Mohammad Habibzai, a 40-year-old entrepreneur who grew up in Pakistan as a refugee, has made targeted investments to address local development challenges in Nangarhar province. 

Situated on the border with Pakistan, the province has seen a significant influx of returning refugees and hosts a large number of IDPs.

Nangarhar’s economy is largely driven by agriculture, with many residents engaged in farming and livestock. Dairy products form a core part of the local market. However, dairy items processed at the local level often lack technical input and do not meet quality standards. As a result, these perishable goods spoil quickly, leading to financial losses for farmers and producers. To address these issues, Habibzai established Melma Dairy, a small processing facility near Jalalabad. He imported machinery and equipment from neighbouring countries and began purchasing surplus milk from local farmers. The facility produces yogurt, cheese, buttermilk, cream and pasteurised milk, which are sold in the local market.

While the enterprise initially grew, it encountered setbacks due to the COVID-19 pandemic, political instability, and competition from imported dairy products. Recognizing the need to improve product safety and quality, Habibzai sought to upgrade his processing line through modern equipment.

Following engagement with the Special Trust Fund for Afghanistan (STFA) Joint Programme (JP), Habibzai was selected for financial support. In March 2024, his enterprise received funding to procure key machinery, including a shrink-wrap machine, air compressor, and freezers. This investment increased production capacity, improved product quality, and created employment for 10 additional workers – bringing the total workforce to 26. “Empowering farmers isn’t just business; it’s building a future.” He said with smile.

Melma Dairy sources milk from 750 women farmers in rural areas, purchasing it at a rate of AFN 35 per litre and selling to local retailers at AFN 45. With improved packaging and quality control, the enterprise has expanded its customer base to include restaurants, hotels and grocery stores, ensuring greater profitability. Drawing on his experience in livestock and skills in production, marketing and team management, Habibzai continues to strengthen Melma Dairy’s role in supporting local livelihoods and resilience in Nangarhar province.