First Wholesale Vegetable & Fruit Price Display at Cargills Fresh Produce Collection Centre in Thanamalwila Empowers Small Scale Farmers

31st March 2013, www.nation.lk

Cargills food Sri Lanka’s leading supermarket chain has launched its first vegetable and fruit wholesale price display terminal at its fresh produce collection centre in Thanamalwila. The terminal was ceremonially declared open by the minister of Coconut Development, Jagath Pushpakumara last week.

The launch of the wholesale price terminal further reiterates the commitment of Cargills towards the empowerment of small scale farmers. “Cargills continues to offer the prices above the wholesale market to farmers along with technical inputs training and marketing information while facilitating credit. Through our retail chain and our group’s manufacturing facilities we have created a revolutionary shift in taking the market to the farmers. Today with this launch of the price terminal we have taken a step further by providing market intelligence for the farmers” said the Chief operating officer-retail, Cargills (Ceylon) PLC, Sidath Kodikara. He added the price terminals would be launched at all collection centers under the group including Jaffna, Nuwara Eliya and Bandarawela.

Cargills had during the year concluded collected over 3,800 metric tons of fruits and vegetables from the Gangeyaya community in Thanamalwila to the value of Rs 238m. The ceremonial launch of the Cargills wholesale price terminal was held alongside the distribution of Rs 1.9m worth of benefits to the farmer community as part of Cargills farmer community development fund established in Gangeyaya, Thanamalwila.

Over 40 scholarships were awarded to students who have passed Grade 5 scholarship exams and those pursuing Advanced Level and External Degrees, and five laptops were awarded to students from the area pursuing University education. 54 students who are from families facing economic challenges were also granted learning material while a further 15 farmers who have made the highest contribution towards fresh produce collection from area were given farming equipment. In addition a resting shelter and 100 chairs were donated to the farmer society while plastic crates for post-harvest transportation were distributed among 30 farmers along with the launch of the wholesale price display terminal.

Cargills Food City also provided HNB Assuarance farmer insurance schemes for 137 farmers free of charge. The scheme covers farmers’ death, disability and permanent disability as well as healthcare benefits. This disbursement of benefits comes as part of the annual community development initiative planned by Cargills together with the farmer community and World Vision Lanka.

Explaining the project, Deputy General Manager of Agri Business for Cargills, Haridas Fernando said, “Every time Cargills buy a kilogram of vegetables from the farming community in Gangeyaya, 50 cent goes back to the community development fund. Annually the funds are utilized for scholarships and projects that would develop the quality of life of the farmer community”.

General Manager, Retail operations of Cargills, Keerthi Gunasekara added “We have developed a similar fund at our collection centers in Jaffna and Moneragala with plans to expand the concept to all farmer communities we work with. The funds provide scholarships for needy children from the community, resources for learning and advancement and even meet basic community infrastructure needs such as utility connections, community centers and libraries etc. Our focus is to engage the communities that work with us to charter their own course of development”.

Speaking to The Nation a farmer from Gangeyaya, D.G. Nandasena stated, “We are gaining lot of advantages and it’s very convenient to sell vegetables to Cargills. Even today I brought 500kgs of vegetables to the center. The only problem we face is that the transportation as the bridge we use is n a dilapidated state. We have come through a different route after gaining permission from the Wild Life Department as the road passes through thick jungle and also dangerous. It will be a great help if the authorities take steps to reconstruct the bridge as early as possible which will also save lot of time in transporting our produce.

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Sri Lanka’s FMCG Sector Shows Rapid Growth. Valued at Rs 141bn in 2010. Food & Beverage Including Cigarettes Account for 74pct

06th February 2012, www.news360.lk

Sri Lanka’s Fast Moving Consumer Goods market has seen a rapid growth over the years, says a new equity research report.

The report says this has created fierce competition among manufactures, who are trying to provide quality products at a normal price range for the local consumers.

The report compiled by Bartleet Religare Securities also says, according to the available data, Sri Lanka’s FMCG market weighed at Rs. 141 billion during the year 2010.

It says, out of this portion 74% is captured by the Food and Beverage sector which also includes the consumption of cigarettes.

The report discloses that personal care and home care compete closely with a market share of 15% and 11% respectively.

BRS points out, that despite the growth in the FMCG sector, its traditional dependence on imported goods has slowed down as local manufacturers are substituting with equally good products.

The study reveals that in comparison to neighboring countries like India and Thailand Sri Lankan consumers on average shop at least four times a month.

“Increasing population in a country backed by strong per capita income growth would also influence consumers to buy more frequently”, adds the BRS report.

It says, Sri Lanka has a higher per capita income in comparison to other SAARC countries which it points out is said to increase to USD 4,000 by 2016.

The research finds that according to 2009/2010 official data, expenses of a household in Sri Lanka runs up to around Rs. 32,446 and out of that 40% is dedicated to food and drinks.

The balance, the report points out is distributed between various segments in the likes of housing, fuel and lighting, health care etc.

Related Info :

• Unprecedented Growth in Sri Lanka Supermarket Trade in Coming Years – Research Report

Unprecedented Growth in Sri Lanka Supermarket Trade in Coming Years – Research Report

03rd January 2012, www.news360.lk

Sri Lanka’s supermarket trade is expected to see an unprecedented growth within the next few years, backed by increasing per capita income, an increase in the work force and the changing consumption patterns, says a newly released equity research report.

According to the report, the spread of supermarket trade in the country as of now stands at just 15%.



The report compiled by Bartleet Religare Securities says, with the end of the war, the three leading supermarket chains in the country, namely Cargills, Keells and Arpico have started expanding aggressively while investing heavily in to this segment.

The report also observes the demand for supermarkets is also backed by convenience and late shopping hours it offers to the customers.

“Some individuals are also attracted to processed food items found in supermarkets which are much easier to prepare”, the report reveals.

The study has found that Supermarkets are also at an advantage, as they have a higher bargaining power over suppliers and are in a better position to offer products at competitive prices due to economies of scale.

However, despite the growth potential, the report says that most supermarkets operate on thin margins thus banking on higher volumes to cover operational costs while at the same time focusing on cost effective strategies.

“ Owing to the high competition in the industry; various promotions, loyalty schemes and advertising has to be carried out on a regular basis to retain the respective clientele as switching cost to customers are minimal”, added the BRS report.

According to BRS, there are 516 supermarkets being operated in the country which can be categorized as supermarkets, hypermarkets and convenience stores.

Cargills operates 177 supermarkets and the state owned Sathosa which offers products at a subsidized rate operates a convenience store network of 250 stores.

Keells has 48 supermarkets being converted to a hyper market while Arpico operates 13 hyper markets.

Sri Lanka Supermarkets to Grow 20pct Annually on Increasing Consumer Purchasing Power

23rd November 2010, www.dailynews.lk, By Indunil Hewage

The supermarket trade in Sri Lanka is expected to grow 20 percent per annum in the years to come owing to increasing purchasing power of the consumers. It is expected that this growth would be apparent from the next year. Richard Pieris Group Director and Chief Operating Officer (COO) Pravir Samarasinghe said the retail market which consists of small boutiques will also record about three to five percent growth per annum in keeping with the Government’s objective to record seven to eight percent economic growth in the country.

The total proportion of the supermarket trade is 15 percent out of the retail industry in the country. The remaining percentage has been acquired by the general trade.

It is expected that the supermarket trade proportion will increase at an unprecedented rate in the future.

“Retaining in the supermarket trade in a profitable manner is a challenging task as it needs more expertise and financial stability to run the trade in a continuous manner,” Samarasinghe said. The prevailing stiff competition among the giant players in the supermarket trade has not attracted newcomers in the market.

In addition to that the high entry cost has also hampered their aspiration to enter the market.

“The Government efforts to double the per capita income in five years will also enhance disposable income of the people creating an impetus to bolster the supermarket trade,” Samarasinghe said.

“During the last couple of years many players who entered the supermarket trade were unable to sustain their ventures, as they were not privileged to enjoy the various advantages reaped by major players in the industry,” Samarasinghe said.

Cargills to Launch 100 New Outlets in Sri Lanka

11th December 2009, www.dailymirror.lk, By Nizla Naizer

Sri Lanka's premier retail super market chain Cargills Food City announced the launch of 100 new outlets all over the country, with the opening up of its 140th outlet at Rajagiriya yesterday.

The new Cargills Foods City at Rajagiriya offers over 10,000 square feet of an ultra modern shopping experience for customers open from 8 a.m. to 11 p.m. daily.

Shoppers can expect the superior customer care that has come to be the hallmark of Cargills. The new outlet features a range of 10,000 products, a bakery, fresh vegetables and fish as well as a wide variety of high quality processed meat and much more.

Cargills CEO Ranjit Page said: "The launch of our 140th outlet is all the more special because this outlet marks simultaneously the first of 100 more Cargills Food City outlets that will be set up in neighbourhoods across 25 districts in the coming years."

"This bold decision was taken as a result of our understanding of consumers and their need for greater convenience and affordability. Being the first retail network to initiate our own out-grower network, we are proud of our ability to give the highest possible price to farmers while providing nutritious high quality goods to the consumer at the most affordable prices," he said.

"I am confident that the 100 new Cargills Food City outlets will create an agricultural revolution that will be the engine of growth for the nation. I am deeply grateful to Cargills Food City customers for their loyalty and look forward to their unstinted support over the next few years as Cargills Food City drives the transformation of the retail landscape in the country," Page added.

He also said that the decision to add 100 more outlets had positive repercussions for the nation in its entirety, since 70% of the workforce employed in Cargills Food City outlets hails from rural Sri Lanka, receiving advanced professional training at the non-profit Albert A. Page Institute of Food Business.