Fruit and Vegetable Social Cooperative for the Countryside – Kanálka Cream

The Fruit and Vegetable Processing Social Cooperative for the Countryside operates in Királyhegyes, which is a small village of 670 people in Csongrád County near the Romanian border. The company makes handicrafts from local ingredients, which are sold under the “Kanálka Creams” brand. These are various pasta sauces, onion jams/chutneys, vegetable creams. The company was founded by a legal-economist brother and sister from Szeged. At first it was fruit production, but they found a closed factory in Királyhegyes. They really liked the place – Királyhegyes – a small village which is inhabited by ordinary people, there are no jobs, many of them live off agriculture, so there was an emotional motivation to help for these people.
The aim of launching Cooperative was to renew and keep developing the Kanálka Creams, giving the job back to local people and provide opportunity to local producers to sell their products locally. It was also important for them to develop an attitude towards “green” thinking.
What does mean the GREEN approach?
The enterprise was launched in the form of a cooperative, which has already required cooperation between the members. They work together with local supplier partners to develop their service. The purchase of fruit and vegetables is mainly from local producers, and if the amount is not sufficient, they also buy raw materials from the surrounding villages. In the sales, they collaborate with large department store chains such as SPAR, Müller, DM, as well as 70 smaller permanent partners: retailers, wine bars, butchers, delicatessens. Sales are mainly concentrated in and around Budapest.
Cooperation with the local government is also important: due to the involvement in local affairs and further development opportunities, e.g., they are now working with the local government to develop a “Local Producer Market”. They also work with the local school: children come to visit the factory and are involved in trying out different handmade craft activities. They regularly contribute to supporting the school’s year-end winners.
Kanálka is a rural business, with all its advantages and drawbacks. The management is in Budapest, the siblings also live here, but it is important that they go to Királyhegyes on a weekly basis. The company is managed online on a daily basis, all information is shared with each other in Google Drive, the production and procurement staff see everything at the same time, and they keep in touch with each other through the Viber group. There are good systems so they always know all the information and data up to date.
However, the attitude of the 670 people living in a closed small village and the attitude of the Local Government are also characterized by a “I can’t do it!” attitude, very pessimistic and sceptical about any new initiative, very difficult to make accepted a cooperative spirit, very difficult to move people, even for good goals. Another major challenge is to work with public bodies on tenders, as administration is complex and cumbersome.
Before launching this enterprise, it is advisable to gain experience in the field in advance, “look very strictly at how viable your idea is, how much the market needs it, i.e., how much reality the “Dream” has. It should be borne in mind that the for-profit and non-profit approaches must be present together in such an enterprise. Business attitude and business knowledge are very important, and of course a good product that the market needs because subsidies cannot be used to build a business.
It is also important to know the management, economic and financial knowledge, human knowledge, e.g., personality typology, it can help in conflicts, negotiations, dealing with people, more successful collaboration. Hungary has no culture of how to deal with it if we make a mistake, this should be taught as well. It is also important to develop problem-solving thinking.