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Xianyang, Shaanxi Province, May 15, 2006
—The International Finance Corporation, the private sector arm of the World Bank Group, has signed a three year cooperation agreement with Yantai North Andre Juice Company to implement an Apple Traceability & Farm Management Improvement Linkages Program.
Funded by IFC, North Andre and the IFC Trust Fund of the Germany Ministry of Economy and Labor, the linkages program is designed to strengthen traceability systems and introduce good practice into the company’s supply chain. Known as China Good Agricultural Practice, or ChinaGAP, the new standards will ensure the company is better positioned to meet increasing regulatory and consumer demands. The traceability system will allow the company to better manage quality control and food safety by tracing and mapping the origin of each input to the production process.
“IFC is delighted to expand its partnership with North Andre by jointly launching the Good Agricultural Practice project,” said IFC Executive Vice President, Lars Thunell. “The program provides significant value to hundreds of thousands of apple farmers and will also help North Andre to strengthen its supply chain.”
ChinaGAP certification will also allow farmers to yield higher prices for apples which are sold to the fresh apple market, and not just supplied to North Andre. Moreover, the program will improve farm management practices with regard to farm labor and waste disposal.
“North Andre is keen to tap into IFC’s global knowledge in structuring and managing programs
that link companies with small local producers,” said Wang An, North Andre’s General Manager. “We are pleased to be associated with this program, which will improve the livelihoods of rural farmers.”
This is the first time that a major Chinese apple juice concentrate producer has introduced GAP certification for the supply chain. This Program will help build a model for the industry which is key to China’s development as a global agribusiness player.
About North Andre
With its six processing plants North Andre is one of the leading producers/exporters of Chinese apple juice concentrate. The company exports over 90% of its production to leading multinational food companies based in the US, Japan and EU.
About IFC Linkages Programs
IFC’s linkages programs allow the corporation to increase value added services to its clients in improving their business, and increase the development impact of its investments. Linkages programs are typically two to three year technical assistance programs to strengthen small and medium size enterprises linked to IFC’s investment projects, with regard to either the supply/value chain development of the client, or income/employment generating activities for impacted local communities around the investment project.
The mission of IFC is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications.
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