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
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
there are several aspects u can look at :
ReplyDeletea) platform for consumers of organic products which can act as a feed forward to producers
b) the variety of demand will influence the nature of diversity in supply that entrepreneurs need to offer
c) the him delivery is their usp and we need to factor new models of ascertaining the demand and supply
d) what product features will consumers need/like to know, find out through a small on line survey
e) i called up that home food couple but they dont supply on sunday but then it is strange is nt it? so disconnect between different kinds of consumers and suppliers needs to be mapped so that relevant space can be charted out
one can not meet all needs, one need not meet all needs,
1) Do look out for government incentives and schemes for food processing, green fertilizer, certification costs, quality testing etc. though one cannot build a business model solely around subsidy, but these factors would enable a faster breakeven.
ReplyDelete2)Also, I would suggest you start with organized retail, since they can better ensure distribution reach, and give faster and more updated price signals, and can absorb surplus capacity in their outlets in other cities.
There are many subsidies by the government for organic inputs and the produce. Cheap credit availability by Nabard and other banks could also be taken into consideration.
ReplyDeleteYou can also look at some of the already existing projects for comparison like Shrey is doing
ReplyDeletehttp://iima-mtsa.blogspot.com/2011/10/project-on-sustainable-organic-farming.html
As I understand, you plan to open a new organic form in Ahmedabad. It won't be a bad idea to do a feasibility analysis of the extent of vertical integration you want to maintain in the long run (especially towards the sales and distribution side)
During our visit to the organic farm, the owner mentioned two points:
ReplyDelete- the neighbors are getting very much aware of his organic farming
- the demand of organic products is higher than what he can supply
Thus, if you talk to some farmers near that area, you may already get some interested party whose switching cost may be lower. Also, opening an organic farm near the already existing one may give both of them cost reduction opportunities and the consumers more choice to meet their demand.
Since you are considering to have an organic farm, It is important to devise an plan about what are you going to do during the transition period from a normal farm to an organic farm which typically takes 3 years, the period during which you cannot label your produce as organic.
ReplyDeleteFind out the subsidies that are being provided by the government. For example, the central government provides 50% subsidy for greenhouse and shed
Also go for closed loop systems with less entropy, like for example produce your vermicompost in the farm and efficient methods of supply chain one of which is packing at source.
You can also try to implement hub and spoke model and be a hub for all the organic farms around so that you can share the cost of the transport, packing and grading and the risk as well
Also be aware that you have to be innovative in marketing your produce since it is a niche market but growing at a fast pace