Upload
ccafs-cgiar-program-climate-change-agriculture-and-food-security
View
600
Download
0
Embed Size (px)
Citation preview
CCAFS flagship Project P53-FP1-SA-CIMMYT “Recommendation domains, incentives and institutions for equitable local adaptation planning at sub-national level and scaling up climate smart agricultural practices in wheat and maize systems”
Annemarie Groot & Jaclyn Rooker (Wageningen UR)
Exploring opportunities to scale out CSA in CSV through innovative business models
Contributions from CIMMYT, BISA ....
• Parvinder Singh
• Harminder Singh Sidhu
• Jeetendra P. Aryal
• M.L. Jat
• others
Members of cooperative Noorpur Bet
Outline
• Starting points and approach to business case development for scaling CSA
• Example: exploring business opportunities for cooperative in Noorpur Bet (Punjab)
• Issues for discussion
Our starting points for business cases development
• Focus on cooperatives to accelerate 1) out- scaling of CSA and 2) climate smart agro business development
• Innovation platforms at CSV level and beyond (Public–Private sector partnership) in leading position
4
Innovation platform: ‘new’ institutional
framework driving innovation
Business case development: different types of product market supply chains
Business case development: supply – demand
Our aim:
• Bringing ‘technology/ capability’ push and ‘opportunity pull’ together
• Who demands what?
6
Methodology for business case development
IDENTIFICATION
• WHO : Champion farmers, scientists, visionary knowledge carriers, designers
• Criteria : climate smartness, verifiable interest amongst stakeholders
DEFINING CASES
• WHO : Champion farms, opinion leaders, financial experts, scientists, engineers
• Criteria : Feasibility, market, investment, risk, yield, revenues
CONCRETE CASES
• WHO : Politicians, policy makers, financial experts, banks (power to realise), farmers/coop.
• Criteria : Value proposition, communication strategy, investment plan
PILOTING BUSINESS
CASES
• WHO : farmers in CSVs, Cooperatives
• Criteria : climate smart benefits, societal costs/benefits/ effectiveness, incentives and barriers
SCALING
• WHO : Meta level innovation platform
• Criteria : climate smart benefits, societal costs/benefits, effectiveness, incentives, barriers, risks
Criteria for defining pot. business cases
Moderate
Positive
Negative/
problematic
Innovation platform
In different phases different stakeholders
Example: Business case development - cooperative Noorpur Bet (Punjab)
• Cooperative since 1957 (745 members), good reputation
• Current provision of services as business case
• Interest in exploring new business opportunities through creation of added value products / new products
• Interest in taking part in Innovation platform and linking up with private sector
Income risk factors - challenges
• Depletion of ground water (1 ft per year)
• Declining soil fertily
• Climate variability – unpredictable weather
• Reduction in quality of product (breaking of rice)
• Crop losses due to temperature spikes and diseases
• Poor connection to the market (purchase of produce)
• High labour costs due to manual processes (e.g. transplanting of rice)
• Lack of knowledge in pesticide use
Nature
Yield
Input
Current CSA business case in place
• Products - services: LLL, Turbo Happy Seeder, tractor, loans, diesel...
• Customers: members and non–members,
• Value for customers
- Saving water with 30% (less irrigation time)
- Reduction in use of diesel (300-400 l / ha/year for the LLL)
- Increase in yield (125-200 kg/acre)
- increase in drought tolerance
- Less labour
- Timely service
- More precise application of fertilizers
- Net financial benefits almost doubled (THS)
• Costs: THS: cost- price125.000 Rs ; LLL: 125.000 Rs, tractor 60.000Rs; economic life....
• Revenues: Profitable.......
THS : window of 15 days
LLL: window of 30-45 days / once in 3- 4 years
• Key partners: research institutes (CIMMYT, BISA), PAU, Dept. of Agr.
extension workers, department of agriculture, LLL industry, THS industry..
• Key resources: government subsidies for LLL, THS .. and electricity
Scaling up business model: profit for government
o Reduction in energy use
o Reduction in air pollution – GHG emissions
o Reduction in water use
o Increase yield
o Increased climate resilience (more drought tolerant..
o Better insight into subsidy and support strategies (market distortion by subsidy in electricity.
For LLL if electric tariff equivalent to average costs of its supply then reduction in energy use will lead to higher fin. benefit
Future outlook: value chain perspective
LLL
diesel
HTS
Tractor
Loans
Others
Members
Non-
members
Cooperative
Noorpur Bet
Service provision Customers
Baby corn
Maize flour
Tomatos
Others
New and added value
products New
customers
Field
fresh
Chicken
industry
Field
fresh
Cooperative as accelerator of climate smart businesses
Farmers -
members
Help wanted - role of CCAFS?
• Identify low risk and climate smart business ideas
• Establish innovation platform
Next steps: low risk business ideas for business development (Noorpur Bet cooperative)
Idea Suggested by
Access to seeds Various farmers
Agroforestry Present in Punjab
Baby corn Fieldfesh
Banana Fieldfresh Direct Seeded Rice CIMMYT/CGIAR, Borlaug institute
Fodder production out of residue Fieldfresh
Grape Fieldfresh
Green Seeker CIMMYT
Laser land leveller machines CIMMYT
Maize – connecting to the poultry industry
Mechanical transplanter for rice Taraori village
Microfinancing schemes Noorpur Bet cooperative
Mill Noorpur Bet cooperative
Model for less harmful pesticides Various stakeholders
Organic farming Farmer in Noorpur Bet
Pomegranate Fieldfresh
Price security for produce
Rice cellar Noorpur Bet cooperative
Solar power for irrigation CIMMYT/Borlaug Institute
Subsurface drip irrigation CIMMYT/Borlaug Institute
Sweet corn Parvinder
Tomato farming Fieldfresh
Training of farmers (integrated pest management, soil health etc.) Institutes and Department of Agriculture
Turbo Seeder business development Dr. Hanuman Karnal
Value addition wast/side products Fieldfresh
Weather information systems Already present in Anjanthali
Zero tillage machines CIMMYT
Establishing innovation platform
• Farmers Noorpur Bet cooperative
• Field fresh Foods Private Limited
• CIPHET
• Ludhina Central Cooperative bank
• ICAR
• CIMMYT
• Society for Conservation of Natural Resources & Empowering Rural Youth
• Other investors...
• Poultry Feed Plant
• Others
Issues for discussion
• Should CCAFS focus more on cooperatives to out-scale CSA practices and accelerate climate smart businesses?
• Establishing - facilitation of innovation platforms: is there a role for CCAFS?
• Should we identify a basic set of criteria for assessing climate smartness of business ideas – business cases?
Production
process –
resource use
Market
Customers –
Consumers of
chicken meat
Product
Maize flour
Climate smart Climate smart?
Questions
Answers &