Agribusiness Support Fund

A company set up under section 42 of the companies ordinance 1984

 Agribusiness Support Fund
A company set up under section 42 of the companies ordinance 1984

Corporate Structure

Incorporated under Section 42 of the Companies Ordinance,

as a not-for-profit public Company.

An independent Board of Directors

- Five from the private sector
- Three from the public sector

Part of the Agribusiness Development & Diversification

project executed by (MINFAL).
 Agribusiness Support Fund
A company set up under section 42 of the companies ordinance 1984

ASF Concept

International experience indicates that the viability and

profitability of agribusiness enterprises depends on the
speed at which they are able to build within themselves
the different skills, know-how, expertise, and market
understanding required by a fast-changing economic
environment.

An effective method for building these capacities within

the agribusiness enterprise is to buy in external BDS.
 Agribusiness Support Fund
A company set up under section 42 of the companies ordinance 1984

Mission:
To support economic growth and employment
generation through agribusiness development.
 Agribusiness Support Fund
A company set up under section 42 of the companies ordinance 1984

Focus

Overall focus of the ASF is to strengthen and support demand-driven

private sector service delivery mechanisms throughout the agribusiness
value chain including supply inputs, production, processing, and market
access for domestic and export markets.
 Agribusiness Support Fund
A company set up under section 42 of the companies ordinance 1984

Focus
VALUE ADDITION
 Agribusiness Support Fund
A company set up under section 42 of the companies ordinance 1984

Focus

The specific focus is on

horticulture and
hortibusiness and
livestock and dairy
business.
 Agribusiness Support Fund
A company set up under section 42 of the companies ordinance 1984

Specific Objectives

To enable agribusiness enterprises to effectively

utilise business development services (BDS) to
enhance productivity, product and market
diversity and penetration, and profitability.

To enhance BDS providers’ capacity to reach

agribusiness enterprises through the delivery of
varied and effective services.
 Agribusiness Support Fund
A company set up under section 42 of the companies ordinance 1984

Categories of ASF Grants:

Any service that leads to outputs for a new, specifically identified
market or that develops new products or adds value to existing
products are eligible for ASF funding. ASF grant funding is
broadly categorized as follows:
Capacity building and related assistance to agribusiness
enterprises and for start-up enterprises. The grants are provided
to agribusiness enterprises for purchase of BDS.
Support to private sector BDS providers to enhance the
availability and quality of services to agribusiness enterprises.
Support to individual farmers and farmer groups for the formation
of agribusiness enterprises that can then obtain ASF support for
eligible services.
Demand-driven research by private or public institutions leading
to enhanced quality production and improved production
processes, or to meet an identified market demand.
Development of private sector extension services to be provided
to farmers serving or proposing to serve agribusiness enterprises.
 Agribusiness Support Fund
A company set up under section 42 of the companies ordinance 1984

GRANT MECHANISM

• Eligible enterprises are required to

finance 50% of the cost of services
employed; the remaining 50% will be
contributed by the ASF as a grant on a
reimbursable basis.

• The ASF finances 100% of the costs

of farmers’ group enterprise
formation.
 Agribusiness Support Fund
A company set up under section 42 of the companies ordinance 1984

Conditions

Need to demonstrate that the purchase of such

services will lead to clear improvements in
enterprise productivity, market penetration, product
diversity that in turn lead to increased profitability.

Services that simply increase output of existing

products (except for clearly identified market
outlets) will not be eligible for grants and grants will
not be available for fixed asset or capital
investment.
 Agribusiness Support Fund
A company set up under section 42 of the companies ordinance 1984

ASF APPROACH:
Demand-Driven
Value-Chain Focused
Technology-Based
Impact Oriented
Sustainability
 Agribusiness Support Fund
A company set up under section 42 of the companies ordinance 1984

Examples of Business Development Service Providers

Services Providers

Inputs Input suppliers

Technical Consultants
R&D Research organizations
Market info & logistics Exporters, Brokers
Testing Laboratories
Regulatory / financial Lawyers / Accountants
Transportation Truckers / cargo handlers
Quality assurance Certifying bodies
 Agribusiness Support Fund
A company set up under section 42 of the companies ordinance 1984

EXPECTED IMPACT

Creation of commercially viable agribusiness enterprises

Meet consumer demand for product uniformity, presentation and
continuity of supply
Enhance Pakistan’s reputation for standards compliant agriculture
produce
Develop the demand for and supply of private sector BDS and
Research & Extension
Empower small farmers by developing numerous farmers’ group
enterprises
Increase access to agribusiness finance by enhancing technical,
managerial, financial and marketing skills
Generate employment, enhance incomes and alleviate poverty
 Agribusiness Support Fund
A company set up under section 42 of the companies ordinance 1984

Thank you