SUBJECT AREA REPORT 2016 Soy Value Chain Development:

Sales, Marketing and Grassroots Sector Development in Afghanistan

MAY 18, 2017

NUTRITION & EDUCATION INTERNATIONAL (NEI)

2500 East Foothill Boulevard

Pasadena, CA 91107, USA

1

TABLE OF CONTENTS

1 Executive Summary ................................................................................................................. 2

2 Background .............................................................................................................................. 3

3 Soy Market Development Strategy .......................................................................................... 3

4 Institutional Market ................................................................................................................ 4

4.1 Bahar Biscuit Manufacturing Company ........................................................................... 4

4.2 Taha Anwary Food Production Company ........................................................................ 4

4.3 Institutional Market of Government Agencies ................................................................ 4

5 Consumer Awareness .............................................................................................................. 5

5.1 Participation in Trade Fairs ............................................................................................. 8

6 Grassroots Program Support ................................................................................................... 8

6.1 Opinion Leader Training Program (OLTP) ..................................................................... 9

6.2 Village Women Food Culture Development ................................................................... 11

6.3 Cooking Demonstrations ................................................................................................ 13

7 Media advertisement and brand awareness ........................................................................... 15

7.1 Cooking Show Programs ................................................................................................. 15

7.2 Radio Broacasts ............................................................................................................... 16

7.3 Billboard Advertising ...................................................................................................... 16

7.4 Free Media Coverage ....................................................................................................... 17

8 Product Packaging .................................................................................................................. 17

9 Access Points .......................................................................................................................... 18

10 Naan Baker Project ............................................................................................................. 19

11 Market Development Centers (MDC) Establishment ........................................................ 19

12 Nutriana Sales Revenue ..................................................................................................... 20

12.1 Soy Processing Center (SPC) Purchases ......................................................................... 21

13 Impact Made In Afghanistan ............................................................................................. 22

2

1 EXECUTIVE SUMMARY

Nutrition and Education International (NEI) introduced soybeans to Afghanistan in 2003 with a

vision to eradicate protein-energy malnutrition (PEM), especially among women and children.

NEI’s mission is to establish a self-sustainable soybean industry in Afghanistan by developing a

soybean value chain, which includes seed multiplication, soybean cultivation, soybean

processing, and soy market development.

In collaboration with various Afghanistan government ministries, private sector partners, and

the UN World Food Programme (UNWFP), and with the financial support of the Republic of

Korea government, NEI continues to enhance and expand the self-sustainable soy industry to

improve food security and reduce PEM, while simultaneously improving livelihoods and the

local economy of Afghanistan.

Together with our partners, we have shown that we can achieve our vision of eradicating

malnutrition in Afghanistan. NEI’s nutrition-sensitive, agriculture value chain development

efforts are at the forefront of sustainable development thanks to our dedicated and passionate

staff who risk their lives to rebuild the beautiful country of Afghanistan. But, we are still far from

our final goal. Further expansion of our soy program is necessary in order to provide many

underprivileged Afghans with the tools they need to stand on their own feet and contribute to

the future stability of their country.

This subject area report summarizes our efforts made in 2016 toward the development,

promotion and integration of soybeans and soy products. Through a variety of strategies,

including traditional marketing and grassroots programs, NEI has made progress toward the

assimilation of soybean as part of the national diet of Afghanistan. These efforts have been

further buttressed through sales strategies, which demonstrate growing market demand across a

number of sales channels including institutional, government and retail sales. Toward the end

of 2016, NEI focused heavily on the institutional market, and expect to see strong sustainable

sales growth in 2017. We welcome your questions or comments on this report, or other aspects

of NEI’s program.

Sincerely,

Steven Kwon, PhD Nutrition and Education International steven.kwon@neifoundation.org www.neifoundation.org

3

2 BACKGROUND

Since 2003, NEI has been collaborating with Ministry of Agriculture, Irrigation and Livestock

(MAIL) in order to train farmers in poor rural communities on the health benefits of soybeans,

soybean cultivation, and the home consumption of soy foods. The soybean product market is

ripe for growth:

Soybeans are a cost effective and rich source of high quality proteins

Soybean is the only common plant food that contains complete protein, containing all

nine essential amino acids, and equivalent in quality to animal protein.

Soybean has been produced in the Far East Asia over 20 centuries.

Soybean contains 38% protein, 20% fat (mostly Omega-3), calcium and vitamins.

The structure of the soybean marketing system is pictured in figure below. After farmers harvest

soybean, they keep a portion for home use. The rest of the soybeans are sold through three

channels: the local market, directly to consumers, or to soy processing centers (SPCs):

3 SOY MARKET DEVELOPMENT STRATEGY

Since 2012 NEI has introduced nutritious and healthy soy products to the end consumers under

the premium brand Nutriana, positioned as a leading nutrition, health and wellness company.

Nutriana improves Afghans standard of living through science-based nutrition and health

solutions for all stages of life, helping consumers care for themselves and their families.

The Nutriana product line includes raw soybeans, soy flour, soy cookies, salty roasted soy nuts,

sweet roasted soy nuts, and tofu. Soy milk, recognized as a nutritious, protein-rich alternative to

dairy milk, will join the Nutriana line in mid-2017 available in four flavors - sweetened plain,

banana, chocolate, and strawberry - with the capacity of producing 40,000 pouches per day.

4

In order to generate market demand for soy products NEI used the following strategy in 2016 to

develop the market for the soy-products:

Creation of an institutional market

Consumer awareness campaigns and product sampling

Grassroots program support

Media advertisement and brand awareness

Design and development of product package

Creating access points for selling soy products (retail and wholesale channels )

Distribution of soy flour to naan bakers

Market Development Center (MDC) development

4 INSTITUTIONAL MARKET

NEI Marketing and Sales plays an active role in promoting soybeans as a high nutritious food in

various ways. We have continuously focused on both private and public institutional markets.

One of the major strategies of 2016 involved identifying private institutional partners who

produce products that would benefit from adding soy flour. This year, NEI identified two such

partners:

4.1 BAHAR BISCUIT MANUFACTURING COMPANY NEI entered into an agreement with a private biscuit manufacturing company to produce soy

biscuits under co-branding partnership with Nutriana, where NEI committed to provide soy

flour as a raw material on a regular basis. Bahar Biscuit will produce, market and distribute the

soy biscuits throughout the country.

Nutriana financially contributed toward construction modification required for soy biscuit

production. Nutriana has committed to support Bahar Biscuit Factory in product development

and has provided technical laboratory services for the assigned biscuit when needed. Nutriana

will also support in market development in collaboration with Bahar Biscuit by selling at

Nutriana selling centers in Kabul, Herat, Mazar, Nangarhar, Takhar and Kandahar Provinces.

4.2 TAHA ANWARY FOOD PRODUCTION COMPANY Similar to Bahar Biscuit, NEI entered into an agreement with Taha Anwary Food Production

Company to produce soy cookies in Herat Province. NEI will regularly supply the required soy

flour on a monthly basis, depending on demand.

As part of the agreement, NEI is developing a new cookie recipe, which includes 6% soy flour.

NEI will also support by providing technical, advisory and laboratory services during the

contract period of five years. Initially, the distribution and market development will be done by

Taha Anwary Food Production Company, and NEI will also support in selling soy cookies

through already established Nutriana selling centers in the key provinces.

4.3 INSTITUTIONAL MARKET OF GOVERNMENT AGENCIES Along with our efforts in the private sector, NEI has focused its marketing and sales to the public

institutional markets – mainly government institutions. Although working with government

5

institutions is always more rigorous and time consuming, we have invested heavily into this area

as we realize the impact that can be achieved through this channel. We have developed strong

relationships with various ministries including the Ministry of Public Health, Ministry of

Economy, Ministry of Agriculture Irrigation and Livestock and Ministry of Defense amongst

others. NEI believes continuous focus and diligence on this front will lead us to make substantial

strides in developing a sustainable soy value chain industry. As an example, we are working

towards adding soybeans into the menus and meal plans of various ministries for schools,

military, hospitals, etc. Given the potential magnitude of these markets, we are hopeful we can

secure a sizeable contract in the near future from the public institutional market.

5 CONSUMER AWARENESS

NEI conducted awareness campaigns for the general public to promote soy food recipes by

visiting shop owners and consumers and providing information on Nutriana soy food recipe

cards. This program has brought a very positive effect in promoting consumption of soybean.

This program allowed people to taste samples of soy products and soy qorma. A food

demonstration entitled “How to cook and Use Soybeans in Daily Meals’’ involved instructing

shopkeepers and consumers about ingredients selection, guiding them through each step of a

recipe and tasting a finished products. While discussing cooking demonstration with retail

partner, the team answered questions about why soybeans are the most affordable source of

protein and an important part of human daily diet.

Soy Qorma Cooking Demonstration and Sampling in Kabul

6

7

Shopkeepers Getting Soy Qorma for Lunch

8

5.1 PARTICIPATION IN TRADE FAIRS Advertising and consumer awareness serve as important functions in building awareness for soy

products. However, industry and government events provide another important way to build

brand awareness. Nutriana has introduced soy products at various trade shows and Ag-fairs in

Kabul and other provinces. NEI has also worked with a number of national TV channels for

cooking show programs, during which different soybean recipes are cooked and information on

soybean health and nutrition benefits are provided to the viewers.

NEI established marketing linkages for soy products, encouraged home consumption for soy

products, and found potential farmers associations and individual farmers. NEI also

participated in the Ag-Fair in Kabul, Afghanistan organized by MAIL Private Sector directorate

in March and October, 2016.

Farmer’s day was celebrated in Herat Province on March 20, 2016. Officials from Agriculture

directorate, members of provincial council, Acting Governor, NGOs representatives and farmers

participated in the two-hour event. Agriculture and extension directors provided information

on soybean and its importance in Herat Province to the participants and appreciated NEI’s

efforts towards Farmer’s self-sustainability and soybean cultivation in Afghanistan.

Farmer’s day was celebrated on March 21, 2016 in Nangarhar Province DAIL premises, where

the NEI team showcased Nutriana

products and provided the soybean

value chain information to the

farmers and individual customers.

The participants were Nangarhar

Governor, Agriculture Directorate,

other relevant government

officials, NGOs, private sector,

retailers and customers. The events

provided an opportunity to

introduce soybean products to the

visitors, retailers, associations and

individual farmers. Nutriana also

took this opportunity to promote

its products and services and

encourage investments in this

sector. The fairs were opened to the

general public from 8:00 am to 6:00 pm.

6 GRASSROOTS PROGRAM SUPPORT

In order to promote the use of soybean in Afghanistan’s food culture, NEI strategically

assembled community influencers such as opinion leaders, school teachers, medical staff,

Women’s Affairs staff, and community leader to inform them about the benefits of soy and to

encourage them to share this message. We have found this to be an efficient and effective

approach since they are already engaged with Afghans of all ages in both rural and urban

settings. In addition, their roles in the community carry great respect, as does their message.

9

For example, community health workers (CHWs) serve local villages through health

consultations, medicine distribution and vaccinations. NEI has trained CHWs so that they can

leverage these relationships to teach about the health benefits of soybeans, especially to women

who mainly have the responsibility of cooking and feeding children at home. CHWs are also

trained on how to conduct cooking demonstrations. CHWs provide more than training capacity

– they have local expertise and relationships that provide a more relatable approach during their

trainings. This is especially important during the hands-on cooking demonstrations where

people learn how to prepare soybeans (e.g. soaking), as well as different soybean recipes.

NEI also utilized media exposure as a strategy to reach Afghans on the benefits of soybeans.

Afghans, especially women, enjoy watching cooking shows on TV to learn about new recipes.

This type of public outreach is an efficient way to introduce soybean and different soy-based

foods and shows people how to cook soy foods in a creative way. The public is also exposed to

the versatility of soybean in a variety of recipes. Social media also attracts a number of Afghans,

especially youth. There are more than two million Facebook users in Afghanistan. Therefore,

NEI promotes soybean cooking show videos on Facebook, where they can watch these

demonstrations at any time. Interesting pictures and videos on Facebook are usually shared and

circulated by viewers. These pictures and videos draw people’s attention to the soy cooking

show videos.

6.1 OPINION LEADER TRAINING PROGRAM (OLTP) In 2016, NEI conducted 51 OLTPs reaching 3,076 beneficiaries (2,239 women and 837 men) in

nine provinces of Afghanistan: Herat, Balkh, Takhar, Samangan, Kabul, Laghman, Nangarhar,

Jawzjan and Parwan. Beneficiaries came from diverse work sectors, including medicine,

education and government. The beneficiaries were trained on malnutrition to understand its

complications and impact on children, as well as solutions for preventing malnutrition. They

were then taught about soybean as a high protein food that is a practical and cost effective

solution for defeating malnutrition. Finally, they were exposed to soy food recipes, including

preparation. To quantify the impact of this training, NEI conducted a pretest beforehand to

gauge beneficiaries’ understanding regarding presentation topics. After the training,

beneficiaries retook the test, which showed significant increases in their understanding

regarding malnutrition, soybeans and recipes from almost 30% to 95%.

Cooking demonstrations were an integral part of training, giving beneficiaries an opportunity to

learn how soybean foods are cooked and taste. Different soy products such as soy cookies, soy

nuts (sweet and salted), and tofu were served as snacks during the training. Taste result sheets

were given to the beneficiaries to rate the soy foods. The results showed a positive response to

the taste test of most items, including intent to purchase for home consumption. For example,

at the Aisha Durrani High School OLTP training, beneficiaries rated soy cookies and soy nuts as

“very good” and tofu as “poor”. This may be due to the distinct taste of tofu, which does not

appeal to the Afghan palette. In contrast to tofu, beneficiaries enjoyed soy adaptations of

familiar dishes. For example, qorma is a common dish in Afghanistan, usually made with kidney

beans, vegetables or meat. The taste of soy qorma is not drastically different from other kind of

qormas, and as a result, soy qorma was rated as “very good”. The following photos were taken

during the Aisha Durrani High School OLTP training.

10

OLPT Training at Aisha Durrani High School

Soy Recipe Presentation

11

6.2 VILLAGE WOMEN FOOD CULTURE DEVELOPMENT NEI has found that the most effective way to

bolster soy food outreach and home

consumption is through direct engagement

with the people, especially women of local

villages. NEI reached these beneficiaries

through local community health workers

(CHWs), who deliver health messages and

supplies from the Ministry of Public Health to

the people in the villages. NEI partnered with

this Ministry to connect with CHWs for

training in eight provinces. NEI trained 200

CHWs on malnutrition, its complications and

impacts on children, and solutions for

preventing malnutrition. Soybean was

introduced to CHWs as a high protein food, which is a practical and cost effective solution for

defeating malnutrition. Training also included soy food recipes.

NEI provided soybean and soy flour to CHWs for distribution to poor women in their villages.

Each CHW received 200 kgs of soybean and 200 kgs of soy flour and distributed 10 kg of

soybean and 10 kg soy flour to each family to a total of 20 families. CHWs also watched cooking

demonstration during their trainings so that they could teach the village women. During

trainings, CHWs tasted and rated soy products such as soy cookies and soy nuts. CHWs had the

same response as OLTP beneficiaries for the taste of soy qorma and other soy products. They

rated all of the food and products as “very good” except tofu. After these trainings, CHWs

reached out to poor women in their villages to share their knowledge on soy recipes and soy

home consumption.

Bread, in Dari language naan, is consumed by Afghans almost three times a day during

breakfast, lunch and dinner, and is an integral part of village people’s food. Naan is baked in

traditional stove. Village women were trained by CHWs on making soy naan by adding 10% soy

flour to 90% wheat flour and preparing other kinds of foods using soybean. Village women liked

the result of this process, stating that that soy naan stays softer than 100% whole wheat naan.

This is due to the oil content of soy flour. The NEI agriculture team and agronomists shared this

information with soy farmers, as well as the nutritional benefits for their children.

After receiving the training, village women were motivated to cultivate soybean on their own

land and encourage their neighbors to do the same. When Mr. Karimullah, a farmer in Loy Aba

village of Faizabad, Badakhshan, was asked whether he is cultivating soybean, he responded

with a smile, saying “Please don’t just ask me about cultivation of soybean, but ask me how

much soybean I consume at home? Not just I, but my neighbors and relatives are also getting

benefits of soybean consumption”.

NEI developed 14 recipes, but CHWs made additional suggestions. For example, mantoo is a

traditional Afghan food made from dough and meat. They suggested that since soybean is

healthier than meat, they would like to see a soybean version of this recipe. The following photos

show activities related to the Village Women Food Culture Development program.

12

ChWs Cook Soy Qorma to Teach Cooking Practices And Train The Village Women

10 Kgs of Each Soybean And Soy Flour Are Distributed To Needy Families

13

6.3 COOKING DEMONSTRATIONS Cooking demonstrations are conducted during OLTPs and grassroots trainings to CHWs to

show the beneficiaries how to cook soybean recipes and to increase people’s awareness on

soybean home consumption and its health benefits. Demonstrations are also broadcast through

local media in order to reach as many Afghans as possible and teach them how to adapt soy into

staple dishes.

The cooking workshops provide the beneficiaries an opportunity to be engaged in cooking

soybean and give feedback to improve recipes.

Soy food recipes explained during the workshops are:

Soy Qorma: Qorma is usually prepared from vegetables,

meat, kidney bean and other legumes. Qorma is usually

served at lunch and dinner. Soy qorma prepared from

soybean, tomato, onion, green pepper and garlic provides a

fair amount of protein. If served with soy naan, it provides

15 grams of protein per serving.

Soy Palaw: Palaw is a popular traditional Afghan dishes.

Palaw has been served for hundreds of years in

Afghanistan. It is prepared mainly from rice with beef,

lamb and raison. Soy palaw made from rice and soybean

provides healthy protein.

Soy Halva: Halva is mainly prepared from wheat flour

and served at breakfast. Since halva is a very soft and semi-

solid food, it appeals to children. One serving of soy halva

prepared from soy flour provides 15 grams of protein and

polyunsaturated fat (omega-3 fatty acids), which helps

children build strong bones, muscles, and immunity with

low cost.

Other Soy recipes explained during the trainings are; soy

spaghetti, soy bologna, soy pakawra, soy sabzi, soy dalda,

soy sambosa, soy cookies, soy bread (naan), and roasted soy

nuts (sweet and salty).

The following photos show cooking demonstrations during

OLTP.

14

Cooking Demonstration during OLTP

Participants Eating and Tasting Soy Qorma

15

7 MEDIA ADVERTISEMENT AND BRAND AWARENESS

Advertising serves as an important function to influence consumer behavior. Therefore we

predicted considerable increase in sales of soybean during and after advertising campaign.

The average soy products sales for from January to October 2016 was $ 11,772 USD per month.

Sales for the month of November and Decembers (during advertising) were $15,057 and $17,601

respectively, which shows 38 % average monthly sales increase. Outcomes of sales are consistent

with advertising positively impacting the demand.

7.1 COOKING SHOW PROGRAMS Cooking show programs were broadcast live afternoons from 5:00 pm – 6:00 pm. A

professional chef taught viewers how to cook different soybean recipes. The anchor explained

the steps in preparation and provided details of recipe and recipe preparation. The objective of

these cooking shows was to show low income families to be able to prepare these soy dishes at a

very low cost.

A total of 26 cooking shows with 24 minutes airing time aired. The cooking show programs

included the following promotions:

Ads in prime time sponsor program;

2 scrolls 10 sec each during the sponsor program;

Promos in 24 hours;

Anchor talked soybean health and nutrition benefits;

NEI representative attend some of the cooking programs and talked talk about soybean

health and nutrition benefits;

Nutriana products were placed on the table during the show;

The programs repeated for the next day;

16

7.2 RADIO BROACASTS In 2016 Afghan farmers produced a larger than expected crop of soybeans. Therefore NEI

encouraged increased consumption by farmers and rural households in order to further bolster

soybean consumption. The following radio message was developed and aired through local

radio station at 17 provinces, where more soybeans were grown by farmers.

Lubia-e-Soybean is rich in protein which can help you and your children have

strong muscles, bones and brain. Lubia-e-Soybean will help you and your

children be healthy and prevent sickness. You can bake soy naan (one part soy

flour and 9 part wheat flour) and cook delicious qorma, boloney, palaw, sabzi,

spaghetti and other dishes from lubia-e-soybean but please keep in mind to soak

lubia-e-soybean for one day before cooking. It can replace meat to reduce blood

fat (cholesterol). Soy naan makes you and your children healthy. Your brothers

cultivate Lubia-e-Soybean in your village. You can buy soybean from them.

Local shopkeepers can also sell soybean cultivated in their village. Eat Lubia-e-

soybeans for a strong and healthy life!

7.3 BILLBOARD ADVERTISING During the month of December a total billboards were installed around Kabul city focus on

soybean where also helped to have positive impact on sales and consumer awareness mainly on

soybeans.

17

7.4 FREE MEDIA COVERAGE NEI invited different print and electronic media agents and reporters to record and broadcast

documentaries, news reports, economical news. The NEI team also conducted various

interviews with different TV and radio channels to promote Nutriana products, introduce

soybean as a healthy legume and provide health and nutrition benefits of the soybean to general

public.

8 PRODUCT PACKAGING

The design work for soy milk packaging (four flavors), soy biscuits, texturized soy protein (TSP)

and soy cookies were completed in 2016. The soy milk nutritional facts statement are used from

the initial formulations tested by the NEI food technology team. Nutritional facts for other

products will be added to the packaging after the test trials. The nutritional facts for soy milk

will be modified for commercial production based on actual trials in Kabul.

Packaging plays important role in protecting products for distribution, storage and sale. During

the year 2016 Nutriana also launched packed 500 gr raw soybean, and sweet and salty soy nuts

both at 500 gr and 100 gr packaging to the market.

18

9 ACCESS POINTS

To leverage increasing demand and production of soybean products, in 2016 Nutriana started to

identify and make contact with retail Access points in both Kabul and other provinces. The

main purpose of this approach was to provide soybeans and soy products for shopkeepers and

grain stores in order to make the products more accessible to the end

These access points are selling soy products, especially raw soybeans that the team provides

them in 20Kg units to be sold by the shopkeepers to consumers at any quantities they choose.

This program ran from October to November, and resulted in 200 Retailers in Kabul to whom

NEI distributed 7.5 MT of soybean, and 86 access points in other provinces: Nangarhar, Mazar,

Herat and Takhar. The campaign has proven successful as access points are reordering soy

products.

Signing Up Access Points for Selling Soybean at Local Grain Stores

Distribution of Retail Racks for Stores and Supermarkets

19

10 NAAN BAKER PROJECT

Wheat naan is a staple food found in the Afghan diet. Although filling and affordable, wheat

naan is not a highly nutritious or protein-rich. NEI’s research has proven that replacing 10% of

wheat flour with soy flour increases absorbable protein by 90% while providing the essential

vitamins and minerals necessary for healthy bone and muscle development. As a result, Afghan

consumers could meet their daily protein requirements simply by eating soy naan at each meal.

To capitalize on this opportunity, beginning in 2014, NEI started distributing blended

soy/wheat flour to naan bakeries in Kabul city at no charge. NEI suggested naan bakers replace

10% of wheat flour with soy flour in their naan recipes to make new soy naan. Although there

were some initial product challenges, by mid-2016, the soy naan program had expanded to 315

naan bakers in Kabul, Nangarhar, Mazar-e-Sharif (Balkh), and Herat, Takhar, and Parwan

provinces. Nutriana has distributed 116 MT of soy flour to local naan bakeries from November

2015 to November 2016 in the mentioned provinces. The following chart indicates the amount

of soybean distributed in each region:

Location Quantity (KG) Sales (USD)

Central Kabul 47,567 $26,178

Herat MDC 21,880 $12,034

Nangarhar MDC 15,460 $8,503

Mazar MDC 24,920 $13,706

Takhar MDC 6,240 $3,639

Total 116,067 $64,060

11 MARKET DEVELOPMENT CENTERS (MDC)

ESTABLISHMENT

Since 2012 Nutriana has expanded its services to major cities of Afghanistan to provide and

make the soy products available and accessible to end consumers. These centers are operated by

our regional sales team in order to increase demand and generate market for soy products, as

well as provide Afghan consumers information about health benefits of soybean and its uses.

In 2016 Nutriana extended its coverage by establishing three new centers in Takhar, Mazar and

Kandahar. By end of 2016 NEI had six MDCs in the six major provinces of Afghanistan. Sales

from November 2015 to November, 2016 totaled $13, 714. Sales by MDC are below.

$0

$20,000

$40,000

$60,000

Central Kabul Herat MDC Nangarhar MDC Mazar MDC Takhar MDC

Nutriana Sales Income, November 2015 - November 2016

20

Market Development Centers

12 NUTRIANA SALES REVENUE

Nutriana is involved in the promotion of soy products to stakeholders at all sales channel points.

However, ultimately, its success is measured by consumer sales. Nutriana faced challenges in

creating profit and actual income in the first half of 2016. By signing up wholesalers, retailers,

distributors and outside sales reps toward the end of the year, Nutriana sales were impacted

positively, as seen in the following charts.

21

Top Five Nutriana Products, Based on Sales Income

Ref Product USD Unit Sales

1 Soy Flour to Bakeries (kg) $64,060 116,067

2 Soy Cookies (packs) $49,967 39,057

3 Soybean Raw to Retailers (kg) $7,432 9,780

4 Soy Flour (500 gr) $4,780 8,249

5 Soybean Raw (500 gr) $4,752 9,054

Along with advertising there are other factors that have had a positive impact on sales, such as:

Product Availability: Nutriana product inventory in the marketplace was low prior to

start of advertising, resulting in few consumers being able to purchase. Nutriana product

availability increased around the time of advertising.

More MDCs/Retailers Added: It's possible that the addition of more distribution points

where consumers can buy Nutriana products - not the advertising - was the reason for

increased sales. Here consumers simply have more opportunities to encounter Nutriana

products.

Other NTI activities: NEI presence at fairs and exhibitions, Opinion Leader Trainings,

and other events all contribute to increased sales.

12.1 SOY PROCESSING CENTER (SPC) PURCHASES From November 2015 to October 2016 NEI procured 188 MT of soy flour out of 217.8 MT from

the soy processing centers (SPCs). Due to limited market opportunities for reduced fat soy flour,

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

Nutriana Monthly SalesNovember 2015 - December 2016

22

the procurement process from Kapisa SPS was a bit lower, where around 40 MT soybeans

remained with them.

13 IMPACT MADE IN AFGHANISTAN

80% of Afghanistan’s population lives in rural areas and are engaged with agricultural activities,

and agriculture is a major industry in Afghanistan, involving a large portion of the population.

Since 2006 NEI has involved, trained and supported Afghan farmers in collaboration with the

Ministry of Agriculture, Irrigation and Livestock of Afghanistan, where different varieties of

soybeans grow throughout the county with greater output than ever before. Therefore, future

prospects for the soybean in Afghanistan are absolutely bright:

Soy protein products can be a good substitutes for animal products because, unlike some

other beans, soybeans offers complete protein. Soy protein products can replace animal-

based foods, which also have complete proteins but tend to contain more fat.

Soybeans are a good source of protein for vegetarians or people who want to reduce the

amount of meat they eat. It’s also good for rural people who cannot eat meat base

products due to low income.

Though NEI’s other outreach with farmers and opinion leaders, a considerable number

of Afghanistan people are well aware about soybean and its benefits.

NEI has put a lots of effort toward the development of a compete soybean value chain

starting for seed production, establishing soy processing factories, soybean farmers

association formation, and establishing market development centers in the key regions

of Afghanistan.

Through NEI’s efforts to develop institutional markets in late 2016, we expect strong

demand in 2017. These sales partnerships are valuable due to their high volume and

regularity; in additional, these purchases have the potential to spread the reach of

soybean consumption nationally.

59

38.8

56

44

12.87.2

67.8

49.546

7.1512.5

5

NangarharFactory

ParwanFactory

Herat Factory KapisaFactory

TakharFactory

KunduzFactory

2015-2016 Soy Flour (SF) Target and Achieved - SPCs

SF comitment with SPCs- MT SF produced by SPCs - MT