Type: Blended
PHASE: Pilot
CATEGORY: Agriculture
LOCATION: Mumbai, India
Kisan First
Asia

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Kisan First aims to end poverty for rural farmers by providing them access to capital and management expertise to form JV Processing units with Producer Companies giving them ownership in a high-value activity

Standings & Awards

434 out of 1313 in Asia
46 out of 139 in Agriculture
507 out of 574 in Pilot
595 out of 1066 in Blended
2217 out of 4003 Overall
Greatly increases and stabilises incomes of small farmers thus improving their livelihoods

Overview
Kisan First aims to end poverty for rural farmers by enabling them to have greater ownership within the food value chain. We provide the co-investment capital, operational expertise, and market linkages necessary to form economically sustainable joint venture processing plants with farmer-owned entities such as Producer Companies. By doing so, we will greatly increase and stabilize farmer incomes. Our initial focus is helping tomato farmers in Maharashtra process their tomatoes into peeled tomatoes and linking them to buyers such as the restaurant industry in Mumbai.

Market Demand
Through our research we have found that there is an  unfilled demand for high quality, affordable processed tomatoes in restaurants and hospitality groups. Head chefs and procurement managers groups have expressed common concerns with the affordability and quality of processed tomato products. The lack of these ingredients in the market often forces these restaurants to rely on time-intensive manual processing of raw inputs, whose availability and consistency are irregular or to import at great expense.

Social Impact
Current economic conditions dictate that small farmers operate as small inefficient producers, making them vulnerable to market price risk and low margins. Fresh produce is highly perishable which makes its price in the market highly volatile.

By enabling farmers to own an equity stake in value-added processing, Kisan First helps farmers stabilize and increase their revenue and serves as a catalyst for rural economic development. Our model will have direct and tangible impact on farmers’ income. Through our joint venture model, the farmers will receive a profit share from the processing unit and due to the high quality inputs requiredwe will be able to pay farmers a rate that is premium to the market. Also, the market for processed food is much more stable than that for fresh produce due to the longer shelf life of processed foods. Finally, by building and operating processing plants close to the production source, we will create employment and grow local economies.

Go-to-Market
We will go to market by progressing through a series of product prototyping, followed by demand validation, then operations and logistics pilot, and finally full-scale launch.

We have built key relationships that will enable us to pilot our model with minimal capital expenditure.

FIVE PROJECT QUESTIONS Required (60 - 90 minutes)

1. What is your innovation? 
We are creating a market-driven vehicle through which farmers can move from being inefficient producers in commodity markets to being owners of value-added agribusinesses. To do this, we match the economics of our desired social impact (improving livelihood) with market need (buyers' need for quality/quantity of supply chain). Kisan First brings new approach to the traditional tomato agriculture business process.
2. Who gains the most? 
Small farmers operate as small inefficient producers in a commodity market, making them vulnerable to market price risk and low margins. Through our joint venture model, the farmers receive a profit share from the processing unit and we will be able to pay farmers a rate premium to the market It is estimated that we will impact over 10,000 farmer families and increase revenues driven by tomatoes of over 300% per farmer over 9 year period.
3. Who pays? 
We are a financially sustainable and scalable market based solution to end poverty. For our initial capital requirements, We propose to raise funds from various sources - philanthropic, government subsidies from the ministry of food processing and Ministry of Micro, Small and Medium Enterprises. At a scale phase, we will get customers such as premium restaurants and create the revenue base based on the sales of our product.
4. What is your success? 
We have estimated to reach out to ~1,200 farmers in the next 12 months and an impact of 300% increase in profits for the farmers. This translates to additional annual revenues of ~Rs 6,000 (USD $100) per farmer. Over the next three years, we estimate about 45% of total incomes of farmers from non-farm activities. This shall result in better education, healthcare, sanitation, lifestyles, material living for the farmers and their families.
5. How will you do it? 
Our product is fully developed and has been affirmed by chefs within our target market. We are obtaining licenses for food safety and re-labeling. The next phase is Demand and Operations Validation. From April to July we will service real-time demand, distribution logistics, and operational capacity. During this phase, BAIF is availing the use of their existing mango processing unit to us. This will allow us to operate with minimum upfront capital expense. Our full-scale launch will be in August

Badges & Awards

2013 DSIC Project Participant
Semifinalist - DSIC 2013
Semi-finalist Project 2013

Mentors

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Garima Raman
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