essential oil, tisane & medicinal herb -...

KOS023 – KOSOVO BUSINESS SUPPORT

Essential Oil, Tisane & Medicinal Herb

Production, Processing and Marketing in Kosovo including other

Niche-Market High-Value Horticultural Commodities June 3 to June 23, 2003

Introduction

As Horticultural Specialist for Kosovo Business Support, Winrock International, Chemonics International and USAID, my work has been to analyze the situation of various KBS agribusiness clients, identify specific and general economic opportunities (and barriers) and to lend useful technical advice wherever applicable.

Background This report relates to activities and recommendations reported in:

- Assessment of Specialty Products Sector by Tom Payne, October 27, 2002. - Report of Activities – Kosovo Business Support, Tom Easterling, March 21, 2003. - Marketing Analysis for Medicinal Herbs, Essential Oils and other Specialty

Products [KOS 023] by Tim Blakley, April 18, 2003. - International Marketing Analysis of Specialty Products [KOS025] by Donna Rosa

May 9, 2003 - Identification of Economically Important Medicinal Herbs of Kosovo by Michael

Thomas, July 4, 2003. - More on Herbs and Medicinal Plants of Kosovo. By Jolie Lonner, ~ July 15, 2003

Assessment and Objectives

Despite substantial potential, only minimal amounts of herbal, medicinal plant and essential oil goods are cultivated and processed throughout Kosovo. The conflict of 1999 unraveled practically all former outside trade links (many of these were longstanding) and effectively shut down business and employment in this sector across the region. Therefore, collection, cultivation, processing and sales of raw material herbs, berries, and finished herb-based products (especially teas) including essential oils represent an opportunity for re-growth within the rural economy. This niche market sector – Herbs of Commerce – if nurtured with sound ecological and economic practice, should sustain reliable (albeit seasonal) cash income for many Kosovar residents, small landholders, bulk traders and a few micro and mid-sized ‘finished product’ enterprises.

In Kosovo, most herbal products consumed and raw materials used for processing are imported from the neighboring countries of Macedonia, Albania, Serbia and Montenegro. However, with minimal investment, effective agribusiness intervention and technical outreach, nascent Kosovar industries could reverse this herbal products import-export trade imbalance. With in-country resources that currently exist, definitely Kosovo could provide much of its own domestic consumption of tisanes, culinary and medicinal herbs and related specialties – with excess for export. The KBS objective is to make that happen.

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Activities Over twenty days, my technical expertise was distributed over several areas within the broad scope of specialty agriculture products. Most of my attention was spent assessing technical and marketing difficulties of KBS clients in the herb and essential oil sector. My most important tasks were: improving the drying and handling of botanicals (including bilberries); and advising the improvement of juniper berry essential oil, leading to its sale.

However, I also lent other useful information, contributing to KBS project-related subjects extending beyond the original project scope. These included tidbits on mushroom culture, controlled atmospheric storage of pears, apples and potatoes, consumer ready potted culinary herbs, climate data & maps for Kosovo, and a list of ‘New Crops’ adapted for Kosovo. These extraneous topics are summarized in attachments following the main body of this report. Date Day Venue Client and Activity June 3, Tuesday - Afternoon flight arrival. June 4, Wednesday - Office and Orientation June 5, Thursday - Office June 6, Friday – Office June 7, Saturday – Office June 8, Sunday June 9, Monday – Office; Meeting with Hysni Gurazin of Agrofarmacija visit with Dr. Rexhepi, University of Pristina June 10, Tuesday – Dragas; Juniper Fructus June 11, Wednesday - Office June 12, Thursday –Peja and Istog; Herba and cherry grove land of Agrofarmacija June 13, Friday – Skopje Macedonia; Alkaloid. Met also with Hysni Gurazin, Agrofarmacija at US embassy. June 14, Saturday – Morning, Pristina, visited vegetable/food market near old mosques. Afternoon, Chamber of Commerce Trade Fair, Pristina, met owners of Agro-Alba Nursery, and Hugo’s Birraria, Dardane. Botany field trip to Shar Mountains. June 15, Sunday – Skopje Macedonia; Visit green grocers market, herbs being sold. June 16, Monday – Office; Meeting with Swiss InterCooperation’s Pristina office. June 17, Tuesday – Pudujeve; visit to Agroprodkt Commerce then Agro-Alba Greenhouse and Nursery, Pristina. June 18, Wednesday – Office June 19, Thursday - Office; met with Robert Valek, Food Flavor Chemist, Etol Company of Slovenia. June 20, Friday - Office June 21, Saturday, Botanical Herb identification field trip to Shar Mountains. June 22, Sunday - June 23, Monday – Office; fussing with computer and digital images. June 24, Tuesday – Office; Powerpoint presentation, farewell meeting with Agribis group, afternoon flight departure.

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Meetings with Mr. Hysni Gurazin of AGROFARMACIJA Agrofarmacija Mr. Hysni Gurazin Brigada 123 Theranda 044 - 124 680 Wild Crafted Botanicals Agrofarmacija is hoping to expand into new lines of medicinal & herbal teas, beyond the standard flavor tisanes available in Kosovo. The owner (Hysni) has been working to develop an extensive network of herb collectors in Kosovo and has made plans to create a set of rural collection centers for botanical materials. He has much prior experience dealing with raw material herbs, and seems quite confident in setting out to accomplish Agrofarmacija’s business plan goals. Agrofarmacija does have very nice illustrated ‘fact-sheet’ cards to guide wild-crafters on collection procedures. Hysni has noted, “Potentially 600-700 tons of herbal materials could be collected per annum”. Plants on Agrofarmacija’s ‘wild-craft’ list: Common name

Scientific name Part used Season Amount to be collected

Hornbeam Carpinus betula Leaf July Gentian Gentiana lutea Root Sept.,Oct. St. John’s Wort Hypericum perfoliatum Leaf June Dog Rose Rosa canina Fruit, hip Sept., Oct Bilberry Vaccinium myrtilus Fruit, berry mid July 2 tons Juniper Juniperus communis Fruit, berry Autumn Bearberry Arctostaphylos uva-ursi Shoot tip na 4-5 tons Nettle Urtica dioica Root summer It should be noted that the Kosovo Ministry of Agriculture & Forestry is working toward a licensing and regulation program for setting standards for businesses and individuals engaged in wild-craft collection of botanical materials. Such laws are already enacted in Serbia & Montenegro – as a source of governmental revenue and to protect endangered species such as Gentiana from over-harvesting. For its own protection, Agrofarmacija needs to draft policy statements to standardize the payment for its wild-craft collectors, and a company procedure for docking poor quality materials and resolving buyer-collector conflict issues. Implementing internal company standards now, before government standards are imposed would be a great pro-active company move. Intended Cultivation of Herbs

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Agrofarmacija has plans to develop 76-hectare property for herb cultivation near Grebnik, midway along the Pristina – Peja road. The land is on a high rolling plateau, which had been the center of a large cherry orchard operation. The large fruit handling facility on the property has been devastated from the war, with bomb-craters surrounding the area. Forty hectares have been certified to be free of land mines. Species to begin cultivation for next season, year 2004

Althea rosea and A. officinalis Marshmallow, Althea or Hibiscus Lavendula spp. Lavander Marribium spp. Horehound Matricularia Chamomile Melissa officinalis Sweet Balm, Lemon Balm Mentha piperita Peppermint Origanum spp. Oregano Plantago lanceolata Plantain Rosmarinus officinalis Rosemary Salvia officinalis Sage

Valeriana officinalis Valerian I encouraged the production of one of the several types of Spearmint: Mentha longifolia syn. M. spicata, and M. cardiaca. Spearmint is a flavor that is not available in Kosovo. The plant is actually more robust than peppermint and could easily be cultivated as one more herbal crop on his future farm in Grebnik. I also described a perceived opportunity with the cultivation catnip, Nepeta catarica. [see appendix] Obviously not all 76 hectares will be planted in herbs at least at the start, therefore I suggested growing timber crops in outlying areas of his undeveloped land. A crop of quick-growing hardwoods such as Robinia pseudoacacia or Paulownia tomentosa would be harvestable for construction timbers or firewood in as little as six to ten years. Mr. Gurazin needs to increase credibility in his business. His program is an ambitious one and by ‘wearing too many hats’ he has let some key business-to-business partnership commitments wane. Apparently he has no one available who can ‘fill-in’ for him. I recommended that he begin building an Herbal Sample Library, by preserving sub-samples of commercial botanicals he has collected, cultivated or purchased. This will allow the comparison of material from season to season for quality control. A simple method to do this is by filling small plastic zip-lock poly bags with samples from the commercial lots he receives for making his teas. These zip-lock bags can be labelled using gummed stickers, recorded with specific lot information: date, species, origin, etc. These should be stored in library file cabinets. I mentioned that this may seem a boring, pesky useless routine task, but it would pay big dividends for his business at critical times down the road. This kind of sample documentation and record keeping is also a valuable step toward implementation of Good Manufacturing Practice, meeting quality control expectations for export buyers. Moreover, it increases the professional credibility for his business.

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I reiterated never to underestimate the importance of this task, and to delegate this job to a single trusted employee. The development of an ‘in-house’ QC expert at Agrofarmacija - through comparative examination of various herbal materials - should become an integral part of his business program. Mr.Gurazin indicated a need for help with laboratory analysis to establish quality standards for each botanical material. Agrofarmacija incorporates numerous different botanicals across its line of tea products. A small company starting up does not have the means to chemically analyze by itself, pay for the testing of each individual ingredient. Only the very largest food and dietary supplement corporations can absorb these overhead costs. Major corporations in the business will microbiologically sample dried plant materials for E. coli, Salmonella and Aspergillus aflatoxins - therefore a sanitary packaging environment is recommended. Food-grade containers that protect against rodents should also be used. Again, for Agrofarmacija, this is why every botanical material going into tea bags must be inspected closely for contamination and adulteration. Agrofarmacija should consider purchasing a low power binocular microscope, and an ultra-violet lamp for detection of fungal molds. Designs for Herb & Small Fruit Dryers The wife of Mr. Robert Berlin, Swiss InterCooperation is skilled as a mechanical graphics designer, and may be enlisted in creating blueprints for drying units. There are many types and set-ups available on-line, depending on energy inputs and the type of botanical material to be dehydrated. Hysni has expressed interest in mobile units for his eight collection points. I believe that developing a practical low cost design is going to take some prototyping over a few seasons. Mobile Drying Units Stationary drying units • Trailer mounted · Modified tobacco drier • Tents · Tunnel driers · Black plastic poly house · Tray driers I advocate the use of food-safe plastic wherever possible instead of wood or metal. Plastic produce or bread loaf trays make ideal supports for drying botanicals. Use plastic vented trays to dry herbs Trays ‘nest’ into uniform stacks Allows air flow from all sides Light weight Easy to clean with pressure hose Dimensions: 50 x 30 x 12 cm

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The drying of botanicals is frequently a failure point in start-up operations. For leafy materials, 32-35ºC (90-95ºF) and roots 43ºC (110ºF) are rules of thumb. What is needed is good current flow and mixing of air over the botanical surface, and steady heat and low humidity, less than 40 percent. Cleanliness is important, as botanicals commonly are found contaminated with filth, rodent excrement and other foreign materials. With KBS assistance, Mr. Gurazin, recently [July 2003] visited the United States on a fact-finding trip visiting growers and companies producing herbs, herbal products and medicinal plant products. He also planned a visit with Tim Blakley, re-uniting with a former KBS-Winrock consultant at Frontier Cooperative Herbs, Norway Iowa, www.frontierherbs.com. Frontier Herbs is one of the largest wholesale suppliers of consumer herbal products in the US. Frontier’s business credo relentlessly emphasizes organically grown botanicals.

I suspect that Hysni will have many new ideas contemplating upon his return to Kosovo. It would be worthwhile to interview him on his experience, to see if he has made adjustments to his business plan. Meeting with Professor Ferat Rexhepi, Botany Department, University of Pristina June 9, 2003. I was introduced to Dr. Rexhepi at his campus office by Teuta Gazideda and Tom Easterling. They have met with him on previous occasions concerning publication of his upcoming book on the medicinal plants of the Kosovo region. Earlier that morning I had interviewed Mr. Hysni Gurazin of Agrofarmacija and learned of Agrofarmacija’s intentions to begin cultivation of eleven herbs in 2004. We went down this plant list (see: report on Agrofarmacija above) and Professor Rexhepi concurred that each species was well adapted for cultivation in Kosovo. I brought to the professor’s attention two potential herb crops with economic potential both that I believe are being overlooked: Catnip or Catmint, Nepeta catarica, and Spearmint, Mentha longifolia, syn. M. spicata. We discussed the climate of Kosovo, the availability of meteorological data and how it relates to potential crop introductions. I learned that the annual temperature range is –25º – 35º centigrade. Also, that the warmest region in Kosovo is the White Drini Valley in Southwestern Kosovo, near Prizren. JUNIPER FRUCTUS - Essential Oil Distillery, Dragaš Juniper Fructus, Dragaš Ibrahim Rexhepi Tel: 020 81 333 044 203 205

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http://www.frontierherbs.com/


063 8545914 This is a brand new distillery operation located in the Shar Mountains in the southern ‘finger’ of Kosovo. Wild-crafted juniper berries are locally hand collected by the tons; some are distilled, the remainder being sold as dry whole berries. Mr. Rexhepi built the facility from blueprint designs obtained from the Medicinal Aromatic Plant Institute in Belgrade. Live steam distillations are powered by a diesel fuel boiler, running at the head at 6-10 bar. Steam of 5-6 bar working pressure is injected into the bottom of the still. There is one vessel that holds 1.5 tons of berries per distillation. The big issue of Juniper Fructus’ juniper berry oil is its unrefined state, which can be good or bad, depending to whom you are speaking. There are many monikers for natural untouched, once distilled oils from the farm: ‘pure’ ‘green’, ‘crude’, ‘unrectified’, ‘un-redistilled’, and ‘un-fractionated’. Aromatherapy practitioners esteem these types of oil most, and label them as ‘complete oils’ – oil that most truly represents the natural attributes of the plant. A food scientist, flavor chemist or perfumer would completely disagree. For industrial purposes, crude juniper berry oil must be further refined and manipulated. This refinement can be accomplished using several chemical methods to yield a ‘rectified’, ‘folded’ ‘de-terpenated’ or ‘redistilled’ juniper berry oil. Rectified oils have their ‘turpentine-like’ molecules removed; this improves flavor, in addition allows easy blending into beverages, foods and fragrances. Product Market Disadvantage Advantage Value Dried Juniper Berries

Demand fluctuates Bulky, requires storage

No processing Not perishable

Very low

Crude complete oil

Aromatherapy, hand craft soap low volume niche markets

Does not meet Flavor fragrance standards

Simple steam distillation

Medium high

Rectified oil Food beverage & fragrance

Technical 2nd step that results in ~50% yield loss.

Meets accepted industry standards

Higher than crude oil

Twisting matters further, there exists a third type of juniper berry oil on the market that is a by-product of distillation of gin type beverages. According to Guenther [The Essential Oils, Vol.6, 1950] “in Yugoslavia…large quantities of juniper berries are used domestically for distillation of ‘Borovička’ a very popular alcoholic beverage. This by-product juniper oil constitutes the large part of commercial juniper berry on the American market. …1,000kg of juniper berries yield from 16 to 18 liters of alcoholic beverage (50% alcohol) and 5 to 6 kg of essential oil.” This by-product oil is considered to be inferior to the oil from direct steam distillation of berries.

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Certificate of Juniper Berry Essential Oil Analysis by Gas Chromatography from the Dr. Josif Panič Institute of Belgrade:

Constituent (%) alpha-thujene 1.6alpha-pinene 34.3Sabinene 4.8Beta pinene 2.1Myrcene 12.0Limonene 4.9Gamma terpenine 3.5Terpenolene 2.2Terpene-4-ol 7.9Beta caryophylene 2.3Alpha humulene 1.7Germacrene D 3.9Gamma cadinene 1.9 total 79.1

Should Juniper Fructus Redistill or Rectify Juniper Berry Oil? The juniper berry essential oil distilled by Juniper Fructus in 2002 is not readily marketable. The reason for this is that it does not pass standard chemical constituent specifications for juniper berry oil desired by international flavor houses. We investigated methods and possible scenarios for improving oil quality to make the more oil marketable. ‘Standard’ quality juniper berry oils sold on the market are rectified, or redistilled. Juniper Fructus presently does not have the equipment or expertise to complete this important secondary step to increase the organoleptic desirability of its product. Oil can be redistilled by vacuum distillation, steam injection distillation, or thin film distillation. It can be rectified in 95% ethyl alcohol, via liquid-layer separation of the alcohol insoluble terpene ‘heads’ (the low boiling constituents), and then recover and concentrate the desirable high boiling ‘oxygenated’ flavor constituents by vacuum distillation. These processes require a dedicated laboratory facility, equipped with large flasks, heating mantles, condensers, receivers and vacuum pumps. Professional skills needed for rectification/redistillation require a moderate amount of chemical-technical expertise. Beyond this, some using some sort of chemical analysis, (a gas chromatograph or silica TLC) would be recommended to establish and maintain parameters of standard oil quality. I concluded that Ibrahim would not be able to redistill his own oil at his Dragaš facility.

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In discussion with Mel Jolly, Dairy Products Specialist and Chemical Engineer, we determined the most practical alternatives to re-distillation:

1) Contract out the rectification step to someone in the industry who has experience in doing re-distillation and fractionating work. A Slovenian company, Etol may be able to help Juniper Fructus with this. 2) Develop a partnership business scheme inviting interested parties who could provide the capital and necessary technical skills and set-up a re-distillation facility. 3) Sell “as is” for greatly reduced price, ~ 50€/kg to an essential oil ‘finishing’ re-distiller. 4) Sell to aromatherapy and handcraft soapmaking markets, where undistilled oils are preferred, and quality less important.

Juniper Fructus needs assistance with selling juniper berry oil. Juniper Fructus has 300 kg unrectified juniper berry oil that needs to be sold. Consultant Donna Rosa worked feverishly to find buyers for this oil, hundreds of letters and emails were sent worldwide. Bottles of essential oil samples were shipped to those that expressed interest. Furthermore, I contacted individuals in the hand-craft soap business trade in the US about the juniper berry oil to find only limited interest at a price of 80€/kg. Recently there has been interest in this oil by buyers for Robert Tisserand Co. in the UK. Contact:

[email protected], [email protected] website: www.tisserand.com

Teuta Gazideda has been keeping up with the stream of correspondence concerning the ‘offer to sell’ letters sent out by Donna Rosa. I recommend Juniper Fructus to start a batch labeling and documentation program. Have some pretty bottle labels printed. Purchase appropriate sized bottles ready for sending sample amounts to prospective customers. It is recommended that the Josif Panič institute be approached to see if they could provide additional quality information. A gas chromatography constituent profile for a high quality juniper berry essential oil would be nice for comparative purposes. Juniper berry oil quality was rejected in a faxed letter, 28 May, 2003, received from Richard Pisano, President Citrus & Allied Essences, Ltd. Mr. Pisano indicated that the oil had a very low percent of desirable high boiling constituents. He suggested that the berries had been improperly distilled, that the higher boiling constituents were not fully extracted from the charge. Whether the oil was actually poorly distilled is open to

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mailto:[email protected]



question. It could be that his company instead requires rectified, redistilled oil, which contains much higher percent proportions of higher boiling constituents. However, the Citrus Allied Ltd. letter gave other useful information. For instance that his company purchases a “few drums” of juniper berry oil from Eastern Europe each year. Assuming “a few” means three 200 liter barrels, assuming a price of 80 Euros/kilo, their purchases exceed 40,000 Euros per annum. Mr. Pisano urged Juniper Fructus to improve its record keeping:

1) Segregate the oil samples by lot number 2) Indicate the quantity (volume) within each bottle

Mr. Pisano also inquired about any other essential oils being produced in Kosovo.

Mr. Rexhepi also has 40 mT of dried juniper berries in his inventory. His facility is crammed (office and hallways) with sacks of juniper berries, as he has no dedicated warehouse space for botanical storage. He mentioned that he had a sale pending for 20mT, but was having difficulty closing the sale with the buyers? There seemed to be an issue with trust – whether payment would be made before or after delivery. Other Botanicals at Juniper Fructus Ibrahim has several sacks of dried gentian root – Gentiana lutea, a.k.a. ‘bitter root’. This is not Ginseng! Consultant Tim Blakely previously observed that the quality was low, as it had been improperly dried. We also saw bags of dried Nettle Root – Urtica dioica and Elderberry flowers - Sambucus nigra. These are commonly used in herbal tisanes, and may have been intended for sale to Agrofarmacija. It seemed that Ibrahim should be able to sell his botanicals to more than one costumer. Recommendations: In the area of dried botanicals, KBS could assist Juniper Fructus;

1) By creating a direct linkage to Alkaloid in Skopje to sell nettle root, elder flowers, gentian and other botanicals. 2) Increase Ibrahim’s B2B communication capabilities using FAX, Email, electronic money transfer and website.

Long term directions: • Find means to de-terpenate, redistill or rectify essential oil – this could eventually be done in-house over a few years of learning – or better instead, ‘farm out’ this task on sub-contract, or through partnering with an essential oil flavor house. • Learn to interpret gas chromatography results from oil analysis.

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• Find market for Pinus alba essential oil and others. There are several other local aromatic tree and wild-craft herb species that have oils that may be marketable. Be certain to identify a buyer before distilling a large inventory. • Distill cultivated herbs. For instance, I suspect that Dragas is a fantastic place to grow lavender, better the more robust lavender hybrid called ‘lavandin’. Bulgaria is the largest producer. Angelica (Angelica archangelica) would be another to consider. • Become the Dragas region’s collection point for wild-crafted bilberries and aromatic herbs. • Rent a secure, dry garage warehouse space to store botanicals. Perhaps the abandoned factory across the road could be used? • Work toward organic certification, or least ‘Good Agricultural Practice’ goals. Visit to ALKALOID, a major botanical products trader in Skopje, Macedonia. Contacts: ALKALOID · Skopje Pharmaceutical Chemical Cosmetic Industry PC Botanicals Blvd. ‘Aleksander Makedonski’ 12 1000 Skopje Macedonia Mr. Branko Popovski Mrs. Branislava Cvetanovska Kalcovska Associate director of PC Export-import Botanicals + 389 (0) 2 3 175 531; 104 275 + 389 (0) 2 3 104 047; 104 266 + 389 (0) 2 3 104 014; 104 036 + 389 (0) 2 3 104 014; 104 036 Email: [email protected] email: [email protected] Alkaloid is a big business, with branch offices all over ex-Yugoslavia. They are proud of their status of having organic certification, which is expensive for them to maintain, albeit apparently worth it commercially. Alkaloid is a major supplier of raw tea materials to Herba and Agrifarmacija, and it represents a potential large-volume buyer for herbs and dried bilberries coming out of Kosovo.

Our meeting was very cordial, and their experts were very helpful and sharing information about their business. Alkaloid runs several collection centers for wild-crafted herbs across Macedonia. It was obvious that such systems being planned across Kosovo would mimic those already in place in Macedonia.

They are interested in buying bilberries from Kosovo, but they must first pass their laboratory quality control specifications. A QC spec sheet was given to us, but now is in the possession of Mr. Hysni Gurazin of Agrofarmacija. It is very important to collect early ripening bilberries, dry them to meet Alkaloid’s specifications, and submit them to their Skopje laboratory. If the Kosovo bilberries pass muster, then hundreds of metric tons can be picked and dried, using the mushroom drying facility at AgroProdukt Commerce.

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HERBA, Tea Producer and its Cooperative Growers Contacts: Mr. Rasim Shatri Naser Shatri Maxhun Shehaj

Herba Grower Crops Field Officer Tel: 44 220 693; 039 25 365 44 282 515 InterCooperation Email: [email protected]

Tea Bagging Operation Herba produced over 600,000 boxes of tea in 2002 using a small tea-bagging machine that is located inside a domestic residence near Peja. Herba. Mr. Shatri has been making good use of older equipment, but now needs to begin Good Manufacturing Practice. For instance, the room where the tea bagging process is done is a bit grungy, with an open window and ceiling cobwebs. The process is by nature a dusty one, but better efforts should be made to clean the entire operation. Another food contamination issue is with the careless handling of the botanical tea ingredients while smoking cigarettes. Boxes of botanical materials should be kept off the floor and stored on industrial shelving, not scattered about the room and down the hallway. I recommend the same procedures laid out for Agrofarmacija for documenting the quality and consistency of the botanicals incorporated into Herba’s tea products [see page 4 of this report]. Rasim seems fortunate in that he seems to have family and community surrounding him that contributes to his enterprise. He also has developed an alliance with a network of growers for herb production. This lets him focus on his real business of packaging and marketing tea. Herba has been importing most of its botanical materials from the ALKALOID company in Skopje, Macedonia. The ‘cut and sifted’ material comes in large cardboard cartons and seems to be of high quality. It is expensive purchase imported materials - this has led to the development of a program to grow many of the high-demand tea herbs locally. Swiss InterCooperation (as well as KBS) has been in assistance for this effort. Herb Grower Cooperative Five Cooperative growers around Istog have begun to cultivate the following herbs.

- Peppermint ‘Black Mitcham’ - Sweet Balm - Althea - Chamomile - Oregano

Excepting peppermint, each of the other herb crops were established this year (2003). The plantings seem to be thriving, although when I visited he plots, the transplants had just recently been put in the soil. Mr. Maxhun Shehaj (InterCooperation) was overseeing establishment of these ‘new crops’ and seemed to have the growing situation proceeding in a positive direction.

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Using a modified tobacco leaf drying shed as an herb dryer. Swiss InterCooperation has purchased a tobacco drying shed to be used for drying the herbs produced by the local grower cooperative. The walk-in shed holds about 3.5 MT fresh hay capacity and should be able to yield 700kg of dry material from each filling cycle. Modifications to the dryer were called for because the tobacco plant leaf size, and the process of tobacco leaf drying is somewhat different than what is needed for drying assorted herbal materials. The old ‘pin racks’ provided for tobacco need be discarded for a new drying tray design. The forced air flow system in the dryer should be altered into a ‘one-pass’ flow system rather than a recirculating flow system. Commercial tobacco leaf is never over-dried, therefore some moisture is designed to be retained in a tobacco shed. This is why cigars are kept in humidors. But herbs require much more dehydration; therefore all the moist air must be expelled, not recirculated. With the dry summer relative humidity typical of Kosovo, I recommended that they attempt running the dryer without employing the forced-air furnace heater. Ambient heat and dry moving air may be sufficient alone to dry herb hay that has been previously dried down some in field windrows. Passive internal heating of the shed could be increased by painting the roof black. Temperature and humidity should be monitored. Small digital devices are cheaply available for this, and are much more practical than using an old-fashioned sling psychrometer. Mercury thermometers should never be allowed inside the shed. Ultimately, the mechanically-minded members of the Istog herb grower’s cooperative will have to apply themselves in practical invention to alter the shed to fit their needs. The drying regimen for tough gentian roots will be much different leafy material, flowers or berries. Different types of drying racks may be needed according to the botanical forms: root, fruit, flower or leaf. When the shed is freshly packed with material holding a high percentage moisture, turning on the diesel fuel heating system would be recommended to drive away enough moisture quickly, halting all fungal growth or internal tissue fermentation. Improvements to be made to the herb dryer • Retrofit to a tray drying system. • Install equipment to monitor time, temperature, humidity. • Improve air flow balance, alter to a one-pass system. • Paint the roof flat black to absorb solar heat. The folks working most closely with the operations of the drying shed should keep an official record notebook for the unit, perhaps in a guard box near the doors. SWISS INTERCOOPERATION

INTERCOOPERATION Fehmi Against No.3 Arberia/Dragodan PO Box No.2 Pristina 38000 KOSOVO

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Tel/Fax +381 (0) 38 243 034 Contacts:

Mr. Robert Berlin [email protected] Mobile: +377 (0) 44 500547 Mr. Faton Nagavci [email protected] Mobile: +377 (0) 44 500549

Met with Mr. Robert Berlin and Mr. Faton Nagavci of Swiss InterCooperation at the offices nearby KBS in Pristina. InterCooperation works ‘on the ground’ with Herba and has funds for capital investments. We discussed the design and working of the forced-air tobacco drying shed near Peja that they purchased for a cooperative group of herb growers in partnership with Herba. We discussed the re-circulation of the air through the chamber, the need for basic monitoring of temperature and humidity and a re-design of tray tables for the herbs and materials to be dried. I showed Robert and Faton a small digital temperature and moisture measuring device that would be ideal for monitoring the drying conditions inside the shed. I also lent a practical text “Drying Farm Crops” so that it could be photocopied for their use. A plan to test the dryer with herbs and bilberries was discussed using plastic ventilated trays. A source of trays, approximately .5x.3x.1 meter in dimension has been identified from a plastics extruding manufacturer in Macedonia. I also noticed that beside the Vero Market in Skopje a vast pile of slightly broken plastic trays, which would be serviceable for drying herbs. These could be bought cheaply and repaired with a little wire and caulk. Robert reported that peppermint stolons and Althea (marshmallow) root heads were purchased from an unnamed source, at an unknown cost from Serbia. 1.2 tons of peppermint stolons were planted in December 2001. 360kg of Althea were planted, covering 0.45 hectare. We discussed harvesting of Mentha. Robert claimed that this Kosovar peppermint harvested last season (2002) was aromatically more potent and organoleptically superior to the material imported via Alkaloid in Macedonia. I warned that cutting thrice would deplete the stand of mint over a few years time, and that fertilizer supplementation would be critical if a routine of three foliage cuts annually was planned. The type of fertilizer selected will determine whether the mint can be certified as organic. Organic certification for instance, precludes the use of super phosphate-based nutrients. Weed control of mint is done manually and remains the method of choice. I mentioned that geese are useful in removing weeds from mint. Verticillium wilt is a soil borne root disease that can devastate peppermint stands. Growers should be on the watch for patches of die-off in the field. If any such wilting and dying is experienced; the infected section of the field should be isolated by trenching

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around it. Vegetation in die-off areas should be destroyed, and this area should not be re-planted with mint for 7-10 years. Other crops such as maize can be planted. All tools used in and out of infected fields including truck tires should be washed (a bleach-water solution is best) before using again in other fields. From December through March, new stands of mint can be planted using stolons from older plantings. Mint stolons are dug from the earth with potato harvesting forks. Digging out one hectare of mint stolons yields five acres of new plantings. Alternatively, mint can be started by rooting above ground vegetative cuttings. This method removes any possibility of transferring Verticillium into new plantings. Faton Nagavci indicated that peppermint was ready to be harvested the week of June 23 and that we should visit the operation near Peja again to oversee the harvest and loading of the modified tobacco dryer. Unfortunately there was a delay due to rain, and my remaining time in Kosovo as consultant was ending. We discussed vegetative propagation of Melissa officinalis (Lemon Balm, Sweet Balm). I suggested propagules of 10cm with two nodes. The plant stocks set out this year came from Serbia, which doubtless had been vegetative grown. It is also possible to raise Melissa from seed. Like mint, Melissa is well adapted to the Kosovo climate and can spread like a weed. There should be little difficulty in increasing this crop into several hundreds of hectares. Septoria leaf spot is a plant disease to watch for - it is a problem in the Midwestern US – but it may not be a problem in Kosovo where summers are dry and less humid. Althea (marshmallow) can be raised vegetatively from ‘root heads’ (crowns?) or from seed. I suggested using existing commercial nursery greenhouses from the Pristina area [Adem & Bahrie Durmishi of Agro-Alba] to grow ‘starts’ of Melissa, Althea and other herbs on contract for the growers in Peja. Robert Berlin thought this would be unfeasible because of the distance and difficulty in transporting flats of young plants from Pristina out to the rural areas. Kosova is a small area - I believe the distances are not too great, especially considering that the Serbian source of their current ‘starts’. He preferred instead to grow the ‘starts’ in the Peja vicinity if possible. We also learned that the owner of Herba, Rasim Shatari had little personal interest in actively cultivating herbs himself. He would rather purchase raw materials in cooperative agreement with local farmers. Sacred Circle Herb Company Sacred Circle Association [See appendix with SCH grant proposal] Dr. Sally Cooper N. D. Qyshk, Peja, Kosovo 0 44 300 484 [email protected]

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Sacred Circle is a ‘for profit’ natural herb company owned and run by ~ 50 Qyshk village war widows. It is the brain child of Sally Cooper. Economic start-up support for SCH has been by non-profit foundation, Miracle Struggle of California. Sacred Circle Herbs produces nutritional and cosmetic products using extracts from locally growing plants and locally collected beeswax. Assistance needs: • Access to better packaging materials, glass and plastic jars, bottles • Herbal Extract Press • Gelatin capsules • UPC code labels printed on product labels • Website AGRO-ALBA - Greenhouse Nursery Operation - Pristina, Kosovo Contact: Agro-Alba

Adem and Bahrie Durmishi Owners Pristina, Kosovo Tel 381 38 515 847, Mobile 377 44 257 637 [email protected] Returning to Pristina from AgroProdukt, we visited the greenhouse-hothouse nursery operation owned by Adem and Bahrie Durmishi. I had met them a few days beforehand at the Chamber of Commerce Fair in Pristina. From Tim Blakley’s report, I was interested in seeing the quality of this operation and to understand if the owners would be able or willing to consider growing starts for growers supporting Herba in Peja or Agrofarmacija. Agro-Alba

- The owners are expanding into new greenhouse of 5000m2 - Open-minded, able and willing to try growing into new areas. - Successful in growing peppers, tomatoes and flowers. - Could provide vegetative propagule ‘starts’ for Herba and Agrofarmacija - Should consider market for potted culinary herbs.

Agro-Alba has the potential to really ‘take off’ business-wise. Located along a main road on the outskirts of Pristina, they could increase business tremendously if they built an ostensible retail outlet with convenient parking. They do little advertising, and they should try running adds in newspapers or radio when they have a seasonal crop of ornamental flowers such as mums or geraniums ready for sale. Additionally they could sell potted culinary herbs. They already were growing basil, but mentioned that it didn’t sell well. The problem is that their basil was planted in plastic nursery bags, in poor condition on the floor within the huge greenhouse. They need to grow such consumer-ready herbs in good-looking plastic ‘azalea pots’ keeping

16



them in good full shape. In short, they need to be dressed up. Each plant should also have a sticker with the Agro-Alba label. Already Alpha Market in Pristina sells similar ornamental plants; (no fresh herb plants yet) with a little strategic business-to-business intervention, Agro-Alba could easily begin selling plants and culinary potted herbs there. On a trip with Glenn Surabian, we purchased a good-looking culinary basil plant in the green grocer market in Skopje, Macedonia. No such item is available in Kosovo. Potted Culinary Herbs to Grow

- Basil (large and small leaf varieties) - Rosemary - Sage - Parsley (flat and curly leaf varieties)

Agro-Alba is a KBS client, but not actually in the Agbiz group. We [Winrock-KBS consultants] have visited Adem and Bahrie perhaps too often, and I sensed a degree of client fatigue. If we could help them get into this fresh culinary/ornamental herb market, maybe this would be a redemption for all the time these busy folks have spent politely talking to our teams.

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A plant hardiness zone map of Kosovo is needed Climatologically data, particularly topographic relief maps indicating minimum low winter temperature extremes (also seasonal precipitation) are needed for selection of agricultural and horticultural crops in any terrain. Freezing temperature periods and low-temperature minimums - the number of frost-free growing days - set the limits of what crops can and cannot be grown. Kosovo’s geography has significant vertical relief, which create intergrading, close proximity microclimates from valley floors to elevated plains and mountain slopes. Kosovo seems to have no such maps. Professor Rexhepi and others have indicated to me that there are weather stations scattered throughout Kosovo, so it is possible that such hardiness zone maps could be created by compiling sets of low temperature-date records. If anyone would take on such a project (a meteorologist?) to generate a cold hardiness and growing season map of regional Kosovo, this would be highly appreciated and quite useful for agronomists and horticulturalists in the following years. Around Pristina, (elev. 500m) the reliable frost-free growing season is 180 days or 6 months - late April to early November and sometimes longer. I reckon that the climate is similar to that of Tennessee, but with drier, less humid summers. On average, Kosovo is in USDA Zone 6. The area around Prizren has the warmest microclimate in Kosovo [USDA Zone 7] due to warm Adriatic air flowing into the White Drini Valley (elev. 300m). For instance, Figs can be grown in Prizren, but only marginally (with winter damage) in Pristina. Higher elevations in Kosovo should be considered USDA Zone 5.

General Growing Conditions for Kosovo

• Rich glaciated soils • 275 sunny days per annum • -25° to +35°C temp range • 0.6 – 1m annual precipitation • ± 180 day growing season

Internet sites for climate data for Kosovo: www.marblenet.es/pjse/mapuse.htm www.backyardgardener.com/zone/europe1zone.html www.uk.gardenweb.com/forums/zones/hze.html

The very best internet site for all kinds of maps of Kosovo

http://www.lib.utexas.edu/maps/kosovo.html This fabulous website is offered by the Perry-Castañeda Library Map Collection from the University of Texas. This collection contains a world wide assortment of geopolitical, geographical land feature, military and CIA country maps. Very useful.

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http://www.uk.gardenweb.com/forums/zones/hze.html


Saturday, June 14 Meeting with Mr. Robert Valek, Fruit flavor Extract Specialist Contact:

Mr. Robert Valek ETOL Tovarna Arom in Etericnih OlJ, d.d. Tel: +386 (0) 3 42 77 224 3001 Celje Fax: +386 (0) 3 42 77 118 Skofja vas 39 www.etol.si SLOVENIJA p.p. 426 email: [email protected]

Mr. Valek is a great resource for aromatic flavors and natural fruit based colorants commonly used in juices. We discussed ‘forest fruits’ a juice flavor that is derived from blackberry and wild strawberry. Bilberries may also be included in this mix. He was very knowledgeable about elderberry. It is cultivated in Austria for the high polyphenolic anthocyanin pigments in their fruits, which are added to wine, juices and yogurts. Also there are white berry varieties of elderberry that are valuable as additives to wine. White elderberry flavor adds a pleasant ‘Muscat Grape’ aroma to bland wines. He also mentioned that there is a market for black currant oil [Bucco Oil] that fetches 5,000€/kg! Elderberry Fruits and Elder Flowers from Sambucus nigra A. Berries Elderberry (Sambucus nigra) fruits offer another local shrub holding economic potential. Plants are native and abundant locally, found in nearly every rural area. Elderberries can be dried in the exact same manner as bilberries.

The berries are used as a natural food colorant in juices, wine and yoghurt. See discussion with Robert Valek of Etol [above in this report] also see www.preparedfoods.com/archives/2001/2001_6/0601elderberry.htm Artemis International, www.artemis-international.com a company from Fort Wayne Indiana that specializes in manufacturing standardized elderberry extracts. I know (personal information) they have a processing plant in Italy near the Switzerland border. They purchase tons of cultivated elderberries from Austria. One of Artemis International’s problem is a tariff war between the US and EU. There is a 100% duty on all fruit juice products coming into the US, from the EU. Since Kosovo is not a member, production here would offer substantial savings to them. B. Dried Flowers Elder flowers are already wild-craft harvested in Kosovo for use in tisanes (herbal infusions, or teas). We have seen dried elder flowers at Juniper Fructus, as well at the tobacco drying shed near Peja. Artemis International also is interested in elder flowers. Recommendation:

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http://www.etol.si/


http://www.artemis-international.com/


Someone could make a lot of money getting to the cultivation of small fruits, specifically for the fruit juice natural colorant market. Elderberry (both colors), Aronia, Ribes and big-fruited blueberries would be the best selections.

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Opportunities in Catnip, Nepeta catarica As an Insect Repellant

Researchers from Iowa State University announced at the American Chemical Society meetings, Chicago 2001, that the essential oil of catnip (also known as catmint) was ten times more potent as a mosquito repellant than DEET (N,N-diethyl toluamide). DEET, which is a known neurotoxin has been the standard commercial insect repellant used since the second world war. A ‘Use Patent’ has been issued by the USTPO for catnip essential oil, and is granted to the developing researchers, the USDA and Iowa State University. With or without license for use, the international market for alternative natural insect repellants – natural insect repellants that actually work – is enormous. To date, no one seems to be taking advantage of this opportunity. For this product to be developed, catnip oil products will need to be ‘worked-up’ into consumer grade products. Ideally, an existing cosmetics or pharmaceutical company could partner in this venture. Catnip essential oil would need to be emulsified into oil-glycerin type-lotions, or incorporated into a carrier solution for mist sprayers. Organic Catnip Oil Essential oil of Catnip (Nepeta) could be marketed in bulk, with certified organic Nepeta Oil selling for a premium. Non-organic oil sells today in the United States for + $200 kilogram. Assuming the primary use for this oil would be for animal use, secondary refinement, (rectification or redistillation) would not be necessary. Small sales at the beginning of production would provide a small amount of cash flow during the lag-time for product development of catnip-based insect repellant for retail markets. Herbal Pet Inebriant Catnip is well known for its playful gift on the behaviour of cats. Less well known is a similar feline effect of the roots of Valleriana officinalis, a native Kosovo species that is available in large amounts for wildcrafting harvests. A mixture of both herbs is produces a synergistic effect on Felix domesticus. Cello-wrapped sachets of dried, blended catnip and valerian herb could easily be marketed to EU pet stores under the proposed ‘Kosova Kat’ moniker. Mini Marketing Plan for Catnip Develop a brand label, could be used for catnip and other herb products as well, for instance ‘Kosova Kat’ products;

- insect repellant - organic essential oil for wholesale markets - pet inebriants + Valeriana officinalis - bulk dried herb

Production of catnip would result in products of two categories,

1) Value-Added 2) Bulk Wholesale Commodity.

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New Crop suggestions for Kosovo Fruit Crops Scientific name growing zone Comments Juneberry Amelanchier spp. Unknown in

Kosovo. Easy to grow and delicious.

Chokeberry, Chokecherry Aronia

Aronia melanocarpa

Yield 10kg/bush For juice.

Apples – Rust resistant vars.

Malus

Pears Asian Pyrus Fig Ficus carica Drini Valley Kiwi – hardy types Actinidia deliciosa,

A. arguta, A. chinensis

Drini Valley The major drawback is the expense of establishing the crop.

Blueberry, Highbush

Vaccinium corymbosum

Cooler zones, Acid soils

Mulberry, large fruited domestic varieties, red, black and white

Morus alba

Rowanberry Sorbus acuparia Elderberry, wild and improved selections

Sambucus nigra Fruit and flowers are valuable

Currants and Gooseberries

Ribes spp. For juice.

Honeysuckle, edible

Lonicera caerulea

Kaki Persimmon Dyosporos Herbs Lavender Lavendin

Lavendula officinalis and hybrids

Should be well adapted. Steady market for oil.

Rosemary Rosmarinus officianalis

Culinary fresh herb

Basil, Genovese-type and ornamental

Ocimum basilicum Culinary fresh herb

Spearmint Mentha longifolia, Different than

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M. cardiaca, M. spicata

peppermint!

Catnip Nepeta catarica For cats, against mosquitoes

Sage Salvia officinalis For tea and culinary uses

Hops Humulus lupulus Dry summers make this well-suited for Kosovo. Must be trellised.

Nut Crops Pecan Carya illinoiensis Widely unknown

across Europe. Walnut Improved varieties

Juglans regea? Market already exists

Hazelnut Improved varieties

Corylus spp. Market already exists

Chestnut Castanea silvatica Timber tree also Vegetables Mustard greens Brassica nigrum

and others Easy to grow

Kale, Collards, etc.

Brassica spp. Easy to grow

Swiss Chard, green and red

Beta vulgaris

Potatoes, specialty types, purple pigmented, new

Solanum tuberosum

Grow in loose soils at higher elevations

A good export crop, relatively non-perishable

Seed Potatoes Solanum tuberosum

Loose soils at higher elevations

Hook up with companies from the Netherlands

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Project Proposal Rreth I Shenjtë

Product Subsidizes and Educates Returnee and Minority Communities

~Budget requested from Kosovo Women’s Initiative~ Budget Narrative We project an inspiring educational summer bringing the widows of Qyshk into the returnee and minority communities of Brezovice, Grazhdevace and Mahala Batas to donate our high quality nutritional supplement, Mashallah Green. In the process of this donation, the widows and the recipients will encounter the new worlds that each has developed since the war. Below is a modest budget for the beginning of a long-term peace and health-building program. The beneficiaries of this project will receive advanced health information regarding “health-building” and “health maintenance” as a new approach to life, replacing the “wait to get sick, then take a drug” approach as well as a substantial amount of product with which to start their new program, and information on how to create a similar product themselves. Project Budget (all amounts in Euros) ITEM Cost/

Unit Qty. Total

Cost Requested Amount

DONATION OF PRODUCT TO 3 COMMUNITIES

Mashallah Green- Immune Supplement (per capsule)

0.10 30,000 Caps

3,000 3,000

Transportation 150.00 3 mo 450 450 Communication 50.00 3 mo 150 150 Trainer Stipends (4) 400.00 3 mo 1200 1200 Educational materials 50-75 3 mo 200 200 TOTAL 5,000 5,000

RRrreetthh II SShheennjjttëë________ KOMPANIA HERBALE QQyysshhkk,, KKoossoovvoo 004444--330000--448844 Local Coordinator RRyyvvee LLuusshhii Peje, Kosovo

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Sacred Circle Herb Company Project Summary: Development of a new natural herb company in Qyshk, Kosovo,

collectively owned and run by war widows of the village. The women will collect and cultivate indigenous herbs, producing a line of nutritional products, which will be marketed in Kosovo and abroad. A special health awareness campaign will coincide with subsidized donations of this preventative medicine to the malnourished Roma communities around Kosovo.

Total Budget: 38,750 Euros Request: 33,750 Euros Project Dates: April – September 2003 Location: Qyshk, Kosovo Project Goal: To create a means for the widows of Qyshk to be financially

self-sustained by producing natural herbs, teas, and nutritional supplements that promote healthy living for people.

Contact Information

Sacred Circle Association Miracle Struggle Dr. Sally Cooper N. D. Rob and Barbara Shepard Qyshk, Peja, Kosovo Dunsmuir, California, USA +377 (0)44 300 484 +1 (530) 235 4253 [email protected] [email protected]

1. Background and Necessity On May 14, 1999, Yugoslav paramilitary squads rounded up all the people in the village of Qyshk, Kosovo. They separated the men and boys from the women, forcing them into three houses. They shot them, and then set fire to the houses. The massacre took the lives of 52 men, leaving more than 40 widows to struggle for survival, without hope, or means of supporting themselves or their children. In the Spring of 2001, Dr. Sally Cooper began to make frequent visits to the widows of Qyshk. Dr. Cooper, a naturopathic doctor living in Peja with her family since the end of the war, provided therapeutic massage workshops, led dance and exercise classes, and encouraged the women to imagine a collective business that could lift them out of poverty. After several concepts were explored, the group decided to gather and prepare local herbs to create nutritional products. Dr. Cooper has a professional background in the study and use of herbs, and with her husband, Dr. Alan Cooper D.C., owned and operated New Life Health Institute in Mt. Shasta, California for thirteen years. She found the Peja region, in particular the Rugova Mountains, abundant with valuable healing plants. Several of the widows already had a basic understanding and familiarity of their uses.

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This past Summer and Fall, the group of 10 women and their daughters have been collecting these plants from the mountains and fields and drying them at their rented facility. Combining herbs with bee’s wax from their village, they have developed a healing skin salve, which soothes and remedies rashes, burns, and dry skin. An infused herbal tincture has been made to calm headaches. Several teas have been made. A new industrial herb grinder donated by Miracle Struggle Foundation specifically for this project was inaugurated, grinding a mixture of potent herbs into a green powder, which taken in capsules or mixed in a drink, provides a powerful dose of vitamins and nutrients for building stamina and boosting the immune system’s ability to prevent sickness. The group is developing an herbal supplement, which will be instrumental in cleansing the body of kidney stones, a common illness in Kosovo due to the drinking water’s high mineral content. Due to lack of public awareness around nutrition and natural healing in Kosovo, a strong media and educational campaign will be necessary to inform people about the benefits of such products. However, throughout North America and Western Europe, a wave of health consciousness has spread, and herbal products have become a multi-billion dollar market. People as diverse as the British Royal Family, Paul McCartney, and numerous professional athletes now swear by the benefits of alternative health products. The potential for export of these products from Qyshk is very good. Health food stores and distributors in California and New York have already expressed interest to sell these products. Dr. Dukagjini Kelmendi, MD., the primary physician for the western region of Kosovo, employed by the United Nations Mission in Kosovo (UNMIK) to treat international employees, has become an integral member of the group. His contributions include basic quality control of the products, as well as public advocacy within the Kosovar community. The group, naming their business Sacred Circle (Rrethe i Shejnte), has become an official Kosovar NGO. Though the Miracle Struggle Foundation has financed the development phase, capital is needed to launch the products commercially. Each of these women, as head of their household, has faced a difficult winter, with heavy rains destroying much of their subsistence corn and bean crops. Nothing can replace what these families have lost, but the Sacred Circle Herb Company does give them the tools for creating their own financial independence and restoring their dignity as they provide natural healing for others. The following project proposal seeks grant support for the proper establishment and launch of this widows’ collective herb business. 2. Objectives • To support widows of Qyshk in becoming financially self sufficient. • To give these women confidence and encouragement to believe in themselves as

important role models for other widows who have lost faith in their own future. • To give the children of these fatherless families a renewed belief in humanity. • To provide health counselling and herbal nutrition to the pathologically

26


malnourished people within the poverty stricken Roma communities. • To promote natural vitamins and medicines to Kosovar society as important agents

for healthy living. • To promote natural resources of Kosovo as valuable commodities for export.

3. Implementing Partners Sacred Circle Association is a Kosovar Non-Governmental Organization, fully registeredUNMIK. It is made up of the Qyshk widows involved in the formation of this business togwith the Cooper Family. The mission of the Sacred Circle NGO is:

To create a forum for, but not limited to, women who have lost husbands during the war of 1999, to advance their own lives through the stimulation of business, communication and creative activities helping to establish a supportive fabric for the future and to facilitate self reliance, self respect, and honor for life in every form.

It’s first venture is the Sacred Circle Herb Company. Miracle Struggle is a registered California non-profit corporation established by the CoopFamily in 2000 for the purpose of raising support for their humanitarian work and social activism in Kosovo. Since the founding of Miracle Struggle, they have produced Kosova,Undertow of Hearts, a documentary film about the inspiring hope and regeneration of the war Kosovar city, Peja. During the Spring of 2001, they made a 23 day walking journey around the entire province of Kosovo. Later that year, they produced the original theatricplay and subsequent film, The Passion of Birthfire. The production was made with professional Kosovar actors together with several women who had lost loved ones in massacres, including two women from Qyshk. These women, now part of Sacred Circle Association, starred as themselves, depicting their own struggle to find faith in life after thincredible loss. The live theater play was performed throughout Kosovo, and later the filmshown to audiences across the United States. Most recently, the Cooper Family, alongsidMinistry of Culture, Youth, and Sport, has been a lead part in organizing and hosting the aCrossing Bridges Festival, a multi-cultural festival of music, film, and arts held in Peja, wfeatures artists from all over the Balkans and Europe. Led by Mihone Lushi, who lost all fher sons in the Qyshk massacre, the entire group of the Sacred Circle Association participin the festival. There on the main stage, the widows made a sunset ceremony, dedicated tohonor, healing, and empowerment of women. The women of Sacred Circle were also featin “The Unspoken”, a documentary film about Kosovar women, made by Cloee Cooper wtwo Kosovar women, and financed by UNIFEM, United Nations Development Program, aKosovo Women’s Initiative. The Department of Culture and Youth, Kosova Foundation fOpen Society, Kosova Civil Society Foundation, the American Office, the Swiss CooperaOffice and several Kosovar businesses have supported other projects of the Cooper FamilMiracle Struggle. A 15-minute film has been attached to the proposal, which illustrates thendeavors of Miracle Struggle, and ends with the Sacred Circle Association and Herb Company. In regards to the Sacred Circle Herb Company, Miracle Struggle will take responsibility ffundraising and distribution in the United States and abroad.

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4. Project Description This project will assist in all aspects of development of Sacred Circle Herb Company through a process toward its self-sustainability and profitability as a Kosovar micro-enterprise. The development will include: • Establishment of business’ constitutional framework and proper registration • Basic set-up for small factory production and administration • Business training for the ten women presently involved • Establishment of gathering, preparation, packaging, and distribution systems • Comprehensive marketing and public education campaign. • A subsidised supply of product donated to the most malnourished Roma

communities within the Peja region and around Kosovo, together with basic health education program.

Establish Business Following a guideline of collective principles for cooperative business, the group will draft the official framework for Sacred Circle Herb Company, outlining such issues as shared ownership, management, decision-making, profit-use, and expansion. This document will be reviewed by a legal advisor and finally submitted for official registration as a Kosovar business. Set-up Basic factory set-up will include minimal required reparations and sanitation measures to be made on a small factory, where the product is being made. Storage, preparation, and packaging facilities and equipment will be purchased. A factory office will be set up. Training An initial six-month training course for ten women will be implemented. The training will include basic business management, herbal medicine preparation, and how to give educational seminars in nutrition and the important health benefits of herbs. From this training, the widows will be prepared to lead such seminars in their visits to the Roma communities. Herb Gathering During the first phase of the business herbs are being gathered exclusively by the ten widows involved. As demand increases, so does the capacity for other rural villagers, especially in the Rugova mountains, to earn money by collecting herbs from their land and selling them to the factory. In traditional times, a trading post existed in the Rugova canyon where people gathered each week to trade and sell food, milk, medicines, and crafts. Part of the long-term plan for Sacred Circle Herb Company is to engage this system of mountain commerce to again function, allowing mountain dwellers to profit by meeting the specific demands for herbs of the company. It is also foreseen that some raw food materials, such as alfalfa and bee’s wax, will either be cultivated or purchased from local farmers. Preparation and Packaging

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All preparation and packaging of products will be done at the Qyshk factory. Members of the women’s collective will work shifts, some specializing in various aspects of the production. Each product (salves, tinctures, teas, and vitamin mixes) will have its own recipe, sanitary procedures, packaging, and label. As much as possible, the company will purchase materials and packaging from Kosovar businesses. Distribution This winter, while the business is being set up, Dr. Cooper is working on two distribution channels for the United States, one with the Mountain People’s Warehouse distributor and one with Klamath Blue Green Algae company. Meanwhile, together with one representative from the widows, she will make contact with Kosovar distributors, as well as other businesses, which might be interested to cooperate with Sacred Circle, such as cosmetics or tea producing companies. Public Awareness Campaign A campaign will be made at the outset of the product launch, which will utilize print, radio and television media, and will serve two purposes. The campaign will not only be promoting the natural health products of Sacred Circle, but will also serve to educate the public about nutrition, preventative medicine, and natural healing. Such public awareness gives people the understanding that the best way to prevent sickness and disease is through exercise, good nutrition, and a strong immune system. Product Donations/Health Counseling The Sacred Circle Herb Company intends to deliver the first 5000 Euros worth of donor subsidized health products to Kosovar Roma communities where malnourishment and sickness are tragically dominant. Women from the Sacred Circle will personally make these deliveries and give presentations about the uses and health benefits of these natural remedies, as well as other general health and nutrition education. It is planned to initially reach 5 communities with this program. The first communities targeted for help are Mahalla e Bates in Peja and Plementina in the Obiliq region, with other communities currently being assessed. The donor of the project will subsidize this initial donation of product to impoverished Kosovar communities, which will in turn be a large order for the factory to help fuel its production. Sacred Circle Herb Company intends to institutionalize this element of community service into its business framework. By its second year of existence, the factory will continue to donate 10% of its product to the most needy and malnourished Kosovar communities, free of charge.

5. Beneficiaries • Ten widows from Qyshk and their children benefit from sustained income of their

own collective business. • Other Qyshk widows and nearby villagers benefit from the chance to be involved

gathering and supplying herbs and materials for the factory. • Approximately 500 Kosovar Roma will benefit from the free donated products and

health education seminars. • Kosovar society as a whole benefits from improved health consciousness and access

to health enhancing products.

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6. Visibility Major donors, who wish, will be recognized on every label of Sacred Circle Herb Company product as well as on every message or advertisement of the marketing and public awareness campaign. 7. Sustainability It is the explicit aim of the Sacred Circle project to provide the necessary set-up, training, monitoring and support in order for the Sacred Circle Herb Company to become completely self sustainable. 50% of profits from the first year of business will be set aside for financing the running costs of the second year. It is projected that the founding widows will assume full management of the business after two years of its existence, at which point Sacred Circle NGO and Miracle Struggle will serve only in the Board of Directors. Following is a cash flow projection of running costs and income for the first 2 years of business, showings its progress toward complete sustainability.

8. Two Year Cash Flow (in Euros) Monthly Average (6 month

periods) Description

per. 1 per. 2 per. 3 per. 4

2-Year Total

EXPENDITURES Administration 825 400 400 400 12150Factory Renovations/ Maintenance 200 100 100 100 3000Equipment 800 200 50 50 6600Team Training 400 100 50 50 3600Factory Rental/Utilities 250 250 250 250 6000Raw Materials 500 700 800 800 16800Vehicle Rental/ Maintenance 100 100 100 100 2400Packaging Supplies 500 800 1000 1000 19800Shipping Costs 300 500 1000 1200 18000Personnel 1200 1500 2000 2400 42600Marketing Campaign 600 400 300 300 9600Educational Presentations 200 100 100 100 3000TOTAL MONTHLY EXPENDITURES

5875 5150 6150 6750

TOTAL 6-MO. PERIOD EXPENDITURES

35250 30900 36900 40500 143,550

INCOME Project Grant/ Donations [38750

]0 0 0 38750

Domestic Revenues 500 1200 2000 3000 40200Foreign Revenues 1000 3000 4000 5000 78000TOTAL MONTHLY INCOME 1500 4200 6000 8000 TOTAL 6-MO. PERIOD INCOME 47750 25200 36000 48000 156,950TOTAL 2-YEAR PROFIT GAIN 13,400

9. Budget Narrative

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In the following project budget, all investment in the “Öther Donor” category is provided by Miracle Struggle, either in funds or donated services. All personnel costs are monthly salaries for the widows involved. All profits from the sale of the product for the first year of business, including the initial subsidies for the Roma communities, will be divided; 50% for 2nd year running costs and the expansion of the Sacred Circle Herb Company, and 50% to directly benefit the widows. Project Coordinator, Dr. Sally Cooper N.D. and Miracle Struggle will administer the full budget of the grant.

10. Project Budget (all amounts in Euros) ITEM Cost/

Unit Qty. Total

Cost Other Donor

Requested Amount

ADMINISTRATION Project Coordinator 200/mo 6

mo.1200 1200

Finance Manager/Translator 150/mo 6 mo.

600 900

Office Rent 100/mo 6 mo.

600 600

Communications 150/mo 6 mo.

900 900

Transportation 150/mo 6 mo.

900 900

Supplies 75/mo 6 mo.

450 450

Subtotal 825/mo 4950 4950 BUSINESS SET-UP Factory Renovations/ Installations 1000 1000Equipment 3600 grinder –

1600 2000

Office Equipment 1500 1500Subtotal 6100 1600 4500 TRAINING Trainer Stipends (3) 300/mo 6

mo.1800 600 1200

Excursions/ Refreshments 100/mo 6 mo.

600 600

Subtotal 400/mo 2400 600 1800 OPERATIONS Factory Rental (6 months) 150/mo 6

mo.900 900

Raw Materials 500/mo 6 mo.

3000 600 2400

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Vehicle Rental/ Maintenance 100/mo 6 mo.

600 600

Packaging Supplies 500/mo 6 mo.

3000 600 2400

Personnel (10 women) 1200/mo 6 mo.

7200 600 6600

Subtotal 2450/mo

14700 1800 12900

MARKETING/PUBLIC CAMPAIGN

Public Campaign Manager 600 600TV/Radio/Newspaper Advertising 3000 1000 2000Printed Labels/Brochures/Displays 1000 1000Subtotal 4600 1000 3600 PRODUCT SUBSIDIES/EDUCATION

Donation of product to 5 communities

5000 5000

Educational presentation expenses 1000 1000Subtotal 6000 6000 TOTAL 38750 5000 33750

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essential oil, tisane & medicinal herb -...

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