FieldFresh_final--Yale Site Feb 2011

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yale case 10-036 december 10, 2010

FieldFresh Foods

Could Baby Corn Be the Platform to Link Indian Farmers to the World?

Mukesh Pandey

K Sudhir

Raman Ahuja

Deepali Tewari



2 fieldfresh

A Second Green Revolution?



3 fieldfresh

Regulatory hurdles to horticulture

→ → → →



4 fieldfresh

FieldFresh

FieldFresh’s mission



5 fieldfresh

Sourcing models



6 fieldfresh

Logistics

Product experimentation



7 fieldfresh

Baby corn



8 fieldfresh

Markets

European markets

!”



9 fieldfresh

Indian consumers



10 fieldfresh

New Indian agri-business players



11 fieldfresh

Growing FieldFresh



12 fieldfresh

Endnotes

mailto:[email protected]



13 fieldfresh



14 fieldfresh

Exhibit 1: Distribution of Operational Land Holdings in India (2000–2001)

Percentages in brackets are % of column total

Category of holding

Number of

operational holdings(‘000)

Area operated

(‘000 hectares*)

Average size of

operational holding(hectares)

Marginal(less than 1 hectare)

76,122(63.0%*)

30,088(18.82%)

0.40

Small(1.0 to 2.0 hectares)

22,814(18.9%)

32,260(20.18%)

1.41

Semi-medium(2.0 to 4.0 hectares)

14,087(11.7%)

38,305(23.96%)

2.72

Medium(4.0 to 10.0 hectares)

6,568(5.4%)

38,125(23.84%)

5.80

Large

(10.0 hectares and above)

1,230

(1.02%)

21,124

(13.21%) 17.18

All holdings 120,822(100%)

159,903(100%)

1.32

Source: Adapted from “Distribution of Operational Holdings—All India, Agricultural Statistics at a Glance 2006, AgriculturalCensus Division, Ministry of Agriculture, Government of India.

*One hectare is approximately equal to 2.5 acres.



15 fieldfresh

Exhibit 2: Fresh Fruits in India, Major Producing States & Main Arrival Months

Percentages in brackets denote contribution of the concerned state to total production in India for the fruitcategory.

Crop Months of Market Arrival Major Producing States of India

Apple July to October Jammu & Kashmir (67.1)Himachal Pradesh (25.7)

Uttarakhand (6.7)

BananaMarch;

June to November

Tamilnadu (25.4)Maharashtra (18.9)

Gujarat (13.6), Andhra Pradesh (10.7)

Lemon January to April; June to December

Andhra Pradesh (34)Gujarat (14)

Orissa (9)Karnataka (8)

Orange November to MayMaharashtra (39),

Madhya Pradesh (31)Rajasthan (10)

Grapes February to JulyMaharashtra (75.3),

Karnataka (14.3),Tamilnadu (4.8)

Mango April to August

Uttar Pradesh (27.2), Andhra Pradesh (19.8),

Bihar (10.4),Karnataka (10.1)

Papaya February to June Andhra Pradesh (43.6),

Gujarat (19.9),

Karnataka (11.3)

Pineapple August to October; January to February

West Bengal (21.2) Assam (16.8)

Karnataka (13.9)Bihar (8.9)

Pomegranate February to AugustMaharashtra(68.1)Karnataka (17.1)

Andhra Pradesh (8)

Source: Indian Horticulture Database, Govt. of India, 2009



16 fieldfresh

Exhibit 3: Fresh Vegetables in India, Major Producing States & Main Arrival Months

Percentages in brackets denote contribution of the concerned state to total production in India for thevegetable category

Crop Months of Market Arrival Major Producing States of India

Brinjal (Eggplant) October to August

West Bengal (26.6)Orissa (18.9)Bihar (11.4)

Gujarat (10.1)

Cabbage October to February

West Bengal (29.7)Orissa (14.1)

Bihar (9.9) Assam (8.5)

Cauliflower November to February

West Bengal (26.7)Bihar (16)

Orissa (10.2)

Haryana (7.7)

Okra April to October

West Bengal (18.4)Bihar (16.4)Orissa (14.1)

Andhra Pradesh (9.7)

Onion October to May

Maharashtra(29)Karnataka (22.4)

Gujarat (10.4)Bihar (7)

Peas December to FebruaryUttar Pradesh (50.2)

Madhya Pradesh (8.9) Jharkhand (8.3)

Tomato October to April

Karnataka (14.1) Andhra Pradesh (12.6)

Orissa (12.2)Bihar (9.3)

West Bengal (9)

Potato December to April

Uttar Pradesh (31.4) West Bengal (28.8)

Bihar (14.6)Punjab (5.8)




17 fieldfresh

Exhibit 4: Production of Fresh Fruits in India

2006-07 2007-08 2008-09

FruitsArea

000' HA

Production

000'MT

Area

000' HA

Production

000'MT

Area

000' HA

Production

000'MT

Mango 2,154 13,734 2,201 13,997 2,309 12,750

Apple 252 16,240 264 2,001 274 1,985

Banana 604 20,998 658 23,823 709 26,217

Citrus 798 7,145 867 8,015 923 8,608

Guava 176 1,831 179 1,981 204 2,270

Grapes 65 1,685 68 1,735 80 1,878

Litchi 65 403 69 418 72 423

Papaya 72 2,482 83 2,909 98 3,629

Pineapple 87 1,362 80 1,245 84 1,341

Pomegranate 117 840 124 884 109 807

Sapota 149 1,216 152 1,258 156 1,308

Others 1,016 6,244 1,112 7,321 1,083 7,249

Total 5,554 59,563 5,857 65,587 6,101 68,466

Source: I Indian Horticulture Database, Govt. of India, 2009

Mango

19%

Apple

3%

Banana

38%

Citrus

12%

Guava

3%

Grapes

3%

Litchi

1%

Papaya

5%

Pineapple

2%

Pomegranate

1% Sapota

2%Others

11%

Production Share of Fresh Fruits in India(2008-09)




18 fieldfresh

Exhibit 5: Production of Fresh Vegetables in India

2006-07 2007-08 2008-09

VegetablesArea

000' HA

Production

000'MT

Area

000' HA

Production

000'MT

Area

000' HA

Production

000'MT

Potato 1,743 28,600 1,796 34,658 1,828 34,391

Onion 768 10,847 821 13,900 834 13,565

Tomato 596 10,055 566 10,303 599 11,149

Brinjal (Eggplant) 568 9,453 561 9,678 600 10,378

Cabbage 249 5,584 266 5,910 310 6,870

Cauliflower 302 5,538 312 5,777 349 6,532

Okra 396 4,070 407 4,179 432 4,528

Peas 297 2,402 313 2,491 348 2,916

Tapioca 255 8,232 270 9,056 280 9,623

Sweet Potato 123 1,067 123 1,094 124 1,120

Others 2,282 29,146 2,414 31,402 2,275 28,006

Total 7,581 114,993 7,848 128,449 7,981 129,077


Potato27%

Onion

11%

Tomato

9%Brinjal8%

Cabbage

5%

Cauliflower

5%

Okra

3%

Peas

2%

Tapioca

7%

Sweet Potato

1%

Others

22%

Production Share of Fresh Vegetables in India(2008-09)

Source: Indian Horticulture Database, Govt of India, 2009



19 fieldfresh

Exhibit 6: Comparative Yields of Major Fruits-India versus Other Countries

(In MT/HA)

Commodity Yield-India Potential Yield (Highest in world)

2007-08 2008-09 First Rank Second Rank Third Rank

Apple 8.0 7.2Italy

(40.4)Chile

(39.1)France(37.2)

Banana (Eggplant) 36.0 37.0Indonesia

(54.3)Costa Rica

(42.5)India

(37.0)

Grapes 26.0 23.5India

(23.5)South Africa

(13.8) Argentina

(13.2)

Mango 6.0 6.0Brazil(16.8)

Indonesia(10.9)

Pakistan(10.6)

Papaya 33.0 37.0Indonesia

(72.7)Guatemala

(52.7)Brazil(51.7)

Pineapple 15.0 16.0Indonesia

(61.2)Costa Rica

(48.5)Mexico(41.9)

*Orange 6.7 6.7USA

(35.4)- -

*Guava 11.1 11.1Guatemala

(26.8)- -

*Litchi 6.1 5.9 - - -

*Sapota 8.3 8.4 - - -

*Citrus 3.7 3.3Spain(51.2)

- -

*Lime/ Lemon 8.3 8.1Turkey(30.5)

- -

*Pomegranate 7.2 7.4 - - -

Source: Indian data taken from Indian Horticulture Database, Govt. of India, 2009; World data taken from FAO, 2006



20 fieldfresh

Exhibit 7: Comparative Yields of Major Vegetables - India versus Other Countries

(in MT/HA)

Commodity 2007-08 2008-09 Potential Yield (Highest in world)

First Rank Second Rank Third Rank

Brinjal (eggplant) 17.0 17.3 Japan(34.4)

Italy(29.6)

Turkey(26.2)

Cabbage 22.0 22.2Korea(67.3)

Japan(44.3)

Poland(37.7)

Cauliflower 18.0 18.7Italy

(22.3)Germany (22.2)

Turkey(21.5)

Okra 10.3 10.5 Egypt(15.7)

Saudi Arabia(11.5)

India(10.5)

Onion 15.0 16.3USA

(53.9)Spain(52.1)

Japan(47.6)

Peas 8.0 8.4France(11.5)

USA (11.0)

China(10.3)

Potato 19.0 18.8Netherlands

(45.6)Germany (43.8)

USA (44.2)

Tomato 18.2 18.6USA

(77.4)Spain(69.6)

Brazil(63.3)

Sweet Potato 8.9 9.0 Japan

(275.2)

Tapioca 33.57 34.35 -

Source: Indian data from Indian Horticulture Database, Govt. of India, 2009; World Data taken from FAO, 2006



21 fieldfresh

Exhibit 8: Exports of Fresh Fruits to various countries from India- Ranks and Share (%)

Commodity Country 1 Country 2 Country 3 Country 4 Country 5

Apple

Bangladesh

83.70

Nepal

12.43

BananaU Arab Emts44.6

Saudi Arabia19.6

Bahrain8.0

Kuwait6.9

OrangeBangladesh90.56

Nepal6.95

GrapesNetherlands37.32

UK18.21

Bangladesh17.11

U Arab Emts11.52

GuavaSaudi Arabia24.8

U Arab Emts18.7

Sudan13.4

Oman7.7

Nepal6.5

LitchiBangladesh66.3

Nepal33.7

MangoU Arab Emts45.8

Bangladesh23.9

UK8.2

Saudi Arabia4.9

PapayaU Arab Emts33.4

Saudi Arabia18.2

Netherland13.7

Bahrain7.9

Kuwait7.4

PineappleNepal32.0

Maldives20.2

U Arab Emts14.5

Saudi Arabia12.1

Kazakhstan3.3

SapotaU Arab Emts48.5

Bahrain16.9

UK15.1

Canada5.4




22 fieldfresh

Exhibit 9: Exports of Fresh Vegetables to various countries from India- Ranks and Share (%)

Commodity Country 1 Country 2 Country 3 Country 4 Country 5

Brinjal (Eggplant)

Canada

90.0

Netherland

5.6

CauliflowerSaudi Arabia29.7

Canada26.7

Nepal25.7

Maldives13.4

U Arab Emts2.4

OnionBangladesh40.3

Malaysia17.5

U Arab Emts11.8

Sri Lanka8.7

Pakistan8.6

PeasSaudi Arabia69.0

U Arab Emts13.7

USA 12.1

TomatoPakistan79.7

U Arab Emts11.2

Bangladesh6.6

PotatoPakistan50.2

Nepal24.6

Sri Lanka10.3

U Arab Emts3.4

Sweet potatoU Arab Emts85.6

Maldives12.0




23 fieldfresh

Exhibit 10: Export of Fresh Fruits from India

Fruits Quantity( '000 Kgs) Value (in Million Rupees)

2007-08 2008-09 2007-08 2008-09

Man o 54,350. 80 83,703.18 127.42 170.71

Apple 32,655.27 44,540.57 33.31

Banana 16,662.54 30,401.46 33.31 52.17

Orange 29,261.30 25,329.57 27.27 23.20

Grapes 96,723.21 118,132.93 317.07 367.06

Litchi 161.52 1,546.50 0.06 1.56

Pa a a 10,879.73 13,833.77 11.23 18.10

Pineapple 4,194.99 3,893.44 3.40 3.68

Sapota 2,150.84 4,112.28 5.04 6.08

Source: Indian Horticulture Database, Govt of India, 2009

Exhibit 11: Export of Fresh Vegetables from India

Vegetables Quantity(000' Kgs) Value (in Million Rupees)

2007-08 2008-09 2007-08 2008-09

Potato 78,450.77 184,960.99 41.43 115.04

Onion 1,008,606.48 1,670,186.29 1,035.78 1,827.52

Tomato 134,845.15 124,617.22 152.91 127.66

Brinjal (Eggplant) 338.10 29.34 1.92 0.12

Cauliflower 70.85 284.60 0.02 0.16

Peas 814.64 2,519.41 2.71 7.95

Sweet Potato 346.81 879.15 0.35 0.81

Source: Indian Horticulture Database, Govt of India 2009



24 fieldfresh

Exhibit 12: Fresh Fruit Exporters by Rank, 2005

Commodities Rank 1 Rank 2 Rank 3 Rank 4 Rank 5India

Ranks

Apple China Chile France Italy USA

Banana Ecuador Costa Rica Philippines Belgium Colombia 44

Lemon Spain Mexico Argentina Turkey S. Africa 17

Other CitrusFruits/Mosambi

China India Israel Thailand Netherlands 2

Orange Spain S.Africa USA Egypt Morocco 21

Grapes Chile Italy USA S. Africa Turkey 17

Guava and Mango Mexico India Brazil Pakistan Peru 2

Papaya Mexico Malaysia Brazil Belize USA 9

Pineapple Costa Rica Philippines Belgium Cote d’Ivoire France 29

Source: Working Paper no 197, ICRIER, ‘Can Horticulture be a Success Story for India?’, Surbhi Mittal, 2007

Exhibit 13: Fresh Vegetables Exporters by Rank, 2005

Commodities Rank 1 Rank 2 Rank 3 Rank 4 Rank 5India

Ranks

Brinjal (Eggplant) Spain Jordan Mexico Netherlands China 24

Cabbage USA China Netherlands Spain Poland 48

Cauliflower Spain France China USA Mexico 42

Onion India Netherlands China USA Egypt 1

Peas Guatemala China Belgium Russia Netherlands 17

Tomato Spain Mexico Netherlands Syrian Arab Jordan 27

Potato Netherlands France Germany Belgium Canada 17

Sweet Potato USA China Israel Indonesia Egypt 35

Lettuce Spain New Zealand Mexico France Netherlands 74

Pumpkins and Gourd Spain New Zealand Mexico France Netherlands 74

Beans France USA Kenya Netherlands Spain 24

Source: Working Paper no 197, ICRIER, ‘Can Horticulture be a Success Story for India?’, Surbhi Mittal, 2007



25 fieldfresh

Exhibit 14: Major Fruit-Producing Countries

CountryArea

‘000 HA

Production

‘000 MT

China 11,042.62 107,837.63India 6,100.90 68,465.53

Brazil 2,455.87 38,988.30

USA 1,160.60 28,202.51

Italy 1,243.23 17,653.46

Mexico 1,201.90 16,122.21

Indonesia 720.26 15,917.95

Spain 1,895.78 15,835.00

Philippines 1,118.53 15,420.66

Iran 1,354.38 13,604.30

Turkey 1,094.36 12,824.81

Uganda 1,822.59 10,038.60

Others 24,247.05 217,285.90

World Total 55,458.05 578,196.86

Source: FAO Website 10.2.2010; India Data from Indian Horticulture Database, Govt. of India, 2009

China

18%

India

12%

Brazil

7%USA

5%

Italy

3%

Mexico

3%

Indonesia3%

Spain

3%

Philippines

3%Iran

2%

Turkey

2%

Uganda

2%

Others

37%

Major Fruit-Producing Countries - 2009

Source: FAO Website 10.2.2010, expect for India Data (Source Indian Horticulture Database, Govt. of India)



26 fieldfresh

Exhibit 15: Major Vegetable-Producing Countries

CountryArea

‘000 HA

Production

‘000 MT

China 24,080.08 457,730.39

India 7,981.00 129,077.00

USA 1,165.23 36,431.63

Turkey 1,103.40 27,135.62

Iran 647.80 16,173.00

Russian Fed. 861.60 14,057.80

Egypt 1,217.50 13,750.51

Italy 523.64 13,686.62

Spain 367.57 12,784.90

Japan 438.85 12,699.50

Others 17,503.81 232,765.90

World 55,890.49 966,292.86

Source: FAO Website 10.2.2010; Indian Horticulture Database, Govt. of India, 2009

China

47%

India

13%USA

4%

Turkey

3%

Iran

2%Russian Fed.

2%

Egypt

2%

Italy

1%

Spain

1%

Japan

1%

Others

24%

Major Vegetable-Producing Countries - 2009

Source: FAO Website 10.2.2010, expect for India Data (Source Indian Horticulture Database, 2009)



28 fieldfresh

Exhibit 17: Cold Chain Requirement in India- Select fruits and Vegetables

Fruits and vegetables are natural produce which live and breathe. They vary in their respiration andmaturity behavior and as such require a distinct temperature, humidity and packaging condition to ensurequality.

ProductStorage Temperature

(degree Centigrade)Storage Humidity Approx Shelf Life

Sweet corn 1 96% 5 days

Baby corn 1 95% 5 days

French Beans 3 95% 5 days

Onion 1 63% 110 days

Mango 12 90% 25 days

Banana 18 95% 7-28 days

Apple 1 95% 90-240

Pineapple 12 90% 14-36 days

Source: Quality and Process control department at FieldFresh



29 fieldfresh

Exhibit 18: Typical Baby Corn Cost Structure

Selling Price* Rs. 200**

Costs

Raw material Rs. 55

Packaging Rs. 20

Labor/factory overheads Rs. 30

Transportation (including air freight) Rs. 85

* Selling Price does not include government subsidies that can add about 5% of FOB value

** The selling price are quoted in Indian rupees. However, final prices are settled in Euros or Sterling. Any exchange rate

fluctuation will impact the rupee realization while the costs will remain constant.

Source: Casewriter’s notes based on company documents



30 fieldfresh

Exhibit 19: Consumer Criteria for Choosing a Fresh Food Store

Source: The Fresh Imperative: Creating Excellence in Asian Fresh Food Retailing, Coca-Cola Retailing Research Council, Asia & Accenture report



31 fieldfresh

Exhibit 20: Potential Competing Countries for Export Markets

Crops/Groups Potential Competitors

Fruits

Apple China, S. Africa

Banana Oman, Singapore, Philippines

Lemon S. Africa, Jordan, Iran

Other Citrus Fruits/ Mosambi Spain, France, S. Africa, Thailand, Netherlands,

Orange Bhutan

Grapes Austria, USA, S. Africa, Syria, Chile

Mango and Guava Mexico, Australia, China, Singapore, UAE

Papaya Malaysia

Pineapple Thailand, S. Africa, Philippines, Malaysia, Kenya

Vegetables

Brinjal (Eggplant) Netherlands, Spain, France, Kenya

Cabbage Spain, Netherlands

Cauliflower Mexico, Australia, China, Singapore, UAE

Onion Thailand, Netherlands, China, Pakistan, Indonesia

Peas Syria, Egypt, Greece, Kenya

Tomato China

Potato Pakistan

Sweet Potato Thailand, Indonesia, Vietnam

Beans Jordan, Kenya, Oman, Zambia, Iran, Egypt

Source: Working Paper no 197, ICRIER, ‘Can Horticulture be a Success Story for India?’ by Surbhi Mittal, 2007.



32 fieldfresh

Exhibit 21: Production and Supply Forecast- Fruits & Vegetables in India

YearArea

(Million HA)

Yield

(Tones/HA)

Production

(Million Tones)

Post-harvest

Losses (percent

of production)

Supply

(Million Tones)

Vegetables

2010-11 6.49 20.2 131.0 19 106.2

2015-16 6.49 23.5 152.5 19 123.5

Fruits

2010-11 4.43 15.1 66.9 25 50.2

2015-16 4.43 16.9 74.9 25 56.2

Source: Kumar, Praduman and Pramod Kumar (2003) “Demand, Supply and Trade Perspective of Vegetables and Fruits inIndia,” Indian Journal of Agricultural Marketing, Vol 17(3): 121-130



33 fieldfresh

Exhibit 22: Fruit Production and Consumption Patterns in India

A. Production wise contribution to total

Top two fruits = 56.9%Top three fruits= 9.5%Top four fruits=74.8%Top five fruits=77.5%

Top ten fruits= 87.2%

B. Revenue (Quantity X Rs/Kg) contribution to total

Top ten fruits – 83%Top twenty fruits – 97%

C. Ranking of fruits on the basis of quantity of production

1. Banana2. Mango3. Citrus4. Papaya5. Guava6. Grapes7. Pineapple8. Sapota9. Pomegranate10. Litchi

11. Watermelon12. Muskmelon13. Orange14. Sweet Orange15. Lemon16. Pear17. Coconut18. Kinoo19. Babughosa (A type of pear)20. Groundnut whole

D. Ranking of fruits on the basis of Revenue (Quantity X Rs/Kg) generation

1. Banana2. Apple3. Lemon4. Mango5. Orange6. Papaya7. Watermelon8. Muskmelon9. Sweet Orange10. Pomegranate

11. Pear12. Guava13. Grapes14. Coconut15. Kinoo16. Sapota17. Groundnut whole18. Babughosha (A type of pear)19. Awala20. Peach

E. Ranking of fruits on the basis of Margin (Rs./ Kg)

1. Kiwi

2. Strawberry

3. Lemon

4. Raspberry

5. Cherry

6. Jamun

7. Apricot 8. Apple

9. Dates

10. Plum

11. Grapes

12. Cheekoo

13. Peach

14. Groundnut whole

15. Litchi

16. Pomegranate

17. Orange18. Belpathar

19. Kinoo

20. Green Badam

Based on Indian Horticulture database 2009 and field study done by FieldFresh team



34 fieldfresh

Exhibit 23: Vegetables Production and Consumption pattern in India

A. Production wise contribution to total

Top two vegetables- 37.1Top three vegetables -45.7Top four vegetables -53.7

Top five vegetables -59.0Top ten vegetables – 78.3

B. Revenue (Quantity X Rs/Kg) contribution to total

Top ten fruits – 83%Top twenty fruits – 97%

C. Ranking of vegetables on the basis of quantity of production

1. Potato2. Onion3. Tomato4. Brinjal5. Tapioca6. Cabbage7. Cauliflower8. Okra9. Peas10. Sweet Potato

11. Cucumber12. Bottle gourd13. Coriander14. Capsicum15. Tori (Smooth gourd)16. Carrot17. Ginger18. Palak 19. Garlic20. Radish

D. Ranking of vegetables on the basis of Revenue (Quantity X Rs/Kg) generation

1. Potato2. Tomato3. Onion4. Cauliflower5. Cucumber6. Brinjal7. Bootle gourd8. Coriander

9. Capsicum10. Bhindi

11. Carrot12. Ginger13. Brinjal14. Palak 15. Garlic16. Radish17. Peas18. Smooth gourd

19. F. Beans20. Arvi

E. Ranking of vegetables on the basis of Margin (Rs./ Kg)

1. Coriander2. Garlic3. Babycorn4. Mint5. Green gram peeled6. Broccoli7. Ginger8. Green Chilli9. Sprouted gram10. Sprouted moong

11. Capsicum12. Kari Leaves13. Lettuce14. Baby Pumpkin15. Beetroot16. Brinjal17. Chappan Tinda18. Ribbed gourd19. Green Onion

20. Parwal (Pointed gourd

Based on Indian Horticulture database 2009 and field study done by FieldFresh team

FieldFresh_final--Yale Site Feb 2011

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