Quality liquorice from Afghanistan Note: This project has been cancelled because of the lack of progress and no chances for improving that situation.Liquorice is an important ingredient for candy, soft drinks and traditional medicines. Afghanistan produces high quality liquorice roots. Presently, most Afghan liquorice is exported to and processed in India and Pakistan mixed with roots of far less quality. In Europe there are only a few producers of liquorice extract resulting in high prices. The applicant and the local partner want to increase the added value of root production to its full commercial potential by processing the roots in Afghanistan and selling it as an extract or powder to the high end of the B2B market. Eventually, they want to sell it as a certified organic product to increase the value even more. The processing plant is to be built in Mazar-i-Sharif in Northern Afghanistan where extract and powder are to be produced meeting European and American standards for food safety. The applicant, Raton B.V., will design and build the processing equipment and introduce the product to the high-end customers like van Melle Perfetti. They will guarantee that the extract meets exactly the right criteria for further processing. As Raton is an equipment supplier to most of Europe's high-end candy and soft drink manufactures they are in a good position to do so. The local partner, Mohammad Sadaat Ltd., is a major company that buys and exports liquorice roots as one of its activities. They are also involved in complicated operations like mining and are capable of running a factory.The project aims to process approximately 20% (3,000 tons) of the Northern Afghanistan liquorice production (15,000 tons).Corporate Social Responsibility (CSR)The joint venture aims at the high end market for liquorice extract. It must therefore:• comply with strict quality- and safety standards. The only way to do so is to train and motivate the staff and motivate them to stay with the company and to make sure they stay healthy. All medical costs are covered by the company, including those of their nuclear family;• eventually produce certified organic extract. This means that it must comply to environmental friendly standards starting at the farms;• use state of the art equipment. This means energy and water efficient technology. Raton is a front runner in this aspect;• separate facilities to encourage women to work at the plant;• have a steady supply of undamaged roots. This can only be done by offering the farmers a fair price for their product.Impact•	Employment and working conditionsAt the end of the project 55 people are to be employed (5/15/35) and every year 100 harvesters (not outgrowers) are contracted as casual labour. Two years after the project five more people are to be employed and the number of harvesters will be doubled.There is no minimum wage in Afghanistan, but Sadaat pays at least 5 times the average wage for each group of workers. In addition they will cover medical costs and provide for a free lunch. Employees will be offered a contract with some social security package. International standards will ensure safe and clean working conditions. Women and men work completely separated from each other, making it harder to employ both groups. Sadaat aims its workforce to be 25% female.•	Innovation / Transfer of knowledgeAfghanistan has some agricultural produce that is highly valued by manufactures. The most important transfer of knowledge in this project is how to comply with international standards for safety and quality. Only then it can command its true price. It starts with the farmers and harvesters and continues to the highest levels of management. Beside this, all personnel will be trained as there are only very few skilled workers in Afghanistan left.•	Chain effectsAt least 50 farmers will benefit from the project as they will receive better prices than at present, if they comply with the quality standards of Sadaat. If the project succeeds, it means a steady income for farmers and harvesters. Especially when producing organic roots, it means that the sustainability of their farm improves. Export of extract instead of roots results in less transport. This can have a negative effect on employment.•	EnvironmentThe processing plant will use energy efficient equipment and will treat its waste water. Farmers will be encouraged to and eventually paid for organic production. The impact on environment will be positive.•	Position of womenThe impact on the position of women will be neutral or in the Afghan context positive as it allows them to have a paid job. The project aims to process approximately 20% (3,000 tons) of the Northern Afghanistan liquorice production (15,000 tons). 50 jobs will be created.