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Social enterprise model gives new life to apple biz - China Banner Slitter - China ECO Solvent Prin by grass lawn





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Social enterprise model gives new life to apple biz - China Banner Slitter - China ECO Solvent Prin by
Article Posted: 01/04/2013
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Articles Written: 975
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Social enterprise model gives new life to apple biz - China Banner Slitter - China ECO Solvent Prin


 
Business,Business News,Business Opportunities
Apples can be stored in this facility, which has a capacity of1,000 tonnes, for six to nine months. Stichting Het Groene Woudt (SHGW), a Dutch foundation, and FreshFood Technology (a Dutch company) invested Rs 15.5 crore to set upthe storage facility. The local logistics were provided by ShriJagdamba Samiti (SJS), an Uttarakhand-based NGO. The business isbased on a social model in which the shares of all the companieswill eventually be transferred to farmers.

SJS helped in setting up four companies of farmers from differentapple zones of the Garhwal region. A separate company, HimalayanFresh Juice Pvt Ltd, was set up for producing juice from C-gradeapples. "This is entirely a social model for doing apple business,where farmers are getting a better price for their produce.Moreover, we have effectively removed middlemen," said LaxmiPrakash Semwal, the head of SJS. One of the guiding principles of the project is that farmers arenot merely beneficiaries but an equal business partner of these sixcompanies.

"This is the first cold storage exclusively forapples in the entire Garhwal region," said Semwal, whose NGOtook the initiative to bring the Dutch players intoUttarakhand"s apple belt. The apple project consists of four decentralised apple collectioncentres in the Garwhal region. Farmers are encouraged to join thecooperative through which they can process and sell their producejointly at better prices. A joint venture company comprisingfarmers and the Dutch players has been set up for procuring applesfrom different areas.

In the first season after the installation of the CAS, the appleswere sold at an average price of Rs 92-93 per kg in the market,against the average procurement price of Rs 50-55 per kg. Farmersgot Rs 20-25 per kg more than they used to get from middlemenearlier. A total of 800 tonnes of apples was procured, of which 300 tonneswere sold immediately, 400 tonnes were stored in the CAS and 100tonnes were processed for fresh juice. But it was the CAS facility that totally changed the businessscenario.

After deducting various expenses like electricity billsand transport, the net profit was around Rs 40 lakh for the companyowning the CAS, from where nearly 400 tonnes of apples were sold.Farmers are being given a price premium of Rs 5 per kg, amountingto a total of Rs 20 lakh (that is, half of the net profit). The rest of the profit will go to a social venture fund of thejoint venture company where farmers will get shares of the CAS andthe money will be utilised in setting up new businesses."This is a self-perpetuating model where farmers will havethe option of exploring new businesses in future," saidSemwal. Despite stiff competition from Kashmir and Himachal Pradesh, thedemand for varieties like the Royal Delicious, Red Delicious andGolden, grown in the Tyuni-Nogaon-Harsil belt of Uttarakhand, isgrowing across the country.

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