Hystra’s Smallholder Farmers and Business Report 2015
Hystra’s Smallholder Farmers and Business Report 2015 has been published recently. From the world over only 15 companies have been shortlisted and covered in this report, Jain Irrigation Systems Ltd. is One among them.
This ground-breaking Smallholder Farmers and Business Report shows how pioneer companies and organizations have sustainably increased the income and livelihoods of millions of smallholder farmers around the world, by sourcing produce from them or selling products to them.
By rigorously comparing the performance of 15 successful organizations worldwide, the study pins down some 13 deep, if not counter-intuitive insights on creating more wealth along the value chain, running cost-efficient operations and sharing value back with farmers sustainably.
For instance, contrary to the belief that only larger farms can be attractive business partners, the study demonstrates that some companies manage to increase their margins significantly when they start working with smaller farmers, along with diversifying their supply sources – a long-term competitive advantage.
Another chapter highlights how investing into farmers’ productivity, notably by transferring new technologies, can result in farmers’ doubling their net incomes in a year. Such investments may therefore be way more powerful than interventions that seek to redistribute wealth along the value chain (e.g. by removing middle men or providing higher prices to farmers).
The study also explains why farmers show so little interest in buying insurances against adverse events, even though they are often coined as ‘extremely risk averse’. And it gives insights on how to ensure farmers get insured nevertheless.
Lastly, the report details how to better execute smallholder farmers’ programs at lower costs. It closes by questioning the ability of cooperatives to bring more and better financial benefits to farmers