Farmer Producer Companies (FPCs) play a pivotal role in aggregating shareholder demand and products. However, the FPCs 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. Additionally, smallholder farmers often find themselves indebted to traders and are compelled to sell their produce at unfavourable margins. Moreover, they employ less-than-optimal production techniques, which further impacts their cost of production.
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.
Following are the CLV 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