Pran to double farm produce procurement

Sohel Parvez

Pran has set a target to double investment in agricultural produce procurement, mainly from contract growers, to boost sales in domestic and export markets.

The leading processed-food maker will buy agricultural produce worth Tk 400 crore in 2010, officials said.

Until November 2009, Pran has purchased various agricultural products worth around Tk 200 crore from farmers.

“We have planned to increase the raw material procurement to expand business and serve rural farmers," said Kamruzzaman Kamal, marketing director of Pran-RFL Group.

The entity with turnover in excess of Tk 900 crore will buy mangoes, aromatic rice, pineapples, tomatoes, fresh milk, spices, peanuts, mung, potatoes and mustard from farmers, mainly in the north.

Pran that exports to more than 70 countries plans to cash in on the growing market for agro-processed foods.

“We will purchase mainly from our contract farmers. We believe such direct buying helps farmers get fair prices as it reduces scope for middlemen to make extra gains," said Kamal. Pran procures agricultural produce from more than 10,000 contract growers.

Of the Tk 400 crore purchase plan, a fourth or Tk 100 crore will go into procuring mangoes to extract the pulp that makes mango flavoured juice and strengthen its position in the mango drink segment.

Currently, more than 10 local and foreign brands are competing in the category to dominate the rising mango-flavoured drink market.

Pran bought mangoes worth Tk 70 crore from farmers this year.

This year, aromatic rice, fresh milk, tomatoes and spices will account for most of the procurement.

“We have close connections with farmers in rural areas,” said Kamal, adding that the contract farmers are offered market prices.

“We have contract growers in various districts such as Rajshahi, Natore and Chapainawabganj. They produce tomato, aromatic rice, mango, peanut, milk and spices."

Kamal said the company wants to bring in more farmers under contract next year to ensure guaranteed supplies of fresh agricultural produce.

sohel@thedailystar.net