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ANIS2012 workshop_e_agriculture-cross sectoral collaboration for social impact

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  • 1. ANIS 2012: Seoul, Korea eAGRICULTURE ICT empowering the Next billions:A Bottom-Up, Rural MicroEntrepreneur-led, ICT enabled Cross-sectoral collaborative, sustainable & scalable social business transforming lives and livelihoods of marginalised farmers Srinivas Garudachar, Director Development Strategies, Grameen Intel Social Business Ltd
  • 2. Agenda• About Grameen-Intel Social Biz• eAgro- small farmer community orientation – Problems , Solutions, Sustainability & Impact – Potential for Scaling & Partnering Locally• Can this be of value to ANIS participants?• Discussions on Collaborations for Replication
  • 3. Grameen Intel Social Business Ltd. An Intel Capital Portfolio Company• Funded by Intel Capital and Grameen Trust• A BoP focused Social business with Impact, Sustainable approach & Scalability - prime considerations• Developing analytical software with easy to use interface• Biz model Social micro-entrepreneur focused, with community participation in business- key to sustainabilityVision: digital solutions for the world’s social problems 3
  • 4. The Food Crisis• Population growth: 75 million more people a year• Production is not keeping up• Food production costs & prices are climbing• Small farmers desperate and opting out• Food security under threatAgricultures ability to feed the world reaching its limit 4
  • 5. Agriculture• ~2.4B small farmers worldwide, eg. 700M in India… – 75% of population in agro sector, feeding 100% of population – But Agro contributes only 18% of the economy – Farming becoming unviable for impoverished farmers• Increasing focus on food output & marginalized farmers – UN/ FAO, NGOs all working towards poverty alleviation in agriculture• Huge Govt Programs (mostly subsidies for Rural Inclusion) Need for a holistic, sustainable approach to improve farmer livelihoods & food security 5
  • 6. The Small Farmer Community SituationWhat are his various stumbling blocks?– Fragmented and subsistence existence (large in total no, but individually powerless)– Illiterate & poor with little access to mainstream services- many unmet needs! Low Productivity.– No understanding of his main asset-Land: quality, nutrient status, capacity to grow right crop & market– Poor quality supplies: eg. seed & nutrients– No Access to best agro cultivation practices and capital– Huge Risks- no mitigation instruments: finance, pests, diseases, climate– Labour shortage vs. unviable mechanization– Little Access to market info / transaction systems that are transparent and fair– No proper Post harvest logistics of Storage, Processing & Transport
  • 7. What is the solution? FARMER ENTREPRENEUR Farmer discusses problems, needs, land status, income & expense details with the Entrepreneur Entrepreneur Genuine Seed Supplier enters farm dataFARMER into eAgro system Genuine Fertilizer Supplier eAgro Genuine Pesticide Supplier routes request Agriculture Advisors to Micro Financer (Credit, Ins.) relevant group Markets Machinery eAgro : Creating an integrated IT enabled Agro ecosystem (hitherto untouched by tech) Tailoring for local entrepreneur led growth and development
  • 8. Software Modules For Agriculture Lifecycle15 Modules on our roadmap solving farmer issues 8
  • 9. eAgro solution Example Usage Model An eAgro entrepreneur uses software for soil analysis andrecommend the key missing nutrients necessary to increase production for a fee of US $ 3 9
  • 10. The Uniqueness of eAgro PIE Approach … key to Sustainability Participatory ICT enabled Entrepreneurship Driven Community Buy-in, IT bringing the Agro Rural Entrepreneur ecosystem to the Interface between AgroCross Sectoral doorstep Value-Value ecosystem & Farmers exchange
  • 11. Business Model Key to business is creating continual social impact: building and sustaining trust of the community => key to lateral growth and expansion to other areas. For-Profit (not profit maximizing, but balanced with social impact): Revenues for entrepreneur from Agro services  Transaction fees, Registrations, Advisories  Commissions earned from purchase/sales/credit  Advertising  Vocational Education  Certifications (Organic, EuroGAP…)  Microventure profits Revenues streams leveraging the community connect (ancillary initiatives …farm machinery leasing, microfinance, primary healthcare, vocational education, power..) Unleashing the social entrepreneurship to enable rural inclusion at the BoP
  • 12. Salient features of eAgroInnovative Use of ICT: – Cost-effectively bridge distance, connect disparate islands and enables scaling and replication, – Brings business transparency to the system – Good aggregation tool for the farmer to leverage for collective bargaining at both supply and market ends, • Aggregation provides opportunity to unearth new bizs (eg. labour shortage > mechanization) – Individualized farmer portfolio-management approach enables planning, risk mitigation & improved productivity • .Social interventions that address Long-term Sustainability: – Creation of Social micro-entrepreneurship engines – Community Participation: Organizing farmers into logical groupsThe eAgro services business plugs the gaps and inefficiency of existing siloed systems (suppliers, extension programs, markets..) without adding any great burden or overheads.eAgro adds value to each of the remote stakeholder silos (suppliers, markets, experts, extn centres, financers)Ensures each one of them to be more operationally customer centric (ie small farmer focused), productive, profitableand scalable.
  • 13. Financial Impact: Farmer Production increased by 15% 105% increase in Seed Cost due to guaranteed quality seed at higher Sales increased by 122% price resulting in better germination rate and better yield Net Cash Flow increased by 203%!! 17% reduction in Fertilizer Cost due to the advantage of lower eKutir bulk rate with the benefit passed onto farmer 71% reduction in Labour Cost due to minimal labour used mainly for general upkeep, not for pests/diseases (better disease and pest resistant seeds and appropriate use of fertilizer and pesticides in right quantity) 29% reduction in Pesticide Cost due to minimal expense towards pesticides Advice on changed crop pattern & best seed type; type of fertilizer, the amount and procedure of application, and general advice on crop maintenance Informed Farmer increased his costs by 41%Impact of cross sectoral participation focused on the farmer community
  • 14. Impact on Village Social EntrepreneurEntrepreneur Energized Earning > 3x (1st year alone) Leadership & respectSelected & Trained Breaking even in ~ 7mosImproved:-Biz Skills Interest from new-ICT literacy entrepreneurs-Customer relations Strong pipeline Trained apprentices Engines for growth
  • 15. Impact: Farmer Community• Farmer Community energized  Localized Entrepreneurial capacity, livelihood & employment generated with savings augmented…  Potential for more income streams and new jobs• Community bond: Sharing & solving the problems thro Farmer Groups- owning it up• Money in the pocket for other unmet needs• Quality of life outlook better Migration arrested > related social disaster averted
  • 16. Agriculture stakeholders• Suppliers: Seeds, fertilizers- direct transparent access to larger customer base, better market penetration & delivery mechanism for other support services• Financial Services: ability to understand farmer need, access risk, and serve them in a timely, costeffective manner• Agriculture Univ & extension: ability to access & address farmer problems, leveraging remote resources• Market Aggregators: ability to forecast and source produce in bulk, directly and cost-effectively• Mechanization: able to aggregate demand=> Good proposition for leasing machinery bizWin-Win for all players to serve the Farmer thro eAgro
  • 17. Play Grameen-Intel India eAgro Initiative Impact Video
  • 18. Replicating in your region? Interested? What Grameen-Intel, Intel and partners bring: •Good opportunity to build, demo & showcase how IT can help enable achieve MDGs •Implementation Experience & Methodologies (social engineering- groups, sustainable businesses, social entrepreneurship) •ICT4D Solutions •Global Brand & reach •ICT4D tech biz Incubation capability •Can collaborate globally to build required visibility to help scale the fruits of ICT4D impact•Orientation towards community livelihood augmentation enabling increased customer footfalls•Opportunities for other verticals of Telecenter Biz: eHealth, Education, Trade, Finance etc
  • 19. Key Messages• Big problems that still need to get solved• Linking technology to macro level issues• Nimble, tangible BoP solution development• Good opportunity to bring together key stakeholders (from different sectors) across the world to solve the issueSo how can we all collaborate to accelerate/ resolve these problems? 19
  • 20. THANK YOU For more info, contact:SrinivasBGarudachar@gmail.com www.GrameenIntel.com www.eKutir.net
  • 21. Backup
  • 22. eAgro solution Example Usage Model An eAgro entrepreneur uses software for soil analysis and recommend the key missing nutrients necessary to increase production for a fee of US $ 3 22
  • 23. eAgro initiative – A Pictorial View
  • 24. THANK YOUSrinivasBGarudachar@gmail.com

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