______Omaid Bahar Fruit Processing Ltd
Concept Paper
For
Greeshk Distribution Center
May 2012
OMAID BAHAR Fruit Processing Ltd
Industrial Park, Sarak-e-Naw, Pullicharkhi, Kabul, Afghanistan
www.omaidbahar.com +93 786 00 2007
EXECUTIVE SUMMARY
This paper describes the idea about certain (Business Development) plan as given below, to be implemented in the Greeshk area of Afghanistan. In the current perspective of the country rehabilitation process- planning and implementation of such projects are indispensable to directly contribute to the economic growth, peace and prosperity of the country and local community. Omaid Bahar is currently own and managing two types of production facilities in Kabul i.e. Fruit Processing Facility (Equipped and Installed by Bertuzzi Italy) and Tetra Pak Plant (TBA/19 and TBA/8). Now they have realized and felt to extend these projects with addition and other related plans to Greeshk as well in order to bring more facilities, growth and prosperity for the entire community and create more business opportunities and economic growth in the country.
TBA/19
TBA/8
The company’s vision is to be economically and environmentally sustainable, socially acceptable, generates real employment and to become a model development project in the Greeshk and overall Afghanistan, which will act as a catalyst for the expansion of the fruit production sector.
Brief outline of the plans to be implemented in Greeshk;
· Fruit Juice Production facility
There is a big potential in establishing the tetra pack filling facility to supply the RTD local market which will substitute imports. Helmand grown fresh fruit i.e. Pomegranate, Sweet melons, Water melons, Apricot etc etc can be easily supplied to the facility
The current market size in Afghanistan for non alcoholic beverages is in excess of US$100 million per year. This includes nectars and fruit drink juices. This market is growing very fast (up to 15% per year), as more and more people are getting better education and are becoming more health conscious.
Currently no juice production is taking place in Afghanistan, and yet this is the largest and fastest growing industry sub-sector for processed food in Afghanistan.
· Contract Farming and Fruit collection center
Omaid Bahar Fruit Processing Facility in Kabul needs huge quantity of 10000 tons. With the help of proper contract farming and fruit collection centers will make it easy of such big supplies to Kabul Plant
Due to the fact that in the recent years there hasn’t been an agro industrial facility such as OBFPL that requires a huge fruit supply, Afghan farmers are not familiar with the business of supplying such amounts of fruit on a regular basis. There hasn’t been a single customer that required such amounts of fruit. Afghan farmers are used to providing fruit to the local markets or to traders that are exporting to neighboring countries, such as Pakistan and India. Very seldom do Afghan fruits go to Dubai, UK or US markets.
For a fruit processing facility in Afghanistan, a new way of providing the fruit to guarantee good prices, qualities and good handling practices needs to be established. That is why contract farming is needed
· Fresh Fruit Pack house for export
Will benefit and make easy export of quality fresh fruit producing in the area. The fruits that are intended for export are pomegranates, apples and apricots.
· Farmers Training Center for post and pre-harvest handling and production increasing.
The company plans to employ agronomists to aid farmers achieve the highest possible yields, thereby further improving their livelihood. The role of the agronomists will be to educate the farmer on post harvest handling to ensure that the factory receives products in prime condition.
An added benefit of this training is that the farmer will by adopting the lesson learned to improve his yield and income on other products not supplied to the factory. Currently the export of Afghan fruit is limited due to the poor post harvest handling. Any farmer embracing the best techniques will see an immediate pricing benefit
· Milk Yoghurt production facility
· Modern demo farming- by using up to date equipments and technology
· Cold storages for supply of Fruits and Yoghurt
PROJECT IMPLEMENTATION STAGES AND TIME FRAME
Above all plans will be developed and implemented in 2 phases within 4 years of time
Phase 1
Following plans will be implemented in phase 1 in the period of 1 year (From October 2012 to September 2013);
· Fruit Juice Production Facility
· Fresh Fruit Pack House for export
· Milk Yoghurt Production Facility
· Cold Storages
Phase 2
Similarly below given plans will be developed and implemented in phase 2 in the period of 3 years;
· Contract Farming and Fruit collection center
· Farmers Training Center
· Modern Demo Farming
PROJECT BENEFITS AND BENEFICIARIES
Upon development and implementation of the projects/plans mentioned above in the area will lead the government and people of Afghanistan, especially the farmers and their families located in the south and east of the country will be the most benefited. The direct impact of that assumption is based in the following facts:
1. Increased incomes and livelihood opportunities created for Farmers in the region
2. More temporary and permanent jobs created opportunities
3. New services provided to Farmers
4. Improvement in the living standards of the people and community
5. Providing a good model for other businesses to adopt
6. Improvement in the overall conditions for doing business
7. Will create atmosphere of education and skills
8. Increase in production and quality crops
9. Increase in export trade
10. Availability of quality products at low price in the local market
11. Economic growth, better business opportunities in the region
12. Better and modest opportunities of working for the women as well to share their financial burdens
13. About 20% women will get benefit directly and indirectly
14. About 50000 farmers and their families will get benefits directly and indirectly
Other Country Impact
1. The State of the Art, leading technology OBFPL plant is placing Afghanistan in the forefront of concentrated juice production in Central Asia, with the ability to compete internationally and to promote Afghan high quality fruits to the world.
2. Contract farming, training and extension support will boost modernization of agriculture techniques throughout Afghanistan.
3. Contract farming will give the farmers the possibility of having financial resources to procure inputs and agricultural equipment.
4. Direct job creation for farmers, transportation and other related parties in the fruit business (agricultural stores, tractor dealers, etc).
5. The OBFPL fruit demand will create an alternative livelihood for farmers away from poppy production.
6. For the first time, due to the high demand of fruit to be processed, there will be an alternative for fruits that don’t meet international standards for being exported abroad. Grades B and C could be purchased to be used as raw material for concentrated juice.
7. Last but not least, this project will improve the war environment and will ease conflict in the areas where it will have impact.
PROJECT COST
The total estimated cost of the project will be $ 10 million, where 5 million will be required for phase 1 and 5 million for phase 2
Our contribution plus grant
Project requiring funding / Source / Year 1 / Year 2 / Year 3 / Year 4 / TotalPhase 1 / Own / $ 3.5 million / $ 3.5 million
Grant / $ 1.5 million / $ 1.5 million
Phase 2 / Own / $ 5 million / $ 5.0 million
Grant / Nil
Total / $ 5 million / $ 5 million / $ 10 million
Land and Building Cost: The grant party will get the land and building from the government either on 99 years lease or purchase price
BACKGROUND INTRODUCTION
Omaid Bahar has strong and effective business and management team capabilities to develop and implement all the projects and plans successfully in the region
Omaid Bahar is a part of the Bahar Group of Companies, which has been involved and experienced in the business for the last 95 years. In 1987 the Company established an office at Dubai primarily to procure and support its Head Office in Afghanistan.
Omaid Bahar is a registered company with AISA, with Registration Number D 29111, having its Head Office at Kabul and sub offices at other major provinces in Afghanistan. Omaid Bahar is mainly practicing in the sole distribution ship of consumer goods and logistics of international quality brands for the whole Afghanistan Market.
Company also has substantial input in the export of fresh fruit to UK, USA, Middle East and Central Asia
Omaid Bahar has experienced in the production sector- running successfully Fruit Processing Plant and Tetra Pak palnt in Kabul, producing quality products (Concentrate, Puree, Nectar Juices and Drinks) from locally grown fresh fruits- Pomegranate, Apple, Apricot, Mulberry, Sweet melon, Water melon, carrots, peaches etc
The business was established by the president of the Omaid Bahar Marketing and Distribution Company (OBMDC), which is one of the leading distributors of dairy and juice products in Afghanistan. Mr. Mustafa Sadiq, founder and President of this company, has more than 30 years of experience and over a hundred years of family background in this business line. Mr. Mustafa Sadiq is currently a leading distributor, through OBMDC, (sister company) for over a dozen multinational companies, including Nestle, Red Bull, Colgate, Wrigley USA and others.
STAFF AND SCOPE OF FACILITIES
We have well trained experienced and professional staff to carry out essential services of all technical, Engineering, Marketing, Administration and Accounting. We employ over 110 people in our organization.
The company has technical customers supporting team in order to boost up market, promote and supply the products in most efficient and standard way.The Company has wide range of high standard warehouses and stores of quality environment along with best transportation and supply facilities all over Afghanistan. We have 20 vehicles for retails sale to cater consistent supply to over customers all over the Afghanistan.
THE WAY TO THE CONSUMER