Sinai integrated chain project for freezing and drying of herbs Note: This project has been terminated by RVO, in response to the request of the applicant.Egypt produces herbs for herbal teas, culinary and medicinal use, both for the local and export market. Local processing leaves much to be desired leading to post-harvest losses, microbiological and physical contaminations, and generally low quality of produce, resulting in a high rejection rate (especially in international markets). The objective of this project is to improve the value chain for selected herbs (such as thyme, savoury, marjoram, sage, basil) by setting up a processing facility with a drying and a freezing line, and based on controlled primary production. The project will mainly produce for export.The location of the project is near the Suez canal, close to the farm of the local partner in the Sinai. At the end of the pilot annual production will be 1,400 tonnes of frozen and dried product.The applicant is Verenigde Nederlandse Kruidendrogerijen B.V. (VNK) from Biddinghuizen. The local partner is Al Hoda Company Ltd, an agricultural production and trading company with its headquarters in Cairo. The partners will establish a joint venture with equal shareholding.The project is innovative as in Egypt the value-chain for herbs for the food industry is underdeveloped. The project will introduce new management concepts and technologies in the field of growing and processing. Freezing of fresh herbs for the export market is a novelty in Egypt altogether.Corporate Social Responsibility (CSR)VNK and Al Hoda have good social policies, sustainable production and care for the environment integrated into their business activities. Both comply with local and international standards for product quality and safety (HACCP, BRC, TESCO, Organic, etc). Salaries at Al Hoda are only slightly above what is paid elsewhere in the sector, but they are complemented by secondary benefits (medical insurance, child care and lunch at work e.g.). Al Hoda provides the nearby communities with free purified drinking water and is the largest employer in the area. The project will integrate CSR into its operations and will be asked to present a CSR policy document. The project will implement a Labour Safety Inventory and Implementation Plan according to Dutch standards (ARBO RIE and PvA). This guarantees that workers' health and safety provisions will equal the standards of the VNK factory in the Netherlands.Impact•	Employment and working conditionsDuring the pilot, 61 staff will be directly employed by the joint venture (process-sing facility) of which 7 are medium/high staff. This figure will not increase during the 2 years follow up period, which is explained by the fact that employees will be more experienced and start working in two shifts.The project will also create indirectly employment in primary production at Al Hoda (50) and for outgrowers (25). At the end of the 2 year follow-up phase these figures will be 90 and 50.Salaries will be at least 10% above the average paid for similar jobs in the sector and workers will have secondary benefits like basic medical insurance, free lunch and maternity. Workers' health and safety is critical due to the exposure to dust and the danger of explosion due to static electricity. This will be addressed by a Risk Analysis for Labour Safety (RIE) and subsequent safety measures.•	Innovation/Transfer of knowledgeMost or part of the training related to cultivation practices, post-harvest handling methods, and – more in particular – the operations of the processing facility, is new to the country. The drying and freezing techniques are state-of-the art and energy-efficient or friendly. Freezing of fresh herbs is altogether new for Egypt.•	Chain effectsAt sector level this project will serve as an example of effective chain management from grower to consumer, with an important element of value addition and technology transfer to the local economy. As a spin off, the project will furthermore create employment and income for a number of local service providers, e.g. in operation and maintenance and transport/logistics.•	EnvironmentIn a narrow sense, the scope of this project is the processing facility only (the joint venture). However, indirectly the scope also covers the cultivation of herbs. As for the former, impact on the environment is not critical, apart from the issue of ventilation and remittance of dust. Provisions to control this will be according to standards applied by VNK in the Netherlands. Cultivation practices will be according to GlobalGAP directives, thereby reducing as much as possible use of pesticides. As for irrigation, Al Hoda uses Nile water as opposed to ground-water and makes use of the Dacom system. This system optimizes, and so minimizes, the use of water for irrigation (and pesticides), through application of a high-tech satellite connected monitoring system with sensors and weather stations, for monitoring plant requirements on a daily basis.•	Position of womenThe project will aim at employing at least 50% female staff for all positions. However, this may be slightly less in management positions and higher for production work. To set up a high quality export chain for herbs and spices in Egypt for sales of 1,400 tonnes processed herbs at the end of the project to the West European food and catering market.