Markets for Native Fruit Diversity - Experiences of the TFTGR Project


Published on

How to engage smallholder farmers in markets using their own natural and genetic resources?

Published in: Technology, Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • The relationship between markets and agro-biodiversity is complex and not necessarily in only one direction, it can be positive and negative. This depends a lot on the exact constellation of many external or internal factors and consecutive effects. However, that relationship has largely been negative during the last century, by the emergence of a global food or bulk market since the early 19th century and the green revolution since the 1950ties. Lower transportation costs opened up more distant markets and combined with specialization, yield orientation, economies of scale and high external input use (chemical fertilizers); farmers shifted from diverse agro-systems to mono-cropping systems to focus on few crops & varieties with low intra variability and abandoned their landraces and minor crops. However in the last two decades we see the emergence of renewed consumer interest in agro-biodiversity based or related products showcasing markets and agro-biodiversity can also be positively related.
  • I have tried to summarize the most recent market forces that influence the relationship between markets and agro-biodiversity. I see two major recent forces influencing agricultural biodiversity and markets which are the monopolization in conventional food markets since the 70ties and the emergence of new or differentiated consumer demands since the 90ties. This new interest is based on an worldwide increase in income and education level and partly of a dislike of the monopolization and standardization in conventional food markets. Consumers worldwide are better educated and have gained in purchasing power which has raised interest in quality & exclusivity, interest in natural & products from their area of origin, interest in nutrition and health, transparency and traceability, interest in cultural and locally known recipes and preferences and are concerned about the long term sustainability of our food production system. Which is reflected in interest in Profit, People Planet concepts, social responsibility and fair trade, water saving strategies and carbon footprints to reduce our negative impact on climate and nature.
  • 4. The economic most important crops collected from the forest are Upage, kokum and pickle mango. Mango pickle is a local delicacy that all households in India use as side dish for their daily meals. Karnataka is known for its specific aromatic pickle mango diversity, named appe midi, of which many different varieties are found in forest and home gardens. One women leader was known for making very delicious mango pickle from the specific variety ‘Malanji’ based on secret recipe. Now this women group launched their own pickle brand based on this variety and recipe. Besides one local entrepreneur already discovered great interest among ayurvedic practitioners for kokum (Garcinia indica) based products, like jam made from the fruit rinds and soap from the oil in the seeds. Especially the very rare white kokum type, he noticed fetches high interest from ayurvedic practitioners. He now has trained several women groups how to grow the species in their home gardens and make jam from this white kokum type which they can sell through him or directly to the market. CBM methods like Participatory Market Assessment and the formation of self-help groups helped to identify those two products as key products based on native diversity with good market potential that can generate income for community members.
  • Markets for Native Fruit Diversity - Experiences of the TFTGR Project

    1. 1. Markets for Native Fruit Diversity How to engage farming communities in markets? - experiences from the TFTGR project 23 Nov 2013 B4FN, Rome, Italy Hugo Lamers
    2. 2. Outline • • • • • • • • • • Markets and diversity over time Problem setting – TFTGR project Key aspects of a NUS-based market approach 4 focus areas Major problems to tackle 12 key elements or steps to guide activities 7 guidelines Cycle of interventions Preliminary results from the field Some conclusions and lessons learned
    3. 3. Markets and diversity over time Grain market Teheran, Iran 1893 1.    Green revolution, 1950ies New interest in diversity, 1990ties Emergence of global commodity or bulk markets (~1820 onwards): Lower transportation costs, improved farming techniques, new fertile lands Shift from home use towards producing for markets (quantity + distance) Shift from diverse agro-systems to mono-cropping systems 2. Emergence of formal & commercial seed sector (the green revolution)  Yield orientation, economies of scale, specialization, high external input use  Focus on few crops & varieties with low intra variability  Farmers abandon landraces and minor crops
    4. 4. Markets and diversity over time 3. Monopolization in conventional food/bulk markets (since 70ties)  Emergence of integrated and shorter food chains with dominant players  High impact risks in bulk markets (harvest failure, product failure)  Market power shift towards supermarket chains & international processors  Standardization of products – focus on quantity, low costs, requirements  New contract formats: contract farming; out-growers; cooperatives 4. Emergence of new or differentiated consumer demands (since 90ties)  Income of households and education level increased worldwide  Dislike of monopolization and standardization in conventional food markets  Raising interest in quality & exclusivity  Raising interest in natural & original products (origin areas)  Nutrition & health  Transparency and traceability (know the farmer)  Localized & cultural based preferences  Long-term sustainability (PPP, social, water use, carbon footprint)
    5. 5. Problem setting - TFTGR project  Territorial approach – selected 36 villages in fruit tree diversity hotspots ‘those farming communities that still have a wide range of fruit species and varieties that others already lost’  Community-based Biodiversity Management (CBM) – multitude of activities and interventions that combined help farming communities to make self-directed decisions in the management and use of their local diversity in a sustainable manner  Focus on participatory methods – how to facilitate and engage such communities in markets in an effective manner? Higher level of complexity: 1. Which crop? 2 How to engage? 3.Which market?
    6. 6. Key aspects of marketing to explain to farming communities and women groups  A bulk production market has often low value, high competition, overproduction and volatile prices which you cannot influence resulting in insecure income for farmers. Advantage is that it requires little investment or effort.  We focus on innovative niche markets and use local fruit diversity or unique species or varieties to develop novel products and innovative market concepts by: A. Product differentiation; i.e. how to make my product different and more attractive then competitors by product design and quality, package, price, promotion B. Consumer segmentation; i.e. how to create strong customer relationships and target a specific consumer group that is most interested to buy my product Disadvantage is it requires substantial investment and effort.
    7. 7. Agro-biodiversity and markets Export A Sold in wholesale markets in major cities (inter state/province) B Sold in local village markets Home consumption 5-8 High distant market value 20-30 C 200-800 High local market value D > 1.000 Limited market value ~ high use or agronomic value E Limited use value ~ high optional or future value
    8. 8. Agricultural biodiversity and markets Export A Sold in wholesale markets in major cities (inter state/province) B Sold in local village markets Home consumption 5-8 20-30 C High distant market value 200-800 High local market value D > 1.000 Limited market value ~ high use or agronomic value E Limited use value ~ high optional or future value
    9. 9. Major problems encountered when marketing ABD: • How to identify which species, variety or product has market potential for local or distant markets? • How to identify promising crop attributes? • How to identify market trends or know what traders or consumers want/prefer? • How to identify constraints & problems in the value chain? • How to overcome unstable & low quality of produce? • How to achieve aggregation & constant supply demanded by traders? • How to find trustworthy and long-term buyers and traders?
    10. 10. PMCA – Concepts & approach
    11. 11. 12 steps to guide interventions: 1. Sketch or theatre play ‘the blue square mango’ or ‘the spike-less durian’ to explain the concept of a value chain, to jointly discuss problems & bottlenecks and to built trust & collaborations among stakeholders 2. Participatory identification of promising crop attributes and products by evaluating traditional uses, recipes and related traits & characteristics 3. Joint assessment of potential products and markets by Impact Filter 4. Participatory Value Chain Mapping to provide insight into the value chain 5. Rapid Market Appraisal to identify market trends, niche markets, consumer preferences and market potential for local and distant markets 6. Identify and link farmer and women groups to entrepreneurs or potential buyers that are interested to develop and test new products and innovative market concepts as advisors and collaborators
    12. 12. 12 steps to guide interventions: 7. Identify the market potential of products by defining potential buyers, end-consumers and market trends or consumer preferences which you can embrace or incorporate into the product. 8. Creating regular value chain stakeholder workshops & meetings to develop sample product, design brand and labels, develop packaging, test processing equipment, facilitate registration (product, organic, GI), design post-harvest quality insurance (HACCP) and improve collective action together with entrepreneur or potential buyer 9. Conduct product evaluations by tasting events during fairs, workshops or events: 10. Detailed product evaluation by lab analysis of biochemical components; nutrients, micro-nutrients, vitamins, anti-oxidants, essential oils, medicinal properties etc. 11. Develop action plans or a simple business plan to evaluate economic viability of the business start-up with farmer or women groups. 12. Develop simple and effective community-based conservation strategies by designing or appointing diversity blocks (in field of custodian farmers, the school garden or community forest) or the marking of source trees for all local available fruit species and varieties to ensure accessibility for all farmer households.
    13. 13. 7 guidelines developed 1. Identification of crop attributes 2. Impact filter to select most promising products 3. Identifying private sector partners 4. Sketch or theatre play to explain concepts and foster collaborations 5. Value Chain Map to understand the market 6. Rapid Market Appraisal to learn about what customers want 7. Assess market potential by identifying end-consumers, buyers, trends & preferences 8. Conduct taste panels for product evaluation 9. Organizing stakeholder meetings
    14. 14. Cycle of interventions on community level 1. To explain concepts and foster collaborations between stakeholders 2. To understand level of market knowledge within community and to identify gabs and constraints 3. To learn about what customers want and collect relevant market information 4. To improve products
    15. 15. Theatre play – ‘square mango’ 1. Value chain has many functions & actors 2. Listen to customers demands 3. Improvement achieved through collaboration
    16. 16. Value Chain Map 1. Provides overview/insights of market knowledge 2. Identify knowledge gabs 3. Identify constraints or potential market channels
    17. 17. Rapid Market Appraisal 1. Insights of available competitive products 2. Consumer preferences (product, label, packaging) 3. Volumes and market channels 4. Potential buyers’ requirements
    18. 18. Preliminary outputs - Sarawak Before After ?
    19. 19. Preliminary outputs - Sirsi “Before the value chain analysis and rapid market appraisal we were not aware about the different aspects of packaging, labeling and marketing. We were supplying it to College of Forestry, Sirsi, our neighboring villagers and relatives. We were under the impression that our product (mango pickle) is really costlier compared to other producers. However, now we know that there is quite a huge demand to our pickle and several other potential buyers. Quality of the product also appreciated by the super market manager and cooperative society administrators. This brought us more confidence we would certainly continue with producing the pickle in larger scale” Mrs. Nagaveni and Mrs Parvati Siddi from Kalgadde – Kanchigadde village said the following, “the theatre play clearly demonstrated the actual market situations of the village as of today. We, the farmers always suffer from the existing situation. Normally we get very less price by these middle men and traders as it is righty explained in the street play. To overcome such problem we need to work together with as many stakeholders”.
    20. 20. Case study – pork curry (moo chamuang)
    21. 21. Case study - mango diversity box
    22. 22. Conservation & trade
    23. 23. Case study - mango diversity box • • • • Eosta and mangobagh still interested Key markets are Germany, UK and India Bottle-neck is ripening process of varieties Stakeholder meeting planned in Jan 2014
    24. 24. Lessons learned TRUST 0. Short introduction to markets and diversity the Market Approach to Conserve Agricultural Biodiversity 1. Identification of crop attributes 2. Impact filter to select most promising products 3. Identifying private sector partners 4. Fostering collaborations between traders and farmers 5. Value Chain Map to understand the market 6. Rapid Market Appraisal to learn about what customers want Source: Bernet et al 2003 Marketing Approach to Conserve Agricultural Biodiversity
    25. 25. Lessons learned Participatory market approach as part of CBM Advantages Disadvantages Direct positive impact on the Localized impact ground Little budget Substantial time Sustainability through empowerment & selfdirection Self-imposed limitation in finding value chain solutions due strict geographical approach Directly embedded in a conservation model to mitigate negative effects
    26. 26. Thank you!
    27. 27. What is already done by others? • • • • • • • • • CIP/CIAT: Participatory Market Chain Approach GIZ: Value links - DFID: Value chains for the poor FAO: Contract farming SNV/Agriprofocus: Gender in value chains UKAID/SDC/SIDA: Markets for the Poor Hub- SDC: Market approaches to development - ILO: Value chain development USAID:
    28. 28. Case study – white kokum jam Garcinia indica