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Monday, October 10, 2011

Business Opportunity for a new organic farm in Ahmedabad - a project by Gautam and Sandeep

       The project aims to analyze the entrepreneurial opportunity in organic farming in Ahmedabad. In the first phase of the project we plan to do the market analysis (SWOT) of the organic products in Ahmedabad. In the second phase we will create the operational and financial plan for the proposed organic farm. As part of operational plan we will analyze the location, land area, crops, and equipments and running expenses such as fertilizer, seed etc. For financial plan we will use capital investments, operational cost and revenues to assess the feasibility, profitability and risks of the business. For our analysis we plan to collect primary and secondary data from following data sources

Primary Data Sources:

Interviews with organic farmers

Secondary Data Sources:

· NABARD Reports

http://www.nabard.org/fileupload/DataBank/OccasionalPapers/OC%2038.pdf

· Agropedia Database

http://agropedia.iitk.ac.in/?q=content/welcome-agrowiki&page=6

· Department of Agriculture and Co-operation

http://agricoop.nic.in/

· Agricultural Finance Corporation

http://www.afcindia.org.in/services.html

Project on Business models for organic agriculture by Katharina and Jaime

Title:

     Analysis of existing business models for organic agriculture in developed as well as developing countries and identification of limitations and opportunities to promote markets for organic agriculture in Mexico and Russia

Idea:

    Sustainable agriculture is a worldwide growth industry and it can be a profitable, sustainable business. This can be observed in many developed Western countries such as US, Japan or countries of the EU where, in the context of steadily increasing demand for “healthy” organic products, many new businesses have emerged.

     Within the scope of this project, firstly, successful business models, such as Wal Mart’s contracting with local organic producers in the US or small retail chains like Bioland or Reformhaus in Germany shall be analyzed.

    Secondly, chances and obstacles for replicating these business models in developing countries, particularly in Mexico and Russia, shall be analysed.

     The focus will be put on compulsively organic farms in remote areas of the two specified countries (as opposed to voluntarily progressive organic farms as they can be found in many developed countries) where farmers, due to insufficient access to modern technologies, genetically modified seeds, pesticides, etc. are left with the only option of organic agricultural practices. Such areas typically lag behind in terms of well-functioning markets for organic products and efficiency of production whereas argo-diversity is remarkably high. In this context, the project’s target will be to identify opportunities and development strategies to support and enlarge markets for organic products in these areas.

Project on Organic Produce Supply by Harini Siram

  • Find the demand for organic produce in the metros of India, built an e-commerce platform for the customers to place their orders online.

  • Supply chain efficiency: Determine how best we can deliver the product of high quality, service and best price.

  • The future prospective of how the business can be expanded.

  • The approach is to first start from the consumers, identify the demand and then vertical integration to maximise the benefits.

Wednesday, October 5, 2011

Developing a web based portal to promote Greenhouse Agriculture in India - a project by Jalaj Desai

        Greenhouses are framed or inflated structures covered with transparent or translucent material large enough to grow crops under partial or fully controlled environmental conditions to get optimum growth and productivity.

Advantages of Greenhouses:
  • The yield may be 10-12 times higher than that of outdoor cultivation depending upon the type of greenhouse, type of crop, environmental control facilities.
  • Year round production of floricultural crops. Off-season production of vegetable and fruit crops.
  • Water requirement of crops very limited and easy to control.
  • Modern techniques of Hydroponic (Soil less culture), Aeroponics and Nutrient film techniques are possible only under greenhouse cultivation.

                    Greenhouses are being built in the Ladakh region for extending the growing season of vegetables from 3 to 8 months. In the North-East, greenhouses are being constructed essentially as rain shelters to permit off-season vegetable production. In the Northern plains, seedlings of vegetables and flowers are being raised in the greenhouses either for capturing the early markets or to improve the quality of the seedlings.

Methodology:
  • The portal would be a one stop destination for all information regarding Green Houses: Types of greenhouse, how to construct a green house, Crops/Fruits/Flowers that can be grown in a greenhouse etc
  • It would also have success stories of farmers who have implemented greenhouse farming for cultivation of vegetables and fruits
  • The website would also have a list of experts from Academia and practioners with their contact details who could help the user in solving problems regarding building a Greenhouse.
  • Other feature of the portal would be to link all Government agriculture schemes related to sustainable agriculture and specifically green houses so that users know of the assistance provided by government in promoting Greenhouses
  • Another section of the portal would be dedicated to reporting any recent research and developments in this particular field.
  • Information about the markets to sell the greenhouse produce could also be uploaded on the website
  • I feel that building a website would help students, farmers, researchers and people having entrepreneurial ambitions in this field gain access to all information that is needed to be successfully practice greenhouse cultivation.

The contribution of Integrated Pest Management to sustainable agriculture - a project by Deblina Saha and Ramkesh Meena

Scope: 

         IPM is a sustainable approach to managing pests by combining biological, cultural, mechanical and chemical tools in a way that minimizes economic, health and environmental risks. It reduces the amount of chemical pesticides by using three possible approaches:
1. Mechanical: Limits the pest's access to food, water and harborage sites.
2. Biological: Introduction of a natural enemy of the pest.
3. Chemical: Pesticide applications that have minimal risks associated with their use, or application in exact quantities.

        The extent of damage caused by the pests to agricultural crops varies from crop to crop. It can be as low as 8% or as high as 70% as in case of fruit and shoot borer of brinjal plant.

        IPM usage has the following benefits for sustainable agriculture:
1) Does away with the harmful effects of pesticides on environment
2) Freedom from adverse effects of pesticide on the health of the farmers practising IPM
3) Cost reduction, increase in profitability
4) Reduction of bio-magnification
5) Enhances Soil Productivity
6) Reduction in number of pesticide resistant pests

Methodology:

         We plan to review the IPM practices being followed in India currently and compare them with the practices followed abroad and also analysis the existing gap and suggest methods of bridging the gaps.
Further, for a project pilot we plan to coordinate with the Entomology department of Anand Agricultural University, and encourage the following of IPM practices in a certain region of Anand. We would then compare the results obtained as a result of IPM practices being followed with that of past practices, as to whether there has been any leap taken towards sustainable agriculture by following IPM.

Designing of a Hi-Tech organic farm - a project by Prateek Shah and Prashast Srivastava

      Our project would be on the design of a hi-tech organic farm that can be implemented even on a small scale. Minimizing the size necessary for economic viability will be one of the objectives of our project, so that we can implement the design even for small land-owners. The farm will be targeted towards a certain region over which environmental conditions do not vary significantly. 

Key factors to be looked at are:

1. Appropriate crops for that soil, climate and market demand

2. Crop rotation and diversity to ensure fertility and nutrient replenishment: complete schedule of crop planting in 5-year cycle
3. Water sources - rainfall, irrigation, underground water
4. Efficient and precise use of inputs: water, soil, seeds, pesticides, fertilizers
5. Maximum use of sustainable technology to reduce costs/increase productivity
6. Look into feasibility of greenhouse technologies used in China on Indian farms
7. Economic viability in terms of pure financial costs as well as when considering environmental costs (will govt subsidize the latter - something along line of RECs?)
8. Using downward integration through small-scale technology to increase appropriability to farmers (along the lines of Decentralized Cotton Yarn initiative)

Design of supply chain and retail interface for organic food- a project by Maalika Mallela and Aparna Gangadharan

Aim:

          The project aims to design a sustainable model of supply chain management and suitable retail interface for organic fruits, vegetables and food grains.

Methodology:

         The methodology involves study of current supply chain practices and modes of retail for food – both regular and organic and then proposing models from the key learnings. Study would involve both secondary and primary research. The primary research for supply chain management would involve interaction with people in the field to understand the best practices and limitations. Primary research for retail interface would majorly focus on gaining consumer insights with regards to the assortment, communication and outlet design.

Supply chain and marketing of organic food in India : A project by K. Abhijit Aswath & Rahul Patil

           The demand for organic food in India is rising. However, many people still do not realize the benefits of organic food and are ignorant about it. In these circumstances, marketing of organic food is very important. By creating awareness, we can create a pull for the products and by incentivizing the distributors and farmers, we can create a push.

           Also, the supply chain for food products in India is much undeveloped. This supply chain already causes a lot of food wastage. This is for the inorganic foods. Organic foods have a shorter shelf life. With such a supply chain, the danger of wastage is increased even more. Hence, having a sustainable and efficient supply chain is very important for the development of the organic food market.


Objective:


1. To analyse the current marketing practices and come up with best marketing practices.

2. To analyse the current supply chain, spot inefficiencies and suggest recommendations

Scope:


For marketing, we propose to analyse the efforts of small farmers and larger corporations to identify which practices are good and viable. For supply chain, we propose to map out the current distribution system and facilities and identify the areas for improvement.

Methodology:


The methodology to be used will be mainly secondary research and primary research if we are able to contact the relevant players in this field.

Tuesday, October 4, 2011

Production of Organic products, compliant to international certifications, while assuring the sustainability of the farmer's lives through the example of the Suminter India Organics Corporation - a project by Oana and Constance

Objectives

            The objective of this study is to understand how to produce organic products, compliant to international certifications, while assuring the sustainability of the farmers’ lives through the example of the Suminter India Organics Corporation. We will see in particular how technology is required to sustain a mode of production which apparently requires no addition of technology.

Overview


            Agriculture in India faces at least two problems, that of the environment preservation and that of farmers’ welfare.

            Suminter India Organics is a supplier of certified organic products from India to Europe and the US. The main motor behind Suminter's business is that it can maximize value capture by being a totally integrated Indian owned supply chain firm. Its business model is based on the premise that by providing sufficient training as well as organic certification to Indian farmers it can, on the one hand, provide clients with best quality products and, on the other hand, enable farmers to reach a decent level of living through agriculture while paying them over market prices. 
            Suminter's main aims are : 
- build a strong relationship with farmers
- follow then up in the conversion process by providing the necessary inputs
- continuously monitor the production process in order to make sure of the quality of the products
- process and package the products to be exported
- distribute them on international markets

Approach


We will examine:
- The process of organic certification, and the dynamics of this organic business model

- The necessity of a coordinating corporation to this model

- Alternatives to this exporting effort, namely local production, and its ability to bring stability to the farmers.

Rural Internet Kiosks - a project by Anirudh Raghavan

Objective

           The objective of this project is to understand the technological, financial and logistical constraints in bringing about a well connected network of rural internet kiosks in India, and to attempt to design an improved system of bringing relevant information to farmers in near real time.
 
Overview

           The issue of vital information to farmers is not new. Dhows like Krishi Darshan were among the first introduced on Indian TV. Yet, with issues like poor computer infrastructure, unreliable phone and satellite connectivity, and poor roadways, making progress in remote villages still remains difficult for today’s rural internet kiosks.

New start-up KioskNet has been set up by IIT alumni, and it combines new and old technology, thereby eliminating the need for unreliable infrastructure at certain stages of the bidirectional information transfer. Further, they have made their software and hardware configurations open source, so that it may be studied and improved. Perhaps more importantly, I will try to address the issue of scalability of the project to more villages in India.
 
Approach

· Detailed understanding of how KioskNet works, by interviewing its founder, and my cousin, an IIT Delhi alum. I had previously attended his pilot presentation at IIT Madras.

· Analysis of the current problems associated bringing internet to villages in India

· Reviewing the current government policies and concessions provided for rural internet

· Taking clues about substitute materials and strategies from rural kiosks in other developing countries, including successful models in Africa

· Trying to analyze the current flowchart with an operations and optimization perspective

· Coming up with suitable modifications to KioskNet and how it will educate farmers to use the new system

Building Farm Tech Prosperity - a project by Kantesh and Anirban

      Farm Tech Prosperity involves making the farmer’s life prosperous through the inclusion of technology in farming. It encompasses mechanization which seeks to make farmers prosperous through the use of technology. It also works in the area of inputs from critical water to nutrients and seeds. Farm Tech Prosperity should be aligned with the leading farm equipment manufacturer’s philosophy, driving positive change, helping farmers to improve farm productivity and increase price realization, thereby raising their prosperity.

What do we study?

· How can Farm Tech Prosperity be enhanced across the agricultural value chain, mainly focusing on Farm equipments.

· Study the entire farming value chain and identify areas which have the maximum impact in creating Farm Tech Prosperity.

· What are the challenges? How can the business leverage existing services, current strengths and build new competencies? Which new competencies must the business acquire?

Integrated Pest Management - a project by Abhishek and Shruthi

         Integrated Pest Management (IPM) is an effective and environmentally sensitive approach to pest management that relies on a combination of common-sense practices. IPM programs use current, comprehensive information on the life cycles of pests and their interaction with the environment. This information, in combination with available pest control methods, is used to manage pest damage by the most economical means, and with the least possible hazard to people, property, and the environment.

          IPM is not a single pest control method but, rather, a series of pest management evaluations, decisions and controls. In practicing IPM, growers who are aware of the potential for pest infestation follow a four-tiered approach. The four steps include:

Ø Set Action Thresholds

Before taking any pest control action, IPM first sets an action threshold, a point at which pest populations or environmental conditions indicate that pest control action must be taken. The level at which pests will either become an economic threat is critical to guide future pest control decisions.

Ø Monitor and Identify Pests

Not all insects, weeds, and other living organisms require control. Many organisms are innocuous, and some are even beneficial. This monitoring and identification removes the possibility that pesticides will be used when they are not really needed or that the wrong kind of pesticide will be used.

Ø Prevention

As a first line of pest control, IPM programs work to manage the crop, lawn, or indoor space to prevent pests from becoming a threat. These control methods can be very effective and cost-efficient and present little to no risk to people or the environment.

Ø Control

Once monitoring, identification, and action thresholds indicate that pest control is required, and preventive methods are no longer effective or available, IPM programs then evaluate the proper control method both for effectiveness and risk.

         The objective of our project will be to monitor and study the latest methods of integrated pest management techniques used around the globe and suggest the best methods that can be used in Indian agricultural scene.

Trade Opportunities in Organic products in India - a project by Nizar and Varun

Objective

        Our objective is to study the trade opportunities in Organic products in India and to develop a business plan / book of guidelines for organic farmers.
 
Overview

        Organic agriculture offers trade opportunities for farmers in both developing and developed countries. The market for organic products is expected to grow worldwide in the years to come. It has the potential of becoming high yielding for the farmers but thismarket is not very well known to most farmersespecially in India -there is lack of information among the farmers. Moreover, the nutritional benefits for the consumers are also immense and thus there is a huge potential in this area.

India is a country where the farmers still majorly employ traditional methods of farming. We need a system in place which would not only educate the farmers about the potential opportunities in the area of organic farming but also develop a sustainable market for the same.
 
Approach

· Analysis of Organic farming and organic products in India

· Study of the consumer preferences and awareness when it comes to organic products

· Analysis of the domestic and international market

· Current scenario of the organic product industry

· Cues from other International markets and initiatives

· Come up with a strategy for a sustainable business model for organic products

· Preparing a consolidated document that will enable farmers to understand the tricks required to succeed in the organic food industry

Does facilitating sustainable agriculture make good business? Examples from India - a project by Anandh Sundar


Introduction:

           While sustainable agriculture has been a hot theme among academics, non profits and activists, there has not been much research/press attention to the work done by big corporate. If we define sustainable agriculture to mean anything which lowers resource use/pesticide consumption/improves farm fertility, then many Indian companies are doing yeoman’s work, and attracting stellar stock market valuations. For example, Jain Irrigation(drip irrigation, food processing), M&M/DCM Shriram/Escorts(tractors), Tata Chemicals(fertilizers), Amul(helping farmers improve milch stock productivity) etc. This aspect is often not highlighted.

Objective:

            Explore whether sustainable agriculture facilitating businesses enjoy better profits/mcap/returns, and the other benefits from this. List out business models/companies which make sense from triple bottomline.

Methodology:
  • Identify agri business companies throughout the value chain/supply chain
  • Analyze their business segments/practices/models
  • Design a questionnaire for those companies.
  • Use CMIE Prowess and other databases to crunch numbers for those companies, and for economic aggregates relating to India.  
Output:
  • List and explain business models helpful to sustainable agriculture.
  • Outline the various Government policies(subsidies, tax breaks, capital grants, R&D) for them.
  • Name the main Indian companies which help sustainable agriculture, and those harm it.  
  • Suggest best practices for companies to market & monetize their green activities. For example,Program of Activities under Kyoto Protocol to get carbon credits. 
References:
  • Annual Reports/Websites of Indian agri business companies.
  • Investor presentations/interviews/reports.
  • GOI websites
  • National/International organizations & reports(like FAO).
  • Academic research
  • Expert interviews(equity analysts, professors, public policy experts, investor relations)

Supportive cost-effective technological innovations for agriculture and other rural applications, their need and business opportunity emerging from them - a project by Nehul and Pratik


              In recent times, there has been increasing support for use of technologies in making agriculture sustainable. Some of these include new disease resistant hybrids, biological pest control, reduced pesticide use and reduced amount of fertilizers. While above mentioned technologies directly increase the efficiency of use of various inputs for agriculture, there is a scope for certain supportive non-agricultural technologies to emerge and increase the productivity further.

In the first session, Prof. Anil Gupta talked about various problems including Water loss when farmer sleeps at night with tubewell switch in on state. To eliminate this problem, 
  • How about an electronic system that incorporates a simple inverter based water level indicator coupled with a relay switch to automatically switch off the power to tubewell when adequate level of water has been pulled out  OR
  • A device to remotely check if there is electricity, and to automatically turn the irrigation pump on and off, all through a mobile phone, thus helping the farmer avoid long travel, bad weather or hazardous locations in reaching remotely located water pumps
Given below are two examples of the existing supportive technologies:

1) Mech Bull Tractor: http://www.vigyanashram.com/
2) Nano Ganesh: http://en.wikipedia.org/wiki/Nano_Ganesh

Methodology to be adopted 
  • Study some of the existing supportive technologies and understand their reach, implementation and scalability etc. 
  • Identify gaps in the current models on any of the above parameters or any new parameter
  • Developing new value proposition or idea(s) for technological innovation based on above analysis
  • Analyze business potential for some of the ideas we develop

Monday, October 3, 2011

Agriculture's potential to combat climate change: Focus on Soil Carbon Sequestration by Paul-Emile and Sajid


             “Soil Carbon Sequestration is the process of transferring carbon dioxide from the atmosphere into the soil through crop residues and other organic solids, and in a form that is not immediately reemitted”. This would go a long way in offsetting the carbon emissions from fossil fuels and at the same time improving the soil quality and agricultural productivity in the long run. This can be accomplished by management systems that would add large amounts of biomass to soil, do not disturb the soil, improve its structure, conserve soil and water and enhance the activity of organisms in the soil. Eg: Continuous no-till crop production.

              Most of the efforts and focus related to reducing the carbon footprint of agriculture has been on the livestock-related methane emissions and nitrous oxide emissions from fertilized fields or the potential to generate energy from biofuels and the anaerobic digestion of animal excreta. But one big area that has not received enough attention is related to soil carbon (mainly through sequestration). According to IPCC, the soil carbon sequestration represents around 89% of the potential for mitigation of the green house gas emissions by agriculture. Around 10% of the carbon emissions due to human activity could be attributed to agriculture. But as different from the carbon emissions from fossil fuels ,soil carbon store has the potential to be recreated by adopting suitable farming practices. This has the potential to remove substantial quantities of carbon from the atmosphere at least for the next 20 years. Moreover, the raise in the soil carbon levels would contribute significantly to climate adaptation by improving soil structure and quality. This would go a long way in reducing the impacts of flooding, droughts and desertification thus leading to improvements in global food and water security.

Sources:
http://ohioline.osu.edu/aex-fact/pdf/0510.pdf
http://www.soilassociation.org/LinkClick.aspx?fileticket=BVTfaXnaQYc%3D&tabid=574