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Business start-up

1

Tajik Fruit Company

Cleaning and Exporting of Dried Apricots from Tajikistan

Purchasing of dried apricots from local farmers, sorting, cleaning and packaging them for export markets to the US and Europe. In 2006, as a private entreprenuer, I exported 13 metric tons of cleaned dried apricots to Pennsylvania, US. This was the first time a food product was sent to the US from the Sugd Province, Tajikistan.

Facts

Legal status business
Formally registered
Year of establishment

2007

Sales (US$)
Two years ago: 0
Last year: 0
This year (forecast): 820,800
Year 2 (forecast): 1,641,600
Year 3 (forecast): 2,462,400
Net profit after tax (US$)
Two years ago: 0
Last year: 0
This year (forecast): 17,300
Year 2 (forecast): 140,278
Year 3 (forecast): 237,621
Total number of Employees
Two years ago: 0
Last year: 0
This year (forecast): 22
Year 2 (forecast): 39
Year 3 (forecast): 58

Finance needed

Finance needed for fixed assets (buying of machines, buildings, ...) 398,000
Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) 120,000
Total finance needed (US$) 518,000

How do you expect this to be financed?

Own Contribution in cash 10,000
Loans (debt) 120,000
Shares in your company that you offer to investors (equity) 388,000
Other sources
Total finance needed (US$) 518,000

The Business

What is your product/service?

The product my company will produce is clean quality dried apricots. Original varieties for apricots around the world are found in the Ferghana Valley of Central Asia (the Asht region of the Sugd Province of Tajikistan is in the Ferghana Valley) where I plan to establish my business. In the United States the apricots will be marketed under the brand name CandyCot by Lancaster International Trading Company because of its high sugar content.

What customer need/problem do your products/services satisfy?

Tajikistan currently markets thousands of tons of low quality apricots from its 11,000 hectares of apricots orchards to countries of the former USSR. However, I will produce a high quality dried apricot that will compete in United States, Europe, Russia and elsewhere.

How will you make the product/service?

My greatest current need is to purchase land and construct a permanent processing facility. I plan to purchase world standard apricot processing equipment from Turkey that will wash and calibrate the apricots and hire up to 32 employees the first year to start my business who will grade and package the apricots for export. I will purchase the apricot supplies directly from private local farmers.

Explain how you will sell your product/service (marketing strategy) and how you will reach your customers (distribution strategy)?

Currently my marketing strategy is keep strong relationships with my current partners, Myron Stoltzfus, John Driver and Thomas Brown. John has known me for the past 6 years, Myron for the past four years and Thomas Brown for the past year. They have trained me in processing dried apricots, have seen the product I made in 2006 and want to continue buying my product. I would also like to set up marketing on internet trade platforms.

To whom are you selling, what is your market?

Tajikistan currently markets thousands of tons of low quality apricots to countries of the former USSR. However, I will produce a high quality dried apricot that will compete in United States, Europe and elsewhere. I will market to wholesale food distributors, package the product in 5 - 12.5 kg cardboard boxes and ship by container to the buyer.

Describe your competitors?

Competitors of Tajik Fruit Company are other apricot producers on the world market, most significantly, Turkish and Californian apricots. There are also other exporters of apricots from within Tajikistan, but they are only marketing low quality apricots to countries of the former USSR.

What makes your business different/better than your competitors (competitive advantage)?

The sweetness, size and bright colors of the dried apricots from the Ferghana Valley are unmatched in the world market. The sugar content of my dried apricots is more than 100% than of Californian and Turkish apricots.

What makes your business, your product or service innovative?

As already mentioned, the world western markets have yet to taste dried apricots from the Ferghana Valley, that are cleaned, sized, and graded according to international Western standards. When they do, they will never be satisfied with other apricots currently in the Western markets.

Compared to other apricot exporters in Tajikistan, nobody else is producing the quality standard that we will produce.

How will you ensure the growth of your business?

To ensure the growth of our business, we need to maintain our standard on quality to be sure that our initial customers are satisfied and continue to market our products. We are sure that when our apricots hit the Western markets the demand will increase significantly.

The Entrepreneur & Management

Describe the entrepreneur & management

There are few, if any, in the Sugd Province (the northern province of four provinces in Tajikistan) that has the knowledge, understanding of world market standards, skills and expertise of dried apricot processing which I have.

I am the director of Tajik Fruit Company, but will also hire an accountant, supplies, production, sales managers and processing personnel.

What specifically makes you and (if relevant) your management team most qualified to build this business?

I will be establishing this business in my home region and I know the needs and local apricot economy of my region very well. For 7 years I worked in a development NGO, learned alot about commnity development and have received much training from Western development workers in seeing this business opportunity as a way to develop my community. I have received much technical and quality control training for developing this business including HACCP training.

How much time do/will you expect to spend per week in the business?

I intend for this business to be my sole means of income and am willing to invest up to but not limited to 60 hours a week to see the business succeed.

Development

How does your business improve the local living standards (social and environmental)?

I plan to hire 50 or more employees who will work in processing dried apricots. This will directly impact their families’ income. Our suppliers, local apricot raising fruit farmers, will also be impacted as they will have a buyer to whom they can sell their quality products.

I desire to invite agriculture specialists to hold training to benefit the local fruit farmers on proper pruning, spraying, harvesting and drying techniques.

1 comment

Good JOb Zamira - You are doing it!!!

Hi Zamira,

I guess it will come as a surprise to you that I got to this website. I remember you talking about the idea of exporting dried fruits some years back and now I see you are actualy implementing it. Congrats!!!!

18 Sept 08, 09:05 Shavkat Mamadjonov, 18 Sept 08, 09:05