Enhancing Competitiveness
through Higher Productivity
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
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
The Opportunities
• Demand for organic, exotic, fairtrade & 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
HAYLEYS AGRICULTURE
 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
The Sri Lanka Experience
Processed fruit & vegetable supply chain
1. Gherkins in brine in bulk
2. Value-added pickles in retail forms
1980’s – Pickled Gherkins in bulk
The Supply Chain
Maximizing Profit + Helping Farming Community
SUNFROST LIMITED
Improving Quality of
Farm Produce &
Processing Techniques
Nucleus Farm
Out-grower System
•Identified suitable seed varieties
•Developed other growing techniques
•Training of extension and processing staff
How the Linkage was provided ….
The Supply Chain
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
New Product Development
Buyback & Price guaranteed
• A Supply Chain pulled by Buyer
• Planting program to meet market/customer needs
• Weekly payments through Farmer Bank Accounts
Market Information –Increased flexibility
• Farmer awareness of their position in the
supply chain
• Discuss market trends at Farmer Training
Classes
Technology Transfer
• 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
Farmer Inputs on Credit
• 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
New Product Development
• New products to add value to local Fruits & Vegetables
• Products that are popular in the market, new to local growers
R&D in Farming & Food Processing
• 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
Mid-1990s - Value-added pickles in retail
form
The Supply Chain
HJS CONDIMENTS LIMITED
Accreditations:
HACCP / ISO 22000
ISO 9001 - 2000
ISO 14000
OHSAS, BRC
Focus on
Finished Product
Diversification –
adding value to wide range
of fruits & vegetables
New Product
Development
Market Links with
Distributors,
Food Wholesalers,
Food Retailers,
Food Manufacturers
Improved
Product Quality
LINKAGES
The Linkage
How the supply chain activities are linked (Growers, suppliers,
manufacturers, distributors, and customers)
Inputs
Transformation
Distribution
Output
Grower/
Supplier
Manufacturer /
Processor
Distributor
Customers
Sunfrost
Local
Farmers
HJS
Global
Market
Key Global Partners
KEY LEARNINGS
CONSTANT MARKET FOCUS
VALUE ADDITION &
PRODUCT DEVELOPMENT
INNOVATION
EMPHASIS ON TOTAL
QUALITY
SUSTAINABLE SUPPLY CHAIN