Bhutan Agro

IN THE SERVICE OF BHUTANESE FARMER

Bhutan Agro Industries Limited (BAIL) is a fruit & vegetable processing company in the Himalayan Kingdom of Bhutan. It was established in 1993 with the financial and technical assistance of the Danish International Development Agency (DANIDA). BAIL is located at Wangchutaba, 12km from the capital city of Thimphu. BAIL was set up to help uplift the Bhutanese rural economy by creating opportunities for farmers to earn additional income. The company achieves this objective by buying off surplus horticulture produces of the farmers, which is also the main source of the company’s raw materials.

BAIL is a state-owned company and governed by a board of directors, headed by a Chief Executive Officer (CEO)

100%

domestically sourced raw materials by 2030

300

Happy Employees

27

years of experience

3

loyal customers in 3 Countries

BHUTAN AGRO INDUSTRIES LTD

Bhutan Agro Industries Limited (BAIL) was established in 1993 to promote the Bhutanese rural economy by providing a ready market for local farm products. BAIL, Headquarter is located in Wangchutaba which is 12km away from the capital city of Thimphu Considering the similarities in the social mandates of the company to that of the Royal initiatives in enhancing rural livelihood, the management of BAIL was placed under the Queen’s Project Office in 2015 and subsequently the ownership of the company was transferred from the Ministry of Finance to the Queen’s Project Office, His Majesty’s Secretariat. 

In addition to the existing processing plant in Wangchutaba in Thimphu, a subsidiary processing plant was established in Lingmethang, Mongar, during 2019 to help enhance the income and livelihood of the farmers in eastern Bhutan. The main products of BAIL are; Juice of Orange, Mango, Pineapple, Passionfruit etc. and squash of orange, pineapple, lime, etc. Besides these products, pickles and jam. Marmalade and bottled water are processed and marketed by BAIL.

BAIL is governed by the Board of Directors, headed by a Chief Executive Officer (CEO). The company is registered under the Companies Act of the Kingdom of Bhutan with the principal line of business as fruit processing which later diversified into the water bottling business in 1999. All current products are marketed under the brand “Royal Bhutan”. Since its inception, the company has strived to promote the Bhutanese rural economy by providing a ready market for the local’s agriculture and horticulture products.

OUR VISION AND MISSION

Vision

To be a premier manufacturer of quality agro processed products using locally available raw material, thereby enhancing farmer’s livelihood.

Mission

1. Manufacture quality agro processed products using locally available agricultural and horticultural produces

2. Ensure ready market to agricultural produce of Bhutanese farmers thereby enhancing their livelihood

3. Function sustainably as a social enterprise.

4. Center of excellence in terms of innovation, technology, operations and talent

Core Values

BAIL’s Core values are captured in the acronyms EPIC:
1. Excellence:
The passion to excel in every aspect of the business be it governance, management or operation.

2. Partnership:
with the belief that collective effort leads to collective success, all stakeholder including employees, customer and most importantly farmers will be at the company’s core.

3. Innovation:
The sprit and enthusiasm to continuously seek for ideas and solutions that adds value to customer experience

4. Core:
The passion to provide high quality product with professional end to end service to achieve customer’s expectation and enrich customer experience.

BAIL FACTS

Markets

Besides the domestic market, BAIL products are sold in India and Bangladesh. The company’s distribution agents are based in Kolkata, India, and Dhaka, Bangladesh. Bhutan, however, is the company’s main market. Today, the company is exploring markets in South East Asia.

Market
Quality Control
Contract Farming

Quality Control

The company believes in ‘Total Quality Management and production of Safe, wholesome and Healthy Food’ at par with any quality-conscious food manufacturing companies in the world.

From the quality of raw material (fruits and vegetables are handpicked using traditional harvesting methods to maintain the quality of fruits) to the final output, BAIL enforces the most stringent international benchmarked quality control. Physical, sensory, and microbial quality checks are frequently administered for raw materials, ingredients, production processes, water quality, and packaging materials.

A dedicated team of food technologists works in the laboratory to carry out chemical tests and analyses for various products.

To meet and conform to the stringent international requirements on the Standard Food Safety System, the company was awarded the HACCP certificate on June 14, 2007, and subsequently awarded the ISO 22000: 2005 certificate on June 11, 2015.Today we have upgraded to ISO
22000:2018.

The company holds a valid environmental clearance certificate issued by the National Environmental Commission, Royal Government of Bhutan in December 2016.

Contract Farming

Contract Farming: To encourage Bhutanese farmers to use their agricultural output in the most efficient manner, the company introduced contract farming in western Bhutan. Its main aim is to spread the benefits of the industry to the farmers and facilitate better linkage between farmers and BAIL. This arrangement assures an effective and adequate supply of quality raw materials to the industry and steady income and market to farmers.

To further strengthen the social mandate of the company, a separate department called Farmers’ Support Department was created. The department is headed by a General Manager.

The department has the mandate to improve the livelihood of the farmers by encouraging them to grow high-value cash crops and thereby meet the raw material requirements of the company, both in terms of quantity and variety.

Initially, BAIL started contract farming for high-value cash crops covering an area of 311 acres and involving about 400 farmers. Under the contract, farmers were provided interest-free loans in kind such as planting materials, fencing materials repayable after five years. The loan is adjusted from the crops sold to the factory.

BAIL also provided free extension facilities – from ground preparing to harvest methods, for instance, to contract farmers. Today, the farmer’s support department has taken over this mandate to impart technical know-how to the farmers.

The buy-backs are streamlined to assure farmers of the potential markets for their products.