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November 13, 2004

Afgan Roses?

Ironic as it may seem, the rose may be replacing the poppy as the primary agriculture export of Afganistan.

Afganistan is known worldwide for it's Poppy cultivation; the mountainous nation supplies 85% of Europe's Opium market, but with democracy comes common sense and many of Afganistan's poppy farmers are switching to a Bulgarian rose. The rose harvest can be converted into Rose Oil which is used for perfumes. The oil is high profit, easily transportable and in high demand.

While the opium market may seem to be a more lucrative venture for Afgani farmers, it's not necessarily so. The European Opium market is estimated to be around $40 Billion US per year, but only about about 2.5B of that remains in Afganistan. The bulk of the opium profits are made by middlemen and dealers, while the poppy farmers receive almost nothing comparatively.

In addition there's been the nature of the opium industry itself; Corrupt officials who may support your crop one day, can turn on you the next. Smugglers can steal your harvest, and sometimes you just simply don't get paid.

With democracy taking hold in Afganistan for the first time ever, foreign investors are flocking to the nation to take advantage of the regions strengths. In the case of the Rose, the dry climate is perfectly suited for the production of high oil-yield roses.

The rose oil industry is not estimated to completely wipe out poppy production, as where there's a market, someone will supply it. But the Rose Oil industry does have promise to displace the Poppy in many of Afganistan's best growing regions as on a per hectare basis, the cultivation of roses is up to 50% more profitable than poppy productions on the same land. Also,the risk reduction in switching to a legal and easily handled crop is further reason for the Afgani farmers to make the switch.

It's a small step, but it's in the right direction. For decades, instability has necessitated that farmers get by with whatever product they could get to market, for many years, the Poppy was highly desired by terrorists and warlords for it's ease of production and high profitability. Now that farmers can work more for themselves and strive to build a legitimate agri-business, we will hopefully see some stabilization in agricultural incomes and further development.

Most people think that Afganistan is a barren rocky wasteland. Partly true, the terrain of Afganistan is difficult to manage without significant terra-forming, but with a free and stable government developing, foreign investment will continue to flow into Afganistan. Along with foreign farming practices and infrastructure support to terra-form areas of the country for Agri-business purposes.

The Afganistan Government has the opportunity now to exploit the natural resources that have so long been denied. Substantial oil reserves in the North can now be accessed and with the use of modern extraction technology; Afganistan can have oil flowing north to the former Soviet Union, east to China and south the the Persian Gulf. The export opportunities for oil are the most attractive for Afganistan, but there are also opportunities for natural gas, coal, iron, copper and gemstone production.

I know it's probably hard to think of Afganistan and agriculture in the same thought, most envision it as a dusty desert. So to help you think of the possibilities for Afganistan in the future, I'll leave you with these two pictures.

Afganistan Agricultural Potential 1
Afganistan Agricultural Potential 2

With a little help and American "know how" we can turn most of Afganistan just as green as these areas.

--Jason

Posted by JasonColeman at November 13, 2004 5:37 PM

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