Production of nutritious snack pellet Note: This project has been cancelled, because the Applicant is no longer confident that the PSI project can be implemented and completed in time, because of delays caused by issues between shareholders of the local partner.There is a growing concern about the effect of snack food on children in the Palestinian Territories. The Palestinian Ministry of Education issued new food regulations in 2008 that effectively ban the sale of snacks in school canteens unless they meet certain minimum nutritional values that no local producer so far is able to meet. The partners have the intention to introduce the production of fat-free snack pellets to the Palestinian Territories, Israel and nearby countries and support their clients in product formulation, nutritional values and quality aspects. The main ingredient of the snack pellets will be corn instead of potato, the pellets will be fortified with fibres and protein for added nutrition and expanded by hot air instead of oil. The applicant, the Italian company FEN s.r.l., designs and manufactures state-of-the-art machines to produce a wide range of products such as snack pellets, pasta, baby foods and breakfast cereals. They also supply technology and know-how to snack producers worldwide. FEN s.r.l. is established in 1991 and currently employs 23 persons. The local partner Al-Qasrawi Industrial & Trade Co. Ltd is the only snack pellet producer in the Palestinian territories. The company is established in 1992 and employs 170 persons. The two companies will set up a joint venture for this project in Hebron. The joint venture's production will be ISO 22000 and Kosher certified.Corporate Social Responsibility (CSR)The joint venture will develop a CSR plan during Result 1 comparable with Al-Qasrawi’s current informal CSR policy.ISO 22000 and kosher certification will be acquired during the project.The project includes technical assistance to and training of local snack producers who buy the joint venture’s snack pellets, to increase their know-how of producing healthful snacks. The joint venture will advise snack producers about the display of correct nutritional values on their products. They will also insist that their clients participate in the education of consumers with regard to the nutrition and health and with regard to the organised disposal of packaging.Impact•	Employment and working conditionsSalaries are at least 20% above the minimum wage. The employees will receive an extensive training programme, including security and safety training.The employees will also receive indefinite employment contracts after a three month probation period and training. Fringe benefits include: 50% subsidised meal per shift and transportation is arranged for people working the second and third shift (safety regulations).The verification visit to the local partner provided sufficient evidence that labour conditions, fringe benefits etc won’t be an issue in this project.•	Innovation / Transfer of knowledgeThe project employees will receive training on the following subjects:- Product.- Market.- Sectoral effect.- Production method.- Organisation; ISO.•	Chain effectsThe raw materials have to be imported as good quality products are not available locally. The suppliers are not known yet. Only the plastic bags and carton boxes will be purchased locally. The joint venture will supply Al-Qasrawi Industrial & Trade Co. Ltd and other local snack producers with fat-free snack pellets.•	Impact on the sectorThe joint venture intends to offer apprenticeships and internships to students of the Food Technology Department of the Al-Quds University and Hebron University (not included in the results). The project will introduce new certifications for the sector: ISO 22000 and kosher.•	EnvironmentThe environmental impact of the project will be minimal as the snack pellet factory produces little waste and consumes minor quantities of water. The waste policy of the joint venture will be in line with the policy of the local partner: weekly waste collection.•	Position of womenA minimum of 18 women will be employed of which five will be in medium or high positions. The goal of the project is to establish a factory for the annual production of 1,000 tons of fat-free snack pellets for the local market as well as neighbouring countries.