Grameen Foundation

Summary The project involves analyzing People’s Forum’s (India) existing agricultural clusters (mainly pulses and maize) to determine the opportunity and relevance of forming producer’s co-operatives so that individual enterprise owners are able to increase their profits. People’s Forum seeks a team of two volunteers with knowledge of community-based organizations and business planning. Previous experience in agricultural value chain research or analysis in Asia is preferred. Knowledge of Hindi would be an added advantage. The volunteer(s) are expected to spend 2-3 weeks in Bhubaneshwar (and possibly rural branches of Orissa and Chattisgarh) in India. Background People’s Forum is a twenty year old organization in the state of Orissa in India. It has been working in the fields of mental health, natural resource management, aged care, training research & development, microenterprise development and microfinance. The microfinance project is known as Mission Annapurna. People’s Forum is currently active in two states and has a member base of more than 85,000. It uses the Self Help Group (SHG) methodology and emphasizes on thrift, savings and credit delivery. To focus on its microfinance activity, the organization has sought to streamline its efforts and is now executing all microfinance programmes through its newly acquired NBFC, Annapurna Microfinance Pvt Ltd. Opportunity International through their Indian subsidiary “Dia Vikas” has invested in this NBFC. Challenge Mission Annapurna, since its inception, has worked with the community and helped local indigenous trade, services and manufacturing units by financing them. It has always preferred to work in a cluster development model. But the community, though having adequate access to financing through the microfinance programme, often lacks competitive advantage against large competitors. Most of them currently get less revenue out of their business due to lack of access to market and involvement of too many middlemen in the value chain. Since Mission Annapurna as a strategy had targeted the clusters which have potential, it is facing difficulty in scaling up these clusters because of lower level of fund requirement by the cluster. The team of volunteers will help in the conceptualization and formation of producer’s co-operatives, which will give these clusters the benefit of economies of scale by operating in a large scale. This will also help the industry in creating more products and services through standardization and unity. Project Description and Objectives The volunteer project includes analyzing the clusters and conceptualizing the viability of producer’s co-operatives by doing an in-depth study of the value chain and preparing roadmaps for forming them. The basic objective is to study the viability of such co-operatives and define their operation. Volunteer Deliverables and Timeline The volunteer(s) are expected to spend 2-3 weeks in Bhubaneshwar (and possibly rural branches of Orissa and Chattisgarh) to: ? Visit the clusters and evaluate their present status; ? Study and evaluate the local value chain(s) involving pulses and maize and identify areas of intervention to increase efficiency, lower costs and increase revenue, by forming producer’s cooperatives. The volunteers are expected to perform the following activities: ? Research and propose tie-ups with various agencies performing different roles in the supply chain leveraging economy of scale; ? Recommend interventions at various levels in the supply chain, from production to marketing to improve efficiency. Interventions could include creating awareness and educating members on cooperation principles, researching and recommending better quality agricultural inputs and improved farming techniques, advising on economically viable logistical models and proposing direct tie ups with buyers lowering costs and enhancing revenues; ? Estimate the costs by forming producer’s co-operatives. Costs include but are not limited to: o Raw material and agricultural input costs, o Warehouse, processing and transportation costs, o Fixed costs such as administrative and managerial labour costs, contingency fees, insurance, depreciation, interest on long-term debt and miscellaneous expenses to establish the cooperative, o Any capital outlays such as building and improvements, and equipment needed to harvest, process, and handle maize and pulses, o Repair and maintenance costs, and o Other operating costs such as crates and other equipment. ? Analyze expected revenue by investigating existing markets and recommending potential markets; ? Perform Net Profitability/Loss Analysis; and ? If the recommendation is to proceed with forming producer’s cooperatives, the volunteer(s) must further determine the organizational structure and operating principles for the proposed cooperative. The volunteers are expected to submit a detailed report covering the above points at the end of the project period. Volunteer Requirements People’s Forum seeks a team of 2 volunteers with knowledge of community-based organizations and business planning. Previous experience in agricultural value chain research or analysis in Asia is preferred. Knowledge of English is required; knowledge of Hindi would be an added advantage. The volunteer(s) are expected to spend 2-3 weeks in Bhubaneshwar (and possibly rural branches of Orissa and Chattisgarh) in India. Project Duration and Location Ideally, the project duration will be from April 2011-June 2011, but could be flexible depending upon the availability of a qualified volunteer. The work will involve travel to Bhubaneswar (and possibly rural branches of Orissa and Chhattisgarh) for 2-3 weeks to analyze the current pulses and maize value chains, after which the project can be conducted remotely. Expected Results/Impact The project will ascertain if forming producer’s co-operatives is an economically viable strategy. It will recommend supply chain interventions which will result in increased revenue and lower cost for People’s Forum clients.