1. Enhancing Competitiveness through Higher Productivity

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

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

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

5.  Account for 43% of Sri Lanka’s total fruit and vegetable exports and suppliers to McDonalds, Burger King, Hungry Jack’s, Subway, 7-Eleven, Heinz, Unilever and Nestle.  Involved in large scale cultivation via outgrowers of gherkins and other fruits & vegetables such as chillies, bell peppers, jalapeno peppers, Spanish peppers, pineapple etc for the export market  Second largest gherkin exporter in Asia, processing 12,000 MT per annum and holds 62% share of the Japanese market for bottled pickles  Supplier of exotic processed fruits & vegetable to global private labels HAYLEYS AGRICULTURE

6. The Sri Lanka Experience Processed fruit & vegetable supply chain 1.Gherkins in brine in bulk 2.Value-added pickles in retail forms

7. Nucleus Farm Out-grower System Improving Quality of Farm Produce & Processing Techniques Improving Quality of Farm Produce & Processing Techniques SUNFROST LIMITED The Supply Chain 1980’s – Pickled Gherkins in bulk Identified suitable seed varieties Developed other growing techniques Training of extension and processing staff Maximizing Profit + Helping Farming Community

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

9. A Supply Chain pulled by Buyer Planting program to meet market/customer needs Weekly payments through Farmer Bank Accounts Farmer awareness of their position in the supply chain Discuss market trends at Farmer Training Classes Buyback & Price guaranteed Market Information –Increased flexibility

10. Field Extension staff - Agric. Graduates & Diploma Holders Extension staff trained by Experts from Dept. of Agric., Universities, Factory staff Farmer Training Training Classes On farm training during regular farm visits Seeds, Fertilizers on Credit Quality and correct dosage of Inputs Traceability & Timely use Easy & reliable source of Credit to Farmers No security on Credit, Settlement once harvest is delivered Farmer Inputs on Credit Technology Transfer

11. New products to add value to local Fruits & Vegetables Products that are popular in the market, new to local growers On farm Productivity & Quality improvements Effectiveness and efficiency of Inputs use (Seeds, Fertilizer, Pesticides) Labor efficiency Post harvest handling Improving Quality of Farmer Produce Upgrading Manufacturing Process Best Management Practices: 5S, QCC, Kaizen, Lean Manufacturing Cost Effectiveness Quality of Finished Product New Product Development R&D in Farming & Food Processing

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

13. LINKAGES How the supply chain activities are linked (Growers, suppliers, manufacturers, distributors, and customers) The Linkage Inputs Grower/ Supplier Transformation Manufacturer / Processor Distribution Distributor Output Customers Global Market Local Farmers HJSSunfrost

14. Key Global Partners

15.   CONSTANT MARKET FOCUS   VALUE ADDITION & PRODUCT DEVELOPMENT   INNOVATION   EMPHASIS ON TOTAL QUALITY   SUSTAINABLE SUPPLY CHAIN KEY LEARNINGS