Presentation of Draft Report on Diagnostic Study to Assess and Enhance functioning of Commodity specific Growers’ Associations To June 25, 2013

Presentation of Draft Report on

Diagnostic Study to Assess and Enhance functioning of Commodity specific Growers’

AssociationsTo

June 25, 2013

– Genesis of Growers’ Associations– Need, Role and Creation of Growers’ Associations– Need, Objective and Scope of the assignment– Methodology and outcome of the assignment– Growers’ Associations – Current scenario – Interaction with Associations and Growers– Initiatives of select Associations and Growers– Progression of Growers’ Associations– Snapshots from team interactions and field visits– Identification of gaps hindering operational progress of Growers’

Associations– Strategy to revive functioning of Growers’ Associations

Structure of Presentation

Genesis of Growers’ Associations

1981Recommendation by Dr. M.S. Swaminathan for

creating Primary Horticulture Growers’ Cooperative Societies

1984Creation of NHB

1986Formation of SAFAL by NDDB

May 8, 2001SFAC, NHB and NCDC

entrusted by Department of Agriculture and Cooperation for

formation of Commodity Specific Growers’

Associations

2013

Need, Role and Creation of Growers’ Associations

• Collectivization of farmers – enrolling/ increasing membership• Training and capacity

building of growers – technical and managerial• Tie-ups with technical and

financial institutions, domestic and export markets• Promotion of technology

for production and post harvest management in clusters• Creating common

infrastructure for growers• Market demand and

intelligence• Higher revenue realisation

for growers due to collectivisation

• 17 National Associations + 2 Affiliated Associations - Apple, Banana, Orange, Guava, Sapota, Mango, Pomegranate, Grapes, Litchi, Vegetables, Strawberry, Stone Fruits, Aonla, Vanilla, Flowers, Aromatic Plants, Passion Fruit + Orchid, Nurserymen• NHB provided Associations

with initial seed money of Rs. 0.5 Lakhs + financial support provided till 2008-09 varying from Rs. 0.25 Lakhs to Rs. 1 Lakh + funds to organise seminars/symposiums/ exhibitions and exposure visits for farmers.

Growers’ Association

Availability of Farm inputs

Availability of Credit

Post harvest handling

Cold chain management

Value addition and processing

Domestic and export Marketing

CREATION & PROMOTIONROLE ENVISAGEDNEED / ACTIVITIES

Need, Objectives, Scope for this assignment

• 10+ years since formation of Growers’ Associations• Associations not

‘functioning’ and performing optimally as per planned objectives , except for a few o Insignificant ground

presenceo Increase in

membership is stagnant

oRelationship with existing primary level associations at cluster level and other stakeholders not visibly functional/operational

Objective of the assignment• To improve the functional effectiveness of the Growers’ AssociationsScope of Work• Mapping the current status of the AssociationsoActivitiesoMembershipoGeographical presenceo Interaction of membersoStructure and functioningoRevenue modeloHuman resourceso Infrastructureo Institutional tie-ups• Assessment of Associations with respect tooFulfillment of objectivesoProvision of tangible benefits to membersoAchievements like collectivisation, productivity enhancement,

technology introduction, market development, etc.• Recording key learnings• Identification of gaps• Measures to plug gaps and recommendations

NEED FOR THE ASSIGNMENT OBJECTIVE AND SCOPE OF THE ASSIGNMENT

Methodology and Outcome of Assignment

Interaction with office bearers of

Growers’ Associations

Interaction with Growers and field

visits

Recommendations for Revival of the Growers Associations

through realignment of goals and implementing pragmatic

solutions

Sample of select Growers’ Associations in North and

West India (maximum concentration), covering 33% of total Associations

Interacted with office bearers of registered

Growers’ Associations in Chandigarh (January 17, 2013) and Pune (January 21, 2013) – organised by

NHB

Qualitative research approach adopted for this assignment

Growers’ Associations – current scenario...# Name of

Association

Activities Membership

Geographical presence

Interaction of members

Structure and functioning

Revenue model

Human resources Infrastructure Institutional

tie-ups

1 Grapes Organises symposiums for farmers.

35000 7 Periodic meetings

Individual centric

Grant - NHB

1 Working from cooperative office

NHB, APEDA (exporting)

2 Banana Facilitated Insurance package to farmers in Maharashtra, organises symposium, facilitated in getting subsidy for railway freight


Individual centric

Grant - NHB

0 None NHB

3 Flowers 5 Periodic meetings

Individual centric

Grant - NHB

0 None NHB

4 Strawberry Annual festival in Pune, product diversification, eco tourism


Individual centric

Grant - NHB


...Growers’ Associations – current scenario..# Name of

Association





Revenue model


tie-ups

5 Orange Programmes for technical information dissemination, facilitation of finance by banks increased by 511%


Individual centric

Grant - NHB

0 None

6 Stone Fruits Individually financed Organic certification for 900 growers

2000 3 Not regular Individual centric

Grant - NHB

0 None Exporting (APEDA)

7 Aonla 300 2 Individual centric

Grant – NHB

8 Guava Published souvenir for national symposium (2009), planning to diversify product portfolio to jams and juices


Grant – NHB



Association





Revenue model

Human resources Infrastructure Institutiona

l tie-ups

9 Sapota Seminars organised by Cooperative, Association helps scheme outreach to farmers.

5000 Regular Individual centric

Grant – NHB


Exporting (APEDA)

11 Pomegranate Exclusive Cooperative managed cold storage, water tankers for irrigation

5000 6 Regular Individual centric

Grant – NHB


Exporting (APEDA)

12 Vanilla 2000 (at time of formation). Due to crop failure (virus infection) membership negligible. Contemplating to dissolve Association

3 Not regular None Grant - NHB

0 None


Association

Activities MembershipGeographical presence



Revenue model


tie-ups

13 Litchi Grant - NHB

14 Vegetable Implementing NVIUC in select clusters in Maharashtra, started direct sales of vegetables in Pune housing societies

9 Regular Individual centric

Grant – NHB

2 Have independent office for implementing NVIUC initiative

SFAC

15 Apple 1000 3 Not regular Individual centric

Grant - NHB

0 None

16 Aromatic Plants Grant - NHB

17 Passion Fruit Grant - NHB

...Growers’ Associations – current scenario# Name of

Association

Activities MembershipGeographical presence



Revenue model


tie-ups

18 Nurserymen Organise seminars on technical know-how, publish quarterly magazine (Nursery Today)

1428 (1800 life members across 26 states)

26 Not regular Individual centric

Grant - NHB

0 None

19 Orchid Capacity built for farmers (pre-harvest)


Grant - NHB

0 Have independent office

Interaction with Associations and Growers

Motivation

• Lack of growers’ willingness to aggregate

• Growers do not perceive value in Association

• Credibility of Association to deliver not well established

• Associations alive but not active

• Growers selling individually or through cooperatives – no role of Association envisaged

Resources

• No Revenue model for sustenance

• Lack of infrastructure like office premises, furniture and fixtures

• Lack of professional and skilled manpower for day to day operations – management of Associations neither strong nor foresighted

• Age old marketing set up difficult to break in by Association – traders providing input services to farmers + social bonding with farmers

• Lack of knowledge sharing • Senile orchards/farms – no

revival plan

Promotion and Communication

• One size fits all – no customisation as per need of Association.

• No bottoms-up planning approach - growers not aware about Association activities

• Associations hardly connected with – Universities, Labs, extension programmes, other institutions, service providers and vendors

• Communication gaps - Missing inter-linkages between Associations

• No aid received from Govt. for promotional activities

Other issues

• Associations are individual centric

• Objective of Association not perceived by farmers – relate Association with Cooperative

• Select Associations not recognised by Govt.- Pomegranate, Lime (asked to join Mosambi Association)

• Associations are Toothless – no clear objective, no resources, no revenue model, not recognised by Govt. authorities

• High joining fee + annual fee

Initiatives of select Associations & Growers

Strawberry Growers’ Association•Organise annual Strawberry festival in Pune – popularises product, minimises product losses

•Diversified product portfolio – syrup, lassi, cake, jelly toffee, chikki, jam, ice cream

•Farm tourism – tourists stay in cottages, visit farms, pluck fruits as per choice, purchase products at farm gate

Mango Growers•Independent pack house installed inside orchard – capacity 8MT

•Sell individually, no involvement of Association or cooperative

•Not received any help from Association

Guava Growers and Association•Contemplating to diversify product portfolio – jams and juices in tetrapak (contract packaging).

•Published souvenir for symposium in 2009

Vegetable Growers and Association • Implementing VIUC in

Maharashtra• Initiated direct selling of

vegetables in housing societies of Pune – daily 30-40 trucks of 2MT capacity each

• In process of registering 4 producer companies (FPOs)

•Revenue model for Association – 1% of all revenue transactions in these FPOs for activities of Growers’ Association

Some other initiatives• Banana Growers Association

have introduced insurance package for farmers against extreme heat and cold + railway freight from farm to market being subsidised by NHB

• Lime Growers Association organised a 4-5 days annual seminar with Agriculture University as partner + provision of research journal

• Orange Growers Association helped in 511% increase in finance by banks

• Organic certification done for 9500 Stonefruit Growers, cost borne by growers

Progression of Growers’ Associations

Form

ing

Norming

Storming

Performing

Progressive Associations

Stable Associations

Defunct Associations

Progression over the years

Stag

es o

f for

mati

on o

f Gro

wer

s’ A

ssoc

iatio

ns

Formation of Associations

Capacity building and

handholding of Associations

Evolution and Independent

functioning of Associations

Fully functional Associations +

independent of external support + self sustaining

Most Associations are here

Select Associations –Grapes,

Strawberry, Pomegranate

Vegetable Growers Association is

implementing NVIUC

Snapshots from interactions and field visits

Direct marketing by Vegetable Growers

Strawberry festivalPomegranate and Guava Growers

Meeting with Association office bearers and Mango Growers

Identification of gaps hindering functioning / progress of Growers’ Associations

Strategy for revival of Growers’

Associations

Insignificant presence

Individual centric

Financial sustainability

• At ground level• Lacks direct connect

with growers

• Not entirely representing growers’ groups

• No revenue model

Suggested Strategy to revive Growers’ Associations…

Activities - Branding, Promotion, Product development and

diversification

Management of Associations

Role clarity and objectivity of Associations

Jumpstart progression of

Growers' Associations

…Suggested Strategy to revive Growers’ Associations

Jumpstart of Growers’ Associations•Appointed secretariat can jump start activities with seed funding•Arranging initial seed fund - Route implementation of SFAC projects like VIUC to Vegetable Growers Association

Role clarity and objectivity of Growers’ Associations•Defined annual goals and deliverables•Policy advocacy•Revenue model for Association – 1% of all business generated through Secretariat and revenue transacted by cooperatives/FPO to be transferred to Association Defined Annual goals and deliverables to growers

•Facilitation of linkages with Universities, labs, markets, service providers, etc to growers•Knowledge sharing and dissemination to growers•Penetration in existing and development of new markets – like vegetables selling in Pune housing societies

Management of Associations•Engage professionals/ agencies under aegis of CIH to manage the day to day operations of Associations. Two tier structure•Elected members namely Chairman, VP•Secretariat (common for all Associations) comprising appointed professionals for general management, accounts, marketing, etc.

•This will help achieve•Economies of scale•Exchange of ideas for expansion of activities and revenues•Optimal resource utilisation

Activity: Branding and promotion •Through joint publication by all Associations•Organise festivals (Phal- aahar) like Strawberry and Mango in major metropolitan cities•Initiate farm visits and tourism for additional income – like Strawberry

Activity:Product development and diversification•Introduce product diversification to increase shelf life of produce and higher value realisation for growers – like strawberries (syrup, lassi, cake, jelly toffee, chikki, jam, ice cream)

•Tie up with Universities and technology providers to improve productivity and reduce storage/ process losses

•Initiate value addition + processing of products to increase higher value realisation for growers

•Introduce new techniques of post harvest facility management to minimise losses for growers

19

Thank You

Documents

Presentation of Draft Report on Diagnostic Study to Assess and Enhance functioning of Commodity specific Growers’ Associations To June 25, 2013