Mini-Cheese Factory Becomes A Model Enterprise
Patara Khanchali is a small, mountainous village in the district of Ninotsminda, Samtskhe-Javakheti region, situated on the bank of Lake Khanchali. Cattle breeding and potato growing comprise the main agricultural activities undertaken by the community residents.
The village's rich dairy production has been under-exploited due to a lack of local processing facilities and the distance to market. In order to work more effectively and use local milk resources to increase income, a group of six local entrepreneurs decided to rehabilitate an old mini-cheese factory in their community. The group, headed by Ararat Esoyan, Pelican Ltd., qualified for Georgia Employment and Infrastructure Initiative (GEII) co-financing through CHF International, supported by USAID.
Working in partnership with GEII for the past two years, the community of Patara Khanchali gained strong experience in taking charge of their local economic development. The implementation of complimentary water system and road/bridge rehabilitation projects, provided the basis for development by providing a direct water supply and facilitating easier travel for trade with nearby communities. This created both the impetus and community understanding of local infrastructure development necessary to undertake enterprise activities.
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Local entrepreneurs decided to rehabilitate an old mini-cheese factory in their Georgian community
Photo Credit: CHF |
Esoyan’s participation in a local economic development study tour to Serbia-Montenegro further stimulated the development of enterprise initiatives in Patara Khancali. “People in Serbia-Montenegro have more finances than us. However, our determination, combined with support from USAID, allowed us to realize our plans for a small, income-generating venture in our community,” he said.
The factory works actively and is expanding each day to benefit local community residents. Cheese is produced from about 800 liters of milk, the majority of which is purchased directly from community residents. Approximately 30 families (28 percent of the population) provide milk to the mini-cheese factory, and the enterprise has stimulated eight long-term jobs. By next summer, the group plans to increase local milk purchasing by 60 percent in order to bring more income directly to community residents.
Thanks to the strong name recognition of Javakheti cheese, the majority of production is sold outside of the Javakheti Region at a greater profit than cheese which is locally sold. In its first year of operations, the enterprise already attracted regular clients. Cheese has been exported to Greece as well.
“We do not have problems selling the products we produce. We have already sold about seven tons and now we plan to increase the variety of our products. We started with 200 liters of milk supplied by our group members. By next summer we plan to increase that amount up to 1300 liters—and produce smoked cheese as well,” explained Esoyan.
Building upon its strong start, Pelikan, Ltd. is already investing in the longer-term future of their enterprise. The group received assistance from Akhalkalaki Business Center to develop a plan for enterprise expansion and has recently secured commitment from the USAID-funded micro finance institution Credo for an $800 loan.
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