Israeli company looking for J.V in agriculture
Background
For thousands of years, the Beit Shean Valley, running alongside the Jordan River, has been known in Israel's Biblical history for its fertile land and unique climate
Abundant water, its hot climate and fertile soil, make the region ideal for cultivating herbs and spices. Resting for over a millennium, the land in the valley came back to life when an enthusiastic group of youths came to settle and work here in 1939.
In 1987, SDA Spice was established to take advantage of the unique climatic microcosm created by the Mediterranean Sea on the west and the nearby Sea of Galilee. These factors combine perfectly for crops to be harvested most of the year. As the pioneer of organic agriculture in Israel, SDA Spice also supplied an organic line of products from day one.
SDA Spice
The company is recognized as one of the leading world producers of dried herbs and spices. The company developed sophisticated control over the "Production Chain" from "seeding to Leaf" (Dried leaves in a vacuumed sealed box). As a result, the herbs and spices provided are the freshest and of the highest quality.
The Market and Product line
Significant presence in the world's food market with strong foot holds in the North American and the European market.
About 85% of the company's production is exported from Israel.
All the important international standards for the food industry are grunted as well as all the available "Kosher" certifications.
Strategy
The company strategy calls for overseas expansion in order to secure the essential resources of land and water needed. The overseas location should be selected primarily by the agriculture natural conditions.
The ideal nature of such an overseas Joint Venture is in a form of a rural region Agri – industrial project.
Timing
The company is looking to start its first overseas operation as early as 2008.
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The Joint Venture characteristics
SDA is looking for an overseas partner that can provide the "Operational Platform" for the JV based on know-how and technology that will be provided by SDA.
Such a project can be attractive to regional organizations as well as investment enterprises.
The requested capacity of the JV is -.
• Agriculture-
o Suitable climate
o Available agriculture land at the range of 80-100 hectares
o Close to the industrial area (up to 90 minuets drive from the processing plant location).
o Irrigation water
• Industrial-
o Manufacturing infrastructure
o High reliability electricity supply
o Economical distance from air and/or sea ports.
The Business Model
SDA and the local partner will register a local company. The new entity will face two options –
• Acquisition of an existing company in the same business and improve it
• Start a new project.
International sales and marketing will be the sole responsibility of SDA International.
Last edited by Ritika; 11-06-2007 at 12:26 PM.
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