InsightsIntoFoodMarket_Venkat_pdf.pdf

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InsightsIntoFoodMarket_Venkat_pdf.pdf

  1. 1. INSIGHTS INTO FOODMARKETVENKATA SUBRAMANIANFOUNDER AND MD, EFARMeFarm Training Material
  2. 2. 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
  3. 3. Currently Better known as …. Hi-Tech Sabjeewallahs ;-)
  4. 4. 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
  5. 5. 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
  6. 6. the Problem statement Only a crystal clear question yields a transparent answer – Zen saying
  7. 7. 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
  8. 8. Pain areas | The Farmer‟s ‘REAL’crisis
  9. 9. Supply ChainFrom farm to home : The Food trailA video
  10. 10. 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
  11. 11. Lack of Data| No visibility tosupply or demand
  12. 12. 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
  13. 13. 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
  14. 14. 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
  15. 15. The solution"We cant solve problems by using the same kind of thinking we used when we created them." Albert Einstein
  16. 16. 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 ?
  17. 17. Myth Busters Big, large does NOT automatically mean HEALTHY
  18. 18. Myth Busters Inorganic v/s Organic
  19. 19. 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 ?
  20. 20. Chemical usage Ripening : mango , banana Colouring : Cauliflower – endo sulphan Shelf life increase : Greens : Fungi cide
  21. 21. The Organic WaySome techniques
  22. 22. Navadanya : Test Planting
  23. 23. Natural fencing/ Boundary crops Neem•Prevent pests to main crops•Provide wind shield•Help hold water/ soil toprevent erosion Marigold
  24. 24. Soil Types – IdentificationSeeds – Identification and plantingHome gardens
  25. 25. Companion Plants :Compatibility between what grows well together-
  26. 26. Integrated Livestock and farming Cattle Buffalo •Provide manure  Goat •Additional income  Sheep •Assist plant  Pig  Pollination (bees)  Rabbit  Chicken  Emu  Quail  Turkey  Duck
  27. 27. Understanding what the plant needs bylooking at leaves
  28. 28. Video : Manure/Composting Techniques Run Video (Manure Ingredients) Run Video (Indore technique)
  29. 29. Natural Weed Control-Mulching-Cow dung / urine-faster decomposition-Keep Mother nature covered
  30. 30. Simple insect traps
  31. 31. Video : Natural pest control Phenome Trap In Coconut Farm for rhinoceros beetle Open Video
  32. 32. Technology Solutions
  33. 33. 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
  34. 34. 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 
  35. 35. 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
  36. 36. 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
  37. 37. 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
  38. 38. Technology | Customer side Agri CRM Requirements analysis and demand projection Order capture(Mobile / Customer portal) MIS & Dashboard Delivery Tracking POS systems for agri
  39. 39. 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
  40. 40. 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
  41. 41. The Ideal Agri-preneur .. Ready to jump into fire …Have thediscipline of asoldier …. .. But still ‘enjoys’ doing the impossible !
  42. 42. 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

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