WhyIsThereAnAgriCrisis.pdf

eFarmEnabling FArmers to Reach MarketsAn Agri Supply Chain Platform Linking farmers and consumersWhy is therean Agri Crisisin India ?Key problems and simple solutions Venkata Subramanian , Founder & COO Srivalli Krishnan , Co-Founder & CEO

Only a crystal clear question yields a transparent answer – Zen sayingPROBLEM STATEMENT

Pain areas | The Agri Supply Chain Current State : Too Many Steps , Too Little Value Addition Harvesting of • Unorganized , unregulated , Terminal markets to Vegetables unprofessional & unprofitable neighborhood wholesalers •A Middlemen’ dominated market 1 •Adhoc /Arbitrary Decisions on quality & price 5 Regional mandi to Wholesalers to Retailers 4 Terminal markets near A local mandi large cities auctioning 2 Local to Regional mandis for Auction 6Loss in transit 40% Price hike Retailers to Dining Table 3 End to end > 400% 7

Pain areas | The Farmer’s ‘REAL’ crisis Reality Check •Farmers cannot do “everything”. They need professional help and organizational support •Farming needs to become self sustaining and HENCE a business activity •High uncertainty and risks = Very low investor interest •Years of neglect & low esteem = educated youth avoid an agri career Need role models and pioneers to build the road to recovery

Lack of Data| No visibility to supply or demand Reality Check • No accurate , dynamic data on supply • No market research on customer demand • No data = Wild guesses ?

Pain Areas | Customer Spectrum Huge domestic demand, Escalating prices & Unmet needs Organised retailers are crowded in this space Competition highLow Income Middle High Hotels & Food & ExportGroup Income Income caterers Drink • ~1% of• > 40% in Group Group • ~25% of processors volume volume • ~ 20% in • ~5% in volume volume • ~5% of • Best quality /• Buy from volume • Buy from volume specific • Buy from products only neighborhood • Buy from retail chains wholesale • Product markets street vendors • Quality & mandi specific buyer (evening) • Price + Quality variety • Large volume• Pay more for conscious conscious + fixed price less quality range Efarm targets entire B2B segment and currently untapped areas

Pain areas | Marketing -The missing link ? Reality Check The missing FIFTH ‘P’ of marketing No proper in agri context - PERISHABILITY !! customer Other industries have differentiated demand data production from marketing/sales Agriculture – Farmer handles both roles India’s agribiz is ‘supply driven’Brands have value !! Indian products rather thanthough have wider varity and bettertaste have not established a stable ‘market driven’brand

Pain Areas | So many solutions , but why still a crisis ? R&D ICT Reality solutions Check Increase yield Lots of greatContractfarming ideas and Export market effort But Exist in silos Cold chain Modern Blind men Micro and the retail & finance & logistics Grants elephant ?

Market Scenario| Burning Crisis or Booming Oppurtunity ?India’s Total production of fruits & vegetables = •100 Million Tonnes = Rs 650,000 Crores (value) [ 1 tonne = 1000 kgs]Wastage in transit/handling/distribution = 40% Key focusCurrent market segmentation of organised players: areas for •Organised retail/Branded retailers share in F&V : 1.5% govt. for urgent •Food processing sector : 1% ( key pain : erratic supply) improvem •Export sector : 1% (key pain : poor grading, quality checks) entTypical DAILY requirement of fruits & vegetables of Tier 1 city/metro : •4000 tonnes = Rs 6 crores valueSource : IMAGES F&R Research Study , Govt of India , Dept. of Agriculture, Min. of Food processing Even a 1% improvement in this segment would create/generate/save Rs 650 Crores !!

"We cant solve problems by using the same kind of thinking we used when we created them." Albert EinsteinTHE SOLUTION

Key Innovations 1) Weighing machine = standardise agri business transactions ! Bundles, baskets , bags  Kilograms , Counts 2) Simple grading = right quality to right customer!! Mixed grades  S / M / L (Or) excellent / OK /bad  3) Simple technology = widest usage !!! PCs, Websites  Mobile phones , Voice, SMS 

Value proposition | Unlock revenue potential across the chain Cleaning / Packing QualityInspection/ Grading Routing Every stakeholder is alternately a Long haul buyer or seller of agro goods, linked Transportation together by a common system. Thus : Develop Online supply chain Rural Produce Collection Centres Small retailers Local vendors Technology backbone with offline distribution mechanisms Farmers Create a network of farmers, Urban area intermediaries, logistics providers, Distribution centre Local Distribution distributors and retailers Provide common support services like marketing , training , Compost/Manure from waste Food Processing units technology and agri business consulting Bulk buyers (Hotels / Caterers / Retailers) Exports ‘Organize’ the ‘un-organized’ rural eFarm Common Services to urban supply chain Planning &Coordination Research Call centre / Communication Technology Training & Support Manage the network to ensure sustainability across the chain

Solution | The Big Picture – Connecting The Dots Value added resellers Sorting , Grading , Processing, Packing Storage Warehouses Bulk buyers Exporters Farmers Cooperatives Collection centers Kiranas Self Help Groups HawkersVillage ICT kiosksPhone booths Logistics Fleet Small Independent transportersMobile operators operators Intra-city small tempos

The Ideal Agri-preneur .. Ready to jump into fire …Have thediscipline of asoldier …. .. But still ‘enjoys’ doing the impossible !

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WhyIsThereAnAgriCrisis.pdf

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