Bolstering the efforts of farmer producer organisations is a project supported by Walmart Foundation and implemented by S M Sehgal Foundation in Karnataka and Uttar Pradesh. The project builds the technical capabilities of FPOs, including women farmer members, by demonstrating sustainable agricultural and soil health management practices. The goals are to reduce input costs, increase yield and improve crop quality, while promoting climate resilience for small and marginal farmers
In 2023, the project selected the defunct Sangam Samridhi FPO (farmer producer organisation) of Bhelkha in Prayagraj, Uttar Pradesh, for development. Sangam Samridhi FPO has 1,000 farmers, of whom 300 are women. After selection, the FPO chose to embark on a transformative journey to address the pressing issue of inconsistent and expensive access to high-quality cattle feed by setting up a mini-mill for animal feed. Since animal husbandry has a crucial place in the lives and livelihood of farmers, the project team provided essential technical expertise, guidance, and financial support to the FPO.
The mill was established in a warehouse far from Village Bhelkha on leased land rented by the Sangam Samridhi FPO, which contributed 10 per cent of the set-up cost of the mill, and the balance paid by the project. Machinery for the mill was procured after market research of technologies and suppliers; pricing of the animal feed was decided after a financial analysis; and local sources were determined to obtain the raw materials such as wheat, rice bran, mustard cake, salt, etc. Specialised capacity building of the FPO members empowered them with the skills required to maintain the machinery, ensure adherence to best practices and quality standards, and independently manage the mill’s operations.
The cost to produce one quintal (100 kg) of animal feed is Rs 2,449. The selling price was decided to be Rs2,500, which left the Sangam Samridhi FPO with a profit of Rs 51. The slightly higher cost of the animal feed in comparison to the market price was justified by the superior quality of the FPO-produced feed, which positively impacts livestock health and productivity. Currently, Sangam Samridhi produces the cattle feed on a pre‑order basis and, so far, the total production has been 10 quintals (1,000 kg) – a total sale of Rs 25,000.
The project team remained actively involved in monitoring the progress of the mill. Regular evaluations assessed the impact of the animal feed on the quantity and quality of the milk produced and its economic outcomes for the users. This continuous evaluation allowed for timely adjustments and improvements like training ensuring the initiative’s success. A challenge faced by the Sangam Samridhi FPO members was in marketing the animal feed. This was facilitated by the project team by building their capacities on feed branding and promotion. The cattle feed is now marketed with the name of Sangam Samridhi Santulit Pashu Aahar,and marketing connections are forged with other FPOs and individual farmers.
The establishment of the mini-feed mill is a testament to the careful deliberation and strategic planning undertaken by the FPO and guided by market research and stakeholder consultations. From the meticulous selection of technology and suppliers, to the seamless integration with existing infrastructure, every step was executed with precision and foresight. The procurement of locally sourced raw materials and the efficient operations of the feed mill demonstrate the FPO’s dedication to delivering quality animal feed at competitive prices and its commitment to serving the needs of its members and the local agricultural community.
Their success lies not just in profit margins but in the positive impact they create. The profit of INR 51 per quintal is intended for reinvestment into initiatives that enhance the livelihoods of farmers, through further improvements in infrastructure, training programmes, or purchasing raw materials based on need. This success story highlights the FPO’s ability to adapt and thrive in a competitive market and serves as an inspiring example of collective action and empowerment in rural development.
(Courtesy: smsfoundation.org)
from Webdoux