SlideShare a Scribd company logo
The Triple Delight
“Cargills-Sri Lanka” Model Fresh Produce Value Chain
Haridas Fernando - DM.PGDM.MBA
Deputy General Manager(Agri Business)
Cargills Ceylon Plc.,
Sri Lanka
Cargills Group CCPLC
(Revenue of USD 440 Mn
in 2013/14)
Cargills Quality
Foods
Cargills Foods
Company
Dairy Meats Fruit processing Biscuits Distribution Restaurants
Private Label
Cargills Bank
(Associate)
Our Philosophy
Our Mission
Serve the rural community, our customers and
„FOOD WITH LOVE‟
BASED ON OUR THREE MAIN PRINCIPLES OF
Enhancing youth skills
Reducing the cost of living
Bridging regional disparities
Conventional supply chain and
Cargills Fresh Produce Value Chain
Conventional supply chain
CONSUMER
PROCESSOR
EXPORTER
RETAILER
GROWER
BROKER
REGIONAL
COLLECTOR
TRANSPORTOR WHOLESALER
Labourer
BANKER
Matching needs…
Stable market
Free From
Middlemen
More
opportunity to
grow
Stable Supply
Free From
Middlemen
More
opportunity
to grow
Farmer Buyer
The Mismatch
Highest possible price
expects a Buyer for full
production
When the harvest is ready
Irrespective of quality
Up-front
payment
Farm-gate
selling
In-put
finance
Lowest possible price
Buys only required quantity
at required quality
supplied just in time
Standard credit
period
factory-gate
buying
Risk
aversion
BUYERFARMER
Cargills Private- Public Partnership Model
Producer group
Direct market for quality produce
backed by technical/extension
assistance and funds for
further development
Service organization
Fund processing facility
at village-level and in puts
specified by the retailer
Retailer/Processor
manage the facility, purchase fresh
and value added produce contribute to farmer
welfare/development
Cargills Collection Centres
Exploiting ecological diversity
Sustainable value for farmer and
consumer
Extract from “Production Resources in
Lagging Regions”,
World Bank Report :
Case Study- Sri Lanka
Sustainable value for farmer and
consumer
Extract from “Production Resources in
Lagging Regions”,
World Bank Report :
Case Study- Sri Lanka
25
45.5
Cargills Supply chain
post harvest waste is
only 4% compared to the
national average of 40%
Cargills Value chain-a New Paradigm
Primary activities – Market related
Conventional Supply Chain Modern trade Value Chain
Inbound logistics Farmers supply what ever produce to the immediate
intermediary who will in return pass down to the link
in the chain
Produce is purchased on a pre-planned schedule based on
the sales forecast predicting daily customer needs.
Operations Farmers are highly product oriented
Clueless on market forecasting
Conventional packing/transportation
Farmers are market oriented,
Improved packaging
Transportation in cool trucks
Services Purchase of produce on credit,
Price not known until they are auctioned
No valid receipt for goods
Purchases on up-front cash
Pre agreed price,
Receipt is issued to the farmer indicating the weight, price
and etc.
Cargills Value chain-a New Paradigm
Primary activities – Market related
Conventional Supply Chain Modern trade Value Chain
Outbound logistics Produce auctioned at the highest offer.
Price merely decide by the supply/demand
Goods replenished on system generated orders in
early morning hours.
Sales and Marketing Goods purchased by the jobbers distribute to their
retail vendors.
Retailers clean and do primary processing and
display in their roadside outlets to attract the
customers
Fresh produce received at the outlets are displayed
according to planograms of the outlets in serve-over
counters.
Customers are allowed to touch and feel the quality of
the produce and are free to choose their goods
Cargills Value chain-a New Paradigm
Support Activities
Conventional Supply Chain Modern trade Value Chain
Procurement The wholesaler gathers the maximum volume of produce
at whatever the quality
The central processing unit arrange purchases from the
respective collection center at correct quality, correct quantity
at the correct price.
Technology Hardly any technology applied as the whole transaction
process is focus on the least cost and high volume
Farmers are trained and guided by the Company.
Human Resource
Management
Independent actors who work for themselves.
Every function is based on commission or piece rate.
Employees are highly trained in post harvest technology,
Information Technology, customer service etc
Infrastructure Rigid transfer process with a priority on speed but highly
inefficient in quality and transparency.
The set up is well structured based on the company
philosophy, transactions are highly transparent and fair to all
stakeholders.
Collection Centre- Allawedi, Jaffna
Over 200 farmers directly benefiting
Technical inputsPartnered by USAID
Collection Centre- Thanamalwila
 Collection center was set up by World Vision USDA project
 Over 400 farmers supply their produce direct to Cargills
 Rs 3,000,000.00 was accumulated in the Farmer welfare
fund in 2013.
 75 students from farmer families were awarded
scholarships in 2013.
Collection Centre- Norochcholai
 Partnership with World Vision
 Collection center for high quality vegetable and
fruits
 Over 300 farmers directly benefitted
 Over five tons of produce is purchased daily
New Processing Plant in Kilinochchi
Cargills Kist Fruit & Vegetable Processing Factory in Ariviyal Nagar, Kilinochchi – Direct Permanent employment given for
approximately 60 persons mainly women (majority of them are widows). Soft opening held on 23rd Oct 2013. Total employment to
be created- 150.
Benefits to Farmer
Farmer friendly extension service
Better price
Free from middlemen
Cropping calendar
Benefits to consumers
Affordable price
Wider range and availability
Safe and fresh produce
Benefits to the Company
▪ Higher margin due to reduced wastage
▪ High Customer satisfaction
▪ Enhances Corporate image
▪ Fulfillment of social responsibility
Success
▪ Reduction of transport loss from 40% to 3%
▪ Elimination of middlemen
▪ Improvement in quality and sales volumes
▪ Higher price to the farmer while offering low price to consumer
▪ Paradigm shift to Public-Private Partnership
▪ Image boost to Company and the Service Organization Partner.
23
Changing Lives….Touching Hearts
Training and technical advise
New technology for sustainable
agriculture
Education
scholarships through
farmer community
funds
Better quality of life for
regional Sri Lanka
Next Move………From CSR to TBL
▪ Save our Soil program.
▪ Partnered by Department of Agriculture an island wide campaign to
educate farmers on prudent use of agro chemicals and fertiliser to
minimise the soil water contamination from agro chemicals application
▪ Soil test based fertilizer recommendations to individual farmers
▪ Joint training /follow up programs
▪ GAP
▪ Initiated awareness programs on Good Agricultural Practices
▪ Record keeping on all cultivation activities
▪ Traceability of origin through labelling produce by farmer names
▪ Development of „Safe Produce‟ with GAP certification
Cargills Approach at glance
Input finance Donor funds/Bank loans
Fame gate buying Regional collection centers in collaboration with Govt/NGO projects
Payments Transparent pricing/up front payments
Fair pricing Purchase 50-70% production at 15-20% higher than market.
Minimum guaranteed price 20% above COP
Higher returns to farmers Technical guidance for market oriented cultivation calendar.
CSR Financial support to farmer children, scholarships ,farmer insurance,
and etc.
TBL Guidance on good agricultural practices to ensure prudent use of
fertilizer and agro chemicals by farmers.
Thank you

More Related Content

What's hot

Customer Retention Strategies
Customer Retention StrategiesCustomer Retention Strategies
Customer Retention Strategies
Jeff Hurt
 
Sm
SmSm
Presentation on 7p’s of kfc
Presentation on 7p’s of kfcPresentation on 7p’s of kfc
Presentation on 7p’s of kfc
Bhawesh Bhatta
 
Mc donald’s e procurement, Supply Chain and Logistics
Mc donald’s e procurement, Supply Chain and LogisticsMc donald’s e procurement, Supply Chain and Logistics
Mc donald’s e procurement, Supply Chain and Logisticsmjahanzaib
 
kentucky fried chicken ,Marketing presentation
 kentucky fried chicken ,Marketing presentation kentucky fried chicken ,Marketing presentation
kentucky fried chicken ,Marketing presentation
Bebolious Pharoo
 
Presentation1 starbucks-final version
Presentation1 starbucks-final versionPresentation1 starbucks-final version
Presentation1 starbucks-final version
Kwang Kongmeng
 
Mc donald's SCM (ppt)
Mc donald's SCM (ppt)Mc donald's SCM (ppt)
Mc donald's SCM (ppt)
Maria Kerawala
 
Walmart value chain analysis
Walmart value chain analysisWalmart value chain analysis
Walmart value chain analysisArpan Ghosh
 
Starbucks Brand Audit
Starbucks Brand AuditStarbucks Brand Audit
Starbucks Brand AuditLaura Terry
 
Dominos pizza
Dominos pizzaDominos pizza
Dominos pizza
Muhammad Haneef
 
NESCAFÉ: Case Study
NESCAFÉ: Case StudyNESCAFÉ: Case Study
NESCAFÉ: Case Study
Newsworks
 
Biscuit Industry in light of Porters Five Forces Framework
Biscuit Industry in light of Porters Five Forces FrameworkBiscuit Industry in light of Porters Five Forces Framework
Biscuit Industry in light of Porters Five Forces Framework
arushiemarwah
 
Starbucks Key issues
Starbucks Key issuesStarbucks Key issues
Starbucks Key issues
Fredrick Oyekanmi
 
Starbucks
StarbucksStarbucks
Starbucks
Priyanshi Jain
 
Fresh Home Delivery App Marketing Strategy
Fresh Home Delivery App Marketing StrategyFresh Home Delivery App Marketing Strategy
Fresh Home Delivery App Marketing Strategy
Saurabh Singh
 
Business research model
Business research modelBusiness research model
Business research modelVignan Cheruku
 
Retail Supply Chain in Omni-channel era. Facing the Challenges
Retail Supply Chain in Omni-channel era. Facing the ChallengesRetail Supply Chain in Omni-channel era. Facing the Challenges
Retail Supply Chain in Omni-channel era. Facing the Challenges
Jose Roberto Lyra, MSc, MBA, PMP
 
Starbucks persona profile
Starbucks persona profile Starbucks persona profile
Starbucks persona profile
Paulina Rios
 
Omore marketing analysis by brands academy
Omore marketing analysis by brands academyOmore marketing analysis by brands academy
Omore marketing analysis by brands academy
Brands Academy
 
7 eleven
7 eleven7 eleven

What's hot (20)

Customer Retention Strategies
Customer Retention StrategiesCustomer Retention Strategies
Customer Retention Strategies
 
Sm
SmSm
Sm
 
Presentation on 7p’s of kfc
Presentation on 7p’s of kfcPresentation on 7p’s of kfc
Presentation on 7p’s of kfc
 
Mc donald’s e procurement, Supply Chain and Logistics
Mc donald’s e procurement, Supply Chain and LogisticsMc donald’s e procurement, Supply Chain and Logistics
Mc donald’s e procurement, Supply Chain and Logistics
 
kentucky fried chicken ,Marketing presentation
 kentucky fried chicken ,Marketing presentation kentucky fried chicken ,Marketing presentation
kentucky fried chicken ,Marketing presentation
 
Presentation1 starbucks-final version
Presentation1 starbucks-final versionPresentation1 starbucks-final version
Presentation1 starbucks-final version
 
Mc donald's SCM (ppt)
Mc donald's SCM (ppt)Mc donald's SCM (ppt)
Mc donald's SCM (ppt)
 
Walmart value chain analysis
Walmart value chain analysisWalmart value chain analysis
Walmart value chain analysis
 
Starbucks Brand Audit
Starbucks Brand AuditStarbucks Brand Audit
Starbucks Brand Audit
 
Dominos pizza
Dominos pizzaDominos pizza
Dominos pizza
 
NESCAFÉ: Case Study
NESCAFÉ: Case StudyNESCAFÉ: Case Study
NESCAFÉ: Case Study
 
Biscuit Industry in light of Porters Five Forces Framework
Biscuit Industry in light of Porters Five Forces FrameworkBiscuit Industry in light of Porters Five Forces Framework
Biscuit Industry in light of Porters Five Forces Framework
 
Starbucks Key issues
Starbucks Key issuesStarbucks Key issues
Starbucks Key issues
 
Starbucks
StarbucksStarbucks
Starbucks
 
Fresh Home Delivery App Marketing Strategy
Fresh Home Delivery App Marketing StrategyFresh Home Delivery App Marketing Strategy
Fresh Home Delivery App Marketing Strategy
 
Business research model
Business research modelBusiness research model
Business research model
 
Retail Supply Chain in Omni-channel era. Facing the Challenges
Retail Supply Chain in Omni-channel era. Facing the ChallengesRetail Supply Chain in Omni-channel era. Facing the Challenges
Retail Supply Chain in Omni-channel era. Facing the Challenges
 
Starbucks persona profile
Starbucks persona profile Starbucks persona profile
Starbucks persona profile
 
Omore marketing analysis by brands academy
Omore marketing analysis by brands academyOmore marketing analysis by brands academy
Omore marketing analysis by brands academy
 
7 eleven
7 eleven7 eleven
7 eleven
 

Viewers also liked

Supply chain management brandix supply chain
Supply chain management  brandix supply chain Supply chain management  brandix supply chain
Supply chain management brandix supply chain Lasitha Nawarathna
 
Case Study - Cargills ( Millers Ltd )
Case Study - Cargills ( Millers Ltd )Case Study - Cargills ( Millers Ltd )
Case Study - Cargills ( Millers Ltd )Thushan Dharmawardana
 
IFPRI - Workshop on Best Practices in Contract Farming: Challenges and Oppor...
 IFPRI - Workshop on Best Practices in Contract Farming: Challenges and Oppor... IFPRI - Workshop on Best Practices in Contract Farming: Challenges and Oppor...
IFPRI - Workshop on Best Practices in Contract Farming: Challenges and Oppor...
International Food Policy Research Institute- South Asia Office
 
Addressing the need for changes to the current marketing strategy of Nestlé L...
Addressing the need for changes to the current marketing strategy of Nestlé L...Addressing the need for changes to the current marketing strategy of Nestlé L...
Addressing the need for changes to the current marketing strategy of Nestlé L...
Marian Amanda Perera
 
Cargills (Ceylon) PLC & Nestle Lanka PLC financial position and the performa...
Cargills (Ceylon) PLC & Nestle Lanka PLC  financial position and the performa...Cargills (Ceylon) PLC & Nestle Lanka PLC  financial position and the performa...
Cargills (Ceylon) PLC & Nestle Lanka PLC financial position and the performa...
Dulakshi Ranadeera
 
strategic practices of the of Keells Food Product PLC
strategic practices of the of Keells Food Product PLC strategic practices of the of Keells Food Product PLC
strategic practices of the of Keells Food Product PLC
Tharushika Ruwangi
 
Operation Management at Elephant House
Operation Management at Elephant HouseOperation Management at Elephant House
Operation Management at Elephant House
Nadarasan Niroshan
 
Porter's five forces model and porter's value chain - Sony
Porter's five forces model and porter's value chain - SonyPorter's five forces model and porter's value chain - Sony
Porter's five forces model and porter's value chain - Sony
ell_suhaily
 
Combined Assignments
Combined AssignmentsCombined Assignments
Combined Assignments
Brian Teufel
 
Corporate social responsibility
Corporate social responsibilityCorporate social responsibility
Corporate social responsibility
Madangki Ramaswaamy
 

Viewers also liked (12)

Supply chain management brandix supply chain
Supply chain management  brandix supply chain Supply chain management  brandix supply chain
Supply chain management brandix supply chain
 
Case Study - Cargills ( Millers Ltd )
Case Study - Cargills ( Millers Ltd )Case Study - Cargills ( Millers Ltd )
Case Study - Cargills ( Millers Ltd )
 
Cargills
CargillsCargills
Cargills
 
IFPRI - Workshop on Best Practices in Contract Farming: Challenges and Oppor...
 IFPRI - Workshop on Best Practices in Contract Farming: Challenges and Oppor... IFPRI - Workshop on Best Practices in Contract Farming: Challenges and Oppor...
IFPRI - Workshop on Best Practices in Contract Farming: Challenges and Oppor...
 
Addressing the need for changes to the current marketing strategy of Nestlé L...
Addressing the need for changes to the current marketing strategy of Nestlé L...Addressing the need for changes to the current marketing strategy of Nestlé L...
Addressing the need for changes to the current marketing strategy of Nestlé L...
 
Cargills (Ceylon) PLC & Nestle Lanka PLC financial position and the performa...
Cargills (Ceylon) PLC & Nestle Lanka PLC  financial position and the performa...Cargills (Ceylon) PLC & Nestle Lanka PLC  financial position and the performa...
Cargills (Ceylon) PLC & Nestle Lanka PLC financial position and the performa...
 
strategic practices of the of Keells Food Product PLC
strategic practices of the of Keells Food Product PLC strategic practices of the of Keells Food Product PLC
strategic practices of the of Keells Food Product PLC
 
Operation Management at Elephant House
Operation Management at Elephant HouseOperation Management at Elephant House
Operation Management at Elephant House
 
Quality control
Quality controlQuality control
Quality control
 
Porter's five forces model and porter's value chain - Sony
Porter's five forces model and porter's value chain - SonyPorter's five forces model and porter's value chain - Sony
Porter's five forces model and porter's value chain - Sony
 
Combined Assignments
Combined AssignmentsCombined Assignments
Combined Assignments
 
Corporate social responsibility
Corporate social responsibilityCorporate social responsibility
Corporate social responsibility
 

Similar to IFPRI - Workshop on Best Practices in Contract Farming: Challenges and Opportunities in Nepal - Lessons from the Success of Cargill in Sri Lanka - Haridas Fernando

Linking Smallholder Farmers to Markets: International Lessons
Linking Smallholder Farmers to Markets: International LessonsLinking Smallholder Farmers to Markets: International Lessons
Linking Smallholder Farmers to Markets: International Lessons
Tata-Cornell Agriculture and Nutrition Initiative (TCi), Cornell University
 
subhiksha
subhikshasubhiksha
subhiksha
SourabhaGowda
 
Coco fresh manendra shukla
Coco fresh manendra shuklaCoco fresh manendra shukla
Coco fresh manendra shukla
Manendra Shukla
 
Improvement of supply chain of organic farming
Improvement of supply chain of organic farming Improvement of supply chain of organic farming
Improvement of supply chain of organic farming
Archana Kumari
 
Presentation on Feasibility Report of setting up a Fruit Stall
Presentation on Feasibility Report of setting up a Fruit StallPresentation on Feasibility Report of setting up a Fruit Stall
Presentation on Feasibility Report of setting up a Fruit Stall
AyushNayak16
 
Financing Local Sourcing Initiatives in Ghana: Partnerships that Work
Financing Local Sourcing Initiatives in Ghana: Partnerships that WorkFinancing Local Sourcing Initiatives in Ghana: Partnerships that Work
Financing Local Sourcing Initiatives in Ghana: Partnerships that Work
Technical Centre for Agricultural and Rural Cooperation ACP-EU (CTA)
 
Maziwa Zaidi (More Milk) in Tanzania―Best-bet technologies and innovations: A...
Maziwa Zaidi (More Milk) in Tanzania―Best-bet technologies and innovations: A...Maziwa Zaidi (More Milk) in Tanzania―Best-bet technologies and innovations: A...
Maziwa Zaidi (More Milk) in Tanzania―Best-bet technologies and innovations: A...
ILRI
 
Value added agro
Value added agroValue added agro
Value added agro
Independiente
 
Grenada AgriTourism Policy Setting Workshop : Raquel Peters " The aggregation...
Grenada AgriTourism Policy Setting Workshop : Raquel Peters " The aggregation...Grenada AgriTourism Policy Setting Workshop : Raquel Peters " The aggregation...
Grenada AgriTourism Policy Setting Workshop : Raquel Peters " The aggregation...
Brussels Briefings (brusselsbriefings.net)
 
Ours Agro
Ours AgroOurs Agro
Ours Agro
utkarsh1978
 
Overview of NAFAKA Project Phase 2
Overview of NAFAKA Project Phase 2Overview of NAFAKA Project Phase 2
Overview of NAFAKA Project Phase 2
africa-rising
 
A Study of the Sales and Distribution System at AMUL
A Study of the Sales and Distribution System at AMULA Study of the Sales and Distribution System at AMUL
A Study of the Sales and Distribution System at AMUL
RAJAT GARG
 
SDM1_Group7_Amul
SDM1_Group7_AmulSDM1_Group7_Amul
SDM1_Group7_AmulRAJAT GARG
 
MANAGEMENT CONTROL SYSTEM - HML
MANAGEMENT CONTROL SYSTEM - HMLMANAGEMENT CONTROL SYSTEM - HML
MANAGEMENT CONTROL SYSTEM - HML
Sambit Mishra
 
Ppt on Organic Farming B Plan.
Ppt on Organic Farming B Plan.Ppt on Organic Farming B Plan.
Ppt on Organic Farming B Plan.
sourabh kumawat
 
Farming Budha
Farming BudhaFarming Budha
Farming Budha
brand44
 
Company background
Company backgroundCompany background
Company background
Shubham Singh
 
The status of conservation agriculture in beira corridor mozambique
The status of conservation agriculture in beira corridor   mozambiqueThe status of conservation agriculture in beira corridor   mozambique
The status of conservation agriculture in beira corridor mozambique
African Conservation Tillage Network
 
Ron Strolic organic marketing barriers
Ron Strolic organic marketing barriersRon Strolic organic marketing barriers
Ron Strolic organic marketing barrierstinadora
 

Similar to IFPRI - Workshop on Best Practices in Contract Farming: Challenges and Opportunities in Nepal - Lessons from the Success of Cargill in Sri Lanka - Haridas Fernando (20)

Linking Smallholder Farmers to Markets: International Lessons
Linking Smallholder Farmers to Markets: International LessonsLinking Smallholder Farmers to Markets: International Lessons
Linking Smallholder Farmers to Markets: International Lessons
 
subhiksha
subhikshasubhiksha
subhiksha
 
Coco fresh manendra shukla
Coco fresh manendra shuklaCoco fresh manendra shukla
Coco fresh manendra shukla
 
Improvement of supply chain of organic farming
Improvement of supply chain of organic farming Improvement of supply chain of organic farming
Improvement of supply chain of organic farming
 
Presentation on Feasibility Report of setting up a Fruit Stall
Presentation on Feasibility Report of setting up a Fruit StallPresentation on Feasibility Report of setting up a Fruit Stall
Presentation on Feasibility Report of setting up a Fruit Stall
 
Financing Local Sourcing Initiatives in Ghana: Partnerships that Work
Financing Local Sourcing Initiatives in Ghana: Partnerships that WorkFinancing Local Sourcing Initiatives in Ghana: Partnerships that Work
Financing Local Sourcing Initiatives in Ghana: Partnerships that Work
 
Maziwa Zaidi (More Milk) in Tanzania―Best-bet technologies and innovations: A...
Maziwa Zaidi (More Milk) in Tanzania―Best-bet technologies and innovations: A...Maziwa Zaidi (More Milk) in Tanzania―Best-bet technologies and innovations: A...
Maziwa Zaidi (More Milk) in Tanzania―Best-bet technologies and innovations: A...
 
Value added agro
Value added agroValue added agro
Value added agro
 
Grenada AgriTourism Policy Setting Workshop : Raquel Peters " The aggregation...
Grenada AgriTourism Policy Setting Workshop : Raquel Peters " The aggregation...Grenada AgriTourism Policy Setting Workshop : Raquel Peters " The aggregation...
Grenada AgriTourism Policy Setting Workshop : Raquel Peters " The aggregation...
 
Ours Agro
Ours AgroOurs Agro
Ours Agro
 
Overview of NAFAKA Project Phase 2
Overview of NAFAKA Project Phase 2Overview of NAFAKA Project Phase 2
Overview of NAFAKA Project Phase 2
 
A Study of the Sales and Distribution System at AMUL
A Study of the Sales and Distribution System at AMULA Study of the Sales and Distribution System at AMUL
A Study of the Sales and Distribution System at AMUL
 
SDM1_Group7_Amul
SDM1_Group7_AmulSDM1_Group7_Amul
SDM1_Group7_Amul
 
15946_OLC_Brochure_web_version
15946_OLC_Brochure_web_version15946_OLC_Brochure_web_version
15946_OLC_Brochure_web_version
 
MANAGEMENT CONTROL SYSTEM - HML
MANAGEMENT CONTROL SYSTEM - HMLMANAGEMENT CONTROL SYSTEM - HML
MANAGEMENT CONTROL SYSTEM - HML
 
Ppt on Organic Farming B Plan.
Ppt on Organic Farming B Plan.Ppt on Organic Farming B Plan.
Ppt on Organic Farming B Plan.
 
Farming Budha
Farming BudhaFarming Budha
Farming Budha
 
Company background
Company backgroundCompany background
Company background
 
The status of conservation agriculture in beira corridor mozambique
The status of conservation agriculture in beira corridor   mozambiqueThe status of conservation agriculture in beira corridor   mozambique
The status of conservation agriculture in beira corridor mozambique
 
Ron Strolic organic marketing barriers
Ron Strolic organic marketing barriersRon Strolic organic marketing barriers
Ron Strolic organic marketing barriers
 

More from International Food Policy Research Institute- South Asia Office

8. Dr Rao.pdf
8. Dr Rao.pdf8. Dr Rao.pdf
13. Manish Patel.pdf
13. Manish Patel.pdf13. Manish Patel.pdf
15. Smita Sirohi.pdf
15. Smita Sirohi.pdf15. Smita Sirohi.pdf
6. CD Mayee.pdf
6. CD Mayee.pdf6. CD Mayee.pdf
10. Keshavulu_1.pdf
10. Keshavulu_1.pdf10. Keshavulu_1.pdf
12. Swati Nayak.pdf
12. Swati Nayak.pdf12. Swati Nayak.pdf
9. Malavika Dadlani_1.pdf
9. Malavika Dadlani_1.pdf9. Malavika Dadlani_1.pdf
7. Neeru Bhooshan.pdf
7. Neeru Bhooshan.pdf7. Neeru Bhooshan.pdf
4. Raj Ganesh.pdf
4. Raj Ganesh.pdf4. Raj Ganesh.pdf
11. Surinder K Tikoo_1.pdf
11. Surinder K Tikoo_1.pdf11. Surinder K Tikoo_1.pdf
3. DK Yadava.pdf
3. DK Yadava.pdf3. DK Yadava.pdf
14. Paresh Verma_1.pdf
14. Paresh Verma_1.pdf14. Paresh Verma_1.pdf
5. Ram Kaundinya.pdf
5. Ram Kaundinya.pdf5. Ram Kaundinya.pdf
1. Dr Anjani.pdf
1. Dr Anjani.pdf1. Dr Anjani.pdf
2. David Spielman.pdf
2. David Spielman.pdf2. David Spielman.pdf
GFPR 2021 South Asia Launch Ppt - Dr. Shahidur Rashid
GFPR 2021 South Asia Launch Ppt - Dr. Shahidur RashidGFPR 2021 South Asia Launch Ppt - Dr. Shahidur Rashid
GFPR 2021 South Asia Launch Ppt - Dr. Shahidur Rashid
International Food Policy Research Institute- South Asia Office
 
GFPR 2021 South Asia Launch Ppt - Dr. Johan Swinnen
GFPR 2021 South Asia Launch Ppt - Dr. Johan SwinnenGFPR 2021 South Asia Launch Ppt - Dr. Johan Swinnen
GFPR 2021 South Asia Launch Ppt - Dr. Johan Swinnen
International Food Policy Research Institute- South Asia Office
 
Book Launch : Agricultural Transformation in Nepal: Trends, Prospects and Pol...
Book Launch : Agricultural Transformation in Nepal: Trends, Prospects and Pol...Book Launch : Agricultural Transformation in Nepal: Trends, Prospects and Pol...
Book Launch : Agricultural Transformation in Nepal: Trends, Prospects and Pol...
International Food Policy Research Institute- South Asia Office
 
Understanding the landscape of pulse policy in India and implications for trade
Understanding the landscape of pulse policy in India and implications for tradeUnderstanding the landscape of pulse policy in India and implications for trade
Understanding the landscape of pulse policy in India and implications for trade
International Food Policy Research Institute- South Asia Office
 

More from International Food Policy Research Institute- South Asia Office (20)

8. Dr Rao.pdf
8. Dr Rao.pdf8. Dr Rao.pdf
8. Dr Rao.pdf
 
13. Manish Patel.pdf
13. Manish Patel.pdf13. Manish Patel.pdf
13. Manish Patel.pdf
 
15. Smita Sirohi.pdf
15. Smita Sirohi.pdf15. Smita Sirohi.pdf
15. Smita Sirohi.pdf
 
6. CD Mayee.pdf
6. CD Mayee.pdf6. CD Mayee.pdf
6. CD Mayee.pdf
 
10. Keshavulu_1.pdf
10. Keshavulu_1.pdf10. Keshavulu_1.pdf
10. Keshavulu_1.pdf
 
12. Swati Nayak.pdf
12. Swati Nayak.pdf12. Swati Nayak.pdf
12. Swati Nayak.pdf
 
16. Dr Anjani.pdf
16. Dr Anjani.pdf16. Dr Anjani.pdf
16. Dr Anjani.pdf
 
9. Malavika Dadlani_1.pdf
9. Malavika Dadlani_1.pdf9. Malavika Dadlani_1.pdf
9. Malavika Dadlani_1.pdf
 
7. Neeru Bhooshan.pdf
7. Neeru Bhooshan.pdf7. Neeru Bhooshan.pdf
7. Neeru Bhooshan.pdf
 
4. Raj Ganesh.pdf
4. Raj Ganesh.pdf4. Raj Ganesh.pdf
4. Raj Ganesh.pdf
 
11. Surinder K Tikoo_1.pdf
11. Surinder K Tikoo_1.pdf11. Surinder K Tikoo_1.pdf
11. Surinder K Tikoo_1.pdf
 
3. DK Yadava.pdf
3. DK Yadava.pdf3. DK Yadava.pdf
3. DK Yadava.pdf
 
14. Paresh Verma_1.pdf
14. Paresh Verma_1.pdf14. Paresh Verma_1.pdf
14. Paresh Verma_1.pdf
 
5. Ram Kaundinya.pdf
5. Ram Kaundinya.pdf5. Ram Kaundinya.pdf
5. Ram Kaundinya.pdf
 
1. Dr Anjani.pdf
1. Dr Anjani.pdf1. Dr Anjani.pdf
1. Dr Anjani.pdf
 
2. David Spielman.pdf
2. David Spielman.pdf2. David Spielman.pdf
2. David Spielman.pdf
 
GFPR 2021 South Asia Launch Ppt - Dr. Shahidur Rashid
GFPR 2021 South Asia Launch Ppt - Dr. Shahidur RashidGFPR 2021 South Asia Launch Ppt - Dr. Shahidur Rashid
GFPR 2021 South Asia Launch Ppt - Dr. Shahidur Rashid
 
GFPR 2021 South Asia Launch Ppt - Dr. Johan Swinnen
GFPR 2021 South Asia Launch Ppt - Dr. Johan SwinnenGFPR 2021 South Asia Launch Ppt - Dr. Johan Swinnen
GFPR 2021 South Asia Launch Ppt - Dr. Johan Swinnen
 
Book Launch : Agricultural Transformation in Nepal: Trends, Prospects and Pol...
Book Launch : Agricultural Transformation in Nepal: Trends, Prospects and Pol...Book Launch : Agricultural Transformation in Nepal: Trends, Prospects and Pol...
Book Launch : Agricultural Transformation in Nepal: Trends, Prospects and Pol...
 
Understanding the landscape of pulse policy in India and implications for trade
Understanding the landscape of pulse policy in India and implications for tradeUnderstanding the landscape of pulse policy in India and implications for trade
Understanding the landscape of pulse policy in India and implications for trade
 

Recently uploaded

CLASS 11 CBSE B.St Project AIDS TO TRADE - INSURANCE
CLASS 11 CBSE B.St Project AIDS TO TRADE - INSURANCECLASS 11 CBSE B.St Project AIDS TO TRADE - INSURANCE
CLASS 11 CBSE B.St Project AIDS TO TRADE - INSURANCE
BhavyaRajput3
 
The Accursed House by Émile Gaboriau.pptx
The Accursed House by Émile Gaboriau.pptxThe Accursed House by Émile Gaboriau.pptx
The Accursed House by Émile Gaboriau.pptx
DhatriParmar
 
Francesca Gottschalk - How can education support child empowerment.pptx
Francesca Gottschalk - How can education support child empowerment.pptxFrancesca Gottschalk - How can education support child empowerment.pptx
Francesca Gottschalk - How can education support child empowerment.pptx
EduSkills OECD
 
The French Revolution Class 9 Study Material pdf free download
The French Revolution Class 9 Study Material pdf free downloadThe French Revolution Class 9 Study Material pdf free download
The French Revolution Class 9 Study Material pdf free download
Vivekanand Anglo Vedic Academy
 
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdf
Welcome to TechSoup   New Member Orientation and Q&A (May 2024).pdfWelcome to TechSoup   New Member Orientation and Q&A (May 2024).pdf
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdf
TechSoup
 
Model Attribute Check Company Auto Property
Model Attribute  Check Company Auto PropertyModel Attribute  Check Company Auto Property
Model Attribute Check Company Auto Property
Celine George
 
Additional Benefits for Employee Website.pdf
Additional Benefits for Employee Website.pdfAdditional Benefits for Employee Website.pdf
Additional Benefits for Employee Website.pdf
joachimlavalley1
 
Synthetic Fiber Construction in lab .pptx
Synthetic Fiber Construction in lab .pptxSynthetic Fiber Construction in lab .pptx
Synthetic Fiber Construction in lab .pptx
Pavel ( NSTU)
 
Digital Tools and AI for Teaching Learning and Research
Digital Tools and AI for Teaching Learning and ResearchDigital Tools and AI for Teaching Learning and Research
Digital Tools and AI for Teaching Learning and Research
Vikramjit Singh
 
Honest Reviews of Tim Han LMA Course Program.pptx
Honest Reviews of Tim Han LMA Course Program.pptxHonest Reviews of Tim Han LMA Course Program.pptx
Honest Reviews of Tim Han LMA Course Program.pptx
timhan337
 
Guidance_and_Counselling.pdf B.Ed. 4th Semester
Guidance_and_Counselling.pdf B.Ed. 4th SemesterGuidance_and_Counselling.pdf B.Ed. 4th Semester
Guidance_and_Counselling.pdf B.Ed. 4th Semester
Atul Kumar Singh
 
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
Levi Shapiro
 
Mule 4.6 & Java 17 Upgrade | MuleSoft Mysore Meetup #46
Mule 4.6 & Java 17 Upgrade | MuleSoft Mysore Meetup #46Mule 4.6 & Java 17 Upgrade | MuleSoft Mysore Meetup #46
Mule 4.6 & Java 17 Upgrade | MuleSoft Mysore Meetup #46
MysoreMuleSoftMeetup
 
Biological Screening of Herbal Drugs in detailed.
Biological Screening of Herbal Drugs in detailed.Biological Screening of Herbal Drugs in detailed.
Biological Screening of Herbal Drugs in detailed.
Ashokrao Mane college of Pharmacy Peth-Vadgaon
 
Language Across the Curriculm LAC B.Ed.
Language Across the  Curriculm LAC B.Ed.Language Across the  Curriculm LAC B.Ed.
Language Across the Curriculm LAC B.Ed.
Atul Kumar Singh
 
Thesis Statement for students diagnonsed withADHD.ppt
Thesis Statement for students diagnonsed withADHD.pptThesis Statement for students diagnonsed withADHD.ppt
Thesis Statement for students diagnonsed withADHD.ppt
EverAndrsGuerraGuerr
 
The Challenger.pdf DNHS Official Publication
The Challenger.pdf DNHS Official PublicationThe Challenger.pdf DNHS Official Publication
The Challenger.pdf DNHS Official Publication
Delapenabediema
 
Introduction to AI for Nonprofits with Tapp Network
Introduction to AI for Nonprofits with Tapp NetworkIntroduction to AI for Nonprofits with Tapp Network
Introduction to AI for Nonprofits with Tapp Network
TechSoup
 
TESDA TM1 REVIEWER FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...
TESDA TM1 REVIEWER  FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...TESDA TM1 REVIEWER  FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...
TESDA TM1 REVIEWER FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...
EugeneSaldivar
 
CACJapan - GROUP Presentation 1- Wk 4.pdf
CACJapan - GROUP Presentation 1- Wk 4.pdfCACJapan - GROUP Presentation 1- Wk 4.pdf
CACJapan - GROUP Presentation 1- Wk 4.pdf
camakaiclarkmusic
 

Recently uploaded (20)

CLASS 11 CBSE B.St Project AIDS TO TRADE - INSURANCE
CLASS 11 CBSE B.St Project AIDS TO TRADE - INSURANCECLASS 11 CBSE B.St Project AIDS TO TRADE - INSURANCE
CLASS 11 CBSE B.St Project AIDS TO TRADE - INSURANCE
 
The Accursed House by Émile Gaboriau.pptx
The Accursed House by Émile Gaboriau.pptxThe Accursed House by Émile Gaboriau.pptx
The Accursed House by Émile Gaboriau.pptx
 
Francesca Gottschalk - How can education support child empowerment.pptx
Francesca Gottschalk - How can education support child empowerment.pptxFrancesca Gottschalk - How can education support child empowerment.pptx
Francesca Gottschalk - How can education support child empowerment.pptx
 
The French Revolution Class 9 Study Material pdf free download
The French Revolution Class 9 Study Material pdf free downloadThe French Revolution Class 9 Study Material pdf free download
The French Revolution Class 9 Study Material pdf free download
 
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdf
Welcome to TechSoup   New Member Orientation and Q&A (May 2024).pdfWelcome to TechSoup   New Member Orientation and Q&A (May 2024).pdf
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdf
 
Model Attribute Check Company Auto Property
Model Attribute  Check Company Auto PropertyModel Attribute  Check Company Auto Property
Model Attribute Check Company Auto Property
 
Additional Benefits for Employee Website.pdf
Additional Benefits for Employee Website.pdfAdditional Benefits for Employee Website.pdf
Additional Benefits for Employee Website.pdf
 
Synthetic Fiber Construction in lab .pptx
Synthetic Fiber Construction in lab .pptxSynthetic Fiber Construction in lab .pptx
Synthetic Fiber Construction in lab .pptx
 
Digital Tools and AI for Teaching Learning and Research
Digital Tools and AI for Teaching Learning and ResearchDigital Tools and AI for Teaching Learning and Research
Digital Tools and AI for Teaching Learning and Research
 
Honest Reviews of Tim Han LMA Course Program.pptx
Honest Reviews of Tim Han LMA Course Program.pptxHonest Reviews of Tim Han LMA Course Program.pptx
Honest Reviews of Tim Han LMA Course Program.pptx
 
Guidance_and_Counselling.pdf B.Ed. 4th Semester
Guidance_and_Counselling.pdf B.Ed. 4th SemesterGuidance_and_Counselling.pdf B.Ed. 4th Semester
Guidance_and_Counselling.pdf B.Ed. 4th Semester
 
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
 
Mule 4.6 & Java 17 Upgrade | MuleSoft Mysore Meetup #46
Mule 4.6 & Java 17 Upgrade | MuleSoft Mysore Meetup #46Mule 4.6 & Java 17 Upgrade | MuleSoft Mysore Meetup #46
Mule 4.6 & Java 17 Upgrade | MuleSoft Mysore Meetup #46
 
Biological Screening of Herbal Drugs in detailed.
Biological Screening of Herbal Drugs in detailed.Biological Screening of Herbal Drugs in detailed.
Biological Screening of Herbal Drugs in detailed.
 
Language Across the Curriculm LAC B.Ed.
Language Across the  Curriculm LAC B.Ed.Language Across the  Curriculm LAC B.Ed.
Language Across the Curriculm LAC B.Ed.
 
Thesis Statement for students diagnonsed withADHD.ppt
Thesis Statement for students diagnonsed withADHD.pptThesis Statement for students diagnonsed withADHD.ppt
Thesis Statement for students diagnonsed withADHD.ppt
 
The Challenger.pdf DNHS Official Publication
The Challenger.pdf DNHS Official PublicationThe Challenger.pdf DNHS Official Publication
The Challenger.pdf DNHS Official Publication
 
Introduction to AI for Nonprofits with Tapp Network
Introduction to AI for Nonprofits with Tapp NetworkIntroduction to AI for Nonprofits with Tapp Network
Introduction to AI for Nonprofits with Tapp Network
 
TESDA TM1 REVIEWER FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...
TESDA TM1 REVIEWER  FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...TESDA TM1 REVIEWER  FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...
TESDA TM1 REVIEWER FOR NATIONAL ASSESSMENT WRITTEN AND ORAL QUESTIONS WITH A...
 
CACJapan - GROUP Presentation 1- Wk 4.pdf
CACJapan - GROUP Presentation 1- Wk 4.pdfCACJapan - GROUP Presentation 1- Wk 4.pdf
CACJapan - GROUP Presentation 1- Wk 4.pdf
 

IFPRI - Workshop on Best Practices in Contract Farming: Challenges and Opportunities in Nepal - Lessons from the Success of Cargill in Sri Lanka - Haridas Fernando

  • 1. The Triple Delight “Cargills-Sri Lanka” Model Fresh Produce Value Chain Haridas Fernando - DM.PGDM.MBA Deputy General Manager(Agri Business) Cargills Ceylon Plc., Sri Lanka
  • 2. Cargills Group CCPLC (Revenue of USD 440 Mn in 2013/14) Cargills Quality Foods Cargills Foods Company Dairy Meats Fruit processing Biscuits Distribution Restaurants Private Label Cargills Bank (Associate)
  • 3. Our Philosophy Our Mission Serve the rural community, our customers and „FOOD WITH LOVE‟ BASED ON OUR THREE MAIN PRINCIPLES OF Enhancing youth skills Reducing the cost of living Bridging regional disparities
  • 4. Conventional supply chain and Cargills Fresh Produce Value Chain
  • 6. Matching needs… Stable market Free From Middlemen More opportunity to grow Stable Supply Free From Middlemen More opportunity to grow Farmer Buyer
  • 7. The Mismatch Highest possible price expects a Buyer for full production When the harvest is ready Irrespective of quality Up-front payment Farm-gate selling In-put finance Lowest possible price Buys only required quantity at required quality supplied just in time Standard credit period factory-gate buying Risk aversion BUYERFARMER
  • 8. Cargills Private- Public Partnership Model Producer group Direct market for quality produce backed by technical/extension assistance and funds for further development Service organization Fund processing facility at village-level and in puts specified by the retailer Retailer/Processor manage the facility, purchase fresh and value added produce contribute to farmer welfare/development
  • 10. Sustainable value for farmer and consumer Extract from “Production Resources in Lagging Regions”, World Bank Report : Case Study- Sri Lanka
  • 11. Sustainable value for farmer and consumer Extract from “Production Resources in Lagging Regions”, World Bank Report : Case Study- Sri Lanka 25 45.5 Cargills Supply chain post harvest waste is only 4% compared to the national average of 40%
  • 12. Cargills Value chain-a New Paradigm Primary activities – Market related Conventional Supply Chain Modern trade Value Chain Inbound logistics Farmers supply what ever produce to the immediate intermediary who will in return pass down to the link in the chain Produce is purchased on a pre-planned schedule based on the sales forecast predicting daily customer needs. Operations Farmers are highly product oriented Clueless on market forecasting Conventional packing/transportation Farmers are market oriented, Improved packaging Transportation in cool trucks Services Purchase of produce on credit, Price not known until they are auctioned No valid receipt for goods Purchases on up-front cash Pre agreed price, Receipt is issued to the farmer indicating the weight, price and etc.
  • 13. Cargills Value chain-a New Paradigm Primary activities – Market related Conventional Supply Chain Modern trade Value Chain Outbound logistics Produce auctioned at the highest offer. Price merely decide by the supply/demand Goods replenished on system generated orders in early morning hours. Sales and Marketing Goods purchased by the jobbers distribute to their retail vendors. Retailers clean and do primary processing and display in their roadside outlets to attract the customers Fresh produce received at the outlets are displayed according to planograms of the outlets in serve-over counters. Customers are allowed to touch and feel the quality of the produce and are free to choose their goods
  • 14. Cargills Value chain-a New Paradigm Support Activities Conventional Supply Chain Modern trade Value Chain Procurement The wholesaler gathers the maximum volume of produce at whatever the quality The central processing unit arrange purchases from the respective collection center at correct quality, correct quantity at the correct price. Technology Hardly any technology applied as the whole transaction process is focus on the least cost and high volume Farmers are trained and guided by the Company. Human Resource Management Independent actors who work for themselves. Every function is based on commission or piece rate. Employees are highly trained in post harvest technology, Information Technology, customer service etc Infrastructure Rigid transfer process with a priority on speed but highly inefficient in quality and transparency. The set up is well structured based on the company philosophy, transactions are highly transparent and fair to all stakeholders.
  • 15. Collection Centre- Allawedi, Jaffna Over 200 farmers directly benefiting Technical inputsPartnered by USAID
  • 16. Collection Centre- Thanamalwila  Collection center was set up by World Vision USDA project  Over 400 farmers supply their produce direct to Cargills  Rs 3,000,000.00 was accumulated in the Farmer welfare fund in 2013.  75 students from farmer families were awarded scholarships in 2013.
  • 17. Collection Centre- Norochcholai  Partnership with World Vision  Collection center for high quality vegetable and fruits  Over 300 farmers directly benefitted  Over five tons of produce is purchased daily
  • 18. New Processing Plant in Kilinochchi Cargills Kist Fruit & Vegetable Processing Factory in Ariviyal Nagar, Kilinochchi – Direct Permanent employment given for approximately 60 persons mainly women (majority of them are widows). Soft opening held on 23rd Oct 2013. Total employment to be created- 150.
  • 19. Benefits to Farmer Farmer friendly extension service Better price Free from middlemen Cropping calendar
  • 20. Benefits to consumers Affordable price Wider range and availability Safe and fresh produce
  • 21. Benefits to the Company ▪ Higher margin due to reduced wastage ▪ High Customer satisfaction ▪ Enhances Corporate image ▪ Fulfillment of social responsibility
  • 22. Success ▪ Reduction of transport loss from 40% to 3% ▪ Elimination of middlemen ▪ Improvement in quality and sales volumes ▪ Higher price to the farmer while offering low price to consumer ▪ Paradigm shift to Public-Private Partnership ▪ Image boost to Company and the Service Organization Partner.
  • 23. 23 Changing Lives….Touching Hearts Training and technical advise New technology for sustainable agriculture Education scholarships through farmer community funds Better quality of life for regional Sri Lanka
  • 24. Next Move………From CSR to TBL ▪ Save our Soil program. ▪ Partnered by Department of Agriculture an island wide campaign to educate farmers on prudent use of agro chemicals and fertiliser to minimise the soil water contamination from agro chemicals application ▪ Soil test based fertilizer recommendations to individual farmers ▪ Joint training /follow up programs ▪ GAP ▪ Initiated awareness programs on Good Agricultural Practices ▪ Record keeping on all cultivation activities ▪ Traceability of origin through labelling produce by farmer names ▪ Development of „Safe Produce‟ with GAP certification
  • 25. Cargills Approach at glance Input finance Donor funds/Bank loans Fame gate buying Regional collection centers in collaboration with Govt/NGO projects Payments Transparent pricing/up front payments Fair pricing Purchase 50-70% production at 15-20% higher than market. Minimum guaranteed price 20% above COP Higher returns to farmers Technical guidance for market oriented cultivation calendar. CSR Financial support to farmer children, scholarships ,farmer insurance, and etc. TBL Guidance on good agricultural practices to ensure prudent use of fertilizer and agro chemicals by farmers.