Our Working Culture and How We Work
SET UP A JOINT VENTURE
We set up joint venture companies in which farmers, impact investors and entrepreneurs are equal business partners. Farmer’s farm, investor invests and entrepreneurs run the whole thing. We own it together.
INVEST IN NEW FACILITIES
The joint venture invests in facilities that increase agricultural output, improve infrastructure and ease market access. Think of a cold storage facility or a food processing plant.
MORE PROFIT, BETTER LIVING
Thanks to the investments made by the joint venture, farmers generate more revenues, make more profits and raise their standards of living. The impact investor is paid back on commercial terms and invests again to create a new world-class farmer-owned company.
Building a Bridge
Apple Project for Farmers
The goal of the apple project is to facilitate a process of empowerment among small-scale apple farmers in order to promote sustainable socio-economic development. Our model works with the farmers, rather than to establish leadership, the farmers are building their own company.
Provide Margin to Farmers
Farmer economic ownership
Focus on High Hilly areas
Apple project transform the socio-economic
Partnership between investors and group of farmers
Agro-businesses is to make them economically
Genesis of the Apple project India
6 JOINT VENTURES, 1 COLD STORAGE
Since 2007 we have set up six joint ventures in hilly Naogoan, the heart of the apple growing region in Uttarakhand, India. These six joint ventures collectively own and run six apple collection points, a state-of-the-art cold storage facility and a professional apple juice processing unit.
3500 FARMERS INVOLVED
The number of participating farmers has grown from 500 in 2007 to 3.500 today. The cold storage facility is currently filled with 700 Mega Tonnes of juicy apples. Every year, we sell apples off season for a premium price. In addition we have produced and sold 15.000 liters of apple juice from B and C grade apples.
MORE JOBS, PROUD PEOPLE
The income of apple farmers has risen significantly, women have found work in the juice processing plant and teenagers don’t have to migrate anymore to big cities in search for a day job. Moreover, Uttarakhand’s apples have become known for their excellent quality – a source of pride for its people.
OUR RELATIONSHIP WITH FARMERS
More then 30 000 of happy farmers
The project aims to transfer complete economic and legal ownership of the joint venture company to the farmers in order to ensure long term livelihood security for them and their active participation in the value chain. The profits and assets of the FT are owned by the farmers in proportion to their cumulative patronage. On the lines of the same logic, premium is distributed on the basis of annual patronage. Dividend distribution is based on the amount of shareholding in the enterprise. The shareholding, in turn, is decided by cumulative patronage/supply of the produce. On repayment of the investment of HSGW and bank loan, farmers eventually become the owners of the whole business. They would be the owners of the assets of the trust and joint venture companies on the basis of their cumulative produce supplied to the companies. The implementation strategy adopted to implement the apple project India consists of 8 phase
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HOW WE HELP THEM
SJS is responsible for facilitating the FTs and JVCs and providing technical backstopping to primary producing farmer groups and companies. Such backstopping is related to organisatational, advisory and training services, operational support/facilitation, and business and marketing support.
About SJS India
Who We Are & What We Do
What we are good at
The objective of the apple project is to create a profitable model of business driven, decentralized independent and small scale production with coordinated arrangements for processing and marketing by providing technical, managerial and investment support to enable farmers collectively to move up the value chain with the help of ICT ( Information & Communication Technology).
The need for the Apple project was felt after the realisation that small farmers in a market-oriented agribusiness get further marginalised mainly due to the dominance of mandis, a chain of well-organised intermediaries who control the entire process from credit supply for farm inputs, transportation and marketing of produce. Inaccessibility of purchasing hubs, lack of economies of scale due to limited production by individuals, the seasonality and perishability of a crop such as apples make it difficult for small farmers to coordinate a smooth supply of their produce to markets. As a result the produce is sold in bulk without any value addition and differentiation according to quality, size etc.
Formation of farmer trustsThe main beneficiaries of the project, the small and marginal farmers, have meanwhile grouped in well functioning farmer trusts. For all functional collection points, one farmer trust has been formed for the primary processing of apples upon harvest. The apples are bought by the primary producing company, a joint company of FFT India and the farmer trust concerned. This company is engaged in the collection, procurement, sorting, grading, packing, possibly pre-cooling and reselling of the apples.
Thus far, the project has set-up four (8) of such farmer trusts and eight joint companies for this primary processing.
Name of different farmer trust
1. Syuri Nogoan Seb Utpadak Krishak Sangrahan Evm Vipanan Klyan Trust
2. Purola Naitwar Seb Utpadak Krishak Sangrahan Evm Vipanan Klyan Trust
3. Dhari Kafnol Seb Utpadak Krishak Sangrahan Evm Vipanan Klyan Trust
4. Bavar Silgaon Seb Utpadak Krishak Sangrahan Evm Vipanan Klyan Trust
5. Himalayan Farmer Devlopment Trust
6. Himalayan Mahila Swarojgar Trust
7. Harshil Gangotri Fal Utpadak Krishak Kalyan Trust
8. Taknor Fal Utpadak Krishak Kalyan Trust
Name of different joint Ventures companies
1. PurolaNetwar Farm Collectives Private Limited
2. DhariKafnol Farmers Agro Processing & Marketing Private Limited
3. Bavar Silgaon Farmers Agro Processing & Marketing Private Limited
4. Syuri Nogoan Fruits Collection Pvt. Ltd.
5. Harsil Gangotri Fruits Processing And Marketing Private Limited.
6. Taknor Jhala Fruits Collection And Processing Private Limited
7. FftHimalyan Fresh Produce Private Limited
8. Hlmalyan Fresh Juice Private Limited
Farmer Organisations function at the area level to bring together farmers from different villages. Each Farmer Organisation brings together about 20 villages.Each year one annual general meeting (AGM) of the Association shall be held where the performance for the year shall be shared with the members as well the total performance of the enterprise shall be shown to them.Each year the Association would select 11 members out of themselves who shall be called as the members of the governing body and which shall be able to nominate one person in the legally registered trust and one director in the Joint Venture Company
Achievements of Apple project :
- Establishes link between Apple Producers, Village Centers , Collection Centers and Head Office through ICT.
- Agricultural information transfer and sharing.
- Collective efforts of farmers, coming together (so far 2800+ farmers associated).
- M.I.S. on planning and target of Apple collection prior to apple season.
- M.I.S. on Ownership transfer and profit or premium Distribution to the farmers.
- ICT kiosk at different village centers .
- Mobilisation of investments (Loan and subsidies applications responded positively)
- Motivating producers to move up in the value chain
- Market chain development for quality and assured buyers
- Recognition and reputation from government, buyers, media (TV, print media) banks and financial institutes.
Notably this new business model towards development where farmers and investors become equal business partners has a lot in common with the well known micro-credit schemes. At present the approach is tested as a combination between a grant and loan component of the project. It is a collective action between financing institutions, farmers, NGOs, private entrepreneurs and government in order to compete and flourish in open market with benefits flowing back to farmers.