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Agribusiness

Budding entrepreneurs in rural Bihar

Vinay Kumar Vutukuru's picture

Agricultural entrepreneurship

Rahul Kumar is a 25-year-old community extension worker at Jeevika in the eastern Indian state of Bihar. He set up an agri-business enterprise six months ago and it’s turned out to be quite a success. Kumar earned more than INR 180,000 ($2,700) in barely one month during the rainy season crop cycle, also known as Kharif crop in India. What’s more, he sold quality seeds and other agriculture inputs to more than 150 farmers during that period, helping them save over INR 50,000. “Whatever I could earn as a Village Resource Person (VRP) over a period of one year, I managed to earn that much as an agri-entrepreneur in just one month,” said Kumar.
 
A three-way partnership between JEEViKA (a Government of Bihar supported program for economic empowerment), Syngenta Foundation India (a civil society organization working towards enhancing farmers’ incomes) and the National Institute of Rural development & Panchayati Raj (NIRDPR), an academic institution helped Kumar and his farmer friends achieve a remarkable turnaround in their fortunes.
 
In this partnership, NIRDPR provided training to the budding entrepreneurs under the overall technical support of SFI, who provided on-the-ground hand-holding and mentoring support. JEEViKA provided the institutional platform from where promising local youths were identified, selected and incubated to work as entrepreneurs. The community organizations, in many cases, also provided the initial credit for seed capital to these entrepreneurs to start their agri-business ventures. 

Pathal Ram, a small farmer from the same village said, “If I could get good quality seeds and other inputs at my home, what is the point of going to the market? It saves my time and money. I could use this time in my field for better cultivation.”

Can disruptive business models and technologies be the key to unlocking trillions in climate finance?

Alzbeta Klein's picture



It is no secret that disruptive “technologies of tomorrow” are now regularly touted as a keystone to addressing a changing climate.  A recent study by IFC shows that building on technological innovation, global markets for climate-smart business already exceed US $1 trillion in size in key industries ranging from energy storage and electric vehicles to green buildings and supply chain logistics. By scaling up business models relying on these technologies, developing countries can unlock trillions more in investment opportunities while promoting shared and sustainable economic prosperity.

Agriculture is the ‘green gold’ that could transform the economy and the lives of Ugandan farmers

Christina Malmberg Calvo's picture



Agriculture is Uganda’s ‘green gold’ that can transform the economy and the lives of farmers.  Why is it then that Uganda’s well documented agricultural potential is not realized? What specific public-sector policies and actions are required to unleash the entrepreneurial energy of Uganda’s largest private sector actors—its farmers?

Innovative agribusinesses could drive agriculture modernization in Sri Lanka

Andrew D. Goodland's picture

Agribusiness can help drive prosperity in Sri Lanka – and we know just the entrepreneurs to do it. Over the last few months, we have seen over 1000 proposals come pouring in for consideration under the matching grants scheme (MGS) for agribusiness.  Today, the Government will sign the grant documents with the first entrepreneurs to make the cut.



The winning proposals lay out a clear plan for commercial and export-oriented agriculture initiatives that facilitate private sector investment, provide technical assistance, strengthen farmer producer organizations and promote smallholder–agribusiness partnerships.
 
The goal is to increase their competiveness, business orientation and market position in order to make them more attractive business partners in the value chain. It’s an ambitious task, but Sri Lanka’s agri-entrepreneurs have risen to the challenge.
 
Matching grants scheme supports agribusiness
 
The matching grants scheme, implemented by Sri Lanka’s Ministry of Primary Industries comes under the Agriculture Sector Modernization Project. Supported by the World Bank, with additional funding from the European Union, the project is implemented through the Ministry of Primary Industries, the Ministry of Agriculture, and five participating provinces including the Northern, Eastern, Central, North-Central and Uva Provinces.
 
A rigorous and transparent selection process was used to create a shortlist. Successful applicants would be offered up to 50 percent of the investment required through the scheme, matched by their own funds or raised from commercial loans.  
 
These small enterprises need the boost. Today, beside a few major agriculture companies, most operators in Sri Lanka are small-scale cultivators who face problems related to low productivity and lack of diversification, absence of market linkages, non-availability of inputs and limited access to credit facilities. Farmers are not organised and tend to focus on low value crops that limit income generation.

Chocolate innovation: Sweet tooth hackers solve cocoa farmers’ challenges

Katie Nunner's picture

While chocolate is a sweet treat for consumers around the world, its producers face many challenges. Every year, more than five million family farmers in countries like Côte d’Ivoire, Cameroon, Indonesia and Brazil produce about four and a half million tons of cocoa beans, according to the World Cocoa Foundation. Farm-level input providers, financial institutions, chocolate manufacturers, development organizations and more are coming together to create digital solutions to improve access to finance and boost agricultural productivity for a sustainable and climate smart cocoa supply chain. 

Last week, the World Cocoa Foundation’s partnership meeting brought together key stakeholders from small scale farmers to large multinationals including Cargill, Nestle, and Mars, under the theme “Accelerating Sustainability Through Technology and Innovation.”

To spark the industry into further innovation and collaboration, infoDev partnered with the WCF to sponsor the second annual Chocothon, a two-day hackathon where three teams came together to “hack” the cocoa supply chain and generate new creative solutions to the common challenges cocoa farmers and suppliers face. The Future Food Institute, the International Trade Center, and Valrhona, a premium chocolate manufacturer, were all heavily involved in the Chocothon as mentors and a number of us from infoDev joined in the excitement. Given their experience with cocoa supply chain partners, Valrhona’s co-sponsorship and engagement provided valuable insights to guide the ‘choco-hackers.’  
 

The Geo Cocoa, Kejetia, and Cocoa Run teams pose together with some of the Chocothon mentors.
Photo Credit: World Cocoa Foundation

Agriculture 2.0: how the Internet of Things can revolutionize the farming sector

Hyea Won Lee's picture
Nguyen Van Khuyen (right) and To Hoai Thuong (left). Photo: Flore de Preneuf/World Bank
Last year, we showcased how Vietnamese farmers in the Mekong Delta are adapting to climate change. You met two shrimp farmers: Nguyen Van Khuyen, who lost his shrimp production due to an exceptionally dry season that made his pond too salty for raising shrimp, and To Hoai Thuong, who managed to maintain normal production levels by diluting his shrimp pond with fresh water. Now, let’s suppose Nguyen diluted his shrimp pond this year, another year with an extremely dry season. That would be a good start, but there would be other issues to contend with related to practical application. For example, when should he release fresh water and how much? How often should he check the water salinity? And what if he’s out of town?
 
Nguyen’s story illustrates some of the problems global agriculture faces, and how they unfold for farmers on the ground. Rapid population growth, dietary shifts, resource constraints, and climate change are confronting farmers who need to produce more with less. Indeed, the Food and Agriculture Organization (FAO) estimates that global food production will need to rise by 70% to meet the projected demand by 2050. Efficient management and optimized use of farm inputs such as seeds and fertilizer will be essential. However, managing these inputs efficiently is difficult without consistent and precise monitoring. For smallholder farmers, who account for 4/5 of global agricultural production from developing regions, getting the right information would help increase production gains. Unfortunately, many of them still rely on guess work, rather than data, for their farming decisions.
 
This is where agriculture can get a little help from the Internet of Things (IoT)—or internet-enabled communications between everyday objects. Through the IoT, sensors can be deployed wherever you want–on the ground, in water, or in vehicles–to collect data on target inputs such as soil moisture and crop health. The collected data are stored on a server or cloud system wirelessly, and can be easily accessed by farmers via the Internet with tablets and mobile phones. Depending on the context, farmers can choose to manually control connected devices or fully automate processes for any required actions. For example, to water crops, a farmer can deploy soil moisture sensors to automatically kickstart irrigation when the water-stress level reaches a given threshold.

Our food system depends on the right information—how can we deliver?

Diego Arias's picture
Photo: CIF Action/Flickr
For most of us, watching the weather forecast on TV is an ordinary, risk-free and occasionally entertaining activity. The weatherman even makes jokes! But when your income depends on the rain or the temperature, the weather forecast is more than just an informative or entertaining diversion. Information can make or break a farmer’s prospects. Farmers get a sense of the risks they face down the road and plan their planting, harvest, use of inputs like fertilizers and pesticides, crop and livestock activities and market sales around weather reports and other information—on prices, local pests and diseases, changes in credit terms and availability, and changes in regulations, among other things.

The availability and quality of such agriculture risk information is hugely important for farmers, and the potential impact of bad information can be quite costly, leading the farmer to make wrong decisions and eventually lose revenue. Information systems that have unreliable sources and/or poor data processing protocols, produce unreliable results, no matter how complex the data processing model is. In other words, one can have “garbage in – garbage out.” Information is integral to agriculture risk management, not only in the short term to hedge against large adverse events, but also in the medium and long term to adapt to climate change and adopt climate smart agriculture practices. Climate-smart agriculture programs and agriculture risk management policies are toothless unless farmers have reliable information to implement changes on the ground.

Investing in agriculture risk information systems is a cost-effective way of making sure that farmers--and other actors along the food supply chain-- make the right decisions. But agriculture risk information systems in most countries suffer from lack of capacity and funding. Mexico, a country with an important agriculture sector, does not have information on market prices of agriculture products like maize, which is why a new Bank project aims to strengthen their capacity in this area. Mexico is not alone. Argentina solved this same problem recently with World Bank support, creating a market price information system for basic grains.

To farm, or Not to farm? Changing the youth’s mindset is the answer

Mercy Melody Kayodi's picture



Let me answer it this way: If you are a youth, you are damned if you farm, and you will be equally damned if you don’t. Farming as an option is very key to enabling the continuous production of food to meet our consumption demand. We are in an era where we have to attract the young people to join food production, since majority of them think it is dirty work. Interacting with young farmers has only left me understanding that, besides the lack of mechanisation, we lack the best farming practices that would otherwise increase our earnings.

If Eating is “Cool” then Farming must be “Cool” too

Willfred Iyamuremye's picture
If Eating is “Cool” then Farming must be “Cool” too


Most youths’ perception of agriculture and agribusiness reflects the image of a dirty, exhausted poor farmer carrying a rusty hoe on puffy, tired shoulders somewhere on the outskirts of modernity.

Agribusiness trade as a pillar of development: Measurement and patterns

Fabian Mendez Ramos's picture

Agribusiness is en vogue, fostered by a new understanding of the agricultural sector as a major contributor to overall growth and poverty reduction and through its linkages with the manufacturing and services sector.

In order to efficiently link farmers and consumers across countries and regions, quantifying and analyzing agribusiness trade flows is key. But how can we measure international agribusiness trade flows in a systematic way to identify important patterns?


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