Shop@Farm aims to address issues with urban organic farming and small landholding farmers by cultivating organic vegetables on unused land within residential complexes. Produce will be sold through on-site retail stores with minimal margins, providing farmers higher profits. The model generates domestic markets for organic farmers while ensuring urban residents convenient access to affordable, certified organic produce. It organizes the farming sector by assisting farmers with organic certification and legal awareness. Over three phases, Shop@Farm plans to expand to other institutions with unused land and establish an online retail presence.
2. PROBLEMS FACED BY URBAN POPULATION
Land Usability and Maintainace:
Every residential township has to allot certain
percentage of land as free space.
Free space starts of as park or garden but turns into
a dump-yard due to lack of maintenance.
Unavailability of Organic Vegetables
Most vegetables artificially produced, with high
content of fertilizers and pesticides
Organic products unavailable or scarce
Time constraint for people to visit vegetable market
Unhygienic Subji-Mandis
3. PROBLEM FACED BY SMALL LAND HOLDING FARMERS
Problems
• Heavily unorganized sector
• Most products organic but unaware of legal certifications
• Poor domestic market
• Small profit margin to organic farmers
o Mediator operations (10 to 25% premium to farmers, 100 or 300%
to consumers)
o High transportation charges (approximately 30% of final price)
India produces 3.88 MT of certified organic products of which 69837 MT was exported to EU,
US, Australia, Canada, Japan, Switzerland, South Africa and Middle East. The export
realization was around 157.22 million US $ registering a 33% growth over the previous year.
Organic products include Basmati rice, Pulses, Honey, Tea, Spices, Coffee, Oil Seeds, Fruits,
Processed food, Cereals, Herbal medicines and their value added products.
4. SOLUTION
•Provide safe and fresh organic vegetables.
•Cultivate vegetables in front of customers and pluck them directly from farm.
•Ensure financial and technical help to farmers who switch to organic farming.
Aim
•We will employ certified organic farmers to cultivate on farm land which is basically the free
space within the residential complex.
•Since the produce from this farm will be insufficient to meet the demands of all the residents,
we’ll also outsource vegetables produced organically on farms located on city outskirts.
•These vegetables will be sold in retail stores located inside the residential complex under
organic section, with minimum margin.
Implementaion
•Premium vegetables: Customers have an option to pluck vegetables directly from farm on
payment of premium charges.
•Outsourced vegetables are sold with minimum margin so as to provide maximum profit to
farmers.
•Residents will be ensured on the quality of products.
•We can very easily provide free home delivery as retail stores will be in the same residential
complex.
Features
SHOP@FARM: Chain of outlets selling organic farm products on the farm itself
5. Premium
Charges
Products
Certification
Products
-Generating domestic
market to organic
farmers
-Providing legal
awareness (like
NPOP certification)
to farmers
-Zero transportation
and thus more profit
margins
-Organises Farming
Sector
-Social security
Rural
Farmers
-Marginal Profit from
Sale of Products.
-Major Profit form
Premium Charged
products grown in
Shop@farm.
- Revenue from
Premium products
spent on providing
organic certification
to farmers, logistics
& operational
charges
Shop
@
Farm
-Availability of organic
products at much
cheaper price.
- Premium Charges
for “Hand-Pluck”
fresh vegetables.
-Free of cost
maintenance of Public
and Society parks
-Shop@farm as a
refreshment bio-park
- Freedom from
crowded Subji-mandi
Urban
Population
WORKING AND SUSTAINABILITY
6. Phase-III
- We have to ensure that organic certifications to farmers cultivating in small fields on city outskirts whose
products we have been outsourcing for sale in our retail stores.
- We have to obtain organic certification for all our farms established inside residential complexes.
Phase-II
-We plan to extend to other townships like academic institutions (IITs or Sainik Schools), hospitals etc which
have quite a lot of unutilized land.
-We aim for a catchment area of 4 sq km, spread on an acre with a potential customer base of 38,000
customers.
-We will have an e-Window for our retail store.
Phase- I
- Acquire 4000 sq feet land for farming
- Mainly free spaces in residential townships and societies.
- Employ local organic farmer for in farm production of premium vegetables.
- Outsourcing organic products from outskirts.
SCALABILITY
7. FUNDS MANAGEMENT
Totalfunding
required Organisation
Cost
Salaries
Marketing &
Promotion
Operational
Expenses
Logistics Cost
Buildings
Transportation
Technology
cost
Hardware &
Equipment
Seading
4,76,000 INR
Per Annum
12,00,000 INR
Per Annum
2,00,000 INR
Per Annum
We require funding only in phase one of our operation. During this period, we
will be working on two or three farms. After this, we will enter in start making
profit, thus attaining self-sustainability.
8. ORGANIZATIONAL STRUCTURE
Central
Management
Cheif
Executive
Officer
Finance
Marketing
team
Legal Dept HR
Outreach
Team
Zonal Management
Team
Zonal Head
Finance
(accounting
and fund
allocaion)
Recruitment
Team
(Employing
Organic
Farmers)
Marketing
Team
(Reaching
Builders)
Sector Incharge
Venue Coordinators
Manager,
supplychain of
outsourced
goods
Manager,
retail outlet
Manager,
organic
certifications of
locals
9. CHALLENGES
• Farmers are still very conservative. They don’t like to
practice contract farming.
• Builders might not be willing to incorporate shop@farm.
Risk
factors
• We will have to start off with certified organic farmers
and provide them enough incentives. They will be
provided decent wages and a place to live inside the
complex itself.
• Builders will have to be convinced about the success of
the plan. Incorporating a bio-farm in their housing
society can act as a huge value addition and can
increase the price of the apartment.
Mitigation: