2. Background – Small & Marginal Farmers
Small landholding, < 2 hectares (80%)
Marketing challenges
Limited marketable surplus
Dependency on local intermediaries
Lack of value addition
Lack of market information
Lack of access to terminal market and organised
private players
Lack of access to formal finance
Minimal reach of organized private retail chains
Collective Marketing
3. The Product Pyramid
Finished
Town / City
Semi
Finished Town
Minimum Value
Addition
Village
Raw Produce
Raw Produce
Collective Marketing
4. Value Chain Value
Value
Addition
Addition
Distant Market
Distant Market 5%
5%
Nearby Market
Nearby Market 5%
5%
Local Value Add
Local Value Add
Processing 5 -10%
5 -10%
Processing
Group Working
Group Working 10 – 15 %
10 – 15 %
Capital Loan
Capital Loan Collectivization
Collectivization
Raw Produce
Raw Produce
Collective Marketing
5. MART Solution
A market led approach to sustainable livelihood
promotion
Empower the small farmer through collectivization to
achieve economies of scale and better negotiate the
market
Link farmers to mainstream market
Focus on public-private-community-partnership
Facilitate and build capacity of farmers - but not get
involved in buying and selling
Demonstrate scalability
Maximize return to farmer with minimum additional
investment
Collective Marketing
6. Coverage
Initiated in most backward Districts of Orissa
Particulars Started in Expanded to
Districts 2 6
Coverage (districts) Balangir, Nuapada + Kalahandi, Koraput, Gajpati,
Kandhamal
No of Villages 20 500
No of SHG members 200 3000
Turn over (Rs) 5 Lacs 200 lacs
Products Minor Millets, Cotton, Vegetables, Niger, Cow pea,
Onion, Madhuca indica, Cashew, Tamarind, Mango jelly
Buchania Langan local variety), Vegetables, Hill
broom…
Collective Marketing
7. Approach to Collective Marketing
Map produce having marketable surplus
Map produce having marketable surplus
Group
Group Market
Market Market
Market
Orientation
Orientation Infrastructure
Infrastructure Linkage
Linkage
• Concept Sharing
• Concept Sharing • Drying
• Drying • Search market
• Search market
• Build Capacity
• Build Capacity Platform
Platform • Negotiate with
• Negotiate with
• Systems in place
• Systems in place • Weighing
• Weighing trader
trader
• Business plan
• Business plan Scale
Scale • Linkage
• Linkage
• Financial linkage
• Financial linkage • Logistics
• Logistics • Profit sharing
• Profit sharing
• Procurement
• Procurement • Quality check
• Quality check
Planning for the next produce
Planning for the next produce
Collective Marketing
8. Collective Marketing – The Preparatory Process
Training Sensitization
Sensitization Exposure
Collective Marketing
9. Collective Marketing – The Produce Process
Harvesting Collection
Drying Desheling
Collective Marketing
10. Collective Marketing – The Handling Process
Storage Weighing
Packing Negotiation with Trader
Collective Marketing
11. Collective Marketing – The Selling Process
Sales Event Lifting of Product
Receiving Money from Trader Marketing of Hill Broom
Collective Marketing
12. Overall Benefits of Intervention
Higher value for produce
Better negotiating power in market
Better understanding of market dynamics
Marketing infrastructure created
Collective Marketing
