Top 10 Formula to Run Successful FPO & FPC (Farmer Producer Company).
'किसान कंपनी' फायदे में कैसे चलाये ? How to Run Profitable FPO & FPC (Farmer Producer Company).
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It is one type of PO where the members are farmers. Small Farmers’ Agribusiness Consortium (SFAC) is providing support for the promotion of FPOs. PO is a generic name for an organization of producers of any produce, e.g., agricultural, non-farm products, artisan products, etc.
What are the important activities of a FPO?
The primary producers have skill and expertise in producing. However, they generally need
support for marketing of what they produce. The PO will basically bridge this gap. The PO will
take over the responsibility of any one or more activities in the value chain of the produce
right from procurement of raw material to delivery of the final product at the ultimate
consumers’ doorstep. In brief, the PO could undertake the following activities:
a. Procurement of inputs
b. Disseminating market information
c. Dissemination of technology and innovations
d. Facilitating finance for inputs
e. Aggregation and storage of produce
f. Primary processing like drying, cleaning and grading
g. Brand building, Packaging, Labeling and Standardization
h. Quality control
i. Marketing to institutional buyers
j. Participation in commodity exchanges
1 What is the concept of value chain development?
Value chain comprises all the activities at different yet interlinked stages that add value to a
particular product through the different phases of production, including procurement of raw
materials and other inputs. Usually, there are many actors along the value chain for
producing, transforming/processing and bringing goods and services to end-consumers
through a series of sequential activities. When the produce originates from agriculture, we
call it an agricultural value chain.
7.4 What is a business plan?
Business plan is a succinct document that specifies the components of a strategy with regard
to the business mission, external and internal environments and problems identified in earlier
analysis. A business plan is not written each time a modification to a strategy is made. It
should be written when a new venture is developed or a major new initiative is launched.
Sincere contemplation is needed about the business concept, the business opportunity, the
competitive landscape, the essential elements for success, and the people who will be
involved. The exercise will often lead to more questions, and these new questions must be
properly researched to gain deep insight into the issues and challenges that lie ahead. In short,
the business plan must contain answers to the questions
“Who/What/Where/When/Why/How/How Much”.
7.5 What is business planning?
The business planning process starts with Generation of Business Ideas, followed by
Opportunities & Threats Analysis leading to Identification of suitable Business Opportunities.
Once Business Opportunity is identified, a Marketing Plan is prepared. The final part of the
process deals with the Financial Plan.
Business Ideas Generation
Short-listing Business Ideas
Opportunities/Threats Analysis
Business Opportunities Identification
& Selection
Market Plan
Financial Plan
7.6 Why should a PO prepare a business plan?
Every business irrespective of size needs planning. Business planning is essential for growth
and sustainability. It provides broad ideas to meet the expected and unexpected
opportunities and obstacles the future holds. In case of a PO, it is all the more essential since
most of the members will be acting as businessmen for the first time. A business plan helps
the PO in the following ways:
a. It helps in examining viability of the venture in a particular market.
b. It provides guidance to the PO for organising and planning activities.
c. It serves as an important tool in accessing finance/funding. If the financier is
comfortable with the business plan, the PO will be asked to prepare a Detailed
Project Report (DPR).
7.7 What are the elements of a business plan?
The business plan provides broad parameters for achieving the goals of the PO. A typical
business plan will contain the following:
a. Executive summary
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b. Business Description
c. Industry/Sector analysis
d. Marketing plan
e. Operations plan
f. Financial plan
7.8 What is included in an executive summary?
The executive summary is an abstract containing the important points of the business plan. The executive
summary should describe the following:
a. The industry and market environment in which the opportunity will develop and
flourish
b. The special and unique business opportunity-the problem the product or service will
be solving
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