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Agribusiness Support Agribusiness Support FundFund
A company set up under section 42 of the companies ordinance 1984A company set up under section 42 of the companies ordinance 1984
Agribusiness Support FundAgribusiness Support Fund A company set up under section 42 of the companies ordinance 1984A company set up under section 42 of the companies ordinance 1984
Corporate StructureCorporate Structure
Incorporated under Section 42 of the Companies Ordinance, Incorporated under Section 42 of the Companies Ordinance, as a not-for-profit public Company. as a not-for-profit public Company.
An independent Board of Directors An independent Board of Directors - Five from the private sector- Five from the private sector
- Three from the public sector - Three from the public sector
Part of the Agribusiness Development & Diversification Part of the Agribusiness Development & Diversification project executed by (MINFAL). project executed by (MINFAL).
Agribusiness Support FundAgribusiness Support Fund A company set up under section 42 of the companies ordinance 1984A company set up under section 42 of the companies ordinance 1984
ASF ConceptASF Concept
International experience indicates that the viability and International experience indicates that the viability and profitability of agribusiness enterprises depends on the profitability of agribusiness enterprises depends on the speed at speed at which they are able to build within themselves which they are able to build within themselves the different skills, know-how, expertise, and market the different skills, know-how, expertise, and market understanding required by a fast-changing economic understanding required by a fast-changing economic environment. environment.
An effective method for building these capacities within An effective method for building these capacities within the agribusiness enterprise is to buy in external BDS.the agribusiness enterprise is to buy in external BDS.
Agribusiness Support FundAgribusiness Support Fund A company set up under section 42 of the companies ordinance 1984A company set up under section 42 of the companies ordinance 1984
Mission:Mission:
To support economic growth and employment To support economic growth and employment generation through agribusiness development. generation through agribusiness development.
Agribusiness Support FundAgribusiness Support FundA company set up under section 42 of the companies ordinance 1984A company set up under section 42 of the companies ordinance 1984
FocusFocus
Overall focus of the ASF is to strengthen and support demand-driven Overall focus of the ASF is to strengthen and support demand-driven private sector service delivery mechanisms throughout the agribusiness private sector service delivery mechanisms throughout the agribusiness value chain including supply inputs, production, processing, and market value chain including supply inputs, production, processing, and market access for domestic and export markets. access for domestic and export markets.
Agribusiness Support Fund Agribusiness Support Fund A company set up under section 42 of the companies ordinance 1984A company set up under section 42 of the companies ordinance 1984
FocusFocusVALUE ADDITIONVALUE ADDITION
Agribusiness Support Fund Agribusiness Support Fund A company set up under section 42 of the companies ordinance 1984A company set up under section 42 of the companies ordinance 1984
FocusFocus
The specific focus is on The specific focus is on horticulture and horticulture and hortibusiness and hortibusiness and livestock and dairy livestock and dairy business.business.
Agribusiness Support FundAgribusiness Support Fund A company set up under section 42 of the companies ordinance 1984A company set up under section 42 of the companies ordinance 1984
Specific ObjectivesSpecific Objectives
To enable agribusiness enterprises to effectively To enable agribusiness enterprises to effectively utilise business development services (BDS) to utilise business development services (BDS) to enhance productivity, product and market enhance productivity, product and market diversity and penetration, and profitability.diversity and penetration, and profitability.
To enhance BDS providers’ capacity to reach To enhance BDS providers’ capacity to reach agribusiness enterprises through the delivery of agribusiness enterprises through the delivery of varied and effective servicesvaried and effective services..
Agribusiness Support FundAgribusiness Support Fund A company set up under section 42 of the companies ordinance 1984A company set up under section 42 of the companies ordinance 1984
Categories of ASF Grants:Categories of ASF Grants:
Any service that leads to outputs for a new, specifically identified Any service that leads to outputs for a new, specifically identified market or that develops new products or adds value to existing market or that develops new products or adds value to existing products are eligible for ASF funding. ASF grant funding is products are eligible for ASF funding. ASF grant funding is broadly categorized as follows:broadly categorized as follows:Capacity building and related assistance to agribusiness Capacity building and related assistance to agribusiness enterprises and for start-up enterprises. The grants are provided enterprises and for start-up enterprises. The grants are provided to agribusiness enterprises for purchase of BDS.to agribusiness enterprises for purchase of BDS.Support to private sector BDS providers to enhance the Support to private sector BDS providers to enhance the availability and quality of services to agribusiness enterprises.availability and quality of services to agribusiness enterprises.Support to individual farmers and farmer groups for the formation Support to individual farmers and farmer groups for the formation of agribusiness enterprises that can then obtain ASF support for of agribusiness enterprises that can then obtain ASF support for eligible services.eligible services.Demand-driven research by private or public institutions leading Demand-driven research by private or public institutions leading to enhanced quality production and improved production to enhanced quality production and improved production processes, or to meet an identified market demand.processes, or to meet an identified market demand.Development of private sector extension services to be provided Development of private sector extension services to be provided to farmers serving or proposing to serve agribusiness enterprises.to farmers serving or proposing to serve agribusiness enterprises.
Agribusiness Support FundAgribusiness Support Fund A company set up under section 42 of the companies ordinance 1984A company set up under section 42 of the companies ordinance 1984
GRANT MECHANISM GRANT MECHANISM
• Eligible enterprises are required to Eligible enterprises are required to finance 50% of the cost of services finance 50% of the cost of services employed; the remaining 50% will be employed; the remaining 50% will be contributed by the ASF as a grant on a contributed by the ASF as a grant on a reimbursable basis. reimbursable basis.
• The ASF finances 100% of the costs The ASF finances 100% of the costs of farmers’ group enterprise of farmers’ group enterprise
formation.formation.
Agribusiness Support FundAgribusiness Support Fund A company set up under section 42 of the companies ordinance 1984A company set up under section 42 of the companies ordinance 1984
ConditionsConditions
Need to demonstrate that the purchase of such Need to demonstrate that the purchase of such services will lead to clear improvements in services will lead to clear improvements in enterprise productivity, market penetration, product enterprise productivity, market penetration, product diversity that in turn lead to increased profitability. diversity that in turn lead to increased profitability.
Services that simply increase output of existing Services that simply increase output of existing products (except for clearly identified market products (except for clearly identified market outlets) will not be eligible for grants and grants will outlets) will not be eligible for grants and grants will not be available for fixed asset or capital not be available for fixed asset or capital investment.investment.
Agribusiness Support Fund Agribusiness Support Fund A company set up under section 42 of the companies ordinance 1984A company set up under section 42 of the companies ordinance 1984
ASF APPROACH:ASF APPROACH:Demand-DrivenDemand-Driven
Value-Chain FocusedValue-Chain Focused
Technology-BasedTechnology-Based
Impact OrientedImpact Oriented
SustainabilitySustainability
Agribusiness Support Fund Agribusiness Support Fund A company set up under section 42 of the companies ordinance 1984A company set up under section 42 of the companies ordinance 1984
Examples of Business Development Service ProvidersExamples of Business Development Service Providers
ServicesServices ProvidersProviders
InputsInputs Input suppliersInput suppliers
TechnicalTechnical ConsultantsConsultants
R&DR&D Research organizationsResearch organizations
Market info & logisticsMarket info & logistics Exporters, BrokersExporters, Brokers
TestingTesting LaboratoriesLaboratories
Regulatory / financialRegulatory / financial Lawyers / AccountantsLawyers / Accountants
TransportationTransportation Truckers / cargo handlersTruckers / cargo handlers
Quality assuranceQuality assurance Certifying bodiesCertifying bodies
Agribusiness Support Fund Agribusiness Support Fund A company set up under section 42 of the companies ordinance 1984A company set up under section 42 of the companies ordinance 1984
EXPECTED IMPACTEXPECTED IMPACT
Creation of commercially viable agribusiness enterprisesCreation of commercially viable agribusiness enterprisesMeet consumer demand for product uniformity, presentation and Meet consumer demand for product uniformity, presentation and continuity of supplycontinuity of supplyEnhance Pakistan’s reputation for standards compliant agriculture Enhance Pakistan’s reputation for standards compliant agriculture produceproduceDevelop the demand for and supply of private sector BDS and Develop the demand for and supply of private sector BDS and Research & ExtensionResearch & ExtensionEmpower small farmers by developing numerous farmers’ group Empower small farmers by developing numerous farmers’ group enterprisesenterprisesIncrease access to agribusiness finance by enhancing technical, Increase access to agribusiness finance by enhancing technical, managerial, financial and marketing skillsmanagerial, financial and marketing skillsGenerate employment, enhance incomes and alleviate povertyGenerate employment, enhance incomes and alleviate poverty