Collective marketing ppt
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Transcript of 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
Collective Marketing
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
Collective Marketing
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
Collective Marketing
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
Collective Marketing
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
Collective Marketing – The Preparatory Process
Training Sensitization
Sensitization Exposure
Collective Marketing
Harvesting Collection
Drying Desheling
Collective Marketing – The Produce Process
Collective Marketing
Storage
Packing
Weighing
Negotiation with Trader
Collective Marketing – The Handling Process
Collective Marketing
Sales Event Lifting of Product
Receiving Money from Trader Marketing of Hill Broom
Collective Marketing – The Selling Process
Collective Marketing
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
Collective Marketing
Thank You!