Green Dunia’s Mission: ‘to create support systems and market place for farmer producer organizations and livelihood community organizations to increase to reach out to market and strengthen their livelihoods’.
‘Increasing market access to farmers to get a better share of consumer price’ was one of the major agenda of Centre for Sustainable Agriculture (CSA). In this process, several efforts were made in the form of weekly farmers market, farmers’ producer organizations (cooperatives and producer companies) which can plan the production, aggregate the produce for selling and a consumer cooperative to help in reaching out to consumers directly. While these initiatives were all successful by themselves they remained small and could not achieve the scale due to lack of capital for investment on infrastructure, working capital and professional human resources. Various campaigns in the last five years have increased the market potential for organic/NPM (pesticide free) produce. But the advantage is accruing neither for the farmers nor for the consumers in terms of prices or ensured quality as the supply chain is not strengthened.
Similar efforts have been made by several organizations to strengthen the community organizations to directly reach out to the markets. While few could become successful, many in agriculture and food could not become successful due to lack of scale, infrastructure, working capital, professional skills to handle markets.
In the recent past, organic food markets are growing in the recent times. The growing awareness on safer and health food has brought in several new players entering into retail markets. However, even these markets the higher price premium charged from customers never reaches the producers in the same proportion.
In this context, some of us who are working with farmers and farmers organizations have established ‘Green Dunia Agricultural Marketing pvt ltd’ as a for profit social enterprise which helps in consolidating and strengthening safe and healthy food supply chain. Green Dunia Marketing Agency will work with farmers’ producer organizations, weaving communities and other livelihood based community organisations in strengthening the supply chain to help to market their produce and increase their share in the consumer price. Similarly, the marketing agency will also help the community organizations in creating common infrastructure, access to capital, access to ICT tools and communication material.
Integrated Processing Units: As a first step, the Marketing Agency will establish an integrated food processing unit near Hyderabad at Kallem, Warangal dist where organically grown food from Sahaja Aharam and other producer organizations can be processed and packed. These unit will offer processing, packing and storage services to the farmer producer organizations. These units will have the following
Primary Processing Units
- Paddy huller
- Millet Processing unit
- Pulses processing unit
- Destoner and fine cleaner
- Cold press oil unit
- Chilli/Turmeric powdering unit
Secondary Processing Units (to make ready to cook products)
- Atta/Suji making unit
- Solar dehydrating unit
- Flaking machine
- Milk chilling unit
- Vegetable n Fruit processing unit
Tertiary Processing unit (to make ready to eat products)
- 20000 sq ft storage facility
- 10 tons solar cold storage unit
Primary processing, storage etc will be offered as a service to the Sahaja Aharam Producer Company member coops to get the benefit of the value addition.
Secondary processing would be directly handled by the Green Dunia initially and in expansion it will collaborate with the Sahaja aharam producer company.
eKrishi: IT tools for farmers. It would be a multi-modular system which will have
- knowledge management module: to help farmers on production front
- FPO management: for managing cooperatives
- e-Mandi: for marketing
- Quality management and source tracing: PGS and ICS data management and source tracing
- Agriwatch: tracking the public support and public access.
Some of them would be revenue generating but most of them would be free for use.
- Bioproducts production
- Farmer Service Centres which will have custom hiring centres, farm advisory, input sales, procurement, financial services
Legal Status: Green Dunia Agricultural Marketing Pvt Ltd is registered as a private limited company with a paid up capital of Rs. 50.00 lakhs and authorized capital of Rs. 100.00 lakhs.
Sahaja Aharam brand: ‘Sahaja Aharam’ is a registered trade mark of CSA for organically/ecologically grown produce and the stores which sell them. The marketing agency will use the same brand for food in license agreement with CSA. Similarly, the Marketing Agency will tie up with other organizations to promote their brands.
Retailing: We will establish large format stores which include handlooms, handicrafts, medicinal herbs based products and other products from community based organizations in addition to ‘sahaja aharam’ food and nutritional counseling. The target would be to reach out to middle market working with existing retail players, promoting branded retail stores through franchising and ecommerce through web portal.
How you can invest?
Paid up share capital: The paid up share capital is Rs. 10.00 lakhs from the founders.
Authorized Share Capital: The authorized share capital is Rs. 100.00 lakhs (100,000 shares of Rs. 10 each). Individuals and community organizations registered under producer companies act can invest. Initially, social investors will have major share and gradually the farmer producer organizations and community organizations will increase their share as they grow and get strengthened.
Preferential Shares: Non convertible redeemable preferential shares of up to Rs. 90.00 lakhs would be issued for social investors.
Debentures: You can invest as soft loan at fixed interest of 5% per annum for fixed time.
Business model: With this capital the marketing agency would be in a position to offer services to several producer cooperatives to process, pack, store and sell their produce. The Marketing Agency will also offer one stop marketing solutions to the community organizations. A business turnover will grow up to 10 crores in a period of 5-6 years. The farmers will get a price benefit from 10-15 % over the conventional local markets while it would be available at an affordable price of 15-20% over the conventional food prices for the consumers.
Around 20-25% would be the operational costs and marketing agency is expected to breakeven in three years time.
Returns on investments are projected to be around 10-20% as dividends. The return on investments would also be quantified in terms of social and ecological benefits.
Strengths: CSA already works with 20 producer organizations in AP, Telangana and Maharastra directly and indirectly with many more in ecological farming.
- Strong models are already established and have thousands of farmers who have already shifted to ecological farming so has a strong producer base.
- ‘Sahaja Aharam’ as a brand has gained market value in the last five years and is running a store successfully in Hyderabad.
- Ability to bring in many more organizations involved in establishing and promoting ecological farming and establishing farmers organizations
- Working with governments of Maharashtra and Andhra Pradesh and NABARD to promote farmer producer organizations.
Weaknesses: working with Farmers producer organizations is still in nacent stage so needs more support to make a shift.
- Conventional food supply chain operates on higher subsidies and exploitation. Competing with them could be very difficult in terms of price comparisons by consumers.
- Knowledge and skills on marketing yet to be consolidated
- As a marketing enterprise built on a social and ecological concern the returns on investments in terms of
Opportunities: across the country there are many farmers’ producer organizations promoted by civil society organizations and governments. CSA with its unique strength on ‘Ecological Farming’ can help the FPOs to strengthen their production base
- The market for safe/healthy food is growing rapidly across the world.
- Public investments in more sustainable production will increase in future
- As it is a revenue model and do not depend on the grants, scope for expansion is also higher.
- Greater opportunities to reach out to markets in developed countries.
- Collaboration with other organisations
Threats: Seasonal problems, rapid shift towards GM crops, competition from other national and international players, entry of multi-national retails chains may bring in newer challenges.
The team would be lead by
Dr. G. V. Ramanjaneyulu with vast experience in establishing and promoting ecological farming and fighting for farmers cause
Mr. Bhabani Das with vast experience in working with farmers producers organizations
Supported by the dedicated team of CSA.