Improved fresh fruit production and processing based on contract farming in Huaral Applicant Van Ooijen Citrus B.V. (part of Vorimex B.V.) imports fruit and vegetables from across the world. Local partner ITN SA is a trading company exporting fresh fruit from Peru to the USA, Canada, UK, Belgium and specifically to the Netherlands, where it delivers on average 5 containers per month to Van Ooijen Citrus B.V..The fruit sector in Peru has been growing rapidly in recent years, mainly directed at export markets. Notwithstanding the good quality of the harvested fruit, a substantial percentage reaches the final destination in poor condition. This is mainly due to unsatisfactory processing/selection of the fresh product in Peru.For this reason the partners plan to invest in a modern citrus processing plant with new technology, based on infrared sorting of fresh fruit, to accurately remove all sub-standard items and to achieve a much better uniformity of packed fruit, at arrival in the European supermarkets. As a result, less fruit is wasted after transport and consumer satisfaction is better assured, translating into better prices for the supplier.Simultaneously, the project will support outgrowers in diversifying their fruit plantations with early and late maturing citrus varieties, to extend the harvest season (and plant operation time). Finally partners intend to introduce production of organic pomegranate in the region, as growing conditions in Huaral are ideal, and there is a strong market demand. The fresh fruit processing plant will be certified for organic processing, to handle citrus, avocado and pomegranate from organic growers.A joint venture will be established, to build and operate the processing plant. ITN SA will expand its outgrowers scheme, and support farmers with introducing organic cultivation. It will furthermore be responsible for delivery of the fruit to the processing plant. Van Ooijen Citrus B.V. will in turn enter into a long-term sales contract with ITN SA with regard to the export of citrus and pomegranate to Europe. Van Ooijen Citrus B.V. will have first right with regard to citrus and pomegranate exported by ITN SA to the European market.The introduction of Near Infra-Red spectroscopy in post-harvest fruit handling, is new for the region north of Lima, and the introduction of new citrus varieties to extend the harvest season and of organic pomegranate production, are completely new for Peru.Corporate Social Responsibility (CSR)Staff hiring will be non-discriminatory. Child labour and unethical business will be prohibited. All members of staff will receive training, regular salaries with all social contributions paid, as well as secondary benefits (supplemental health insurance and free lunch). The salaries will be at least 10% above minimum wages in Peru.The joint venture will develop and implement a policy with regard to workplace health and safety. Staff will receive protective clothing, are assured enough working breaks and sanitarily facilities and workers amenities are in place. The joint venture's policy with regard to health and safety will be made explicit by obtaining OHSAS 18001 certification, as part of Result 5.The joint venture's operations will furthermore be certified for HACCP, ISO 9001 and Organic Processing.The citrus demo fields and pomegranate outgrowers will be certified for GlobalGAP; the latter also for Organic Farming.The GlobalGAP certification of all fruit that passes through the joint venture's processing plant is reassurance that the fruit has been produced sustainably, respecting the health, safety and welfare of workers, and the environment.Impact•	Employment and working conditionsThe project will create 50 direct jobs (of which 4 at the farm), and this will grow to 84 in two years. In addition, during 7 month harvest periods, another 100 seasonal workers will be employed. Compensation will be according to the job, with lowest paid workers receiving at least 15% above the legal minimum wage (154 euro per month). All employees will have a free meal, health insurance and free transport.•	Innovation/Transfer of knowledgeThe project will introduce new knowledge in terms of (organic) pomegranate cultivation, new varieties of citrus and a state-of-the-art fruit processing technology.•	Chain effectsThe improved technology will add value to the fruit supply chain, resulting in an average USD 1.00 to USD 2.00 premium per 10 kg box. The establishment of the modern processing plant in the Huaral region, will furthermore stimulate the expansion of the production areas, currently limited by lack of processing capacity. The introduction of a new (high value) fruit like pomegranate will benefit not just the 5 outgrowers directly involved, but will potentially offer new opportunities for a large number of small farmers in the region.•	EnvironmentThe project applies the most modern technology available in many fields. Although drip irrigation is not new in the region, flooding irrigation is still used on a large scale. Several kinds of Certifications also guarantee an environmentally friendly cultivation of the fruits. Finally, a reduction of waste at the final destination markets of the fruit, contributes to lower transport/energy demand per kilogram of fruit exported.•	Position of womenAt least 70% of the new jobs created will be occupied by women. Positions will be in administration, quality control, packing, cleaning and cooking. To set up a fruit processing plant in Huaral, with new technology-based on near infrared (NIR) sorting of fresh fruit, and a capacity of processing 6,700 tons of citrus, as well as 3,000 tons of avocados and/or pomegranates per year.