Understanding Barriers faced by Fruits/Vegetable Farmers ... · stakeholders attached to the fruits...
Transcript of Understanding Barriers faced by Fruits/Vegetable Farmers ... · stakeholders attached to the fruits...
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UnderstandingBarriersfacedbyFruits/VegetableFarmerstojointheExportValueChain
InSriLanka
AComparativeAssessmentofExportPotentialFarmersinNorthandSouth
SuthaharanPerampalamSamaliPerera
Nov-18
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ProjectBackground• LIRNEasia in association with Neelan Tiruchelvam Trust (NTT), conducting a research program to
promotes participatory knowledge sharing processes and social integration among fruit & vegetablefarmerswhowillingtoconnecttoexportvaluechainsintheNorthandSouth.
• Theproposedresearchprogramwillaim,
• TocreateengagementandknowledgetransfersbetweenfarmersoftheNorth&South• BuildcapacityandenablefarmersintheNorthtobuildrelationshipswithsourcingpartnersinSouth• Promotereconciliationthroughuseofvideosoforalhistoriesofpasteconomicrelationshipsandtheirruptureduringtheconflict.
• As part of research program, a baseline study was conducted to understand issues faced by variousstakeholdersattachedtothefruitsandvegetableexportvaluechain.Indepthdiscussionswereconductedwith farmers, exporters, middlemen and various opinion leaders to map the obstacles to overcome toincreasetheexportpotentialofFruitsandvegetables.
• Findingof thisbaseline assessmentwill helpLIRNEasia to intervenewith specific capacitydevelopmentprogramtargetingfarmerswithinidentifiedregionandrequiredpolicylevelsuggestionssubsequently.
• ThisreportbyLIRNEasiahighlights,findingsofbaselinestudywhichwasconductedduringthemonthofJuly–Sep2018.
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Importanceofthestudy• Limitedliteratureonexportagriculture,particularlyfruitsandvegetables
• Lackssufficientquantitativestudiesinthisarea• DepthInterviewsProfJayasekara(WayambaUniversity)• EDB-Annualplan
• SectorchangesrapidlyàNeedfortimelyinsights
• Focusesonspecificinformationgaps• Holisticapproachonbarrierstoenterexportmarketforfruitsand
vegetablefarmersàPolicyimplication• FocusesonidentifyingskillsshortageàSoftskills,knowledgeofbest
practices• Evidencebasedapproachfor“Intervention”àdecidesuitabletraining
program
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ResearchObjective
• Tounderstandperceptionandattitudeoffarmerswhoarewillingtojoinexportvaluechainoffruitsandvegetables
• Reasonsforpreferringexportorientedproduction• Reasonsfornotsellingtoexportmarketyet• Internalandexternalbarrierforexportoriented
production• Understandingofcurrentskillsandskillsshortage
• TounderstandtheenablingfactorstogrowfruitandvegetableexportsfromSriLanka.
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ResearchMethodologyàDepthdiscussionsandquantitativesurveyconducted
In-depthDiscussion
QuantitativeSurvey
DepthinterviewswereconductedamongvariousstakeholdersattachedtotheExportValueChainofFruitsandVegetables
• Farmers• Exporters• Academics• OpinionLeaders
SurveywasconductedamongExportpotentialfarmersinfollowingdistricts
• Jaffna• Gampaha• Kurunagala
Totalof165fruitsandvegetablefarmerswereinterviewedandtheiropinionsrecorded
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Fieldworkinthreedistricts
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EstablishingthesampleframeàNorecordsoffarmerswithexportpotential
TotalPopulationofVegetableandfruitsfarmers
FarmerswithExportpotential
Farmers
alreadysellingtoexporters
Farmerssoldtoexportersbutnotanymore
DatabaseofExportersareavailablewith• G.A.Pofficers• ExportDevelopmentboard(thosewhoarealreadyengaged)àOnly4-7farmerswithinNorthernregion
Databaseoffarmerswithexportpotentialisnotavailable/cannotbeaccessed
• ExtensionofficersneedtoidentifyfarmerswithexportpotentialandpassittoG.A.PofficersàAccordingtofarmersthissystemisnotworkingeffectivelyatgroundlevel
• Therearen’tanyrecordsoffarmerswithexportpotentialunlessG.A.Pofficersidentifyandtapthefarmersorifthefarmersthemselvesapproachtherelevantparties.
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SnowballingapproachadoptedwithSelectioncriteriaFruitsandvegetablefarmerswillingtojointheexportvaluechainwasselectedbasedonfollowingcriteria,
• Producefruitsandvegetablesinatleast1acrelands
• Have2ormoreemployeesworkingforthem
• Wouldliketoselltheirproductstoexportmarket
• HaveeducationalattainmentsaboveO/L
• Agricultureismainsourceofincome
• WillingtoproducefruitsandvegetablewithExportintention
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Findings
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Spoketo165farmersin3districtsàMalepredominantlyleadasthefemalesplaysupportingroles
• Totalof165FruitsandVegetablefarmersInterviewed
• AllinterviewedrespondentswereownersàNomanagers Kurunagala
Districts(39)
GampahaDistricts(50)
JaffnaDistricts(74)
NumberofInterviews
KurunegalaandGampaharesultsarepresentedtogether,andcomparedwithJaffnadistrict
GenderBreakup
93%
7%MaleFemale
Gam/Kurunegala Jaffna
Male 91% 96%
Female 9% 4%
TotalBase: 89 74
GenderBreakupbyDistrict
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OldergenerationinvolvedinAgricultureinJaffna,asthenextgen.hasmigratedandmovedaway.
AgeDistribution Gam/Kurunagala Jaffna20-30years 10% 13%
31-40years 29% 13%
41-50years 17% 28%
51-60years 25% 22%
61yearsorabove 19% 24%
TotalBase: 89 74
50Years46Years
AgeoftheFarmers
AverageageoftheFarmers
12
22
Gam/Kuru Jaffna
NumberofYearInvolvedinBusiness
Gampaha/Kurunagala Jaffna
12
Moreemployees(PermanentandSeasonal)involvedinJaffna-basedfarmingàCheaplabour/CulturalInfluences
NumberofPermanentEmployees
G/KDistricts
JaffnaDistrict
2-3Employees 52% 60%4-5Employees 45% 29%Morethan5 3% 11%
AverageNumber 2.95 3.78
AverageFamilyworkers 1.05 1.35
Base: 89 74
NumberofSeasonalEmployees
G/KDistricts
JaffnaDistrict
1-3Employees 96% 8%4-5Employees 3% 10%Morethan5 3% 82%AverageNumber 2-3People5–10people
Base: 89 74
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IncomeSources Gamphaha/KurunagalaDistricts
JaffnaDistrict
Fromprimaryincomesource(AgricultureFruits&Vegetable) 34,200(n=87) 45,300(n=73)
Fromprimaryincomesource(Paddyorothercrops) 9,000(n=10) -
Fromotherincomesources(Employment/worketc.) 15,750(n=18) 8000(n=2)
Pensionpayment 17500(n=4) -
FarmersinNorthsolelydependonagricultureincome,butKurunegala/Gampahaclaimsothersourcesofincomeaswell
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53%40%
7%
Fruits VegetableBoth(Fruits&Vegetables)
CropsCultivated(Kurunagala+Gampaha)
CropsCultivatedinJaffna
37%
50%
13%
0%10%20%30%40%50%60%
Fruits Vegetable Both(Fruits&Vegetables)
Gam/Kurunagala JaffnaFruits
Banana 36% 33% Pineapple 34% 0% Papaya 8% 15% Watermelon 2% 0% Rambutan 3% 0% Mango 1% 3%
VegetablesBrinjal 11% 5% Cucumber 2% 0% Longbeans 2% 11% Snakegourd 18% 1% Ridgegourd 3% 0% Bittergourd 17% 4% Manioc 4% 9% Ladiesfingers 2% 4% GreenChilies 2% 30% Dioscoreaalata(Rajaala) 0% 12% Yam(KidaramAla) 0% 21% Beetroot 0% 33% Cabbage 0% 17% Onion 0% 56% Potato 0% 12% Tomato 0% 23% Carrot 0% 28% Smokingleaf 0% 3% Pumpkin 0% 7% Leeks 0% 3% Beans 0% 4%
TotalBase: 89 74
JaffnaFarmerscultivatinganaverageof3-4typesofvegetablesinsmallervolumes,whileGampaha/Kurunagalafarmersfocusonlyon1-2varieties
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A Farmer’s Story from… Kurunegala Jaffna
“It’s better to not do agriculture in the future because times are changing, weather is uncertain, lack of clear policies to support farmers. Nowadays, Young people don’t do agriculture, they are taking up jobs as teachers, private companies or go to work in Colombo etc.” “Agriculture provides a good livelihood, if not for the uncertain weather and price fluctuations”. We don’t think our next generation should come into this. We will do this until we can. “Last year when we were about to take our crops to the market, government brought in imported onions, and we had to reduce the prices or else couldn’t sell the products. Some farmers started to drop growing onions as its difficult to harvest onions and not enough returns”
“I am the only full time farmer in my agricultural family, my siblings does farming while working in the service sector. So they have diversified their risks, and have a fixed income in addition to agricultural income.” “My Children and family members also help with farming during their free time, and inform us about new practices and developments, they have good knowledge about new updates” “We have good access to government and maintain relationships with the extension officers, they visit often.
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Only4%ofJaffnafarmershaseverregisteredwithG.A.P.Gampaha/Kurunagaladistrictshadbetterrecordsof
registrations.
15%4%
85%96%
Gampaha/Kurunagala Jaffna
RegisteredasG.A.PProducer
YesNo
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Increasedreturns,operationsexpansiontothenextlevelarethekeyreasonsforpreferringexportorientedfarming.
Most Important
Somewhat important
Least important
Togiveemploymentformorepeople(48%)
Toincreaseprofits(90%)
Toexpandoperationfromcurrentlevel(72%)
Togaininternationalexposuretomyproducts
(53%)ToImprovemySkills
(8%)
TogainreputationasExportOrientedfarmer(55%) Tomodernize
production(18%)
Q:Canyoutellusthekeyreasonsonwhyyouwouldliketobecomeanexportorientedfarmer?
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26%ofGampaha/Kurunegalafarmershavelapsedfromexportorientedproduction,mainlyduetolowpriceandinadequatedemand.
26%4%
74%96%
Gam/Kuru Jaffna
ExportMarketExperience
NeversoldtoExportMarketSoldtoExportMarket,butnotanymore
Reasonfornotsellingtoexportmarketanymore
83%
50%
47%
37%
17%
13%
13%
10%
3%
3%
3%
Pricesreceivedweretoolow
Receivedhigherpriceinlocalmarket
Demandisnotenough
Toomuchhassletoselltheproduct
Unabletomeetexporter’sdemand
Toomanyprocedures/standardstoadhereto
Transportcostishigh
Can’tmeetthequalitystandards(atall)
NosupportfromG.A.Pofficer
Difficulttomeetthequalitystandards
Exporterdidn’tcontactme
Base:Thosewhoareinvolvedinexportingbutnotanymore(30)
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Farmersexpectgovernmenttointerveneandplayanactiverolethroughregulationsandsupport.
Governmentneedtotakeanactiverole
BuyingFixed/Guaranteedprice
GovernmentisnotkeenontakinganyactiontoprotectusàNeedtointervenemore• “Governmentshouldregulatethemarketwithstrictpolicies”(KurunegalaRespondents)• “Subsidiesneedtobeprovidedbythegovernment.Wedon’tgetanysupport“• “Seedsneedtobedistributedatsubsidizedprice/lowerprice(KurunegalaRespondents)• “Needtohavecreditschemesforfarmers(JaffnaRespondents)
StandardbuyingagreementatFixedprice• “Exportersshouldnotreducetheprice”• “Thereshouldnotbeanydelayinpaymentfromexporters”
Q:Whatgovernmentcoulddotohelpyou?
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82%
80%
72%
49%
9%
6%
2%
1%
Wedon’thavesufficientinformationonhowtodothis.
Therearen’tanyexportersinourregion
Wedon’thavetransporttotakeittoColombo
Thepricesreceivedaretoolow
Wehaven’tthoughtaboutit
Wedon’tknowthequalitystandards
Ourlevelofproductionisnotenough(Continuessupply)
Otherfarmersdiscouraged
Gam/Kuru Jaffna
91% 73%
92% 68%
99% 45%
95% 3%
3% 15%
3% 9%
0% 4%
0% 1%
Q:Whyhaveyouneversoldyourproductstotheexporter/exportmarket?
LackofInformation,AccesstoExporters,transportationandlowpricesarehighlightedasthekeyobstaclestoenterexportmarket.
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Lackofknowledgeonwaystoentertheexportmarket,andonotheroperationalaspectssuchasmarketing,logisticsandpaymentsare
thekeychallengesàMeetingqualitystandardsisnotakeyissue.
TopChallengesfacedinsellingproducetoexporter Gam/Kurunagala Jaffna Total
Idon’tknowhowtoaccesstheexportmarket 82% 73% 78% Ihavedifficultycommunicatingwithexporters 49% 68% 58% Idon’tknowhowtomarketmyproducts 48% 43% 46% Idon’thavetransportfacilitiestotakemyproductstoexporters 37% 24% 31% Iworryabouttimelypayments 31% 25% 29% Itisnotprofitable/cost-effectivetoproduceforthismarket 18% 7% 13% Mycostsandpricesaretoohighforexporters 15% 8% 12% Mybusinessdoesnotmeetcertainadministrativecriteria 16% 0% 9% Ican’tmeetthequalitystandards. 0% 15% 7% Idon’tknowenoughabout/understandcontracts 0% 11% 5% Ican’tproduceenoughtokeepupwithdemand. 2% 5% 4% Idon’tproduceenoughtogetintothemarket 0% 7% 3% Ican’tmaintainthequalityofmyproducts 1% 4% 2% Idon’thaveproperbusinessregistration/GAPregistration 1% 4% 2%
TotalBase:Thosewhoarewillingtojoinexportvaluechain 89 74 164
Q:Whatdoyouconsiderthetop3challengesinsellingyourfruitsandvegetablestoexporters?
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43%
44%
29%
25%
22%
11%
31%
13%
6%
33%
24%
35%
28%
33%
7%
39%
32%
5%
Idon’thavetherightfarmingequipment
Idon’thaveenoughinformationonqualitystandards
Qualityinputsaretooexpensive
Idon’tunderstandthequalitystandards
Ican’tgetqualityinputs
Idon’thavereliablestaff/workers
Idon’thaveaccesstoadequatetransportfacilities
Idon’thaveaccesstoadequatestoragefacilities
Iknowmystaff/workersdon’thavetherightskills
Q:Whatarethekeybottlenecks/challengesyoufacewithregardtotheproductionwhichpreventyoufrommeetingormaintainingquality?
Lacksappropriateresourcessuchastools/equipment,skilledstaff,transport,storagefacilitiesalongwithlackofsufficientunderstandingonqualitystandardspreventfarmersfrommaintainingquality.àTransportation&Storageisakeyconcernamong
Jaffnafarmers
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Advice/Educationonexportpotential Gam/Kurunagala Jaffna
DAOExtensionofficeradvisedme 51% 3%
Co-farmers(peers)advisedme 41% 35%
G.A.Pofficeradvisedme 11% 1%
OfficersfromEDBadvisedme 2% 0%
Exportersadvisedme 0% 4%
Nooneadvisedme4% 60%
TotalBase: 89 74
ExtensionofficersfollowedbyG.A.Pofficershaven’tdoneenoughgroundworkinJaffnaàOver60%farmersdidn'treceiveany
informationonExportorientedproduction
Q:Haveyoureceivedanyadvice/educationfromanyoneonyourpotentialtoexportyourcrop?(MultipleAnswer)
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SkillLevel/Gaps
25
Marketing,Negotiationandmanagementskillsalongwithmarketknowledgewereconsideredimportanttobeasuccessfulexport
farmerà33%ofJaffna-basedfarmersconsideredskillstoraisefinanceimportant
92%
89%
62%
42%
6%
6%
4%
0%
0%
0%
39%
56%
32%
37%
27%
19%
33%
24%
17%
12%
Marketingskills
Sellingandnegotiationskills
Marketknowledge
Managingpeople/labour
Communicationskills
Entrepreneurshipskills
Skillstoraisefinance
Gettingaccesstogovernment
Networkingskills
Managingfinancesanddebts
Farmersopiniononbusinessskillsrequiredtobeasuccessfulexportfarmer
Kurunagala+Gampaha
Jaffna
Q:Inyouropinion,whatarethetop3businessskillsthatareimportanttobecomeasuccessfulexportfarmer?
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(Kurunagala+Gampaha)
10%1%
2%
74%70%72%
49%67%
45%29%
44%33%36%
22%28%27%
51%30%
55%71%
56%67%64%
10%ManagingfinancesanddebtsNetworkingskills
GettingaccesstogovernmentSkillstoraisefinance
EntrepreneurshipskillsCommunicationskills
Managingpeople/labourMarketknowledge
Selling&negotiationskillsMarketingskills
4%63%
1%
34%34%
33%26%
6%31%
21%
5%
38%36%
1%30%
79%31%
12%36%
25%41%
28%26%
3%43%
15%37%
87%41%
73%53%
ManagingfinancesanddebtsNetworkingskills
GettingaccesstogovernmentSkillstoraisefinance
EntrepreneurshipskillsCommunicationskills
Managingpeople/labourMarketknowledge
Selling&negotiationskillsMarketingskills
Idonothavethisskill Myskillsarepoor Myskillsareaverage Myskillsareexcellent
Jaffna
Gampaha/Kurunegalafarmersselfratedtheirskillstobepoor/averageinmostoftheskills.Jaffnafarmersself–ratedthemselvesasexcellentinmost
oftheskills,exceptgettingaccesstoGovernment.
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EntrepreneurialSkills
MarketKnowledge
MarketingSelling&Negotiation
Skills
ManagingDebtandFinances
Gettingaccesstogovernment
Softskillstobeaddressedthroughtrainingprograms
All3districtsAll3districtsGampaha/Kurunegala
Jaffna Jaffna
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NewharvestingmethodsandtechnologyadoptionsarekeyconcernsàJaffnafarmersmoreconcernedonimprovingproductivityperacreage
andwatermanagement
94%
83%
30%
30%
28%
21%
9%
2%
1%
43%
51%
19%
33%
40%
26%
13%
54%
11%
Newharvestingmethods
Newtechnologyadoption
Globalagriculturalbestpractice
Packagingandproducthandlingskills
Watermanagement
Productqualitycertification
Understandingdiseasesandsolution
Improvingproductivityperacreage
SaferLogistics(storing,transporting)
TechnicalSkillsRequiredtobecomesuccessfulExportfarmer:PerceptionofFarmers
Kurunagala+Gampaha
Jaffna
Q:Inyouropinion,Whatarethetop3technicalskillsthatareimportantforafarmer?
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1%
1%
1%
84%
80%
76%
73%
53%
78%
84%
83%
75%
13%
19%
22%
26%
46%
21%
15%
16%
24%
1%
1%
1%
1%
1%
1%
1%
Safer Log is t i cs ( s tor ing ,
Improving productivity per
Understanding diseases and
Productqualitycertification
Watermanagement
Packaging and product handling
Globalagriculturalbestpractice
Newtechnologyadoption
Newharvestingmethods
8%
0%
0%
0%
4%
14%
42%
22%
8%
31%
7%
1%
29%
23%
52%
42%
46%
45%
37%
44%
17%
27%
41%
18%
5%
20%
22%
24%
49%
81%
44%
32%
16%
10%
12%
26%
Safer Log i s t i c s ( s tor ing ,
Improving productivity per
Understanding diseases and
Productqualitycertification
Watermanagement
Packaging and product handling
Globalagriculturalbestpractice
Newtechnologyadoption
Newharvestingmethods
Idonothavethisskill Myskillsarepoor Myskillsareaverage Myskillsareexcellent
Gampaha/Kurunegalafarmersselfratetheirskillsarepoororaverage.ManyJaffnabasedfarmersclaimtheylackknowledgeonglobalagropractices,technologyadoption,
packaging/producthandlingskillsetc.
(Kurunagala+Gampaha)
Jaffna
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GoodAgriculturalpractices
NewTechnologyAdoption
PackingandProductHandling
SaferLogistics(Storing/
Transportation)
NewHarvestingMethods
Newharvestingmethods
Keytechnicalskillstobeaddressedthroughtrainingprograms
All3districts
Jaffna
All3districts Jaffna
Jaffna Jaffna
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83%
17%
Yes
No
ParticipatedinanyFarmerTrainingProgram
Kurunegala+GampahaFarmers
16%
84%
Yes
No
JaffnaFarmers
MostoftheKurunegala/GampahaFarmersattendedtrainingprogramofferedbyAgrarianservicecenter
MajorityoffarmersinJaffnahaveneverattendedanagriculturerelatedtrainingprogram
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AllfarmersexpressedwillingnesstoparticipateatrainingprogramifconductedbyLIRNEasia
100%
Yes,Iwouldliketogetinvolved
No,Iwouldnotliketogetinvolved
Kurunagala+Gampaha Jaffna
95%
5%
Yes,Iwouldliketogetinvolved
No,Iwouldnotliketogetinvolved
Wouldyouliketoparticipateinatrainingprogram?
3333
ICT/AssetsownedbyFarmers
34
99%
60%
19%
96%
28% 29%18%
45% 48%
97%
18% 2%
98%
51%
7%2% 8% 10%
Mobilephone Smartphone Personalcomputeror
laptop
Bankaccount Creditcard/debitcard
fourwheelvehicle
Threewheelvehicle
Accesstointernet(atleastoncea
week)
Socialmediaaccount
Technology/AssetsownedbyFarmer
Kurunagala+Gampaha Jaffna
Jaffnafarmersownlesstechnology/assetswhencomparedwithKurunegala/Gampahafarmers.àLimitedbyaccesstoinformation.Credit/Debt
cardownershipishighamongJaffnafarmers.
Q.Whatarethefarmassetsownedbyyou?
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19%6%
84% 85%
27%
86%
68%80%
10% 9%
29%
3%13% 14%
6% 6%
44%
10%
2wheeltractor
4wheeltractor
Sprayingmachine
Grasscutter
Fertilizermachine
Thrashers
Owned Rented Donothave
25%14%
22%
3% 2%
94%
7%
62%72%
2%
7%0%
3%
5%
13% 13%
77%90%
98%
3%
88%
2wheeltractor
4wheeltractor
Sprayingmachine
Grasscutter
Fertilizermachine
Thrashers Agropump
Owned Rented Donothave
Significantgapinfarmingequipmentormachinery(i.e.Sprayingmachine,grasscutter,fertilizermachine)applicationamong
JaffnafarmersFarmingrelatedassetsownedby
Kurunegala+GampahaFarmers JaffnaFarmers
3636
FinancialWellbeing
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Jaffnabasedfarmerslackproperfinancialliteracyandwellbeing,whereonly14%havefinancialrecords.
99%
1%
Yes,maintainingwrittenrecordsNo,don’tmaintianrecords
14%
86%
Q:Doyouoryourfamilymembersoremployeeskeepwrittenfinancialrecordsofrevenuesandexpensesforyourfarmingbusiness?
Maintainswrittenfinancialrecords
Kurunegala+GampahaFarmers
JaffnaFarmers
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Only¼thoffarmersinJaffnamentionedtheirreturnshavedeclined,while100%farmersstatedthattheyfacedadeclinein
last2years.
94%
6%0% 0% 0%
Declinedsignificantly
Declinedsomewhat
Remainedthesame
Improvedsomewhat
Improvedsignificantly
AgriculturalperformanceInPasttwoyears(Kurunagala+Gampaha)
1%
24%
41%
32%
1%
Declinedsignificantly
Declinedsomewhat
Remainedthesame
Improvedsomewhat
Improvedsignificantly
Q:Howdoyouevaluatethedevelopmentofyourbusinessoverthelast24months?
AgriculturalperformanceInPasttwoyears(Jaffna)
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(Kurunagala+Gampaha) Jaffna
1%
2%
0%
4%
17%
44%
56%
59%
1%
36%
20%
51%
3%
3%
3%
1%
94%
I haveControl overmybusinessfinances
Ihavefinancialfreedomtomakechoicestoenjoylife
I have the capacity to absorb afinancialshocktomybusiness
I am on track to meet myfinancialgoalsformybusiness
CompleteDisagree Somewhatdisagree NietheragreeorDisagreeSomewhatagree Stronglyagree Don'tKnow/CantSay
3%
4%
1%
3%
19%
7%
5%
8%
31%
12%
36%
21%
27%
20%
28%
37%
20%
51%
27%
12%
1%
7%
3%
19%
Q:Towhatextentdoyouagreewiththefollowingstatement
Gampaha/Kurunegalabasedfarmers,aremoreconfidentintermsofmeetingtheirfinancialgoalsforbusinessthanfarmersinJaffna.Yet,Jaffnafarmersstatethattheyhavefinancialfreedomtoenjoylife
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Employeeswageswilllikelytoimproveiffarmerinvolvedinexportorientedproduction
100%
0%
Yes,theywillgetmore
No,itwouldnotimprove
Therewouldnotbeanydifference
ImpactonEmployeesWages(Kurunagala+Gampaha)
87%
3%11%Yes,theywillgetmore
No,itwouldnotimprove
Therewouldnotbeanydifference
Q:Ifyoubecomeexportfarmer,doyouthinkyouwouldbeabletopaymorewages/salariesforyouremployees?
ImpactonEmployeesWages(Jaffna)
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EmployeeturnoverisslightlyhighinJaffnacomparedtootherGampaha/Kurunagala
ReasonsforLeavingEmployments Gam/Kurunagala Jaffna
Natureofwork 0% 1%
Offeredmoreattractivesalary 0% 1%Terminatedduetopoorperformance 0% 1%
Notcomingregularly 0% 1%
Tookajobelsewhere 3% 5%
Levelofproduction/returndropped 0% 3%
Employeesdintleavefrommybusinessinlast12months. 97% 86%
TotalBase: 89 74
Q:Whatarethereasonspeoplehaveleftyourbusinessinthepast12months?
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Farmersdissatisfiedwithcurrentsystem• Lackofcommunication,andinformationgapexistsbetweenFarmers,Exportersand
G.A.Pofficers• Farmersdon’thaveaccesstosufficientinformation.Theyarecluelessaboutprocess,
standardsrequiredandasaresultunabletomeetthequalitystandards.• ComplaintsagainstG.A.Pofficers/Government
• Farmersendupproducingthesamevarietyanditsleadstoanoversupply,duetolackofadequate,timelyinformation.
• Newofficerslacksufficientexpertiseandproductknowledgetoadvisethefarmers.• Falsepromiseonbuying,asG.A.Pofficersultimatelybuyfromtheirfriends/relatives.• Farmersunwillingtoenteraninconsistentsystemwithalotofuncertainty.
• Issuesfacedwithexporters• Pricesfluctuates,astheypromisetobuyatacertainprice,andwouldn’tgivetheright,
promisedpricewhentheproducesareready.• Exportersareinconsistent,astheybuywiththosewhocomewithbetterproducts/larger
volumes.• NeedtotraveltoColombomultipletimestomeetexporters.
àReduceinformationgapbycommunicatingonwhattoproduce/whatnotproduce,therequiredqualitystandardsthatneedtobemaintained,fixpricesupfrontetc.
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Exporters&OtherStakeholdersFeedback
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ExporterssuggestsJaffnafarmersneedtoproducespecifictypeoffruitsandvegetablesaccordingtoexportquality.Fruits Jaffna Kurunagala/
GamphahaBananaCavendish/Red/Kolikuttu/Long/Green Yes YesMango Yes NoPapaya-Hardskin Yes Yes
Vegetables Jaffna Kurunagala/Gamphaha
Brinjal(Thinnavelipurple/Lenaari) Yes YesGherkin Yes YesBitterGourd Yes YesSnakeGourd Yes YesAshPlantain Yes YesRedOnion Yes YesChili–Green/Hot/ Yes YesKidaramAla Yes NoRajaAla Yes NoLadiesFingers(Haritha) Yes YesMoringa Yes No
Q.Whatarethefruits/vegetablesrecommendedtoproducebytheexporters?
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ExportersstatefarmerslacksappropriateskillsàNeedtoimproveskillssignificantly
• Farmersthinktheirskillslevelisaverageorhigher(BasedonSurvey)whereas,exportersstatetheirskillsareinadequate,andareonlylookingtoworkwiththosewhofittheirtofulfilqualitystandardsandrequirements.
• Exportersstatethatfarmersneedtoimprovethefollowingbusiness/softandtechnicalskills.
Business&SoftSkills• Needtothinklongtermthanshorttermbenefits• Improveentrepreneursskills
TechnicalSkills• Needtoadoptnewtechnologyandknow-hows• Improveefficiencyandreducewastages• Produceatrightqualityandsize• Marketknowledgeofwhattoproduce/whatnotproduce
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Reduceinformationgap&ensureyearroundsupply• Farmersneedtofindwaystoproducevegetablesthroughouttheyearwithbetterand
modernirrigationmethods.àNeedformechanism/apptoreduceinformationgap
Governmentcanimproveextensionwork/promotevarieties• Improveresearchfacilitiesanddisseminateresearchknowledge
Establishstoragefacilities/collectioncenters• Onestopplaceforexporterstobuyandtopromotedirecttradebetweenexportersand
farmers.
Suggestionsbyexporterstoimplementabettersystem
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• Farmersandexportersarenotsatisfiedwiththeprice,farmerscomparewiththelocalmarketprice
• Farmer’sorganizationneedstonegotiateprice,fixpricesupfront• Improveefficiencyandreduceaveragecost
• Farmerslacksqualityconcern/Exportersrequireproducesinbulkquantities• Providetrainingonqualityandstandards• Newinfrastructurefacilitiestoreducepostharvestdelays• G.A.P/EDPneedtoassurequalityatgroundlevel
• Exporterswanttomaintainastablesupplyofgoods• Farmerslackdirectcontactwithanexporterandtherearefewexporterswithin
theirarea• Needtocreatealinkbetweenfarmerandexporters• Empowerfarmingcommunities• MobileApp/systemsinplacetosolveinformationasymmetry
Farmer&ExportersgapneedtobeaddressedeffectivelyàCommunicateclearlyonwhattoproduce/whatnotproduce,therequired
qualitystandardsthatneedstobemaintained,fixpricesupfrontetc.
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TypeofCultivation/Varieties• JaffnaFarmerscultivatinganaverageof3-4typesofvegetablesinsmallervolumes,whileGampaha/
Kurunagalafarmersfocusonlyon1or2varieties.àGampaha/Kurunegalafarmersgrowpaddy/othercropsaswell.Theyhaveawell-diversifiedportfolio,wherethererisksareminimized.
• UnlikefarmersinNorthsolelydependonagricultureincome,Kurunegala/Gampahafarmershaveothersourcesofincome,throughotherformsofsecondaryemployment/workintheservicessector.
G.A.PRegistrations• Only4%ofJaffnafarmershaseverregisteredwithG.A.P.Gampaha/Kurunagala(15%)districtshada
relativelybetterrecordsofregistrations.• ExtensionofficersfollowedbyG.A.Pofficershaven’tdoneenoughgroundworkinJaffnaintermsof
advising/educatingthefarmersregardingtheexportàOver60%farmersdidn'treceiveanyinformationonExportorientedproduction.
ExpectationfromtheGovernment• Farmersexpectgovernmenttointerveneandplayanactiverolethroughregulationsandsupportthrough
regulations,betterpolicies,subsidies.• IntroduceBuyingonFixedandGuaranteedPriceàExportersshouldnotreducetheprice.Inadditionto
thatthereshouldnotbeanydelayinpaymentfromexporters.
SUMMARY
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WhyentertheExportMarket?• Increasedreturns,operationsexpansiontothenextlevelarethekeyreasonsforpreferringexport
orientedfarming.• ExperienceinExportorientedoperationsàMajorityoffarmershavenoexportmarketexperience.26%
ofGampaha/Kurunegalafarmershavelapsedfromexportorientedproduction,mainlyduetolowpriceandinadequatedemand.
Whyhaven’tyousoldintheexportmarket?• LackofInformation,AccesstoExporters,transportationandlowpricesarehighlightedasthekey
obstaclestoenterexportmarket.
Topchallengesfacedinsellingtheproducetotheexporter• Lackofknowledgeonwaystoentertheexportmarket,andonotheroperationalaspectssuchas
marketing,logisticsandpaymentsarethekeychallengesàMeetingqualitystandardsisnotakeyissue.KeyBottlenecks/challengesfacedinmaintainingqualitystandards• Lacksappropriateresourcessuchastools/equipment,skilledstaff,transport,storagefacilitiesalongwith
lackofsufficientunderstandingonqualitystandardspreventfarmersfrommaintainingquality.àTransportation&StorageisakeyconcernamongJaffnafarmers
SUMMARY:Challengesinenteringtheexportmarket
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BusinessSkills• Marketing,Negotiationandmanagementskillsalongwithmarketknowledgewereconsideredimportanttobea
successfulexportfarmerà33%ofJaffna-basedfarmersconsideredskillstoraisefinanceimportant.• Gampaha/Kurunegalafarmersselfratedtheirskillstobepoor/averageinmostoftheskills.Jaffnafarmersself–
ratedthemselvesasexcellentinmostoftheskills,exceptgettingaccesstoGovernment.TechnicalSkillsRequiredtobecomesuccessfulExportfarmer:PerceptionofFarmers• NewharvestingmethodsandtechnologyadoptionsarekeyconcernsàJaffnafarmersmoreconcernedonimprovingproductivityperacreageandwatermanagement.
• Gampaha/Kurunegalafarmersselfratetheirskillsarepoororaverage.ManyJaffnabasedfarmersclaimtheylackknowledgeonglobalagropractices,technologyadoption,packaging/producthandlingskillsetc.
• MajorityoffarmersinJaffnahaveneverattendedanagriculturerelatedtrainingprogram.MostoftheKurunegala/GampahaFarmersattendedtrainingprogramofferedbyAgrarianservicecenter.
• AllfarmersexpressedwillingnesstoparticipateatrainingprogramifconductedbyLIRNEasiaFinancialWell-being• Jaffnabasedfarmerslackproperfinancialliteracyandwellbeing,whereonly14%havefinancialrecords.• Only¼thoffarmersinJaffnamentionedtheirreturnshavedeclined,while100%farmersstatedthattheyfacedadeclineinlast2years.
• Gampaha/Kurunegalabasedfarmers,aremoreconfidentintermsofmeetingtheirfinancialgoalsforbusinessthanfarmersinJaffna.Yet,Jaffnafarmersstatethattheyhavefinancialfreedomtoenjoylifeandhavemorecontroloverbusinessfinances.
SUMMARY:SkillLevelGaps