, and as a result, not many villagers used the naan-baking services. Currently, the center is being operated by a male baker who is contracted by the CDC, and bakes around 450 pieces of naan daily to fill orders from villagers. The fact that the center is operating without problems supports the observation that the difficulties of the pilot project were mainly due to the villager’s awareness regarding women’s participation, rather than the contents of the project itself. Under such a social environment, the pilot-project was not able to attain its expected targets, and though some of the village women obtained spare time by using the naan-baking service, they were not able to engage in new non-farm economic activities. In planning women’s engagement in new non-farm economic activities in the future, awareness-raising for villagers on engagement of village women in economic activities at the initial stage will be essential.

A1 - 1

Annex 1 Business Plan for Potato Processing Center / Qala Nau, Munara Village

A1.1 Brief Description A potato production and processing project has been implemented in Qala Nau, Munara Village, Bamyan Center, Bamyan Province, under SEARAP.

This business plan is for a Potato Processing Center operated by a group of farmers in order to produce potato chips from raw potato and sell to the market in improved packages.

The Potato Processing Center has started its initial operation from December 2012. In the process of works, some parts of the Business Plan, such as production cost, unit volume of production and sales price were modified reflecting realistic figures of cost and benefit.

This Business Plan is a revised version at the end of the Pilot Project in June 2013.

A1.2 Management Plan

(1) Objectives of the Potato Processing Center

- To demonstrate the effect of group activities for processing of agricultural products and value adding.

- To contribute to an increase in income of the PG members by processing value added products.

- To further contribute to the economic development of Munara CDC, through creating opportunities for potato sales at higher prices in the future.

(2) Organizational Arrangement

1) Processing Group Processing Group (PG) shall consist of 3 farmers directly involved in the operation and management of the Center, The PG Members shall be responsible for:

- Operation / maintenance of the facility and equipment of the Processing Center

- Procurement of raw potato and other necessary material

- Production and sales of potato chips

- Maintaining the cash account

A1 - 2

- Allocation of income generated from the sales of potato chips

- Other works necessary to maintain appropriate operation of the Processing Center

All decisions for the PG shall be made for the mutual benefit of all PG members. However, in order to facilitate smooth decision making and to avoid disputes among PG members, a leader and accountant shall be selected among the PG members. The leader and accountant shall be responsible in taking necessary action, under the consensus of the PG members, to manage the operation / maintenance of the facilities of the Potato Processing Center as well as the cash account.

2) Ownership The ownership of the equipment and facility procured for the potato production and processing project under the SEARAP as well as the equipment, material and other goods procured by the PG, shall belong to the CDC of Munara. The CDC cannot sell, rent, mortgage, or use for purposes other than that for the potato production and processing without the consensus of the PG and PRRD and prior consent of JICA.

3) Roles and Responsibilities of Munara CDC Monitor the activities and cash accounts of the PG through reviewing

documents and participating in regular meetings, and confirm transparency within the PG

Provide necessary support (liaison with government organizations, facilitating meetings with villagers, etc.) based on requests of the PG.

Arbitrate disputes among PG members that cannot be solved by the PG Leader

Take measures to keep the business of the Potato Processing Center operating after the end of the Pilot Project Period.

The CDC cannot dispel any PG member at its own. The decision will be taken in concurrence with all PG members.

Since piece of land donated for the project has become public property after fulfilling official requirements, CDC must ensure to maintain this land as for the use of the Potato Processing Center.

A1.3 Financial Plan

(1) Business Concept

The business flow of the Potato Processing Center is illustrated as follows; a) Procuring of raw potato for processing

The PG will collect raw potato every week from PG members. The payment

A1 - 3

for this will be made at the end of next month, after sales of potato chips for the month is completed. If the processing center can process and sell more potato than the PG member can provide, potato can also be purchased from other farmers of the CDC.

b) Procurement of other necessary material for processing The PG will purchase necessary material for processing such as oil and fuel. Up to the end of March 2013, this cost shall be provided by the SEARAP project team.

c) Processing and sales of potato chips The PG will process potatoes into chips and sell them to the local market. When needs for chips are increased in the future, the PG will also negotiate with traders of major markets to expand their sales.

d) Allocation of sales profit Allocation of cash obtained from sales of potato chips shall be done at the end of every month in the following order i) Payment for raw potato to PG members / farmers

Payment for the raw potato that was used for processing potato chips shall be first allocated to the PG members (and farmers) according to the provided amount.

ii) Saving procurement cost of other necessary material for next processing

The cost required for the next month shall be withheld from the balance after the payment for the raw material, and be kept within the account of the Processing Center.

iii) Saving recurrent cost for regular / irregular maintenance of facility and equipment

A certain amount from the remaining amount shall also be withheld from the balance for regular / irregular maintenance fee.

iv) Distribution of benefit among workers in processing facility

Finally, the remaining amount shall be distributed to the PG members who worked for the processing of potatoes. This amount shall be provided on a working day basis.

(2) Cost Benefit Analysis

In order to generate benefit by the operation of the Potato Processing Center, the following trial calculation has been made based on estimated figures.

A1 - 4

a) Production capacity of the Potato Processing Center The trial calculation has been made with the estimated capacity of the Processing Center being 28kg / day (4kg/hour, 7 hours/day). Based on this amount, the potato chips that will be produced is estimated to be 7,550gr/day (7.5kg/day). Taking into regard that the potato chips will be sold in 25gr packages, the daily production of potato chips is estimated to be 302 packets. Thus, with the operation of the Potato Processing Center being 25 days per month, the monthly production is estimated to be 7,550 packets.

b) Costs for potato processing The monthly cost required for the processing of potatoes are as follows:

c) Income by sales of potato chips The market price of the potato chips is tentatively set at 10Afs/pack. Taking into regard a Afs 1/pack margin for the retailer, the wholesale price of one pack of potato chips shall be Afs9.

With a monthly production of 7,550 packets, the total revenue from the sales of potato chips will be Afs 67,950.

d) Balance of Potato Processing Center (Projected Estimate) The balance of Potato Processing are calculated as follows.

Qtt. /day Cost/DayQtt. /Month

(25days)Cost/Month

(25days)Remark

Raw potato 9 /kg 28.0 252 700.0 6,300 AFs63/seirCooking oil 94 /Kg 4.0 376 100.0 9,400 Packet of oil (16L): 1000AfsRenewal Oil 94 /Kg - - 96.0 9,024 Once per 10daysFuel 65 /liter 5.1 332 127.5 8,288Natural Gas 65 /kg 4.7 306 117.5 7,638Nitrogen gas 0.60 /Pc 318 191 7,937.5 4,763 2.5kg/bottle is 1000Afs, 1g/Pc

Salt 10 /kg 0.3 3 7.5 75

Packing film 1.0 /Pc 302 302 7,555.0 7,5558roll (22kg/roll) is 2200USD2.5g/pack

Loss Packing film 1.0 /Pc 30 30 755.0 755 Assuming 10% lossSoap 30 /bar 0 4.0 120Salary 150 /day 3 75.0 11,250 3750/personTransportation(to Bamy 50 /time 1 50 25.0 1,250

1,841 66,417

Unit price(Afs)

Exp

endi

ture

Sum

A1 - 5

Balance of Potato ProcessingItem Amount Remarks

1. Revenue from sales 67,950 Afs When 7,550 packets are sold2. Payment for raw potato 6,300 Afs Purchase price: Afs 63/sier3. Cost for processing 48,867 Afs Cost to be kept for next month4. Wage for potato processing 11,250 Afs 3750Afs per person5. Balance 1,534 Afs To be kept for recurrent cost

* In this calculation, wage for potato processing has been distributed equally. However, this shall be changed based on the time of which each member worked.

Cost Benefit Analysis for Potato Processing

(3) Detailed Operational Procedures

2 members consisting of a leader and an accountant would work permanently in the processing center. This ensures smooth functioning of the process. The roles and responsibilities are as follows:

1) Leader Represent the PG when making liaison with external organizations and

individuals. Organize and facilitate meetings with PG members for decision making in

regard to the Potato Processing Center. Provide final approval for issues decided in meetings with PG members

regarding the Potato Processing Center. Provide approval for monthly payment of wage for PG members.

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Make final decisions, taking into regard the intensions of all PG members, when it is difficult for all PG members to reach consensus on issues relating to the Potato Processing Center.

Within his / her capacity, solve any possible disputes among PG members. Check and provide approval to documents prepared by the Accountant. Monitor the physical / financial situation of the Potato Processing Center and

to inform all PG members. Take necessary action to maintain appropriate operation and management of

the Potato Processing Center. Others

2) Accountant Record the amount of equipment and consumables Record the quantity of potato brought to the Potato Processing Center Record the quantity of potato chips processed in the Potato Processing Center Record the amount, price and buyer of the potato chips sold. Calculate the amount of wage to be paid to each PG member. Record and manage income and expenditure account of PG activities. Under a written consent of the Leader, take over his / her roles and

responsibilities in times of his / her absence.

(4) The Working Method

Working Hours and Step by Step Procedure: Working day: Saturday to Thursday Holiday: Friday and holiday. 1. Work starts from 7:30AM where the facility and equipment is cleaned

before operation. Processing is done from 8:00AM to 12:00PM and then from 1:00PM to 4:00PM. PG members will bring their potatoes to the processing center, weigh them and use them. If required, temporarily store in processing center until utilized within a week. Since these potatoes are used for making chips therefore sorting / grading of potatoes are necessary. Large undamaged potatoes will be used for making chips. The process for potato chips production are as follows:

2. Water Tank. Each PG member will wash and rinse his potatoes in buckets.

3. Peeler. After potatoes are washed and cleaned, their skin is peeled off in the peeler for 15 seconds.

4. The peeled potato shall be checked, and if any remaining skin or buds, this shall be removed by knife.

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5. Slicer Machine. Slicer machine will be used for cutting potatoes into thin slices.

6. Washing. Sliced potatoes will be thoroughly rinsed in water pans. The water should be changed for one time in order to remove excess starch.

7. Water Separator. Prepared slices will be dried in a water separator after sliced potatoes are kept in water.

8. Fryer. Prepared slices are fried in frying machine.

9. Oil Separator. Oil separator is used after potatoes are fried.

10. Product Tray. The fried chips shall be then checked before putting them into the flavoring machine. Scorched chips as well as irregular shapes will be excluded from the products.

11. Flavor Machine. Necessary flavor / spices are added through flavor machine.

12. Measurement. Flavored chips are measured 25g and put it into the product conveyor.

13. Automatic Packing Machine. Measured quantity of chips shall be packed in each packet.

14. After checking the packed condition, The packets will be put into cabinet

(5) Accounting and Book Keeping

PG will maintain three registers: Asset registers Expenditure register Income register

1) Asset register Record of all equipment and consumables provided and installed by the JICA-SEARAP Project team until end of June and afterwards by working members themselves when so ever needed will be kept in an Asset register. Separate records should be kept for durable goods (such as processing machinery, generator, etc.) and consumables (packing material, oil, gas, etc.)

2) Expenditure register Record of cost for purchasing cooking oil, fuel, packing materials, transportation etc., and profit paid to each PG member after their potatoes are sold will be kept in an Expenditure register.

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3) Income register Record of daily income from selling prepared chips will be kept in an Income register. Maintenance and update of these registers is the responsibility of the accountant. The accountant will be stationed in the Potato Processing Center on a permanent basis and will maintain registers, records, cash money, and available materials being used daily or stored. His sole responsibility is to vividly record expenditure / income for each of the PG members.

A1.4 Procedure of Decision Making of PG

(1) Regular Meeting

Date & Time: Thursday every week, 4:00PM to 5:00PM Venue: Community hall, Qala Nau To be held weekly All PG members will attend the meeting Discuss the expenditure and income accounts and related issues Record of registers will be verified and signed by Team Leader and will

be explained to the PG members. Any difficulties, marketing problems and related issues shall be

discussed and solved. If necessary, cases like disputes among PG members may be referred

to CDC for resolution in the general meeting.

(2) General Meeting

Date & Time: Last Date of every month, 4:00PM to 5:00PM Venue: Community hall, Qala Nau To be held monthly PG members, CDC Head / members will attend the meeting PG members to explain their activities, details of account books,

income and expenditure, etc., to the CDC PG will inform the CDC about their internal / external problems. CDC must confirm transparency of the activities and accounting matters. CDC must solve problems among PG members. These measures are

mandatory for smooth implementation of the service. CDC ensures positive response to legitimate requests by PG members. Decision on all administrative issues such as replacement of any

member unwilling or not able to continue his work. If a member has to depart before waiting for last Friday of the month, an, urgent general meeting will be held for provision of an alternate. CDC will overcome the issue as soon as possible.

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Annex 2 Business Plan for Dairy Processing Center / Shahra Qarghanato Village

A2.1. Brief Description

A Dairy Product Improvement Project has been implemented in Shahra Qarghanato village, Bamyan Center, Bamyan Province, operated by a group of farmers in order to produce qorot, chaka and butter under hygienic condition and to sell them at the market in improved packages.

Qorot produced in Bamyan province has a reputation for its good quality and is already traded at a rather high price. The possibility of further increase of sales price in the market has been verified by increasing quality through improving the production process and sanitary control as well as improving packaging of the product.

The Dairy Processing Center has been operated from September 2012. In the process of works, some parts of the business plan, such as volume of processed milk, unit volume of production and sales price were modified based on the updated information. This Business Plan is a revised version.

A2.2. Management Plan

(1) Objectives of the Dairy Processing Center

To contribute to an increase in farm income by processing value added products from milk in the village

To demonstrate the effect of hygienic quality control and appropriate packing on sales price of qorot, chaka and butter, and where necessary, to provide technical knowledge to the villagers of Shahra Qarghanato village

To contribute to the economic development of Shahra Qarghanato Village through the items described above


1) Farmers’ Group

Fifteen farm households have been nominated as Farmer’s Group (FG) by the Shahra Qarghanato CDC before the establishment of the Dairy Product Processing Center. It was confirmed that these households would carry out the activities of the Dairy Processing Center up to the end of June 2013, with one female member from each household engaged in processing works (male members are mainly engaged in silage production and sales of the products), and villagers of Shahra Qarghanato would cooperate with the FG.

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If any member has to leave his/her work, his/her substitute will be decided by CDC and other FG members in general meeting, with the consent of PRRD.

Changes in members of the FG after July 2013 can be made with due consensus of all FG members and CDC.

2) Executive Board of FG

All decisions for the FG shall be made for the mutual benefit of all FG members. However, in order to facilitate smooth decision making and to avoid disputes among FG members, an Executive Board shall be selected among the FG members. The Executive Board shall consist of 1) Leader, 2) Assistant Leader, 3) Clerical Assistant and 4) Accountant. The Executive Board shall be responsible in taking necessary actions, under the consensus of the FG Members, to manage the operation / maintenance of the facilities of the Dairy Processing Center as well as the cash account.

(3) Roles and Responsibilities of CDC

The Roles and Responsibilities of the Shahra Qarghanato CDC are:

Monitor the activities and cash accounts of the FG through reviewing documents and participating in regular meetings, and confirm transparency within the FG

Provide necessary support (liaison with government organizations, facilitating meetings with villagers, etc.) among request of the FG, but not directly interfering in financial matters (e.g. taking control of financial activities, utilizing cash balance of Dairy processing center for personal use etc.)

Arbitrate disputes among FG members that cannot be solved by the FG Leader

Take measures to keep the business of the Dairy Processing Center operating after July 2013.

The CDC cannot dispel any working member at its own. The decision will be taken in concurrence with all FG members.

(4) Ownership

The ownership of the installed equipment and facility procured by SEARAP, as well as the equipment, material and other goods procured by the FG, shall belong to the CDC of Shahra Qarghanato. The CDC cannot sell, rent, mortgage, or use for purposes other than that for Dairy production process services without the consensus of the FG and PRRD and the prior consent of JICA Afghanistan.

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A2.3. Financial Plan

(1) Business Concept

The activities of the Dairy Processing Center is set up as a model to generate benefit by adding value to raw-milk and to sell them to local and domestic markets.

Qorot and chaka, of which those from Bamyan province already has a good reputation, will be the main item to be produced. Butter is produced in the process of chaka and qorot production. These items are selected because of relative easiness of hygienic management, and because there will be less risk in loss compared to other dairy products, which have shorter shelf lives.

Collective production of dairy products with the Dairy Processing Center with hygienic control will enable stable production of hygienic qorot, chaka and butter in larger batches than those currently processed in homesteads. This is expected to increase bargaining power of the products and will hopefully lead to higher selling prices and sales amount.

After the FG members obtain considerable experience in dairy processing and sales with the use of the Dairy Processing Center, processing and sales of other products in better conditions, such as yogurt, can also be considered.

(2) Cost Benefit Analysis

1) Cost Benefit Analysis based on Season and Production Amount

Productivity of milk varies between seasons mainly due to availability of feed with sufficient nutrients influencing the amount of produced dairy products. The estimated lowest amount of raw milk to be processed in the Dairy Processing Center is 80 liters per day during summer1. From this amount, an estimated 4.1kg (0.58 sier) of qorot or 25.9 kg (3.7 sier) of chaka and 3.68 kg (0.53 seir) of butter can be produced2. However, the amount of milk may drop to 30 litters during winter3, which will result in 1.5 kg (0.22 sier) of qorot or 9.7 kg (1.39 sier) of chaka and 1.4 kg (0.20 seir) of butter. In order to estimate the annual production, it is necessary to analyze the actual amount of milk collected by the farmers. However, this information could not be obtained within the period of this small-scale pilot project.

Seasonal conditions also influence processing activities. While, qorot cannot be produced in mid-winter because the temperature is too low for the products to dry, it is suitable for production in summer because of it has a longer shelf life than

1 Based on the actual processed amount in 2012. 2 Based on field tests on production per unit volume of raw milk conducted in December 2012. 3 As of November December 2012

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chaka, which is easily deteriorated when stored in warm places. However, the market demand for qorot during summer has not been verified within the project period and actual ratio of the produced chaka and qorot could not be determined during the project period.

Taking into consideration the above limitations, cost benefit analysis has been done for the following two patterns:

Production in summer

Amount of processed milk: 80 liters per day / 2,400 liters per month

Processed products: half of the milk processed into chaka and the remaining half into qorot

Production in winter

Amount of processed milk: 30 liters per day / 900 liters per month

Processed products: all of the milk processed into chaka

Expected benefit from processing activities is indicated in the figures below, while detail breakdown of income and expenditure for the expected minimum production of dairy products follows.

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Cost Benefit Analysis for Production in Summer (production of qorot and chaka)

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Cost Benefit Analysis for Production in Winter (production of chaka)

2) Breakdown of Expenditures and Income at Minimum Production

Summer Season

The estimated amount of monthly expenditure during summer is indicated below. Unit price and total may vary owing to present market rates of Bamyan. The amount of milk processed is set at the minimum expected amount (80 liters / day), and the net balance is expected to increase if larger quantities of milk are processed.

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Monthly Expenditure and Income for Dairy Processing Center (Summer)

Unit Price (Afs) Quantity Required / Month Total (Afs)

Expe

nditu

re

Raw Milk 10 /litter 2,400 /litter 24,000 Wood(for boiling milk) 90 /siers 90 /siers 8,100 Cloth bag for butter milk 120 /bags 10 /bags 1,200 Wood(for boiling chaka) 90 /siers 30 /siers 2,700 Cloth bag for chaka 120 /bags 4 /bags 480 Carton for chaka 20 /cartons 32 /cartons 640 Bottle for chaka 8 /bottles 389 /bottles 3,110 Carton for butter 20 /cartons 46 /cartons 920 Bottle for butter 4 /bottles 1,104 /bottles 4,416 Carton for qorot 48 /cartons 17 /cartons 816 Salt 13 /kg 54 /kg 702 Gloves 15 /pairs 20 /pairs 300 Dish washing liquid 50 /bottles 2 /bottles 100 Soap 30 /bars 4 /bars 120 Safety nose mask 10 /sets 20 /sets 200 Transportation(10Afs/sier) 10 /siers 80.1 /siers 801 Wage 1,050 /persons 6 /persons 6,300 Total Expenditure 54,905

Unit Price (Afs) Quantity Sold / Month Total (Afs)

Inco

me Chaka 55 /kg 389 /kg 21,384

Qorot 171 /kg 61 /kg 10,465 Butter 41 /100g 101.4 /kg 45,264 Total Income 77,113

Bala

nce Total Expenditure 54,905

Total Income 77,113

Balance 22,208 Further details indicated in Appendix “A” 50% of raw milk will be processed into qorot and the remaining will be processed into chaka

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Winter Season

The estimated amount of monthly expenditure during winter is indicated below. The amount of milk processed is set at the minimum expected amount (30 liters / day), and the net balance is expected to increase if larger quantities of milk are processed.

Daily Expenditure and income for Dairy Processing Center (Winter)

Unit Price (Afs) Quantity Required / Month Total (Afs)

Expe

nditu

re

Raw milk 10 /litters 900 /litters 9,000 Wood(for boiling milk) 90 /siers 60 /siers 5,700 Cloth bag for butter milk 120 /bags 8 /bags 960 Wood(for boiling chaka) 90 /siers 0 /siers 0 Cloth bag for chaka 120 /bags 0 /bags 0 Carton for chaka 20 /cartons 24 /cartons 480 Bottle for chaka 8 /bottles 292 /bottles 2,333 Carton for butter 20 /cartons 17 /cartons 340 Bottle for butter 4 /bottles 414 /bottles 1,656 Carton for qorot 48 /cartons 0 /cartons 0 Salt 13 /kg 0 /kg 0 Gloves 15 /pairs 12 /pairs 180 Dish washing liquid 50 /bottles 1 /bottles 50 Soap 30 /bars 4 /bars 120 Safety nose mask 10 /sets 12 /sets 120 Transportation(10Afs/sier) 10 /siers 47.6 /siers 476 Wage 1,050 /persons 4 /persons 4,200 Total Expenditure 25,615

Inco

me Chaka 55 /kg 292 /kg 16,038

Qorot 171 /kg 0 /kg 0 Butter 41 /100g 41.4 /kg 16,974 Total Income 33,012

Bala

nce

Total Expenditure 25,615 Total Income 33,012 Balance 7,397

Further details indicated in Appendix “A” All raw milk will be processed into chaka

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A2.4. Detailed Operational Procedures

(1) Formation of Female members for Processing Works

• The 15 female members of the FG will be divided into three groups or five groups depending on the season.

• The three or five groups will work in rotation, with a one week work period for each group

• In case of emergency works, illness or urgent situations, working member would either provide his/her substitute or request another member to work instead of him/her.

(2) Roles and Responsibilities of the Executive Board

The roles and responsibilities of the individual Executive Board members are as follows:

1) Leader

Represent the FG when making liaison with external organizations and individuals.

Organize and facilitate meetings with FG members for decision making in regard to the Dairy Processing Center

Provide final approval for issues decided in meetings with FG members regarding the Milk Processing Center

Provide approval for monthly payment of wage for FG members and amount of cost for each member in exchange with the milk brought to the Dairy processing center.

Make final decisions, taking into regard the intensions of all FG members, when it is difficult for all FG members to reach consensus on issues relating to the Dairy Processing Center.

Within his / her capacity, solve any possible disputes among FG members. Check and provide approval to documents prepared by the Clerical Assistant. Monitor the physical / financial situation of the Dairy Processing Center and to

inform all FG members. Take necessary action to maintain appropriate operation of the Dairy

Processing Center. Take necessary action to maintain appropriate management of the Dairy

Processing Center. Others

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2) Assistant Leader

Assist the Leader to perform his roles and responsibilities under the consent of the Leader, take over his/her roles and responsibilities in times of his / her absence

Others

3) Clerical Assistant

Record contents and decisions made in meetings of the FG in the form of minutes of meetings

Take Record of Group Activities in monitoring forms Record the Quantity of the Raw material of Silage and Daily Distribution of

silage to Farmers Group. Others

4) Accountant

Record the number of Kitchen Equipment Record the quantity of Milk brought to the Dairy Processing Center by each

member of the Farmer’s Group Record the quantity of dairy products processed in the Dairy Processing

Center Record the amount, price and buyer of the dairy products sold. Calculate the amount of wage to be paid to each FG member and cost for raw

milk according to the amount brought to the Dairy processing center. Record and manage income and expenditure account of Farmer’s Group

activities

(3) Work procedure

Basic Working Time: Morning - 7 am to 4 pm

A monthly attendance sheet will be maintained by the Leader / Assistant-Leader taking daily attendance of all working members. This is essential for payment of exact amount of income to concerned FG member.

Work Procedure on Daily Basis:

Day 1 FG members bring their milk in kitchen. The accountant will record amount of milk brought for processing. Milk is filtered and boiled in cauldrons. Estimated quantity of milk by 15 FG is 80 Liter during summer and 35Liter during winter. According to designed capacity of kitchen 3 cauldrons can be used at a time. Each cauldron can boil up to 28 Liter milk. Boiled milk is kept for conversion into yoghurt within next 24 hours.

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Day 2 When boiled milk is converted into yoghurt, butter is separated from yoghurt. The remaining Butter Milk is then kept in special bags called “Kharita” for further conversion into chaka after a period of 7 days.

Day 3-8 Above procedure is repeated every day to get chaka prepared from Butter Milk after every 7th day.

Day 9 Chaka is prepared and ready for further process. It is boiled and kept in Kharita for next two days to drain excess water.

Day 11 Chaka is ready for conversion into qorot. Qorot will take 6 days to dry.

Day 17 Qorot is prepared; it is then packed and becomes ready for marketing. The chaka and qorot products may be sold on weekly basis. During this activity, the accountant and leader will be present. Accountant will record income details.


FG will maintain three registers: Asset register Expenditure register Income register

1) Asset register

Record of all equipment provided and installed by the JICA-SEARAP Project team until end of June 2013 and afterwards by working members themselves when so ever needed, will be kept in the Asset register.

2) Expenditure register

Record of purchased fire wood, cartons, packs, safety nose mask, dish washing liquid, transport expenses, etc., and money paid to FG members, will be kept in the Expenditure register. The amount of wage to be paid to each FG member as well as payment for raw milk according to the amount of milk brought to the Milk Processing Facility shall be calculated by the accountant and approved by the FG leader every month.

3) Income register

Record of daily / monthly income from Processing will be kept in the Income register. The accountant will use this register in two portions. Using the first portion for record of income by selling chaka, qorot and butter. Second portion will be used for distribution of cream among FG members which may be utilized by farmers’ group members for domestic use.

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Maintenance and update of these registers is the responsibility of the accountant.

A2.5. Procedure of Decision Making of FG

(1) Regular Meeting

Date & time: Thursday every week, 11:00AM to 12:00PM Venue: Shahra Qarghanato Mosque To be held weekly

1) FG members working on the shift at the day of the meeting, 2) FG leader, 3) accountant and 4) representatives from the other shifts shall attend the meeting

Discuss the expenditure and income accounts and related issues Income account and expenditure record along with present cash money

shall be confirmed by leader and accountants of all shifts

(2) General Meeting

Date & Time: Last Thursday every month, 12:00PM to 1:00PM Venue: Shahra Qarghanato Mosque To be held weekly All FG members shall attend the meeting CDC Head / members including female members will also participate in

the meeting FG members to explain their activities, details of account books, income

and expenditure, etc., to CDC CDC must confirm transparency of the activities and accounting of the

FG CDC must solve problems raised among FG members. These

measures are mandatory for smooth implementation of the service. CDC ensures positive response to legitimate requests by FG members. Decision on all administrative issues such as replacement of a member

unwilling or not able to continue his/her work shall be made here. If a member has to depart before waiting for the last Friday of the month, an, urgent general meeting shall be held for provision of an alternate. CDC will overcome the issue as soon as possible.

Accountant shall pay salary to FG members and costs for raw milk.

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Appendix “A”

Daily Expenditure for Dairy Processing Center

Items

Summer (milk for processing: 80 litters) 50% of raw milk product chaka 50% of raw milk product qorot

Winter (milk for processing: 35 litters) All raw milk product chaka

Requirement / Month Description of Consumption Requirement /

Month Description of Consumption

Wood 120 siers For Boiling of Milk 1. 1 cauldron consumes 1 siers fire wood for

1 hour to boil 28 kg milk Therefore, 3 cauldrons = 3 siers fire wood For Boiling of Chaka 1. 12.96 kg chaka will be boiled in 1 cauldron 2. 1 cauldron consumes 1 sier fire wood for 1

hour to boil 28 kg chaka,

Total Fire Wood Consumption per day = For boiling milk + For boiling chaka = 3 siers + 1 sier =4 siers fire wood Total Fire Wood Consumption per day = 4 sier * 30 =120 siers

60 siers For Boiling of Milk 2. 1 cauldron consumes 1 sier fire wood for 1

hour to boil 28 kg milk Therefore, 2 cauldrons = 2 siers fire wood Total Fire Wood Consumption per day 2 siers * 30 = 60 siers

Cloth bag for butter milk

10 cloth bags From 80 litter of milk, approximately 120 kg of butter milk is produced per day. The capacity of one bag is 56 kg, and therefore, 2 bags will be required for one day. However, the amount of butter milk will become as low as 50% in the second day, thus 1 bag can be used for another batch. 7 days are required to convert butter milk into chaka. Therefore, the bags will be used in an 8 day cycle, including one day for cleaning. From the above, 10 bags are required for continuous processing of butter milk (refer to Attachment). The bags shall be renewed every month, therefore the monthly requirement is 10 bags.

8 cloth bags From 35 litter of milk, approximately 52.5 kg of butter milk is produced per day. The capacity of one bag is 56 kg, and therefore, 1 bag will be required for one day. 7 days are required to convert butter milk into chaka. Therefore, the bags will be used in an 8 day cycle, including one day for cleaning. From the above, 8 bags are required for continuous processing of butter milk (refer to Attachment). The bags shall be renewed every month, therefore the monthly requirement is 8 bags.

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Cloth bag for Chaka

4 cloth bags After converting butter milk into chaka, this shall be kept in cloth bags for two days to drain excess water. 1 bag is required to keep the chaka, and taking into regard one day for cleaning, the bags will be used in a three day cycle. From the above, 4 bags are required for continuous processing of butter milk The bags shall be renewed every month, therefore the monthly requirement is 4 bags.

Gloves 30 pairs 1 pair for two week use. 15 pairs for one week x 4 weeks = 20 pairs for one month

30 pairs 1 pair for two week use. 3 pairs for one week x 4 weeks = 12 pairs for one month

Carton for Qorot

440 cartons 1,500 kg qorot is produced monthly 1 carton contains 3.5 kg qorot 1,500 / 3.5 = 429 carton per month With some extras, 440 cartons per month is estimated

0 cartons

Dish Washing Liquid

1bottle 1 bottle / month 1 bottle 1 bottles / month

Soap 4 bars 1 bar of hand soap / 1 week = 4 bars of soap / month

4 bars 1 bar of hand soap /1 week = 4 bars of soap / month

Salt 54 kg Salt is mixed with chaka for preparing qorot. Total chaka produced = 12.960 kg / day Per kg of chaka require 0.138 kg = 0.138 kg salt * 12.96 kg chaka * 30 days = 53.6 kg

0 kg

Safety Nose Mask

45 pieces 1 mask for 1 week. 20 masks are required for one month

45 pieces 1 mask for 1weeks. 15 mask are required for one month

Transportation 560 kg Total production = 389kg chaka +61 kg qorot+110kgbutter=560kg per month

388 kg Total production = 340kg chaka + 48.3kg butter = 388 kg per month

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ATTACHMENT: Cycle of bags for Butter Milk

The cycle of cloth bags for butter milk indicated in page A3-13 is set as follows.

BAG FOR BUTTER MILK (Summer)

BAG1 BAG 2 BAG 3 BAG 4 BAG 5 BAG 6 BAG 7 BAG 8 BAG 9 BAG 10 1 batch 1 batch 1 2 batch 1 batch2 wash batch2 3 batch 1 batch2 batch 3 wash batch 3 4 batch 1 batch2 batch 3 batch 4 wash batch 4 5 batch 1 batch2 batch 3 batch 4 batch 5 wash batch 5 6 batch 1 batch2 batch 3 batch 4 batch 5 batch 6 wash batch 6 7 batch 1 batch2 batch 3 batch 4 batch 5 batch 6 batch 7 wash batch 7 8 washing batch2 batch 3 batch 4 batch 5 batch 6 batch 7 batch 8 wash batch 8 9 batch 9 washing batch 3 batch 4 batch 5 batch 6 batch 7 batch 8 batch 9 wash 10 washing batch 10 washing batch 4 batch 5 batch 6 batch 7 batch 8 batch 9 batch 10 11 batch 11 washing batch 11 washing batch 5 batch 6 batch 7 batch 8 batch 9 batch 10 12 batch 11 batch12 washing batch 12 washing batch 6 batch 7 batch 8 batch 9 batch 10 13 batch 11 batch12 batch 13 washing batch 13 washing batch 7 batch 8 batch 9 batch 10 14 batch 11 batch12 batch 13 washing washing batch 14 washing batch 8 batch 9 batch 10 15 batch 11 batch12 batch 13 batch 14 batch 15 washing batch 15 washing batch 9 batch 10 16 batch 11 batch12 batch 13 batch 14 batch 15 batch 16 washing batch 16 washing batch 10 17 batch 11 batch12 batch 13 batch 14 batch 15 batch 16 batch 17 washing batch 17 washing 18 washing batch12 batch 13 batch 14 batch 15 batch 16 batch 17 batch 18 washing batch 18 19 batch 19 washing batch 13 batch 14 batch 15 batch 16 batch 17 batch 18 batch 19 washing 20 washing batch 20 washing batch 14 batch 15 batch 16 batch 17 batch 18 batch 19 batch 20 21 batch 21 washing batch 21 washing batch 15 batch 16 batch 17 batch 18 batch 19 batch 20 22 batch 21 batch 22 washing batch 22 washing batch 16 batch 17 batch 18 batch 19 batch 20 23 batch 21 batch 22 batch 23 washing batch 23 washing batch 17 batch 18 batch 19 batch 20 24 batch 21 batch 22 batch 23 batch 24 washing batch 24 washing batch 18 batch 19 batch 20 25 batch 21 batch 22 batch 23 batch 24 batch 25 washing batch 25 washing batch 19 batch 20 26 batch 21 batch 22 batch 23 batch 24 batch 25 batch 26 washing batch 26 washing batch 20 27 batch 21 batch 22 batch 23 batch 24 batch 25 batch 26 batch 27 washing batch 27 washing 28 washing batch 22 batch 23 batch 24 batch 25 batch 26 batch 27 batch 28 washing batch 28 29 batch 29 washing batch 23 batch 24 batch 25 batch 26 batch 27 batch 28 batch 29 washing 30 washing batch 30 washing batch 24 batch 25 batch 26 batch 27 batch 28 batch 29 batch 30

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BAG FOR BUTTER MILK (Winter)

BAG1 BAG 2 BAG 3 BAG 4 BAG 5 BAG 6 BAG 7 BAG 8 1 batch 1 2 batch 1 batch2 3 batch 1 batch2 batch 3 4 batch 1 batch2 batch 3 batch 4 5 batch 1 batch2 batch 3 batch 4 batch 5 6 batch 1 batch2 batch 3 batch 4 batch 5 batch 6 7 batch 1 batch2 batch 3 batch 4 batch 5 batch 6 batch 7 8 washing batch2 batch 3 batch 4 batch 5 batch 6 batch 7 batch 8 9 batch 9 washing batch 3 batch 4 batch 5 batch 6 batch 7 batch 8 10 batch 9 batch 10 washing batch 4 batch 5 batch 6 batch 7 batch 8 11 batch 9 batch 10 batch 11 washing batch 5 batch 6 batch 7 batch 8 12 batch 9 batch 10 batch 11 batch 12 washing batch 6 batch 7 batch 8 13 batch 9 batch 10 batch 11 batch 12 batch 13 washing batch 7 batch 8 14 batch 9 batch 10 batch 11 batch 12 batch 13 batch 14 washing batch 8 15 batch 9 batch 10 batch 11 batch 12 batch 13 batch 14 batch 15 washing 16 washing batch 10 batch 11 batch 12 batch 13 batch 14 batch 15 batch 16 17 batch 17 washing batch 11 batch 12 batch 13 batch 14 batch 15 batch 16 18 batch 17 batch 18 washing batch 12 batch 13 batch 14 batch 15 batch 16 19 batch 17 batch 18 batch 18 washing batch 13 batch 14 batch 15 batch 16 20 batch 17 batch 18 batch 18 batch 19 washing batch 14 batch 15 batch 16 21 batch 17 batch 18 batch 18 batch 19 batch 20 washing batch 15 batch 16 22 batch 17 batch 18 batch 18 batch 19 batch 20 batch 21 washing batch 16 23 batch 17 batch 18 batch 18 batch 19 batch 20 batch 21 batch 22 washing 24 washing batch 18 batch 18 batch 19 batch 20 batch 21 batch 22 batch 23 25 batch 24 washing batch 18 batch 19 batch 20 batch 21 batch 22 batch 23 26 batch 24 batch 25 washing batch 19 batch 20 batch 21 batch 22 batch 23 27 batch 24 batch 25 batch 26 washing batch 20 batch 21 batch 22 batch 23 28 batch 24 batch 25 batch 26 batch 27 washing batch 21 batch 22 batch 23 29 batch 24 batch 25 batch 26 batch 27 batch 28 washing batch 22 batch 23 30 batch 24 batch 25 batch 26 batch 27 batch 28 batch 29 washing batch 23

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Annex 3 Business Plan for Village Naan-Baking Project / Surkhdar CDC

A3.1. Brief Description A Village Naan-Baking Project has been implemented in Surkhdar Village (Badam Bagh Cluster and Geroo Cluster), Bamyan Center, Bamyan Province.

Under the project, two Village Naan-baking Centers were supposed to be operated by a women’s group for paid naan-baking services as a model to establish an enabling environment for women to participate in economic activities through generation of spare time from their housework, as well as the possibilities of creating small businesses in the village.

However, after its operation from early September to early November 2012, the naan baking centers were closed due to decreasing service users who preferred to bake naans at home for heating in cold weather. At the evaluation meeting held in November 2012, it was decided that the center in Badam Bagh would be re-opened after the end of March 2013 with the following changes in the original business plan;

- The number of WG members will be decreased in order to reduce the cost for running the naan baking center.

- The quality of the oven will be improved to increase efficiency for fuel consumption.

On the other hand, since the number of service users for the Village Naan-baking Center in Geroo Cluster was considerably smaller than what was first informed, it was decided that the operation in Geroo will be resumed if the CDC could obtain contracted works from organizations.

This Business Plan is a revised version of the Business Plan for Badam Bagh Cluster, which takes into consideration the above situation surrounding the Village Naan-baking Center.

A3.2. Management Plan

(1) Objectives of the Village Naan-Baking Center - To contribute to the economic development of Surkhdar Village, through

creating spare time for service users, which can be utilized for economic activities.

- To promote economic activities by women, by functioning as a place for exchanging information among project participants

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- To accumulate knowledge and experience on small business, which shall be shared with whomever that may be interested.

- To contribute to the economic conditions of the WG Members through receiving minimal profit for the Naan-Baking Services.


1) Working Group (WG) WG Members shall consist of one leader / accountant, one sub-leader, and one member. The WG Members shall be responsible for operating / maintaining the facilities of the Naan-Baking Center as well as the cash account.

2) Roles and Responsibilities of Surkhdar CDC The Roles and Responsibilities of Surkhdar CDC are:

- To attend general meetings of the WG and monitor its activities and cash account.

- To provide necessary support among request of the WG, but not directly interfering in financial matters (e.g. taking control of financial activities, utilizing cash balance of Naan-baking center for personal use etc.)

- To support the WG in accounting and confirm transparency among request by Project Participants

- To solve any disputes which may arise between WG and Service Users.

- To take measures to keep the business of the Naan-Baking Center operating after the end of June 2013.

- The CDC cannot dispel any working member at its own. The decision will be taken in concurrence with all WG members.

3) Ownership The ownership of the installed equipment and facility by SEARAP, as well as the equipment, material and other goods procured by the WG, shall belong to the CDC of Surkhdar. The CDC cannot sell, rent, mortgage, or use for purposes other than that for Village Naan-Baking Services without the consensus of the WG and PRRD and a prior consent of JICA Afghanistan.

A3.3. Financial Plan

(1) Business Concept The Naan-Baking Center was supposed to earn minimal profits by providing Paid Naan-Baking Services to the Service Users, where the Service Users would bring dough from their household, and the WG members would bake them using the

A3 - 3

facilities and equipment of the Naan-Baking Center. However, commercial operation of naan-baking centers by women’s groups was not attained due to reasons such as; lack of willingness of villagers to pay cash in exchange for naan-baking services at the initial stage of the pilot-project despite their initial wish to install such service; difficulty in access due to the remote location of the naan-baking centers; necessity of heating houses during winter; difficulty for women to engage in heavy labor such as carrying firewood; and social barriers for women to participate in economic activities. In consideration of these difficulties, Surkhdar CDC decided to operate the naan-baking center in Badambagh by one male baker.

(2) Cost Benefit Analysis Operating cost of the baking center mainly consists of costs for firewood and wage for the baker. Operation by one male baker requires a monthly cost of 31,100 Afs. With the service fee set at 3 Afs per naan, the baking center needs to bake more than 346 naans per day to bare profit. Currently, the baking center is baking up to 450 naans per day, with the profit of 9,400Afs per month.

With the assumption that the baking center will operate during April to September, the estimated annual profit is 56,400.

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Cost Benefit Analysis for the Village Naan-Baking Service Project

Breakdown of daily expenditures of the naan baking center is as follows.

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Daily Expenditure for Naan-Baking Services Items Quantity Required / Day Unit Price (Afs) Total (Afs)

Wood 10 siers 90 900 Turpentine Oil 1 bottle 70 70 Wage of Baker 1 person 2,000/month 67

Total (per day) 1,037

A3.4. Detailed Operational Procedures

(1) Formation of WG Members

- The WG consists of three members

- The members would provide their substitute in case of emergency works, illness or urgent situations.

The roles of individuals are as follows:

1) Leader / accountant:

- Represent the WG and make Liaison / Negotiation with external organizations / individuals

- Coordinate with CDC

- Arrangement and coordination of events such as Training, Site visit etc.

- Organizing consensus on WG activities among members

- Arbitration of disputes

- Baking activities and other activities required for operation and maintenance of the Naan-baking Center

- Recording / Management of income and expenditure account of Naan-Baking Group activities

- Recording / Management on volume of dough received from service users and number of Naan which will be returned

2) Sub-Leader:

- Support the leader to conduct her mandate

- Act as leader when the leader is absent


- Other activities instructed by the leader

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3) Member:


- Other activities instructed by the Leader or the Sub-Leader in absence of the Leader

(2) The Working Method

Time: 5:00AM to 11:00AM

A monthly attendance sheet will be maintained by the Leader taking daily attendance of all working members. This is essential for payment of exact amount of salary.

Work starts early in the morning from 5:00AM. People bring their prepared dough from home to the baking center. All the dough shall be prepared in same size. If someone brings bigger / smaller dough, it is divided and made according to the maintained size of the dough. After rolling and giving final shape to the dough it is baked in oven. The working member would adopt a procedure for identifying the number of Naan bread of each Service User like marking Naan breads before the dough is baked. After Naan is properly baked, it is distributed to Service User while Accountant would ensure collection of money as baking service at the very moment and recording the payment.

Step by Step Procedure:

1) Service Users will bring their prepared dough to the center during working hours. However, size of dough brought by each family may not be the same. For instance, some Service User may bring a large single dough and ask working member to bake 7 or 8 Naans out of it. For this purpose, WG member will use a scale for fixing standard size of dough. This issue is of importance, as a number of problems may be caused due to size of dough.

2) After giving final shape to dough, the WG members will bake Naan bread in the oven. The oven has the capacity of baking more than 20 naan breads at the same time. WG members will mark the dough to identify them before putting it into the oven. For example, if a person brings 4 pieces of dough while another brings 6, these will get mixed in the baking center as all of them may be put into the oven at the same time. WG members will mark 4 lines or use other marks. After naan bread is ready, the identification of naans will be possible. This will reduce the risk of confusing dough among Service Users.

A3 - 6

3) Since it is essential to regularize the size of dough, the accountant shall be the responsible figure for maintaining this procedure. If dough brought by service user is larger / smaller than standard size adopted in kitchen, Accountant would make the service user agree for division of dough. After naan bread is baked, the accountant will count the numbers of breads and record it in her income register. On delivering naan bread to the Service User, she will collect money from them and note down the exact amount in front of the baked naans.

(3) Ramadan Timings

During Ramadan these members will work from 2pm to 5pm. Working hours may increase subject to demand of work. Other working procedure would remain same as explained above.


WG will maintain three registers: Asset register Expenditure register Income register

1) Asset register Record of all equipments provided and installed by the JICA-SEARAP Project team until end of June 2013, and afterwards by working members themselves when so ever needed will be kept in the Asset register.

2) Expenditure register Record of purchased coal, wood, match box, turpentine oil, torch, battery, transportation expenses, etc., and wage or salaries of the WG members will be kept in the Expenditure register.

3) Income register Record of daily income from baking will be kept in the Income register. The accountant will use this register in two portions. Using the first portion for baking service and noting down the exact amount against the numbers of naan breads. Maintenance and update of these registers will be the responsibility of the Leader / accountant.

A3.5. Procedure of Decision Making of WG

(1) Regular Meeting

Date & Time: Thursday every week, 11:00AM t0 12:00PM Venue: Surkhdar Community Hall

A3 - 7

To be held weekly Discuss the expenditure and income accounts and related issues Income account and expenditure record along with present cash money

to be confirmed by all members Measures for increasing the number of service users will be discussed

as required.

(2) General Meeting

Date & Time: Last day of every month, 3:00PM to 4:00PM Venue: Surkhdar Community Hall

To be held monthly All WG members, CDC Head / members including female members will

attend the meeting WG members to explain their activities, details of account books,

income and expenditure, etc., to CDC WG will inform the CDC about the problems like undue balance by

Service Users, misbehavior of some villagers, etc. CDC must confirm transparency of the activities and accounting of the

WG CDC must solve problems raised between WG members and Service

Users. These measures are mandatory for smooth implementation of the service.

CDC ensures positive response to legitimate requests either by WG members or Service Users.

Decision on all administrative issues such as replacement of a member unwilling or not able to continue her work. If a member has to depart before waiting for last Friday of the month, an, urgent general meeting will be held for provision of an alternate. CDC will overcome the issue as soon as possible.

A4 - 1

ANNEX 4 Selection Process of Small-Scale Pilot Projects

A4.1 Examination of Candidate Projects A list of 21 development issues was initially proposed by PRRD as primary candidates for the small-scale pilot projects. This was further examined by the Project Team and re-organized into a short list of nine candidate projects, taking into consideration viewpoints such as relevance with priority development issues identified through SEARAP and technical feasibility (Table A-1).

Table A4-1 Short List of Candidates for Small-Scale Pilot Projects (1) Small-Scale Mechanization Project (6) Dairy product processing (2) Wheat Milling and Baking Project (7) Bee keeping development (3) Income Generating Project through Potato Production (8) Aquaculture development (4) Sesame Oil Producing Project (9) Poultry farming development (5) Improvement of livestock nutrition

The Project Team and counterparts held a series of meetings to set criteria for selecting pilot projects and jointly assessed the candidates based on the criteria. The criteria applied for the selection are shown below:

Preconditions for the small-scale pilot projects:

a) The project can be implemented and results can be achieved within the period of SEARAP. b) The project directly contributes to rural socio-economic activation. c) There are no major difficulties expected for implementing and evaluating the project. d) The project cost can be accommodated within the available budget.

Criteria for selecting pilot projects:

1. Balance among target sub-sectors (projects cover both crop cultivation and livestock) 2. Relation with priority development issues 3. Importance of topics to be verified 4. Importance of target product 5. Balance of target group 6. Timing of delivered outputs 7. Demonstration / spill-over effects 8. Technical feasibility / expected outputs

As a result of the above assessment, three candidates were determined to have highest priority (Table A4-2): (2) Wheat Milling and Baking Project, (3) Income Generating Project through Potato Production, and (6) Dairy product processing. After additional discussions on the contents of the candidates, small modifications were applied to their contents and the selection of small-scale pilot projects was finalized.

A4 - 2

Potato Production and Processing Project Dairy Product Improvement Project Village Naan-Baking Service Project

The discussion during the selection between the Project Team and counterparts is summarized as shown below:

“(1) Small-Scale Mechanization Project”

Small-scale mechanization was considered as a potential pilot project through preliminary examination by the Project Team. Even though the counterpart side understood the importance of the development issue of agricultural mechanization, it was objected to by counterparts due to a previous negative experience in introducing walking-type tractors by another donor project, which could not plow to the necessary depth. The failure was considered to be caused by unsuitable selection of the tractors, not by the tractors themselves. The selection of suitable equipment, i.e., tractors and attached implements, for the field conditions according to plot size and soil conditions is the most important issue for promoting agricultural mechanization. It was concluded that research and development activity through a research organization was necessary to solve the issue of identifying machinery matching the local environment and a small-scale pilot project was not a suitable activity. Thus, adopting small-scale mechanization was abandoned as a pilot project.

“(2) Wheat Milling and Baking Project (Adopted through modification)”

A wheat milling and baking project was examined as a candidate for a quick impact project as an alternative to the small-scale mechanization project. All counterparts who participated in the discussion strongly recommended the wheat milling and baking project because it is a project targeting rural women and a wide spillover effect is expected. It was also pointed out that this project contributes to the reduction of housework for rural women and gives them time to participate in economic activities such as handicraft and agro-processing. As a result of the discussion, the village naan-baking service project, in which a baking center will be established as a communal facility in the village where a voluntary group of village women will operate the center to provide baking for a fee, was formulated.

“(3) Income Generating Project through Potato Production (Adopted)”

The income generating project through potato production was considered as a probable pilot project through preliminary examination by the Project Team. Potato is an important product of the province and is considered as a potential product for promoting socio-economic activity. All counterparts who participated in the discussion strongly insisted to set potato as a target crop of the pilot project. The counterpart side stated that cultivation and storing of potatoes has also been supported by various donor projects. Thus, the counterpart side proposed that the pilot project should emphasize agro-processing, especially potato chip processing, as the main

A4 - 3

topic of the verification. As a result of the discussion between the Project Team and counterparts, it was agreed that the pilot project would include the whole range of activities from improvement of crop cultivation, improvement of marketing by shifting of shipping time by storing and adopting appropriate grading of product, and adding value by introducing agro-processing (potato chip processing). The project title was concluded to be Potato Production and Processing Project.

“(6) Dairy product processing (Adopted)”

Livestock product processing was strongly recommended for implementation as a pilot project due to the importance of dairy products in the provincial economy and the wide coverage of beneficiaries. A large number of farmers who have livestock can be covered and even small-scale farmers and rural women can participate in the activity. Qorot was selected to be a main target product in the pilot project because Bamyan qorot has high marketability due to its quality and the promotion of qorot processing is expected to contribute to the promotion of socio-economic activity of rural areas. For this project, it was agreed to concentrate on the processing and marketing of qorot as the first step in promoting dairy product processing in the province, as well as to improve the quality and quantity of milk production through nutrition improvement by using silage as feed. The project title was agreed to be Dairy Product Improvement Project.

“(9) Poultry farming development”

Small-scale poultry farming development was considered as one of the potential pilot projects through preliminary examination by the Project Team because it is easy for most farmers to start the activity and because demand for the product is large in the local market. However, there were concerns regarding the difficulty in keeping poultry during the severely cold winter. For the small-scale pilot project, the poultry could be sold before winter. However, when considering the sustainability and further development of the activities, implementation of the project without solving the issue on how to help poultry survive the winter period was considered to be an important but time consuming issue. Therefore, it was abandoned as a pilot project.

A4 - 4

Table A4-2 Evaluation Table of Candidate Pilot Projects (Short List) Results of CPs Meeting on Jan 18, 2012

Project Title Subsector Priority of Development Issues

Importance of Topics to be

Verified

Importance of Target Product

Balance of Target Group

Timing of Delivered Outputs

Demonstration / Spill-Over

Effects

Technical Feasibility /

Expected Outputs

Overall Scoring

(1) Small-Scale Mechanization Project

Agriculture A: Improving farming practice in the field

A A: Regional major crops (wheat, potato)

Crop farmers in hilly areas

A A C B (16/18)

(2) Wheat Milling and Baking Project

Small business

A: Generating small income in village

A A: Basic commodities in village

Women’s groups in village

A A A A (18/18)

(3) Potato Production and Processing Project*

Agriculture A: Increasing productivity of crops, value adding, processing and marketing

A A: Regional major crops (potato)

Crop farmers A A A A (18/18)

(4) Sesame Oil Producing Project

Agriculture A: Introducing agricultural processing

A C: Promising products

Crop farmers B C B C (13/18)

(5) Improvement of livestock nutrition

Livestock A: Increasing productivity of livestock

A A: Regional major products

Livestock farmers

B B A B (16/18)

(6) Livestock product processing

Livestock A: Introducing agricultural processing

A A: Regional major products

Livestock farmers / women’s groups

A A A A (18/18)

(7) Bee keeping development

Small business

A: Introducing small business for farmers

A B: Promising products

Village people A B C C (14/18)

(8) Aquaculture development

Small business



Village people (limited area)

C C C C (11/18)

(9) Poultry farming development

Livestock/ Small business



Village people A A B B (16/18)

* As a result of discussions, the potato processing activity was included in the projects.

A4 - 5

A4.2 Selection of Target Sites of Small-Scale Pilot Projects

The candidate target sites of the small-scale pilot projects were nominated by the counterparts in consideration of the farming situations in the villages. Considering the convenience of daily project management and the effect of demonstration, the accessibility of villages, which was determined to be within one hour from Bamyan city by car, was also taken into account.

Two to five villages were nominated for each project by the counterparts and a joint survey team of the Project Team, PRRD and DAIL was organized and dispatched to the villages for a field survey from January 22 to 24, 2012. A supplemental survey and interviews with community leaders were carried out by the Project Team from February 8 to 10, 2012.

(1) Potato Production and Processing Project

Five villages in Folladi Valley were surveyed as shown in Table A4-3, and Monara Village was nominated as the first priority candidate with Bam Saraie Village as the second priority, after considering road access, the production of potatoes and former experience in support projects on potato production. Counterparts decided the final candidate village after discussions with DDA of Banyan Center.

Table A4-3 Candidate Sites for the Potato Production and Processing Project

(2) Dairy Product Improvement Project

Six villages in Qarghanato and Shebarto areas were surveyed as shown in Table A4-4, and Shahrah Qarghanato Village was nominated as the first priority candidate after considering road access, the situation of animals and dairy production and the activity of existing traders in the village. Counterparts decided the final candidate village after discussions with DDA of Banyan Center.

1 -0024 Monara 1 350 good1750Jreb

350One tractor

provided with 285HP

April 10, seedsand harvests on

Sep 10

EnoughStorage

MHP provided 20 HighVillage is located just beside

the main roadAREDP Saving Group

Target Village

2 -0043 Sia Khak 1 55 good 200 Jreb 55 Not providedApril 10, seedsand harvests on

Sep 106 storage

Currently use solarpanel but in spring

their MHP works willbe completed

23 HighVillage is located just beside

the main road

RBSP Target Villgae(Arbab ChamanCooperative)

3 -0016Shewa Qad

Theekar Foladi1 232 good 630 Jreb 232

provided butrejected by them

due to deepplough


Sep 10

EnoughStorage

Half Use Solar Paneland Half MHP


the main road

4 -0019 Bam Saraie 1 480 good14000Jreb

4003 Tractor

provided (285HP)and 1 360 HP


Sep 10

EnoughStorage

Currently use solarpanel but in spring

their MHP works willbe finished



Target Village

5 -0020 Katwhy 1 350 good1750Jreb

350 Not provided butuse rental tractor


Sep 10

No enoughstorage

Solar Panel 18 HighVillage is located just beside


Target Village

No Area CDC NameCondition

ofIrrigation

Availability ofelectricty

Distancefrom

centre(km)

Peopleinterest

Accessibility to Village

Com

munit

y I

D

Scre

enin

g

Pri

ori

ty

Remarks

Folladi (B

am

yan C

ente

r)

Area ofPotato

Cultivation

No. ofFarmers

Cultivating

Potoato

Seeding &Harvesting time

of potato

No. of Tractorand Its Power

Availability of

PotatoStorage

No.ofShura

s

No. ofHouseh

old

A4 - 6

Table A4-4 Candidate Sites for the Dairy Product Improvement Project

(3) Village Naan-Baking Service Project

Two villages initially nominated by the counterparts were newly established villages of returnees where most people have neither farmland nor animals, and have jobs in the town. Both villages were judged unsuitable for implementing the project because: 1) people buy wheat flour and fuel from town and it was difficult to expect time saving of housework related to naan-baking, and 2) it is indispensable to provide further support for creating job opportunities in order to utilize created surplus time for economic activity. Subsequently, the counterparts newly nominated 14 villages as new candidate villages (Table A4-5). After screening these candidates from the view of road access, number of households and experience of women participating in economic activities, Surkhdar CDC was selected as a priority candidate. On 29 April 2012, a workshop was held with some 50 women participants to assess the development needs of Surkhdar CDC. Items such as schedule of daily activities for women and issues on these activities were analyzed in the workshop. Following the workshop, the counterparts discussed the results with DDA of Bamyan Center and selected Surkhdar CDC as the final candidate. After explaining the contents of the pilot project to the CDC and confirming their intensions for participation, Badanbagh Cluster of Surkhdar CDC was selected as the target site.

Following the selection of the target site, the SEARAP Study Team conducted a site survey in the surrounding areas and discovered that there were two naan-baking centers constructed in the same CDC (Shahr-e-now Cluster and Geroo Cluster). Interviews with local residents indicated that these baking centers were not used after their construction because there was no guidance on use or training for operation. Out of the two baking centers, the one in Shahr-e-now was located in a protection area designated by UNICEF and built just below a huge rock with a risk of rock fall. Under such conditions, it was decided that SEARAP cannot provide support for its operation. On the other hand, there were no major problems for the baking center in Geroo Cluster, and with local residents showing a strong intention to participate, the site was selected as a sub-site for the pilot project.

Sheep Goat Cow

1 -0099 Shahrah Qarghanato 500 100 100 78 1 Solar Panel 45 High

2 -0102 Kohna Qala 300 50 40 117 1 Solar Panel 45 High

3 -0103 Toapbili 300 50 70 130 1 Solar Panel 45 High

4 -0104 Olangak 350 50 70 120 1 Solar Panel 45 High

5 -0101 Qoum Jawak 600 50 100 230 1 Solar Panel 45 High

6 -0100 Qalla Sabzi 250 50 40 67 1 Solar Panel 45 High

Area CDC NameNo

Livestock's Number

Com

ty I

D

Pri

ori

ty

Scre

enin

g

Qarg

hanato

(B

am

yan C

ente

r)

No.of household

No.ofShuras

Availability ofelectricty

Distancefrom

centre (km)

Peopleinterest

A4 - 7

Table A4-5 Candidate Sites for the Village Naan-Baking Service Project

The target sites selected for the three small-scale pilot projects are as follows:

Table A4-6 Location of Target Sites for Small-Scale Pilot Projects

Small-Scale Pilot Project Location Potato Production and Processing

Project Monara CDC, Folladi Valley, Bamyan Center District

Dairy Product Improvement Project Shahrah Qarghanato CDC, Qarghanato, Bamyan Center District

Village Naan-Baking Service Project Badanbagh Cluster and Geroo Cluster, Surkhdar, Bamyan Center District

1 14 0032 Mulla Ghulam 350 1 No Solar Panel 8 km High Yes

2 13 0085 Azhdar 500 1

Carpet weaving, Barkot(used for burning) andBracelet weaving. Solar Panel 12 km Not so high Yes

3 11 0081 Comp-e-Shashpol 121 1Illiteracy Course,Carpet Weaving

Solar Power ( oneSolar Panel 60 Watt /

3 Families)13.5 km High Yes

4 12 0029 Zargaran 417 3Tailoring curse, Carpet

weaving andneedlework

Solar Power (16% ofFamilies)

Beside ofBamyan Center High Yes

5 10 0032 Rigshad 237 1 Carpet Weaving Solar power (30% of

Families) 5 km High Yes

6 6 0009 Sang Chaspan 210 1 TailoringSolar Power ( one

Solar Panel 50 Watt /3 Families)

4 km High Yes

7 9 0031 Said Abad. 312 1Illiteracy Course, Hand

craft and TailoringSolar Power (10% of

Families) 4.5 km High Yes

8 8 0050 Haidar Abad. 447 1Tailoring Curse,Illiteracy Course,

Farming and livestock

Solar Power (30 ofFamilies) 5 km High Yes

9 7 0028 Pitaw Lahgman 300 1 FarmingSolar Power (80% of

Families) 2.5 km High Yes

10 4 00 51 Dasht-e- Sayed 160 1 Farming/livestock 100% MHP 6 km High Yes

11 2 00 48 Dokani No. 1 119 2 Farming/livestock 100% water power 14 km High Yes

12 1 00 12 Surkhdar 325 1Farming, handcraft,Carpet weaving and

tailoring

30% families has solarpower

8 km High Yes

13 3 00 33 Fatmasti 198 1 Farming and Livestock 20% has solar power 6 km High Yes

14 7 000 8 Surkhqul 196 1 Illiteracy Course,

handcraft 100% solar power 2 km Moderate Yes

Bam

yan

Cen

ter

No.

Are

a

CDC NameNo. ofCDCs

Scre

enin

g

Prio

rity

Com

ity ID No. of house

hold at NSPSurvey

Women's groupactivity experience

Availability ofelectricity

Accessibility toMain Road

Distance fromcenter (km)

Peopleinterest

A5 - 1

Annex 5 Participants of the Small-Scale Pilot Projects

A5.1 Potato Production and Processing Project

(1) Farmers’ Group for Potato Production

No Name / Gender No Name / Gender (1) Muhammad Hassan (Group Leader) / Male (2) Abdul Rab (Assistant Leader) / Male

(3) Mualim Rahmat (Clerical Assistant) / Male (4) Haji Muhammad Sakhi (Accountant) / Male

(5) Sher Aqa / Male (6) Juma Khan / Male (7) Abdul Karim / Male (8) Abdul Jalil / Male (9) Salman Ali / Male (10) Muhammad Haidar / Male (11) Hossain Jan / Male (12) Aziz Ahmad / Male (13) Muhammad Nadir / Male (14) Haji Zahir / Male (15) Hajy Nazar / Male (16) Abdul Qader / Male (17) Naqebullah / Male (18) Mohammad Aslam / Male (19) Fazel Haq / Male (20) Mohammad Zaman / Male

(2) Processing Group for Potato Chip Production

No Name / Gender No Name / Gender (1) Muhammad Hassan(Group Leader) / Male (2) Aziz Ahmad / Male (3) Mualim Rahmat(Assistant) / Male (4) Mohammad Aslam / Male (5) Juma Khan / Male (6) Abudul Karim / Male (7) Hajy Zahir / Male

A5.2 Dairy Product Improvement Project

(1) Farmers Group for Nutrition Improvement for Livestock

No Name / Gender No Name / Gender

(1) Abdul Ghafor (Group Leader) / Male (2) Md Ali (Accountant) / Male

(3) Md Hussain (Assistant) / Male (4) Mohammad Alam son of Mirza Hussain / Male

(5) Md. Karbalai Son of Ghulam ali / Male (6) Mohammad Mossa son of Ghulam Hassan / Male

(7) Khadeem Ali son of Syead Mohammad / Male (8) Mohammad Daood son of Khadeem Hussain /

Male

(9) Mohammad Nasar son of Ghulam Hassan / Male (10) Mohammad Ali son of Khadeem Hussain/

Male (11) Chaman ali son of Md Azim / Male (12) Mohammad Ali son of Ghulam Ali / Male (13) Khudadad son of Khadem Hussain / Male (14) Yousof / Male (15) Ghulam Hussain Ghulam Hassan / Male

A5 - 2

(2) Working Group for Milk Processing

No Name / Gender No Name / Gender (1) Maryam / Female (2) Habiba / Female (3) Nik bacht / Female (4) Rahima / Female (5) Sakina / Female (6) Nasiba / Female (7) Nik bakht / Female (8) Bachtawar / Female (9) Chaman / Female (10) Masoma / Female (11) Hura / Female (12) Bidar / Female (13) Amina / Female (14) Soghra / Female (15) Najiba / Female

A5.3 Village Naan-Baking Service Project

(1) Working Group for Naan Baking Center in Badam Bagh.

No Name / Gender No Name / Gender (1) Jan Ara (Group Leader) / Female (2) Sherin Gul (Accountant) / Female (3) Madina daughter of Noor Ali / Female (4) Sharifa Daughter of Imam Ali / Female (5) Sediqa daughter of Sekandar / Female (6) Sughra Daughter of Merza Husain / Female

(2) Working Group for Naan Baking Center in Geroo

No Name / Gender No Name / Gender (1) Najeia (Leader) / Female (2) Marzeia (Accountant) / Female (3) Khanum / Female (4) Fatema / Female

(5) Mariam / Female (6) Raihan / Female

A6 - 1

Annex 6 Actions Taken in Response to the Issues pointed out in the Wrap-up Workshop and Site Visit

The implementation period of the pilot projects, which was originally planned to end in November 2012, was extended to May 2013 in response to several issues raised during the Wrap-up Workshop and Site Visit conducted in November 2012. Issues that arose and actions taken are described below.


Issues Actions Taken 1. Sufficient skills for processing

were not yet acquired by the farmers’ group

Training on potato chip production was conducted so that the farmers could obtain sufficient skills on processing works and would be able to produce potato chips with good quality. As a result, processing skills and quality of potato chips were improved. 2. Insufficient quality of potato

chips 3. Farmers did not have sufficient

awareness on safety issues (safe use of machinery and equipment)

Safety instructions for the use of machinery, particularly for the slicer and packing machine, were provided by an engineer specialized in processing machinery and equipment. General knowledge on maintenance skills was also provided, which was further complemented by on-the-job training. Farmers can now operate the machinery in a safe manner and can conduct regular maintenance and simple repairs of the machinery.

4. Skills for maintenance processing machinery and equipment were not sufficient

5. Marketing & distribution channels were not established

Marketing routes in Bamyan Province were identified with the support of SEARAP. Samples of potato chips were brought to shopkeepers and the selling price was negotiated. The shopkeepers are ready to sell the potato chips when production resumes after the next harvest.

6. Business Plan was not appropriately updated

The business plan was updated based on the findings of the pilot project and financial sustainability of potato chip production was verified. Costs that were not considered in the initial plan such as fuel for generators and nitrogen gas for packing were included in the calculation, as well as the selling price negotiated with shopkeepers.


Issues Actions Taken 1. Improvement of package for

chaka A new package for chaka, which is more durable and cheaper than the initial one, was selected and introduced. Procurement of the packages was conducted with the participants so that they will be able to purchase them by themselves after the completion of the pilot project.

2. Identification of means for transporting and selling the products

As a result of negotiations with shopkeepers in the bazaar in Bamyan Center, the number of shops selling the products has increased. Moreover, the participants of the pilot project have opened a small shop near the processing center without the support of SEARAP and are now selling the products on their own. The ownership of the project activities is so high among the farmers’ group that the activities could be handed over to the group. Recently, pre-order delivery service to some hotels has started. As for sales to markets in Kabul, participants of the pilot project have expressed that they can also manage this by themselves.

3. Necessity of practical Business Plan

The initial Business Plan was revised, reflecting seasonal fluctuation of raw milk production and actual expenditures observed for the operation of the processing center.

A6 - 2

4. Insufficient understanding of pilot project participants on the Business Plan and profitability of milk processing

The contents of the revised Business Plan were explained in detail to the pilot project participants and training on bookkeeping was conducted to deepen their understanding on business management. Participants are now able to appropriately keep their accounting and are checking their balance on a weekly basis.


Issues Actions Taken 1. Improvement of oven

efficiency Fuel efficiency of the oven was improved in Badanbagh by renewing the oven structure.

2. Difficulty in operating business in Geroo Baking Center (no profitability)

Whereas the initial information obtained from the PGO and CDC indicated that there were 70 households that would benefit from the baking center in Geroo, the actual number of the households accessible to the center turned out to be around thirty. In the course of the pilot project, it was further found that there were few opportunities for women in this area to participate in economic activities even if free time was obtained through use of the baking service. Thus, after discussion with the CDC, the baking center in Geroo was decided to be utilized as a public facility.

A7 - 1

Annex 7 Discussions Regarding Follow-Up and Continuation of Small-Scale Pilot Projects

Apart from the actions indicated in Annex 6, a series of discussions were conducted during April – May 2013 to determine how the three small-scale pilot projects can be continued after the finishing of SEARAP.


Date: 25th May 2013 Participants: SEARAP Project Team, PRRD, DAIL, DoE, PGO, AREDP Major Contents Discussed:

• Updates on the situation of the potato processing center was provided by the SEARAP Project Team, and possible alternatives for continuation of the pilot project and possibilities of further external support for the project was discussed.

• Mr. Muhammad Ibrahim Ibrara suggested the possibility of AREDP supporting the processing center. All participants insisted that it would be ideal if AREDP could provide continuous support.

• It was decided that the participants of the meeting will conduct a site visit to confirm the situation and visit the AREDP office in Bamyan on 26 May to discuss the issue with the officer in charge of Small & Medium Enterprises.

Date: May 26th 2013 Participants: SEARAP Project Team, AREDP Officer, Participant Farmers Major Contents Discussed:

• Discussions were held on possibilities of AREDP in providing further support to the potato processing center. The situation of the processing center was explained and a site visit was conducted to confirm the situation. The business plan prepared by the SEARAP Project Team was presented to AREDP as a material for examining possibilities of further support.

• AREDP carefully observed the situation and expressed its difficulty to provide further support to the processing center because it does not fulfill the conditions of its support scheme for Small & Medium Enterprises.

• Participant farmers expressed that they would manage to operate the processing center without the support under the Small & Medium Enterprises program.

Date: May 27th 2013 Participants: SEARAP Project Team, PRRD Major Contents Discussed:

• The SEARAP Project Team explained the results of the meeting on May 26 to PRRD. In response, PRRD expressed that they alone cannot decide on which organization can provide further support to the processing center and suggested that a discussion including the PGO should be held to solve the issue.

• It was decided that a meeting will be set with the PGO in order to discuss the issue.

A7 - 2

Date: 28th May 2013 Participants: SEARAP Project Team, Participant Farmers Major Contents Discussed:

• A new method for improving the quality of potato chips was introduced to the processing center.

• The products were brought to several shopkeepers in the bazaar of Bamyan Center to ask their opinions on their quality. In consideration of the quality of the potato chips, the shopkeepers expressed their interests on selling the products in their shops at the price of 10Afs / pack.

• In response to the above, the business plan was reviewed and means of reducing the costs of potato chips were examined by the SEARAP Project Team, and it was found that the costs can be reduced by limiting the number of workers in the processing center to three persons.

• The revised business plan was presented to the participant farmers, but none of them agreed to resign from their work. As a result of discussion, it was agreed that after restarting the operation of the processing center resumes after the next harvest, they will reduced the number of workers themselves based on their performance.

• In the meeting, it was also confirmed that the processing center cannot continue operation at this point because stock of Bamyan potatoes were insufficient. The participant farmers said that they would resume the operation after October 2013, which is the time of the next harvest.

Date: 30th May 2013 Participants: SEARAP Project Team, PGO (Deputy Governor), PRRD, DAIL, DoE, AREDP, other members

of the monthly meeting held by PGO Major Contents Discussed:

• Discussion was held to determine the organizations to provide further support to the processing center.

• The deputy governor tasted the potato chip and confirmed that the quality is sufficient. However, he pointed out that marketing of the potato chip was not verified during the project period and asked that SEARAP to continue its support for six months. He insisted to nominate the organization to provide further support after this period.

• A request was made to the SEARAP Project Team to contact JICA to seek possibilities for extended support, which later turned out impossible due to security reasons. PRRD was also instructed to confirm the possibilities of extended support with MRRD.


Date: 30th April 2013 Participants: SEARAP Project Team, PRRD, DAIL, AREDP, Participant Farmers Major Contents Discussed:

• A workshop was held to evaluate the current situation of the dairy processing center. Achievements of the pilot project were presented and discussed with the participant farmers.

• It was confirmed that the processing center is already being autonomously operated by the participant farmers and that they are gaining considerable amounts of profit and have enough savings to cover expected costs (raw material, packing material, transportation cost, etc.).

• It was concluded that the participant farmers will continue the operation of the processing center by their own, with occasional support from DAIL and PRRD.

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Date: 4th April 2013 Participants: SEARAP Project Team, PRRD, Surkhdar CDC, Project participants Major Contents Discussed:

• Discussion was held on restarting the activities of the baking center after its temporary closure in November 2012.

• In consideration of the difficulties faced during 2012, a proposal was made by Surkhdar CDC that the baking center should be operated by a male member instead of the women’s’ group for stable operation and flexible service.

• It was decided that Surkhdar CDC will contact an individual who had provided training on naan-baking to the women’s’ group in the past and discuss his interest for operating the baking center.

Date: 20th May 2013 Participants: SEARAP Project Team, Surkhdar CDC Major Contents Discussed:

• It was found that the candidate for operating the baking center had gone to Kabul and that he could not fulfill the task.

• Alternatives were discussed and it was decided that Surkhdar CDC will talk with villagers to select one trustworthy male individual to operate the baking center under contract with the CDC.

Date: 28th May 2013 Participants: SEARAP Project Team, Surkhdar CDC, Villagers of Surkhdar CDC Major Contents Discussed:

• A meeting was held to select the male individual who will operate the baking center. • Several candidates were raised by the villagers of Surkhdar CDC, and the villagers selected

an individual who is most trustworthy for the task as the final candidate. • The final candidate was invited to the meeting, and the situation and the business model of

the baking center was explained. • It was agreed that the decision of the final candidate will be made in a later meeting.

Date: 30th May 2013 Participants: SEARAP Project Team, Surkhdar CDC, Villagers of Surkhdar CDC Major Contents Discussed:

• The final candidate selected in the meeting on 28 May expressed his consent in operating the baking center under contract with Surkhdar CDC.

• It was decided that Surkhdar CDC will operate the Baking Center by contracting the final candidate, and that operation will start on 1 June 2013.

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