Collective marketing

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Very innovative approach of collective marketing which can solve problem of marginal agri producers and allied activity small enterprises.

Very innovative approach of collective marketing which can solve problem of marginal agri producers and allied activity small enterprises.

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  • 1. 3rd International Conference on Linking Markets and Farmers Linking Markets Collective Market
  • 2. The Product Pyramid Finished Branded, packaged, standardized , high competition, require high skill Semi Finished Unbranded, high competition, more margin, require high skill to produce, Involves function like processing, packing etc. Minimum Value Addition Low skill, high volume, huge market; Raw Produce Involves trading function only, Accrual of 10 to 15 % incremental Raw Produce margin within immediate value chainProduct Pyramid in a village
  • 3. Issues identifiedLack of economies of scale at the village level Lack of economies of scale at the village levelLack of access to finance Lack of access to financeNo local level value additionNo local level value additionLack of access to remunerative markets Lack of access to remunerative marketsExploitation at the hands of intermediaries Exploitation at the hands of intermediaries
  • 4. MART PhilosophyA market led approach to livelihood promotion A market led approach to livelihood promotion • Empower the small farmer through CBOs to negotiate the market through collectivization for economies of scale • Linking farmer to Mainstream market • Focus on public-private-community-partnership • Facilitate and build capacity - not get involved in buying and selling • Intervention should demonstrate scalability • Maximum return to the farmer with minimum additional investment
  • 5. Coverage Initiative in most backward Districts of Orissa Initiative in most backward Districts of Orissa Started with Expanded toCoverage (districts) 2 6Coverage (districts) Balangir, + Kalahandi, Koraput, Nuapada Gajpati, KandhamalNo of Villages 20 148No of SHG members 200 1500Turn over (INR) 0.5 Million 5 MillionProducts Miner Millet, Vegetables, Nizer, Cow Cotton, Onion, pea, cashew, tamarind, mahua, char
  • 6. Approach Mapping produce having marketable surplus Mapping produce having marketable surplus SHG/CIG SHG/CIG Market Market Market Market Orientation Orientation Infrastructure Infrastructure Linkage Linkage•• Concept Sharing Concept Sharing •• Drying Drying •• Market Market•• Capacity build platform platform search search Capacity build•• Systems in place •• Weighing Weighing •• Negotiate Negotiate Systems in place •• Logistics Logistics with trader with trader•• Business plan Business plan •• Quality check Quality check •• Linkage Linkage•• Financial linkage Financial linkage •• Share Profit Share Profit•• Procurement Procurement Planning for the next produce Planning for the next produce
  • 7. Incremental Price Realization MIS Distant Market Distant Market 5% 5% MIS Local Market Local Market 5% 5%ProcessingProcessing Local Value Add Local Value Add 5 -10% 5 -10% Drying, Grading, Drying, Grading, Weighing, Packaging Weighing, PackagingProducer CoProducer Co Collectivization Collectivization 10 ––15 % incr. price 10 15 % incr. price Bargain Bargain Raw Produce Raw Produce
  • 8. Overall benefitsControl over the raw produce Control over the raw produceHigh value for the produce - -(drying, less waste, weighing, grading, packaging) High value for the produce (drying, less waste, weighing, grading, packaging)Increased understanding on market by poor Increased understanding on market by poorGreater understanding of supply chain Greater understanding of supply chainEffective utilization of loan Effective utilization of loanImportance of marketing infrastructure Importance of marketing infrastructureCompetitiveness among market channel players Competitiveness among market channel playersReplicated in other blocks and projects Replicated in other blocks and projects
  • 9. Thank You!