Collective marketing ppt

Creating Sustainable

Livelihoods for the Poor

Collective Marketing Model

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 organisedprivate players

�Lack of access to formal finance

�Minimal reach of organized private retail chains

Collective Marketing

Raw Produce

Raw Produce

Minimum Value

Addition

Semi Finished

FinishedTown / City

Town

Village

The Product Pyramid


10 – 15 %10 – 15 %

5 -10%5 -10%

5%5%

5%5%

Group Working

Capital Loan

Group Working

Capital Loan

Value Chain

Distant MarketDistant Market

Nearby MarketNearby Market

Local Value Add

Processing

Local Value Add

Processing

CollectivizationCollectivization

Raw Produce Raw Produce


Value

Addition

Value

Addition

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


62Districts

3000200No of SHG members

200 lacs5 LacsTurn over (Rs)

Vegetables, Niger, Cow pea,

Cashew, Tamarind, Mango jelly

local variety), Vegetables, Hill

broom…

Minor Millets, Cotton,

Onion, Madhuca indica,

Buchania Langan

Products

50020No of Villages

+ Kalahandi, Koraput, Gajpati,

Kandhamal

Balangir, NuapadaCoverage (districts)

Expanded to Started inParticulars

Initiated in most backward Districts of Orissa

Coverage


Approach to Collective Marketing

Map produce having marketable surplus Map produce having marketable surplus

Group

Orientation

• Concept Sharing

• Build Capacity

• Systems in place

• Business plan

• Financial linkage

• Procurement

Group

Orientation

• Concept Sharing

• Build Capacity

• Systems in place

• Business plan

• Financial linkage

• Procurement

Market

Infrastructure

•Drying

Platform

•Weighing

Scale

•Logistics

•Quality check

Market

Infrastructure

•Drying

Platform

•Weighing

Scale

•Logistics

•Quality check

Market

Linkage

•Search market

•Negotiate with

trader

•Linkage

•Profit sharing

Market

Linkage

•Search market

•Negotiate with

trader

•Linkage

•Profit sharing

Planning for the next produce Planning for the next produce


Collective Marketing – The Preparatory Process

Training Sensitization

Sensitization Exposure


Harvesting Collection

Drying Desheling

Collective Marketing – The Produce Process


Storage

Packing

Weighing

Negotiation with Trader

Collective Marketing – The Handling Process


Sales Event Lifting of Product

Receiving Money from Trader Marketing of Hill Broom

Collective Marketing – The Selling Process


Overall Benefits of Intervention

Higher value for produce Higher value for produce

Better negotiating power in marketBetter negotiating power in market

Better understanding of market dynamics Better understanding of market dynamics

Marketing infrastructure createdMarketing infrastructure created


Thank You!