Application form

1. Company name
Farming cooperative Podgrmec Novi Grad
2. Registered Company Number
4402492570007
3. Type of Company
BiH Cooperative
4. Company address
Mala Krupska Rujiska Street , number 15, 79220 Novi Grad
5. Region
Banja Luka
6. Region Sweden

7. Country
Bosnia and Herzegovina
8. Company website

9. If the business is already operating, in one sentence, what does your

company do?
The Farming Cooperative Podgrmec, located in Novi Grad, together with its
members from the rural areas belonging to municipalities of Novi Grad, Prijedor,
Krupa na Uni and Bosanska Krupa, deals with cultivation and sale of fresh medicinal
and aromatic plants (MAP), acquiring high-quality production materials, as well as
with providing its members with all-encompassing professional advisory services.
10. Industry
Agriculture
11. When was the business registered?
In the year 2006

12. Is the business a micro or small company according to the definition

below? (Micro/Small)
Micro
13. Number of full-time employees (>30 hours/week)*
1
14. Number of part-time employees
5
15.Turnover in EUR (Last financial year)
0-5 000
16. Export proportion of sales (as % of last financial year turnover)
0
17.Name of lead contact/project manager*
Bojan Tepavac
18.Mobile
0038765421765
19. Email
bojantepavac88@yahoo.com
20. Describe the project that you are seeking funding for. (Max 150 words)
The Farming cooperative Podrgrmec, together with its members, would like to
start a production of medicinal and aromatic plants (MAP) on 12 hectares (30 acres)
of land in the rural areas belonging to the municipalities of Novi Grad, Prijedor,
Krupa na Uni and Bosanska Krupa. One half of the production will follow the
principles of organic production, thus providing, through this project, at least 20
producers with a possibility to certify their organic production according to the
internationally recognised quality standards. Acquiring the proper drying and
processing equipment (2 dryers, a machine for separating leaves from stalks and a
machine for cutting dried up leaves) will increase the rate of MAP finalisation which
will result in increasing the value of our products. A solid partnership, which was
established by our leading partner on this project, the Agency for cooperation,
education and development ACED from Banja Luka, with We Effect/The Swedish
Cooperative Centre which is connected to more than a hundred different
cooperatives and concerns, will be used to find purchasers from abroad and to
ensure that our finalised products intended for export are sold.

21. Can the project proposal/business idea be implemented within a 12

month period?
Yes
22. Tweetable pitch (Max 140 characters)
Intact nature, favourable climate conditions, vast land capacities and diligent people
are only some of the reasons for initiating medicinal and aromatic plants production
in the natural environment of our rural areas. The wide variety of our products
comprises different sorts of fresh MAP like basil, mint, balm, marigold, thyme, etc.
Our high-quality, medically tested products represent valuable raw material for
making high-quality final products (teas, essential oils, cosmetic products, etc.)
intended for final consumers. Under close supervision of our employees, agricultural
engineers, the entire production process is done on our members parcels according
to modern technological methods of MAP cultivation. We have envisioned for our
enterprise to become a reliable source of employment and an impetus for boosting
the income of the largest possible number of agricultural producers that come from
the rural areas of the northwest part of Bosnia and Herzegovina.
23. Online video pitch, please put the URL here
24. What is the problem you are solving? (Max 100 words)
Even though allotments are ideal for cultivating medicinal and aromatic plants
(MAP), due to the lack of expertise and high investment costs, farmers in Bosnia and
Herzegovina rarely opt for this type of production. Numerous producers abide by the
rules of organic production (not using mineral fertilisers, pesticides, etc.), however,
if they want to sell their products with a declaration of organic and to have an
income, they need to be certified by an accredited certification body. Due to the fact
they do not possess proper equipment, the MAP producers are unable to process
their own products and because of low finalisation rate are left without much
valuable income. The demand for MAP in the developed European countries
increases annually which causes the producers to miss out on a tremendous
opportunity to export these products.
25. What is your solution to the problem? (Max 100 words)
The Farming Cooperative Podgrmec, together with its members, would like to start
a conventional and organic production of medicinal and aromatic plants in the rural
areas belonging to the municipalities of Novi Grad, Prijedor, Krupa na Uni and
Bosanska Krupa on 12 hectares (30 acres) of land. At least 20 Cooperative members
will begin the process of certifying the organic production and will initiate the
production of MAP on 6 hectares (15 acres) of land. Furthermore, at least 20

members of the Cooperative will initiate a conventional production of MAP on 6

hectares (15 acres) of land. All producers will be instructed by experts, over the
course of 6 training sessions concerning the cultivation of MAP. Moreover, certain
producers will be given the production material in order for them to start the
production. Through acquiring the driers, a machine for separating leaves from
stalks and a machine for cutting dried up leaves the finalisation rate will increase,
as well as the value of the products. The dried up and processed quantities of MAP
will be intended for the foreign market.
26. What will the impact be and what will be the results after 12-month?
(Max 100 words)
The positive effects of this project will have an impact on: increasing the income of
agricultural farms, increasing the employment of the rural population, increasing
the production rate of MAP and its export, a greater use of arable land, increase in
farmers knowledge on modern MAP production. The results that will be achieved
through this project are the following: having MAP production on 12 hectares (30
acres) of land; at least 10 producers certified by an accredited certification body, in
relation to the organic MAP production; the equipment for MAP processing (the
driers, a machine for separating leaves from stalks and a machine for cutting dried
up leaves) - obtained, installed and put into operation; a greater knowledge on the
modern MAP cultivation for at least 40 producers; an increase in products value
through using the proper equipment; an increased export of agricultural products
from Bosnia and Herzegovina through selling MAP on foreign markets.
27. Why are you seeking founding for this project? (Max 50 words)
In order to increase the production and export of MAP and, in addition, to increase
employment rate and income of the rural population, it is necessary to fulfil
numerous conditions like employing standardisation, obtaining equipment, meeting
foreign market requirements, acquiring the knowledge on the production
technology, etc. For these reasons, for this business enterprise, the Farming
Cooperative Podgrmec expresses a need to, besides its proper funding, provide
other sources of funding along with its various partners and donors.
28. Who will you be selling your product/service to? (Max 100 words)
Medicinal and aromatic plants will be sold to consumers outside Bosnia and
Herzegovina, i.e. all the products are to be exported to the foreign markets. The
European countries market is rather developed, and there is a high demand for
different kinds of MAP. Agency for cooperation, education and development ACED,
as our leading partner on this project, will be ensuring that the products are
distributed on the foreign market. Namely, ACED is currently in the process of
implementing a project called We Effect Civil Society and Rural Development in BiH

 CiSaRD which is financed by We Effect/The Swedish Cooperative Centre. This

Centre has more than a hundred different cooperatives and concerns, among which
are those that deal with buying off and selling MAP. According to that, ACED intends
to use the existing project and a solid partnership established with We Effect/The
Swedish Cooperative Centre to find a purchaser who would sell MAP on the foreign
market.
29. Marketing What will be your message to users and customers and
how do you plan to spread that message? (100 words)
The message we will send out for the purpose of attracting as many purchasers as
possible will be based on offering healthy high-quality MAP, obtained from
producers coming from the rural areas of Bosnia and Herzegovina, cultivated in
accordance with a sustainable production system, consequently spurring
biodiversity as well as a responsible utilisation and preservation of the natural
resources. Our message will spread even more in cooperation with We Effect/The
Swedish Cooperative Centre which has more than a hundred different cooperatives
and concerns as its members and maintains a close cooperation with ACED, our
leading partner on this project.
30. Sales and Distribution How will you reach customers/users? Via which
channels? What is your target market? (Max 100 words)
The Farming cooperative Podgrmec plans to reach the suitable purchasers for its
products by offering high-quality MAP. After the primary production is done and the
drying is completed, as well as the final processing stage during which the value of
our products will augment, finished products will be sold abroad. The process of
market surveying and finding purchasers for our products will be managed via We
Effect/The Swedish Cooperative Centre which has more than a hundred different
cooperatives and concerns as its members. The target market for our products will
be the cooperatives and firms in Sweden dealing with buying off, packaging and
selling MAP to the final consumers.
31. Which organizations compete with your value offering now, and who
might do so in the future? (Max 100 words)
Organisations which can be regarded as competition, and at same time are a part of
MAP sector in Bosnia and Herzegovina are Prirodno bilje Ltd. from Banja Luka,
Plantago Banja Luka, ABC Mahic from Bosanska Krupa, Celikovic Biha and
Mladegs pak from Prnjavor. Out of the organisations listed, only Prirodno bilje
deals with producing raw materials and with partial processing, while the other
firms are solely into processing MAP and producing finished products (teas, spices,
cosmetics, etc.) and they spend all their raw materials on domestic products and
cannot be considered as direct competition.

32. What are your primary advantages relative to existing or potential

competitors? (Max 100 words)
Our advantages as compared to the above mentioned potential competitors are
reflected in the following:
- A strong support by ACED as our leading partner which has gained trust of
the foreign international organisations which support the market-oriented
agriculture (USAID/Sida FARMA, WE EFFECT, etc.);
- Available raw material base and trust the members of the cooperative put in
us;
- Experience in drawing up and implementing the development projects;
- Professional and young personnel backed up with knowledge and experience
of the senior team members;
- Being foreign-market oriented;
33. How does/will your company make money? (Max 100 words)
The Farming Cooperative Podgrmec in cooperation with its members located in
the municipalities of Novi Grad, Prijedor, Krupa na Uni, Bosanska Otoka deals with
cultivation of different sorts of fresh medicinal and aromatic plants. Immediately
after the production fresh medicinal and aromatic plants are distributed to different
people who process it for us and who, by proper drying and processing, augment
the value of our products and consequently achieve considerably higher prices on
the market. With this project, the Cooperative will, besides the raw materials,
expand its production and through acquiring proper equipment for drying and
processing increase the quality and value of its products, that will contribute to
accomplishing better results in the financial domain in the future.
34. Do you have any current or anticipated advisors and/or investors?
(Max 100 words)
The Farming Cooperative Podgrmec has established a strong cooperation with
Agency for cooperation, education and development ACED, from Banja Luka,
which possesses many years of experience in project management. Through various
domestic and international projects, ACED has been giving expert, technical and
material support to the Cooperative for many years now, and in 2012 it started to
support, through its activities, the medicinal and aromatic plants production. Close
cooperation between ACED and Farming Cooperative Podgrmec will be continued
in this project, as well. The staff working in ACED intends to provide expert
assistance during the education of farmers in the area of organic production of MAP
and to make use of its solid partnership with We Effect/The Swedish Cooperative
Centre in order to find a market for the entire quantity of medicinal and aromatic
plants produced.
35. Who are the team members who will implement the project? What is
their educational/professional background? (Max 250 words)

People who will make up the implementation team are: Petar Ninic, Bojan Tepavac,
Rajko Culic and Bojan Cikic. Petar Ninic, Bojan Cikic and Bojan Tepavac are
Engineers of Agriculture and they will work on planning, organising and managing
the MAP production. The aforementioned team members were the best students
over the course of their studies at the Faculty of Agriculture at the University in
Banja Luka and they have been showing their knowledge in practice for several
years now. Petar Ninic is in charge of MAP production in the northwest of Bosnia and
Herzegovina for second year in a row, and setting up the organisational structures
in the local communities which conduct and improve the implemented model of
operating on the spot. Bojan Cikic is a young expert working on jobs related to the
cost-effectiveness of the production and processing of MAP, market surveying and
marketing. Bojan Tepavac is in charge of jobs related to the direct implementation
of production on the ground, where, together with Mr Ninic runs an allencompassing advisory service for MAP producers. Mr Rajko Culic is an experienced
farmer, working in agricultural and fruit-growing sector, and of late in the MAP
sector, as well. His qualities are reflected in his long practical experience in
organising and dealing with different agricultural branches.
36. Why are you and your team members the optimal team to lead this
project? (Max 250 words)
The previously suggested members of the project team are a good choice for the
following reasons:
Petar Ninic, Bojan Cikic and Bojan Tepavac are young experts from the field of
agriculture and rural development, who made a decision to dedicate their
professional life to improving rural areas and agriculture. Therefore, the farmers in
the aforementioned areas are encouraged to engage in agricultural production
because they have capable young experts along their side who provide them with
valuable information in due time.
Mr Culic is a man with valuable experience and practical knowledge in the field of
agricultural production, who besides his knowledge and experience possesses
reputation built for years and trust given to him by the local producers. Mr Culic was
one of the pioneers of intensive fruit production in the municipality of Novi Grad and
one of the initiators of the Farming Cooperative Podgrmec.
37. Have you, your team or the firm, in the past two years, participated in
or been selected to, any programs, courses, events, received grants,
funding or support, for this or other projects? (Max 100 words)
In the last two years, the managing team and Cooperative members have
participated in numerous activities of different projects financed by international
donors and implemented by our partner, ACED. The project that stand out are:

Training for Improvement of Business Skills of Agricultural Producers and Processors,

funded by USAID/Sida project; Training of agricultural associations and cooperatives
on business and marketing planning, export strategy development and product
standardization, funded by We Effect/Swedish Cooperative Centre; MAP (Medicinal
and Aromatic Plants) Cultivation School for Women in Bosnia and Herzegovina,
funded by USAID/Sida project; Support to creation of women entrepreneurship in
rural areas through MAP cultivation and processing, funded by USAID/Sida project.
In all projects mentioned the Cooperative was backed up on strengthening its
capacities through education, both in theory and practice, consulting and direct help
in product materials and equipment.
38. Budget (Don't forget to add the Budget excel file in the end of the
form! It is mandatory!)
In attachment
39. Have you read and understood the application criteria?
Yes
40. Is there anything else you would like to tell us? (Max 150 words)
The Farming Cooperative Podgrmec would like to invest in the agricultural
production which represents one of the key economic sectors which can ensure
progress and development of Bosnia and Herzegovinas economy. This project will
provide support for 40 users, members of Cooperative coming from rural areas of
municipalities of Novi Grad, Prijedor, Krupa na Uni and Bosanska Krupa. Apart from
education, the Cooperative members, most of which are unemployed, will be given
the support in the form of high-quality production materials and the opportunity to
certify the organic production according to the internationally recognised standards.
Moreover, through the higher rate of production finalisation, the rise in value of our
products will ensue which will make possible for the Farming Cooperative
Podgrmec to position itself better on the market. Since the disposable agricultural
resources will be used and that an income will be provided for the unemployed
population and the rise in products value will be achieved, which will, in a
cooperation with our partners, ACED Banja Luka and We Effect from Sweden, be
sold on the foreign market, we believe that this project is completely in accordance
with the Challenge Program goals.
41. Are you reapplying?
No
42. What did you change from your last application that would make us
select you this time?