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
Semi
Finished

Town / City
Town

Minimum Value
Addition

Village
Raw Produce
Raw Produce

Collective Marketing

Value Chain

Group
Group Working
Working
Capital
Capital Loan
Loan

Value
Value
Addition
Addition

Distant
Distant Market
Market

5%
5%

Nearby
Nearby Market
Market

5%
5%

Local
Local Value
Value Add
Add
Processing
Processing

55 -10%
-10%

Collectivization
Collectivization

10
10 15
15 %
%

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

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,

Onion, Madhuca indica,
Buchania Langan

Vegetables, Niger, Cow pea,

Cashew, Tamarind, Mango jelly
local variety), Vegetables, Hill
broom
Collective Marketing

Approach to Collective Marketing

Map
Map produce
produce having
having marketable
marketable surplus
surplus

Group
Group
Orientation
Orientation

Market
Market
Infrastructure
Infrastructure

Market
Market
Linkage
Linkage

Concept
Concept Sharing
Sharing
Build
Build Capacity
Capacity
Systems
Systems in
in place
place
Business
Business plan
plan
Financial
Financial linkage
linkage
Procurement
Procurement

Drying
Drying
Platform
Platform
Weighing
Weighing
Scale
Scale
Logistics
Logistics
Quality
Quality check
check

Search
Search market
market
Negotiate
Negotiate with
with
trader
trader
Linkage
Linkage
Profit
Profit sharing
sharing

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

Drying

Collection

Desheling

Collective Marketing

Collective Marketing The Handling Process

Storage

Weighing

Packing

Negotiation with Trader

Collective Marketing

Collective Marketing The Selling Process

Sales Event

Receiving Money from Trader

Lifting of Product

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!