VZCZCXRO5017
RR RUEHDBU RUEHPW RUEHSL
DE RUEHBUL #3172/01 2810356
ZNR UUUUU ZZH
R 080356Z OCT 09
FM AMEMBASSY KABUL
TO RUEHC/SECSTATE WASHDC 2004
INFO RUCNAFG/AFGHANISTAN COLLECTIVE

UNCLAS SECTION 01 OF 02 KABUL 003172 
 
DEPARTMENT FOR SRAP, SCA/FO, SCA/A, EUR/RPM 
STATE PASS TO AID FOR ASIA/SCAA 
USFOR-A FOR POLAD 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: KDEM PGOV EAGR AF
SUBJECT:  HELMAND AGRICULTURAL UPDATE 
 
REF: KABUL 2939 
 
¶1.  (SBU) Summary:  Governor Mangal's Food Zone program, implemented 
in partnership with the UK Department for International Development, 
is underway and slated to reach more than 39,000 farmers this year, 
a 10 percent increase over 2008.  Concurrently, the USAID AVIPA PLUS 
program is progressing on the installation of orchards and 
vineyards, slated for delivery in the January - March timeframe. 
These programs will again offer Helmand farmers attractive 
alternatives to poppy production.  Recently, a delegation from the 
Ministry of Agriculture, Irrigation and Livestock (MAIL) arrived in 
Helmand to purchase locally-grown wheat as part of a national 
program to purchase wheat then distribute it to food-insecure 
communities.  The price MAIL is paying for the wheat appears to be 
significantly higher than the prevailing market price.  End 
Summary. 
 
 
Wheat Seed Distribution 
----------------------- 
 
¶2.  (U) The PRT, Governor Mangal, MAIL and the Ministry of Counter 
Narcotics (MCN) are sponsoring the 2009 Helmand Food Zone (HFZ) 
program.  This is a follow-up to last year's successful HFZ program 
that contributed to the 30% decrease in poppy production in Helmand. 
 DFID is currently distributing wheat seed and fertilizer to 
beneficiaries across Helmand and this is slated to reach 39,640 
farmers - a 10 percent increase over last year's effort.  Farmers 
who received seed in 2008 are ineligible to receive assistance this 
year, as they were advised to keep a small amount of seed from last 
year's harvest to plant this year.  When the 2009 HFZ distribution 
is complete, more than half of Helmand's farmers will have received 
high quality wheat seed from the USG or UK. 
 
Orchard and Vineyard Program 
---------------------------- 
 
¶3.  (U) The USG's contribution to the HFZ will be the installation 
of 800 hectares of orchards and 200 hectares of trellised vineyards 
across Helmand.  The USG and MAIL believe that agricultural 
diversification is critical to protect Helmand's long-term 
agricultural income stream. Helmand's climate restricts the planting 
of orchards and vines to a short window of time, generally January, 
February and March.  USAID's Afghanistan Vouchers for Increased 
Production in Agriculture(AVIPA) PLUS program will be the primary 
USG-funded program delivering tree saplings and vines, although 
Mercy Corps and other NGOS will also participate.  These agriculture 
alternatives are very popular with Helmand farmers and welcomed by 
the local and provincial leadership. 
 
 
MAIL'S Wheat Purchase 
--------------------- 
 
¶4.  (U) A MAIL delegation arrived in Helmand on September 13th to 
purchase wheat as part of a nation-wide wheat-purchase program. 
MAIL plans to purchase 4,250 metric tons of food-grade wheat from 
cooperatives and farmers across Helmand province.  Governor Mangal 
told the PRT that he will ask MAIL to increase Helmand's purchase to 
30,000 tons and the additional amount will be stored in MAIL 
warehouse in Lashkar Gah.  This wheat can then be released to 
food-insecure communities as part of the provincial disaster 
management plan (PDMP). 
 
A Good Price 
----------- 
 
¶5.  (SBU) MAIL reported that current market prices in Lashkar Gah 
for high-grade food wheat fluctuate between 17-20 Afghanis 
($0.34-$0.40) per kilogram.  MAIL used these figures to set a fixed 
price for their Helmand wheat purchase of 20 Afghanis ($0.40) per 
kilogram or $400 per metric ton.  USG Afghan field staff report that 
the actual market price ranges from $230 to $270 per metric ton, and 
that MAIL's rates represent a significant premium over prevailing 
market rates.  Helmand's MAIL Director reported that other buyers 
across the country have expressed interest in Helmand wheat and they 
may be dispatched to Helmand to purchase wheat seed for 
distribution. 
 
 
Comment 
------- 
 
¶6.  (SBU) The HFZ wheat seed distribution is on schedule, as is 
USAID's orchard and vineyard installation program. These programs 
will ensure that, once again, farmers in Helmand are offered an 
array of alternatives to poppy.  USAID, USDA and DFID staff at the 
PRT are effectively coordinating Helmand's assistance package. 
However, overall efforts are hindered by Helmand's Provincial MAIL 
 
KABUL 00003172  002 OF 002 
 
 
office's weak acting director and less than five district-based 
extension workers.  While donors and NGOs can fill MAIL's capacity 
void in the short-term, the Helmand development community remains 
deeply concerned about MAIL's capacity to manage agricultural 
programs of similar scale in the years ahead. 
 
EIKENBERRY