Thursday, February 28, 2013

When you eat, they earn


A mother and her daughter looked weary to harvest vegetables. Even if they did it would take them quite a time to move the vegetables to a road point to be sold to a buyer. But the income from selling those vegetables will help send back the daughter to school.

They live in a small old house typically made of mud and wood. It is under Gaeserling geog in Dagana Dzongkhag. The nearest market is in Dagapela which is 15 kilometers of feeder road away from their place. Hiring taxi is their only means of transportation to get their little goods to the market which will cost them more than they would earn.

The mother is overjoyed and has prepared some wine from the fermented wheat for the buyer as a gratitude. The buyer has come to her house to buy the vegetables from her. She then gets hold of sickle and a bamboo basket for the harvest. The daughter follows suit. She keeps smiling. May be she knew she’s a chance of going back to the school.
The mother and daughter harvesting vegetables

From L-R: The daughter, mother, CEO of FreshVeg and differently-abled uncle
The buyer then adds his helpers into the labour to carry the vegetables to the road point. The mother has called his differently-abled brother to help carry the load. When the vegetables are loaded into the truck the buyer takes out four clean notes of Nu. 500. She makes two grand. She takes a deep sigh and bows down to the buyer for the income.

Such is the story that FreshVeg is making it possible. It is a recently established vegetable marketing and supply chain to promote local vegetables in the country. Their mission is to make every farmers earn from growing vegetables. It’s a business entity founded on social responsibility.

A young promoter is behind this concept of supply chain. Lobzang Dorji, 32, is on the run to uplift our farmers from the poverty through growing vegetables. “I have mortgaged everything to get some finance from Bhutan Development Bank Ltd. to make this dream possible,” he said.

The supply chain works on a contact farming mode. The farmers grow what the buyer wants. The buyer then fulfills the demands of the market. Such system has more certainty than chance.

“It’s a basic principle of demand and supply,” said Khampa, the CEO of the company, “but organized through a supply chain.”

What makes it stronger is the fact that government agencies are supporting the cause. The Department of Agricultural Marketing and Cooperatives (DAMC) has signed a Letter of Agreement with the company underlining all efforts of marketing the local vegetables. The support comes in the form of transportation subsidy, storage facilities, policy intervention, and promotion through media.

The question of what vegetable are grown in our country, where and when are all complied by Horticulture Division under Department of Agriculture which helps the company by sharing the expected production figures of the vegetables in various Dzongkhags.

“Farmers are our main drivers,” explains CEO, “if they grow variety of vegetables then our supply chain is complete since we have the government agencies participating in the chain.”

But where the chain ends? “Obviously it ends with the consumers,” Khampa said.

“If the consumers buy from us, then they are indirectly helping hundreds of farmers earn from growing vegetables,” he added.

However, the perception in the market is that local vegetables are expensive.

“Not anymore!” stated the CEO, carrying the plastic crate full of local tomatoes grown first time in Sershong in Sarpang and shelving for display.

“Price is not an issue if the consumers buy from us. For the first time we’re offering local vegetables at lower price. Even lower than the retail price of the imported vegetables. It’s a good deal!"

FreshVeg provides door-to-door delivery services without charging a penny.

But challenges in supply chain come as a hard blow to the initiative.

“There is no much variety in local vegetables,” lamented the CEO, “and this is the weakest link in our supply chain.”

The lack of variety has affected the whole system of supply chain. Adding salt to injury is the lack of technology for post-harvest handling of vegetables and transporting them through a cold-chain. As a result the business is struggling to penetrate the vegetable market. The few local vegetables do not complete a consumer’s demand. These vegetables collected from various geogs and remote places are going to waste if consumers do not come to rescue. This will repudiate the farmers’ expectation to have an income to get out of destitution.

“But we are working with our stakeholders to address this issue. They must do more to make this initiative a success.

“I suggest turning this whole initiative into a public private partnership (PPP) mode which will guarantee to address all loopholes in the supply chain.

“Then come summer, we will have variety of local vegetables,” said the CEO.

But for now, he has one appeal.

“When you eat, they earn.” Especially the farmers.

4 comments:

  1. Great great!! we can at least curtail our rupee problem!! Great initiative!! appreciated!!

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    1. Thanks Sangay for your believe in our efforts. Cheers!

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  2. Bravo! This is indeed a brave start where u have to really compete with imported and cheaper vegetables. This initiation benefits three circles, farmers, u as a mediator and consumer. Though apparently consumers are the biggest burden carrier! And wish u all the luck and may ur business succeed!

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    1. Thank u truly for ur remarks. We're trying hard to make this venture succeed. Please buy vegetables from our outlet located near Thimphu vegetable market near the bridge. Thanks a lot. Support the cause.

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