New Business ModelsDemand Aggregation and Services for Smallholders                                         Examples      ...
10 Minute Agenda• Why Smallholders• Why Aggregation• Examples of Work Done
Why Smallholders?• Comprise “90% plus” of rural households in EUP,  Bihar and Odisha• Main focus of donors – small farmers...
Rural Households Vs Land Operated         Resource Poor Farmers          Aggregation of Households                        ...
Why Smallholders?• Comprise “90% plus” of households in EUP, Bihar  and Odisha• Main focus of donors – small farmers• Cann...
Why Smallholders and Aggregation?• Comprise “90% plus” of households in EUP,  Bihar and Odisha• Main focus of donors – sma...
Examples• Service Provider – Laser Leveller - EUP• PACS – Noorpur Bet, Ladowal, Punjab• Digital Green – Aggregation and Se...
Example 1: Smallholder Aggregators
Service Provider – Laser Leveller - EUP• Clients spread over 100 km range  loss of income in season;• Recovering fees dif...
Service Provider – Laser Leveller - EUP          Demand                    Demand Aggregation                             ...
Demand Aggregation: NGO-CSISAVillage      Numbers        Problem in specific   Demand     Opinion of          ConclusioNam...
GDS supported Lehra Agro Producer Company Limited board, led by its                  Chairman Mr. Lalman Yadav
Example 2: Smallholder Aggregators PACS, Noorpur Bet, Ladowal, Punjab
PACS – Noorpur Bet, Ladowal, Punjab• Primary Agriculture Cooperative Society• Currently at a profit of Rs.35,00,000• 6 vil...
digitalGREENExample 3: Smallholder Aggregators
and drying             Post Harvest             Storage Study
THANKS
Reach of a Laser Leveller Taking the maximum possible scenario: •A Laser Leveller can work for 12 hours/ day for 90 days =...
What does this mean for CSISA• Enormous task• Small team• Too few sCannot reach to all population even within the same dis...
Channels to Communicate                    Scientific Organisations                    Scientists                     Busi...
23  25 jan 2013 csisa kathmandu new business models aanand
23  25 jan 2013 csisa kathmandu new business models aanand
23  25 jan 2013 csisa kathmandu new business models aanand
23  25 jan 2013 csisa kathmandu new business models aanand
23  25 jan 2013 csisa kathmandu new business models aanand
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23 25 jan 2013 csisa kathmandu new business models aanand

  1. 1. New Business ModelsDemand Aggregation and Services for Smallholders Examples Aanand Kumar Kathmandu Jan 23, 2013
  2. 2. 10 Minute Agenda• Why Smallholders• Why Aggregation• Examples of Work Done
  3. 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. 4. Rural Households Vs Land Operated Resource Poor Farmers Aggregation of Households Land Aggregation of Land
  5. 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. 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. 7. Examples• Service Provider – Laser Leveller - EUP• PACS – Noorpur Bet, Ladowal, Punjab• Digital Green – Aggregation and Servicing
  8. 8. Example 1: Smallholder Aggregators
  9. 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. 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. 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. 12. GDS supported Lehra Agro Producer Company Limited board, led by its Chairman Mr. Lalman Yadav
  13. 13. Example 2: Smallholder Aggregators PACS, Noorpur Bet, Ladowal, Punjab
  14. 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. 15. digitalGREENExample 3: Smallholder Aggregators
  16. 16. and drying Post Harvest Storage Study
  17. 17. THANKS
  18. 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. 19. What does this mean for CSISA• Enormous task• Small team• Too few sCannot reach to all population even within the same district
  20. 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

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