Mr. Rizvi Zaheed – Fruit and Vegetable Sector

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Transcript Mr. Rizvi Zaheed – Fruit and Vegetable Sector

Enhancing Competitiveness through Higher Productivity

KEY FACTS

 Bio-diversity of Sri Lanka offers tremendous opportunities for producing a range of fruits & vegetables  Regional markets have grown over the past decade (Maldives, the Middle East)   Enormous opportunities for processed fruits & vegetables in Europe & Asia Globalization – Year round supply of fresh & processed agri products – sustained demand    Establishment of globally-linked supply chains Quality and Innovation gaining ground Steady growth in exports from US 36 mn in 2011 to US 45 mn in 2012

PRODUCTIVITY ENHANCEMENT

• Access to and application of latest growing and processing technologies • Co-ordinated supply chains result in high value-added products • Focussed R&D to drive innovation and product development • Strengthening partnerships along the supply chain • Agricultural extension services • Cost management & improved margins

The Opportunities

• Demand for organic, exotic, fair trade & ready-to-eat products • Value added processed fruit and vegetable products • Access to insights into changing consumer demands • Standardization & accreditations • Global forums and trade fairs

HAYLEYS AGRICULTURE

 Account for 43% of Sri Lanka’s total fruit and vegetable exports and suppliers to McDonalds, Burger King, Hungry Jack’s, Subway, 7-Eleven , Heinz , Unilever and Nestle.

 Involved in large scale cultivation via outgrowers of gherkins and other fruits & vegetables such as chillies, bell peppers, jalapeno peppers, Spanish peppers, pineapple etc for the export market  Second largest gherkin exporter in Asia, processing 12,000 MT per annum and holds 62% share of the Japanese market for bottled pickles  Supplier of exotic processed fruits & vegetable to global private labels

The Sri Lanka Experience

Processed fruit & vegetable supply chain

1.

Gherkins in brine in bulk 2.

Value-added pickles in retail forms

1980’s – Pickled Gherkins in bulk Maximizing Profit + Helping Farming Community SUNFROST LIMITED Nucleus Farm Out-grower System

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Identified suitable seed varieties

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Developed other growing techniques

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Training of extension and processing staff Improving Quality of Farm Produce & Processing Techniques

How the Linkage was provided …. Buyback & Price guaranteed Market, Product & Process Information Farmer Inputs on Credit Capacity building at FARMER LEVEL Technology Transfer Presence in Remote Villages R&D in Farming & Processing New Product Development

Buyback & Price guaranteed

• A Supply Chain pulled by Buyer • Planting program to meet market/customer needs • Weekly payments through Farmer Bank Accounts

Market Information

–Increased flexibility

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Farmer awareness of their position in the supply chain

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Discuss market trends at Farmer Training Classes

Technology Transfer

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Field Extension staff - Agric. Graduates & Diploma Holders

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Extension staff trained by Experts from Dept. of Agric., Universities, Factory staff

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Farmer Training

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Training Classes

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On farm training during regular farm visits

Farmer Inputs on Credit

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Seeds, Fertilizers on Credit

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Quality and correct dosage of Inputs

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Traceability & Timely use

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Easy & reliable source of Credit to Farmers

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No security on Credit, Settlement once harvest is delivered

New Product Development

• New products to add value to local Fruits & Vegetables • Products that are popular in the market, new to local growers

R&D in Farming & Food Processing

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On farm Productivity & Quality improvements

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Effectiveness and efficiency of Inputs use (Seeds, Fertilizer, Pesticides)

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Labor efficiency

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Post harvest handling

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Improving Quality of Farmer Produce

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Upgrading Manufacturing Process

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Best Management Practices: 5S, QCC, Kaizen, Lean Manufacturing

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Cost Effectiveness

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Quality of Finished Product

Mid-1990s - Value-added pickles in retail form HJS CONDIMENTS LIMITED Focus on Finished Product Diversification – adding value to wide range of fruits & vegetables Market Links with Distributors, Food Wholesalers, Food Retailers, Food Manufacturers Improved Product Quality Accreditations: HACCP / ISO 22000 ISO 9001 - 2000 ISO 14000 OHSAS, BRC New Product Development

LINKAGES How the supply chain activities are linked (Growers, suppliers, manufacturers, distributors, and customers) Inputs Transformation

Grower/ Supplier

Sunfrost Local Farmers

Manufacturer / Processor

HJS Distribution

Distributor

Output

Customers

Global Market

Key Global Partners

KEY LEARNINGS

CONSTANT MARKET FOCUS

VALUE ADDITION & PRODUCT DEVELOPMENT

INNOVATION

EMPHASIS ON TOTAL QUALITY

SUSTAINABLE SUPPLY CHAIN