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23 25 jan 2013 csisa kathmandu new business models aanand

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  • 1. New Business ModelsDemand Aggregation and Services for Smallholders Examples Aanand Kumar Kathmandu Jan 23, 2013
  • 2. 10 Minute Agenda• Why Smallholders• Why Aggregation• Examples of Work Done
  • 3. Why Smallholders?• Comprise “90% plus” of rural households in EUP, Bihar and Odisha• Main focus of donors – small farmers• Cannot negotiate – give the maximum margins• Most value conscious• Generally left out by all agencies• Maximum market available here
  • 4. Rural Households Vs Land Operated Resource Poor Farmers Aggregation of Households Land Aggregation of Land
  • 5. Why Smallholders?• Comprise “90% plus” of households in EUP, Bihar and Odisha• Main focus of donors – small farmers• Cannot negotiate – give the maximum margins• Most value conscious• Generally left out by all agencies• Maximum market available here
  • 6. Why Smallholders and Aggregation?• Comprise “90% plus” of households in EUP, Bihar and Odisha• Main focus of donors – small farmers• Cannot negotiate – give the maximum margins• Most value conscious• Generally left out by agencies• Maximum market/ scale up opportunities here• Aggregation leads to “profitable businesses”
  • 7. Examples• Service Provider – Laser Leveller - EUP• PACS – Noorpur Bet, Ladowal, Punjab• Digital Green – Aggregation and Servicing
  • 8. Example 1: Smallholder Aggregators
  • 9. Service Provider – Laser Leveller - EUP• Clients spread over 100 km range  loss of income in season;• Recovering fees difficult. 8% held by large/ small recalcitrant farmers. Subsidy?• Initial hub support  put off salary and alone. Limited influence. Intimidated to independently hold meetings in new villages for publicity.• Flatly interested in servicing large farmers - can work on large areas, get paid in bulk, fewer hassles, primarily cash crops.• Finds demand aggregation and fee collection weak areas in his business model.• Willing to share 10-20% margin with any intermediary that helps him in aggregation of demand, fee collection and growth.
  • 10. Service Provider – Laser Leveller - EUP Demand Demand Aggregation LL Service LL Service Farmer Farmer Service Provider Fees Fees AggregationLARGE LANDHOLDER FOCUS SMALL LANDHOLDER FOCUS
  • 11. Demand Aggregation: NGO-CSISAVillage Numbers Problem in specific Demand Opinion of ConclusioName of area estimation Villagers n audience (acres)Nagwa 28 Undulating Land 8.21 Acre They want to apply Potential(GDS) and small land new technology in holdings and flood the field after demonstrationBelauhi 18 5 acre Less(GDS) PotentialShivkot 17 Undulating Land 13 acre More(GDS) potentialRidhiapadi 9 8.13 acre More(GDS) potential 34 acres
  • 12. GDS supported Lehra Agro Producer Company Limited board, led by its Chairman Mr. Lalman Yadav
  • 13. Example 2: Smallholder Aggregators PACS, Noorpur Bet, Ladowal, Punjab
  • 14. PACS – Noorpur Bet, Ladowal, Punjab• Primary Agriculture Cooperative Society• Currently at a profit of Rs.35,00,000• 6 villages – reaches out to approximate 1000 households• 725 members - 500 agri households (50 HH>10acres,450HH<10 acres) - 225 non agri households• 100 of these members don’t have tractors and use PACS tractors•Suite of services – - Implements on hire (4 tractors, 2 Laser Levellers, Happy Seeder, Cultivators, harrows, levellers, etc) - Seeds and fertilizers - Agrochemicals, - Loans, - Fixed Deposits, - Household grocery items
  • 15. digitalGREENExample 3: Smallholder Aggregators
  • 16. and drying Post Harvest Storage Study
  • 17. THANKS
  • 18. Reach of a Laser Leveller Taking the maximum possible scenario: •A Laser Leveller can work for 12 hours/ day for 90 days = 1080 hours •If it takes approx 3 hours/ acre, maximum possible is about 360 acres •If the laser leveller is repeated in the same farm/ 4 years, we are looking at an impact of 1080 acres per laser leveller •Assuming that 50% of households agree to get their lands levelled, a laser leveller can have a maximum impact zone of 2160 acres in its entire lifespan •An average sized village has land approximately of 250-500 acres, a laser leveller can ideally work maximum in 4-5 or maximum 10 villages in its entire life.
  • 19. What does this mean for CSISA• Enormous task• Small team• Too few sCannot reach to all population even within the same district
  • 20. Channels to Communicate Scientific Organisations Scientists Business Organisations Private Sector Entities Information sharing organisations Media Financing organisations Grant giving, loan giving Trustworthy Organisations Community Engagement