INSIGHTS INTO FOOD

MARKET

VENKATA SUBRAMANIAN

FOUNDER AND MD, EFARM

eFarm Training Material

Introductions

Venkata Subramanian

• Founder & Managing Director, Matchbox Solutions &eFarm, Chennai

Brief profile :MS (Computer Science), 2003,University at

Albany, NY ,

B.Arch , IIT Kharagpur ,1995 , India

12 years of experience in IT industry in both

technology & commercial roles (7+ years in US)

Head of key outsourcing & consulting accounts

in Insurance, Capital Markets & Banking

Currently Better known as ….

Hi-Tech Sabjeewallahs ;-)

agenda

The Indian Food Market : An Overview

Food Impact : Cost , Health , Contaminants

Solutions

Going organic : facts from fiction

Supply chain : The dubba wallah way

Processing the food : value addition , increase life

Composting agro waste : eco friendly + money

The Food Impact : How it affects

you

Economic

High price of vegetables, fruits , commodities

Health

Chemical residues , Adulterations

Social

Food scarcity = potential riots ?

Large migration to cities from villages

You are what you eat

the Problem statement

Only a crystal clear question yields a

transparent answer

– Zen saying

•Land – Scarce , segregated

•Water – Rain fed , Contaminated , deep bores

•Seeds – Unavailable, Expensive, Hybrids , Local

varieties vanishing

•Labour – expensive , migrating to cities

•Market price – unpredictable

•Net effect : Loss – surviving on subsidies

Cultivation In India : An Overview

Pain areas | The Farmer‟s ‘REAL’

crisis

From farm to home : The Food trail

A video

Supply Chain

Pain areas | The Agri Supply Chain Current State : Too Many Steps , Too Little Value Addition

Wholesalers to Retailers

Terminal markets to neighborhood wholesalers

Regional mandi to Terminal markets near large cities

Harvesting of Vegetables

A local mandiauctioning

Local to Regional mandisfor Auction

• Unorganized , unregulated ,

unprofessional & unprofitable

•A Middlemen’ dominated market

•Adhoc /Arbitrary Decisions on quality &

price

•No accurate DATA

1

2

3

4

5

6

Retailers to Dining Table

7

Loss in transit

40%

Price hikeEnd to end

> 400%

Lack of Data| No visibility to

supply or demand

Pain areas | Marketing -The

missing link ?

Other industries have differentiated

production from marketing/sales

Agriculture – Farmer handles both roles

Brands have value !! Indian products

though have wider varity and better taste

have not established a stable brand

The missing FIFTH ‘P’ of marketing in agri context - PERISHABILITY !!

Pain Areas |

So many solutions , but why still a crisis ?

Cold

chainModern retail

& logistics Micro finance

& Grants

Increase

yield

ICT

solutions

Export

market

R & D

Contract

farming

Market Scenario|

Burning Crisis or Booming Oppurtunity ?India’s Total production of fruits & vegetables =

• 100 Million Tonnes = Rs 650,000 Crores (value) [ 1 tonne = 1000 kgs]

Wastage in transit/handling/distribution = 40%

Current market segmentation of organised players:

• Organised retail/Branded retailers share in F&V : 1.5% • Food processing sector : 1% ( key pain : erratic supply)• Export sector : 1% (key pain : poor grading, quality checks)

Typical DAILY requirement of fruits & vegetables of Tier 1 city/metro :

• 4000 tonnes = Rs 6 crores value

Key focus

areas for

govt. for

urgent

improveme

nt

Source : IMAGES F&R Research Study , Govt of India , Dept. of Agriculture, Min. of Food processing

The solution

"We can't solve problems by using the same kind of

thinking we used when we created them."

Albert Einstein

Some Popular Myths and Misconceptions About

Organic Farming and Produce

Ice breakers

Is organic farming a recent innovation ?

Is organic expensive ?

Is organic just mean ‘using cow dung’ ?

How can 'excreta' be rich in nutrients ?

Is organic relevant in 'modern' scientific world ?

Is yield poor in organic ?

How do I know it is “Certified” 100% organic ?

Myth Busters

Big, large does NOT automatically mean HEALTHY

Myth Busters

Inorganic v/s Organic

Myth Busters …

Organic is a „complete‟ way of life : like Yoga ,

Ayurveda – watch out for scam artists !

America was discovered by MISTAKE – Columbus

wanted to come to India to trade in our agri

products !

Certifications and patents : Why we are forcing

„Indian farmers‟ to certify to „western‟ standards ?

Chemical usage

Ripening : mango , banana

Colouring : Cauliflower – endo

sulphan

Shelf life increase : Greens : Fungi

cide

Some techniques

The Organic Way

Navadanya : Test Planting

Natural fencing/ Boundary crops

•Prevent pests to main crops

•Provide wind shield

•Help hold water/ soil to

prevent erosion

Neem

Marigold

Soil Types – Identification

Seeds – Identification and planting

Home gardens

Companion Plants :Compatibility between what grows well together

-

Integrated Livestock and farming

Cattle

Buffalo

Goat

Sheep

Pig

Rabbit

Chicken

Emu

Quail

Turkey

Duck

•Provide manure

•Additional income

•Assist plant

Pollination (bees)

Understanding what the plant needs by

looking at leaves

Video : Manure/Composting Techniques

Run Video (Manure Ingredients)

Run Video (Indore technique)

Natural Weed Control

-Mulching

-Cow dung / urine-faster

decomposition

-Keep Mother nature

covered

Simple insect traps

Video : Natural pest control

Phenome Trap In Coconut Farm for rhinoceros beetle

Open Video

Technology Solutions

Value proposition |

Unlock revenue potential across the chain

Farmers

Rural Produce

Collection Centres

Quality

Inspection/ Grading

Cleaning / Packing

Routing

Long haul

Transportation

Urban area

Distribution centre

Small retailersLocal vendors

Food Processing

units

Exports

Bulk buyers

(Hotels / Caterers /

Retailers)

Compost/Manure

from waste

eFarm Common Services

Planning &

CoordinationResearch

Call centre /

CommunicationTechnology

Training &

Support

Local

Distribution

Key Innovations1) Weighing machine = standardise agri business transactions !

Bundles, baskets , bags Kilograms , Counts

2) Simple grading = right quality to right customer!!

Mixed grades S / M / L (Or) excellent / OK /bad

3) Simple technology = widest usage !!!

PCs, Websites Mobile phones , Voice, SMS

FarmersCooperativesCollection centers

Village ICT kiosksPhone boothsMobile operators

StorageWarehouses

Value added resellersSorting , Grading , Processing, Packing

Small Independent transportersIntra-city small tempos

KiranasSelf Help GroupsHawkers

Bulk buyersExporters

Logistics Fleet operators

Solution | The Big Picture – Connecting The Dots

Ground Operations Model

Inspired by the „best‟ supply chain system

in Indian conditions•Product Category : Perishable food items

•IT Systems usage : NIL

•Management team : Illiterate and average age of 55

•Age of company : Over 150 years

•Customer Segment : From slumdwellers to crorepathis

•Operational efficiency : Six sigma !!!

The Mumbai Dubbawallahs !!!

• Key success factors :

• Highly decentralized operations – agile, flexible , scalable

• Use of low cost transport medium – trains

• Use of human power for last mile delivery – No Fuel related

hikes

• Strong customer relationship – personal , localised

• Simple coding, routing, labelling system – operates even without

electricity !

• Delivery excellance – fixed time , professionalism

Technology | Farmer sideFarmer’s produce database

• Produce name, variety

• Grade

• Typical yield at harvest

• Harvest cycles /frequency

• Cost of production

• Location / closest pickup point

Cost of production / Fair Price analysis tools

Supply side forecasting tools / Sourcing planner

Rural call centres / Mobile sms for data updates

Technology | Customer side

Order capture

(Mobile / Customer portal)

Requirements analysis and

demand projection

MIS & Dashboard

Delivery Tracking

POS systems for agri

Agri CRM

Collection centres |Localised sourcing points, Planned aggregation

Established Collection points close

to villages

Standardised Quality checks , Grading &

Weighing process established

Over 2500 farmers

enrolled and active

Mobile collection trucks for

remote areas

On the spot payment

of fair price

Distribution centre |

Close to urban customers , Localised distribution

2000 sq ft facility for

handling 5 tonnes / day

Verify arrivals, inventory

Loading & packing as per

customer specs

Value addition by

peeling/cutting

Local

distribution

to customer

site

Composting of waste ,

conversion to manure

Customer

visits ,

feedback

The Ideal Agri-preneur

Have the discipline of a soldier ….

.. Ready to jump into fire …

.. But still ‘enjoys’ doing the impossible !

Thank You

Venkyvenky@matchboxsolutions.in 98847 61354

Vallisrivalli@matchboxsolutions.in

11 loganathan colony Mylapore, Chennai 600004Ph : 044-43577236

www.efarm.inLinkedin : AgriIndiaTwitter :venky_efarm