Farmer Producer Companies (FPCs) play a pivotal role in aggregating shareholder demand and products. However, they face significant challenges, such as poor quality of produce, unplanned growth of producer institutions, limited access to enterprise financing, and inadequate support through agencies. These issues have impacted the overall reputation of FPCs, making it difficult for them to maintain strong buyer relations and ensure higher returns for farmers.
As a result, the confidence of FPC shareholders in these institutions has diminished, leading to reduced engagement. Smallholder farmers often find themselves indebted to traders and are compelled to sell their produce at unfavourable margins. In addition, they employ less-than-optimal production techniques, which further impacts their cost of production.
About CLV
Catalyst Livelihood Ventures (CLV) Farm is an agri-marketing initiative that works with smallholder farmers to improve produce quality and procure their commodities, facilitated by the FPC. CLV sells these commodities to large buyers and brands at a premium generated through value-added activities, ensuring the farmers receive fair compensation for their risk and effort while generating adequate profits for CMS.
CLV's objectives
Double the net income of small and marginal farmers in five years through cost reductions in cultivation, consolidated sourcing of seeds and bio inputs, and driving efficiencies of scale and value creation through processed products.
Increase the number of small and marginal farmers transacting through the FPCs from 25% to 65% over 5–6 years.
Increase the share of the consumer pie reaching small farmers.
CLV offers a comprehensive package of services, including market channel access, capital availability, and capacity building for FPCs. The goal is to enable FPCs to handle higher business volumes and progress through the value chain, resulting in higher premiums for their produce.