Agro Processing Sector: Jackfruit Including Business Feasibility Studies And Proposed Action Plan
The European Union’s INSPIRED Program for Bangladesh Technical Assistance to Stimulate Applications for the SME Competitiveness Grant Scheme Agro Processing Sector: Jackfruit Including Business Feasibility Studies And Proposed Action Plan January 2013 This project is financed by : The European Union Project Beneficiary : Ministry of Industries Government of Bangladesh The project is implemented by : PKF Technical Report Agro Processing Sector Jackfruit Including Business Feasibility Studies And Proposed Action Plans Intended to be Used as Source Material in the Development of Concept Notes Bangladesh INSPIRED Action Plans for the Technical Study January 2013 This document is prepared solely for the use and benefit of INSPIRED, component 2 A. Neither the authors nor PKF accept or assume any responsibility or duty of care to any third party. 2 Mohammed Hassanullah, Ph D Consultant, INSPIRED Project 3 TABLE OF CONTENT No. Subject Page 1 Acronyms 5 2 Executive Summary 6 2.1 Major Findings……………………………….6 2.2 Action Plans………………………………….6 3 Background 10 3.1 Background of the Study……………………10 3.2 Scope…………………………………………11 3.3 Methodology………………………...............11 3.4 Sources of Information……………..............12 3.5 Approach…………………………….............13 4 Proposed Action Plan for Concept Notes 14 4.1 Background…………………………………..14 4.2 The Roles of BMOs/BIOs/NGOs………......14 4.3 The existing state of data and firms……….15 4.4 Issues related to EU Guidelines……………15 4.5 Other issues………………………………….15 4.6 Action plans for the Technical Study………16 5 Key Recommendations 25 Appendix A: Technical Report on the Business Feasibility of ByProducts in Jackfruit in Bangladesh 26 Appendix B: List of Meetings 65 Appendix C: References 68 Appendix D: Budget for BIO Cluster Development Action Plan 69 Appendix E: Budget for Action Plan for JPC Development 72 Appendix F: Tentative Budget for BIO Capacity Development Action Plan 74 4 1. Acronyms BAPA Bangladesh Agro-processors Association BARI Bangladesh Agricultural Research Institute BAU Bangladesh Agricultural University BAURES Bangladesh Agricultural Research Institute Research and Extension Service BCSIR Bangladesh Centre of Scientific and Industrial Research BDS Business Development service BIO Business Intermediary Organization BMO Business Management Organization BSTI Bangladesh Standard and Testing Institute CFTRI Central Food Technological Research Institute, Mysore DAE Department Agricultural Extension ED Executive Director EU European Union FGD Focus Group Discussion HP Horse Power HACCP Hazard Analysis and Critical Control Points ICUC International Centre for Unutilized Crops INSPIRED EU Funded Project MD Managing Director MFI Micro Finance Institution MSME Micro, Small and Medium Enterprise NGO Non-government Organization PO Peoples’ Organization PRAN Brand Name of a Agro-processing Company SAARC South Asian Association for Regional Cooperation SME Small and Medium Enterprise SWOT Strengths, Weakness Opportunities and Threats UK United Kingdom VC Value Chain 5 2. Executive Summary 2.1 Major Findings INSPIRED, an EU funded project has been providing technical assistance to the Ministry of Industries of the Government of Bangladesh and the SME Foundation to support capacity development of clusters, business intermediary organizations, trade associations and other business organizations through submission of high quality applications under the SME competitiveness grant scheme of EU. The project has engaged a Consultant in order to review the scope and potential of investment in industrialization of Jackfruit, a most underutilized crop of Bangladesh, though recognized as a National Fruit. The Consultant conducted desk study, FGDs, Key Informant Interviews (KII), Value Chain Mapping, SWOT Analysis and business feasibility study leading to preparation of this report which contains methods of study, data sources, approaches, action plans, business feasibility report with cost benefit analysis and a set of recommendations. The consultant adopted two approaches to develop action plans for promoting industrialization of jackfruit such as 1) cluster development, and 2) enterprise development approaches simultaneously to make rapid progress in this neglected product sub-sector. Based on this approaches the consultant prepared three action plans viz. 1) Action Plan for CLUSTER Development, 2) Action Plan for establishment of a JACKFRUIT PROMOTION COUNCIL under a BIO and 3) Action Plan for Capacity development of the BIO implementing the action plans. 2.2 Action Plan Action Plan for CLUSTER Development constitutes such actions as 1. Organize clusters of Jackfruit Processing MICRO enterprises in Jackfruit Commercial Hubs of the country 2. Identify, display, link and assist entrepreneurs to establish common infrastructure and machinery facilities for Jackfruit Processing 3. Organize and impart training to potential technicians of the clusters for Jackfruit processing 4. Assist entrepreneurs identify market, and remain competitive through Value Chain Development 5. Organize linkages between entrepreneurs and financial institutions for financing Jackfruit processing 6. Identify and propagate industrially suitable varieties of Jackfruits in regions of cluster of Jackfruit processing 6 Action Plan for establishment of JACKFRUIT PROMOTION COUNCIL under a BIO constitutes such actions as: 1. Organize and formalize the Council for promoting growth of Jackfruit industries 2. Sourcing technologies and linking potential entrepreneurs 3. Capacity development of managers and entrepreneurs for Jackfruit processing 4. Assist entrepreneurs identify market, both domestic and export and remain competitive through Value Chain Development 5. Organize linkages between entrepreneurs and financial institutions for financing Jackfruit processing 6. Identify and propagate industrially suitable varieties of Jackfruits in regions cluster of Jackfruit SMEs located Action Plan for Capacity development of a BIO constitutes such actions as: 1. Establish network of enterprises and clusters 2. Establish electronic communication system 3. Establish information clearing house 4. Establishing a monitoring and quality control system The Consultant narrated the intensive roles to be performed by BMOs/BIOs/NGOs in order to realize the potentials of Jackfruit as the cultivation of jackfruit is dispersed all over the country but has high intensity in some districts and raised the issue of making provision of supporting a clusters with machinery and equipment as demonstration promoting private sector investment and relaxation of some of the conditionality of grant scheme as jackfruit is new sector of investment. The Consultant conducted a business feasibility study of processing jackfruits and presented the report as in Appendix A. He conducted VCA and SWOT Analysis to identify strengths, weakness, opportunities and threats of this sector as well as market mechanism, its problems and constraints in order to prescribe a set of actions. The business feasibility report constitutes justification and benefits of processing jackfruits including nutritive value of jackfruits and briefly narrated the production process of the following potential products: Pickle/Chutney Canned jackfruit Fruit leather Jam Candy/Toffee/biscuit Beverage Powder Dried Jackfruit Flacks Pulp Chips The business feasibility report includes a business plan of jackfruit processing to produce and market a number of products such as canned jackfruit, jackfruit jam, jackfruit nectar, jackfruit pickle jackfruit chips of 100 MT capacity a year at a cost of 2.70 million Taka with a net profit Tk. 0.646 million a year. It will process about 500 MT of jackfruit in a year. 7 It seems that if one-third of total production of jackfruit (1, 352, 000 MT) is brought under industrial processing there are potential of establishing about 900 small jackfruit processing industries in the country creating opportunity of 9000 permanent full time employment and many new wage earners in the process of production, procurement, transportation, processing and marketing of the products. In order to exploit the potential the key activities are to prepare business plans, access machinery, arrange human and financial resources, establish a system of identifying suitable trees and supervised procurement, adopt quality and safety requirements, set management and financial control systems, identify and promote markets of both home and aboard. Based on those studies the Consultant put forwarded the following key recommendations: Jackfruit processing is a potential new venture in Bangladesh. Experimental efforts are noticed at individual and group levels through NGOs as in Rajbari by Practical Action and by Idilpur Pineapple Cultivators and Mouchas Unnayan Samity in Modhupur as well as at enterprise level through own initiatives as by PRAN and Rajshahi Mango Products Ltd. The consultant recommends organizing micro enterprises as CLUSTER with common production and marketing facilities The consultant recommends providing technical assistance to all enterprises operating as CLUSTER as well as individual enterprises that have plans to invest. Grant winning clusters and enterprises should have linkage for credit support through Bangladesh Banks or any other MFI for investment and operational funds By-product processing should be integral part of any jackfruits investment project to avoid environmental hazards and make cattle feed, bio fuel, etc which will make the main products cheaper. Training of consultants and entrepreneurs will surely improve their skills in preparing applications. Flexibility in evaluating the application of Lot 1(a) is important for jackfruit processing. Major Findings Jackfruit product subsector is at subsistence level. Fruits are grown all over the country primarily for family consumption. Abundant production of quality jackfruits is intensified in certain districts of Bangladesh such as Dhaka, Gazipur, Tangail, Khagrachari, Rangamati, Mymensingh, Moulvibazar, Narsingdi, Dinajpur and Rangpur. Traditional value chain system operates all over the country to transport the surplus production to cities and towns for consumption of fresh fruits. Production potential of jackfruit is very high. It can be increased 3 to 5 times more as compared to present level of production if commercial plantations, small or large, are established and management practices are improved. Jackfruits processing thus provides greatest opportunity of investment for increasing employment and income 8 There are efforts of processing jackfruits at individual, group, and institutional levels e.g. some individual and groups, involved in processing other fruits, have been trying to process jackfruits Two enterprises such as PRAN and Rajshahi Mango Product Ltd. tried to process jackfruits and market processed products at enterprise level, These efforts did not become commercialized and were rather unsuccessful because there was no serious efforts to overcome the problems of accessing technologies, organizing production and procurement, improving quality, scaling up production and promoting sales BCSIR has developed some products and patented but recipes are available to entrepreneurs on payment of royalty. BARI has developed some products and recipes are available through MOU without any payment. There is no cluster in jackfruit processing. Experimental initiatives can be organized either as cluster of MSMEs or as individual enterprise. Entrepreneurs of both types aspire to get technical support for rapid industrialization of jackfruits Customers are not accustomed to consume jackfruit processed products as it is not available in the market. Some reported that jackfruit chips are highly tasty which they enjoyed in Thailand. A great deal of market promotion will be required to create domestic market. Bangladesh can also focus on export market if companies can meet quality and safety compliance requirements To realize the processing potentials awareness creation among producers, entrepreneurs and professionals is very important. They also need technical support to begin with. Initial success will stimulate business community to invest. Action plans were suggested to create JACKFRUIT PROMOTION COUNCIL (JPC) to create awareness for investment and provide technical assistance to entrepreneurs as well as to increase capacity of BIOs Clusters require support to develop common processing facilities to produce quality products. Jackfruit producers can also participate on production sharing basis for community sales and for household food security BIOs should have strong advocacy for variety development, rapid propagation of desired verities, supporting capacity development and market promotion. The institutional framework of JPC with logistical facilities of mass communication can play these roles Clusters and individuals both require financing of their enterprises through MFI and banks for investment and working capital There will be huge by-products particularly skins and non-edible parts of jackfruits. Unless by-products are processed as cattle feed or bio-fuels as integral part of the industry it will create serious problems of disposal and will create environmental hazards. By-products can be converted as excellent cattle feed and bio-fuel The BIOs should also establish quality standard, system of certification and enforcement among its members (both clusters and individual enterprises) to establish customer confidence on their products. 9 3. Background 3.1 Background of the Study PKF (UK) LLP is leading an international consortium of WYG (UK), Harewelle (UK) and SEBA Limited (Bangladesh) to implement EU funded project named as INSPIRED, which is responsible for providing technical assistance to the Ministry of Industries of the Government of Bangladesh and the SME Foundation. The project aimed at supporting clusters, sector business associations and other business organizations to submit high quality applications under the SME competitiveness grant scheme. The project also provides support for capacity building to business intermediary organizations in lobbying, advocacy, networking, public-private sector dialogue and the provision of business development services (BDS) to their members. The project commenced in February 2012 and will be completed in February 2014. The overall objective of the project is to reduce poverty in Bangladesh by supporting the development of SMEs. Its purpose is to enhance competitiveness and sustainable pro-poor growth of SMEs in Bangladesh. Support will be provided to clusters using value chain analysis, firm-level visits and technical assistance to BMOs in order to increase competitiveness in such sectors as agro processing, natural fibers, leather, plastics, light engineering, electronics, furniture and textiles. In the area of agro-processing businesses community of Bangladesh desires to understand the scope and potential of processing Jackfruits which is abundantly produced and in most cases becomes wastefully consumed as it is highly seasonal and the system of processing and preservation has yet to be established for all year round consumption. The Government of Bangladesh and specifically the Ministry of Industries has identified a number of "boosters" sectors of the economy which represent higher growth rates and can therefore, make a significant contribution to the economy in terms of value addition, employment, technology, innovation, exports and import substitution. Jackfruit is identified as one of these sectors. In the Bangladeshi case, a solid business case can be made for manufacturing a number of processed jackfruit products. Jackfruit (Artocarpus heterophyllus) is recognized as the National Fruit of Bangladesh. Jackfruit is grown in all districts. The highest volume of production takes place in Dhaka, Gazipur, Tangail, Khagrachari, Rangamati, Mymensingh, Moulvibazar, Narsingdi, Dinajpur and Rangpur. Presently, Bangladesh cultivates jackfruits in 79 thousands hectares of land producing about 1,352,,000 tons fruits in a year. Yield per hectare is 17 MT. A small quantity of about 60 MT fresh jackfruit and some seeds are exported to UK. The country has a large supply of fresh jackfruits but little has been done for industrial use and use of its by-products. It is estimated that about one-third of the production can be used for processing without affecting consumption of fresh fruits. However, it is reported that research organization such as BARI post harvest and technology division, BAURES of BAU, BCSIR, etc are conducting some sorts of research and trying to develop some products or even patented some products or by-products by BCSIR. Hortex Foundation and DAE are also promoting fruit production, processing and marketing. 10 3.2 Scope of Work India and Thailand have progressed quite far to develop and manufacture as well as export quite a few delicious products of jackfruits. In Bangladesh, over the past decade some firms have tried to enter into this field of processing of jackfruit but did not succeed. Cash flow is one problem. But technical and marketing issues remained unknown and the project would like to investigate these matters further. In this background this assessment is to explore the scope and potential of industrial use of jackfruit and institutional mechanism to support the institutions and SMEs exploiting the potential. As far as knowledge goes there is only one small company making jackfruit jams for the domestic market. But very little is known or reported. Therefore, the study has a very wide scope to investigate for identification of jackfruit products and their production process available in the country. To conduct a plausible study scope of investigation is quite extensive to come to rational decisions for investments and interventions. It includes; Conducting Value Chain and SWOT analysis of Jackfruits Identifying potential products and by-products of Jackfruits and their production process Identifying the institutional mechanism to support SMEs for processing of Jackfruits Preparing a business plan for several potential products of Jackfruits as guide to entrepreneurs Prepare action plan to support BIOs to assist their members to invest in jackfruit processing 3.3 Methodology The overall methodology of the study constitutes desk study, FGDs, Key Informant Interviews (KII), Value Chain Mapping and SWOT Analysis. The Consultant collected reports and literatures on jackfruits and study them in order to collect information on various issues and processes as well as problems and constraints of the sector. FGDs were conducted to review the concepts and opinions of different stakeholder groups. Important and experienced professionals were interviewed with predesigned check list to sieve out their experiences. Value chain and SWOT analysis were conducted for more in-depth review. However, in this respect the consultant performed the following specific tasks: 1. Visited research institutes such as Fruit Research Wing and Post Harvest and Technology Division of BARI, and BCSIR to identify products and processes developed by those institutions. 2. Visited 3 jackfruit production hubs such as Rajbari, Madhupur of Tangail, Gazipur, investigated institutions (Chambers, trade associations, NGOs) involved in or have potential to be involved in jackfruit processing to identify potential entrepreneurs and institutions, conducted FGD in Madhupur with 11 3. 4. 5. 6. 7. stakeholders and made a SWOT analysis for jackfruit sector. Due to shortage of time other hubs like Narsingdi, Khagrachari and Rangpur could not be visited. Visited Food Crop Wing of DAE, Integrated Fruit Development Project and Hortex Foundation in order to assess their associations with Jackfruits and collect production and export statistics. Interviewed the key professionals about scope and potential of processing jackfruit Visited a few private sector enterprises that are reported to process jackfruit or have potential to process jackfruit like PRAN, Rajshahi Mango Product Ltd, etc. to identify products, problems and prospect of Jackfruit industry Identified a number of jackfruit products through those visits and web search and narrated their production processes Conducted a SWOT analysis on jackfruit in Madhupur to generate factual information of a hub to identify strength, weakness, opportunity and threats associated with industrialization of jackfruit. Prepared a business feasibility report for several products considered to have the highest potential focusing on the following: i. ii. iii. iv. v. vi. vii. viii. ix. The product, its physical characteristics and what it will it be used for Machinery and technology required. The production process. Skills required, The potential size of the market both domestically and internationally. Marketing and sales strategy. Investment required. Revenue, financial projections including cost benefit analysis, income projections for the first year, break-even analysis. Environmental and government regulations affecting these products. 3.4 Sources of Information As the sector is entirely in informal sector domestic information on jackfruit is highly scarce. The Consultant collected: Production statistics from the Department of Agricultural Extension, Food Crop Wing. Trade related information is not available in any sources. Through FGD the consultant generated some information from one of the high intensive jackfruit growing area, the Madhupur Upazila which shows that there are 160,000 producers, 10,000 small traders, about 200 aggregators and 5000 retailers operating in different markets of the upazila. Producers consume about 10% of their produces and sell 90% to the neighborhoods consumer (20%), 70% small traders and about 10% to local retailers. It is reported that fruits of 50% trees are sold in advance at early maturity at 50% less prices that the normal market prices at harvest. Price spread is very high. A 100 Tk. jackfruit at farmers level is sold by local retailers at 150 Tk. and by a retailer at Dhaka retail market at 250 Tk. due to waste, high transportation cost and extortion on the way to Dhaka. 12 Besides those information sources consultant heavily relied on web search for international scenario, searching concepts and progress in other countries and technology sources. 3.5 Approach As jackfruit is still at subsistence level and there are feeble attempt to process at cottage level the Consultant adopted two approaches to develop action plans for promoting industrialization of jackfruit such as a) cluster development and b) enterprise development approaches simultaneously to make rapid progress in this neglected product sub-sector. Bangladesh has both cluster and independent agroprocessing enterprises. The independent enterprises of all over the country formed an association named as Bangladesh Agro-processors Association (BAPA) primarily as pressure group to change policies and incentive structure for growth and development of agro-processing sector. It does not include all stakeholders of value chains of agro-processing. It has neither mandate nor it is oriented /equipped to provide services to its members. As a BIO it can promote investment in Jackfruit to develop more independent enterprises in this sector. However, there are some NGO/POs which endeavoured to agro-processing initiatives through individuals as well as geographically proximate groups and small NGOs who have been trying to process jackfruits at cottage level but could not succeed due to manually operated technologies, small production, poor quality and lack market promotion. They have potential to emerge as clusters as defined by EU Guideline1. Therefore, consultant attempted to prepare action plans for both cluster and enterprise development and for capacity development for BIOs of both initiatives. 1 A cluster is a geographically proximate group of interconnected companies and associated institutions in a particular field, linked by commonalities and complementarities. Because of the shared proximity – both in terms of geography and of activities - cluster constituents enjoy the economic benefits of several types of positive location-specific externalities. These externalities include access to specialized human resources and suppliers, knowledge spill-over, pressure for higher performance in head-to-head competition and learning from the close interaction with specialized customers and suppliers. 13 4. Proposed Action Plans for Concept Notes 4.1 Background The consultant reviewed the jackfruit sector in a very short period of time and identified the scope and potentials of industrialization of jackfruit. It is in the subsistence level but some initiatives of jackfruit processing at least at the primary stage of experimentation have been identified. In order to exploit the potential the consultant prepared three action plans, one business feasibility report with a business plan of jackfruit processing as a guide for the BIO to apply for grants as called by EU funded INSPIRED project. The action plans are briefly discussed in this section of the report. 4.2 The Roles of BMOs/BIOs/NGOs in this particular Sector BMOs/BIOs/NGOs have to perform intensive role to realize the potentials of Jackfruit as the cultivation of jackfruit is dispersed all over the country but has high intensity in some districts. They need to perform the following key roles: Creating awareness among producers, entrepreneurs, and consumers about potential of industrialization of jackfruits; its opportunity to increase cultivation, improvement of cultivars in terms of taste , quality and availability year round, production of diversified processed products and use of its by-products, skin and seeds through use of mass media and policy advocacy at all administrative levels. It can play a significant role in identification of production and processing technologies and link sources with potential entrepreneurs for investment. It can create or assemble expertise to provide guidance and counselling for investment, management. It can organize and impart capacity development programs such as training, workshop, dialogues and discussions for the producers, traders, processors and consumers. It can set and enforce quality standards of both fresh and processed products through establishing quality testing facilities as well as inculcating ethical standards among its members in order to uphold the name and fame of the industry. It can peruse the government to adopt industry friendly policy for allocating fund for research and extension, incentive to producers and processors, tax and subsidies. It can act as information clearing house by obtaining and updating information of production, supply, domestic and international demand and price structure. 14 4.3 The existing state of data and firms on the ground Data scarcity is an important problem in jackfruit sub-sector due to absence of appropriate institutional arrangement and neglect. Demand for data is also absent from the entrepreneurs and professionals. EU call for proposal has inspired both BIO and entrepreneurs seeking more and more information. In this context the Consultant made one of the activities of a BIO to act as information clearing house of collection, preservation and dissemination of information relating to production, supply, demand and price of fresh and processed products of home and abroad. 4.4 Issues related to EU Guidelines Under Bangladesh condition small (replacement value Tk.15.00 million) and medium (replacement value Tk.100.00 million) enterprises if established by an entrepreneur he/she will tend to operate independently as an independent business having value chain linkages of its own stakeholders. Twenty or fifty such enterprises will not operate as a CLUSTER having common production facilities or BDS services. Such independent operations are very much common in various sectors of industry. Only MICRO enterprises are highly likely to operate as a CLUSTER if there are common facilities of production, storage and marketing. To establish such CLUSTER as the EU desire there is a need of common machinery of production. But cost of machinery has not been included in illegible cost. At least there should be provision of procuring equipment to demonstrate vacuum fryers in one or two clusters of micro enterprises. In this case micro processor or the raw material suppliers may participate on the basis of product sharing which will ensure food security of small producers and processors alike. Successful demonstration may inspire other clusters or enterprises to invest in equipment and machinery. Failure of small initiatives was due to manual operation resulting little and poor quality production which could not catch consumer trust and confidence. The consultant therefore proposes of providing machinery for cluster development of both 1(a) and 1(b) lots. . 4.5 Other issues One of the important issues is the processing of by-products such as skins, nonedible parts and seeds. Separate industry can be developed for seed but it is better that by-product processing as cattle feed or bio-fuel should be integral part of the jackfruit processing industry. In view of scarcity of cattle feed by-products can turn into the main product and make the industry more profitable and avoid environment hazard. Provision of by-product processing should also be considered in case of jackfruit clusters. 15 4.6 Action Plans for the Technical Study Action Plan for Cluster Development Action 1: Jackfruit processing clusters Background: There are scattered NGO, NGO sponsored groups as well as individual entrepreneurial initiatives to process jackfruits with business motivation but those initiatives did not lead to scale up as business due to small scale production mostly experimental, poor quality, without or unattractive packaging, poor product quality, and lake of serious effort for marketing. It is expedient to support those initiatives as a cluster of operations as defined by EU through a BIO such as Chamber of Commerce and Industries and producers or traders associations. This action plan is designed for those BIOs who intend to organize those initiatives as cluster of jackfruit processors for generation of employment and income in rural areas and make the product available throughout the year for domestic consumption as well as for selling in the local, regional and national markets in immediate future and global market if quality and standards could met their demand. Therefore, this action plan suggests establishing JACKFRUIT PROCESSING CLUSTERS to undertake following actions viz. 1. Organize clusters of Jackfruit Processing MICRO enterprises in Jackfruit Commercial Hubs of the country 2. Identify, display, link and assist entrepreneurs to establish common infrastructure and machinery facilities of Jackfruit Processing 3. Organize and impart training to potential technicians of the clusters for Jackfruit processing 4. Assist entrepreneurs identify market, and remain competitive through Value Chain Development 5. Organize linkages between entrepreneurs and financial institutions for financing Jackfruit processing 6. Identify and propagate industrially suitable varieties of Jackfruits in regions of cluster of Jackfruit processing Goal: Increasing employment and income and wealth through production of high value added products Outputs: 1) 20-50 MSMEs established to process Jackfruits in a cluster 2) Capacity of BIOs enhanced for Jackfruit promotion through networking Impacts: 1000 new job created (self and employed) 25% income of enterprises and employees increased 100 tons of value added products of jackfruit produced yearly in a cluster worth 6.16 million Tk. Customers get processed products of jackfruits year round 16 Total Cost: € 170,000= Tk. 14.11 Million (€ 1=T 83) Detail break down of costs has been presented in Annex D. The actions are briefly outlined as follows: Action 2: Organize clusters of Jackfruit Processing MICRO enterprises in Jackfruit Commercial Hubs of the country - Background: New venture, enterprises are not organized as cluster Objectives: Emergence of a VC based cluster of enterprises Key stakeholders group: Processors, producers, Nurseries, equipment suppliers and traders Type of activities: Awareness creation, VC development, institution building, management training Specification of related outputs and results: Capacity development: Cluster established with linkages Description of linkages/relationships between activity clusters: Growth of jackfruit industry depends on cluster development Timeframe: First six month Estimated cost: € 13,300 = Tk. 0.84 Million Action 3: Identify, display, link and assist entrepreneurs to establish common infrastructure and machinery facilities of Jackfruit Processing - Background: Enterprises have no access to equipments and machinery and technologies Objectives: Creating common infrastructure and machinery facilities Key stakeholders group: Entrepreneurs, equipment providers (home and abroad), Type of activities: Equipment sources and establishment of common facilities and equipments business planning, expert advices Specification of related outputs and results: Establishment of processing enterprises Description of linkages/relationships between activity clusters: Growth of jackfruit industry depends access to equipment and machinery Timeframe: 1 year Estimated cost: € 29290 = Tk. 2.43 Million Action 4: Organize and impart training to potential technicians of the clusters for Jackfruit processing - Background: No technician available for Jackfruit processing Objectives: Ensure supply of skill technicians and professionals Key stakeholders group: Entrepreneurs, managers, and technicians and professionals 17 - Type of activities: Training home and aboard, overseas visit and apprenticeship - Specification of related outputs and results: A common facilities will be created Description of linkages/relationships between activity clusters: Operation and profitability of the enterprises will depend on availability of skilled technicians Timeframe: 1 year Estimated cost: € 21960 = Tk. 1.83 Million. - - Action 5: Assist entrepreneurs identify market, and remain competitive through Value Chain Development - Background: Unknown market Objectives: Increase sales at home Key stakeholders group: Entrepreneurs, marketing executive, professionals Type of activities: Market study, development of supply chain, market mission abroad Specification of related outputs and results: Sales increase Description of linkages/relationships between activity clusters: Market is key to sustainability Timeframe: 3 years Estimated cost: € 28800 = Tk. 2.39 Million Action 6: Organize linkages between entrepreneurs and financial institutions for financing Jackfruit processing - Background: Unwillingness of financial institutions to invest in new venture Objectives: Ensuring access to fund Key stakeholders group: Entrepreneurs, Executive of financial institutions, Type of activities: Workshop, business planning, seed fund creation, operational modality Specification of related outputs and results: Establishment of cluster of enterprises Description of linkages/relationships between activity clusters: Finance is key to growth of the industry Timeframe: 3 year Estimated cost: €5300 = Tk. 0.44 Million Action 7: Identify and propagate industrially suitable varieties of Jackfruits in regions of cluster of Jackfruit processing 1. Background: Suitability of raw materials is key to gain competitiveness. 2. Objectives: To ensure long term sustainability and competitiveness 18 3. Key stakeholders group: Producers and nursery owners and field technicians 4. Type of activities: Identification and preservation of mother plants and propagation by budding and tissue culture 5. Specification of related outputs and results: Profitability of enterprises 6. Description of linkages/relationships between activity clusters: Branding and competitiveness will depend on quality of raw materials 7. Timeframe: 3 years - Estimated cost: € 1860 = Tk. 0.16 Million Action Plan for Establishment of a JACKFRUIT PROMOTION COUNCIL in Bangladesh Action 1: Jackfruit promotion council Background: It is expedient to establish a Jackfruit Promotion Council in Bangladesh to exploit the potential of industrialization of Jackfruit (Artocarpus heterophyllus) for promoting investments in jackfruit trade and industries in order to generate employment and income in rural areas and make the product available throughout the year for domestic consumption as well as for export. Therefore, this action plan is suggested establishing a JACKFRUIT PROMOTION COUNCIL to undertake following actions viz. 1. Organize and formalize the Council for promoting growth of Jackfruit industries 2. Sourcing technologies and linking potential entrepreneurs 3. Capacity development of managers and entrepreneurs for Jackfruit processing 4. Assist entrepreneurs to identify market, both domestic and export and remain competitive through Value Chain Development 5. Organize linkages between entrepreneurs and financial institutions for financing Jackfruit processing 6. Identify and propagate industrially suitable varieties of Jackfruits in regions cluster of Jackfruit SMEs located Goal: Increasing employment and income and wealth through production of high value added products Outputs: 1) 80 SMEs established to process Jackfruits 2) Capacity of BIOs enhanced for Jackfruit promotion through networking Impacts: 1. 1000 new job created (self and employed) 2. 25% income of enterprises and employees increased 3. 500 tons of value added product of jackfruit produced worth 6.16 Million Tk. 4. Customers get processed products of jackfruits year round 19 Total Cost: € 175,000= Tk. 14.52 Million (€ 1=T 83) Detail break down of costs has been presented in Annex E. The actions are briefly outlined as follows: Action 2: Organize and formalize the Council for promoting growth of Jackfruit industries - Background: No one promoting investment in Jackfruit, an institutional frame work is necessary Objectives: Creating awareness and capacity development Key stakeholders group: BAPA officials, professions and entrepreneurs Type of activities: Creation through participation, MOA preparation, Registration, Launching Specification of related outputs and results: A institutional framework created with a business plan Description of linkages/relationships between activity clusters: Essential for growth and sustainability Timeframe: 1 year Estimated cost: € 1330 = Tk. 1.10 Million Action 3: Sourcing technologies and linking potential entrepreneurs - - Background: Enterprises have no access to equipments and machinery and technologies Objectives: Linking Entrepreneurs with equipment and technology sources Key stakeholders group: Professionals, Entrepreneurs, equipment providers (home and abroad), Type of activities: National Jackfruit technology fair, business planning, Overseas visit Specification of related outputs and results: Establishment of processing enterprises Description of linkages/relationships between activity clusters: Growth of jackfruit industry depends access to equipment and machinery Timeframe: 1 year Estimated cost: € 29800 = Tk. 2.47 Million Action 4: Capacity development of managers and entrepreneurs for Jackfruit processing Background: Entrepreneurs and managers, as well as technician are not knowledgeable for Jackfruit processing 20 - - Objectives: Ensure supply of skilled, managers, technicians and professions Key stakeholders group: Entrepreneurs, managers, and technicians and professionals Type of activities: Training at home and aboard, overseas visit and apprenticeship Specification of related outputs and results: Skilled manpower will make jackfruit processing possible Description of linkages/relationships between activity clusters: Operation and profitability of the enterprises will depend on availability of skilled technicians Timeframe: 1 year Estimated cost: € 22080 = Tk. 1.83 Million Action 5: Assist entrepreneurs identify market, both domestic and export and remain competitive through Value Chain Development - Background: Unknown market Objectives: Increase sales at home and abroad Key stakeholders group: Entrepreneurs, marketing executive, professionals Type of activities: Market study, development of supply chain, market mission abroad Specification of related outputs and results: Sales increased Description of linkages/relationships between activity clusters: Market is key to sustainability Timeframe: 3 years Estimated cost: € 28000 = Tk.2.32 Million Action 6: Organize linkages between entrepreneurs and financial institutions for financing Jackfruit processing - Background: Unwillingness of financial institutions to invest in new ventures Objectives: Ensuring access to fund Key stakeholders group: Entrepreneurs, Executive of financial institutions, Type of activities: Workshop, business planning, seed fund creation, operational modality Specification of related outputs and results: Establishment of cluster of enterprises Description of linkages/relationships between activity clusters: Finance is key to growth of the industry Timeframe: 3 year Estimated cost: € 4800 = Tk. 0.40 21 Action 7: Identify and propagate industrially suitable varieties of Jackfruits in regions of cluster of Jackfruit SMEs located - Background: Suitability of raw materials is key to gain competitiveness. - Objectives: To ensure long term sustainability and competitiveness Key stakeholders group: Producers and nursery owners and field technicians Type of activities: Identification and preservation of mother plants and propagation by budding and tissue culture Specification of related outputs and results: Profitability of enterprises Description of linkages/relationships between activity clusters: Branding and competitiveness will depend on quality of raw materials Timeframe: 3 years Estimated cost: € 1860 = Tk. 0.16 - Action Plan for Capacity Development of a BIO Action 1: BAPA as a bio for jackfruit Background: Most BIOs in Bangladesh act as pressure group for policy change and realizing benefits from the government and associated institutions, programs and projects. BAPA as a BIO of agro-processing sector does the same partly due to lack of capacity and partly due to lack of right perspective of its role. In fact its role of developing the bread earning industry is highly limited virtually none. This action plan is proposed to develop capacity of a BIO to play a positive role for growth and development of clusters of SME engaged in Jackfruit industry. The proposed actions for capacity development are as follows: 1. 2. 3. 4. Establish network of enterprises and clusters Establish electronic communication system Establish information clearing house Establishing a monitoring and quality control system Goal: Emergence of an effective BIO promoting agro-processing in general and jackfruit in particular Outputs: 1) A one stops information service 2) A monitoring system to measure and report progress Impacts: 1. Availability and sharing of information of markets, technologies and development 2. Motivation for investments in Jackfruits industry 3. Better relation among value chain actors 4. A strong network Total Cost: € 175280 = Tk. 14.55 Million (€ 1=T 83) 22 Detail break down of costs has been presented in Annex E. The actions are briefly outlined as follows: Action 2: Establish network of enterprises and clusters - Background: Sustainable cluster depends on a strong network of enterprises and clusters - Objectives: BIO became able to maintain the network - Key stakeholders group: BIO leaders, entrepreneurs and cluster leaders - Type of activities: Meetings, orientation, conference, visits to market, workshops - Specification of related outputs and results: Information seeking and sharing - Description of linkages/relationships between activity clusters: Relation building - Timeframe: 3 Years - Estimated cost: € 16750 = Tk. 1.39 Million Action 3: Establish electronic communication system - - Background: No information is available now Objectives: Information on market, technology and growth of the industry become available Key stakeholders group: BIO members, Entrepreneurs and cluster leaders Type of activities: Establishment of conference room, Computers, Web development and hoisting, information tracking system, Videos, Still and movie Camera Specification of related outputs and results: Information need is fulfilled quickly Description of linkages/relationships between activity clusters: Quick decision making Timeframe: 3 year Estimated cost: € 62700 = Tk. 5.21 Million Action 4: Establish information clearing house - Background: There is no system of information storage Objectives: All relevant information is properly stored and supplied Key stakeholders group: BIO members, Entrepreneurs and cluster leaders Type of activities: Collection, classification, cataloging and storage of information of home and abroad Specification of related outputs and results: BIO can help entrepreneurs when information available 23 - Description of linkages/relationships between activity clusters: Support to clusters linked with information available Timeframe: 3 year Estimated cost: € 6000 = Tk. 0.50 Million Action 5: Establishing Standard and quality control system - Background: There is no quality standard and control system Objectives: Keep products competitive Key stakeholders group: BIO leaders, Entrepreneurs, and cluster leaders, Type of activities: Setting quality standards, Training on HACCP and GAP, Monitoring product quality, Training on quality standards Specification of related outputs and results: Growth of cluster and enterprises Description of linkages/relationships between activity clusters: Customer confidence Timeframe: 3 year Estimated cost: € 6600 = Tk. 0.55 Million Action 6: Establishing a monitoring system - - Background: Monitoring is essential for learning progress and planning for future Objectives: Keep stakeholders abreast of progress and future actions to be taken Key stakeholders group: BIO leaders, Entrepreneurs, and cluster leaders, Type of activities: Designing Monitoring system, Monitoring survey, Printing and circulation of monitoring report, Workshop for learning sharing Specification of related outputs and results: Growth of clusters of enterprises Description of linkages/relationships between activity clusters: Learning and experience sharing Timeframe: 3 year Estimated cost: € 15100 = Tk. 1.26 Million 24 5. Key Recommendations Jackfruit processing is a potential new venture in Bangladesh. Experimental efforts are noticed at individual and group levels through NGOs as in Rajbari by Practical Action and by Idilpur Pineapple Cultivators and Mouchas Unnayan Samity in Madhupur as well as at enterprise level through own initiatives as by PRAN and Rajshahi Mango Products Ltd. The consultant recommends organizing micro enterprises as CLUSTER with common production and marketing facilities The consultant recommends providing technical assistance to all enterprises operating as CLUSTER as well as individual enterprises that have plans to invest. Grant winning clusters and enterprises should have linkage for credit support through Bangladesh Banks or any other MFI for investment and operational funds. By-product processing should be integral part of any jackfruits investment project to avoid environmental hazards and make cattle feed, bio fuel, etc which will make the main products cheaper. Training of consultants and entrepreneurs will surely improve their skills in preparing applications. Flexibility in evaluating the application of Lot 1(a) is important for jackfruit processing. 25 Appendix A: Business Feasibility Report on Jackfruit Processing The Ministry of Industries of the Peoples’ Republic of Bangladesh SME Competitive Grant Scheme BUSINESS FEASIBILITY REPORT ON JACKFRUIT PROCESSING Mohammed Hassanullah, Ph D Consultant, INSPIRED Project 7 December 2012 26 TABLE OF CONTENT No. Subject Page 1 Acronyms 23 2 Name and Coordinate 24 3 Justification and Benefit 24 4 Implementing Party or Agency 25 5 Methodology 25 6 Key Activities 33 7 Impact on Economic Growth and Jobs 33 8 Resources Required 33 9 SWOT Analysis 34 10 Gross Margin Analysis 35 11 Export Market Analysis 35 Charts 1 Pre-processing of bulbs and pulps 37 2 Process of preparing flakes and leathers 38 3 Process of preparing pickles and beverages 39 Appendix i Production Seasons of Jackfruits 41 ii Findings of VC Analysis 42 iii Comparison of Nutritional Value of Tropical Fruits 46 iv Photographs of Jackfruit Products 47 v Gross Margin Analysis 50 27 Acronyms Acronyms Meaning BSTI Bangladesh Standard and Testing Institute CFTRI Central Food Technological Research Institute, Mysore ED Executive Director EU European Union HP Horse Power HACCP Hazard Analysis and Critical Control Points ICUC International Centre for Unutilized Crops MD Managing Director MSME Micro, Small and Medium Enterprise NGO Non-government Organization SAARC South Asian Association for Regional Cooperation SME Small and Medium Enterprise SWOT Strengths, Weakness Opportunities and Threats VC Value Chain 28 BUSINESS FEASIBILITY REPORT ON INDUSTRIAL PROCESSING JACKFRUIT 1. Name and Coordinates: Title: Industrial Processing of Jackfruits Location: Madhupur Upazila of Tanglail District Type: Agro Product Processing Contact Person: Mr. Abul Hossain 2. Justification and Benefits Justification Jackfruit (Artocarpus heterophyllus) is recognized as the National Fruit of Bangladesh. It is grown in all districts. Presently, Bangladesh cultivates jackfruits in 79 thousands hectares of land producing about 1,352,084 tons fruits in a year (DAE, 2012). Yield per hectare is 17 MT which could be increased three to five times more if commercial gardens are established and proper and intensive management practices are adopted. The highest volume of production takes place in Dhaka, Gazipur, Tangail, Khagrachari, Rangamati, Maymansingh, Moulvibazar, Narsingdi, Dinajpur and Rangpur. Modhupur is the heart of best quality Jackfruit growing areas. It has a very short harvest season (2-3 months) and all consumed fresh. Since there is no processing it is not available in rest of the year for consumption. During harvest in June to August it is over consumed and sold at a throw away prices. The scope of processing will be increased many fold with increase of yield per hectare. Immediate Benefits If processed industrially the product will be available all year round for consumption, producers will get better prices and there will be new employment opportunities. Local demand for jackfruit will increase. Farm gate price will increase increasing producers’ income. New processed products of Jackfruit will be available in the markets. Consumer will get jackfruit processed products in the grocers’ shops. Market opportunities will increase. Investment in jackfruit processing is relatively small creating opportunity for growth and development of MSMEs particularly in the commercial hubs in which local entrepreneurs can invest as clusters using locally available business development services. Increased production will make import substitutions. There are reports that canned jackfruits are imported from Thailand. Productions of high quality vacuum fried chips will also substitutes importation of various types of chips and other similar products. Long Term Benefits New investment opportunity will be created. It will have a great demonstrative impact on the entrepreneurs. Many entrepreneurs will come forward, make investment in 29 jackfruit processing in all districts of Bangladesh particularly in those where intensity of jackfruit cultivation is very high such as Dhaka, Gazipur, Tangail, Khagrachari, Rangamati, Mymensingh, Moulvibazar, Narsingdi, Dinajpur and Rangpur. Production of high quality vacuum fried chips and other products will open up opportunities of export of jackfruit products to countries as global demand of jackfruit products is increasing. The jackfruit is the most expensive fruit on sale in Britain costing about £25.00 per fruit. The jackfruit has regional and international markets because it is available as a fresh fruit as well as processed products. Besides, Bangladesh has seasonal advantage over Brazil, Columbia, Indonesia and Thailand (Appendix A) i.e. when jackfruit is harvested in Bangladesh, it is not produced at that time in those countries. Value Chain Analysis In view of lack of value chain based data at national perspective a participatory value chain analysis was conducted in a commercial hub of Jackfruit in Madhupur Upazila in which 26 stakeholders, i.e. producers, traders, processors and service providers participated. It has been observed that production is scatter with low per acre yield which could be in from three to times more if proper practices are followed. A very large number of producers are involved. A large number of primary traders gather the products to primary market where large aggregators by the products at relatively low prices and transport to whole sale markets of the metropolitan cities. About 10% are consumed locally. There are no processors or exporters in this hub. There is no safe transportation and storage system and very frequently immature fruits are ripened by applying harmful chemical. Therefore, there is tremendous scope and potential to process jackfruits in this hub. Similar opportunities also exist in other commercial hubs of the country. Details of findings are presented in Appendix B. 3. Implementing Party or Agency Fruit Farmers Association of Madhupur /Mou Chashi Samily of Madhupur in Tangail district and many entrepreneurs will come forward to invest in jackfruit industries if they can access technologies and finance. 4. Methodology Why should jackfruit be processed? The fruit should be processed because of: The fruit is rich in Vitamin A B and potassium, calcium, iron, proteins, and carbohydrates Processing reduces post harshest losses, Processing increases shelve life of the fruit Processing add value and increases income 30 A comparison of jackfruit with other tropical fruits shows that Jackfruit has very high proportion of calcium, vitamins and some minerals (Appendix C). Composition of the edible parts (100 g edible portion) of jackfruit (on the basis of fresh weight) is as follows: Composition Young fruit Ripe fruit Seed Water (g) 76.2-85.2 72.0-94.0 51.0-64.5 Protein (g) 2.0-2.6 1.2-1.9 6.6-7.04 Fat (g) 0.1-0.6 0.1-0.4 0.40-0.43 Carbohydrate (g) 9.4-11.5 16.0-25.4 25.8-38.4 Fibre (g) 2.6-3.6 1.0-1.5 1.0-1.5 Total sugars (g) 20.6 Total minerals (g ) 0.9 0.87-0.9 0.9-1.2 Calcium (mg) 30.0-73.2 20.0-37.0 50.0 Magnesium (mg) 27.0 54.0 Phosphorus (mg) 20.0-57.2 38.0-41.0 38.0-97.0 Potassium (mg) 287-323 191-407 246 Sodium (mg) 3.0-35.0 2.0-41.0 63.2 Iron (mg) 0.4-1.9 0.5-1.1 1.5 Vitamin A (IU) 30 175-540 10-17 Thiamine (mg) 0.05-0.15 0.03-0.09 0.25 Riboflavin (mg) 0.05-0.2 0.05-0.4 0.11-0.3 Vitamin C (mg) 12.0-14.0 7.0-10.0 11.0 Energy (Kj) 50-210 88-410 133-139 Sources: Arkroyd et al,(1966); Narasimham (1990); Soepadmo (1992); Gunasena et al,(1996); Azad (2000). Potential Processed Products of Jackfruits The potential processed products of jackfruit are as follows: Pickle/Chutney Canned jackfruit Fruit leather Jam Candy/Toffee/biscuit Beverage Powder Dried Jackfruit Flacks Pulp To visualize the products photograph of the products have been presented in Appendix D 31 Production process Production processes of various products are shown in Chart 1 to 3 Product Preparation and Ingredients (International Centre of Unutilized Crop 2005): Product Preparation and Ingredients required for major products are briefly presented here: Pickles Ingredients 1 kg peeled jackfruit Salt to prepare 5% brine solution (50 g/l) 2.5 g turmeric powder 25 g coriander seeds 10-20 g chilli powder 10 g salt 150 g sugar 10 ml vinegar Method of Preparation Small tender green jackfruits are cut into several pieces, then the bulbs are removed by hand, the seeds may be removed and the bulbs are sliced into pieces. Jackfruit slices are required to be cured in brine solution for 8-10 days prior to pickling. Jackfruit pickle in oil is possible. Different types of pickles (sweet, spiced, sour) prepared from raw jackfruits have been described by ICUC (2005). Peel the skin. Cut the peeled fruits into 12-18 mm thick slices. Prepare a 5% common salt solution by mixing salt with water, 50 g salt/l. Place the slices in a container and cover with brine solution. Weigh them down to keep them submerged in the brine. Drain the slices after 24 hours using a stainless steel sieve and wash them to remove the excess salt. Grind and mix the following spices (for 1 kg peeled jackfruit): 2.5 g turmeric powder, 25 g coriander seeds, 10-20 g chilli powder, 10 g salt. 150g sugar. Add the spice mix and vinegar (10 ml/kg) to the jackfruit slices and cook the mix in a stainless steel boiling pan for 30 minutes while stirring. Pour the pickle into pre-sterilized jars and seal. Cool the jars at room temperature, then label. 32 Jam Ingredients: Jackfruit pulp 1 kg Sugar 1 kg Citric acid 2½ g Pineapple essence ½ kg Orange essence ½ ml Method of Preparation Ripe fruits are cut into several pieces and the bulbs are removed by hand. The bulbs are then cooked for 15 minutes and pulped, the core being removed. Cut the end of the bulb to remove the seeds, and grind the bulbs to pulp using a blender. The pulp is mixed with other fruit pulp (jackfruit: other fruits=1:1). Dissolve 10 g pectin per kg mixed fruit pulp in some water and add to the mixture. Add 1 kg sugar per kg mixed fruit pulp and mix. Heat the mixture in a stainless steel vessel while stirring continuously until the total sugar content is 68-70º C, pour into pre-sterilised jam jars and seal. The ideal pouring temperature is 82-85º C. Cool jars at room temperature, then label. The color of the final product is yellow, TSS is 68° Brix, the consistency is semi solid, and the flavour is pleasant. But the product is somewhat sticky, so further refinement of the process is needed to develop a marketable product. Jelly Ingredients for jackfruit extract Jackfruit extracts 1 kg (perigones and rind of ripe jackfruit) Water 1½ kg Boiling time 40 minutes TSS 100º Brix Ingredients for jelly preparation Quantity of extract 1kg Quantity of sugar 1kg TSS 75º Brix Final weight 1.02 kg Number of bottles 500 x 2 33 Method of Preparation Jelly is a product of gelatinous consistency prepared by boiling strained fruit extract with sugar. It is a sparkling product which is transparent with an attractive color. Jackfruit beverages Ingredients Pulp 150 g Sugar 140 g Water 710 ml KMS (Potassium metabisulphite) 140 mg Final weight of the product 1 kg Fruit TSS 14º Brix Taste Refreshing Colour Yellow orange Method of Preparation Cut ripe fruit in half lengthwise. Carve out the core of the fruit Scoop out the bulbs. Cut the end of the bulbs to remove the seeds. Homogenize the pulp using a pulper or blender. Boil the pulp for 5 minutes in a stainless steel boiling pan. Cool the pulp. Add pectin-degrading enzyme according to instructions on the packet. Keep the mixture at room temperature overnight. Filter the extract using a muslin cloth or stainless steel filter. Prepare a 50% sugar syrup solution at 90º C by dissolving 500 g sugar in a small amount of water and make the volume up to 1 litre. Combine the fruit juice (30%) and sugar syrup (70%). To obtain 1 litre of the beverage mix 300 ml juice and 700 ml sugar syrup. Add a preservative such as sodium meta-bisulphite (concentration up to 0.05%)(Optional). Pour into pre-sterilized bottles by using either a jug and funnel or a stainless steel bucket with an outer tap. Cap the bottles. Pasteurize the sealed bottles at 80-95ºC for 10-20 minutes. Cool the bottles to room temperature by immersing in cool water Label Candy Candies can be prepared from ripe jackfruit pulp by putting them in sugar syrup and gradually raising its TSS to 70º Brix. 34 Ingredients Pulp 500 g Water 1250 ml Sugar 750 g KMS 2 g Citric acid 3 g Method of Preparation Cut the fruit in half lengthwise, carve out the core of the fruit, Scoop out the bulbs. Cut the end of the bulbs to remove the seeds, Prepare a brine solution containing 15% salt (150 g/l) and 1% calcium chloride (10 g/l). Soak the bulbs in a brine solution for 2 days. Place a wooden plate with a weight on top of the fruit to keep them submerged in the brine. Remove the bulbs from the brine, wash them to remove the salt and drain using a stainless steel sieve. Check the flavour to ensure that all salt has been removed. Prepare sugar syrup of 40º Brix. Boil the deseeded bulbs for 5 minutes in the syrup. Keep the mixture at room temperature (28-31º C) for 24 hours. Remove the bulbs from the syrup. Add sugar to the syrup until it is 50º Brix (use a refract meter). Immerse the bulbs in the syrup and keep at room temperature for 24 hours. Remove bulbs from the syrup again. Add more sugar to the syrup until it is 62º Brix. Re-immerse the bulbs in the syrup and keep at room temperature for 24 hours. Remove the bulbs and quickly rinse in water to remove surface syrup. Drain off the syrup by spreading the bulbs on wire trays. Dry drained fruits for about 1 day in a solar or tray dryer. Pack the candies in jars, tins, cardboard cartons or in polythene pouches and seal them. Label N.B. Citric acid was added when strength of the syrup was 50° Brix. Final TSS 70° Brix Color yellow Candying of bulbs is practiced to extend their utilization. It was prepared by conventional syruping at 70°C Brix, with subsequent oven drying at 60° Brix for one day. The moisture level of the fruit was reduced to 20% after drying. Fruit bars Jackfruit bars are prepared by mixing sugar and citric acid with pulp and drying to moisture content below 30%. Ingredients Pulp 300 g Sugar 60 g 35 Citric acid 0.6 g KMS a pinch Essence 1.5 ml Weight of the final product 150 g Method of Preparation Three methods of drying for fruit bars were attempted - sun drying, drying in a cabinet drier at 60° C, and microwave dehydration. The product dried in a microwave oven had an undesirable dark color. The color of the product dried by sun drying and the cabinet drier were good. Weight of the final product: Sun drying 155 g, Cabinet drying 150 g. recover %, Sun drying 43, Cabinet drying 42 Dehydrated products Jackfruit can be preserved by dehydration of the bulbs, seeds, perigones and used to make products like papads. Pectins can also be extracted for use in processing (Jain and Lal, 1954). Jackfruit bulbs can be dried in the sun or in a cabinet drier at 50-55°C after sulphuring them in a closed chamber. Teaotia and Awasthi (1968) carried out detailed studies in the dehydration of jackfruit bulbs and reported that fruits harvested between 165-195 days from spike appearance with 0.2% SO2 treatment for 15 minutes gave a good quality dehydrated product. Method of Preparation Cut fruit in half lengthwise, Carve out the core of the fruit, Scoop out the bulbs, Cut the end of the bulbs to remove the seeds, Cut the deseeded bulb into 2 or 4 pieces, Blanch the fruit segments by plunging into boiling water for 2 minutes, and cool them rapidly under clean cold water, Place the blanched segments in a single layer on mesh dryer trays. Put them close together but not touching to achieve the maximum capacity and an even rate of drying. Load trays into the drying cabinet and dry at 55º C for 6-7 hours until the moisture content is reduced to 5%. Remove trays and pack dried fruits immediately in moisture proof containers e.g. 400 gauge polythene or polypropylene pouches, and heat-seal them. Jackfruit leather Ingredients 1 kg fruit bulbs 100-150 g/kg sugar 0.1 g/kg potassium or sodium meta-bisulphite 36 Method of Preparation Cut fruit in half lengthwise, Carve the sticky core, Scoop out the bulbs, Cut the end of the bulbs to remove the seeds, Add sugar (10-15% the weight of the bulbs = 100150 g/kg) according to variety used and taste. Blend the bulbs, Dissolve preservative e.g. potassium or sodium meta-bisulphite (0.1g/kg) in water and add to the product, Concentrate mixture in a stream-jacketed pan. Spread concentrate on stainless steel trays lined with grease proof paper in 3 mm thickness. Dry leather using a solar (2 days) or mechanized dryer (18-20) hours. Turn it over after 1 day in a solar dryer or 5 hours in an artificial dryer until the moisture content is 9-12%. Canning of raw jackfruit Bhatia et al. (1956) described a procedure for canning raw jackfruit in brine in which tender jackfruit flesh cubes were used in 2% brine in cans. Bhatia et al. (1955) also described methods for canning of raw jackfruit packed in curried style, either alone or in combination with other vegetables like potato, tomato, cauliflower, beans etc. In this case, the product is canned in spiced gravy instead of brine. Jackfruit seeds Sun dried or oven dried (cabinet drier) seeds can be preserved in airtight containers for over a year. The dehydrated seeds after soaking in water for about 18 hours can be used as fresh seeds for canning or can be cooked and consumed (Bhatia et al., 1956). Flour prepared from dried jackfruit seeds mixed at a 25% level with wheat flour was found to be useful for “Chapati” making. Jackfruit pectin Good quality pectin can be prepared from jackfruit waste. Krishnamurthy and Giri (1949) reported that pericarps and kernels of jackfruit are rich in pectin. Bhatia et al. (1959) prepared pectin and also pectin extracts from jackfruit rind. Jackfruit powder Method of Preparation Cut fruit in half lengthwise. Carve out the core of the fruit. Scoop out the bulbs, Cut the end of the bulbs to remove seeds, Cut the deseeded bulb into 2-4 pieces, Blanch fruit segments by plunging into boiling water for 2 minutes and cooling them rapidly under clean cold water. Place the blanched segments in a single layer on the mesh dryer trays. Put them close together but not touching to achieve the maximum capacity and an even rate of drying. Load trays into the drying cabinet and dry at 55º 37 C for 6-7 hours until the moisture content is reduced to 5%. Grind the pieces into a powder using a grinder or by pounding them using a pestle and mortar. Sieve the powder to remove lumps and un-ground material. Pack powder in moisture-proof containers, e.g. 400 gauge polythene or polypropylene pouches, and heat-seal them. Label Further recipes are available at www.fairchildgarden.org/horticulture/jackfruitrecipes.html Storage of Jackfruit Fresh Fruits: For 4-5 days at 25-35 0 C For 2-6 weeks at 11-13 0 C Bulbs: For 3 weeks at 2 0C when packed in heat sealed polythene bags Pulp: For more than one year at -20-220 C when packed in heat sealed polythene bags 5. Key Activities In order to set up a Jackfruit industry an entrepreneur will have to perform the following activities: Prepare a business plan or get it prepared with the help of an expert with details of production planning, packaging, labeling and storage, and market channel development and market promotion with details of cost benefit analysis Access sources of machinery and logistics and arrange infrastructure in suitable place generally within the production zone, complete civil work and set up machineries with the help of suppliers on turnkey basis Arrange appropriate human and financial resources to operate the enterprise Identify the appropriate type of jackfruit suitable to produce a product(s), make contractual arrangement with the owners of the trees and ensure procurement/supply of mature and safe jackfruits in time and quantity Identify potential markets, marketing channels, make trial marketing and assess customer taste and presences and accordingly adjust product quality and production process Adopt quality and safety measures relating to HACCP and assist the producers to adopt good agricultural practices Identify stakeholders of the value chain and establish rapport with them with those who have forward and backward linkage. Conduct periodical financial analysis and establish financial control system to guard pilferage of resources Run the enterprise profitability, watch the market signals and adjust the products and production processes. 38 6. Impact on Economic Growth and Jobs Bangladesh produced about 1,352,084 tons of jackfruits in 2012 (DAE, 2012). If onethird of it is brought under processing as SMEs there will be about 900 SME which will generate 9000 employment and Tk. 851 million revenue from processed products only in factories. Processing of waste, inedible portion as feed or bio-fuel will generate similar volume of revenue. The employment and revenue generation will be 5 times more if jackfruit production, transportation and trading related to processing is considered. If successful both production of raw materials and processed products will increased significantly. 7. Resources Required Establishment and expansion of jackfruit industry requires human, machinery, physical infrastructures and financial resources. Since it is a new enterprise virtually there is no skilled labors, technicians and professionals also. Capacity development is of prime importance. There is an efficient light engineering sector in Bangladesh. It is reported that several enterprises like Mark Industries can manufacture the equipment needed to process jackfruit. Their capacities also need to be developed. 39 8. SWOT Analysis Strengths Small and subsistence farmers possess traditional knowledge and skills to produce enough surpluses of good varieties of jackfruits available in the region. On a national perspective about one-third of total production about 450,000 MT would be available for processing all over the country. There are many small and large traders who can aggregate the products from remote villages and ensure supply to outside suppliers or processors. All available types of jackfruits will be processed as different products require different types of raw jackfruits, soft medium and hard. Land is most suitable for jackfruit cultivation and there is scope to organize small scale specialized gardens increasing productivity and supply of fresh quality jackfruit for shipping outside the country for fresh consumption and processing. There are huge markets of processed products as it is a very much popular product and is available for only three months for consumption. Weaknesses Farmers have lack of access to modern technologies to increase production as there are no extension and research efforts on jackfruit. There is a vast market but farmers have little access to markets outside the community as a result there is seasonal glut resulting very low prices. Besides, there is no access to preservation technologies. Neither the producers nor the traders can hold for some time as it is highly perishable product. Producers and traders have small operation and have no external financing. As it is harvested in monsoon season it is difficult to carry the products from production site because of muddy road. Often it becomes difficult to transport the product to distance places due to natural calamities. Opportunities Threats There is a great scope of establishing commercial small holder plantations which will increase three to five times more production than the present level of production of jackfruits. Application of simple technologies selective variety plantation, intercropping, manuring and fertilization, irrigation, pruning trees and thinning of fruits can double or even triple the yield of jackfruits which is now less than 17.00 MT per hectare. There is increasing domestic demand of jackfruit due to population increase and urbanization and international demand of both fresh and processed products is also increasing in countries like UK, USA, middle-east as well as in Asian countries. Concerted effort is required for research, extension, processing, infrastructure development and trade promotion. Stakeholders reported that incidence of disease and insect is increasing but there is no effort to identify and undertake remedial measures. Some exotic varieties are facing extinction due to genetic deterioration due to lack of effort of identification and insitu preservation of desirable trees. Customers are reported to lose trust of fruits in general and of jackfruit in particular due to use of chemicals (formalin) to ripen immature fruits due to lack of availability of bio-secured methods of preservation and ripening. 40 9. Gross Margin Analysis Detail analysis is presented in the Appendix E. 10. Competitors Analysis It is generally assumed that the production of jackfruit will expand mostly due to an expanding market for processed products. It is estimated that the demand for fresh fruits will expand in countries such as Japan, Malaysia, and the United Kingdom in addition to Singapore and Hong Kong and some Middle Eastern countries. Bangladesh exports about 54.00 MT jackfruit to the United Kingdom at a price of £1.23/kg. In the United Kingdom a fresh fruit is sold at £2.45 per kg and a medium size fruit may cost £16-£20. Canned tender raw jackfruit and seeds can be sold in international markets, mostly for ethnic consumers. One cane containing 250 g of bulbs in brine is sold in the United Kingdom retail market for £1.39. In Bangladesh there is no government support for exporters from the Export Promotion Bureau. Malaysian Government has recently signed a contract with Bangladesh to supply jackfruit which will be processed in Malaysia for re-export. The main exporters of jackfruit in Asia are Thailand, China and Malaysia, and among them, Thai products are considered to be the market standard, followed in quality by Malaysia and China. Malaysia exports to Singapore (almost 85%) and Hong Kong, where grading for uniformity in shape is not required as strictly as in the United Kingdom. In Thailand, the jackfruit has a long season, April to October, and it is exported to the USA year round. Colombia, India, Malaysia, Uganda, Jamaica, Thailand, Sri Lanka. Bangladesh and Kenya export jackfruit to the United Kingdom market. Among these, Colombia, India, Malaysia and Uganda supply throughout the year. Thailand exports throughout the year except for July-September and Sri Lanka exports during all calendar months except December and January. The UK retailer Sainsbury is increasing its range of fruits as customers are prepared to try an increasing variety and jackfruit has now reached 15 of its stores (www.just-food.com, 2002). The jackfruit is the most expensive fruit on sale in Britain costing about £25.00 per fruit. The jackfruit has regional and international markets because it is available as a fresh fruit as well as a processed product. Malaysia exported more than 4633 tones of fresh fruits to Singapore and Hong Kong in 1995 (Azad, 2000) and earned about US$ 740,000. Jackfruit is popular in Hong Kong and the fruits are supplied from Thailand, Malaysia and particularly from other parts of China (Vinning and Moody, 1997). The Philippines has also exported jackfruit to the value of US$ 324,000 (Acedo, 1992).The jackfruit is available in the wholesale markets of Australia, supplied from Queensland and the Northern Territory. The fruits are sold in the Sydney market, most frequently ranging from A$ 3-4 /kg. In addition to Sydney, jackfruit is traded in Melbourne and Brisbane. The fruits are consumed by ethnic groups such as Pacific Island communities and Southeast Asian communities resident in Australia. Whereas the large, heavy and perishable fruits will have limited fresh export capacity from producing countries. There is a clear niche for canned and other processed products as exports. Bangladesh should focus due attention on those products. 41 Chart 1: Pre-processing of bulbs and pulps Ripe Jackfruits Cut in half Deseeded bulbs Crush bulbs Add 30-40 g sugar per 100 g pulp and mix Carve out the Core Dry Scoop out the bulbs Pack Sort Preserve pulp Remove Seeds Pack + Seed Store 42 Chart 2: Process of preparing flakes and leathers Dry Jackfruit flakes Leather Dehydrated bulbs Add Sugar (100Dehydrated bulbs 150 g per kg bulb) Blend Cut into slices Dissolve potassium metabisulphite (0.1 g per kg in water and add Blench for 2 minutes jacketed pan Cool under cold water Concentrate mixture in a steam Packaging and storage Spread concentrate on tray Pack in heat sealed Place on mess trays 400 gauge polythene backs and store in Dry dark, cool place for several months Dust with starch Dry Dry Pack + Seal Cut into pieces Roll (Optional) Dry 43 Chart 3: Process of preparing pickles and beverages Pickles Beverage Young Green Fresh Deseeded bulb Jackfruit Homogenize using pulper or blender Peel skin Cut into slice Brine for 24 hours Place slices into container and cover with brine solution a Boil for 5 min Add pectin degenerating enzyme Cool Prepare 5% brine solution Keep overnight Filter Add 50% sugar solution Drain and was to remove excess salt Add sodium metbisulphite ((0.5 g per kg (optional) Mix Grind and mix spices: Pour into bottles and seal Add spice + vinegar (10 ml per kg) Cook for 30 minutes Turmeric, coriander, chilli powder, salt and sugar Heat pasteurize in 0 bottles at 80-95 C Pour into jar and seal Cool at room temperature Cool in cold water 44 Packaging and storage of pickle Seal in polythene bags or pack in clean, tightly capped glass or plastic jars or bottles. Store in cool, dark place for several months Packaging and storage of beverages Pack in well sealed clean glass or plastic bottles and store in cool dark places for several months 45 Appendix i: Availability of jackfruit in different countries Countries Australia Bangladesh Brazil Colombia India Indonesia Jamaica Kenya Malaysia Philippines Sri Lanka Thailand Uganda USA (Florida) Zanzibar Source: Soepadmo, 1992; Crane et al., 2003 Main season(s) of availability June-April June-August January-March, August-October January-December April-July August-January January-July June-October April-August, September-December March-August February-November January-May, October-December January-December May-August, September-October June-December 46 Appendix ii: Value Chain Analysis This value chain is developed through discussion with 26 stakeholders representing NGOs, agro processors, traders, nurseries and farmers using the EU Guideline of value chain development as in Chart 1. The list of stakeholders who participated in the value chain mapping FGD is attached in Appendix 1. Chart 1: EU style value chain of Jackfruit in Madhupur Upazila of Tangail District Consumes most of total Production/seed for next year Planting Material (400 nurseries) 160,000 Farmers in the Upazila 100% of total vegetable production goes to market unchanged Local Market (100 small hats Small Trader 10,000 Processors (None) Buyers Households (None) Household Family Consumption (10% only Buyers Household 10% Distance to market will be very short as 3km Urban Market (only one) Buyers Household Distance to urban markets will be short as 3km to 150 km Post Harvest Losses as high as 10-15%: no storage, post harvest handling, and transportation losses 47 Production Jackfruit is almost a natural product in Madhupur. About 160,000 farmers are involved in production. Generally, seeds or grafts from nurseries are planted scattered in the homestead or in adjacent areas. Small scale commercial gardens cover about 20%. There is no dearth of planting materials as there are about 400 nurseries in the upazila. The quality of grafts is reported to be good. Producers cannot recognize the varieties but accustomed with three types such as soft bulb, medium hard bulb and hard bulb. Similarly there are early, medium and late maturity types. There are wide variation of size, flavour and sweetness. There are very little knowledge of agronomy, disease and pest protection, maturity and post harvest handling and operation. As a result waste is very high. Harvesting season is May to August. The peak season is July. Farmers reported that when jackfruit is raised in an organized garden and intercropped production increased 3-5 times more as compared to homestead scattered trees whose yield is about 10 tons per hectare. Production, harvest and post harvest is not organized to meet the requirements of industries. There are varieties as reported by farmers which produce fruits year round which can be multiplied rapidly to feed the industry year round. Production Costs Jackfruit in Bangladesh is almost a natural crop. Nothing is done after planting except harvesting from the trees. There is no cost of production except the price of the graft which is about Tk. 20.00, in exceptional cases plants may require fencing which is about Tk. 10.00. When the plants are above man height nothing is for about 15-20 years or more, only plucking and selling. Market Trends Demand of fresh Jackfruit is increasing due to population increase and urbanization. In certain areas like Madhupur production is also increasing as the region is most suitable for Jackfruit cultivation. Demands of metropolitan cities are increasing faster. Traders’ guess is that demand and supply are equally increasing approximately about 10% a year. During last ten years it has doubled. Industrialization will increase the demand further but there is scope to increase area three times and that of yield by 3-5 times if production is organized as commercial plantation with selected high producing industrially suitable varieties through rapid multiplication of selected tries through tissue culture technique. Trading Trading of jackfruits takes place at several levels. Farmers take their fruits in the neighbourhoods market or some small traders buy matured/ripen fruits from the household and sell in the neighbourhood market or to the Arathders (aggregators) who ship it to wholesale markets of metropolitan cities where whole sellers buy and 48 sell to retailers. The retailers sell in the road side or fruit shops in organized markets. It is transported to long distance on the top of bus, bulk in truck or pick up to market of short and long distance. Processing and Value Addition Virtually there are no value addition activities, except transporting to markets of high demand which fetch high prices. Even sorting, grading and packaging is not done. There is no industrial level processing initiative primarily due to lack of knowledge and access to technology. The traders and agro-processors have no idea about consumers’ taste and preferences. There is no import of any processed products. Small scale home/cottage level processed products like pickle, jam, jelly and dehydrated product could not be marketed due small scale supply, poor quality, packing and preservation. In fact no serious efforts are noticed among the public, private and NGO sector. Global Competitors Bangladesh is exporting about 55 tons of jackfruit to the United Kingdom at a price of £1.23/kg. In the United Kingdom a fresh fruit is sold at £2.45 per kg and a medium size fruit may cost £16-£20. Canned tender raw jackfruit and seeds can be sold in international markets, mostly for ethnic consumers. One can containing 250 g of bulbs in brine is sold in the United Kingdom retail market for £1.39. In Bangladesh there is no 138 government support for exporters from the Export Promotion Bureau, but the Malaysian Government has recently signed a contract with Bangladesh to supply jackfruit which will be processed in Malaysia for re-export. If Bangladesh enters into global market of jackfruit with fresh or processed products her competitors will be Malaysia, Thailand, India and Vietnam Consumers All Bangladeshis like to eat fresh jackfruits except few who do not like its strong odor and messiness. Supermarkets have started to separate bulbs of ripen fruits, arrange on a cellophane tray, cover by thin cellophane and put in the self. It is reported that affluent consumers also prefers to buy in such condition at a higher prices. Since there is no process products in the market consumer taste and preference cannot be evaluated. Regulatory Framework No regulatory problems are reported relating to production, trading and processing. It is a fruit which is grown and sold everywhere in the country with no regulation and legal constraints. However traders in recognized and regulated markers require licenses to conduct business any 49 Business Development Services No business development such as extension, research, financing, and other advisory and regulatory services are available for jackfruit production, trading and value addition activities, no appropriate transportation system. It is simple a negligence to this nutritious and valuable crop while neighboring countries have progressed quite far. Provision of these services is a must to industrialize the crop. Constraints Even in the traditional system constraints are many with severe consequences. Graft of desired varieties is not available; there is damage of trees due to disease and pest infestation, during harvest in monsoon no vehicle can ply in muddy road of production sites, needs to carry head load to nearby market, immature harvest, artificial ripening with chemicals, damage due to bulk transportation and no scientific knowledge of production, processing and storage is are available. All are done in traditional way. Conclusion There is a traditional value chain, verbal contract among stakeholders which are often breached at one’s own convenience without any linkage with formal sector of extension, research and financing. 50 Participants of Value Chain FGD in Madhupur No Name Addresses Mobile No. 1 Mr. Md. Golam Mondal Bunduza, Modhupur 01714321022 2 Mr. Golam Mostafa Bicharan, Executive Director 01717333577 3 Mr. Abdur Rahman Ram Krishna Bari 01714919280 4 Mr. Md. Hsen Ali Idilpur, Modhupur X 5 Mr. Md. Azahar Idilpur, Modhupur 01745687629 6 Mr. Md. Montalin Ram Krishna Bari, Kabaira 01739606237 7 Mr. Md. Amjad Ram Krishna Bari, Kabaira 01736219806 8 Mr. Md. Abdul Jalil Ram Krishna Bari, Kabaira 01747628952 9 Mr. Gumed Ali Gobudia, Kanchain 01741712241 10 Mr. Abu Md. Habail Gobudia, Kanchain 01718988073 11 Mr. Md. Hasan Ali Ram Krishna Bari 01735114519 12 Mr. Md Anwar Hossain Pirojpur 01758921394 13 Mr. Bachad Kakraid 01724571517 14 Mr. Md. Shahjahan Kakraid 01729566976 15 Mr. Md. Najifuddin Gobudia, 01759633038 16 Mr. Md. Azizul Kakraid 01729590807 17 Mr. Md. Abdul Based Ram Krishna Bari 18 Mr. Md. Azhar Ali Ram Krishna Bari, Kabaira 01743939916 19 Mr. Palash Ram Krishna Bari, Kabaira 01712808503 20 Mr. Md. Somen Raj Idilpur, Modhupur 01821948053 21 Mr. Md. Rafiqul Islam Gobudia, Kanchain 01732319142 22 Mr. Md. Tota Mia Gobudia, Kanchain X 23 Mr. Noasher Ali Ram Krishna Bari, Kabaira X 24 Mr. Abdul Mannan General Secretary, Idulpur Pineapple Farmers Multipurpose Cooperative Society 01740905408 25 Mr. Litan Kumer Singha Roy MD, Projector Food Industries Limited 01712807048 26 Mr. Md. Abul Hossain ED, Mou Chash Unnayan Sangstha 01712563501 X 51 Appendix iii: Comparison of properties of tropical fruits Fruits Cal. Prot. (g) Ca (mg) Fe (mg) Vit. A (IU) Thiam. (mg) Vit. C (mg) Orange Banana Mango Pineapple Papaya 53 116 63 57 39 0.8 1.0 0.5 0.4 0.6 22 7 10 20 20 0.5 0.5 0.5 0.5 0.5 100 600 100 1000 0.05 0.05 0.03 0.08 0.03 40 10 30 30 50 Ber Ripe Tender Jackfruit seeds 21 98 50 139 1.75 2.0 2.0 7.04 37 53 50 0.5-1 1.1 0.4 1.5 540 30 17 0.09 0.12 0.25 166 10 12 11 Cal.- calorie, Prot.- protein, Ca - calcium, Fe - iron, Vit - vitamin, Thiam.-thiamine. Source: Azad (2000), Pareek (2001). 52 Appendix iv: Photos of Jackfruit Products Fresh Jackfruit Pod Fresh Jackfruit Pod Frozen Jackfruits Frozen Jackfruits Pod Jackfruit Papadums from Bangalore, India Jackfruit chips Jackfruit Flesh Jackfruits 53 Jackfruit Jam Jackfruit Pickle Jackfruit Slice Dehydrated Jackfruit Vacuum Dried Jackfruit 54 Fresh Jackfruit Dehydrated Jackfruit Jackfruit Chip Freeze Dried Jackfruit Dried Jackfruit Vacuum Dried Chips Chips 55 Appendix v: Gross Margin Analysis- Green Earth Agro Ltd. (Note: A Hypothetical Enterprise) JACKFRUIT PRODUCTS INVESTMENT PROJECT 1.0 INTRODUCTION Jackfruit is a typical sub-continental fruit mainly grown in Bangladesh, West Bengal, Bihar, Assam and the west coast of India. The project can be set up in any of the locations viz. Madhupur, Bhaluka, Tangail, Savar etc. Fully ripe jackfruit is sweet and has exotic flavor. The bulbs (edible flakes) contain 7.5% sugar on dry weight basis and a fair amount of carotene which is Vitamin-A. Many down the line products from jackfruit are contemplated. Apart from better utilization of perishable fruit this would also result in considerable value addition. 2.0 PRODUCTS 2.1 Applications Many products could be made from ripe jackfruit like nectar, jam, pickle, chips and canning. Jackfruit is grown in only certain parts of greater Dhaka division like Madhupur, Bhaluka, Tangail, Savar etc but its popularity is not limited to the growing regions only. Greater Mymensingh, especially Bhaluka upazila of the district, grows substantial quantities of this fruit and reportedly there is no processing unit in that area including Bangladesh. 2.2 Availability of know-how and Compliances SAARC Engineering Group, Dhaka in association with CFTRI, Mysore, has successfully developed the technical know-how of jackfruit processing. Compliance with Food Act and BSTI is required. 3.0 MARKET POTENTIAL 3.1 Demand and Supply Jackfruit is sweet in taste and also contains Vitamin-A. Like any other fruit, it is perishable in nature. Jackfruit is grown in only certain parts of greater Dhaka division like Madhupur, Bhaluka, Tangail, Savar etc but its popularity is not limited to the growing regions only. It is heavy and bulky fruit and hence transportation is not very easy and is costly as well. Therefore, its down the stream products with longer shelf56 life can be easily transported and shall also have value-addition. Products like canned pieces, nectar, jam, pickle and chips are recommended. 3.2 Marketing Strategy These products have market round the year since it is very perishable and becomes available for a very short period of time and are popular through-out the country as well as in the ethnic communities abroad. Products shall have to be sold with the help of retailers at many locations like cities/towns, bus-stands, railway stations, school/college canteens, picnic spots and various exporters etc. There is a distinct possibility of marketing these products in the metropolitan cities, district headquarters and other up-scale markets as well. Super markets show-cases widely across the country are very lucrative places of marketing such products in case of a bit large project of its type. 4.0 MANUFACTURING PROCESS Jackfruit is heavy and bulky and actual recovery of bulbs or edible portion varies from 20% to 25%. After cutting the fruit in several pieces, the bulbs are removed manually. As the fruit contains highly sticky latex, small quantity of vegetable oil is applied on hands and then seeds are removed from bulbs. In case of canned jackfruit, these bulbs are canned with a small quantity of citric acid as the pH value of this fruit is very high. While making nectar, the bulbs are passed through pulping/fruit mill and around 10% hot water is mixed. Nectar is prepared from this pulp. In case of chips, raw or unripe jackfruits are used. After removing bulbs as stated earlier, suitable smaller sizes are cut and they are fried in edible oil. These fried pieces are salted and then packed. In case of pickle also unripe jackfruits are used. After removing bulbs and seeds, small pieces are made and they are mixed with oil, salt and spices before packing. Jam is prepared from the pulp of ripe fruits with additives. 5.0 CAPITAL INPUTS 5.1 Land and Building Land of around 10 decimals with built up area of 1200 sft shall be adequate. The main production hall would occupy around 600 sft whereas balance area of around 600 sft can be suitably divided into godown, packing room and factory office. Cost of land could be about Tk. 10 Lac whereas that of civil work it could be Tk. 06 Lac. 5.2 Plant and Machinery It is suggested to have annual production capacity of 100 tons. Jackfruits are available for around 5-6 months and hence yearly working is assumed to be 200 days with 2 shifts per day. 57 100 Ltrs. capacity SS make steam jacketed kettle, Straight feeding exhaust box with 2 HP motor Starter and gear box Sterilization tanks Semi-automatic Can Sealer Can body reformer with electric motor and starter Can body flagger with electric motor and starter Fruit Mill with 2 HP motor with blades and sieves suitable for jackfruit PP Cap sealing machine Plastic bag sealing machines 1 Price (Tk.) 40,000 1 2 1 1 1 1 44,000 10,000 70,000 30,000 18,000 38,000 1 2 14,000 3,000 Large frying pans Storage containers of food grade plastic of 50 kg capacity for pickle Storage containers of food grade plastic of 30 kg capacity for pulp SS knives, utensils etc. Testing Equipments 2 9,000 100 40,000 100 30,000 LS LS 10,000 20,000 LS 12,000 1 100,000 Total 2,44,000 Machinery Items with Specifications Weighing Scales 200 Kg Capacity Mini-boiler Qty. 5.3 Miscellaneous Assets Other items like office furniture, working tables with aluminium tops in the factory, exhaust fans, storage racks and bins etc. are likely to cost Tk. 80,000/-. 5.4 Utilities Total power requirement shall be 15 HP and water requirement for production process, potable and sanitation purposes shall be around 1500 liters every day. Furnace oil or coke or wood will be required for boiler. Annual expenses on utilities at 100% activity level would be Tk. 160,000. 5.5 Raw Material Jackfruit is grown in large quantities in greater Mymensingh and the total annual production is estimated to be in the vicinity of about 175,000 MT. As against this, the annual requirement of the unit even at 100% capacity utilization will not be more than 500 MT. Actual recoveries of bulbs or edible portion is in the range of 20% to 25%. 58 Hence, to be on safer side and to present a realistic picture, recovery or yield is considered to be 20%. However, transportation of jackfruit is expensive and hence the factory should be located in the jackfruit growing area. Other items like sugar, edible oil, salt, citric acid, spices etc. are required in very small quantity and their availability would not be a problem. Packing materials like plastic/glass bottles, tins, caps, labels, printed polythene bags etc. shall be required and since the total quantities shall not be much, it is necessary to make proper supply arrangements. 6.0 MANPOWER REQUIREMENTS Skilled Workers Semi-skilled Workers Unskilled Workers 2 2 4 Monthly Salary (Tk.) 6,000 5,000 4,000 Salesman 1 8,000 8,000 Total 46,000 Particulars Nos. Total Monthly Salary (Tk.) 12,000 10,000 16,000 7.0 TENTATIVE IMPLEMENTATION SCHEDULE Activity Application and sanction of loan Period (in months) 2 Site selection and commencement of civil work Completion of civil work and placement of orders for machinery Erection, installation and trial runs 1 4 1 8.0 DETAILS OF THE PROPOSED PROJECT 8.1 Land and Building Particulars Land Building Area Cost (Tk.) 10 Decimal 10,00,000 1200 sft Total 6,00,000 16,00,000 59 8.2 Miscellaneous Assets A provision of Tk. 80, 000/- is adequate to install other support assets as explained earlier. 8.3 Preliminary & Pre-operative Expenses Any industrial venture entails certain pre-production expenses like registration and establishment expenses, trial run expenditure and interest during implementation and so on. A provision of Tk. 90,000/- would take care of such expenses. 8.4 Working Capital Requirement The project is expected to operate at 60% capacity in the first year. To achieve this target it would need adequate amount of working capital as worked out hereunder: Particulars Stock of Packing Materials Period 1 Month Margin 30% Total 0.60 (Tk. in lacs) Bank Promoters 0.42 0.18 Stock of Finished Goods ½ Month 50% 0.80 0.60 0.20 Receivables 1 Month 25% 3.00 2.30 0.70 Working Expenses 1 Month 100% 0.50 0.50 Total 4.90 -3.32 1.58 60 8.5 Cost of the Project and Means of Financing (Tk. in lacs) Item Amount Land and Building 16.00 Plant and Machinery 4.88 Miscellaneous Assets 0.80 Preliminary & Pre-operative Expenses Contingencies @ 10% on Land and Building and Plant & Machinery Working Capital Margin 0.88 Total Means of Finance 27.02 Promoters' Contribution 8.11 Term Loan from Bank/FI 18.91 Total 27.02 Debt Equity Ratio 2.88 1.58 2.24 : 1 Promoters' Contribution 30% Financial assistance in the form of grant is available from the SME Foundation, Govt. of Bangladesh, towards expenditure on technical civil works and plant and machinery for eligible projects subject to certain terms and conditions. 9.0 PROFITABILITY CALCULATIONS 9.1 Production Capacity and Build-up The rated production capacity of the plant shall be 100 MT per year but capacity utilization in the first year is restricted to 60% whereas second year onwards, it is assumed to be 75%. 9.2 Sales Revenue at 100% (Tk. in lacs) Product Canned Jackfruit 25 Selling Price (Tk./MT) 60,000 Jackfruit Jam 25 60,000 15.00 Jackfruit Nectar 20 52,000 10.40 Jackfruit Pickle 20 56,000 11.20 Jackfruit Chips 10 100 100,000 10.00 61.60 Total Qty. (MT) Sales 15.00 61 9.3 Raw Materials Required at 100% (Tk. in lacs) Qty. (MT) Unit Price (Tk./MT) Total Cost Jackfruit (Ripe) 350 2,400 8.40 Jackfruit (Unripe) 150 2,000 3.00 Sugar LS - 4.76 Citric acid, pectin, colors, essence etc. LS -- 1.00 Salt, Vinegar, spices Packing Materials/Plastic/Glass bottles & Caps Aluminum Cans LS -- 0.80 LS LS --- 3.00 6.50 LS -- Product Labels, polythene bags, new/used cartons, etc. Total 2.50 30.96 9.4 Utilities The total annual cost at 100% utilization is estimated to be Tk. 160,000/- as explained earlier. 9.5 Selling Expenses The products shall have to be sold through retailers for whom a provision of sales commission @ 10% is made. There will be some other expenses like transportation, publicity in local media etc. for which a provision of 5% is made. 9.6 Interest Interest on term loan of Tk. 18.91 lacs is worked out @ 12% per annum considering repayment in 5 years including a moratorium period of 1 year. Interest on bank borrowing for working capital is computed @ 14% per annum. 9.7 Depreciation The rates assumed are 10% for building and 20% for machinery and miscellaneous assets and the method adopted is WDV (Written-Down Value method). 62 10.0 PROJECTED PROFITABILITY No. Particulars A Installed Capacity Capacity Utilization Sales Realization B Cost of Production Raw Materials Packing Materials Utilities Salaries Stores & Spares Repairs & Maintenance Selling and Distribution @ 15% Administrative Expenses Total C Profit before Interest & Depreciation Interest on Term Loan Interest on Working Capital Depreciation Net Profit Income-tax @ 20% (Tk. in lacs) 1st Year 2nd Year --- 100 Tonnes --60% 75% 36.96 46.20 11.38 7.20 0.96 2.96 0.30 0.48 5.40 0.60 29.46 7.50 1.98 0.46 2.61 3.98 0.80 14.22 9.00 1.20 3.40 0.42 0.72 6.94 0.84 54.74 9.46 1.47 0.58 2.16 6.46 1.26 Profit after Tax 3.18 5.20 Cash Accruals Repayment of Term Loan 4.92 6.64 2.80 -- 63 11.0 BREAK-EVEN ANALYSIS No [A] [B] [C] [D] [E] Particulars Sales at 60% Plant Capacity Variable Costs Raw Materials Packing Materials Utilities (70%) Salaries (70%) Stores & Spares Selling Expenses (75%) Administrative Expenses (50%) Interest on Working Capital Contribution [A] - [B] Fixed Cost Break-Even Point [D ÷C] (Tk. in lacs) Amount 36.96 11.38 7.20 0.70 2.10 0.30 4.16 0.30 0.46 26.60 10.36 6.38 62% 64 Appendix B: List of Meetings Mr. Md. Amimul Ehsan, Senior Manager (Product Development), DMS Limited, 119/1, Shegun Bagicha, Dhaka – 1000, Bangladesh Mob. 0167808081602 Mr. Sadequl Islam Managing Director DMS Limited, 119/1, Shegun Bagicha, Dhaka – 1000, Bangladesh Tel:8362478 Dr. Engr. Md. Miar Uddin Post Harvest Technology Division Bangladesh Agricultural Research Institute, Joydevpur, Gazipur-1700 9261514 (O), 9262191 ® Mr. S.M. Quamruzzaman Project Director Integrated Quality Horticulture Development Project, Department of Agriculture Extension, Room No.732(6th Floor), Middle Building, Khamarbari, Farmgate, Dhaka – 1215 Tel. 9101175 Dr. Sreekanta Sheel Logistic (Transportation & Storage) Expert National Agricultural Technology ProjectSupply Chain Development Component Hortex Foundation, Sech Bhaban (3rd Floor), Manik Mia Avenue, Shere Bangla Nagar, Dhaka-1207 Tel. 8123433 Ext.142 Dr. Md. Anisur Rahman Supply Chain Knowledge Management Expert National Agricultural Technology ProjectSupply Chain Development Component Hortex Foundation, Sech Bhaban (3rd Floor), Manik Mia Avenue, Shere Bangla Nagar, Dhaka-1207 Tel. 8123433 Ext.105 Dr. Md. Tofazzal Hossain Mr. Raju Ahmed General Secretary Bangladesh Agro-processors Association (BAPA), House No.15 (1st Floor) Road 16 (Old 27) Dhanmandi, Dhaka-1207 Mob.01711629268 Prof. Md. Moslem Ali Advisor Bangladesh Agro-processors Association (BAPA), House No.15 (1st Floor), Road 16 (Old 27), Dhanmandi, Dhaka-1207 Tel.8144536 Mr. Md. Eleash Mridha Director, PRAN Group of Industries Corporate Headquarters Property Heights, 12 RK Mission Road, Dhaka-1203, 9563126 Ext. 143 Dr. Mosharraf Hossain Senior Consultant, Action for Enterprises NAM Vila, Flat 3A4 House No. 3, Road No. 6 Gulshan-1, Dhaka-1212 Tel. 8817188 Mr. Enamul Haque Patwari Jute Bags Export Coorporation 99 Motijheel C/A Karim Chamber (1st Floor) Room # 203, Dhaka-1000 Mr. Jean Clude Malongo Attache, Private Sector Development & Trade European Union Delegation to Bangladesh Plot 7, Road 84, Gulshan 2, Dhaka1212 Tel. 8823118 Mr. Richard Phillips 65 Member (Science and Technology) Bangladesh Council of Scientific and Industrial Research, Dr. Qudrat-i-Khuda Road, Dhanmandi, Dhaka-1205 Tel. 8620021 Mr. Hossain Mohammad Masud Sr. Industrial Liaison Officer Bangladesh Council of Scientific and Industrial Research, Dr. Qudrat-i-Khuda Tel: 9663173 Senior Consultants EU Support to Private Sector Competitiveness SME Foundation, Royal Tower, 4 Panthapath, Dhaka-1215 Mob.01771091899 Mr. John Willsie Senior International Consultant for Value Chain Analysis, Technical Assistance for Capacity Development, SME Foundation, Royal Tower, 4 Panthapath, Dhaka-1215, Mob.01771091891 66 Participants of FGD in Madhupur No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Name Mr. Md. Golam Mondal Mr. Golam Mostafa Mr. Abdur Rahman Mr. Md. Hsen Ali Mr. Md. Azahar Mr. Md. Montalin Mr. Md. Amjad Mr. Md. Abdul Jalil Mr. Gumed Ali Mr. Abu Md. Habail Mr. Md. Hasan Ali Mr. Md Anwar Hossain Mr. Bachad Mr. Md. Shahjahan Mr. Md. Najifuddin Mr. Md. Azizul Mr. Md. Abdul Based Mr. Md. Azhar Ali Mr. Palash Mr. Md. Somen Raj Mr. Md. Rafiqul Islam Mr. Md. Tota Mia Mr. Noasher Ali Mr. Abdul Mannan 25 Mr. Litan Kumer Singha Roy Mr. Md. Abul Hossain 26 Addresses Bunduza, Modhupur Bicharan, Executive Director Ram Krishna Bari Idilpur, Modhupur Idilpur, Modhupur Ram Krishna Bari, Kabaira Ram Krishna Bari, Kabaira Ram Krishna Bari, Kabaira Gobudia, Kanchain Gobudia, Kanchain Ram Krishna Bari Pirojpur Kakraid Kakraid Gobudia, Kakraid Ram Krishna Bari Ram Krishna Bari, Kabaira Ram Krishna Bari, Kabaira Idilpur, Modhupur Gobudia, Kanchain Gobudia, Kanchain Ram Krishna Bari, Kabaira General Secretary, Idulpur Pineapple Farmers Multipurpose Cooperative Society MD, Projector Food Industries Limited ED, Mou Chash Unnayan Sangstha Mobile No. 01714321022 01717333577 01714919280 X 01745687629 01739606237 01736219806 01747628952 01741712241 01718988073 01735114519 01758921394 01724571517 01729566976 01759633038 01729590807 X 01743939916 01712808503 01821948053 01732319142 X X 01740905408 01712807048 01712563501 67 Appendix C: References DAE, 2012. Food Crop Statistics. Food Crop Wing, Department of Agriculture Extension Arkroyd, W.R., Gopalan, C. and Balasubramanuyam. S.C. (1966) The nutritive value of Indian food and the planning of satisfaction diet. Sept. Rep. Ser. 42 Indian Council of Medical Research, New Delhi. Narasimham, P. (1990) Breadfruit and jackfruit. In: Nagy, S., Shaw, P.E. and Wordowski, W.F. (eds.). Fruits of Tropical and Sub-tropical origin - Composition, Properties and Uses. Florida Science Source, Inc: 193-259. Soepadmo, E. (1992) Artocarpus heterophyllus Lamk. In: Verheij, E.W.M. and Coronel, R.E. (eds.) Plant Resources of Southeast Asia No.2: Edible Fruits and Nuts. PROSEA,Wageningen, Netherlands: 86-91. Gunasena, H.P.M., Ariyadasa, K.P., Wikramasinghe, A., Herath, H.M.W., Wikramasinghe, P. and Rajakaruna, S.B. (1996) Manual of Jack Cultivation in Sri Lanka. Forest Information Service, Forest Department: 48. ICUC (2005) Training Manual on Processing and Small Business Development. ICUC, University of Southampton, UK. Bhatia, B.S., Siddappa, G.S. and Lal, G. (1956) Development of products from jackfruit. V. Dried jack seeds, flour, roasted nut and jack papad and toffee. Indian Food Packer 10:9. Bhatia, B.S., Siddappa, G.S. and Lal, G. (1959) Preparation of pectin, pectin extract and syrup from jackfruit rind. Indian J. Agric. Sci. 29:75. Azad, A.K. (2000) Genetic diversity of jackfruit in Bangladesh and development of propagation methods. Ph.D. Thesis, University of Southampton. UK. Vinning, G. and Moody, T. (1997) A Market Compendium of Tropical Fruit. RIRDC Research Report No. 97/74, Rural Industries Research and Development Corporation, Barton, Australia. 110-120. Acedo, A.L. (1992) Jackfruit biology, production, use and Philippine research. Multipurpose Tree Species Network Series. Winrock International Institute for Agricultural Development, Thailand. 51. www.just-food.com, 2002 URL: http://www.icuc-iwmi.org/ 68 Appendix D: Budget for BIO Cluster Development Action Plan N o. A 1 2 3 4 5 B 1 2 3 Heads of Expenses Human Resources Project Director Monitoring Specialist Support Staff Travel Perdiem Project Director Monitoring Specialist Sub-total Activity Cost Clusters Organizing Opening ceremony VC Analysis institution building meeting management training Sub-total Setting Facilities Agro processing Specialist Logistics Support Computer Printer Mobile Local Taxes Sub-total Training to No Time MM Rate (Ero) Year 1 Amount Year Year 2 3 1 20% 7.2 730 15768 100% 100% 36 36 480 180 5256 1728 0 6480 5256 1 1 5256 1728 0 6480 17280 6480 51840 19440 Days 30 60 600 600 600 1800 Days 42 40 560 3017 6 560 3017 6 560 1680 30176 90528 1 batch 1 Lump 100% Total 1 1 6000 3600 6000 3600 6000 3600 6 15 90 90 1 360 360 1005 0 360 36 750 9000 2 2 2 760 420 180 200 1520 840 360 200 1192 0 10050 9000 9000 27000 1520 840 360 200 9000 9000 29920 69 4 5 6 7 potential technicians Domestic Training Overseas visit Sub-total Domestic and export Market Market study, Development of supply chain Market mission abroad Sub-total Linkages among entrepreneurs and financial institutions Credit Need Assessment Business plan preparation Workshop Sub-total Identify and propagate industrially suitable varieties Identification and preservation of mother plants Training of nurseries Protocol Development for Tissue culture Sub-total Formalization of the Cluster Registration MOA preparation Technology Batch 1 6 360 3600 360 21960 360 21600 21960 21600 1 3600 3600 3600 1 3600 3600 3600 6 3600 7200 Batch 21600 28800 21600 21600 1 2500 2500 2500 1 1 2000 800 2000 800 5300 2000 800 5300 1 360 360 360 1 1500 1500 1860 1500 1860 1 1200 1200 1200 1 1 500 1000 500 500 10000 10000 70 fair Evaluation Sub-total Grand Total 1 0 4000 1700 80116 60776 4000 4000 14000 15700 53176 170248 71 Appendix E: Budget for Action Plan for JPC Development No Heads of . Expenses A Human Resources 1 Project Director 2 Monitoring Specialist 3 Support Staff 1 2 3 4 5 B 1 2 3 Travel Perdiem Project Director Monitoring Specialist Logistics Computer Weighing Machine Printer Mobile Local Taxes Sub-total Activity Cost Organize and formalize the Council National Jackfruit Convention MOA preparation Registration Launching Sub-total Sourcing technologies Jackfruit technology fair Business planning Overseas visit (6 persons) Sub-total Capacity development Domestic Amount No Time MM 1 1 10% 50% 3.6 36 Rate (Euro) 730 450 1 100 % 36 180 6480 6480 6480 19440 1 1 days 10 40 30 20 120 300 120 300 60 200 300 800 2 1 760 250 1520 250 1520 250 2 2 420 180 200 840 360 200 840 360 200 Lump Year Year Year 1 2 3 2628 2628 2628 16200 16200 16200 7884 48600 28898 25728 25568 80194 1 5000 5000 5000 1 1000 1000 1000 6 1 800 2500 4800 2500 13300 4800 2500 13300 1 7000 7000 7000 1 1200 1200 1200 6 3600 8200 Batch Total 1 360 360 21600 21600 21600 29800 360 72 4 5 6 Training Overseas visit Apprenticeship Sub-total Market identification & development Market study, Development of supply chain Market mission abroad Sub-total Linkages with financial institutions Credit Need Assessment Business plan preparation Workshop Sub-total Identify and propagate industrially suitable varieties Identification and preservation of mother plants Training of nurseries Protocol Development for Tissue culture Sub-total Grand Total 2 MM 6 48 3500 15 21000 720 22080 21000 720 22080 1 1 3500 3500 3500 3500 3500 3500 6 3500 7000 Batch 21000 21000 21000 28000 1 2500 2500 2500 1 1500 1500 1500 1 800 800 4800 800 4800 1 1000 1000 1 360 360 360 1 1500 1500 1500 1860 81338 68328 25568 1860 175234 73 Appendix F: Tentative Budget for BIO Capacity Development Action Plan No. Heads of Expenses A Human Resources 1 Project Director 2 Jackfruit Processing Specialist 3 Monitoring Specialist 4 Support Staff Travel Perdiem 1 Project Director 2 Jackfruit Processing Specialist 3 Monitoring Specialist 1 Computer 2 Printer 3 Photo copying machine 4 Mobile Sub-total B Actions 1 Establish network of enterprises and clusters Annual Meetings of Entrepreneurs Orientation meeting Conference of members Visits to Overseas market Workshop on Jackfruits Sub-total 2 Establish electronic communication system Amount No Time MM 7.2 36 Rate (Euro) 730 450 Year 1 5256 5400 Year 2 5256 5400 Year 3 5256 462 1 20% 100% 1 1 Total 15768 11262 100% 24 480 3840 3840 3840 11520 100% 36 180 6480 6480 6480 19440 Days Days 30 60 60 60 600 1200 600 1200 600 1200 1800 3600 Days 42 40 560 560 560 1680 3 1 760 420 2280 420 2280 420 2 180 360 26396 23336 18398 360 68130 3 250 750 750 1 2000 2000 2000 6 200 1200 1200 3 3600 10800 10800 1 2000 2000 2000 16750 16750 74 3 4 5 Establishment of conference room Computers Web development and hoisting information tracking system Still and movie Camera Videos, Projector Sub-total Establish information clearing house Collection Classification, cataloguing Storage in information Sub-total Establishing Standard and quality control system Setting quality standards Training on HACCP and GAP Monitoring product quality Training on quality standards Sub-total Establishing a monitoring and quality control system Designing Monitoring system Monitoring survey Printing and circulation of monitoring report 1 6000 6000 3 1 1500 400 3000 1 6000 1500 400 4500 400 3000 3000 3000 1 2000 2000 2000 3 1 15000 1800 15000 30000 1800 23700 30000 45000 1800 62700 9000 Lump Lump 1500 2000 Lump 2500 6000 Batc h Batc h 1 3600 3600 3600 2 600 1200 1200 1 1200 1200 1200 1 600 600 600 6600 6600 1 3600 3600 3600 1 3000 3000 3000 6000 2 1000 1000 1000 2000 75 Workshop for learning sharing Sub-total Grand Total 1 3500 3600 4000 3500 3500 7500 15100 175280 76
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