Indian Potato Processing Industry

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The Indian potato processing industry-Global comparison and business prospects Article in Outlook on agriculture · September 2011 DOI: 10.5367/oa.2011.0057

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The Indian potatoprocessing industry Global comparison and business prospects Rajesh K. Rana Abstract: India is the world’s third largest potato-producing nation, although its potato-processing industry is still in its infancy. Per capita potato processing in India during 2007–08 was just 365 g (89.69% potato chips, or ‘crisps’, 9.28% potato powder/flakes and 1.03% French fries), using 1.475 kg potatoes per capita. This performance compares poorly with that of the leading potato-processing nations such as the UK, the USA, Canada, France and Germany. However, the industry is experiencing rapid growth in India, and multinational corporations (MNCs), such as PepsiCo, McCain and ITC, now have a conspicuous presence. This paper provides detailed analysis of the consumption patterns of the processed product in India relative to the world picture. The strengths, weaknesses and business opportunities of this industry are also discussed. Keywords: potato processing; global comparisons; business opportunities; India Rajesh K. Rana is a Senior Scientist at the Central Potato Research Institute, Shimla 171001, HP, India. E-mail: [email protected].

The potato is the world’s fourth most important food crop after rice, wheat and maize. India is the third largest potato producer (24.61 million tonnes [mt] during the triennium ending in 2006–07)1 after China (71.09 mt) and Russia (37.55 mt). Domestic potato research and development have been responsible for higher average potato productivity in India than in China, Russia or Ukraine (the country with the third largest potato area). India produced 7.72% of the world’s potatoes from 7.57% of the total global potato area and with a higher than world average potato productivity. Potato processing is a very important component of agro-processing in India. Rapid urbanization and improvements in living standards have led to phenomenal growth in potato processing in recent years (Chengappa, 2004; Rana et al, 2004; Pandey and Sarkar, 2005; Pandey et al, 2006; Rana et al, 2008, 2009a and 2009b). Easy availability and convenient packaging are among the other reasons for the popularity of processed potato products, even in the far-flung rural areas of India. In addition to established potato processors such as Frito Lay India,2 Haldiram, McCain Foods India,3 Golden Fries and Balaji Wafers, new players, including ITC,4 Gee Pee Foods, Merino Industries Ltd, Satnam Agri Industries,

Little Bee Impex and Vimal Oil & Foods Ltd have also entered the arena (Rana and Pandey, 2007). Small and regional players have a very high collective share in Indian potato processing. The raw material requirement for manufacturing potato products during 2007–08 and 2010–11 is estimated at 6.8% and 10.9% respectively of the national potato production during 2006–07.

Potato utilization patterns About 68.5% (16.9 mt) of the potato output, equivalent to 14.9 kg per capita,5 goes to domestic ‘table’ consumption – that is, largely as the unprocessed vegetable (Rana, 2009). As the majority of the country’s geographical area lies under the tropics and sub-tropics, the post-harvest losses due to high temperatures are quite large, at 12.5%. More than one-eighth of potato production is retained as seed for the next year ’s crop. About 7% of the national potato production was used by the processing industry during 2007–08. Out of the country’s per capita annual potato production of about 21.5 kg, the consumption of processed quality potatoes was only 1.5 kg. In India potatoes are not generally fed to animals.

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The Indian potato-processing industry

Potato processing The potato-processing industry in India can be split into the organized and unorganized sectors. The organized sector is under the control of the large manufacturers, operating to corporate standards and enjoying a wide presence, while the unorganized sector comprises small manufacturers with lesser-known or no brand names, producing for local markets. French fries, Alu Bhujia and potato flakes/flour are manufactured in the organized sector, while potato chips are made by both categories of manufacturers. Dehydrated potato products such as potato chips, potato shreds and other products using potatoes as full or partial content are generally manufactured as a cottage industry or on a home scale within the unorganized sector. Alu Bhujia is a fine, fried, salty, crispy and short noodle-shaped snack, with only 35% of the product in the form of potato flakes/powder. About 60% of potato processing in India takes place in the unorganized sector (Rana and Pandey, 2007), which is growing at the same rate as the organized sector. Surveys have been carried out to assess the market share and consumption pattern of different processed potato products manufactured by the unorganized sector (Jame et al, 2001; Rani and Ezekiel, 2001; Das and Ezekiel, 2001; Verma et al, 2001; Kumar et al, 2002), and have shown that potato chips were the most common product manufactured. Although some quality and packaging concerns were found, the products were affordable by, and available to the economically weaker sections of society. The per capita consumption of potato products in India was 365 g in the year 2007–08 and is expected to be 562 g in 2010–11 (Rana and Pandey, 2007). This per capita annual consumption compares very poorly with the leading potato-processing nations – the UK (45.6 kg), the USA (37.0 kg), Canada (35.8 kg), France (34.2 kg) and Germany (30.4 kg) (see Table 1). Current Indian potato products are potato chips or ‘crisps’ as they are known in some countries (89.69%), potato powder/flakes (9.28%) and French fries (1.03%). Worldwide during 2006, pre-fries had the highest share of the potato product market (64.68%), followed by potato chips (14.43%), potato powder/flakes (14.19%) and other potato products (6.70%). The quantity of potato tubers used for processing in 2006

was highest in the USA (12.64 mt), followed by the Netherlands (3.12 mt), Germany (3.05 mt), Canada (2.75 mt) and Belgium (2.18 mt), against India’s 1.68 mt in 2007– 08. With these amounts, the quantity of potato used for processing in the USA was 4.84 mt, followed by the Netherlands (1.66 mt), Canada (1.41 mt) and Belgium (1.15 mt) (Keijbets, 2008; Van Eijck, 2009). In India, the figure was 0.42 mt during 2007–08 (Rana and Pandey, 2007).

Potato chips Over the last two decades, potato chip manufacturing companies such as Frito Lay India have put considerable effort into the popularization of this product in India. This has led to fast incremental growth in potato chip manufacturing capacities. The production of potato chips in India was estimated to be 0.38 mt in 2006–07 and was expected to increase to 0.59 mt in 2010–11 (Rana and Pandey, 2007). Indian figures for 2006 compare well with production levels of leading countries like the USA (0.76 mt) and the UK (0.18 mt) (Table 2). The requirement for processing quality potatoes for potato chips in the USA during 2006 was 3.04 mt, compared with an Indian requirement of 1.51 mt during 2007–08. However, the per capita annual consumption of potato chips in India (0.33 kg in 2007–08) is much lower than in the USA (7.30 kg in 2006). In the UK the annual potato chip consumption per capita stood at 12.3 kg, in Canada at 11.2 kg, in France at 5.2 kg and in Germany at 4.6 kg, all of which are very much higher than in India (Keijbets, 2008). MNCs are very important players in Indian potato chip manufacturing. Frito Lay India and ITC retained a 29.98% share of the potato chip market during 2005–06. This proportion increased to 30.83% in 2007–08 and was further expected to reach 31.55% during 2010–11 (Rana and Pandey, 2007). Although MNCs have increased their production, their market share has been restricted by the increased competition from existing and new domestic players who are showing encouraging growth.

French fries French fries are a comparatively new potato product for Indian markets. The Indian subsidiary of the world’s largest French fries company, McCain, is doing much to

Table 1. Potato processing details for India compared to other countries (all products). Country/region (thousand t) USA (2006) Canada (2006) Netherlands (2006) Germany (2006) Belgium (2006) UK (2006) France (2006) China (2006–07) Indiaa (2007–08) World (2006)

12,640 2,750 3,115 3,047 2,184 1,822 1,215 5,250 1,682 43,000

Raw material % to productionb 64.12 54.02 49.92 30.38 84.23 31.81 19.12 7.46 6.83 13.65

Product (thousand t) 4,838 1,410 1,660 991 1,148 772 592 782 416 16,500

Per capita annual (kg) Processed Fresh 37.0 35.8 NA 30.4 17.4 45.6 34.2 0.602 0.365 2.75

19.1 29.8 NA NA 36.8 48.8 NA 15.6 14.8 28.4c

Notes: NA = not available; aIncludes manually produced potato chips in the unorganized sector; bBased on FAO production data for 2006, except for India – data for 2007–08 (DES, 2009); cAssuming 15% animal feed (Scott et al, 2000), 8% seed (Scott et al, 2000), 14% processing (Keijbets, 2008), 9% other uses (Scott et al, 2000), and 54% fresh (residual stock) as the world’s potato consumption. Sources: Keijbets, 2008; Sanchez et al, 2007; Wenxiu et al, 2004; Dongyu et al, 2004; Rana and Pandey, 2007.

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Table 2. Potato processing details for India compared to other countries (potato chips).

Table 3. Potato processing details of India compared to other countries (pre-fries).

Country/region

Country/region

USA (2006) Canada (2006) Germany (2006) UK (2006) France (2006) China (2006–07) India (2007–08) a

Raw material (thousand t) 3,040 NA 380 702 74 232 1,508

Product (thousand t) 760 NA 95 175 36 58 377

Per capita annual (kg) 7.3 11.2 4.6 12.3 5.2 0.04 0.331

Notes: NA = not available; aIncludes manually produced potato chips in the unorganized sector, which are not included in the case of China and other countries. Sources: Keijbets, 2008; Sanchez et al, 2007; Wenxiu et al, 2004; Dongyu et al, 2004; Rana and Pandey, 2007.

popularize the product. McCain India established a frozen potato product factory near Mehsana (Gujarat) during 2006 with an annual capacity of 40,000 t. With this development, the annual French fries manufacturing capacity in India has reached 54,600 t. McCain Foods India, which had an 86.21% share in the frozen potato products market in India during 2007–08, is expected to have a 94.94% market share during 2010–11 (Rana and Pandey, 2007). The rapid gain in McCain’s market share is in part a reflection of the dismal performance of domestic processors in this field. However, the consumption of potatoes for manufacturing this product was near 0.6% of average potato production during the three years ending in 2006–07 (Rana and Pandey, 2007). The main reasons for the low utilization by French fries plants are the limited outlets serving the product and its high price. Utilization of French fries production capacity in India during 2006–07 was just 14.28%. As additional new capacity is not expected to be on stream in the near future, the capacity utilization during 2010–11 is expected to be 39%. The retail prices of French fries in India are quite high. The price of 15–20 individual fries in the usual outlets is US$0.63–1.25. Shortage and the high cost of cold chain storage are the most important determinants of the high retail price. The number of MNC quick service restaurants (QSRs) serving pre-frozen French fries and other frozen potato products in India is increasing rapidly. At present, McDonald’s and Kentucky Fried Chicken have 170 and 70 outlets respectively. Some domestic chains of restaurants also serve French fries. These QSRs are increasing at an annual compound growth rate (ACGR) of 40%, reflecting the equally fast growth in the demand for frozen potato products, including French fries. The contribution of French fries to world potato processing in 2006 was 64.68%; however, this share in India was just 1.03%. The USA used 6.99 mt potatoes in the French fries industry during 2006, followed by Canada (2.60 mt), the Netherlands (2.46 mt), Belgium (1.67 mt) and the UK (1.11 mt) (Table 3). In India, this quantity was just 0.02 mt during 2007–08. In the USA, French fries production in 2006 amounted to 3.68 mt, followed by Canada (1.41 mt) and the Netherlands (1.29 mt). In India, the quantity was 7,795 t during 2007–08, with a forecast

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USA (2006) Canada (2006) Netherlands (2006) Germany (2006) Belgium (2006) UK (2006) France (2006) China (2006–07) India (2007–08)

Raw material (thousand t) 6,990 2,600 2,461 865 1,668 1,105 792 222 17.4

Product (thousand t) 3,678 1,410 1,294 455 834 582 447 113 7.8

Per capita annual (kg) 23.9 13.0 16.0 10.5 14.4 29.1 18.0 0.09 0.007

Sources: Keijbets, 2008; Sanchez et al, 2007; Wenxiu et al, 2004; Dongyu et al, 2004; Rana and Pandey, 2007.

for 2010–11 of 21,332 t. Per capita annual consumption of French fries in 2006 was 29.1 kg in the UK, followed by 23.9 kg in the USA, 18 kg in France and 16 kg in the Netherlands (Keijbets, 2008), compared with 7 g in India (Rana and Pandey, 2007).

Potato flakes/flour As far as potato flakes/flour are concerned, Potato King has been the leading player, followed by Merino Industries Ltd. However, Merino Industries Ltd is performing better with regard to quality and value addition by providing world-class ready-to-use products and product mixtures. Satnam Agri is another significant player in this segment of potato processing. But many new, smaller players are constantly entering this market sector. The potato flakes/powder industry in India consumed more than 0.6% of the 24.61 mt (average potato production of the three years ending 2006–07) in 2006–07. This figure is expected to be greater than 1% in 2010–11. The capacity utilization in this area of potato processing is expected to increase to nearly 33% during 2010–11 from just 20% in 2007–08, if we assume no new additional capacity. The country had 156,000 t of annual potato flakes/powder manufacturing capacity in 2007–08. MNCs do not manufacture potato flakes/powder in India. Per capita consumption of this product in the country in 2007–08 was just 27 g, which is expected to increase to 43 g during 2010–11. However, in countries like Germany the annual consumption of dehydrated potato products in

Table 4. Potato processing details for India compared with other countries (dehydrated products). Country/region USA (2006) Germany (2006) France (2006) China (2006–07) India (2007–08)

Raw material (thousand t) 2,480 1,302 215 185 156

Product (thousand t) 400 210 47 36 31

Per capita annual (kg) 5.4 15.7 6.1 0.028 0.027

Sources: Keijbets, 2008; Sanchez et al, 2007; Wenxiu et al, 2004; Dongyu et al, 2004; Rana and Pandey, 2007.

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Table 5. Potato processing details for India compared with other countries (starch). Country/region

Raw material (thousand t)

EU-27 (2005) China (2006–07) India (2007–08)

8,000+ 4,610 Nil

Product (thousand t) 1,100 575 Nil

Per capita annual (kg) NA 0.42 NA

Note: NA = not available. Sources: Keijbets, 2008; Sanchez et al, 2007; Wenxiu et al, 2004; Dongyu et al, 2004; and Rana and Pandey, 2007.

2006 was 15.7 kg, followed by France (6.1 kg) and the USA (5.4 kg) (Table 4). The total quantity of dehydrated potato products manufactured in the USA and Germany in 2006 was 400,000 and 210,000 t respectively, compared with 31,000 t for India’s production of flakes/powder in 2007– 08. The quantities of potatoes fed into this industry in the USA and Germany were 2.48 and 1.3 mt respectively, compared with 0.16 mt in India.

Potato starch The potato starch manufacturing industry is almost nonexistent in India, as no starch manufacturing takes place in the organized sector (Rana and Pandey, 2007). Ezekiel and Shekhawat (2002) and Kaur and Ghuman (2003) have emphasized the need for and potential of potato manufacturing in India. However, in a survey of starch importers in Mumbai by this author in March 2006, it was found that imported potato starch from Europe and China was too cheap to allow an Indian starch industry to become established. The situation has not changed. However, imported coarse starch is refined in the country and reexported to different countries. Refining starch is a profitable business. The value of potato can be increased by 30% by processing it into coarse starch with conventional methods, though this value can be increased threefold if the potato starch is processed with lactic acid using state-of-the-art technologies; eight times if it is modified into water-absorbent resin; nearly 20 times if processed into cyclodextrin; or even 30 times if processed into fine chemical products (Wenxiu et al, 2004). The European Union and China are the most important potato starch manufacturers (Table 5).

Strengths Among the key strengths of the Indian potato-processing industry are (a) the availability of indigenous potatoprocessing varieties best suited to the local and varied agro-climatic conditions for round-the-year supply of processing-quality potatoes, and (b) the rapid adoption by farmers of the industry’s latest trends and practices, such as contract farming, crop insurance and international cultivation standards (such as Eurepgap) (Rana, 2009).

Indigenous processing varieties India, so far, has 47 indigenous potato varieties, nine of which are either processing varieties or suitable for processing.6 The potato varieties released up to 1997 generally had low tuber dry matter (18–19%) and high

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reducing sugars (above 250 mg/100 g tuber weight), and therefore were not suitable for processing. Only three of the table-purpose varieties – Kufri Chandramukhi, Kufri Jyoti and Kufri Lauvkar – were found to be suitable for the chipping industry. Singh et al (2003a, 2003b) found Indian processing varieties of potato highly suitable for processing and better than exotic varieties in many attributes.

Suitability of producing areas Just as every potato variety is not suitable for processing, nor is every area suitable for producing processingquality potato. On the basis of the mean temperature of 30 years for various places, areas have been divided into three categories – least suitable, suitable and most suitable for producing processing-quality potatoes (Ezekiel et al, 1999, 2007). Most parts of Jammu Kashmir, Himachal Pradesh, Uttar Pradesh, Madhya Pradesh, Gujarat and the North Eastern hill states were found to be suitable, while the entire plateau region, most of the North Eastern plains and parts of Rajasthan, Orissa and Madhya Pradesh are most suitable for producing processing-quality potatoes. Overall, many states across the diverse agro-climatic regions allow the production of processing-quality potatoes in all seasons.

Contract farming and other risk management techniques Contract farming has been an important component of the business model for major potato processors in India (Chakravarty and Pandey, 2005). The concept is steadily gaining popularity, as farmers are increasingly realizing that contract farming can reduce the risk associated with excessive price volatility of farm products. Contract farming is a common practice for the potato crop, mainly for seed and processing-quality potato production. Frito Lay is the largest company involved in potato contract farming, having an immense presence in Punjab, West Bengal, Maharashtra and Karnataka states. The company also has potato contract farming operations in more or less all major states producing processing-quality potatoes. Besides Frito Lay (chips), ITC (chips), McCain Foods India (French fries and other frozen products), Haldiram (chips), Balaji Wafers (chips), Merino Industries Ltd (potato flakes and other dehydrated products), Technico (formerly Chambal Agritech, a seed-potato company) and Satnam Agri Industries (French fries and potato flakes) are also involved in the contract farming of potatoes in various states. Besides contract farming, increasing numbers of potato farmers are adopting other risk management techniques, such as crop insurance and futures trading.

Micro-irrigation Many potato farmers, particularly in Gujarat, have adopted drip and sprinkler irrigation techniques. Although sprinkler irrigation has not been very successful because of an associated increase in late blight infestation, drip irrigation has been a particular success among potato farmers. The unpublished results of a survey conducted by the author during February 2009 indicate about a 30% yield increase after drip irrigation in Gujarat. The late blight infestation on drip-

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irrigated farms was below 5%, against 40% on the furrow-irrigated ones. Drip irrigation led to 1–2% more dry matter, better distribution of dry matter, less greening of tubers and remarkable improvement in the appearance of potato tubers, with the result that the production on drip-irrigated farms yielded a 25% higher price in the market. 2009 was a severe late blight year, and the overall gross returns per unit area on drip-irrigated farms was nearly 100% higher than on the furrow-irrigated farms.

Cheap labour Farm labour is very cheap in India. In 2009 a Gujarat female labourer was paid slightly less than one US dollar a day for potato cultivation operations, while her male counterpart received a maximum of US$1.5 a day. Even in states such as Punjab, where farm labour is costliest, a woman labourer earned daily wages of around US$1.5 and a man US$2.1 a day for potato cultivation activities. Cheap labour offers an excellent opportunity to produce cheaper potatoes in the country.

Favourable location for exports India is a suitable location for exporting processed potato products like French fries and potato flakes to the Middle East, Mauritius, the Maldives, Sri Lanka, Malaysia, Singapore, etc (Khurana and Rana, 2004).

Weaknesses Traditional food habits A very large proportion of the population in India still thinks that processed food is unhealthy and a source of ailments. However, with the increasing number of working women, higher disposable income and a Western influence on young Indians, the number of potato product eaters is increasing very rapidly.

under short day conditions during mid-October and midMarch. Crop duration under these conditions is less than 110 days: hence the requirement for producing French fries greater than five inches in length is constrained.

Business opportunities Domestic demand The annual compound growth rates of demand for potato chips, Alu Bhujia and French fries in India were estimated to be of the order of 30%, 50% and 30% respectively (Rana et al, 2009b). The target of growing just 10 kg per capita of potatoes per year for processing – that is, 2.5 kg per capita of potato products – creates a growth opportunity of 578%. The current annual consumption of potato tubers for processing in the country is 1.475 kg per capita – that is, 365 g of product per capita.

Idle potato-processing plants Encouraged by the high business potential, many entrepreneurs have entered the potato-processing business. However, due to their lack of experience in the field, a poor understanding of business dynamics and a loss of focus on the business, many state-of-the-art potato processing facilities in India are lying idle. This situation is much more common in relation to French fries and potato flakes/powder manufacturing. Taking into consideration that developed nations are gradually reducing potato farming, it is very likely that in the future processed potato products will be sourced from developing nations. Plants are lying idle just because of a shortage of demand and they could provide lucrative business opportunities via take-over or contract manufacturing under buy-back arrangements. MNCs have successfully taken over7 potato-processing businesses in the past.

Demand of non-resident Indians

The cost of land transportation of goods in India is high. Currently, Indian railways have a very low priority for potato transportation. However, substantial planned expenditure on dedicated rail freight corridors and express highways across the country is likely to bring a permanent solution to this problem.

Millions of Indians now reside in various countries worldwide but retain a strong desire for traditional Indian snacks. Currently, Haldiram Foods is unable to meet the export demand for Alu Bhujia for non-resident Indians. PepsiCo developed Kurkure, a new product with a typical Indian taste: it is now a great success and has been launched worldwide. There are countless other possibilities in this area of business.

Costly cold chain

Export of potato products versus potatoes

In tropical countries, the unit cost of cold chain facilities is many times that in temperate zones, and the shortage of these facilities in India makes the service still costlier. However, with the anticipated focus on road infrastructure and increasing economies of scale, one can expect much cheaper and more easily available cold chain facilities in the near future.

At present India exports a sizeable quantity of processingquality potato to Mauritius and Middle Eastern countries. Instead of exporting processing-quality potatoes, the export of frozen products and potato flakes/powder to these and other nearby countries would make much better business sense.

Small operational holdings

Indian companies and entrepreneurs have limited or no experience of running cold chain operations, so this will be an important business area in the coming future. Crop insurance is another area which is new to Indian companies. The government is providing much support to make crop insurance available to the maximum number of farmers. Some Indian companies and MNCs have started

High transportation cost

Except for the state of Punjab, the potato farmers’ holdings in India are small. This creates problems in contract farming and with farm advisory operations and services.

Short days About 90% of potato production in India takes place

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Miscellaneous opportunities

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to provide integrated solutions for whole farm needs and problems, and this area would seem to have great business potential.

Acknowledgments Some of the contents of this paper were poster-presented at the 15th Triennial Symposium of the International Society for Tropical Root Crops, jointly organized by CIP and ISTRC in Lima, Peru, on 2–6 November 2009. Nothing from the paper was published in proceedings or in any other form by the conference organizers.

Notes 1

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Averages for the three-year period ending in 2007–08 were not used for calculations, as potato production in India during 2007–08 was abnormally high at 28.47 mt (DES, 2009). Frito Lay (PepsiCo) followed by McCain Foods India Ltd and ITC are important MNCs working in the field of potato processing. Frito Lay, a world leader in potato chip manufacturing and selling, is well established in India. Frito Lay India operates three plants at full capacity in Channo (the district of Sangarur in Punjab), Sankarail (the district of Howara in West Bengal) and Pune (Maharashtra). Frito Lay India’s plants have an annual processing capacity of 30,000 to 40,000 t. The company is seeking a location for its fourth plant. McCain, another world leader in frozen potato products in general and French fries in particular, is not only a leading player in India, but enjoys the status of near monopoly in this business in India. The company’s 40,000 t annual capacity plant near Mehsana (Gujarat) runs at full capacity, and McCain is searching for a suitable location for its second plant. ITC is a comparatively new entrant in the field of potato processing. The company has two potato chip manufacturing plants in India – one at Haridwar (Uttarakhand) and a second at Pune (Maharashtra). It successfully gained a sizeable market share (11%) in a very short period of time after launching its products. The projected population of India (source: www.censusindia. gov.in) was 1,114.20 million in 2007. Kufri Jyoti, K. Lauvkar and K. Chadramukhi were the Indian ‘table’ potato varieties found suitable for processing. K. Chipsona-1, K. Chipsona-2, K. Chipsona-3, K. Surya, K. Himsona and K. Frysona are the Indian processing varieties of potato. In addition to these Indian varieties, McCain Foods India Ltd and PepsiCo are undertaking contract farming of exotic potato varieties. Shepody, Kennebec, Santana and Innovator are varieties especially favoured by McCain, while PepsiCo prefers Atlantic, Frito Lay collections and Lady Rosseta among the exotic potato varieties. Uncle Chips, the earliest known potato chip company in India, was taken over by Frito Lay India Ltd. Among other important takeovers, Chambal Agritech is now part of Technico, an important seed potato production and marketing company in India now under the control of ITC and an important seed potato supplier for the contract farming operations of the company.

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