Pomegranates and Olive Branches: UK Company Inks Deal to Buy Fruit from Afghanistan

UK-based pomegranate juice company Pomegreat Ltd. has become the first international company to purchase any form of fruit juice from Afghanistan, committing to purchasing a minimum of 500 tons of pomegranate concentrate and 500 tons of fresh fruit from Omaid Bahar Ltd., Afghanistan's first fruit processing facility.  The deal is worth an estimated 3 million GBP (about $4.5 million) through 2011.

Pomegreat is paving the way for international companies to begin trading with Afghanistan, despite the obvious issues.  The country once famous for its pomegranates, before years of war cut trade routes and forced the loss of traditional markets, is slowly regaining its position with the help of international aid forces who are working to restore old trade routes that were once broken. 

Omaid Bahar is Afghanistan's first fruit processing facility, based in Kabul. Opened in October 2009, with the support of the U.S. Agency for International Development, the facility hopes to produce and export fruit concentrate and fresh fruit to all global markets.  Omaid Bahar will buy fruit from 50,000 Afghan farmers for its processing and export facility. 

Adam Pritchard, Chief Executive of Pomegreat, believes that the Afghan pomegranate is the best in the world and finds the quality of the fruit from Omaid Bahar to be superior.   Pritchard explains that the deal was in the works for about five years, and the Afghan facility will supply 10-20% of Pomegreat's needs for the first year, increasing annually.  Pomegreat also imports pomegranates from China, Iran, Turkey, and Spain.  

"At the end of the day," Pritchard admits, "it wasn't that challenging.  There were some logistical issues, but we found a way to overcome them."

The first batch of juice is expected to arrive in the UK during March 2010.  The pomegranate market in the UK has grown from zero to 21 million GBP ($31.6 million) in five years, notes Pritchard.

Mustafa Sadiq, owner of Omaid Bahar, said in statement, "I am proud to have built this factory and the commitment from Pomegreat gives me great hope for the future that I can fulfill the needs of international markets with our superior production of juice." 

The opium trade is still quite strong in Afghanistan, and holds a grip on local farmers.  Growing opium poppy -- the plant from which heroin is derived --  was and still is a source of income for thousands of Afghan farmers, but the U.S. Marines, USAID, and other groups are working with farmers to provide an alternative livelihood.

Pomegreat sells about 8 million litres of pomegranate juice per year, with an estimated market share of 60%. Pomegreat sells to all major supermarket chains and has helped to establish the pomegranate juice category in the UK since the company's launch in 2004. 

In comparison, in the U.S., 90% of the nation's fresh pomegranates are grown by California-based POM Wonderful LLC, with a relatively small percentage imported.

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