Developing Natural Products and New Value Chains in Kelantan while

Maintaining Cultural Integrity: What, How and for Whom

Mohd. Murray Hunter University Malaysia Perlis (UniMAP)

Keynote address to the Conference on Natural Products: Integrating Traditional Practices & Technology Advancement for Creating Business Opportunities, 21-22nd

November, Grand River View Hotel, Kota Bahru, Kelantan, Malaysia

“On one hand, rural development starts with people and their education, organization, and discipline. Without these

three, all resources remain latent, untapped potential”

E.F. Schumacher 1975, P. 168.

The importance of Kelantanese Culture

Agricultural Activities

Rubber

Palm Oil

Paddy

Fruit Production

Vegetable Production

Other Crops

Agro-Industry

Agro-Tourism

Handicraft

Fishing

Industry

Other Activities

Logging

Biotechnology

Service

Construction

Education

Transport

Product Space Map of Kelantan

ISSUES AND PROBLEMS ENCOUNTERED IN NEW CROP DEVELOPMENT

Focus Paradigm

Requires focus on concept of product where present focus is on cultivation

This requires research This requires entrepreneurship approach Concepts not understood by farmers

Basic Research

Needs access to worldwide data Requires availability of suitable germ-plasmas Requires basic R&D to determine whether crop

technically suitable Requires basic R&D to determine if potential crop is

economically feasible

ISSUES AND PROBLEMS ENCOUNTERED IN NEW CROP DEVELOPMENT

Crop Management & Processing

Propagation technologies How to plant, cultivate & manage to crop How to harvest, extract, store and handle How to process How to package Transportation and storage

Marketing Infrastructure

Require coordination of production with demand Require correct channels of distribution Requires a marketing strategy

Economies and Logistics

Requires enough volume to economically transport and distribute

Requires solution to inconsistencies of quality and production

ISSUES AND PROBLEMS ENCOUNTERED IN NEW CROP DEVELOPMENT

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 & promotion

Partly modified from Kee, T. B., Monoculture in Malaysia: Impacts, Potential Solutions, paper presented to Monocultures: Environmental and Social Effects and Sustainable Alternatives Conference, Songkhla, Thailand, 2-6 June, 1996.

The path to development of natural products

in Kelantan

Raw Herbs

Fresh Consumption Dried Fermented

Extracts

Medicinal Powders

Medicinal Beverages

Essential Oils & Other Volatiles

Flavour & Fragrance

Personal Care & Cosmetics

Standardised Extracts

Phytopharmaceutical Products

Fractions & Isolates

Bioactive Compounds

Prescription & OTC Drugs

Figure 1: The Family Tree of Herb Derivatives

Agricultural Application

Traditional Herbal Medicines

Aromatherapy

Enzymes

TRADITIONAL HERBAL MEDICINE

HomeopathyTraditional Chinese Medicine

Siddha

Ayurveda

Unani

TRADITIONAL MALAY MEDINE

http://media2.my.88db.com/my_UploadFiles/2009/12/28/13BC1C64-DB1A-4F79-AE28-400EBA13B9E4.jpg

Natural plant Extracts

Berberine

Quaternary Ammonium Compound

Fungal infections Diabetes mellitus Intestinal disorders

Represses tumor growth Antidepressant

Berberis vulgaris

Coptis chinensis

Extraction & Preparation

Essential Oils

Tea TreeAustralia

Wild Collection & Distillation

Small Holder (Patchouli Indonesia)

Medium Size Plantation

Bridgestow Tasmania

Processed Food

Beverages

Fine Fragrance

Aromatherapy

Cosmetics & Personal Care

Household Products

Pharmaceuticals

Organic Agro-Chemicals

Existing Thai Organic Products

Essential Oil Based Fungicides/Insecticides

Control

Timorex 0.5 %

Nimgard + Kocide

Timorex 1 %

New Foreign Products

Five foliar sprays at 7-d intervals

0

1

2

3

4

5

6

7

Dise

ase

ratin

g (

1-1

0 )

Control Neemgard 1% Timorex 0.5% Timorex 1%

Treatment

a

b

b

b

Powdery Mildew in Sage

Field results Sage

0

5

10

15

20

25

30

35

40

45

50

Perc

ent i

nfec

ted

leav

es

Contol Timorex 0.25% Timorex 0.5% Timorex 1% Nimgard+Kocide

Treatment

a

c

c

bc

b

Five foliar sprays at 7-day intervals

Powdery Mildew in Parsley

Field Results Parsley

Prophylactic activity grape downy mildew Adelaide, Au.

0

5

10

15

20

25

30

35

Control Timorex 0.5% Copper 0.5%

Treatment

Perce

nt inf

ected

leaf

area

Plants were infected 2 days after spraying Disease was rated 14 days after inoculation

Percent infected clusters

Treatment

48.8 a Control

0.5 b Timorex 0.5%

0.0 b Timorex 1%

0.0 b Tebuconazole 0.02%

grape PM- Carignan

4 foliar sprays at 14-d intervals

Field Results GrapesTreatment & Prophylactic

0

10

20

30

40

50

60

70

Control Timor 0.5% Heliosulfur 0.5%

Treatment

Per

cen

t in

fect

ed c

lust

ers

1st Rating 1.7.03

2nd Rating 15.7.03

grape PM- Chardonnay 2003

Field Results Grapes

0

10

20

30

40

50

60

70

Control Timorex 1% Kocide 0.25%

Treatment

Per

cen

t in

fect

ed le

aves

Control of grape DM- 2003

5 foliar sprays at 7-d intervals

Powdery Mildew by Timor

Timor 0.5% Control

Enzymes & Cosmetics

Introduction

Common Enzymes, Potential Sources and Other Potential Applications

Enzyme Potential Sources Potential Applications Ascorbic acid oxidase

Citrus fruits, leaf vegetables, cucumbers

Fruit preservation, cleaning applications

Beta-amylase Grains, sweet potatoes, taro, cassava

Yeast production

Bromelains Pineapples Fertilisers, pseudo hormones, cleaning, cosmetics, personal care, mouthwashes, skin healing, anti-acne, anti-microbial

Catalase Animal wastes, milk wastes Cosmetic, anti-ageing, oxidising Chlorophyllase Some leaf vegetables UV absorption Elastase Animal intestines Cosmetics, anti-aging Glucoxidase Some mushrooms, mould, other

fungi Anti-oxidant

Papain Papaya Fertilisers, wound and skin healing, mouthwashes, other cosmetics, dishwashing, all purpose cleaning

Natural Based Enzyme Products

Natural Enzyme Based Products

Organic Herbicides

Product Reported Results*

Control O

Round Up Pro[i]

10

All-Down Organic[ii]

Range 0.5 – 3.8

[i] Registered Trademark of Monsanto.[ii] http://alldownherbicide.com/

Before

After

Pharmaceuticals: Artemisia annuaA source of artemisinin for treatment of malaria

World Shortage

Straight forward cultivation

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.

The Stages Involved in the Development of a Pharmaceutical Product

Screening Process for New Natural Products

Screening

• Require Knowledge of Essential Oil Applications

• Require knowledge of International Market• Require Knowledge of International

Regulations• Need to Collaborate with Industry Parties

Screening Protocols

• Anti inflammatory• Anti microbial• Skin whitening• UV absorbing• Anti age actives• Flavour & fragrance application• Aromatherapy

Regulatory Screening

• United States - GRAS (Genarally Regarded as Safe)• RIFM – Collections of Monographs• Food and Drug Administration• Europe – REACH, BPD, SCP

Ranking Criteria 1. Potential Returns 2. Production Costs 3. Capital Investment 4. Crop Suitability 5. Risk 6. Time Frame of Opportunity 7. Level of Difficulty to enter Market 8. Personal Bias

The novelty of a new essential oil

The potential uses & applications of the new essential oil

The closeness of any substitutes

The stability of the essential oil in applications

The cost/performance ratio

The Toxicity

The general consistency of quality and supply

The prevailing market/product trends

The current level of technology

Low Novelty High Novelty

Low Potential High Potential

Close Substitutes

No Close Substitutes

Poor Stability Good Stability

Poor Ratio Good Ratio

High Toxicity Low Toxicity

Low Consistency

High Consistency

Low Trend Match

High Trend Match

High likelihood of

synthesis

Low Likelihood of

Synthesis

A B D C

A Grid showing the characteristics of a new essential oil

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.

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.

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.

Evaluation Criteria

• The Stability of the New essential Oil• Stability as an essential oil and stability in end

products.

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

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

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

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.

Evaluation Criteria

• The Current Level of Technology• Technology influences substitutes that are

available and the costs of production.

Ava

ilabi

lity

Incr

ease

s

Usefulness Increases

Media Reports

Ideas

Data

Information

Knowledge

Wisdom

The Continuum from media reports to wisdom in relation to availability and usefulness

Genetic Material

Habitat & Topography Suitability

Soil Type, Texture & Drainage Suitability

Temperature Range Suitability

Rainfall Suitability

Access to Irrigation

Diurnal Radiation

Crop Maintenance Cycle

Pest, Disease & Weed Control Issues

Easily Available

Need to Develop

Very Suitable Not Suitable or Need to Develop

Very Suitable Not Suitable

Very Suitable Out of Range

Very Suitable Deficient or Excessive

Yes No

Very Suitable Out of Range

Common & Generic

Require Specialized Processes

Common & Generic

Require Specialized Processes

Harvest & Extraction Processes

Common & Generic

Require Specialized Processes

The Agronomic Characteristics Required for the New Essential Oil

Technology Required

Level of Mechanization Required

Research & Development Time-frame

Capital Requirements

Crop Cycle Timeframe

(Additional) Infrastructure Required

Regulatory Issues

Skills, Competencies & Capabilities Required

Networks, Market, Potential Competitors, etc.

Low & Generic

High & Specialized

Low and/or Generic

High and/or specialized

Short & straight forward

Long & Complex

Low High

Short Long

Low High

Low Need of Consideration

High Need of Consideration

Common & Generic

Rare & Specialized

Available Networks, Wide Market & high

competition

Need Network, Specialized

Market, Few Competitors

Potential Revenue High Low

The Project Characteristics.

Competencies Required During the Essential Oil Development Process

Screening & Bio-prospecting

Propagation & domestication or

introduction

Planting, cultivation & maintenance

Harvesting, Extraction and

wastage handling

New product development &

creation of value added products &

activities

Strategic, operations, finance and technical

management

Product & venture management

Marketing & commercialisation

Sustaining and growing the enterprise

(adapting & survival)

Output: Result/Performance, Sustainable and healthy enterprise or

a struggling and failing enterprise

Opportunity and technical competencies require:

Botany, ethno-botany, research ability, chemistry, bio-chemistry, analytical

chemistry. Market and specific technical product knowledge

Technical Competencies require: Plant physiology, micro-propagation, nursery

management, agronomics

Technical competencies require:

Bio-system engineering, Soil management,

entomology, plant nutrition, Agronomics, field

management, irrigation engineering

Technical competencies require:

Thermodynamics and plant physiology, heat transfer, distillation engineering,

chemistry, chemical engineering, agricultural

engineering, environmental engineering (waste

management)

Strategic, opportunity and technical

competencies require: Project management,

marketing management, chemistry, cosmetic

chemistry, perfumery/ flavour knowledge,

Packaging & design, manufacturing

engineering

Strategic, organizational, relationship opportunity competencies require:

Business strategic, industry knowledge, industry

networks, ability to raise finance, ability to plan,

implement & adjust, leadership, entrepreneurial

Strategic and organizational

competencies require: Administrative, financial management, technical management, strategic

management, personnel management, resources

management, entreprenuerial

A Simple Competency Audit Example (Hunter 2009, P. 299).Competency Present Not

PresentComments

Technical 1. Botany2. Plant Physiology3. Chemistry/Analytical4. Micro-propagation5. Nursery Management6. Environmental Engineering7. Chemical engineering/thermodynamics/etc8. Soil Management9. Agronomy/plant nutrition/field

management10. Entomology11. Irrigation engineering12. Agricultural Engineering13. Regulation knowledge14. Cosmetic chemistry/food etc15. Perfume/flavours16. Packaging & design17. Consumer product manufacturing

Basic

BasicExperienceExperienceExperience

BasicBasicBasic

LowLowLowLowLowLowLowLowLow

Need guidanceNeed assistanceNeed guidance Assistance AvailableCan design Need appraisalUse contractorUse instituteReplicated experimentsWith EnvironmentUse contractorCan developNeed assistanceLearn from experienceUse contractor

Competency Present Not Present

Comments

Opportunity/Entrepreneurial/Commitment1. Able to screen environment for opportunities2. Able to evaluate opportunities3. Commitment level

YesYes

Passionate

Need to see realistically

Relationship1. Have relationships in target industries2. Have relationships in research area3. Have relationships in finance industry

A fewA fewSome

Organising/Management1. Able to project manage2. Able to administrate3. Able to financially manage operation4. Able to undertake research5. Able to keep key people motivated

YesYesYesYesYes

Strategic1. Understand dynamics of market and industry

environment2. Able to plan for a business within this environment3. Able to implement, evaluate and adjust plans in this

environment

YesYesYes

Believe so but not tested

THE ROAD TO ACHIEVEMENT

The Farm Family Family & Farm History, Current farm Operation, Current Family Status.

Strategic Business Analysis

Land Labour Capital

Business Goals

Family Values

The Vision “Mission Statement”

Family Goals

Self Assessment

Decision Making Skills Knowledge

Competencies

Personal Goals

Business Competencies

Knowledge

Production & Operations

Marketing

Personnel

Financial

Risk Management

Horizontal and

vertical expansion

Aspirations

Self view

Income needs

Time Horizon

View of retirement

Opportunity cost of doing

other activities

Passion

Family Considerations

Generational

evolution

Grooming successors

Family aspirations

Lifestyle

Attachment

Land & Estate

Valuing the

estate

Liquidity needs

Tax planning

Alternative land use applications

Multi-

use/business

Investment Plan

Time horizon

Investment

options

Risk management

Tax planning

Opportunity cost of doing

other activities

Exit barriers

$ Cost

$ Return

Deg

ree

of P

roce

ssin

g

Final Product Form

Selection of Crop

Trials

Propagation

Land Preparation

Planting, Maintenance &

Irrigation

Harvesting & Extraction

Product Development

Final Product

Crop & Project Failure

No Return

Com

post &

Mulch

Biofuel

Anim

al Feed

Crude E

ssential Oil

Organic A

gro-product

Cosm

etic &

Arom

atherapy

Nutriceutical

Pharm

aceutical

Conceptual Value Added Processing Options with Revenue and Cost

Implications

Consumers

Wholesalers & retailers

Manufacturers

Flavour & Fragrance Houses

Traders & Brokers

Primary Producer

Essential oil as primary Product. Focus on market demand & supply

and meeting standard

Essential oil as an ingredient in

a product. Focus on uses

and applications research

Manufacture of end products. Focus on

formulation and end product

development

Technical Focus

General or Niche Customers

Vertica

l Integ

ratio

n A

lon

g th

e Su

pp

ly

Ch

ain

Application Focus

Technology Focus

IP Focus (?) Specific

Customer

Branding Theme Consumer

Marketing Reaching

Mass or selected Markets

New Product Development

Agro Industrial Consumer Orientation Orientation Orientation

Consumer Trends

Important

Technical Trends

Important

Demand & Supply, Buying

Criteria Important

Venture Focus Along Different Parts of the Supply Chain

Natural Product Development Process (Aromatic)

Biological Screening

Screening For Development Potential

Regulatory Screening

Market Development Environmental

Analysis

Evaluation of Capabilites

Market Analysis

Technical Development

Commercialis -ation Strategies

Development Process

Screening Process

An Existing Crop – Product Already Traded

This can be seen as an improvement on existing production or setting up new production in an area

already producing the crop. Improving cultivation and harvesting methods

to improve productivity Finding new customers and channels to

increase sales

An Existing Crop – Leading to a New Product

This may involve moving along the value chain to a new market based on an essential oil already produced or producing an essential

oil for some type of value added product. Improving cultivation and harvesting methods to improve

productivity Finding out what products potential customers want in a new

product Producing a new product according to identified consumer

needs Organising the supply chain for the new product to get to

market Making the product available to more consumers who are

likely to want it

A New Crop to a New Geographic AreaThis involves producing an essential oil already in

trade in a new geographical area. Establishing the most efficient way to

cultivate, harvest and process the natural product

Matching the newly produced natural product with customer expectations and requirements

Organising the supply chain so the natural product reaches the market

Making the natural product available to new customers who are likely to require it

A New Crop and New ProductThis involves producing a product higher up the value chain,

differentiating it and producing the natural product. Making informed decisions about new crop choices Establishing the most efficient way to cultivate,

harvest and process the natural product Finding out from potential customers what they want

from the new product Making sure the oil meets the customer’s needs as

closely as possible Organising the supply chain so the natural product

reaches the market

The Natural Product Strategic Matrix

Systems Agriculture Agricultural professional stance that emphasizes

farming as a social practice that uses technology

Participatory Action

Research Emphasis on co-learning

through farmer and community participatory

research and empowerment programs

Traditional Academic Based Research

Based on developing technology and principals,

models and possible practices

Farming Systems Research

On-farm technical problem diagnosis and adaptive

research

Shift from theoretical and

technical to community

collaboration and problem specific

research

General Local

Technical

Social

Domain Focus

Dis

cipline O

rienta

tion

A typology of Various Farming Research Management Concepts

A Redeployment of Technology

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 certain

extent 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.

Tissue Culture

Microwave Oven Pressure Cooker

Chemicals & Spoons, etc. Glassware

• Minimise Production scale to account for initial low sales/production quantities and lower capital investment

• Mobile GMP Facility

• Simplified Technology

Culture

Leadership

Theories in action verses Espoused

Norms and group behaviour Organisational

learning (single or double looped

Productivity &

effectiveness

Stories, myths, heroes, artifacts, informal behaviours

We need to move from here…

To Here …

Negative Attributes

Positive Attributes

Destruction

Growth

The Cultural Dialectic

Modifying your emotional balance to become more effective, break through psychological blocks and become generally more positive.

Negative Emotions

Positive Emotions

Develop positive emotions until they dominate feeling

& thinkingReduce negative emotions until they don’t exist

within your feelings and

thinking

Fearful Awkward

Anxious Intimidated Tense Panic Scared

Confused Overwhelmed Apprehensive

Shocked Confused

Blurred

Confident Courage

Passionate Energetic

Determined Challenged Competitive

Focused

Develop Self-esteem, confidence and motivation

Courage

Passionate

intimidated

Determined

Energetic

Overwhelmed

Anxious

Challenging

The different sets of emotions will heavily

influence performance.

Awkward

Passionate

Tense

Confident

Shy

Scared

Excited

Confused

“Big-headed”

Overwhelmed

Different weight and balance of emotions may produce different behaviour & performance

Cultural Paradigm

Pee

r g

rou

ps m

en

tors

, s

oc

iety

Chance & Fate

Paradigm Personality Paradigm

Strategic Paradigm

Creativity Paradigm

Action Paradigm

Interpersonal Paradigm

Skills Paradigm

Infl

ue

nce o

n o

the

r p

ara

dig

ms

Co

mm

itm

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nd

eth

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So

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Ed

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Ide

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Res

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ath

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Cu

sto

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Sen

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Mo

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dete

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Ad

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See

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id

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o

pp

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un

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Inn

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In c

on

tro

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sp

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Ab

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Netw

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Exp

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Tec

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So

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kil

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Tale

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itie

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He

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pe

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nd

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Attributes of the Entrepreneur

Attribute Small Business Entrepreneurial Business

Risk Risk is to be avoided by undertaking a business activity that is already proven to be successful. Therefore business models will not be novel.

Ideas and opportunities are always risks. Every village and every person is unique and will have different ideas that suit them.

Need to Achieve A small business is totally orientated towards a financial return.

Financial return may not be the prime motivator. 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 much creativity is needed.

The enterprise from the first idea may be driven by many types of creativity, and creativity itself may be a source of satisfaction.

Flexibility A small business is a business operated through a disciplined routine in most cases.

Individuals and groups may be looking for 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 for success.

Change in the environment may suit individuals 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 is predictable.

We may have to keep coming up with new things to keep the enterprise going.

Initiative There are very tight resources to have much initiative.

We rely on initiative to keep going, and all initiatives are considered.

Control of destiny The future is controlled by sales in the marketplace.

The future is in our hands of what we want to be.

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.

Peer based Education

Market

Branding

Haram (Those things prohibited by

Allah in the Al Qu’ran)

HACCP

GMP

Sustainable environment, community

& business

Community Benefit

Toyyibaan

Clean Healthy

Non-exploitive

Traceable

Supply Chain

Ethical

Culture is the Challenge

Culture is a brand

1. Recognition 2. Desirability

Selected branding paradigm to highlight the project’s offering and values the group stand

for in the international marketplace. (see figure branding typologies). This branding

should show natural (fully natural products)Organic, Sustainable production,

Community involvement, cultural and religious identity, and within an ethical

business framework.Trademarks and certain Copyright

Information

The product technology, i.e., natural, organic, cultural and spiritual aspects should

be reflected incorporated into the product. Thus the products require specific new

knowledge, process and protocols to achieve these ambitions.

Patents, Registered Designs, Proprietary Knowledge and branding

3. Form 4. Emotional Connection

Product manifestations must reflect where and why the products exist through copy,

materials and form.Copyrights and Trademarks

The products should reflect the consumer ambitions for natural and organic products

with a cultural and spiritual base and understand their direct contribution to the

community.Brands and Trademarks

Synergized IP & Branding

Organization

K-Development Model Network

Umbrella Brand (Direct Marketing Company)

Health Beverages

Herbs & Cosmetics

Nutraceuticals

Others

Funding Through

Prospectus

Integrated Farming

Organic Farming

R&D Cluster

Entrepre-neurship

Govt. Support

Graduates Under University Supervision

• Drive Marketing

• Product Development

• Business Operations

University Training

• Students

• Farmers

Application of University R&D

Initial Grant

• UNDP

• Prospectus

• Zakat

• VC

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.

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.

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 stakeholders5. Communication and information flow 6. Skills development and capacity building 7. Internal ethics, and8. 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.

Resources & Finance

Resources (Infrastructure)

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)

The conclusion is the beginning

A Roadmap from today

Create Ideas

Decide on what product each group would want to be involved in and match

this with an expert person and some students.

Screen the Idea for opportunity

Determine whether there is a market and how much competition there is.

Determine if the product can be made.

Look for ResourcesSkills (how to make), place to make,

finance

Essential Oil

Other Aromatic Extract

Aromatic Chemical (bio-route)

Aromatic Chemical (physical route)

Agro-Tourism Agricultural By-Products

The set of opportunities for an essential oil producer

Flavour & Fragrance

Commodity Oil

Specialty Oil

Aroma Chemical

Aromatherapy & Cosmetic

Production & marketing of

products Pharmaceutical

Agro-chemical

Business through select supply chains

Single Crop Portfolio of Crops

Higher differentiation and value adding

Builds brand image and support. Complements other activities.

General Trading (marketing)

Region’s production Specialised single oil

marketing General multi-oil

marketing

Diversification of activities

Mulches

Bio-fuel

Cattle feeds

Paper

Utilisation of wastes

Production of herbs and spices

Other diversification

Opportunities are a product of our mind and these visions can become the design of our

future with skilful and creative utilisation of scattered existing and forgotten resources to

create great unimagined synergies. This is the true power of creativity that God has

given humankind.

Al ‘Anabut (29:7)

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.

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