Microsoft word - psom project overview 2005-ii.doc

New Projects Second Tender 2005
Programme for Cooperation with Emerging Markets
December 16th, 2005 - PSOM_OS
Table of contents

1
Mozambique . 22 11.1 PSOM05/MZ/25. 22 11.2 PSOM05/MZ/26. 23 The Philippines . 26 14.1 PSOM05/PH/21. 26 Surinam . 29 17.1 PSOM05/SR/21. 29 17.2 PSOM05/SR/23. 30 17.3 PSOM05/SR/24. 31 Thailand. 32 18.1 PSOM05/TH/21 . 32 18.2 PSOM05/TH/23 . 33 Uganda . 34 19.1 PSOM05/UG/21 . 34 19.2 PSOM05/UG/22 . 35 19.3 PSOM05/UG/23 . 36 Vietnam . 37 20.1 PSOM05/VN/21. 37 20.2 PSOM05/VN/23. 38 Introduction

The EVD is proud to present an overview of all the new projects for the second tender 2005.
In total 35 new projects were contracted. This is more than fifty percent of all the proposals that
the EVD received from companies (67).
The projects are part of the Programme for Cooperation in Emerging Markets (PSOM) and are
financed by the Ministry of Foreign Affairs, Development Cooperation (OS). PSOM is a world
wide programme and the new projects will be implemented in Asia (17), Africa (12), Latin
America (5) and Eastern Europe (1).
The PSOM programme is in principal open for all sectors. But in practice most of the projects
are focused on agriculture. However, for this tender almost 40% of the projects are located in
the sector industry and manufacturing. Still, the majority of the projects are in agriculture and
agro-processing (approximately 55%). For transport and logistics two projects are contracted
and for tourism one project.
We wish all the companies involved success with the implementation of their projects!
PSOM05/AL/21
Milk collection, transport and processing in Albania
Project budget: EUR 1,383,726
Project description:
Applicant La Palma Holland B.V. is a Dutch trader in food and pharmacy ingredients, with
emphasis on dairy related raw materials. Recipient AGBE Sh.p.k. is a producer of milk, cheese,
butter and yoghurt located in Gjirokaster, in the south of Albania. Together with Luku Sh.p.k., a
trader of dairy products in Albania, they want to establish a Joint Venture called Albanian
Netherlands Dairy Processing Group. The mission of this Joint Venture is to improve quality in
all areas of the milk processing in the Gjirokaster region. To realise this mission, they will
establish a dairy processing factory that meets the latest EU standards. And they will improve
the quality of milk collection and transportation from the local farmers to the factory.
AGBE Sh.p.k. has been established in 1995. Operating in a very old and small building, under
unhygienic circumstances, and using poor and outdated facilities and equipment, the quality of
the end products is surprisingly enough relatively good. It is nevertheless obvious that a large
investment in a new building with adequate utilities and proper equipment, as well as increased
know-how on how to run a first-rate dairy plant is needed to survive as a company. The market
analysis and the cash flow analysis underline the rationale of such an investment. About 18% of
the current Albanian consumer needs for processed dairy products such as butter, cheese and
yoghurt is provided by imported products. This includes some 1,300 tons of cheese. There is a
notable quality difference between the imported products and those produced locally. A local
producer that can meet these higher quality standards has a good chance to substitute these
imports, as the local production costs will be lower. It is this market opportunity that the Joint
Venture aims at with the proposed investment.
The participation of Luku Sh.p.k. is important in two aspects. They will provide the largest share
of the required capital to finance the partners' own contribution to this project. Secondly, they
have an important strategic interest. Currently Luku sells some 400 tons of white cheese and
200 tons of yellow cheese per year. This covers some 70-80% of the market for cheeses from
goats- and sheep milk in Albania. Of these total annual sales some 70 tons of white and 50 tons
of yellow cheese comes from AGBE Sh.p.k. in Gjirokaster. Other important suppliers of these
kinds of cheeses from Southern Albania are two factories in Saranda and one in Tepelene.
These cheese producers are being organised by Luku to sell under one brand name, which
includes investment in packaging of these cheeses. The proposed PSOM project is to become a
pilot and example of modern style and hygienic way of milk collection and dairy processing, with
the AGBE cheeses to reach export quality and to become the frontrunner for the new brand.
Bangladesh
PSOM05/BD/21
Fabric dye house for the garments industry
Project budget: EUR 825,000
Project Description:
The Dutch applicant Light Life B.V. (6 employees) is part of the Starco Group and an importer of
garments, especially T-shirts, from Bangladesh. Currently, Light Life imports approximately 3.5
million T-shirts per year.
The Bangladeshi partner Classic International Pvt Ltd. (60 employees) is a company that
exports garments from Bangladesh. The local project partner Body Fashion Pvt. Ltd. produces
garments and has a production factory just outside Dhaka. Classic International represents
Light Life's interest in Bangladesh and is responsible for quality control and quality assurance of
all T-shirts which are exported to Light Life B.V.
Light Life and the major shareholders of Classic International and Body Fashion will form a Joint
Venture called International Classic Composite Limited. The Joint Venture partners will set up a
dye house, certified according to the Oko-tex 100 standard. In the dye house a dying machine
with boiler, compressor and laboratory will be installed. A waste water treatment and water
effluent plant will also be constructed. An important part of the project is the training of the 60
new employees and the set up of an administrative system. Once in production the dye house
will be made available to other local producers of garments who will thus be able to meet the
same environmental standards with respect to the dying of fabrics.
Burkina Faso
PSOM05/BF/21
Potatoes in Burkina Faso, new staple - prolonged availability
Project budget: EUR 825,000
Project Description:
The director of The Potato Company B.V. (TPC) has many years of international experience in
the trade of ware and seed potatoes, including in West-Africa. The recipient DFS S.A. is trading
potatoes in Burkina Faso. The relation between the two parties was established 6 years ago
and currently consists of the supply of ware- and seed potatoes from TPC to DFS. Another
partner to the project is Agricultural Production & Handling B.V. (APH), with thorough knowledge
of potato cultivation.
In Burkina Faso potatoes are cultivated by small farmers on small plots with low yields (average
6 T/ha). Potatoes are planted once a year in November, just after the rainy season, and are
available on the market from January till mid-May. Because there are no storage facilities in
Burkina Faso, the remaining months of the year potatoes have to be imported.
The goal of the project is to create an infrastructure enabling to increase the production and
consumption of ware potatoes. This will be achieved through the construction of 4 cooled
storage rooms in Ouagadougou with a total capacity of 1,400 tons, enabling to store potatoes
throughout the summer. Secondly potatoes will be cultivated using new cultivation techniques
on an irrigation scheme of 50 ha. in the Sourou valley, 260 km North-West of Ouagadougou.
Training forms an important part of the project. A total of 300 people will be trained; the
permanent staff will receive training on all aspects of potato cultivation, while field workers will
receive training on the job.
PSOM05/CH/22
Development of the flower seed production in Gansu province, China
Project budget: EUR 1,005,928
Project Description:
The objective of the project is to set up modern flower seed production by establishing a modern
insulated young plant production department able to maintain optimal growing climates during
the year. Modified local Sunny Greenhouses will be constructed with fertigation and enhanced
ventilation installations, which are also available for local farmers to increase their production
skills while being assisted by Haofeng and Kieft experts. Students from the Agricultural
University and the vocational colleges will receive training and opportunities for practical
internships. As project partners are convinced significant yield increases can be achieved when
proper production techniques are applied, emphasis will be on improving seed production
practices. The seed processing department will be equipped with new seed harvesting, cleaning
and processing lines developed by Kieft, enabling Haofeng to deliver high quality seed.
PSOM05/CH/23
The introduction of high-tech production of internationally
competitive Lilium Flower Bulbs

Project budget: EUR 1,367,959
Project Description:
The annual consumption of Lily flowers in China has grown from almost zero in 1989 to 200
million today. Since 2004, the market share of Lily bulbs of Dutch origin sold in China has
reduced considerably, because the price of Dutch bulbs has increased recently. As a result,
Chinese growers have been forced to turn to alternative suppliers who offer low quality Lily
bulbs for a lower price, or growers reuse bulbs. The Chinese Lily cut flower growers cannot
meet export quality standards by using inferior quality bulbs. Moreover, customer satisfaction on
the domestic market is reduced as well, as growers start producing more and more inferior
quality flowers infested with diseases that are visible on the end product.
As a solution, the project partners will introduce the production of high quality lily bulbs to China.
This includes the scaling of mother bulbs, treatment of scales, cultivation of bulb material and
the production of lily bulbs. Besides training to employees and farmers, training will also be
given to lily flower growers and students.
PSOM05/CH/24
A safe feed for pigs to enhance protein mass
Guilin Lieyuan Grain, Oils and Food Co., Ltd. Project budget: EUR 1,110,403

Project Description:
China is the largest pig producing country in the world, and as a result has a huge pig feed
industry.
However, the industry is characterised by strong competition and low margins.
Nowadays the market demand for leaner and safe pork is increasing. As a result, pig breeders
try to find ways to increase the ratio of protein mass to fat mass in pigs. One way of achieving
this is to provide additives to pig feed. The problem is that often illegal additives that are harmful
to humans are being used such as Clenbuterol and Ractopine. Clenbuterol has been banned by
the Chinese government as it has been associated with acute poisoning of humans. Although
China has a system in place to inspect clenbuterol use in pigs, a number of health scandals
involving clenbuterol have occurred in the past few years. Ractopine use in pig feed is banned
in China, although a group of farmers is presently fighting this ban.
These developments have led to the need for: feed with safe additives resulting in meat with a
lower fat content, a transparent supply chain, and quality assurance systems.
As a solution LC has developed an alternative that is safe for humans: Conjugated Linoleic
Acids (CLA). Feed containing CLA is not yet commercially available in China.
Therefore LC intends to cooperate with Guilin Liyuan and five intermediary companies to set up
a pilot supply chain with specialty CLA based feed to produce safe and lean pork. A production
line to produce specialty CLA based feed will be established and a supply chain to produce safe
and lean pork will be set up. In this chain farmers will receive CLA based feed to raise lean pigs.
In addition these farmers will also be trained in farm management and food safety issues. After
the pigs have matured they will be collected and sold by the five intermediary companies as
safe and lean pork.
PSOM05/CH/25
Localised lily bulb production
Rongcheng Biological Resources Development Co. Ltd. Project budget: EUR 1,281,238
Project Description:
The market for cut flowers, including lilies, is growing rapidly in China. The problem is that bulbs
to grow lilies have to be imported, mostly from Holland, but also from other countries. Recently
bulb prices have increased. Chinese farmers are forced to turn to low quality domestically
produced bulbs and reused bulbs. These result in cheap but low quality flowers. Finally,
production of lilies is based in China on three varieties.
As a solution, the project partners will set up a local production base for high quality lily flower
bulbs. This will be achieved by setting up a bulb production site and a bulb processing site, by
establishing two trial stations, by providing training to farmers, both to lily bulb growers and to
lily flower growers, and by organising a cooperation model between local farmers and the
project partners.
PSOM05/EG/21
Development of a high quality, organic export chain for Egyptian
herbs

Project budget: EUR 1,243,877
Project Description:
Egypt is a recognised producer of herbs for the European market. The export value of Egyptian
herbs is around EUR 34,400,000 per year of which EUR 7,200,000 is organic. For the
development of a high quality, organic chain for Egyptian herbs, applicant Organic Flavour
Company (OFC) will establish a Joint Venture with SEKEM. SEKEM is a processing company
for all kinds of herbs & spices from bio-dynamically cultivated plants. OFC started importing
herbs from SEKEM 20 years ago and now a days 15% of their imports come from SEKEM. To
date there are no high grade facilities for purification and disinfection of organic herbs in Egypt
which creates a problem: up to 20% of the exported material is infected, leading to rejection or
additional costs. At the same time price and quality of herbs are under pressure. The project is
to improve the supply and export chain for Fair Trade organic herbs from Egypt to ensure a
pure, uncontaminated product, with europgap certification to allow for sales through European
supermarkets. In order to ensure quality of the product the project will work with out growers
and SEKEM's own farms to ensure optimal agronomic practises, harvest time, drying practices
and post harvest handling including investments in improved drying facilities near the farmers
fields. Further, the project will establish a purification plant that can ensure the eradication of
contaminants from the organic crop without compromising their organic status and meeting
normal traceability and safety standards for food products. The processing facilities will be
based at the SEKEM premises near Belbeis and the farmers involved are located in numerous
locations between Belbeis and Fayoum in Upper Egypt.
PSOM05/GH/21
Proposal to develop Handling, Storage and Repair facilities for Empty
Containers in the Port of Tema, Ghana - West Africa

Reefer Technology and Industrial Refrigeration Ltd. Project budget: EUR 800,000
Project Description:
Morcon B.V. is a container service enterprise, based in the port of Rotterdam, which provides a
range of services including inspection, repair, storage and transhipment, sales and rental of dry-
box and reefer containers. The sole shareholder of Morcon B.V. is Matrans Holding B.V., a
group of port-related services companies in Rotterdam. The partner of the project in Ghana is
the company Reefer Technology and Industrial Refrigeration Ltd (RTIR), owned by its Ghanaian
director. RTIR is specialised in container handling, maintenance and repairs at Tema and
Takoradi harbours in Ghana; among its customers are main shipping lines like Maersk and P&O
Nedlloyd.
Both Morcon B.V. and RTIR are authorised dealers of Thermo King and Carrier-Transicold,
manufacturers of reefer machineries and spare parts. The employees of as well Morcon as
RTIR are certified by the international Institute of Container Lessors (IICL). They met each other
at the reefer courses of the IICL and established a relationship since 2001, exchanging
knowledge and experiences.
In 2002 the Matrans Holding implemented a PESP feasibility study for the Ghana Ports and
Harbour Authority (GPHA) to analyse the possibilities of development and improvement of the
container handling services at the Port of Tema. One of the identified bottlenecks at Tema
harbour is the congestion of the Port with empty containers, resulting in great loss of efficiency
of the stevedoring activities of all shipping lines. At the same time, the cargo throughput at
Tema shows a yearly exponential increase, positively influenced by the stable situation of
Ghana compared with nearby ports in the West-African region, notably Ivory Coast. Currently, a
high percentage of damaged containers are left behind in the harbour or transported empty to
other continents. Hence, the aim of this project is to develop a facility for the handling, storage
and repair of empty reefer and dry-box containers immediately outside the premises of the Port
Authority, for which a clear demand exists among the large shipping lines and stevedoring
companies.
PSOM05/GH/23
The setting-up of a cut-foliage farm in Ghana
Industrial & Technical Supply Centre Company Limited Project budget: EUR 800,000
Project Description:
MOR Import/Export B.V. in The Netherlands and Industrial & Technical Supply Centre (ITSC) in
Ghana will start the Ghanaian-Dutch production company Gold Coast Foliage (GCF). The aim
of the consortium is to set up a Joint Venture company that is capable of delivering year round
cut-foliage, according to the needs of the market regarding quantity and quality and at a
competitive price level. The Joint Venture will have control over the entire process from
production in Ghana by GCF to marketing in The Netherlands through MOR.
Trade in cut-flowers show a yearly increase of 5-7%. Although flower bouquets are made up to
50% out of cut foliage, the production and import of foliage has been relatively steady over the
last years. A problem in the market is the lack of a stable supply of quality cut-foliage. Hence the
rationale to set up a company which can control the process from production in Ghana up to the
client, taking advantage of the suitable climate in Ghana and its attractive airfreight charges in
comparison to other production countries.
Initial production will be in the coastal zone of Ghana near the town Mankessim, with a
projected size of 20 hectares, to be extended in the 3 years after the project up to 200 hectares.
Species will be selected based on the initial growth trials and the demand of the clients. During
the project nearly 100 people will be employed on the farm. In the second year a start will be
made with 50 out growers at different locations. At the end of year 2, EurepGap certification will
have been accomplished.
PSOM05/GH/24
Cut foliage production by out growers
Project budget: EUR 1,499,640
Project Description:
The applicant of the project is MDK Plants & Decorations (MDK) and the recipient Green Grass
& Garden Ltd (GG&G). Both parties will establish a Joint Venture called Ghana Greens (MDK
70%, GG&G 30%) with the goal to produce high quality ornamental leaves for export to Europe.
MDK is a floricultural company specialised in the breeding and propagation of high quality cut
(ornamental) foliage.
Green Grass & Garden Ltd. started in 1994 with the cultivation of instant turf grass for gardens
and later on diversified its production to orchids and anthurium species, both in greenhouses
and outdoors.
Cut foliage, especially ornamental tropical leaves, are increasingly used in exclusive flower
bouquets as a replacement of ordinary fillers. Recent trends are to compose bouquets of
ornamental leaves, with no or just one or two flowers. MDK produces cut foliage for these
applications. Production costs in The Netherlands make it difficult for MDK to expand its foliage
production while Ghana has the ideal conditions and environment to produce foliage. The
country also has direct and short overnight airfreight possibilities and the Government is also
currently improving cold storage, handling and custom clearance facilities at the airport.
The project will invest in a fully equipped greenhouse of 2 ha, a cooled pack- and storage
house, office and workers facilities, back up power supply, and a truck for cooled transport to
the airport. Also an out growers programme with at least 15 out growers will be developed for
Heliconia, an ornamental flower.
Training will be an important component of the project. MDK experts will provide training in plant
breeding, cultivation of parent plants, fertilising and irrigation techniques, harvesting, sorting and
packing of foliage for export.
PSOM05/IN/21
State-of-the-art poly film greenhouse design, manufacturing and
demonstration facility

Project budget: EUR 999,540
Project Description:
Three Dutch companies Croptech (design and sales of greenhouses), PB Techniek (irrigation)
and JB Hydroponics (substrate gutter systems) and the Indian partner, Kanak Agri-tech (design
& manufacturing products for the horticultural and floricultural industry) see a huge potential for
sales of poly-covered greenhouses in India
Considering the size of the country and its population, India has no considerable amount of
crops under controlled environment. The area of more or less professional greenhouses is
estimated to be only 200-250 ha.
Taking into account the promising conditions for production in India (availability of steel and
abundant skilled labour at affordable cost), the partners want to invest in a production location
for poly-covered greenhouses in Parandwadi, District Pune, State Maharashtra. By offering turn
key greenhouses, including technical installations and substrate systems the partners expect to
have a fair chance in India. After the pilot, they will also focus on the export market.
The Dutch partners are already working together in Kenya. The contact between Croptech and
Kanak dates back from the time that Mr. Vermeulen (director Croptech) was working for Rovero.
At present, Kanak supplies horticultural instruments to PB and JB.
Croptech, PB Techniek, JB Hydroponics and Kanak Agri-tech will form a Joint Venture on the
following basis: 46%, 4%, 4% and 46%. The name of the Joint Venture will be Greenspan.
PSOM05/IN/23
New environmental friendly dyeing plant

Recipient:
Project budget: EUR 1,499,000
Project Description:
Both project partners P. Hamers B.V. from Waalwijk, The Netherlands and Orkayam Apparel
Proprietor (further to be named Orkayam) from Tirupur, India have been in the textile business
for many years. P. Hamers B.V. as a wholesaler in textiles and Orkayam as a manufacturer and
exporter of knitted garments. They have been working closely together since 1993. During the
years they have noticed that the dyeing process in India, being an essential part of the textile
production process, is a very environmental unfriendly activity. Once the water that is needed
for the dyeing has been used, it is discharged into the open water. This causes severe water
pollution. Many farmers cannot use their fields anymore, because the polluted water of the
dyeing plants has spoiled their grounds. In addition, the amount of water used by dyeing plants
is enormous.
The solution to this problem however can be found in re-using the water repeatedly. This can be
done by using a reverse osmosis system, which means working with a closed circuit in which
the water is re-used again and again.
The second serious problem is that at present the solid waste is just dumped in the open air,
which again produces awful pollution. The solution to this problem can be found by modern
burning systems.
The partners will set up a Joint Venture on a 50/50 base to build a new dyeing plant making use
of the latest technology. The new dyeing plant will be located in an area that is specially
designated by the Indian government, around 40 km from the Orkayam factory in Tirupur
(‘Manchester of India’).
Indonesia
PSOM05/RI/22
One step ahead! New thermoform packaging solutions for Indonesia
Project budget: EUR 1,495,218
Project Description:
Bosch Sprang from The Netherlands, market leader in thermoform moulding equipment and
technology, together with Kecana Surya Plastic factory (KSP), a producer of plastic packaging
materials, aim to set up a thermoform packaging manufacturing plant in Surabaya. The project
reflects Bosch Sprang's ambition to engage for the first time in the production of packaging
materials, rather than producing moulds which are then used by its customers. Not only will the
new company lead to diversification of activities in a new and growing market, but it will also add
to Bosch Sprang's know-how, which will translate in better product (moulds) and advice to its
clients worldwide. KSP has proven to be able to flexibly respond to changing trends in the
market, and aspires to offer a new range of products to its customers, fully complementary to
the packaging materials they produce at present. Both companies have therefore a strong and
long term strategic interest in the project.
The project will lead to (1) the establishment of a Joint Venture company for the production of
thermoform packaging products (Bosch Sprang 90%; KSP 10%); (2) installation of a basic,
multi-functional production line; (3) staff training in all aspects of thermoform production, both
on-the-job and in The Netherlands; (4) a pilot production, marketing and sales of the first
products: and (5) a bankable business plan for follow-up investments.
The project will be based at the premises of the packaging production plant of KSP in Surabaya.
PSOM05/RI/24
All seasons Raspberry Project Indonesia
Project budget: EUR 1,496,100
Project Description:
The aim of the project is to set up a modern raspberry production facility. The location of the
raspberry production plant is foreseen in the province Cianjur. In the PSOM pilot phase 100,000
punnets will be produced and sold. This capacity is seen as a minimum requirement in order to
guarantee a continuous production of high quality raspberries for the future customers and
consumers. The acreage needed to serve the market in the pilot phase will consist of 2.5 ha,
which will include 2 ha of greenhouse, 0.3 ha of nursery for a revolving system of raspberry
plants and 0.2 ha for support buildings such as packaging facilities, cold storage & pre-cooler,
training facilities, dormitory, storage, parking etc.
PSOM05/RI/26
Lisianthus from breeding to marketing
Project budget: EUR 1,050,200
Project Description:
The project will aim to set-up a production facility to produce state-of-the-art Lisianthus. The
project's approach will be "from flower gene to flower customer". This implies that new varieties
- adapted to the Asian market - will be developed, while production activities will include seed
production, plant nursery, cut flower production, post harvest handling and marketing, involving
contract farmers to boost production volumes. A start will be made with the development of the
new varieties, but of course the definitive results of this will be beyond the scope of the PSOM
project. The project will establish a new facility with a modern, Indonesia-adapted greenhouse
complex creating a basic production capacity combined with a post harvest handling unit. The
facilities will be efficient with special emphasis on cost control and quality assurance.
Mongolia
PSOM05/MN/21
Mongolian Resort, warm welcome on the Mongolian steppes
Project budget: EUR 1,045,236
Project Description:
Because of the extreme land climate, Mongolia experiences very long and cold winters.
Therefore all camps in Terelj National Park have to be closed during the winter period. The
purpose of this project is to create a western style resort in Terelj National Park for the upper
class residents of Ulaanbaatar, which will also be occupied during winter time. This will make
the camp much more profitable. The existing ger camp will be expanded with a western style
resort, with 6 bungalows, a tropical swimming pool, a recreation centre, a restaurant and
conference rooms for the visitors. For incoming tourists, who will mainly visit in the summer, it
offers a comfortable operating base with gers for the more adventurous tourists and bungalows
for the more luxurious ones. For the domestic tourists, who will also travel in winter, the Resort
will offer the comfort of a western resort situated in their own country.
Mozambique
PSOM05/MZ/25
Ferro Africa LDA

Recipient:
Project budget: EUR 821,000
Project Description:
For the production of ingots in Mozambican scrap steel the applicant named Holiday Homes Ltd
from Tanzania will establish a Joint Venture with recipient Ayul Trading Ltd. The Joint Venture
Company will operate under the name of Ferro Africa Limitada in the vicinity of Maputo.
Through a mutual related holding company applicant and recipient have experience in the steel
business as they recently established Abyssinia Integrated Steel Mill operating in Deprezeit,
Ethiopia. Recipient Ayul has more than 8 years of experience in trading i.e. wholesaling,
retailing and distribution of various products including steel bars in Mozambique. It has sales
centres and warehouses in seven out of ten Mozambican provinces. Ayul will provide the project
with a sales and distribution network, local knowledge and market know how. Also, their trucks
will be used to transport the steel up-country. The applicant will provide technical knowledge
and assist in locating prospective buyers for ingots. Apart from the in-house knowledge external
expertise will be hired.
Currently the vast majority of the steel scrap available in Mozambique is exported from all three
main ports to steel producing countries at a rate of EUR 96/ton. Mozambican buyers import
steel bars at a price of EUR 480-520/ton. The idea of this project is to process local scrap into
ingots (semi-manufactured product) which will be exported to India and African countries at
EUR 244/ton. At this stage further processing into final products (such as steel reinforcing bars)
cannot yet be executed in Mozambique, on account of high investment costs. This step is
planned to be finalised within 21 months after the PSOM stage, implying a further investment of
over EUR 1.8 million. This is considered a prerequisite step towards profitability of the company.
Directly from the start the project will add value to the raw material locally in this way improving
the Mozambican trade balance. In the follow-up phase they will replace expensive imports of
final steel products by local production of a range of steel products. Due to shorter delivery
times, possibility of ordering small quantities and longer products (no limitation due to container
size) the partners expect to have an advantage over foreign producers. All steel produced at the
factory will be of international standards (SABS and other ASTM and BSI codes followed by the
construction industry). Eventually the plant will opt for ISO accreditation.
PSOM05/MZ/26
Mossurize Tea Processing Project
Project budget: EUR 823,000
Project Description:
In this project three companies will form a Joint Venture: applicant Enhoek Estates (Zimbabwe),
recipient Guarani (Mozambique) and partner Buzi Tea Company (Zimbabwe). Enhoek Estates
has been a producer of quality green leaf tea for more than 25 years, working with a 150 ha out
grower production scheme in Zimbabwe. Buzi Tea Company, partner in this project, processes
and markets Enhoek's tea. Approximately 90% of their overall annual volume of 650 tons of bulk
made tea of is exported to South Africa and the EU. Recipient Guarani aims to promote the
development of a profitable agro-industrial industry in Mozambique through participation in
value-adding commercialisation projects. They successfully coordinated an international project
aiming to set-up 20 tea grower associations.
The project at hand builds on the results of that. As a logical continuation a tea processing unit
will be built, an out grower scheme will be set up, and commercial linkages will be created.
Enhoek will provide the necessary technical assistance to (further) develop the out grower
scheme and promote value-added production. Buzi Tea Company will be responsible for
training related to hardware, processing and marketing, while Guarani will provide project and
financial management skills and knowledge of the Mozambican agro-industrial systems (out
growers associations).
The Mozambican tea processing industry is small. There are some areas in the northern
Zambezia province producing tea for markets in the Middle East and Pakistan. In the Mossurize
region, located along the Zimbabwean border, currently some 1000 smallholder tea producers
(representing over 400 ha) are active through informal out grower schemes. Large Zimbabwean
tea companies (partially government owned) take advantage of the proximity of Mozambique
(20 km as the crow flies) and cheap labour in the region by providing smallholders limited
assistance and inputs on credit. After harvesting the smallholders carry the green leaf by hand,
crossing the border irregularly and getting paid in Zimbabwean dollars. Due to the long journey
(1 to 5 hours) the tea quality deteriorates and the price paid is low. Through the project at hand,
processing will be done locally instead of in Zimbabwe. Local tea producers to be involved in the
project will receive training, collection service and a better price.
Nicaragua
PSOM05/NI/21
Foliage Post Harvest and Training Centre
Project budget: EUR 1,250,000
Project Description:
Applicant, Cedomex/Adomex, is one of the leading European importers of green foliage. To
ensure a high quality and competitive source for leather ferns, one of their important product
lines, Cedomex is establishing a Joint Venture with the recipient, Helechos de Nicaragua, a
farm that currently produces leather fern between Matagalpa and Jinotega.
The new company will produce and process leather ferns according to state of the art
techniques (dedicated irrigation and fertilisation, biological integrated pest management, fast-
hydro cooling of harvested leaves) and take advantage of the competitive advantages of
Nicaragua, which has climatological conditions similar to Costa Rica (the largest exporter of
ferns), but much lower cost of land and wages.
Neighbouring coffee farmers, who have been suffering from low prices and heavy competition
from Asian producers, will also be encouraged to switch to the much more lucrative fern
production.
The project partners will support these farmers with know how, practical training and facilitate
the supply of plant material/fertiliser/biological pesticides etc. Finally, partners will sign contracts
with these farmers for the purchasing of their foliage that will equally be processed in their post
harvest centre, as the demand for fern far exceeds their own production capacity. Based on
these purchase contracts, NGO's like Oikokredit and ICCO are willing to provide financing to the
farmers, to help them switch over from the current coffee production.
The project will create 25 direct jobs on the farm and 15 in the post harvest centre during the
pilot phase, with another 25 direct jobs expected from the required capacity expansion in the
following 2 years.
PSOM05/PE/21
Establishing an integrated quality chain for asparagus grown on
rehabilitated saline soils

Project budget: EUR 1,241,519
Project Description:
The recipient, Fundo Doña Pancha, has acquired a few hundred hectares of land on the
Peruvian coast, some 300 Km south of Lima. This land had been abandoned for more than 20
years and, through a salinisation process, has become useless for cultivation of crops. Utilising
Dutch know-how and technology for irrigation and leaching, the recipient has developed a
method to recuperate the soil up to a level where it is suitable for the production of asparagus.
Applicant La Flecha is an importer of fresh asparagus from Peru and decided to invest in Doña
Pancha, to assure a reliable and competitive supply of their product. To further enhance the
quality and reduce the cost price, project partners will build a Post Harvest Centre (PHC) on the
premises of the farm, limiting the time lag between harvest and processing to a bare minimum.
This, combined with a new controlled-atmosphere packaging method, will open the possibility
for transporting fresh asparagus from Peru to Europe in containers over sea, resulting in
substantial savings in relation to the currently used airfreight.
The project will create 75 direct jobs on the farm and 10 in the PHC by the end of its
implementation, with another 50 expected direct jobs resulting from the capacity expansion in
the 2 years following the pilot-phase.
Project partners will also train and financially support neighbouring (small) farmers to help them
with the desalinisation of their own land, and sign contracts for the purchasing of their crops that
will equally be processed in the PHC.
The Philippines
PSOM05/PH/21
Production of high quality, hand spun coir yarns for coir mat
production in The Netherlands and market introduction of coir mats in
East-Asia

Project budget: EUR 180,000
Project Description:
The Dutch applicant Rinos B.V. (120 employees) is one of the market leaders in manufacturing
of coconut coir doormats and entry mats for both residential and professional use. Rinos exports
to more than 40 countries, with sales offices in various countries. Rinos intents to diversify its
supply of hand spun coir yarns with yarns from The Philippines. The Dutch consortium partner
Onerco is a newly organised company that has concluded that production of high quality
coconut coir yarns in The Philippines is an interesting market opportunity and determined to
invest in this market. Eventually Rinos will manufacture mats in The Philippines to service the
East-Asian market, thus avoiding high cost of transportation for a bulky product like coir mats.
The local company Juboken Enterprises Inc. (26 permanent and 600 household subcontractors)
is currently producing geo-textiles made of hand spun coir yarns. The local partner Coco
Technologies is marketing these geo-textiles in the Philippines and the region.
The demand, however, is seasonal as geo-textiles are mostly applied in outdoor construction
projects. Juboken and Coco Technologies see possibilities to develop an alternative market for
their hand spun coir yarns by producing high quality coir yarns for the production of coir mats.
The project intents to install a precision spooling machine, 500 manually operated twining
machines and 25 carding machines. The households will have to be trained to be able to
produce the high quality coir yarns, with an average production of 4.5 kg yarns per day. The
total amount of 2,200 kg per day are collected to a central processing area and precision
spooled to produce 220 rolls per day. The rolls will be shipped to The Netherlands weekly in a
40'-container. Twining, carding and spooling machine operators, and quality controllers will have
to be trained. Rinos will also organise seminars for the sales force of Coco Technologies.
PSOM05/SN/21
Ethnic Chic d'Afrique
Project budget: EUR 599,500
Project Description:
In the western world an "Ethnic Chic" lifestyle is developing, uniting elements from different
cultures in e.g. fashion, food and interior decorating. The applicant, Pol's Potten B.V., is
specialised in home accessories and furniture, and the recipient, Wood S.a.r.l., is specialised in
crafting wooden furniture and objects. Together they will form a Joint Venture called "Ethnic
Chic d'Afrique".
This Joint Venture will set up three ateliers to manufacture home accessories and will form a
bridge between traditional production methods in Senegal and the world market by developing
an "Ethnic Chic" collection for large retailers and wholesalers in the European, American and
Japanese market. The first atelier will be situated in the village of Yene where the Laobé live, an
ethnic group specialised in wood carving. The ateliers will be equipped with wood working
machines and tools. The other two ateliers will be franchised. In total 60 production jobs and 10
additional jobs will be created.
Sri Lanka
PSOM05/LK/21
A pilot project to produce new varieties of virus free flowering plants
(Calla Lily tubers) for the European Market by Tissue Culture
Technology

Serendib Horticulture Technologies (Pvt) Ltd Project budget: EUR 664,705
Project Description:
Calla Lily or Zantedeschia is a product that is very much in demand in Europe, USA and the
Far-East, in particular the past 5 years. One of the biggest problems in Calla bulb production is
the purity of the stock. The production commences from micro propagating (propagation through
tissue culture) of shoot tips from tubers. The end result which is a T2 bulb of approximately
4-5cm in diameter is obtained after several cycles in the field. Problem commences if the purity
of the stock is in doubt. Proper selection of the mother stock material (pure lines) and micro
propagation of the stock will eliminate the possibility of contaminating the tuber with Erwinia (a
bacterium). Erwinia results in the highest failure of the product.
In the proposal it is stated that the combination of the technical capabilities of Serendib
Horticulture and the marketing strengths of Campo international, production of quality Calla
tubers is bound to be a successful business in the future.
The results of the proposed project will include piloting production from selected imported
varieties, a long-term business relationship through a Joint Venture, improving income
generation for rural farming families through an out grower scheme for second generation tuber
production at commercial scale, direct employment creation and technology transfer.
PSOM05/SR/21
Vasco-Profiles
Project budget: EUR 917,000
Project Description:
Van der Vossen, chairman of Chris van der Vossen Holding, Mother Company of The Finish
Profiles Group and applicant Finish Profiles Beheer want to expand their production of special
coated steel roof panels and roof-tiles panels to Surinam. Looking for possibilities in the
Caribbean region, in 2000 Van der Vossen came into contact with Vasco Tonch and Ramon
Otmar Tom and established a Joint Venture, Vasco Profiles NV. (Van der Vossen holds a
33,33% share through his Daughter Company Finish Profiles Beheer B.V., Mr. Otmar holds
33,33%, through his company Carimexco, and private person Mr. Tonch holds 33,33%) to
import and sell the products of the Finish Profiles Group.
The coated steel roof-tile is the ideal and more durable roofing material for small storehouses,
private houses and industrial buildings compared to other roofing materials. The coated steel
roof-tiles have a good price-quality ratio and are competitive to other roofing materials. The
material creates no environmental hazards and satisfies all the esthetical demands of
customers.
Now after the successful preceding years of selling the imported products from Finish Profiles
B.V., Vasco-Profiles wants to make the step to further local production of first the coated steel
roof panels and roof-tiles panels and subsequently the production of the complete prefab quality
steel buildings (in The Netherlands produced by Huisman B.V., also a daughter of Van der
Vossen Holding).
The roof panel production lines will be formed by a de-coil car and table, sheet cutting, roll
forming machine and tile pressing machine complete with all electric, hydraulic and control
units. Vasco people will be trained in The Netherlands and on the job by Finish Profiles
personnel. The production hall will be built according the Multibuild Program (Quality Steel
Buildings) and will form a demonstration building. The project will be implemented at the
premises of Vasco Profiles in Paramaribo. The Joint Venture Vasco Profiles will be the recipient,
no new Joint Venture will be founded.
PSOM05/SR/23
PARAMARIBO Container Services
Project budget: EUR 733,400
Project Description:
The development of the transport sector, specifically maritime transport is a top priority of the
Government of Suriname. The transport sector is the focal area for current development
cooperation between Surinam and the European Union. The port of Surinam was built as a
traditional general cargo port. Since the last decades general cargo is being transported more
and more in containers.
NV Havenbeheer Surinam, responsible for the operation and management of the Port of
Paramaribo, will have to develop the container activities in order to meet the present needs and
requirements of the international maritime transport to/from Suriname. These activities include
not only handling, storing and inspection, but also in the repairing and modification of
containers, to enhance its services to the shipping and transport sector in Surinam.
The Port Authority has no experience and expertise in these fields and is therefore looking for a
well-experienced partner for cooperation.
Transmo's managing director became aware of this problem and after various meetings and
discussions with interested partners the company decided to set up a pilot project in close
cooperation with Continental Shipping Agency NV and NV Havenbeheer Surinam. Continental
Shipping Agency is a private stevedoring and shipping company in Paramaribo and a customer
of Transmo. They represent two international shipping companies, Europe West Indies Lines
and Seaboard Marine Ltd.
Transmo's mission is to develop the container services industry by providing services tailored to
the needs of its clients worldwide. Transmo considers the cooperation with Continental Shipping
Agency and N.V. Havenbeheer as a unique business opportunity for expansion. The project is
relevant for development of the container industry in Surinam and contributes to the overall
improvement of the transport sector of Surinam.
The proposed project consists of:
- Inspection of all types of containers (marine, refrigerated container, tank container) and
- Repair activities for all types of containers.
The partners will form a Joint Venture, a special purposes company, named NV Paramaribo
Container Services. The division of shares is: Transmo Container Service 70%, Continental
Shipping Agency 20% and Havenbeheer Suriname 10%.
The project will be implemented in the port of Paramaribo.
PSOM05/SR/24
Production and application of bitumen emulsions and cutbacks for
improving roads in Surinam

Project budget: EUR 690,724
Project Description:
The project proposes to contribute to the durability of Suriname's road network by establishing
the production of bitumen emulsion and cutback in Suriname and introducing innovative
methods to improve paved and unpaved roads, backed up by laboratory facilities. Presently,
Suriname produces bitumen (which is 60% of the raw material required for production of
bitumen emulsion) from its own oil industry. Next to cracking the bitumen by Staatsolie Ma, it is
exported to Barbados for further processing into bitumen emulsion before being re-imported into
Suriname. Apart from the transport and handling expenses, road contractors in Suriname are
forced to import bitumen emulsion in large quantities and order these 3-4 months in advance,
which results in so-called dead stock which, as durability dates expire, reduces the quality
(adhesive strength) considerably.
At present the use of bitumen emulsion in Suriname is limited to prime coats (a protective layer
of bitumen applied on the road foundation before asphalting) and tack coats (an adhesive
coating between asphalt layers). There is a great scope for low cost improvements of existing
paved and unpaved roads using bitumen emulsion and cutback: In-place stabilisation of
unpaved roads; cold-in-place recycling; dust suppression; metalling or surface/treatment.
The project partners therefore believe there is an excellent case for establishing a bitumen
emulsion and cutback plant in Suriname, both for traditional application and for feasible
improvements of the Surinam road network. The initial idea was a partnership comprising
engineering company Aqua, Pavement & Geotechnic Consultancy (AP&G) from The
Netherlands, bitumen producer Staatsolie and roads contractor/asphalt producer Tjongalanga to
form a Joint Venture company. During the tender procedure both Staatsolie and Tjongalanga
withdrew from the project. Staatsolie will get a conflict of interest with one of her clients, a
bitumen emulsion plant in Barbados and the co-owner of Tjongalanga wants to stay focussed
on contracting roads.
The formal financial partners are still very interested and willing to support the project
technically. A new partner, R.H. Construction NV (RHC) has been identified. The connection
between the partners has been made by a permanent in Surinam stationed employee of AP&G.
AP&G Surinam has an office in the same building as RHC.
The Joint Venture will set up and operate a plant to produce bitumen emulsion and cutbacks
according to ASTM (American Society Testing Materials) technical specifications and quality
standards. The production process will meet HSEQ (Health Safety, Environmental, and Quality)
standards. No professional roads lab exists in Suriname, so a specialised laboratory will be
established to check and optimise quality for application in traditional asphalt pavements but
also in innovate applications to stabilise and seal unpaved roads at low cost. Improved and
innovative methods will be engineered, tested and demonstrated using test strips.
The project will be located next to, or on the premises of the Staatsolie refinery at Tout Lui Faut.
Thailand
PSOM05/TH/21
Establishing a production site for manufacturing of tracking- and
tracing devices


Recipient:
Project budget: EUR 692,656
Project Description:
Satworld Holding B.V. (SH) is the applicant and was established in 2003. The core-business of
SH is the development of software solutions for tracking- and tracing devices for the GPS/GSM
market. With a total workforce of 15 people it has a sales volume of about EUR 2 million. The
recipient in Thailand is Upon Mastertech Co. Ltd.(MC) and was set up in 1997. The core-
business of MC is assembling of printed circuit boards (PCB's). They have two major clients,
one in Japan and Texas Instruments in the USA. MC developed rapidly and has now a
workforce of 300 people and a sales volume of EUR 1.7 million.
Through cooperation in a Joint Venture SH and MC want to engage in a long term relationship
with the purpose to jointly manufacture a new tracking- and tracing system for the telematics
industry. These systems can be used to locate and track down transportation vehicles and other
mobile units. The system consists of a cellular mobile communication system ('black box')
embedded in e.g. cars, which transmits a distress signal as soon as an emergency occurs (e.g.
car theft). A provider receives this signal and - depending on the sort of emergency - alarms the
owner and/or authorities. A growing number of insurance companies obligate their customers to
install a tracking and tracing system in their cars.
Due to the fact that the complete products will be going to be manufactured locally in Thailand,
new markets in the area of tracking systems and related services in Thailand and Asia can be
entered by the Joint Venture. MC will be assisted technically by professionals of SH in order to
manufacture this new finished product. With this innovation the Joint Venture aims to be able to
produce a cost competitive tracking system at first for the European market. Secondly, the
Asian market, specifically Thailand and on the long run the America's.
PSOM05/TH/23
The realisation of moveable wall production in Thailand
Project budget: EUR 515,040
Project Description:
Applicant Parthos B.V. is an important player on the market for moveable wall systems. One of
their local buyers in Thailand is recipient JNV International Supplies Co. Ltd. Recently Parthos
B.V. has lost his market in Southeast Asia and Australia, due to transport cost and the
Euro/dollar-ratio. To regain this market, Parthos wishes to set up a local production unit in the
region. For this purpose, they want to set up a Joint Venture with JNV. This Joint Venture will at
first produce for only the Thai market (sales will go through JNV) and after 2 years the
production has to be increased and the quality has to be on export level. The Joint Venture will
rent a production area, buy machinery and hire 22 employees who will be trained in the
production methods and management skills. A processing line with a capacity of 7,400 m2 per
year will be installed. The Joint Venture wants to become a player of importance in the Thai
market of moveable wall systems with a market share of 15% in 2008 and to become an
important supplier for the South East Asian Market, Australia and Japan. The project will be
realised in Amphur Khlong Luang, Pathumtani Thailand. This location is at the edge of the
industrial zone surrounding Bangkok and the airport.
PSOM05/UG/21
'Uganda Plastic Recycling Industry Ltd.' - Recycling of post consumer
plastic waste in Uganda

Project budget: EUR 824,336
Project Description:
To date plastic waste is discarded in Uganda which results in visual and air pollution. This is
because there is no organised and efficient collection system in place and its development
requires great effort, funding, organisational capacity and risks. To demonstrate the commercial
viability of post consumer plastic waste recycling in Uganda, Plastic Herverwerking Brabant
(PHB) will establish a Joint Venture with Rwenzori Beverage (RW). PHB is a 10,000 tonnes per
annual production plant and is operating on the world market. PHB's its development is growing
and production of plastic is rising significantly. RW has grown to be the largest mineral water
bottling company of Uganda and also exports mineral water to Tanzania, Rwanda and Sudan.
PHB wishes to expand its activities while RW, as a producer of plastic, intends to find a way to
re-use own plastic waste. In this pilot project an efficient plastic waste collection system will be
set up. Several ngo's, private garbage collection enterprises, hotel chains, restaurant owners
and major customers of RW will support the Joint Venture in their efforts to implement this
collection system. The end product consists of washed and dried flakes. Flakes can be brought
back into the production process with virgin material: 10 to 50% recycled flakes can be mixed in
without reducing the quality of the end product. The Joint Venture will export these flakes to
international markets (e.g. India, China, Pakistan, and Indonesia), regional markets (e.g. Kenya,
South Africa) as well as sell its end product on the local market.
PSOM05/UG/22
Pilot production of artemisinin for malaria treatment
Project budget: EUR 820,188
Project Description:
Malaria is the world’s biggest fatal disease, responsible for the deaths of one million people
each year, 90% of which occur in sub-Saharan Africa. In addition, resistance to low-cost malaria
cures (e.g. chloroquine and nivaquine) is increasing. Artemisinin derivatives (from the Artemisia
annua plant) are a safe, effective and affordable alternative. Applicant Botanical Extracts EPZ
Kenya (EPZ) and recipient East African Botanicals Uganda (EAB), both part of the Advanced
Bio Extracts group (ABE), will establish a production chain for Artemisia in Uganda for
processing to a malaria treatment. The project will contribute to the supply of raw material
through the introduction of new, improved production methods, with irrigation allowing the
artemisia plant to be grown in warmer, dryer (less densely populated) areas and spreading
workload from two peaks closer to a year round cultivation system, thus increasing efficiency of
labour and processing facilities. In time, an estimated two-third of the artemisia production will
be provided by small and medium out growers. Transfer of know how is a major part of the
project. EAB Uganda will partner with organisations in Uganda for assistance with training
smallholder farmers. The project will lead to partnerships with one or two large scale
commercial farmers to begin production of Artemisia annua. These farms will run using newly
developed production methods. At the same time the project will start working with small scale
farmers, until they represent 50% or more of production. The out growers scheme will involve an
estimated 300 smallholders, producing a projected 600 tonnes of plant material in 2007. There
will be a comprehensive support system, including nurseries for propagation, seed technology,
post-harvest drying facilities, transport and well trained advisors for smallholders. The
processing of the artemisia (the extraction of the artemisinin) will be undertaken in the
company’s existing plant in Kabale, Uganda.
PSOM05/UG/23
Quality Chrysanthemums from Uganda
Project budget: EUR 825,000
Project Description:
The flower sector of Uganda suffers heavily from competition from Kenya and Ethiopia.
Especially roses, the majority of export, are under pressure. Further, production of
chrysanthemums in Europe is becoming more expensive and during wintertime European
growers have problems delivering high quality chrysanthemums. Flower Direct, a major supplier
of consumer-ready flower bouquets, and Kajjansi Roses, a rose producer, will form a Joint
Venture to establish a production facility for the growing and handling of chrysanthemums in
Uganda. Climatologically Uganda is perfect for the growing of Chrysanthemums, even better
than for roses, so high quality Chrysanthemums can be grown all year round. The project can
create an opening for the flower sector in terms of diversification. Further, the project will
increase exports by 10-30%, which creates opportunities for the association of exporters to
reduce the overall price per kg. An out grower project for the production of other (endemic)
species will be part of the project.
The farm will be started on a new location near to Kajjansi Roses. On an area of 3 hectares,
tunnel greenhouses will be erected with overhead and irrigation, cold room and grading hall. At
the same time trial production with out growers to grow different (endemic) species will be set
up. All people involved will be trained in growing, production and handling of chrysanthemums
and rewarded and treated according to Max Havelaar regulations. After the project the farm will
increase to at least 10 hectare and obtain a certificate for Milieu Programme Sierteelt.
PSOM05/VN/21
Redesigning the calla bulbs supply chain in Vietnam
Project budget: EUR 817,311
Project Description:
Applicant Calla Bulb International (CBI) is a producer/wholesaler of calla's (decorative plants). It
is CBI's strategy to invest in the various stages of the calla bulb production and to get more grip
on the supply chain as this is crucial for the quality of the product. CBI plans to fill the growing
demand in Europe and gain market share in the USA.
Recipient Bonnie Farm is a company which specialises in propagating flower bulbs by using
tissue culture. For the last 4 years CBI has been buying mini calla tubers from Bonnie Farm.
These tubers have to be further developed in very specific climatic circumstances into full size
tubers. Until now this stage of production could only be performed in The Netherlands, Chile or
the Philippines.
After this stage the tubers are sold to CBI who sells them to Dutch calla growers. The final
products to reach the customers are calla pot plants and calla cut flowers. The aforementioned
chain of production is very inefficient due to a lot of costly transportation.
In order to overcome these problems the project partners are going to introduce the techniques
for the last stage of production (from mini tubers to full size tubers) to Vietnam. This is quite a
challenge as the calla tubers are vulnerable to diseases and climate. Furthermore it is a labour
intensive crop. The project consists of a pilot greenhouse production facility of 2 hectares in
Dalat for growing full size tubers with export quality in combination with a 0.4 production facility
for local farmers to grow calla cut flowers for the Vietnamese market. The second quality tubers
will be used as input for this local production. This way CBI will develop the Asian market for
callas.
PSOM05/VN/23
Dairy development in Vietnam
Project budget: EUR 1,252,646
Project Description:
The goal of the project is to increase the economic potential of the dairy sector in Vietnam.
Applicant Campina International B.V. is a division of the large dairy company Campina. The
division focuses on the production and sales of consumer products outside The Netherlands
and Germany.
Recipient Vinamilk is Vietnam's leading milk processing company with 75% market share in
Vietnam.
Recently Campina International has set up a Joint Venture with Vinamilk (50-50) in order to
meet Campina's expansion strategy in Asia.
As milk processing in Vietnam heavily depends on imports (80-90% of the milk supply) due to
low local production of inferior quality, the project partner's aim at upgrading milk production in
Vietnam. A first step in this process is a demonstration of modern dairy farm management to
local dairy farmers. The project therefore wants to set-up two model dairy farms, ten satellite
farms, a farmer's extension and support unit, an input supply unit and two modern milk
collection centres.

Source: http://english.rvo.nl/sites/default/files/2013/12/PSOM%20project%20overview%202005-II.pdf

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