AID grants to CKS Holding Company, Ltd. for a feasibility study of farmer outreach pineapple processing plant, Thailand

A.I.D. will finance up to 50% of the study/plan; grant funds will be repaid to A.I.D. should CKS (or its equity investors) invest in, or become principal suppliers to or customers or managers of, the proposed processing project (or any venture based on the findings of the study/plan). CKS proposes to purchase a pineapple canning facility in southern Thailand, whose negligent management has led to a deterioration of plant and equipment, a loss of market share, and farmer input problems. To remedy the last-named problem, CKS intends to radically alter raw material procurement; this will entail significant farmer ownership of the company and enhanced coordination between factory and field production capacity. To achieve this, farmers will be enlisted as sponsors at the organizer level. The study/plan will include: (1) an agronomic study of pineapple growing conditions in the area where the plant is located; (2) a farmer-outreach program involving 350-400 households (25,000-30,000 rai of growing area) to supply the plant with a constant delivery of fruit, and plans for cooperative transportation and procurement of inputs for these farmers; (3) a renovation/expansion plan to provide the canning plant with a capacity of up to 2.0 million cases of pineapple a year and an estimate for state-of-the-art facilities capable of producing up to 2.2 million cases a year; (4) a market study and marketing plan, based on a comprehensive study of the Thai canned pineapple industry, analysis of long-term trends in world prices, and contacts with major distributors in the United States, Europe, Japan, and new markets; and (5) a financial plan, including an evaluation of the project"s financial viability on the bases of the foregoing analyses, as well as long- and short-term plans for project implementation. In order to reflect the "public" nature of the proposed project (as opposed to the family-dominated ventures more prevalent in Thailand), both equity and participation and management will reflect the contributions of farmers, processors, and distributors.