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InsightsIntoFoodMarket_Venkat_pdf.pdf InsightsIntoFoodMarket_Venkat_pdf.pdf Presentation Transcript

  • INSIGHTS INTO FOODMARKETVENKATA SUBRAMANIANFOUNDER AND MD, EFARMeFarm Training Material
  • Introductions Venkata Subramanian • Founder & Managing Director, Matchbox Solutions & eFarm, Chennai Brief profile : MS (Computer Science), 2003,University at Albany, NY , B.Arch , IIT Kharagpur ,1995 , India 12 years of experience in IT industry in both technology & commercial roles (7+ years in US) Head of key outsourcing & consulting accounts in Insurance, Capital Markets & Banking
  • Currently Better known as …. Hi-Tech Sabjeewallahs ;-)
  • agenda The Indian Food Market : An Overview Food Impact : Cost , Health , Contaminants Solutions  Going organic : facts from fiction  Supply chain : The dubba wallah way  Processing the food : value addition , increase life  Composting agro waste : eco friendly + money
  • The Food Impact : How it affectsyou Economic  High price of vegetables, fruits , commodities Health  Chemical residues , Adulterations Social  Food scarcity = potential riots ?  Large migration to cities from villages You are what you eat
  • the Problem statement Only a crystal clear question yields a transparent answer – Zen saying
  • Cultivation In India : An Overview•Land – Scarce , segregated•Water – Rain fed , Contaminated , deep bores•Seeds – Unavailable, Expensive, Hybrids , Localvarieties vanishing•Labour – expensive , migrating to cities•Market price – unpredictable•Net effect : Loss – surviving on subsidies
  • Pain areas | The Farmer‟s ‘REAL’crisis
  • Supply ChainFrom farm to home : The Food trailA video
  • Pain areas | The Agri Supply Chain Current State : Too Many Steps , Too Little Value Addition Harvesting of Terminal markets to Vegetables • Unorganized , unregulated , neighborhood wholesalers unprofessional & unprofitable •A Middlemen’ dominated market 1 •Adhoc /Arbitrary Decisions on quality & price 5 •No accurate DATA Regional mandi to Terminal Wholesalers to Retailers 4 markets near large cities A local mandi auctioning 2 Local to Regional mandis for Auction 6Loss in transit 40% Price hike Retailers to Dining Table 3 End to end > 400% 7
  • Lack of Data| No visibility tosupply or demand
  • Pain areas | Marketing -The missing link ? The missing FIFTH ‘P’ of marketing in agri context - PERISHABILITY !! Other industries have differentiated production from marketing/sales Agriculture – Farmer handles both rolesBrands have value !! Indian productsthough have wider varity and better tastehave not established a stable brand
  • Pain Areas | So many solutions , but why still a crisis ? R&D ICT solutions Increase yieldContractfarming Export market Cold chain Modern retail & logistics Micro finance & Grants
  • 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%Current market segmentation of organised players: Key focus areas for • Organised retail/Branded retailers share in F&V : 1.5% govt. for • Food processing sector : 1% ( key pain : erratic supply) urgent improveme • Export sector : 1% (key pain : poor grading, quality checks) ntTypical DAILY requirement of fruits & vegetables of Tier 1 city/metro : • 4000 tonnes = Rs 6 crores value Source : IMAGES F&R Research Study , Govt of India , Dept. of Agriculture, Min. of Food processing
  • The solution"We cant solve problems by using the same kind of thinking we used when we created them." Albert Einstein
  • Some Popular Myths and Misconceptions AboutOrganic Farming and Produce Ice breakers Is organic farming a recent innovation ? Is organic expensive ? Is organic just mean ‘using cow dung’ ? How can excreta be rich in nutrients ? Is organic relevant in modern scientific world ? Is yield poor in organic ? How do I know it is “Certified” 100% organic ?
  • Myth Busters Big, large does NOT automatically mean HEALTHY
  • Myth Busters Inorganic v/s Organic
  • Myth Busters … Organic is a „complete‟ way of life : like Yoga , Ayurveda – watch out for scam artists ! America was discovered by MISTAKE – Columbus wanted to come to India to trade in our agri products ! Certifications and patents : Why we are forcing „Indian farmers‟ to certify to „western‟ standards ?
  • Chemical usage Ripening : mango , banana Colouring : Cauliflower – endo sulphan Shelf life increase : Greens : Fungi cide
  • The Organic WaySome techniques
  • Navadanya : Test Planting
  • Natural fencing/ Boundary crops Neem•Prevent pests to main crops•Provide wind shield•Help hold water/ soil toprevent erosion Marigold
  • Soil Types – IdentificationSeeds – Identification and plantingHome gardens
  • Companion Plants :Compatibility between what grows well together-
  • Integrated Livestock and farming Cattle Buffalo •Provide manure  Goat •Additional income  Sheep •Assist plant  Pig  Pollination (bees)  Rabbit  Chicken  Emu  Quail  Turkey  Duck
  • Understanding what the plant needs bylooking at leaves
  • Video : Manure/Composting Techniques Run Video (Manure Ingredients) Run Video (Indore technique)
  • Natural Weed Control-Mulching-Cow dung / urine-faster decomposition-Keep Mother nature covered
  • Simple insect traps
  • Video : Natural pest control Phenome Trap In Coconut Farm for rhinoceros beetle Open Video
  • Technology Solutions
  • Value proposition | Unlock revenue potential across the chain Cleaning / Packing Quality RoutingInspection/ Grading Long haul Transportation Rural Produce Local vendors Collection Centres Small retailers Farmers Urban area Local Distribution centre Distribution Compost/Manure Food Processing from waste units Bulk buyers (Hotels / Caterers / Exports Retailers) eFarm Common Services Planning & Call centre / Training & Research TechnologyCoordination Communication Support
  • 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 
  • 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
  • Ground Operations Model Inspired by the „best‟ supply chain system in Indian conditions•Product Category : Perishable food items•IT Systems usage : NIL•Management team : Illiterate and average age of 55•Age of company : Over 150 years•Customer Segment : From slumdwellers to crorepathis•Operational efficiency : Six sigma !!! The Mumbai Dubbawallahs !!! • Key success factors : • Highly decentralized operations – agile, flexible , scalable • Use of low cost transport medium – trains • Use of human power for last mile delivery – No Fuel related hikes • Strong customer relationship – personal , localised • Simple coding, routing, labelling system – operates even without electricity ! • Delivery excellance – fixed time , professionalism
  • Technology | Farmer sideFarmer’s producedatabase• Produce name, variety• Grade• Typical yield at harvest Supply side forecasting tools / Sourcing planner• Harvest cycles /frequency• Cost of production• Location / closest pickup point Cost of production / Fair Price analysis tools Rural call centres / Mobile sms for data updates
  • Technology | Customer side Agri CRM Requirements analysis and demand projection Order capture(Mobile / Customer portal) MIS & Dashboard Delivery Tracking POS systems for agri
  • Collection centres | Localised sourcing points, Planned aggregation Mobile collection trucks for remote areasOver 2500 farmersenrolled and active Standardised Quality checks , Grading & Weighing process established On the spot payment of fair priceEstablished Collection points closeto villages
  • Distribution centre | Close to urban customers , Localised distribution Local Loading & packing as per distribution customer specs to customer site2000 sq ft facility forhandling 5 tonnes / day Customer visits , feedback Value addition by peeling/cuttingVerify arrivals, inventory Composting of waste , conversion to manure
  • The Ideal Agri-preneur .. Ready to jump into fire …Have thediscipline of asoldier …. .. But still ‘enjoys’ doing the impossible !
  • Thank You Venky venky@matchboxsolutions.in 98847 61354 Valli srivalli@matchboxsolutions.inwww.efarm.in 11 loganathan colonyLinkedin : AgriIndia Mylapore, Chennai 600004Twitter :venky_efarm Ph : 044-43577236