PRESENTATION ON

“Farmers Perception Towards The Contract Farming of Okra In Maharashtra at Kay Bee Exports.”

SpeakerKomal C.Gonjari.

3rd Sem (2070512007)AABMI

NAU,Navsari

Major AdvisorDr. Ruchira ShuklaAssociate Professor

AABMINAU, Navsari

Flow of Presentation

Company Profile

Product Profile

Project

Purpose and Scope of the Study

Research Methodology

Data Analysis And Interpretation

Findings

Managerial Implications

Conclusion

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Company Profile

3

• KAY BEE EXPORTS is located at Navi Mumbai in the state of

Maharashtra. Mr. Prakash Khakhar is the CEO of the organization under whose

headship they have been scaling new heights in the business of Fresh Fruits &

Fresh Vegetables.

• Kay Bee Exports is a leading company, exporting vegetables such as okra,

chilli, Baby corn, Bottlegurd as well as fruits like pomegranate and mango to

the European market

Company Profile

4

• KAY BEE EXPORTS is located at Navi Mumbai in the state of

Maharashtra. Mr. Prakash Khakhar is the CEO of the organization under whose

headship they have been scaling new heights in the business of Fresh Fruits &

Fresh Vegetables.

• Kay Bee Exports is one of India’s leading integrated fruit and vegetable exporters

with annual revenues exceeding US$ 15 million. They have won five consecutive

export awards.

Company Profile

5

6

• Kay Bee specializes in Indian pomegranates, mangoes and vegetables like

okra, baby corn and chilli peppers. The company air-freight fruit and

vegetables from India to Europe with exports of more than 5000 tonnes per

annum.

• The aim was to develop and implement effective production solutions to

improve the yield and quality of okra, manage residue levels, and create a

win-win situation for all the partners involved by implementing good

agricultural practices

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• Own farming operations, tightly integrated contract farming production, fleet of 22

vehicles, own freight forwarding and customs clearance operations and a

distribution company in UK has helped Kay Bee bring in a lot of sustainability and

effective quality control in its operations.

• Kay Bee group owns farms in Maharashtra, Gujarat and Madhya Pradesh.

Extensive R&D is done on these farms and ‘Ideal Farm’ scenarios are created and

trials are conducted using advanced technology.

• Newer crop varieties are tried and tested. Kay Bee also encourages the use of Bio

Pesticides and has a facility for making bio pesticides for their farms and contract

farms.

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• The vertical integration is Kay Bees biggest USP and gives Kay Bee an edge over

it’s competitors. This also ensures and assures its customers of quality fresh produce

each and every time.

• The Food Chain Partnership agreement between Bayer Crop Science and Kay

Bee was signed the 2009.

• Food Chain Partnership principles it was agreed to support farmers by offering and

guiding them with seed-to harvest solutions.

• Bayer Crop Science supported Kay Bee Exports in developing the plant protection

programme.

• The Bayer Crop Science team provided technical support to Kay Bee farmers with

Bayer Crop Science experts regularly visiting the Kay Bee farmers to monitor and

guide them through the pest and disease management programme.

Seeds/Seedlings

Pesticides

Sprayer’s

Technical guidance

Packaging material

Transportation

Visits

Training

Inputs & Services provided by company to the farmers

Figure:- Kay Bee’s contract farming model

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Product Profile

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Kay Bee Exports around 2000 tons of pomegranates in a year and is a market leader in terms of both quantity and quality. Availability:Throughout the year.

Exports to -Europe, USA, New Zealand and Australia. Varieties-Alphonso, Kesar, Badami, Rajapuri, Lalbagh. Kay Bee mangoes are famous for its taste of freshness and prolonged shelf life. Availability:From March till end of July

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Exports to- chilies to UK, Hong Kong, Sweden and Lisbon. Supply Red chilies, Pecador chilly, Bhavnagari chilly,, Bullet chilly, Finger Chilly and Bird Eye Chilly varieties.

Availability:Throughout the year.

Globally, retailers import Okra from India of which major chunk comes from Kay Bee Exports.Availability:Throughout the year

PROJECT

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Project Title“Farmers Perception Towards The Contract Farming of Okra In Maharashtra at Kay Bee Exports.”

Objective:1. To study the Socio- Economic profile of the contract Farmers.

2. To assess the perception and satisfaction of contract farmers towards the

Company.

3. To identify the important factors influencing the adoption of contract

farming

4. To suggest strategies for expanding and strengthening the farmer base

for contract farming.

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This study analyzes the various factors which are considered by farmers

while doing contract farming with kay bee exports. The main objective is to

assess the perception and satisfaction of contract farmers towards the Kay

Bee Exports Company in Satara, Pune & Solapur district in Maharashtra.

The data collected has been subjected to analysis and interpretation on

the basis of objectives and managerial implication have been given at the

end, which will help the company to improve their strategies for contract

farmers, It also helps in identify the problems of the contract farmers. The

study makes some suggestions for improvement in their contract farming

strategies.

Purpose and Scope of the Study

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Research Methodology

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• Nature and sources of data:

In order to evaluate the objectives of the study, data was collected from both primary and secondary sources.

1. Primary data:

The primary data was collected using a pre-structured questionnaire including a number of variables/parameters.

2. Secondary data:

The secondary data required were collected through various sources like company website, magazines, internet sources, company leaflet and other sources. 

• Method of Data Collection: - Personal Interview method.• Research Instrument: • Questionnaire: The questions were framed in simple & local language with

orderly arrangement

Research Methodology

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• Location of Study:

The Satara,Solapur,Pune district of Maharashtra was taken up for the study. In the district, a large area is under cultivation of Okra. Out of which major contract farmer of Kay Bee Exports which is located in this area.

 

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Area of Survey:

A. Satara District : Phaltan Taluka

B. Solapur District : Malshiras Taluka

C. Pune District : Baramati Taluka

Sampling design:

Purposive sampling method was adopted as sampling procedure for the

study.

Selection of Farmer:

A total of 100 farmers were selected from 3 District namely by Satara, Pune &

Solapur of Maharashtra state.

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Sample Size:

• Farmer: 100

District Taluka Villages Farmers

Satara Phaltan Sakharwadi,Phaltan 70

Solapur Malshiras Karunde 15

Pune Baramati Sangavi 15

Total - - 100

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Data Analysis And

Interpretation

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Satara Solapur Pune

percentage 70 15 15

5

15

25

35

45

55

65

75

Sample distribution (n=100)

Objective 1:To study the Socio- Economic profile of the contract Farmers.

Fig No: 1 District wise composition of sample

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Fig No: 2 Education Status of contract farmers

illeterate secondary level (10)

higher sec-ondary(12)

diploma graduate post graduate

% 5 44 17 5 24 5

2.5

7.5

12.5

17.5

22.5

27.5

32.5

37.5

42.5

47.5

Education Status of Respondent

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Marginal (Below 1

hec.)

Small (1-2 hec.)

Medium (2-5 hec.)

Large (Above 5

hec.)

Percent-age

0.16 0.55 0.21 0.08

5%

15%

25%

35%

45%

55%

Total land holding of farmers(n=100)

Axis Title

Fig No:3 Total Land holding of Farmers:

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No.of years which farmers working with Kay Bee(n=100)

1

2

3

4

5

Fig No:4 Years of association with Kay Bee Exports

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Fig No:5Area under okra cultivation last year.

0-0 0.25-0.5 0.5-1 1 to 2 2 to 3

percentage 15 44 31 9 1

5

15

25

35

45

Cultivated area last year(n=100)

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0.5-1 1 to 2 2 to 3

Series1 76 24 0

5

15

25

35

45

55

65

75

Cultivate area in current year(n=100)

Axis Title

Fig No:6 Area under Okra cultivation In Current Year among contract farmers.

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shakti minakshi mahico sayba

percentage 16 35 20 29

2.5

7.5

12.5

17.5

22.5

27.5

32.5

37.5

Cultivated variety(n=100)

percentage

Fig No:7 Okra Variety Preferred By Farmers for Cultivation

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Mulching g-fab net micro irrrigation none of these

percentage 0 0 31 69

5

15

25

35

45

55

65

75

Advance technology Used

Fig No:8 Advance Technology used by the farmers for farming.

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drip sprinkler flood

percentage 29 2 69

515253545556575

Irrigation Type(n=100)

Fig No:9 Irrigation type used for farming.

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66%2%

13%

19%

Sources of Irrigation

well tube-well canal lift

Fig No:10 Sources of irrigation

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Objective no:2 To assess the perception and satisfaction of contract farmers towards the Company.

94%

6%

Satisfication towards pest and disiase management (n=100)

yes no

Fig No.11 Satisfaction towards the Pest and Diseases management:

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94%

6%

Sprayers Service(n-100)

yesno

Fig No:12 Farmers Satisfaction Towards the sprayer’s service

provided by company.

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 Fig No.13 Farmers Satisfaction towards the Contract farming with Company.

Yes No

Percentage 100 0

10

30

50

70

90

110

Satisfied with Contract Farming(n=100)

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Yes No0

20

40

60

80

100

120

Like to continue Contract Farming(n=100)

Fig No:14 No. of farmers would like to continue contract

farming with Kay Bee Exports.

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Cash Cheque Bank transfer

Percentage 0 11 89

5

25

45

65

85

Payment Mode of Company (n=100)

Fig No.15 Payment mode used by the company.

Objective no: 3To Identify The Important Factors Influencing The Adoption of Contract Farming.

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Training And Extention

Input Provided

Fixed price

Transportation facilities

Regular Payment

Good Production

0 20 40 60 80 100 120

65

84

100

94

77

78

35

16

0

6

23

22

Factors Influencing for doing Contract Farming with Kay Bee (n=100)

YesNo

No.of respondent

Par

amet

ers

Fig No 16 Factors Influencing Farmers when they doing Contract Farming with Kay Bee.

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Fig No: 17 Most influencing factor on farmers to do contract farming with Kay Bee Exports:

Extention & Training

Input Provided

Fixed price

Transportation facilities

Regular payment

Good production

0 5 10 15 20 25 30 35 40 45 50

2

23

46

5

7

17n=100

No.of respondedts

Inf

luen

cing

Fac

tors

38

39

Figure no:18 Rate the Kay Bee Exports on various parameters

price provided in-puts

transportation facilities

training technical sup-ports

brand image

Series1 216 295 300 106 103 300

25

75

125

175

225

275

325

32 1

1

54

Rate the Kay Bee Exports on various parameters

Findings

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• Majority of 44 % farmers completed their education upto Secondary level.

• Majority i.e. 55 % farmers are small farmers having land holding in range

of 2-5 hector and only few farmers are large farmers i.e. they having land

holding up to more than 5 hectare. Many small farmers are engaged in

contract farming.

• About 33 % of farmers are associated with company from last 5 years and

very few farmers are new from the surveyed sample i.e. only 7 % farmers

are associated with company from one year ago. Farmers are associated

from long period with this company.

• 76% farmers cultivate okra crop under the 0.5-1 acre and remaining 24 %

farmers cultivated okra in 1-2 acre.

Findings

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• It is found that 35%farmer cultivated Minakshi, 20% farmers cultivated

Mahico, 29% farmers cultivated Sayba and 16% farmers cultivate the variety

Shakti given by company.

• Only 31%farmers used the advance technology like micro-irrigation for

farming and remaining 69% farmers were not using any new technology

for farming.

• 69% farmers use flood type for irrigation,29% farmers used drip irrigation

and only few farmers i.e. only 2% farmers used sprinkler for irrigation.

• 94% farmers were satisfied with pest and disease management and also

sprayer’s service provided by company.42

• 100 % farmers are satisfied with doing contract farming with Kay Bee

and also like to continue this contract farming with Kay Bee

Company.

• Majority (46%) farmers influenced by the factor of fixed price,

23%farmers influenced by input provided for contract farming.

• Kay Bee Exports are rated highest on brand image of company and

transportation facility provided by company from farm. It was rated

lowest on training and technical Support.

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MANAGERIAL IMPLICATIONS

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1. Farmer want better price for the produce, as the input charges (labour

etc.) have increased. So company needs to renew the prices.

2. Late spraying of pesticides had led to losses due to pest attack as a

result; the company should check timely availability of spraying

facility.

3. Company should also give emphasis on providing information using

SMS facility so as to understand the requirement and problem of

farmer.

MANAGERIAL IMPLICATIONS

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4. Most farmer are small farmer, so for them credit facility should be provided

for purchase of fertilizer and new implements.

5. Company should provide soil testing facility to the farmer.

6. Farmer are getting timely assistance by the Kay Bee but still wants to adopt

hi-tech technologies like polythene mulching and new varieties which can

lead to better production.

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CONCLUSION

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Contract farming, as farmers are getting more aware about it day by day as it has been used for agricultural production for decades but its popularity appears to have been increasing in recent years.

Farmers which are associated with the company are majorly small farmers and they had long relationship with the company since the company has started. Farmers are well satisfied with the services and assistance provided by the company and they are willing to continue with the agreement due to assured market and access to production support like technical support, training and input facility provided by company and reasonable competitive prices given by the company.

As technology advances, company has to keep themselves updated and should educate and communicate the farmers. Company need to focus the farmers problems and should understand it,to maintain mutually satisfying relationship.

 

CONCLUSION

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References

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• Kothari C.(2009) “ Research Methodology:Methods & Techniques”-Second Edition Published By New Age International Pvt.Ltd.

• Internet :• www.Kay Bee Exports.com• www.google.com• http://www.cropscience.bayer.com

http://agriexchange.apeda.gov.in/Market%20Profile/one/OKRA.aspx

• http://agriexchange.apeda.gov.in/• http://www.fruitvegetables.in/• http://mi.agri.net.in

References

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THANK YOU