Being established in 1981, Rancrisp has come a long way since its humble beginnings. Today Rancrisp cashew is one of the leading cashew exporters to a well established export market .At present the company exports products to Singapore, Malaysia, the Maldives,Canada, Australia, UK, New Zealand, UAE countries, and African countries such as Ghana .
In an interview with Daily News Business Rancrisp Managing Director Samantha Thamel says the company has turned market needs to a completely different and good path and implemented new trends in a big way.
Excerpts:
Q: Could you tell me about the Rancrisp journey? What’s the progress that Rancrisp has made since its inception?
Rancrisp is a family business founded in 1981 by my father Eden Thamel. At any time our substantial product was cashew nuts in both bulk and value addition form. From the beginning it was a well organized business, having a small factory with minor equipment. My father was an innovative man who got a VRS from his government services and started the business. Our first customers in 1981 were high end markets such as Cargills, Miller’s, Cornel’s, Colombo Apothecaries and Anglo Asian Supermarkets. At that time we had a small export to Maldives and we mainly supplied to cashew exporting companies as an indirect exporter.
Q: Where do you market your products ?
Currently we export our products to Malay, Singapore, Malaysia, Canada, Australia, UK, New Zealand, UAE countries, and African countries such as Ghana. We export our range of products; cashew nuts, cassava chips, potato chips, taro chips, jack chips; to the above countries. We would like to mention that these products are being produced in the countries we export to as well, but the uniqueness of our products and the specialty of our value addition is stronger than their local products.
Q: What were the initial challenges you faced when exporting products ?
When we came to the export market during the beginning of our business, unlike today, it was very difficult to get in contact with buyers and also to get appropriate data necessary for the company. To meet the requirements of foreign buyers, especially in value added products, the company had to be upgraded to an exceptional state. Of course we have unique agricultural products in our island, but compared to the world market prices coming from other countries, like Vietnam, India and many African countries we had a big problem matching their prices in the bulk market. Even now we’re facing the same problem. We realised this problem at the initial stage and made a strategic plan to export value added products made for the final consumer. It was a hard challenge at that time to match their taste, quality and packing as well. But we overcame all these challenges, and started value added products to other countries
Q: How did the Sri Lanka Export Development Board support your business when it comes to identifying potential overseas buyers?
When identifying potential buyers, I should mention that credit goes to the export development board. They’ve supported us to take our products to international markets through foreign food exhibitions. They bear all our costs sometimes including the air ticket fare as well.
Q: How has COVID- 19 affected your business?
Globally and locally people have overcome pandemics like this several times. Examples; Ebola virus, First World War, Second World War, civil war in 1971, 1987-1989 situation and 30 years of war in the north. All these pandemics affect businesses, only the way in which the pandemics come varies. For the last 40 years our business also had a few hard times due to these pandemics, but we never gave up. Just like those times, during the present pandemic also we worked under the rules and regulations that were applied. Our products actually did not have a drop in their demand, because most of the supermarkets, local and foreign, have listed our products as essentials. But of course we had a lot of difficulties due to restrictions and the sudden increase of freight charges as we cannot gain the full amount for freight charges through the customer.
Q: Do you see growth in terms of sales in the local market ?
Yes of course we have a very good demand in the local market; we cater to the local market as well. Local market is very important, as all our products are of international standards and we use good ingredients to produce good products for our consumers and it’s essential that our local market gets a taste of Rancrisp’s international standard food products. From this, our people get a chance to enjoy our local products of international standards and also, we can minimize imported products and save the foreign currency in our country.
Q: Globally and locally what factors do you think have contributed to the growth of this industry?
The demand for agricultural products might increase but never decrease. I believe in the near future people will switch to agri based food and beverages, and we should be prepared to cater to this demand therefore we must focus on the growth of agricultural products. By saying this, using harmful chemicals and unnatural ways such as GMOs is definitely not recommended, we should use good agricultural practices (GMP) and organic ways to increase agricultural production.
Q: Could you give us an overview of the global market for value added cashew products ?
As I mentioned earlier we are producing some of the best agricultural products in the world, even our tuna gets 2 more dollars in the international market. All the other agricultural products are very unique and one of the best qualities in the world. But our cashew nut prices are not competitive in the world market. The difference between the other value added cashews and Sri Lankan cashews are 3-4 dollars. I think what we have to do is, start cultivation of cashew and increase our total harvest and bring the international competition down by 2 dollars. By this we can export more and earn more foreign currency to the country. We are also proud to say that we have turned the local market’s needs to a completely different and good path and implemented new trends. For examples; we’re the pioneers of burnt cashew, potato chips and ISO certified local cassava chips of high standard.
Q: Any advice to aspiring exporters ?
First we have to have knowledge about Sri Lanka’s geographical position, it’s rainfalls and droughts, how it affects the agricultural crops and peoples’ thinking.
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