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Case Study:An Agribusiness and Marketing Project in Kyrgyz Republic through a World Bank Loan


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Attribution: Please cite the work as follows: “Case Study: An Agribusiness and Marketing Project in Kyrgyz Republic through a World Bank Loan.” 2018. Washington, DC: The World Bank Group. License: Creative Commons Attribution CC BY 3.0

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Acknowledgements

This case study was developed by the infoDev and Industry Solutions Units of the Finance, Competitiveness & Innovation Global Practice of the World Bank Group with technical support from Agland Investment Services and J.E. Austin Associates. Other contributors include the International Finance Corporation and the Agriculture Global Practice of the World Bank Group.

The study team included Anupa A Pant, Blair Edward Lapres, Ellen Olafsen, Loraine Ronchi, and Peter A Cook of the Finance, Competitiveness & Innovation Global Practice, and William Mott, Martin Webber, Stephanie Haile, Madeleine Nelson, William Scott, Gareth Smail, Donald M. Taylor, and Laya Hess-Skinner of a consortium of Agland Investment Services and J.E. Austin Associates. The team received guidance from a decision review panel chaired by Ganesh Rasagam and consisting of Dietrich Fischer, Milaine Rossanaly, and Christopher Ian Brett. The paper benefited from discussions with and guidance from numerous World Bank colleagues, Bradford Roberts, Parmesh Shah, Selchuk Tanatar, Bas Rozemuller, and Sarah Ockman.

This study was made possible through the support from the governments of Norway, Sweden, Finland, and the UK’s Department for International Development (DFID).

Table of Contents

Synopsis 1

Background on The Kyrgystan Agro-Processing Industry 1

State of the Kyrgyz Agro-Processing Industry 1

Increasingly Competitive Markets 2

Linkages between SME Agro-Processors and Lead Firms 2

Raw Material Procurement 2

Abmp Project Design and Distinguishing Features 3

Project Results and Sustainability 7

Business Linkages Lessons Learned 11

Lesson 1: Flexible implementation structures help to ensure

responsive, demand-driven TA 11

Lesson 2: Careful selection of SMEs contributes to

successful results 11

Lesson 3: Design technical assistance packages that are

comprehensive, based on client needs 11

Lesson 4: Building local capacity leaves a sustainable

legacy in knowledge spillovers 12

Lesson 5: Consider the needs of the private sector when

planning for sustainability of training facilities 12

Resources 12

Annex I. ABCC Client Companies 13

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SynopsisThis case is an example of a publicly led, bottom-up initiative aimed at improving the competitiveness of agro-processing small and medium enterprises (SMEs) and linking them to domestic and export markets. The Agribusiness and Marketing Project (ABMP), funded by the World Bank, illustrates how customized technical and marketing assistance provided the basis for modernization and expansion of the food and beverage processing industry in the Kyrgyz Republic. The project applied an innovative approach to address the needs of 42 carefully selected agro-processing SMEs in a manner that was comprehensive, customized, and flexible. SMEs were primarily concentrated in fruit and vegetable processing, followed by dairy processing activities. The project produced detailed action plans based on clients’ needs, which helped businesses create new products, improve product quality through technology and process upgrades, and make new linkages with domestic and international buyers (lead firms), among other targeted assistance. The project achieved successful results, including significant increases in the sales and profits of agribusinesses supported by the project, facilitation of 142 new sales contracts valued at US$17.5 million, and various other performance improvements by local agro-processing SMEs. The World Bank’s project design also succeeded in training a cadre of local agribusiness professionals through strategic efforts to build the capacity of local consultants by pairing them with foreign experts.

The team would like to thank the cooperation of the World Bank’s Task Team Leaders for this project—Ed Cook, Sandra Broka, and Talaibek Koshmatov—for their facilitation and assistance in helping conduct this case study. The team would furthermore like to thank those who made themselves available for interview during the fieldwork, including: Mr. Almaz Dorombaev, Ms. Bermet Musakozhoeva, Mrs. Kojegulova Daria, Ms. Aigul Jolochieva, Almaz Dorombaev, Mr. Nurdin Osmonbaev, Mr. Asanbekov Nurbek, Mr. Ahmetov Duyshenkul Malikovich, Mrs. Tsoy Natalya, Mr. Kavsheev Akhtiam, Mr. Tagaev Ermek, Mr. Abdyvaitov Berdigul, Mr. Esenaliev Orozaaly, Polat Bayogliev, Mr. Madamin Anarbaev, Mr. Nurgazy Samidinov, Mrs. Bakirova Roza, Mrs. Kumushbekova Aynura, and Mr. Magomed.

For more information about the project, see the World Bank’s projects and operations database: http://www.worldbank.org/projects/P049724/agribusiness-marketing-project?lang=en&tab=overview

Background On The Kyrgystan Agro-Processing Industry

State of the Kyrgyz Agro-Processing Industry The collapse of the Soviet Union in 1991 precipitated a massive economic decline in the Kyrgyz Republic. In 2003, when the World Bank began preparations for the Agribusiness and Marketing Project (ABMP), the economy was slowly recovering. The growth rate of the agriculture sector, however, had slowed from over 10 percent in 1996 to 3.3 percent in 2003. This was partly due to the land reform program of 1998, which restored farm ownership to small farmers, resulting in an increase in subsistence farming (World Bank 2004).

State-owned enterprises, including many in the agro-processing industry, were privatized during this period. However, enterprises continued to be saddled with a legacy of excess production capacity, outdated equipment, inadequate management and accounting systems, and poor marketing skills (World Bank 2004). Imported foods accounted for an increasing proportion of domestic processed food sales, which were already limited by a domestic market consisting of only a little more than 5 million people. Raw material procurement was unorganized and difficult, made more so by the supply chain disruptions caused by land reform.

A new group of agro-food processors was emerging, but most were small-scale, underinvested, and lacking adequate marketing skills. They employed unattractive packaging and utilized outdated technology that failed to meet food safety standards in domestic or international markets. At the time of project approval, it was estimated that less than 15 percent of agricultural produce (by value) was being processed (World Bank 2004). At ABMP project inception, there were only 126 registered agro-processing enterprises, 35 of which were companies. The remainder were sole proprietorships (Ministry of Agriculture 2016). The majority of food processing companies were engaged in cereals processing, primarily wheat. Kyrgyz fresh fruits

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and vegetables represented the largest non-cereals processing sector, accounting for 943,771 tons of raw material, slightly more than .02 percent of total Kyrgyz fruit and vegetable production (FAO 2011). Processed products included pickled cucumbers, marinated tomatoes, tomato paste, and natural juices. It was difficult, however, for the Kyrgyz fruit and vegetable processors to compete with other foreign producers due to unattractive and inappropriate (difficult to open) packaging; absence of certification; irregular product supply; and reluctance to take back inferior goods, which further limited competitiveness.

Increasingly Competitive Markets By 2006, the domestic food market was weak and increasingly captured by foreign food producers, especially from Kazakhstan and Turkey. In 2009, the country had a negative food trade balance of $240 million and this had been steadily increasing over time (FAO 2011). Exports of processed food were lagging. Kyrgyz agro-food products faced rapidly increasing competition from Chinese and European suppliers in the traditional export markets of the Commonwealth of Independent States. While a few Kyrgyz processors were maintaining their historical trade linkages with regional buyers, based on a reputation for reliable quality and service, the majority of firms were losing markets. The major export destinations for Kyrgyz agro-processing exports in 2009 were Kazakhstan, Tajikistan, and Russia. Primary markets for processed food imports were Russia, Kazakhstan, Ukraine, and Belarus (FAO 2011). This has not changed significantly in the intervening years.

Linkages between SME Agro-Processors and Lead Firms Domestic markets for processed food include supermarket chains, independent retailers, and institutions such as restaurants, hotels, commercial canteens, and military bases. There are at least three types of marketing arrangements used by processors. Most firms market their products directly. A few processors utilize associated agents to handle their export transactions. These are generally individuals who have long-term relationships with the processors. The agents are responsible for all export transaction details, including establishing linkages with lead firms, transport logistics, necessary documentation, monitoring deliveries, and accepting payment. A third mode utilized

for domestic transactions consists of middlemen who contract with numerous processors to handle deliveries to several thousand small, independent retailers. This latter practice gained popularity several years ago when some of the processors boycotted the supermarket chains over unfair treatment, and served independent retailers instead. The boycott eventually ended and the role of the middleman is giving way to direct deliveries by the processors to their retail customers (Case Study Interviews 2016).1

Agro-processing enterprise linkages with lead firms range from formal contractual relationships to informal trading arrangements or stand-alone product purchases. There is no standard pattern to these relationships. They vary according to the history of the individual firms and their management and marketing approach, as do their internal organizational structures, product lines, and marketing programs (Case Study Interviews 2016).

Some examples of processor companies can help to illustrate the types of export and commercial relationships that exist in the country. One of the major food processors in the Kyrgyz Republic is Argrplast, which produces and markets 36 fruit and vegetable-based products. Approximately 25 percent of these products are marketed locally, while 20 percent are exported to Kazakhstan, and the remainder is exported to Russia and Eastern Siberia. Osko is a processor of freeze-dried fruits and vegetables and exports approximately 80 percent of its production, with annual contracts with lead firms in Russia, Kazakhstan, and Japan. The traditional method of linkage to markets in the case of Argrplast and Osko is through an agent who negotiates the amount and price for each order.

Raw Material ProcurementAgro-processors procure raw material from various sources, including contract growers, cooperatives, individual farmers (many of whom are women), and small village markets. The many small-scale landholders that evolved as a result of land reform in most cases joined newly formed cooperatives. Food processors generally procure their raw material directly from farmers, with the exception of those engaged in contract farming. In the case of contract farming, the farmers are usually organized into production units with a lead farmer appointed by the processor. The lead farmer oversees

1 The information was derived from interviews with agro-processors, ABCC staff, and former ABCC consultants.

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the production process, aggregates product, handles delivery logistics, and pays the other farmers for their produce (Berdigul 2016). In addition to procuring directly from farmers, some processors purchased specialty crops, such as strawberries, from small village markets. In some cases, the cooperative handles crop deliveries to the processors. Processors purchase processing supplies, additives, and machinery and equipment from specialized dealers or distributors. The majority of these items are imported.

ABMP Project Design and Distinguishing Features The Agribusiness and Marketing Project (ABMP) was initiated under World Bank sponsorship, in close collaboration with the government of the Kyrgyz Republic. The ABMP was designed to be a comprehensive approach focused on enhancing industry competiveness, organized around two components: the Market Development Component ($6.05 million in actual disbursements) and the Access to Credit Component ($6.77 million) (World Bank 2013). Project duration was initially four years, but extended four times to a total of seven years, spanning from 2006 to 2013 (World Bank 2013).2 The project worked directly with agro-processing enterprises to improve the competitiveness of their products and link them to key domestic and international markets in order to increase the sales and profits of agribusinesses supported by the project. The project aligned with the broader goal of supporting the economic growth of the country. Total project funding amounted to $12.97 million (World Bank 2013).3

The original objectives of the ABMP were to expand agricultural processing, marketing, and trading activities; to increase the number and economic importance of producer organizations; and to improve

2 In total, the project required restructuring papers six times. 3 Comprised of $8.1 million in World Bank loans and $4.75 million in

government of Japan grant funding.

market and trade linkages between producers and lead firms (World Bank 2004). The project was restructured in 2009 to reflect a streamlining of objectives to prioritize technical assistance (TA) packages for modernization of food processing firms in order to address major barriers to market expansion for the industry, particularly those involving export markets. The objectives of increasing the number of producer organizations and improving linkages between producers and trade organizations were removed from the scope, as other donors were addressing these elements (World Bank 2013).4 These removed objectives referred to linkages between primary producers and off-takers. The revised objectives placed the project emphasis squarely on linkages between agro-processors and buyers, calling for the project to “increase the sales of agribusinesses supported by the project (in percentages); and to increase the profits of agribusinesses supported by the project (in percentages)” (World Bank 2013).

The former focused on improving the capacity of agribusiness value chains through both firm-level technical assistance packages and market linkages, as well as public service upgrades that would benefit the industry as a whole (e.g., market information systems, grading standards, shared infrastructure).5 The latter largely provided loans to agribusinesses through existing banking institutions, with some technical assistance provided to the banking sector. The Access to Credit Component is not discussed further in this case study; however, there was minimal overlap between the beneficiaries of the two components, aside from 58 matching grants provided to farmer cooperatives—for a total of $800,060 under the Farmer Cooperative Matching Grant Component—who also received cooperative management and membership training from the ABCC (World Bank 2013).

The implementation modality for the Market Development Component was the establishment of the Agribusiness Competitiveness Center (ABCC). The main ABCC office was established in Bishkek, with a smaller branch office in Osh to service the

4 A Farmer Cooperative Matching Grant Program ($780,000) was also added during the 2009 restructuring in order to increase domestic food production in response to the 2007-08 global food price crisis.

5 Funding for the Food Technology Training Center was later justified under the public grant subcomponent.

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southern region. The design of the ABCC resulted in five distinctive features that set the ABCC apart from previous donor projects in the Kyrgyz Republic, including:

1. independent authority to operate with a more flexible, demand-driven approach;

2. capacity building and training for local consultants who would provide advisory services directly to agribusiness enterprises, supported by foreign consultants;

3. careful selection of participating enterprises;

4. comprehensive and customized technical assistance packages; and

5. hiring marketing consultants in key export countries to facilitate export linkages.

The design details are elaborated upon below, as well as some discussion on how the design features fared during the implementation process.

1. Organizational structure of an independent and flexible institution

A number of risks, such as weak institutional capacity, political risk, and project complexity, resulted in the decision to create an independent nongovernmental entity to carry out the Market Development Component (World Bank 2004). Most donor projects at the time housed their implementation units within a government line ministry, and indeed the implementation unit was technically housed within the Ministry of Agriculture, Water Resource, and Processing Industries. However, as the project spanned the responsibilities of several ministries, a supervisory board was established to formally govern the ABCC and represent the voices of multiple government ministries. The ABCC was set up as an autonomous and legally registered organized, governed by a supervisory board, which was chaired by the Ministry of Economy, Industry, and Trade (MEDT), and composed of representatives from the Ministries of Agriculture, Water Resource, and Processing Industry (MAWRPI), the Ministry of Finance, donors, and four private sector members (World Bank 2004).6 The representation of three government ministries was intended to more comprehensively address the needs of the agro-processing sector, since

6 The Ministry of Finance was represented to ensure coordination with the Access to Credit component, for which they were responsible for implementing.

it spanned the mandates of more than one ministry. Private representation was intended to facilitate greater coordination between the private sector and government, where prior to the project there was little interaction (World Bank 2004).

This design proved to be an effective solution to reducing institutional risk that might have become a problem manifested if all implementation responsibility had been housed within one ministry. The governance structure also facilitated greater flexibility in decision-making that allowed the ABCC to be responsive to events on the ground, resulting in project restructuring and reallocation of funds to where they were most demanded (World Bank 2013). For instance, the 2009 restructuring eliminated components that were addressed by other donors and reallocated funds to a Farmer Cooperative Matching Grant Program implemented under the Access to Credit component (World Bank 2013).

2. Capacity-building of local agro-processing consulting services

From the outset, the project was clear about the intent to build the skill sets of local consultants by pairing them with foreign consultants. At the time of the project’s design, local consulting services were present in the country, but with little focus on the agro-processing subsector. Consultants were selected according to set criteria that included high education in an appropriate field, and practical work experience related to enterprises or agribusiness. Indeed, the international consultants were surprised by the strong capacity of local food technologists, marketing consultants, and financial management specialists. All local consultants had higher education in their field. For instance, all technology consultants had education in food technology. The primary motivating factor for the consultants was their access to an extensive ABCC consulting training program combined with the opportunity to work with and learn from competent international consultants. Consultants knew that developing professional skills could increase their value as consultants or employees long after the project ended.

In total, there were 30 staff members housed within the ABCC office in Bishkek and six in Osh. Of these, 17 were industry experts. Some 25 local specialists were also contracted on an as-needed basis to provide technical assistance. In the first two years, ABCC staff and consultants received 17 training programs and workshops on subjects including diagnosis of enterprise needs; business planning; food marketing; accounting

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and financial management; sales and marketing; food product quality assurance, such as HAACP application and health and safety measures; consulting skills; and other food industry subjects (World Bank 2013). The French firm CA 17 International provided training to the ABCC team and ongoing technical support for the delivery of services for all 42 enterprises.7 The firm collaborated with the local ABCC consultants and served as a constant mentor, providing on-the-job training and coaching of local consultants as necessary. They also collaborated with local consultants on conducting enterprise diagnostics and devising technical assistance packages and action plans for ABCC clients (CA 17 2009).

3. Careful selection of enterprises

ABCC implemented a careful three-step selection process for the identification of enterprises to receive advisory services.8 Initially, questionnaires were sent to 400 processing enterprises9 with 85 responses. Of the respondents, 27 enterprises were selected for further screening by addressing questions that assessed the enterprises’ willingness, capability, and resources to undertake changes and make capital investments (Broka and Koshmatov 2011). Selection criteria included whether company managers were fully committed, whether the decision-making process was streamlined, and whether the company was able to secure adequate funding to carry out the required activities. Twenty companies were selected as partners for the first round of technical assistance packages. An additional 22 companies were later added to the participant list, selected through the same process.

The first 20 selected firms were required to pay 3 percent of the TA cost. This was raised to 10 percent for the second group of firms. The cost-share requirement occasioned some skepticism on the part of the initial 20 beneficiaries, most of whom wondered whether they would realize commensurate value for the fee. Donor programs in Kyrgyz typically provided services to project beneficiaries free of charge.

Project reviews suggest that the rigorous process of selecting enterprises was instrumental in achieving

7 The CA 17 contract began in January 2008 (CA 17 2009).8 The selection of the first set of enterprises was the responsibility

of the international consultant, the ABCC staff, and the local consultants.

9 While there were 126 registered companies, the 400 includes many tiny, household-based enterprises, as well.

successful results (World Bank 2013; World Bank 2016; Broka and Koshmatov 2011). However, it took some time for ABCC consultants to build trust and establish collaborative relationships with client firms. Broka and Koshmatov (2011, 2) state, “Visits of ABCC consultants to the clients’ premises were treated as a courtesy, and the consultants were not expected to be too inquisitive or to excessively bother senior management. At times, ABCC consultants were literally left knocking behind the gates.” Many companies had experienced disappointing results from prior experience with consultants. However, by the time the second batch of 22 companies was selected, all concerned appreciated the value of the ABCC services and fully accepted the additional cost (Broka and Koshmatov 2011; World Bank 2016).

Most enterprises selected were newer, more aggressive companies. The old line Soviet food processing companies were generally not interested in the project (Broka 2016). The majority (65 percent) of client enterprises were involved in processing of fruits and vegetables, producing a range of products from canned and pickled vegetables to fruit juices, compotes, pastes, jams, and dried fruits. The second most common activity, representing 10 clients, was the production of dairy products such as cheese, butter, condensed milk, and fermented milk products. The remaining five enterprises produced various other food and beverage products including honey, eggs, and potable water (World Bank 2013). A number of the processors produced multiple product lines. Most processing activities required moderate to high levels of labor, capital, and knowledge intensities.10 Most enterprises sold their products to the domestic market. Nearly 40 percent sold to both domestic and regional or international markets, and three enterprises sold exclusively to export markets (World Bank 2013).

4. Servicing agribusinesses with comprehensive and customized technical assistance packages

The ABCC team was charged with increasing the sales and profitability of the client agro-processors by improving their management, marketing, and technological capabilities, and helping to link them to lead firms, particularly regional buyers. The principal barriers to accessing export markets included shortages and poor quality of raw materials; outdated plant facilities and equipment; lack of sufficient market contacts; too little focus on new product development;

10 Austin’s Level 3 of agro-processing.

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BOX 1: TYPES OF ABCC SERVICES

Marketing Technology Advisory Financial Management Business Management

• Sales and trade promotion

• Marketing assistance (branding, labeling, new product development, etc)

• Design of processing lines

• Identifying and sourcing new processing equipment

• Assistance in meeting food quality standards

• Financial management and accountant training

• Introduction of modern financial management systems including installation of state-of-the-art accounting software

• Business (and cooperative) management

• Preparation of business plans and loan applications

• Introduction to financial sources

• Legal / regulatory advisory services

• Efficient business negotiations

Source: World Bank, 2013

and inadequate internal management systems (World Bank 2004). Given the diversity of the enterprises, ABCC consultants conducted detailed diagnostic studies for each client that identified the most pressing constraints and opportunities specific to their enterprise (Broka and Koshmatov 2011). The diagnostic process resulted in detailed action plans that outlined customized assistance packages and timelines that attempted to comprehensively address all aspects of the client-specific needs. Both the ABCC and the client agreed to the contents, and the enterprises’ managers dedicated resources toward implementation of the plan. The ABCC had in-house procurement capabilities to assign qualified consultants to work with clients according to the scope and technical requirements outlined in the detailed action plan. Typically, local consultants worked directly with clients, but were initially supported and augmented with international expertise (World Bank 2013).

ABCC services included, but were not limited to, marketing consultation, technology advisory, financial management, and business management (Box 1).11

Examples of the assistance provided to clients included (1) assisting the Dessert OJC Company with the acquisition of new beverage processing lines, and (2) replacing outdated cyclone and pump equipment in the Talas Sut OJSC dried milk processing plant. An ABCC technology consultant (a) identified a new processing line at a cost of $136,000, compared to an earlier offer of $342,000; (b) located a new heat pump that used diesel fuel, eliminating the need for expensive bunker fuel and subsequent emission charges; and (c) designed the new processing line and supervised its installation.

11 Note that some project materials speak about the Market Development Service (MDS) as a separate group within ABCC, but due to the interrelated nature of all services rendered to clients, the MDS is not conveyed as a separate group in this case.

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Indicator Project Target Results Achieved

Increase in sales of agribusinesses supported by the project 25%

1st Group of 20: 138%2nd Group of 22: 229%Project Average (with credit line): 114%

Increase in profit of agribusinesses supported by the project 20%

1st Group of 20: 99%2nd Group of 22: 152%Project Average (with credit line): 107%

Volume (in US$) of trade deals facilitated $2 million $17.5 million

Number of agribusinesses receiving assistance from ABCC 40 42

Number of market analysis reports prepared and disseminated 20 52

Source: WB, 2013

TABLE 1: AGRIBUSINESS AND MARKETING PROJECT RESULTS ATTRIBUTED TO ABCC

Inaddition to providing hands-on technical assistance, the ABCC launched a market information center that featured an online forum12 for the buying and selling of agricultural produce. It also provided wholesale prices for agricultural products by region, as well as contact information for equipment suppliers, farmer cooperatives, agribusiness companies, financial institutions, and consulting companies, among other relevant value chain actors. The center offered a dial-in option for a small fee (Broka and Koshmatov 2011; World Bank 2013).

5. Hiring marketing consultants in key export countries to facilitate export linkages

The initial design for ABCC incorporated trade linkage contractors in Russia to facilitate agro-processing sales by identifying supply gaps. Though somewhat innovative, the initiative was abandoned during the 2009 restructuring due to lack of results. By the time ABCC organized Kyrgyz suppliers and sent the trucks to the Russian markets, other suppliers had seized the opportunity (World Bank 2013). The project yielded better trade facilitation results through direct marketing efforts and trade fair participation.

12 For more information about the market information center, see www.agromarket.kg

Project Results and Sustainability The ABMP generated a high economic rate of return, estimated to be 221 percent (World Bank 2013). It should be noted, however, that this figure corresponds to the entirety of the ABMP program, which included other components beyond just the ABCC.13 Project objective targets were exceeded for all indicators, as seen in Table 1. Project objectives and monitoring efforts were focused on the profits and sales of the enterprises assisted, which did not incorporate evaluations of the impact of agro-processing growth on upstream (farmers) or downstream linkages (retailers). Some client enterprises reportedly worked closely with their suppliers to improve product quality, but this was not the case for all enterprises (World Bank 2013).

13 The ERR is based on project cost ($12.73 million) compared to the change in profits over one year generated from (a) 25 percent of the enterprises receiving ABCC technical assistance packages, and (b) the investments made with support of the Access to Credit Component by 70 percent of borrowers.

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BOX 2: ABMP IMPLEMENTATION AND POLITICAL EVENTS TIMETABLE

SME Support SME SupportABCC Ends

EndsEnd 1st Cohort SME Support End 2nd Cohort SME Support

Oct-08 Jul-09 Apr-10 Apr-10

Project Restructured

2nd

Positive results were mostly achieved during the last few years of the project, as implementation was encumbered by various political and economic interruptions. Most enterprise assistance was delivered during the first five years, whereas the last two years were dedicated to completing the Food Technology Training Center (World Bank 2013). The project was launched in May 2005, but it took almost three years before the ABCC selected the first set of 20 enterprises (World Bank 2013). The second set of 22 was selected two years later in 2010. These implementation delays were partially due to several external events. The March 2005 Tulip Revolution disrupted overall economic activities and affected the government decision-making process for six months. The volatile political situation delayed the start-up phase of the project. Decision-making was also interrupted by the 2007-08 food price crisis, the 2008-09 global financial crisis, and Kyrgyz political turmoil in 2010 (Box 2).

Project outcomes were generally favorable in terms of market linkages, marketing abilities, technology transfer, improvements in management and accounting systems, improvements in product quality, and obtaining ISO certification. While the political and economic events adversely affected some companies, most project clients achieved excellent results. Enterprises felt that the comprehensive nature of the assistance package and the longer duration of advisory services contributed significantly to achieving sustainable results (World

Bank 2013). ABCC assistance was provided to clients for up to 18 months, depending on the scope of the detailed action plans. Only a few companies had negative views of the ABCC consultants. An example of a comprehensive technical assistance package and its results is captured for Agroplast Company (Box 3).

A survey of ABCC beneficiaries was carried out between August and September 2012, three years after services ended for the first cohort, and one year after the second cohort (World Bank 2013).14 Agro-processing enterprises reported that ABCC consulting services led to specific benefits, including increased output, higher sales and profits, and the ability to attract increased capital. Firms were convinced that increased profits could not have been realized without the ABCC’s assistance (World Bank 2013).

Most enterprises received assistance in upgrading processing technology and installing modern accounting systems, as well as marketing consultation (World Bank 2013). Enterprises found marketing consultation to be

14 The survey covered 13 enterprises supported by ABCC, 83 ABCC-trained cooperatives, and five ABCC local consultants. 77 percent of enterprise respondents indicated their satisfaction with the project. One of the implementation issues was the relative disparity of knowledge among the ABCC consultants. This was a minor issue, but it did cause a few of the beneficiary SMEs to rate the consultant services as less than satisfactory. 92.8 percent of cooperatives rated the quality of ABCC training as “excellent” or “good.”

Source: WB, 2013

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BOX 3: AGROPLAST TECHNICAL ASSISTANCE PACKAGE AND RESULTS

particularly useful, followed by financial management training.15 Marketing consultation included new product development aligned with market demand; product rebranding; market linkages; attendance at various trade fairs; and product quality improvements. The ABCC team worked closely with processors, traders, lead firms, farmer groups, and others to promote exports of Kyrgyz agricultural products. Project consultants were able to link several SMEs to new lead firms, largely in export markets. For example, ABCC supported the introduction of products to supermarkets in Bishkek City, which led to increased sales and profits for the companies involved (World Bank 2013). During the course of the project, ABCC facilitated 142 contracts for 55,000 tons of produce valued at $17.5 million, of which 89 percent was exported between 2006 and 2012, compared with just 12 contracts for $101,000 in 2006 (World Bank 2013).

Quite a few of the beneficiary firms took advantage of the project’s sponsorship of attendance at trade exhibitions, including the Canton Trade Fair and similar fairs in Moscow, France, and elsewhere. The benefits of trade fair attendance, according to those who took part, included (1) meeting and gaining new ideas from similar SME agro-processors from around the world, (2) identifying and sourcing new technology and equipment, and (3) meeting and occasionally linking with lead firms (World Bank 2013). For example, ABCC sponsored the attendance of Mr. Akhtiam, owner of Oskolic Company, at the Saint Petersburg Trade Fair, which resulted in a contract from a Russian buyer for 20 tons of compote daily during the processing season, as well as another contract for 100 tons of dried fruit. However, a cautionary tale was experienced by one ABCC firm who made a contract with an international buyer at a trade fair and was unable to deliver sufficient quantity.

In addition to marketing consultation,16 quality improvements and processing efficiency became important areas for capacity building. Several of the participating agro-processors were able to procure new and more efficient equipment through the efforts of technology consultants. Others were able to improve

15 The project installed new accounting systems for most of the 42 participating SMEs. The companies were almost uniformly using outdated¸ inefficient accounting methods at the start of the project. Consultants helped install new internal management systems at the participating companies.

16 The market information center was also acknowledged for facilitating business linkages, though specific data directly attributable to the center is not available.

Agroplast Company produces and markets 36 fruit and vegetable-based products. The domestic market absorbs 25 percent of the total output, Kazakhstan another 20 percent, and the remaining 55 percent goes to Russia and Eastern Siberia. Each of these markets is serviced by a longtime agent and broker who handles all of the transaction details, including locating and maintaining relationships with buyers, taking care of necessary paperwork, and managing logistical arrangements, among other essential tasks. The agent takes legal possession of products inside the Kyrgyz Republic and pays Agroplast on a weekly basis. Every week, the agent advises Agroplast on the type and volume of products needed. Agroplast then manufactures the needed products. Prices are negotiated depending on volume and delivery dates.

As Agroplast expanded, ABCC helped Agroplast make additional market contacts at the Moscow trade fair. ABCC’s services to Agroplast included a redesign of the tomato paste processing line to increase capacity and reduce energy cost. The new design increased output from 90 tons per month to 250 tons, lowered production cost by 7 percent, and reduced energy costs by one-third. ABCC also identified suppliers for a new apple juice processing line, and provided assistance in obtaining a loan for the purchase of machinery and equipment. Finally, ABCC helped improve financial management processes and sponsored Agroplast’s attendance at several trade exhibits, which enabled the company to meet new lead firms.

Agroplast’s director and owner, Abdyvaitov Berdigul, said that while he has a technical background and 38 years of experience in food processing, he had been unable to find a simple solution to his processing line problem that equaled the proposal by ABCC, although he had tried for several years.

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the performance of their processing lines based on the use of consultant-prepared flow charts and other technical advice. In some cases, the ABCC consultants actually designed new factories. Specialized consulting assistance in obtaining ISO 2200 and ISO 9001 certification was another service provided to several of the ABCC agro-processor clients. Other illustrative operational improvements included better input and output quality; improved product designs; food safety and production processes (Case Study Interviews 2016); and operational efficiencies attributed to improved accounting software and internal management systems.

Most companies and consultants interviewed for this case study suggested that the ABCC technical assistance packages and marketing consultations were pivotal to enterprise profitability, and positive returns continue to be generated on investments made in response to the suggestions of ABCC consultants. Of the 42 companies assisted by ABCC, five have faced significant financial troubles after the project ended. Three companies are no longer operating; two companies restructured their operations to produce something other than what they had produced during

• 142 new sales contracts facilitated (value of $17.5 million) to mostly export markets

• 67 new types of products introduced

• 10% reduction in defect rejects (volume) from retailers through quality improvements

• 30 product label redesigns which increased the recognizability of company products and subsequent sales

• Sales increases of $220,000 to 18 export markets in Kazakhstan and Russia, of which about half were sales of new products introduced with ABCC support.

Source: WB, 2013

BOX 4: RESULTS FROM ABCC MARKETING CONSULTATION (2006-2012)

the life of the project; and one company is struggling financially. Two of these troubled companies had difficulty sourcing raw materials of sufficient quality, which was echoed during the World Bank completion report mission in 2013. Lack of raw material may have been the source of the problem for the company who was unable to meet the contract terms for the international buyer.

The last two years of the project were devoted to the establishment of a Food Technology Training Center, the first of its kind in Kyrgyz.17 The creation of this facility was justified as part of the Public Sector Investment Sub-Component of the project in response to ABCC client complaints of difficulty finding qualified and technically competent personnel, particularly for technical and lab positions (World Bank 2013). The center, built from the ground up with project funding, is attached to the Kyrgyz State Technical University. In addition to training students, the center conducts workshops for agro-processor employees for a fee. In the future, the center could become a valuable industry asset. Since the project ended, however, the operations of the center have been seriously underfunded, with the sole source of income being commercial sales of baked goods produced by training center students. The center also lacks needed equipment for the fruit and vegetable laboratory and has difficulty financing maintenance requirements for the existing equipment (Kojegulova 2016).

Another important legacy of the ABMP is the cadre of well-trained and experienced consultants remaining in the Kyrgyz Republic. Pairing foreign consultants with local consultants and explicitly promoting local capacity through a formalized and on-the-job training program created a consulting force that not only effectively serviced the ABCC clients, but also expanded the number of qualified agro-processing professionals in the country. Upon project completion, the ABCC was converted to a service organization for implementation of additional donor projects. Its trade promotion function was dissolved. This decision was taken because the ABCC was perceived as competing with private consulting firms which had emerged during the life of the project (World Bank 2013). The ABCC experience enabled the local consultants to significantly improve their technical capabilities, resulting in their gaining additional non-project clients and allowing them to increase their professional compensation levels, including their project

17 Project closure was extended two times to ensure completion of the center.

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remuneration through competency evaluations (Case Study Interviews 2016). Subsequently, some ABCC consultants moved into management positions for food processing companies. Others continue to act as independent advisory to the industry. Regardless of their role, their intensive training and experience foster knowledge spillovers throughout the Kyrgyz agro-processing industry.

Business Linkages Lessons LearnedThe following lessons learned pertain to the experience of the ABMP and its implementing entity, the Agribusiness Competitiveness Center (ABCC). Lead firms played a small but important role in the project, limited to purchasing processed goods from agro-processing firms. Project activities focused on strengthening SME capacity by tailoring TA packages based on enterprise need and facilitating market linkages. Hence, the project is most closely characterized as a “bottom-up” or SME-focused public initiative, though it also has elements of an industry-wide initiative with the construction of the Food Technology Training Center.

Lesson 1: Flexible implementation structures help to ensure responsive, demand-driven TAThe design of ABCC’s organizational structure proved to be flexible and responsive to external events as well as market changes. The public-private composition of the supervisory board encouraged coordination, alignment with market dynamics, and accountability for ABCC results. ABCC staffing and procurement vehicles assigned qualified consultants to clients based on customized scopes of work aligned with detailed action plans. The economy and needs of agro-processing SMEs changed over the life of the seven-year project. Supply and demand changed every two to three years, and the project made adjustments to try and stay ahead of these changes (Broka 2016). The ABMP divided the project into smaller implementation periods that built in milestone markers for taking stock of project effectiveness and making decisions that would adjust components accordingly and in response to market changes.

Lesson 2: Careful selection of SMEs contributes to successful results ABCC adopted a three-step process for selecting agro-processing firms to receive project services. First, a large number of potential clients were sent a questionnaire to determine interest. Next, a quick survey was issued to questionnaire respondents to evaluate which ones showed the most potential for effectively utilizing the ABCC technical assistance packages to enhance their growth and profit prospects. The two main criteria were 1) whether the firm had the capacity to improve and grow as a result of the assistance provided, and 2) whether the owner and management were willing to expend the effort required to take full advantage of the opportunity. Companies were ranked and selected accordingly. Finally, enterprises were required to contribute to the cost of their respective TA packages, ranging from 3 to 10 percent. Cost-share requirements ensured commitment from SMEs in pursuing the recommended changes in the spirit of partnership, but also demonstrated financial capacity to implement changes.

Lesson 3: Design technical assistance packages that are comprehensive, based on client needsABCC focused on the clients’ needs, rather than offering potential clients a preconceived menu of services from which to choose. Services were customized based on client need evaluated through a diagnostic process. Once the nature of the problems was agreed upon and priorities established, the ABCC consultants worked with the clients to design a technical assistance package and work plan accordingly. Furthermore, ABCC offered complete solution packages to address client needs. For example, when ABCC was asked to assist a client to replace an obsolete piece of processing equipment, the package of assistance included the following complete list of tasks: identify the supplier with the least costly equipment that still meets the relevant specifications; help develop a business plan and application for credit to pay for purchase; design flow charts and plan the processing line layout; supervise the installation; provide advice regarding new product specifications; and train client personnel in the use of the equipment. Tailoring services to the client need was an important contributor to successful results. However, failure to factor in complete solution packages can render the assistance ineffective.

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Lesson 4: Building local capacity leaves a sustainable legacy in knowledge spillovers The carefully planned and executed development objective of building the capacity of local agribusiness consultants generated sustainable results housed in the consultants themselves. The intensive training program administered by the international consulting firm CA 17, as well as on-the-job experience of pairing local consultants with foreign experts, created local experience that would not have existed otherwise. The ABCC consultants have since either continued to be independent consultants or taken management positions in agro-processing firms. Their skills and the improvements they pursue in local firms will foster knowledge spillovers throughout the Kyrgyz agro-processing industry.

Lesson 5: Consider the needs of the private sector when planning for sustainability of training facilitiesAlthough the creation of the country’s first Food Technology Training Center had good intentions with the goal of improving workforce skillsets and encouraging innovation for the local agro-processing industry, the center is underutilized, underfunded, and faces challenges of sustainability. After the project ended, the center pivoted its efforts inward toward becoming a training center for students, rather than servicing the private sector. Local agribusinesses are not using the center for training staff. Instead, businesses are training staff on specialized equipment and processes in their own processing facilities. Workforce skills could be improved over the medium and long-term through graduates of the university, but no studies on this exist. Considerations for dedicating public funds toward building new facilities may include close attention to how the facility will support financial independence or service the broader needs of industry, and whether there is a need to earmark public funds for future support of the facility.

Resources Berdigul, Abdyvaietov. Interview with director and

owner of Agroplast conducted in April 2016.

Broka, Sandra. Telephone interview on March 31, 2016.

Broka, Sandra and Talaibek Koshmatov. 2011. “Overcoming Skepticism about Technical Assistance Projects: The Story of the Agribusiness Competitiveness Center in the Kyrgyz Republic.” Smart Lessons series published by the World Bank.

CA 17. 2009. “The Kyrgyz Republic Agribusiness and Marketing Project Technical Assistance to 20 Agro-Processing Enterprises Final Report.”

Kojegulova, Daria. Interview with director of Food Processing Technology Center conducted on April 18, 2016.

Food and Agriculture Organization (FAO). 2011. “Eastern Europe and Central Asia Agro-Industry Development Country Brief, Kyrgyz Republic.”

Ministry of Agriculture, Government of the Kyrgyz

Republic. 2016. Registered agro-enterprise data.

World Bank. 2004. “Project Appraisal Document on a Proposed Credit in the Amount of SDR 5.5 million (US $8.1 Million Equivalent) to the Kyrgyz Republic for an Agribusiness and Marketing Project.”

World Bank. 2013. “Implementation Completion and Results Report (IDA-40150 T

F-53554) on a Credit in the Amount of SDR 5.5 Million (US$8.1 Million Equivalent) and a Grant from the Japan Policy and Human Resources Development Fund (PHRD) in the Amount of US $ 4.75 Million to the Kyrgyz Republic for an Agribusiness and Marketing Project.”

World Bank. 2016. “Implementation Completion Report (ICR) Review - Agribusiness & Marketing Project.”

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Annex I. ABCC Client Companies

No. Company Output ABCC Services Markets (%) Evaluation of the Project

1 Dessert OJSC

Canned cucumbers;

Canned squash;

Canned salad;

Canned tomatoes;

Tomato juice;

Apple juice;

Apricot juice.

Marketing;

Processing technology;

Accounting

Kyrgyzstan – 85 %

Kazakhstan – 15 %

Development of new production: reconstituted fruit juice in order to extend the processing season, additional equipment for juice have been purchased.

Implementation of 1C accounting software, which reduced the number of accounting personnel.

2 Agroplast

Tomato paste

Canned vegetables salad

Pickled vegetables

Peach compote

Cherry compote

Apricot compote

Fig jam

Apricot jam

Quince jam

Peach jam

Grape juice

Tomato juice

Apple and grape juice

Apple juice

Marketing;


Accounting

Development of business plan for demanding loan for purchasing apple juice production in bag in box.

Kyrgyzstan – 25 %

Kazakhstan – 20 %

Russia, Eastern Siberia – 55 %

New products: raspberry jam, update of tomato paste processing line.

Apple juice in bag in box processing line purchased.

14


3 OSKO LLC

Compote beverages;

Bio-kvass (mildly alcoholic drink made from fermented rye bread, yeast or berries)

Dried berries:

Strawberry;

Currant;

Raspberry;

Sea buckthorn;

Briar;

Hawthorn;

Blackberry;

Dried fruits:

Apples;

Apricots;

Prunes;

Pears;

Quinces;

Pumpkins;

Melons.

Marketing


Accounting

Kyrgyzstan – 10 %

Kazakhstan – 30 %

Russia – 60 %

Due to consultant support, the sales of compotes increased. New labelling has been developed, promotion activities have taken place, and additional staff for promotion of the product have been engaged.

Upon participation at a trade fair, a contract in Saint Petersburg signed off, with 20 tons of compote being supplied on daily basis. Akhtiam has confirmed this by phone.

A contract for supply of 100 tons of dried fruits to Russia signed off upon participation in trade fair.

At the meeting, the director evaluated the work of the consultants as negative.

4 Ak-Bata Bottled potable water (18 l.) Quality standards Kyrgyzstan – 100 % ISO 9001 certificate obtained.

5 Shoro CJSC

National beverages;

Mineral water;

Spring water;

National snacks

Quality and Safety standards

Trainings to staff and development of FSMS documents. As a result, the company obtained ISO 22000 certificate in three months upon the project’s completion.

6 PE Bayogliev Semi-finished products for producing canned capers


Accounting

Turkey 100%

Events of 2010 in Osh (internal conflict) inhibited installation of full processing line (canned capers). However, a pilot batch of products was processed.

http://www.multitran.ru/c/m.exe?t=6479761_1_2&s1=%EA%E2%E0%F1




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7 Oshnan (Orzhemil) Dairy products

Marketing;


Accounting

N/A

New products: kefir, yogurt, cream, and sour cream.

Rebranding, with new brand Orzhemil still being used.

8 Oregon LLC Fruit juice in glass jars

Marketing;

Processing technology

South Korea -10%

Kyrgyzstan -90%

Company was not working for two years after the project’s completion, as the director took a loan and used it for personal purposes. Now the loan is paid off and the company has been operating for two years.

Juices are being commercialized on a local market; supplies to South Korea are not restored.

9 Jelden-Ata LLC Concentrated fruits puree in aseptic bags


Accounting and financial management

Kyrgyzstan – 100 %

Commissioning of new processing line of concentrated fruits puree and aseptic processing.

10 Shumkar Egg producing Marketing Kyrgyzstan – 100 % The Company is no longer in operation.

11 Ak-Jalga

Dairy products:

-Cheese

-Butter

-Fermented milk products


Accounting and financial management

Kyrgyzstan – 45

Kazakhstan -55%

Operating successfully. FSMS ISO 22000 is implemented and certified.

12 PE Samigulina Honey and honey productsProcessing technology; Primary accounting

Kazakhstan – 90%

United States – 20 tons (single supply)

United Arab Emirates – 10%

New products: wild berries with honey. Successfully operating.

New line for production of wax was commissioned. The number of beekeepers increased up to 520 people. Also producing a new product: dried fruits.

13 PE Chingiz Dairy products: condensed milk


Accounting

Kyrgyzstan – 100 %

Improvement of processing technology.

Company is not producing condensed milk due to lack of raw milk. The production reoriented to producing beer.


14 Ilfat LLC Jams

Marketing;


Accounting

Kyrgyzstan – 80 %

Kazakhstan 20 %

Introduced a new product, but the product was not commercialized in Kazakhstan, and it took a long time to sell it in Kyrgyz market.

15 Uuz ak LLC Dairy products


Accounting

Kyrgyzstan – 100 %Commissioning of a new product: condensed milk. Implementation of AC accounting software.

16 PE Baimyrzaev

Dried prunes with bones

Dried prunes without bones

Dried apples

Compote

Dried hawthorn

Dried briar

Dried sea buckthorn

Marketing;


Kyrgyzstan – 20 %

Russia – 30%

Kazakhstan – 50%

Improvement of processing technology.

New markets: confectionary in Moscow.

17 Kyrgyzstan OJSC

Marketing;


Accounting

18 A.N.Mas.To LLC Tomato pasteMarketing;

Accounting

Russia, Eastern Siberia – 15 %

Factory was not operating due to lack of raw materials, as the capacity is 250 tons per day.

Today, the company has relocated to Talas rayon and commissioned. However, it still suffers from lack of raw materials.

19 Lesnoy Product LLC

Walnut jam

Forest raspberry jam

Raspberry jam

Blackberry jam

Briar jam

Barberry jam

Sea buckthorn jam

Hawthorn jam

Black currant jam

Blackberry jam

Walnuts in honey


Kyrgyzstan – 50 %

Kazakhstan – 35 %

Russia – 15 %

Improvement of quality.


Almonds in honey

Peanuts in honey

Apricot kernels in honey

Sunflower seeds in honey

Walnut oil

Peanut oil

Sesame oil

Black cumin oil

Mustard oil

Honey

20 EUM AOZTApple juice;

Canned cucumbers


Marketing;

Accounting

Kyrgyzstan – 100 %New juice processing line installed, the company is working under Client’s brand.

21 Kelechek LLC

Tomato paste

Canned cucumbers


Jam

Compote

Apple juice

Tomato juice

Grape juice

Peach juice

Owns more than 10 processing companies, five huge commercial companies.

Output: mineral and potable water, fruit juices, milk powder, confectionery.

Equity capital: KGS 77,889,890


Marketing;

Business plan development

Kyrgyzstan – 15 %

Russia, Western Siberia – 80 %

Development of business plan for obtaining a loan of $4.5 million for producing:

-Non-alcohol beverages such as lemonade, juice-containing drinks

-Alcohol beverages (light and dark beer)

Capacity: 9,000 liters per hour

Turnover: $25,772,381

Loan was not received, shares of SHORO purchased.

22 Baerkos LLCCanned vegetables;

Juices


Marketing

Kyrgyzstan Company is not operating


23 Elena Peasant Farm

Canned vegetables: cucumbers, tomatoes and mix.


Marketing

Kyrgyz Republic Operating

24

Fruits and Vegetables Processing Plant Osh LLC



Marketing


25 Ravshanbek Cooperative



Marketing


26 Ak-nan OJSCCanned vegetables: cucumbers, tomatoes and mix.


Marketing


27PE

Egemberdieva



Marketing


28 Doma-Ata LLC Sunflower oil


Marketing;

Financial management;

Implementation of 1C accounting software

Kyrgyz Republic Commercialization through tenders

29 PE Primova Dried fruits and berries


Marketing

Kazakhstan 60%

Kyrgyz Republic 40%

Operating successfully

30 Ozgon Sut Dairy products: milk powder


Accounting

Kyrgyzstan – 100 % Not operating

31 SPPK Agroelita

Dried fruits;

Dried vegetables;

Dried mixture, spices;

Apple flour

Kyrgyzstan – 20 %

Kazakhstan – 20 %

Russia, Western Siberia – 30 %

Turkey – 30 %

Operating, the company plans to build up trade and logistics center

32

PE

Rakhman-berdiev Mamirzhan

Canned cucumbers;

Canned tomatoes;



Marketing;

Accounting

Kyrgyz Republic – 100% Operating successfully

33 Arbet and Co LLC Grape juices


Marketing;

Accounting

Kyrgyz Republic – 100 % Processing technology improved

34

PE

Kudaybergeno-va R.

Walnuts jam;

Canned cucumbers;

Peach compote


Marketing

Kyrgyzstan – 100 % Processing technology improved and new brand developed


35 Zholoev LLC (now Emilia) Dairy products Processing

technology Kazakhstan - 100%

Operating successfully, implementing safety standards, new production facility built, new technological equipment purchased.

36 Talas sut OJSC Dairy products Processing technology

Commercializes powder milk to an intermediary, which exports to Kazakhstan.

Butter, cream, and fermented milk products are being commercialized on a local market.

At the project’s implementation period, it was the only factory producing milk powder.

Powder milk production line was updated with cyclones replacement. First commercial offer was received for €300,000. Upon discussions with consultant on processing technology, a commercial offer was obtained for $136,000.

New cyclone and heat pump were purchased. Old heat pump was on fuel oil. There were difficulties with the purchase of fuel oil and it has to be preheated, as fuel oil becomes viscous at low temperatures, making it difficult to pump. The company was also paying huge amounts for emissions. New heat pump is operating on diesel, saving for seven months of KGS 7 million. (Exchange rate 1 USD = KGS 50).

Successfully operating.

37 Arashan Dairy products


Accounting

Kyrgyz Republic – 50%

Kazakhstan – 50%

Implementation of 1C accounting software and improvement of processing technology.

38 Ozon Ata LLC Dairy products


Marketing


Kazakhstan – 50%

Development of new brand and improvement of processing technology.

39 Ezhigey LLC Dairy products: cheese, butter.


Marketing


Kazakhstan – 50%

Development of new brand and improvement of processing technology.

40 Saamal LLC Production of bread and sandwiches

Mayonnaise processing technology; Marketing; Quality standards

Kyrgyzstan – 100 % Company was supplying to Ganci U.S. Airbase..

41 Rich Stem LLCTomato paste

Canned cucumbers


Marketing;

Accounting


Kazakhstan – 10%

New markets in Kazakhstan. The company signed off a contract for supply of 600 tons of tomato paste, but the company was not able to meet the obligations, therefore had to pay penalties. The company was restructured. Now the company is producing ketchup.

42 SEM Company

Mayonnaise

Ketchup

Mustard

Vinegar

Lemonade

Mineral water



Successfully operating, the company was a part of the Project for a short period.

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