30 November 2009
The last two years have been tough for food and beverage producer, Gaza Juice Factory (GJF). After more than two years of blockade, the most recent Gaza conflict could easily have been the last straw. However, with support from the DFID co-funded Facility for New Market Development, GJF turned adversity into opportunity.
Since the region’s closure in 2007, food choices for residents had become depressingly scarce.
Previously abundant fresh fish supplies and hot spices had virtually dried up.
Simple staples such as ketchup and chocolate were rare and paying inflated prices for smuggled goods was the only option to bring any colour to mealtimes.
But GJF’s appetite for business remained. With help from the DFID co-funded facility, they seized the chance to squeeze the best from what was available.
Using locally available lemons and tomatoes, they began producing lemon juice and ketchup – two previous Gazan favourites. Within just one month sales increased by 15 per cent.
Over 900 litres of ketchup and 600 litres of lemon juice now roll off GJF’s production lines daily.
Adapting to change
GIF general manager Ayed Abu Ramadan says: “Before the closure, we used to be export-oriented, delivering high quality concentrated citrus juice to Egypt, Israel and the USA. Over 90 per cent of revenues were generated abroad.
Since the closure, however, all export activity was halted. We had a new idea – to adjust our production lines to also make ketchup and preserved lemon juice for kitchen use."
The firm used the Facility for New Market Development (FNMD) grant scheme to help market their new products, along with help on packaging and branding.
“On our own, we could not have pursued our business development plan – we are glad the FNMD agreed to share the risks with us", says Ayed.
Their formal launch came just in time for Ramadan – when families gather in the evenings to celebrate after daytime fasting – and saw posters and brochures posted all over Gaza.
GJF is now supplying restaurants, supermarkets and grocery stores and has won contracts with NGO’s, government departments and associations.
Key facts
- The Facility for New Market Development (FNMD) is a grant making facility supporting individual Palestinian enterprises as well as associated groups of companies that want to diversify their product range and enter new markets.
- This 3-year project is funded by DFID with backing from the World Bank.
- GJF’s sales in the first month of selling these new products were $37,500 – equivalent to a 15 per cent increase month-on-month.
- Sales of the new products have resulted in the firm employing 10 new staff. There are now 28 full-time staff.
