Your SlideShare is downloading. ×
Developing natural products and new value chains in Kelantan: What, How and for whom
Upcoming SlideShare
Loading in...5

Thanks for flagging this SlideShare!

Oops! An error has occurred.

Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Developing natural products and new value chains in Kelantan: What, How and for whom


Published on

Developing natural products and new value chains in Kelantan while maintaining cultural integrity: What, How and For Whom. …

Developing natural products and new value chains in Kelantan while maintaining cultural integrity: What, How and For Whom.
Keynote Address to the Conference on Plant Natural Products: Integrating Traditional Practices & Technology Advancement for Creating Business Opportunities, 21-22 November 2011, Grand River View Hotel, Kota Bahru, Kelantan.

Published in: Health & Medicine, Technology

  • Be the first to comment

  • Be the first to like this

No Downloads
Total Views
On Slideshare
From Embeds
Number of Embeds
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

No notes for slide


  • 1. Developing Natural Products andNew Value Chains in Kelantan whileMaintaining Cultural Integrity: What, How and for Whom Mohd. Murray Hunter University Malaysia Perlis (UniMAP) Keynote address to the Conference on Natural Products: Integrating TraditionalPractices & Technology Advancement for Creating Business Opportunities, 21-22nd November, Grand River View Hotel, Kota Bahru, Kelantan, Malaysia
  • 2. “On one hand, rural development starts with people andtheir education, organization, and discipline. Without these three, all resources remain latent, untapped potential” E.F. Schumacher 1975, P. 168.
  • 3. The importance of Kelantanese Culture
  • 4. Product Space Map of Kelantan Agricultural Activities Other Activities Biotechnology Education Rubber Fruit Production Agro-Industry Fishing Palm Oil Vegetable Production Agro-Tourism Industry Service Transport Paddy Other Crops Handicraft Logging Construction
  • 5. Requires focus on concept of product where present Focus focus is on cultivation This requires researchParadigm This requires entrepreneurship approach Concepts not understood by farmers Needs access to worldwide data Basic Requires availability of suitable germ-plasmas Requires basic R&D to determine whether cropResearch technically suitable Requires basic R&D to determine if potential crop is economically feasible
  • 6. Crop Propagation technologies How to plant, cultivate & manage to cropManagement & How to harvest, extract, store and handleProcessing How to process How to package Transportation and storageMarketing Require coordination of production with demand Require correct channels of distributionInfrastructure Requires a marketing strategyEconomies and Requires enough volume to economically transport and distributeLogistics Requires solution to inconsistencies of quality and production
  • 7. Organisation Need committed people with strong leadership and trust Government Need to translate support into action Need funding allocations Finance Very difficult to obtain funding for these projects Consumers Need efforts for education & promotionPartly modified from Kee, T. B., Monoculture in Malaysia: Impacts, Potential Solutions, paper presented to Monocultures: Environmental and Social Effects andSustainable Alternatives Conference, Songkhla, Thailand, 2-6 June, 1996.
  • 8. Raw Herbs Traditional Herbal Medicines Fresh Dried Consumption Fermented Medicinal Medicinal Powders Beverages ExtractsStandardised Extracts Fractions & IsolatesPhytopharmaceutical Bioactive Products Compounds Prescription & OTC Enzymes Essential Oils & Drugs Other Volatiles Agricultural Personal Care Flavour & Aromatherapy Application & Cosmetics Fragrance Figure 1: The Family Tree of Herb Derivatives
  • 9. Traditional Chinese Medicine Homeopathy
  • 10. UnaniAyurveda Siddha
  • 11. Berberine Berberis vulgaris Quaternary Ammonium Compound Fungal infections Diabetes mellitus Intestinal disorders Coptis chinensis Represses tumor growth Antidepressant
  • 12. Tea TreeAustralia
  • 13. Processed Food
  • 14. Beverages
  • 15. Fine Fragrance
  • 16. Aromatherapy
  • 17. Cosmetics & Personal Care
  • 18. Household Products
  • 19. Pharmaceuticals
  • 20. Organic Agro-Chemicals
  • 21. Existing Thai Organic Products
  • 22. New Foreign Products Essential Oil Based Fungicides/Insecticides Control Nimgard + Kocide Timorex 0.5 % Timorex 1 %
  • 23. Powdery Mildew in Sage Field results Sage a 7 Disease rating ( 1-10 ) 6 5 4 b 3 b 2 b 1 0 Control Neemgard 1% Timorex 0.5% Timorex 1% Treatment Five foliar sprays at 7-d intervals
  • 24. Powdery Mildew in Parsley Field Results Parsley a 50 45 40 Percent infected leaves 35 b 30 25 20 bc 15 10 c 5 c 0 Contol Timorex 0.25% Timorex 0.5% Timorex 1% Nimgard+Kocide Treatment Five foliar sprays at 7-day intervals
  • 25. Prophylactic activity grape downy mildew Adelaide, Au.Field Results Grapes 35 Percent infected leaf areaTreatment & Prophylactic 30 25 20 grape PM- Carignan 15 Treatment Percent infected clusters 10 Control 48.8 a 5 Timorex 0.5% 0.5 b 0 Timorex 1% 0.0 b Control Timorex 0.5% Copper 0.5% Tebuconazole 0.02% 0.0 b Treatment Plants were infected 2 days after spraying 4 foliar sprays at 14-d intervals Disease was rated 14 days after inoculation
  • 26. Powdery Mildew by Timor Field Results Grapes Control of grape DM- 2003 5 foliar sprays at 7-d intervals Timor 0.5% Control 70Percent infected leaves 60 50 grape PM- Chardonnay 2003 40 70 Percent infected clusters 30 60 1st Rating 1.7.03 20 2nd Rating 15.7.03 50 10 40 0 30 Control Timorex 1% Kocide 0.25% 20 Treatment 10 0 Control Timor 0.5% Heliosulfur 0.5% Treatment
  • 27. Enzymes & Cosmetics
  • 28. Introduction
  • 29. Common Enzymes, Potential Sources and Other Potential ApplicationsEnzyme Potential Sources Potential ApplicationsAscorbic acid Citrus fruits, leaf vegetables, Fruit preservation, cleaningoxidase cucumbers applicationsBeta-amylase Grains, sweet potatoes, taro, Yeast production cassavaBromelains Pineapples Fertilisers, pseudo hormones, cleaning, cosmetics, personal care, mouthwashes, skin healing, anti- acne, anti-microbialCatalase Animal wastes, milk wastes Cosmetic, anti-ageing, oxidisingChlorophyllase Some leaf vegetables UV absorptionElastase Animal intestines Cosmetics, anti-agingGlucoxidase Some mushrooms, mould, other Anti-oxidant fungiPapain Papaya Fertilisers, wound and skin healing, mouthwashes, other cosmetics, dishwashing, all purpose cleaning
  • 30. Natural Enzyme Based Products
  • 31. Organic Herbicides BeforeProduct Reported Results*Control ORound Up 10Pro[i]All-Down Range 0.5 – 3.8Organic[ii] [i] Registered Trademark of Monsanto. [ii] After
  • 32. Pharmaceuticals: Artemisia annua A source of artemisinin for treatment of malaria World Shortage Straight forward cultivation
  • 33. The Stages Involved in the Development of a Pharmaceutical Product Discovery: 2-10 years The extraction or synthesis of a new clinical or biological substance Preclinical Testing: 4 years Laboratory and animal testing Clinical trials: 7 years Phase 1 20-80 health volunteers used to determine safety, pharmacological and dosage. Clinical trials: Phase 2 100-300 patient volunteers used to determine safety and efficacy Clinical Trials: Phase 3 1000-5000 volunteer patients used to determine clinical health benefit and incidence of adverse reactions TGA Registration 1.5-2 years 35-40K pages of data submitted for evidence on average Pharmaceutical Benefits Scheme: 8 months Determination of cost effectiveness Product Promoted to the Medical Profession Post Marketing Monitoring: monitor safety and efficacy when used in wider population, with other diseases and taking other medicines.
  • 34. Screening• Require Knowledge of Essential Oil Applications• Require knowledge of International Market• Require Knowledge of International Regulations• Need to Collaborate with Industry Parties
  • 35. Screening Protocols• Anti inflammatory• Anti microbial• Skin whitening• UV absorbing• Anti age actives• Flavour & fragrance application• Aromatherapy
  • 36. Regulatory Screening• United States - GRAS (Genarally Regarded as Safe)• RIFM – Collections of Monographs• Food and Drug Administration• Europe – REACH, BPD, SCP
  • 37. Ranking Criteria1. Potential Returns2. Production Costs3. Capital Investment4. Crop Suitability5. Risk6. Time Frame of Opportunity7. Level of Difficulty to enter Market8. Personal Bias
  • 38. A Grid showing the characteristics of a new essential oilThe novelty of a A C D Bnew essential oil Low Novelty High NoveltyThe potentialuses & applications Low Potential High Potentialof the new essentialoil Close No Close The closeness of any substitutes Substitutes SubstitutesThe stability of Poor Stability Good Stabilitythe essential oilin applicationsThe Poor Ratio Good Ratiocost/performanceratioThe Toxicity High Toxicity Low ToxicityThe general Lowconsistency of Highquality and supply Consistency Consistency The prevailing Low Trend High Trend market/product Match trends Match The current High Low level of likelihood of Likelihood of technology synthesis Synthesis
  • 39. Evaluation Criteria (Aroma)• The Novelty of the new essential Oil Dependent on the uniqueness of the flavour/odour profile. Degree of novelty, limited by the availability of substitutes. Can be considered novel, if considered a more cost effective source of a natural aroma chemical. Source of a natural aroma chemical, not previously known to exist in economically extractable quantities.
  • 40. Evaluation Criteria• The Perceived Potential uses and Applications of the New Essential Oil Perfumers and Flavourists must perceive applications potential. Material must be stable and versatile in harsh media of end products.
  • 41. Evaluation Criteria• The Closeness of any Substitutes to the New essential Oil• Degree of ease new aroma from essential oil can be duplicated by synthesis or reconstitution. If close substitutes available, new material must be more cost effective.
  • 42. Evaluation Criteria• The Stability of the New essential Oil• Stability as an essential oil and stability in end products.
  • 43. Evaluation Criteria• The Cost Price/Performance Ratio of the New Essential Oil• Important in the application potential of the new essential oil. New material must offer a perceptible odour/flavour at low concentrations
  • 44. Evaluation Criteria• The Toxicity Aspects of the New Essential Oil• Must be proven beyond doubt through expensive trials. Flavour and Fragrance houses will not consider using a new essential oil unless it meets IFRA safety and Toxicity recommendations and is included in the FEMA GRAS list. EU has recently regulated on a number of aroma materials
  • 45. Evaluation Criteria• The General Consistency of Quality and Supply• Natural materials vary in quality according to geographic origin, type of soil, level of nutrients in the soil, climate and weather, rainfall, time of harvest, season, methods of extraction, altitude and the incidence of pests and diseases. Risks of supply from natural disasters, wars, political conditions and the inexperience of new producers
  • 46. Evaluation Criteria• The Prevailing Market/Product Trends• Market and product trends slowly evolve. These are the results of complex forces such as technology, advertising and cultural influence upon consumer tastes and preferences. A particular essential oil may become more or less important to industry, depending upon these trends.
  • 47. Evaluation Criteria• The Current Level of Technology• Technology influences substitutes that are available and the costs of production.
  • 48. Media Reports The Continuum from media reports to wisdom in relation Ideas to availability and usefulnessAvailability Increases Data Information Knowledge Wisdom Usefulness Increases
  • 49. The Agronomic Characteristics Required for the New Essential Oil Genetic Material Easily Need to Available Develop Habitat & Not Suitable Topography Very Suitable or Need to Suitability Develop Soil Type, Texture & Very Suitable Not Suitable Drainage Suitability Temperature Very Suitable Out of Range Range Suitability Very Suitable Deficient or Rainfall Excessive Suitability Access to Yes No Irrigation Diurnal Very Suitable Out of Range Radiation Crop Common & Require Maintenance Cycle Generic Specialized Processes Pest, Disease & Common & Require Weed Control Generic Specialized Issues Processes Harvest & Require Common & Extraction Specialized Processes Generic Processes
  • 50. The Project Characteristics.Technology Low & High &Required Generic SpecializedLevel ofMechanization Low and/or High and/orRequired Generic specializedResearch & Short & straight Long &Development forward ComplexTime-frameCapital Low HighRequirementsCrop Cycle Short LongTimeframe(Additional)Infrastructure Low HighRequiredRegulatory Low Need of High Need ofIssues Consideration ConsiderationSkills,Competencies& Capabilities Common & Rare &Required Generic Specialized AvailableNetworks, Need Network,Market, Potential Networks, Wide SpecializedCompetitors, etc. Market & high Market, Few competition CompetitorsPotentialRevenue Low High
  • 51. Competencies Required During the Strategic and organizational Essential Oil Development Process competencies require: Administrative, financial Strategic, organizational, management, technical relationship opportunity management, strategic competencies require: management, personnel Business strategic, industry Strategic, operations, management, resources knowledge, industry finance and technical management, networks, ability to raise management entreprenuerial finance, ability to plan, implement & adjust, leadership, entrepreneurial Marketing & commercialisation Product & venture management Strategic, opportunity and technical competencies require: Project management, marketing management, chemistry, cosmetic New product chemistry, perfumery/ development & flavour knowledge, creation of value Packaging & design, manufacturing added products & engineering activities Sustaining and growing the enterpriseTechnical competencies (adapting & survival) require:Thermodynamics and plant Harvesting, physiology, heat transfer, Extraction and distillation engineering, wastage handling chemistry, chemical engineering, agriculturalengineering, environmental engineering (waste management) Planting, cultivation & maintenance Output: Result/Performance, Sustainable and healthy enterprise orTechnical competencies require: a struggling and failing enterprise Bio-system engineering, Soil management,entomology, plant nutrition, Propagation & Agronomics, field Technical Competencies require: management, irrigation domestication or Plant physiology, micro-propagation, nursery engineering introduction management, agronomics Screening & Opportunity and technical Bio-prospecting competencies require: Botany, ethno-botany, research ability, chemistry, bio-chemistry, analytical chemistry. Market and specific technical product knowledge
  • 52. A Simple Competency Audit Example (Hunter 2009, P. 299). Competency Present Not Comments Present Technical 1. Botany Basic Low Need guidance 2. Plant Physiology Low Need assistance 3. Chemistry/Analytical Basic Low Need guidance 4. Micro-propagation Experience Low Assistance 5. Nursery Management Experience Low Available 6. Environmental Engineering Experience Low Can design 7. Chemical engineering/thermodynamics/etc Basic Low Need appraisal 8. Soil Management Basic Low Use contractor 9. Agronomy/plant nutrition/field Basic Low Use institute management Replicated 10. Entomology experiments 11. Irrigation engineering With Environment 12. Agricultural Engineering Use contractor 13. Regulation knowledge Can develop 14. Cosmetic chemistry/food etc Need assistance 15. Perfume/flavours Learn from 16. Packaging & design experience 17. Consumer product manufacturing Use contractor
  • 53. Competency Present Not Comments PresentOpportunity/Entrepreneurial/Commitment1. Able to screen environment for opportunities Yes Need to see realistically2. Able to evaluate opportunities Yes3. Commitment level PassionateRelationship1. Have relationships in target industries A few2. Have relationships in research area A few3. Have relationships in finance industry SomeOrganising/Management1. Able to project manage Yes2. Able to administrate Yes3. Able to financially manage operation Yes4. Able to undertake research Yes5. Able to keep key people motivated YesStrategic1. Understand dynamics of market and industry Yes Believe so but not environment Yes tested2. Able to plan for a business within this environment Yes3. Able to implement, evaluate and adjust plans in this environment
  • 54. The Farm Family Family & Farm History, Current farm Operation, Current Family Status. Family Values Self Assessment Strategic Business Analysis Decision Making Skills Land Knowledge Labour The Vision Competencies Capital “Mission Statement” Personal Goals Family Goals Business Goals Business Aspirations Family Land & InvestmentCompetencies Considerations Estate Plan Self view Knowledge Generational Valuing the Time horizon Income needs evolution estate Production & Investment Operations Time Horizon Grooming Liquidity needs options successors Marketing View of Tax planning Risk retirement Family aspirations management Personnel Alternative land Opportunity Lifestyle use applications Tax planning Financial cost of doing other activities Attachment Multi- OpportunityRisk Management use/business cost of doing Passion other activities Horizontal andvertical expansion Exit barriers
  • 55. $ Cost Conceptual Value Added Processing Options with Revenue and Cost Implications Final Product Product Development Harvesting &Degree of Processing Extraction Planting, Maintenance & Irrigation Propagation Land Preparation Trials Selection of Crop Crude Essential Oil Crop & Pharmaceutical Nutriceutical Aromatherapy Organic Agro- $ Return Biofuel Animal Feed Cosmetic & Compost & Project product Mulch Failure No Return Final Product Form
  • 56. Venture Focus Along Different Parts of the Supply Chain Manufacture of end products. Focus on Consumers formulation and end Consumer product Trends development Important Wholesalers & retailersVertical Integration Along the Supply Chain Essential oil as an ingredient in a product. Focus on uses and applications Technical Branding research Trends Theme Manufacturers Important Consumer Marketing Essential oil as Reaching Application primary Product. Mass or Focus Flavour & Fragrance Focus on market Technology selected Markets Houses demand & supply Focus and meeting New Product standard IP Focus (?) Development Specific Demand & Customer Traders & Brokers Supply, Buying Criteria Important Technical Primary Producer Focus General or Niche Customers Agro Industrial Consumer Orientation Orientation Orientation
  • 57. Natural Product Development Process (Aromatic) Screening Process Screening Biological For Screening Development Potential Regulatory Screening Market Development Environmental Analysis Commercialis -ation Evaluation of Strategies Capabilites Market Analysis Development Process Technical Development
  • 58. The Natural Product Strategic MatrixAn Existing Crop – Product Already An Existing Crop – Leading to a New Traded Product This may involve moving along the value chain to a new market This can be seen as an improvement on existing based on an essential oil already produced or producing an essentialproduction or setting up new production in an area oil for some type of value added product. already producing the crop. Improving cultivation and harvesting methods to improve productivity Improving cultivation and harvesting methods Finding out what products potential customers want in a new to improve productivity product Finding new customers and channels to Producing a new product according to identified consumer needs increase sales Organising the supply chain for the new product to get to market Making the product available to more consumers who are likely to want itA New Crop to a New Geographic Area A New Crop and New ProductThis involves producing an essential oil already in This involves producing a product higher up the value chain, differentiating it and producing the natural product. trade in a new geographical area. Making informed decisions about new crop choices Establishing the most efficient way to Establishing the most efficient way to cultivate, cultivate, harvest and process the natural harvest and process the natural product product Finding out from potential customers what they want Matching the newly produced natural product from the new product with customer expectations and requirements Making sure the oil meets the customer’s needs as closely as possible Organising the supply chain so the natural Organising the supply chain so the natural product product reaches the market reaches the market Making the natural product available to new customers who are likely to require it
  • 59. A typology of Various Farming Research Management Concepts Social Systems Agriculture Participatory Action Agricultural professional Research stance that emphasizes Emphasis on co-learning farming as a social practice through farmer and Discipline Orientation that uses technology community participatory research and empowerment programs Shift from theoretical and technical to community collaboration and Traditional Academic Farming Systems problem specific Based Research Research research Based on developing On-farm technical problem technology and principals, diagnosis and adaptive models and possible research practices Technical General Domain Focus Local
  • 60. that there “is also the tendency for Asian countries, including Malaysia, to deal with the issue of values in development by Importing many technologies and systems wholesale from abroad without going through the process of mental transformation necessary to master them fully. Although Malaysia is going through rapid transformation, our growth is one without development in the context of knowledge contribution to science, engineering and technology. As long as we are consumers and operators of sophisticated techniques, plants and technologies imported wholesale from abroad, we are to a certainextent undergoing a technology-less form of industrialization. This transformation of values and attitudes is a key issue in the nation’s development agenda”[i] .[i] Asma, A., Going Glocal: Cultural Dimensions in Malaysian Management, Kuala Lumpur,Malaysian Institute of Management, 1995, P. 179.
  • 61. Tissue Culture
  • 62. Microwave Oven Pressure CookerChemicals & Spoons, etc. Glassware
  • 63. • Minimise Production scale to account for initial low sales/production quantities and lower capital investment• Mobile GMP Facility • Simplified Technology
  • 64. CultureTheories in action Stories, myths, heroes, artifacts, informal behavioursverses EspousedNorms and group Productivity Values Organisationalbehaviour & learning (single or effectiveness double looped Leadership Beliefs Assumptions
  • 65. The Cultural Dialectic Destruction Negative Attributes Positive Attributes Growth
  • 66. Modifying your emotional balance to become more effective, breakthrough psychological blocks and become generally more positive. Fearful Positive Awkward Anxious Emotions Intimidated Tense Develop positive emotions Panic Reduce negative until they dominate feeling Confident Scared & thinking Courage emotions until Confused Passionate they don’t exist EnergeticOverwhelmedApprehensive within your Determined Shocked feelings and Challenged Confused thinking Competitive Blurred FocusedNegativeEmotions Develop Self-esteem, confidence and motivation
  • 67. Courage The different sets of emotions will heavily influence performance. Passionate intimidatedDetermined EnergeticOverwhelmed Anxious Challenging
  • 68. Different weight and balance of emotions may“Big-headed” produce different behaviour & performance Confused Awkward Tense ScaredOverwhelmed ShyPassionate Confident Excited
  • 69. Society & family, peers & Influence on other paradigmsrole models, assumptions,values, beliefs, learning,mentors, perceptions Peer groups mentors, society Cultural Paradigm Commitment and ethicsUpbringing and family Social & Educationalbackground, education and Backgroundlife experiences, stressfulunexpected events, fate Paradigm Chance & Fate Identify and exploitLooking for benefits, opportunitieseffective performance,able to secure resources,overall vision, able to Resource gatheringweigh things up in Paradigm Strategicstrategic way Customer orientatedEnvironment, peers, family,culture, realities, motivation, Sense of achievementdedication, self assurance,self perception, morality, Motivation &responsibility, determinationaccountability, adversity to Paradigm Personalityrisk taking (courage), standon beliefs, level of comfort Adversity to risk takingEnvironment, triggers, Seek & identifyinspiration, lateral & opportunitiesserial thinking,technical skills, ideas,opportunities, solution Innovative Paradigm CreativityfindingHealth, personal energy,focus, time orientation,orientation to getting things In control of thedone, orientation towards business Actiongetting the right things Paradigm Attributes of the Entrepreneurdone Able to inspireSelecting the right people,team/individual orientation, peopleview of outside expertise,networking, interpersonal Ability to workoutlooks, management style, with peopleleadership, Paradigmdominance/submissiveness Networking InterpersonalPositive & negative Experienceexperiences, success &failure, education &skills, soft skills, talents Technical skillsand abilities Skills Paradigm Soft skills Talents & abilities
  • 70. Attribute Small Business Entrepreneurial Business Risk Risk is to be avoided by undertaking a business Ideas and opportunities are always risks. Every activity that is already proven to be village and every person is unique and will successful. Therefore business models will have different ideas that suit them. not be novel. Need to Achieve A small business is totally orientated towards a Financial return may not be the prime motivator. financial return. Individuals and groups may want to produce something they like and have pride in. Creativity An enterprise will fit into a proven model so not The enterprise from the first idea may be driven much creativity is needed. by many types of creativity, and creativity itself may be a source of satisfaction. Flexibility A small business is a business operated through Individuals and groups may be looking for a disciplined routine in most cases. maximum flexibility in an enterprise, so it can fit in with their life, rather than they have to fit in with the small business. Change Small businesses rely on little environmental Change in the environment may suit individuals change for success. and groups as they don’t want to get locked into routine, and change prototes their creativity. Independence Financial independence is the objective. We are already independent and don’t want a business to lock us into a strict routine. Foresight A daily, weekly, monthly or seasonal cycle that We may have to keep coming up with new things is predictable. to keep the enterprise going. Initiative There are very tight resources to have much We rely on initiative to keep going, and all initiative. initiatives are considered.Control of destiny The future is controlled by sales in the The future is in our hands of what we want to be. marketplace. Commitment Total commitment. I want to be committed on my terms. Leadership I am the leader and do all tasks. Leadership is defined by tasks.
  • 71. Peer based Education
  • 72. Market
  • 73. Haram (Those things prohibited by Traceable Allah in the Al Qu’ran) Sustainable HACCPenvironment, community & business Supply GMP Chain Community Benefit ToyyibaanNon-exploitive Ethical Healthy Clean
  • 74. Culture is the Challenge
  • 75. 1. Recognition 2. DesirabilitySelected branding paradigm to highlight the The product technology, i.e., natural,project’s offering and values the group stand organic, cultural and spiritual aspects should for in the international marketplace. (see be reflected incorporated into the product. figure branding typologies). This branding Thus the products require specific newshould show natural (fully natural products) knowledge, process and protocols to achieve Organic, Sustainable production, these ambitions. Community involvement, cultural and Patents, Registered Designs, Proprietary religious identity, and within an ethical Knowledge and branding business framework. Trademarks and certain Copyright Information 3. Form 4. Emotional Connection Product manifestations must reflect where The products should reflect the consumer and why the products exist through copy, ambitions for natural and organic products materials and form. with a cultural and spiritual base and Copyrights and Trademarks understand their direct contribution to the community. Brands and Trademarks
  • 76. Organization
  • 77. K-Development Model Network University Training • Students R&D Funding Through Cluster Initial Grant • Farmers Prospectus • UNDP Umbrella Brand (Direct Marketing Company) •Prospectus • Zakat Entrepre- • VC neurship Application of University R&D Health Graduates Under University Beverages Supervision Nutraceuticals Herbs & Cosmetics • Drive Marketing Others • Product Development Govt. Organic Farming • Business Operations Support Integrated Farming
  • 78. Element Existence Values Most spiritual doctrines and religions have very positive values towards enterprise, independence and empowerment. These have to be brought to the surface of some cultures or sub-cultures, i.e., refocusing on the functional rather than the dysfunctional aspects. Confidence Confidence is a group phenomena and can be improved through engagement of group processes to achieve new ways of seeing. Ideas The skills of ideation can be developed through access to communications technology and developing both partial and whole brain thinking.Potential Opportunities By linking ideas to markets, modes of entry, resources and skill needs, potential opportunities can be constructed. Product Focus on themes rather than marketing mixes, look for ways to incorporate consumer fears, existence, acceptance, hopes and dreams in the product (spiritual materialism) Markets Markets exist in various forms and segmentations with much more fragmentation, coupled with the ability to communicate are potentially accessible to village communities. Identify aspirations of consumers, connect products and channels to these aspirations. Technology Technology is a way of how to make and do things. Product manufacture can be undertaken in scaled down models to suit decentralization, small unit output and flexibility. The focus is on how to do things in more cost effective ways, within the existing cultural socio-organisational setting.
  • 79. Competitive Advantage In many FMCG markets competitive advantage has more to do with theme, schema and branding, through selected channels of distribution, than economies of scale. The product is a fulfiller of dreams. Skills Not all the skills taught at formal educational institutions are needed to start an enterprise. In this regard its only necessary to provide people with what they need from the point of view of business, product development and production. There is a need for the “village university” to focus on showing people how to see, learn how to do and connect to consumers. Agency/Networks Through modern communications technology (internet & travel) it is now possible to contact and interact with very wide groups of people, including agencies of interest, customers, grant agencies and sourcing know-how. Logistics Logistics have advanced in recent years and can be coupled together such as the internet and EMS to create direct logistic systems between producers and consumers. Resources We have to learn to use what we have and utilize these limited resources innovatively. There are many methods of alternative funding that can be explored and set up, i.e., Zakat, unit trusts, closed equity markets, etc. Organisation New forms need to be generated from often discarded forms such as cooperatives. Cooperatives can exist at both production and market levels. People can form their own companies under umbrellas, organizations should be focused on linking the young with their older generation. Coalitions can be sort with larger organizations in developed countries for branding and market purposes. Organisations have to fit with existing social schema and develop from there, as people are ready.
  • 80. The company would act according to the following principals; 1. Commitment to Social Justice in Organic Agriculture 2. Transparency and Accountability 3. Direct and long-term trade relationships built on trust and mutual respect. 4. Equitable distribution of returns to stakeholders 5. Communication and information flow 6. Skills development and capacity building 7. Internal ethics, and 8. Professionals manning the PC, support the local community[i].[i] Principals set out for peoples companies by Dr. Subash Mentha, Bangalore, India, as communicated to the author.
  • 81. Resources & Finance
  • 82. Resources (Infrastructure)
  • 83. Zakat• One of the 5 pillars• Distributive justice (juristic & mandatory)• “zakat revenue can be spent under tamlik mechanism for providing an opportunity or raising productivity of the poor. Viewed from the long term perspective the poor would become in time self- reliant, hense reducing the national burden of spending money on social security schemes.” Khaliq Ahmad 2002 Intellectual Discourse Vol. 8, no. 2 (IIUM)
  • 84. A Roadmap from today Skills (how to make), place to make, Look for Resources finance Determine whether there is a market and how much competition there is.Screen the Idea for opportunity Determine if the product can be made. Decide on what product each group would want to be involved in and match this with an expert person and some Create Ideas students.
  • 85. The set of opportunities for an essential oil producerGeneral Trading Other Aromatic Aromatic Chemical Agro-Tourism Agricultural (marketing) Essential Oil Extract (bio-route) By-Products Region’s production Specialised single oil marketing General multi-oil marketing Mulches Aromatic Chemical (physical route) Bio-fuelCommodity Oil Single Crop Portfolio of Crops Specialty Oil Flavour & Business through select supply chains Cattle feeds Fragrance Builds brand image and support.Aroma Chemical Complements other activities. Aromatherapy & Paper CosmeticProduction &marketing of Pharmaceutical Other diversification products Production of herbs and spices Agro-chemical Higher differentiation and value adding Diversification of activities Utilisation of wastes
  • 86. Opportunities are a product of our mind and these visions can become the design of ourfuture with skilful and creative utilisation ofscattered existing and forgotten resources to create great unimagined synergies. This is the true power of creativity that God has given humankind.
  • 87. Those who believe and work righteous deeds-from them shall We blot out all evil (that may be) in them, and We shall reward them according to the best of their deeds. Al ‘Anabut (29:7)
  • 88. Terima Kasih