PHM & Marketing of Fresh Produce

Indian farmers are by & large having small or marginal land holdings. The farmer having harvested their produce takes it to the local and/or a Mandi in the nearest city. The chain of middlemen emanating from the farm till the consumer consists of atleast 5 to 6 traders / middlemen. The entire distribution chain is riddled with un-ethical trade practices with an only constant factor i.e., deceit. As a result, both sides have lost confidence in each other. Frankly in our opinion it is the farmer, who is the aggrieved party, but is forced to live with this system. The author would attribute this phenomenon of greed, purely on the existing business model, wherein the trader wants to maximize their profits without having done any real value addition.

We, at Indian Fresh Produce Company will primarily be a PHM & Marketing company, adding real value to the farmer’s produce, and will create tremendous synergy in Pre & Post Harvest Management. Our vertical integration plans to create Controlled Atmospheric storage and marketing of produce thru our B2B and B2C business model, will establish us as a ONE STOP SHOP for the Indian fresh produce farmers. Our Channel partners will provide proven hybrid seeds, fertilizers and safe crop protection inputs with their detailed application knowledge on the subject and we as a PHM company will provide absolute knowledge on HOW & WHEN to harvest, plus apply appropriate technology to extend the shelf life of fresh produce in accordance with the distance and time between production and consumption sites, the intended use of the produce (fresh vs. processing) and the target market. Together, this will empower the impoverished farmer and will considerably enhance their output. Our proposed C.A. Storage / warehouse will be in accordance to the proposed Warehousing (Development and Regulation) Act, 2005 of Government of India, coupled with the revenue sharing pattern of our business model, and our firm resolve to maintain absolute transparency in our entire operations, with a banker managing the complete finances as an ESCROW manager, will lend an un-precedented credence to our business by all channel partners.

Indian fresh produce market is dominated by an absolutely un-organized sector, both at the supply side, as well as demand side. However, on the demand side we do find a few players like Mother Dairy in National Capital Region and lately they have been joined by Subhiksha, Spencers, Reliance and also expected is Bharti.
With the exception of Reliance & Bharti none other has seriously thought about setting a strong back end and are simply sourcing their requirement of fresh produce from local mandi. The produce is of similar quality as of any street vendor, with zero PHM and NO COLD Chain is being maintained either at the supply or at the demand side, as a result the wastage continues to hover around 1/3. However the business model being adopted by Reliance and Bharti is focusing on setting up hypermarkets and food mart constitutes a very small part of their business.
Whereas, our target is to be PHM & Marketing company and in our B2B marketing strategy, there exists a tremendous synergy with the likes of Subhiksha, Spencers, Reliance and Bharti too. In our B2C, we would specialize in fresh produce and gradually add dairy, dehydrated and processed food, targeting to garner the maximum share of our clients kitchen budget and remain focused as Food Chain company.

A credible alternate and a sustainable system for fresh produce industry, absolutely transparent using technology as a vehicle for growth, creating synergy, enhancing bottom lines by increased output from the same cultivated land, cutting on wastages, adding value by extending their shelf life, resulting in remunerative price for the farmers and every other channel partner.

My experience in manufacturing & trading of electronic components & computer peripherals taught me system analysis and design. Ultimately my inner urge to design & establish a meaningful business that would empower the impoverished Indian fresh produce farmers by creating synergy in Pre & Post Harvest Management & Marketing, made me study extensively on POST HARVEST MANAGEENT of fresh produce. I coupled my study with Indian Agronomy and finally designed a UNIQUE Business model that is designed to build sustainable enterprises with sustainable technologies, sustainable financing systems and sustainable management methods to empower the impoverished with an appropriate technology, that will improve the productivity and boost the Indian GDP. At the same time create a credible and an alternate marketing channel for the Indian Fresh Produce farmers that will definitely inverse the economic and human migration flow ultimately reducing tremendous pressure on our urban areas.

Apart from creating synergy and wealth for every channel partner, we, as a PHM company will almost eliminate post harvest losses considerably and also extend the shelf life of fresh produce, and our warehousing facilities working in accordance to proposed Warehousing (Development and Regulation) Act, 2005 of Government of India, will empower the impoverished Indian fresh produce farmer, whereby they will no longer remain a perpetual distress seller, and will be able to optimize their revenues and yet avail cheap credit facilities from banking institutions and free themselves from the unscrupulous trader.
Our revenue sharing business model would pay our farmers 40% or more of our gross revenue / street price. Having done an extensive study, we assure the IFP farmer can optimize their annual income to almost > Rs. 100,000 on per acre of land holding (this figure is based on fresh produce prices in 2004, whereas at the current levels it would be closer to Rs. 175,000 instead of Rs. 100,000.)
This process will plough back the rural wealth generated in the rural India, to build a strong rural Indian economy, a vibrant market un-matched on this planet, and create N number of economic opportunities for impoverished Indian farmer at their doorstep. Our proposed business plan will inverse the economic & migration flow, thereby reducing pressure on our urban areas.
The same business model if implemented on other agri produce, can also empower the country’s administrators to develop policies and guidelines to safeguard food security net for countrymen.