Fruit preserves of Namangan ltd.

        Bake-apple preserves of namangan ltd.                   An Uzbekistan bake-apple processing aggregation seeks solutions to advance raw actual aliment through industry cooperation (cooperative development) or through astern affiliation (agribusiness arrangement management) On 15 March, 2001, Ms.Gauhar Kubekova, buyer of Bake-apple Preserves of Namangan Ltd. looked at the addendum she had taken from two studies fabricated about the bake-apple and vegetable industry in the Uzbekistan The botheration she was aggravating to break was guaranteeing the availability of raw actual aliment for her marmalades, jellies and preserves business. This botheration was two-fold: 1) accepting the adapted affluence and affection of raw abstracts at the adapted time and 2) to accumulate activity and accessories centermost absolutely active in her processing centermost absolutely occupied. One of the studies she advised adapted cooperation amid the altered associates of her industry. The added abstraction adapted amalgam backwards through the acquirement of acreage and growing the raw materials, fruits and vegetables, independently. Company background Ms. Kubekova's business acquired from her amusement of authoritative birthmark jams for her friend's 15 years ago. Ms. Kubekova adapted this amusement into a business in 1999 by accretion into timberline fruits and vegetable preserves (See Annex 1 for the company's objectives). Her antecedent business efforts were directed to the Uzbekistan market. In her promotional material, she differentiated her articles from others by claiming the afterward adapted features: •         honey flavor; •         aloof blow in "putting up" (an old Uzbekistan farm-kitchen term); •         folk agent of her recipes and procedures not to be begin in cookbooks. --------------------------------------------------------------------------------------------------------------- The Case has been accounting by assistant Gerrit de Vos, Ph.D. of the Maastricht School of Administration with the cooperation of Kimep's academician Ms. Dilbar Gimranova for the sole purpose of chic altercation afterwards anticipation the authoritative convenance of Bake-apple Preserves of Namagan, Ltd. Copyright: Tacis-Kimep 2001 Her conservatory, as Ms. Kubekova alleged her assembly centre, was a home-style kitchen accoutrement a attic breadth of 60 sq, meters on the third attic of a high-rise architecture in Namangan.    The aggregation had absolute assets of Monats 3,908,030.  Afterwards three years of operation, the aggregation had remained a distinct proprietorship. Products Fruit Preserves of Namangan produced the afterward array of products: Jams and Marmalades Strawberry Marmalade Cherry Marmalade Raspberry Marmalade Plum Marmalade Apricot Jam Peach Jam Apple Jam Alycha Jam Jellies Red Currant Jelly Cherry Jelly Raspberry Jelly Black Currant Jelly Apricot Jelly Peach Jelly Grape Jelly Preserves/Pickles Strawberry Syrup Cherry Syrup Raspberry Syrup Red Currant Syrup Black Currant Syrup Plum Syrup Grape Syrup Alycha Chutney Peach Chutney Apricot Chutney In developing formulae for the jams and jellies, affliction was taken to accommodated the standards of the EEC, the United States, Australia, Japan and alternative countries that had apparent absorption in Uzbekistan fruits. Marketing The December 1999 affair of Gourmet Magazine appear in the United States and broadcast worldwide, accent the allowance bazaar and the specific ambition bazaar appear which the aggregation basic to absolute its business efforts. The afterward is a citation from that magazine: "Though appearance changes, one allowance that charcoal around-the-clock is the allowance of food. In an age of anytime accretion commercialism, bootleg aliment accept become all the added preciousness. Their alone affection and the time invested in their alertness access a address and "special caring that are generally abysmal in today's mass-marketing world" Quation #1 While developing this ambition bazaar in the Uzbekistan and to a bound extend in Kazakhstan and Kyrgyzstan, the aggregation additionally approved a added all-around clientele; so far, aliment in Australia, Hong. Kong, Japan, the United States and Federal Republic of Germany had placed balloon orders. The action to access into consign business had appear from the owner's acumen that aggressive in all-embracing markets would enhance the company's bazaar knowledge, extend the artefact line's activity cycle, abate risks through bounded diversification, and advance the company's all-embracing acknowledgment on investments. By affairs anon and alongside through importers, the close had been able to access its 2000 sales by 49 per cent in 2000 and accepted to access this bulk by 20 per cent in 2002. The aggregation acclimated a cost-plus appraisement action by abacus a 40 per cent mark-up to its labor, abstracts and aerial costs. The company's sales achievement is presented below: Domestic Sales                                Consign Sales (value in $US)                               (value in $US) 1999       2000        2001               1999            2000           2001 Jams/Marmalades                 101.420       146,800     176,000      64,905        95,703-      115,100 Jellies                                    81,450       116,850     136,700      46,880        70,737        84,900 Preserves                              49,450       62,950       75,500 Candied Fruit                          5,480       9,020         10,800 Pickles/Chutney                   51.950       83J500        101.000      27.845        41.610        50.000 Total sales                            289,730     419,520     500,000      139,630        208,050      250,000 Packaging The company's alone bottles (140 gms, 2.70 gms, 400-460 gms, 530-580 gms), were cap-sealed to assure adjoin tampering1, topped added with black farria, and angry with abaca string. The artefact was packaged in a "gift-pack" fabricated in assorted sizes and designs, and was generally put into hand-woven baskets application breach bamboo, rattan, coconut, and aboriginal vines. _The aggregation was aggravating to get the jairs "hand-blown" by a bounded canteen blower. This would differentiate anniversary package; anniversary jar would backpack a characterization anecdotic the art of canteen blowing. Production To aftermath 2,700 cases of bottled preserves (12 bottles per box at 450 grammes per bottle), a assembly lead-time of 90 canicule was needed. All of the close fruits were candy in baby batches to ensure the best accustomed affection of the fruits. The preserves were hand-made from processing to packaging. They did not accept bogus appearance or additive and no preservatives were added. Because of their low amoroso ratios to the fruits, they were advised bloom foods (see Annex II for the company's assembly process). The bake-apple processing industry The Uzbekistan bake-apple processing industry had commonly perceived itself as a abstracted article from the farmers and the distributors. Raw abstracts were generally bought in the accessible bazaar back the fruits were in division to be followed with a concentrated accomplishment to action the fruits into lurid and affluence and benumb the lurid for approaching use. The accretion assurance of the industry on consign business put into focus the problems associated with bare affection and affluence of raw abstracts for consign needs. The abbreviate division for assorted fruits, such as strawberry, raspberry, red accepted resulted in blunder of accumulation and aerial prices during the off-season, and inconsistent affection and birthmark afterwards processing (see Annex III for the seasonality of bake-apple aliment in Uzbekistan). In adjustment to advance poor supplies, two altered strategies had acquired aural the industry: 1.   To access cooperation aural the industry  (cooperative development of producers)and 2.   To access vertical astern affiliation (agribusiness through buying or log appellation leasing of land). Both strategies accustomed that horticultural/agricultural assembly and processing could not be separated. This assurance was accent by the abbreviate activity p of beginning bake-apple and consistent aerial losses aural the assembly access if cooperation was not achieved. Either one access adapted an agri-business administration philosophy. Strategy development and action making Ms. Kubekova was larboard with the activity of agnosticism about what action to implement. The Accommodating fatigued the charge for cooperation and administration of conceivably 20 or added alone growers. She wondered about whom would do the arch and at what terms. The botheration was that all associates in the accommodating  were small; either the producers or processors had approved no cogent leadership. The farmers' absorption in basic a accommodating could advance to their access leadership; this was a footfall in the adapted direction. But this additionally meant added bazaar advantage for the accommodation members, which would advance to college prices. Her accomplished acquaintance with arrangement agronomics had formed back a bonanza crop had occurred putting burden on prices in the accessible market. However, breaking the arrangement by carrying beneath affluence at adjourned prices or abnegation to bear at all during times of shortages, had fabricated her afraid about  based on growers cooperation. The aftermost affair she basic was to abate a adopted adjustment through dearth of bounded accumulation of raw materials. However, she articular that a growers accommodating would accept added axial command, and she ability be bigger off with signing affairs with axial administration and let them accord with the alone growers to delivering  the  apprenticed aftermath or not! If she went her own way and became am agribusiness administrator by amalgam backwards,  would this action break her accumulation problems? She was not an able in agronomics production. She ability accept to appoint an agronomist. What about the lead-time afore harvesting? She additionally accomplished that best of her raw abstracts had a one-year seed-to-harvest crop cycle. Would she acquaintance bigotry if her crops would abort and had to buy alfresco her own assembly system.? What  about the added banking cesspool i.e. basic advance into land.? Low absorption government loans were accessible but her anchored costs would increase. Should she accede leasing or a collective venture, which would beggarly beneath risk, but would additionally absorb the administration of abeyant profits? Questions: 1) What are the risks and opportunities complex in application an ‘ accommodating development’ to break accumulation problems of Ms. Kubekova? 2) What are the risks and opportunities complex in application a agribusiness administration (i.e. through acreage buying or continued appellation leasing) to break the accumulation problems of  Ms. Kubekova? 3) What alternative advancement do you accept to break Ms. Kubekova’s accumulation problems 4) What are the all-around trends in all-embracing agriculture : a)  Accommodating Development or   b) Agribusiness Administration through amalgam agronomics with processing 4) What are the affairs of applying agribusiness administration to Kazakhstan’s agriculture. ANNEX I NAMANGAN FRUIT PRESERVES LTD. Objectives 1.              To appoint in analysis and development to abstraction the concrete and actinic characteristics of the bake-apple accessible in Uzbekistan throughout the year and to appraise they're processing potential. 2.              To  advance formulae for aerial affection preserves  and advancement the  absolute bartering formulae accurately for jams jellies chutneys, and non-traditional pickles. 3.              Accustomed the above, to advance a business action for acceptation barter and advance prices at aggressive levels. 4.              To animate added agronomical production, greater appliance of acreage products, bigger application opportunities for processing. 5.              To serve as a pilot activity for the accessible alteration of technologies to the areas area raw abstracts are in abundance. 6.              To actuate economies of calibration for the applicable aliment processing  ability accustomed the afterward constraints: (a)  melancholia attributes of fruits/vegetables, (b) assorted concrete characteristics of fruits/vegetables handled, (c)  no bake-apple and vegetables orchards developed, (d) capricious availability and aberrant bulk of raw materials, (e)  bare administration infrastructure, (f)  bare affection ascendancy of raw abstracts and packaging materials. 7.              To abetment in the Uzbekistan's bread-and-butter development affairs as an agro business enterprise, apart or in concert with others, and to analyze added appliance of fruits/vegetables processing. 8.      To advance adapted technology utilizing bounded raw materials, bounded manpower, and locally accessible activity sources. 9.   It is the aim of the aggregation that there be no acumen amid what is for bounded burning and for export. 10. To acquaint the company's articles to exports markets. ANNEX II PRODUCTION PROCESS  Sorting of fruits Jellies Chutney Jams/Marmalades Candied Fruits Juice extraction Adding of sugar Cooking Bottling Peeling and Seed Removal Fermentation Preparation of Pickling Solutions/ingredient  Cooking Bottling Peeling and Seed removal Cutting/Slicing Adding of sugar Cooking Bottling ANNEX III SEASONALITY OF FRUITS MONTS IN FRUITS SEASON JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC Strawberry X X Cherry X X Raspberry X X Plum X X X Apricot X X X Peach X X Red Currant X Black Currant X X Apple X X X X Grape X X X X X Alycha X X X

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