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Creating Sustainable

Livelihoods for the Poor

Collective Marketing Model


Background – Small & Marginal Farmers
 Small landholding, < 2 hectares (80%)
 Marketing challenges
 Limited marketable surplus
 Dependency on local intermediaries
 Lack of value addition
 Lack of market information
 Lack of access to terminal market and organised
private players
 Lack of access to formal finance
 Minimal reach of organized private retail chains

Collective Marketing
The Product Pyramid

Finished
Town / City
Semi
Finished Town

Minimum Value
Addition
Village
Raw Produce
Raw Produce

Collective Marketing
Value Chain Value
Value
Addition
Addition

Distant
Distant Market
Market 5%
5%

Nearby
Nearby Market
Market 5%
5%

Local
Local Value
Value Add
Add
Processing 55 -10%
-10%
Processing

Group
Group Working
Working 10
10 –– 15
15 %
%
Capital
Capital Loan
Loan Collectivization
Collectivization

Raw
Raw Produce
Produce
Collective Marketing
MART Solution
 A market led approach to sustainable livelihood
promotion
 Empower the small farmer through collectivization to
achieve economies of scale and better negotiate the
market
 Link farmers to mainstream market
 Focus on public-private-community-partnership
 Facilitate and build capacity of farmers - but not get
involved in buying and selling
 Demonstrate scalability
 Maximize return to farmer with minimum additional
investment

Collective Marketing
Coverage

Initiated in most backward Districts of Orissa

Particulars Started in Expanded to


Districts 2 6
Coverage (districts) Balangir, Nuapada + Kalahandi, Koraput, Gajpati,
Kandhamal
No of Villages 20 500
No of SHG members 200 3000
Turn over (Rs) 5 Lacs 200 lacs
Products Minor Millets, Cotton, Vegetables, Niger, Cow pea,
Onion, Madhuca indica, Cashew, Tamarind, Mango jelly
Buchania Langan local variety), Vegetables, Hill
broom…
Collective Marketing
Approach to Collective Marketing

Map
Map produce
produce having
having marketable
marketable surplus
surplus

Group
Group Market
Market Market
Market
Orientation
Orientation Infrastructure
Infrastructure Linkage
Linkage

••Concept
Concept Sharing
Sharing ••Drying
Drying ••Search
Search market
market
••Build
Build Capacity
Capacity Platform
Platform ••Negotiate
Negotiate with
with
••Systems
Systems in in place
place ••Weighing
Weighing trader
trader
••Business
Business plan
plan Scale
Scale ••Linkage
Linkage
••Financial
Financial linkage
linkage ••Logistics
Logistics ••Profit
Profit sharing
sharing
••Procurement
Procurement ••Quality
Quality check
check

Planning
Planning for
for the
the next
next produce
produce

Collective Marketing
Collective Marketing – The Preparatory Process
Training Sensitization

Sensitization Exposure

Collective Marketing
Collective Marketing – The Produce Process
Harvesting Collection

Drying Desheling

Collective Marketing
Collective Marketing – The Handling Process

Storage Weighing

Packing Negotiation with Trader

Collective Marketing
Collective Marketing – The Selling Process
Sales Event Lifting of Product

Receiving Money from Trader Marketing of Hill Broom

Collective Marketing
Overall Benefits of Intervention

Higher value for produce

Better negotiating power in market

Better understanding of market dynamics

Marketing infrastructure created

Collective Marketing
Thank You!