Dairy Industry Revitalization in Afghanistan (DIRA)
In Partnership With Land O'Lakes
Parwan Province, Afghanistan

Start Date: September 2004 - In partnership with Land O'Lakes, Inc. (LOL)
Purpose: Implementing a capacity building (training, improving animal health, breeding, feeding and milk productions) project for over 700 farmer families in Parwan Province as a subcontractor to LOL on a USAID-funded project.
Status: Trained and employed 9 female extension and 4 veterinarians; built one of the 3 milk collection and processing centers. Farmer cooperative has been formed to operate the centers; veterinary clinic established. Kunduz office is being established and work plans have been developed to replicate the Parwan project.

History and Overview

Livestock, cattle, horses, donkeys and small ruminants are well integrated and play an important role in traditional Afghan farming systems. Animals are a main means of livelihood security, and relevant capital that can be monetized if necessary. With an average of 1.36 cattle per family (0.4 milking cows, providing an average of 2-3 liters per cow) the majority of households in the Parwan province, both rich and poor, have diversified income sources and many are involved in a combination of farm and non-farm activities.

A period of political instability and a long-lasting drought have seriously affected the livestock sector. The numbers of cattle in Afghanistan were depleted and animal health and breeding services, as well as the processing and marketing of livestock products, collapsed long ago. The health of existing cows in Parwan appears poor and epidemics of different diseases are frequent.

However, in Parwan there currently are efforts underway, supported by international agencies, to develop the district’s animal health capabilities and services through the establishment of Veterinary Field Units (VFUs). In addition, US-ARC will work with farmer groups to improve access to animal health and veterinary services, lower the cost inputs through group purchasing, and improve farm management skills.

In September 2004, USAID awarded a grant to Land O’Lakes to revitalize the dairy industry in Parwan through the establishment of supply and distribution chains, with US-ARC and the Aga Khan Foundation Afghanistan as sub-grantees and implementing partners.

Project Identification

The Dairy Industry Revitalization in Afghanistan (DIRA) project, headed by Land O’Lakes (LOL), was proposed as an initiative to significantly expand Afghanistan’s raw milk base through assistance with herd improvement and the provision of technical assistance and training to rural households with members who have dairying as a family tradition. The project aims to develop a long-term viable market or a "market pull" for the sale of raw milk produced by farmer families, by taking part in the construction of the "Mountain Pastures Dairy" in Pul-i-Khumri, Baghlan, and to promote the widespread development of the dairy industry in Afghanistan through marketing, potential organization of a national dairy industry association, and possible advocacy and lobbying on behalf of the industry to promote favorable legislation.

Project Development

The project proposal consists of a three-phase approach: i) expanding milk supplies via farmer groups; ii) creating demand for raw milk supplies; and iii) promoting and developing the dairy industry. US-ARC’s role will be crucial during the first and second phases of the project, from identifying the participating farmers in an assigned region, to creating demand for raw milk supplies in and around Kabul. US-ARC’s primary responsibility will be to create farmer associations, with Land O’Lakes’ assistance, and involve them in the initial supply chain to the dairy plant.

Project Implementation

US-ARC will assess the current cattle population in Parwan to determine what needs to be done to either increase the numbers or make the current cows healthier. This field assessment will also determine the participation of the framer groups in this project. Currently, the farmers sell their raw milk to other villagers; the DIRA project will assist them in not only taking care of their cows, but to consolidate their supply with the other farmers in order to gain a profit. The farmers will be taken to the site of the dairy farm in an effort to convince them that this is a legitimate endeavor. After their trust is earned, some of the farmers will travel to Albania to visit an existing dairy project involving local farmers to exhibit the benefits of forming farmer groups.

Budgeting

Up to 20% of the projected budget will go toward indirect costs, while the rest will go directly toward the project. By the end of the first year, US-ARC may need to approach other funders for additional funding to cover any gaps that may become present. True to our mission, US-ARC has hired a professional Afghan-American agriculture expert to fill the Project Director position and return to Afghanistan and implement this project. The Council has also hired a Project Coordinator in the Virginia office to oversee the budget and reporting requirements to USAID. US-ARC is confident that it has assembled the right team to ensure the success of this endeavor.

Monitoring and Evaluation

Every six moths, a member of US-ARC will make a field visit to the Parwan province to assess the progress of the project. The Council will confirm that the expenditures are within budget and address any problems that it may encounter. Upon return to the United States, the US-ARC member will file a formal mission report so as to record his or her findings. The Project Director will be sending headquarters a detailed quarterly report highlighting the project’s progress and upcoming tasks. This will be reviewed and cleared by the Project Coordinator before sending a copy to LOL to include in their reporting to USAID.

Conclusion

US-ARC will deem this project a success knowing the following objectives have been met: i) daily milk output has increased; ii) raw milk is being stored in clean cooling tanks and ready for pick-up by the dairy plant; and iii) farmer groups have the capacity to function as a business entity to be able to negotiate for a fair price for their milk with the Dairy plant. This project can be considered as a model to replicate in other regions around large urban centers, such as Herat or Khandahar.