TOWARDS SHARED BUSINESS BENEFITS IN VALUE CHAIN, A WIN-WIN SITUATION

Partnerships with businesses for prosperity

Farmer’s Perspective: Gaps in Traditional Supply Chain

Price Uncertainty and Distress Sales.

High marketing cost due to small scale

Delay in payment.

Entire risk (from farm to market) borne by farmers

Seasonal focus and lack of quality consciousness.

Traditional Supply Chain

Farmer’s Perspective: Value addition through modern supply chain

Assured pricing and more bargaining power.

Low marketing cost due to shared resources and economy of scale.

Prompt payment in a transparent manner.

Stress on Quality/Drive towards building a brand rather than selling commodity.

Market risks are shared with social investor

Supply Chain Post-Intervention

Value Chain’s Perspective:Efficiencies brought through Intervention

Taming “Bullwhip effect” through effective supply and demand management

Transparent price building mechanism Long Term Storage facilityReduced cost of sales and distribution through “economy of scale” Application of good post harvest techniques for handling material. Reusable crates for transporting material. Strict quality control at each level to avoid cost in transportation of

inferior material. Inferior material processed to make value added products. Optimum utilization of capacity.Drive towards building Brand rather than selling commodity Providing quality products to end-consumers at competitive prices. Quality is ensured through on farm inspection and Grading and

Sorting at Collection centre and CA store

Infrastructure backing Innovation

Physical Infrastructure Long term storage facility at Naugaon 6 Collection centers (4 in operation) 4 Reefer vans Reusable plastic crates Juice facilitySocial Infrastructure 6 farmer’s trust organized as legal entity and made partner in 6

JVC’s formed to manage Collection points as separate profit center. Farmers organized as society and made partner in the JVC’s

managing LTSF. Human capital developed through training to run these JVC’s on

professional line. Farmers trained to carry out post harvesting operation efficiently.

Thank You