1

UnderstandingBarriersfacedbyFruits/VegetableFarmerstojointheExportValueChain

InSriLanka

AComparativeAssessmentofExportPotentialFarmersinNorthandSouth

SuthaharanPerampalamSamaliPerera

Nov-18

2

ProjectBackground•  LIRNEasia in association with Neelan Tiruchelvam Trust (NTT), conducting a research program to

promotes participatory knowledge sharing processes and social integration among fruit & vegetablefarmerswhowillingtoconnecttoexportvaluechainsintheNorthandSouth.

•  Theproposedresearchprogramwillaim,

•  TocreateengagementandknowledgetransfersbetweenfarmersoftheNorth&South•  BuildcapacityandenablefarmersintheNorthtobuildrelationshipswithsourcingpartnersinSouth•  Promotereconciliationthroughuseofvideosoforalhistoriesofpasteconomicrelationshipsandtheirruptureduringtheconflict.

•  As part of research program, a baseline study was conducted to understand issues faced by variousstakeholdersattachedtothefruitsandvegetableexportvaluechain.Indepthdiscussionswereconductedwith farmers, exporters, middlemen and various opinion leaders to map the obstacles to overcome toincreasetheexportpotentialofFruitsandvegetables.

•  Findingof thisbaseline assessmentwill helpLIRNEasia to intervenewith specific capacitydevelopmentprogramtargetingfarmerswithinidentifiedregionandrequiredpolicylevelsuggestionssubsequently.

•  ThisreportbyLIRNEasiahighlights,findingsofbaselinestudywhichwasconductedduringthemonthofJuly–Sep2018.

3

Importanceofthestudy•  Limitedliteratureonexportagriculture,particularlyfruitsandvegetables

•  Lackssufficientquantitativestudiesinthisarea•  DepthInterviewsProfJayasekara(WayambaUniversity)•  EDB-Annualplan

•  SectorchangesrapidlyàNeedfortimelyinsights

•  Focusesonspecificinformationgaps•  Holisticapproachonbarrierstoenterexportmarketforfruitsand

vegetablefarmersàPolicyimplication•  FocusesonidentifyingskillsshortageàSoftskills,knowledgeofbest

practices•  Evidencebasedapproachfor“Intervention”àdecidesuitabletraining

program

4

ResearchObjective

•  Tounderstandperceptionandattitudeoffarmerswhoarewillingtojoinexportvaluechainoffruitsandvegetables

•  Reasonsforpreferringexportorientedproduction•  Reasonsfornotsellingtoexportmarketyet•  Internalandexternalbarrierforexportoriented

production•  Understandingofcurrentskillsandskillsshortage

•  TounderstandtheenablingfactorstogrowfruitandvegetableexportsfromSriLanka.

5

ResearchMethodologyàDepthdiscussionsandquantitativesurveyconducted

In-depthDiscussion

QuantitativeSurvey

DepthinterviewswereconductedamongvariousstakeholdersattachedtotheExportValueChainofFruitsandVegetables

•  Farmers•  Exporters•  Academics•  OpinionLeaders

SurveywasconductedamongExportpotentialfarmersinfollowingdistricts

•  Jaffna•  Gampaha•  Kurunagala

Totalof165fruitsandvegetablefarmerswereinterviewedandtheiropinionsrecorded

6

Fieldworkinthreedistricts

7

EstablishingthesampleframeàNorecordsoffarmerswithexportpotential

TotalPopulationofVegetableandfruitsfarmers

FarmerswithExportpotential

Farmers

alreadysellingtoexporters

Farmerssoldtoexportersbutnotanymore

DatabaseofExportersareavailablewith•  G.A.Pofficers•  ExportDevelopmentboard(thosewhoarealreadyengaged)àOnly4-7farmerswithinNorthernregion

Databaseoffarmerswithexportpotentialisnotavailable/cannotbeaccessed

•  ExtensionofficersneedtoidentifyfarmerswithexportpotentialandpassittoG.A.PofficersàAccordingtofarmersthissystemisnotworkingeffectivelyatgroundlevel

•  Therearen’tanyrecordsoffarmerswithexportpotentialunlessG.A.Pofficersidentifyandtapthefarmersorifthefarmersthemselvesapproachtherelevantparties.

8

SnowballingapproachadoptedwithSelectioncriteriaFruitsandvegetablefarmerswillingtojointheexportvaluechainwasselectedbasedonfollowingcriteria,

•  Producefruitsandvegetablesinatleast1acrelands

•  Have2ormoreemployeesworkingforthem

•  Wouldliketoselltheirproductstoexportmarket

•  HaveeducationalattainmentsaboveO/L

•  Agricultureismainsourceofincome

•  WillingtoproducefruitsandvegetablewithExportintention

99

Findings

10

Spoketo165farmersin3districtsàMalepredominantlyleadasthefemalesplaysupportingroles

•  Totalof165FruitsandVegetablefarmersInterviewed

•  AllinterviewedrespondentswereownersàNomanagers Kurunagala

Districts(39)

GampahaDistricts(50)

JaffnaDistricts(74)

NumberofInterviews

KurunegalaandGampaharesultsarepresentedtogether,andcomparedwithJaffnadistrict

GenderBreakup

93%

7%MaleFemale

Gam/Kurunegala Jaffna

Male 91% 96%

Female 9% 4%

TotalBase: 89 74

GenderBreakupbyDistrict

11

OldergenerationinvolvedinAgricultureinJaffna,asthenextgen.hasmigratedandmovedaway.

AgeDistribution Gam/Kurunagala Jaffna20-30years 10% 13%

31-40years 29% 13%

41-50years 17% 28%

51-60years 25% 22%

61yearsorabove 19% 24%

TotalBase: 89 74

50Years46Years

AgeoftheFarmers

AverageageoftheFarmers

12

22

Gam/Kuru Jaffna

NumberofYearInvolvedinBusiness

Gampaha/Kurunagala Jaffna

12

Moreemployees(PermanentandSeasonal)involvedinJaffna-basedfarmingàCheaplabour/CulturalInfluences

NumberofPermanentEmployees

G/KDistricts

JaffnaDistrict

2-3Employees 52% 60%4-5Employees 45% 29%Morethan5 3% 11%

AverageNumber 2.95 3.78

AverageFamilyworkers 1.05 1.35

Base: 89 74

NumberofSeasonalEmployees

G/KDistricts

JaffnaDistrict

1-3Employees 96% 8%4-5Employees 3% 10%Morethan5 3% 82%AverageNumber 2-3People5–10people

Base: 89 74

13

IncomeSources Gamphaha/KurunagalaDistricts

JaffnaDistrict

Fromprimaryincomesource(AgricultureFruits&Vegetable) 34,200(n=87) 45,300(n=73)

Fromprimaryincomesource(Paddyorothercrops) 9,000(n=10) -

Fromotherincomesources(Employment/worketc.) 15,750(n=18) 8000(n=2)

Pensionpayment 17500(n=4) -

FarmersinNorthsolelydependonagricultureincome,butKurunegala/Gampahaclaimsothersourcesofincomeaswell

14

53%40%

7%

Fruits VegetableBoth(Fruits&Vegetables)

CropsCultivated(Kurunagala+Gampaha)

CropsCultivatedinJaffna

37%

50%

13%

0%10%20%30%40%50%60%

Fruits Vegetable Both(Fruits&Vegetables)

Gam/Kurunagala JaffnaFruits

Banana 36% 33% Pineapple 34% 0% Papaya 8% 15% Watermelon 2% 0% Rambutan 3% 0% Mango 1% 3%

VegetablesBrinjal 11% 5% Cucumber 2% 0% Longbeans 2% 11% Snakegourd 18% 1% Ridgegourd 3% 0% Bittergourd 17% 4% Manioc 4% 9% Ladiesfingers 2% 4% GreenChilies 2% 30% Dioscoreaalata(Rajaala) 0% 12% Yam(KidaramAla) 0% 21% Beetroot 0% 33% Cabbage 0% 17% Onion 0% 56% Potato 0% 12% Tomato 0% 23% Carrot 0% 28% Smokingleaf 0% 3% Pumpkin 0% 7% Leeks 0% 3% Beans 0% 4%

TotalBase: 89 74

JaffnaFarmerscultivatinganaverageof3-4typesofvegetablesinsmallervolumes,whileGampaha/Kurunagalafarmersfocusonlyon1-2varieties

15

A Farmer’s Story from… Kurunegala Jaffna

“It’s better to not do agriculture in the future because times are changing, weather is uncertain, lack of clear policies to support farmers. Nowadays, Young people don’t do agriculture, they are taking up jobs as teachers, private companies or go to work in Colombo etc.” “Agriculture provides a good livelihood, if not for the uncertain weather and price fluctuations”. We don’t think our next generation should come into this. We will do this until we can. “Last year when we were about to take our crops to the market, government brought in imported onions, and we had to reduce the prices or else couldn’t sell the products. Some farmers started to drop growing onions as its difficult to harvest onions and not enough returns”

“I am the only full time farmer in my agricultural family, my siblings does farming while working in the service sector. So they have diversified their risks, and have a fixed income in addition to agricultural income.” “My Children and family members also help with farming during their free time, and inform us about new practices and developments, they have good knowledge about new updates” “We have good access to government and maintain relationships with the extension officers, they visit often.

16

Only4%ofJaffnafarmershaseverregisteredwithG.A.P.Gampaha/Kurunagaladistrictshadbetterrecordsof

registrations.

15%4%

85%96%

Gampaha/Kurunagala Jaffna

RegisteredasG.A.PProducer

YesNo

17

Increasedreturns,operationsexpansiontothenextlevelarethekeyreasonsforpreferringexportorientedfarming.

Most Important

Somewhat important

Least important

Togiveemploymentformorepeople(48%)

Toincreaseprofits(90%)

Toexpandoperationfromcurrentlevel(72%)

Togaininternationalexposuretomyproducts

(53%)ToImprovemySkills

(8%)

TogainreputationasExportOrientedfarmer(55%) Tomodernize

production(18%)

Q:Canyoutellusthekeyreasonsonwhyyouwouldliketobecomeanexportorientedfarmer?

18

26%ofGampaha/Kurunegalafarmershavelapsedfromexportorientedproduction,mainlyduetolowpriceandinadequatedemand.

26%4%

74%96%

Gam/Kuru Jaffna

ExportMarketExperience

NeversoldtoExportMarketSoldtoExportMarket,butnotanymore

Reasonfornotsellingtoexportmarketanymore

83%

50%

47%

37%

17%

13%

13%

10%

3%

3%

3%

Pricesreceivedweretoolow

Receivedhigherpriceinlocalmarket

Demandisnotenough

Toomuchhassletoselltheproduct

Unabletomeetexporter’sdemand

Toomanyprocedures/standardstoadhereto

Transportcostishigh

Can’tmeetthequalitystandards(atall)

NosupportfromG.A.Pofficer

Difficulttomeetthequalitystandards

Exporterdidn’tcontactme

Base:Thosewhoareinvolvedinexportingbutnotanymore(30)

19

Farmersexpectgovernmenttointerveneandplayanactiverolethroughregulationsandsupport.

Governmentneedtotakeanactiverole

BuyingFixed/Guaranteedprice

GovernmentisnotkeenontakinganyactiontoprotectusàNeedtointervenemore•  “Governmentshouldregulatethemarketwithstrictpolicies”(KurunegalaRespondents)•  “Subsidiesneedtobeprovidedbythegovernment.Wedon’tgetanysupport“•  “Seedsneedtobedistributedatsubsidizedprice/lowerprice(KurunegalaRespondents)•  “Needtohavecreditschemesforfarmers(JaffnaRespondents)

StandardbuyingagreementatFixedprice•  “Exportersshouldnotreducetheprice”•  “Thereshouldnotbeanydelayinpaymentfromexporters”

Q:Whatgovernmentcoulddotohelpyou?

20

82%

80%

72%

49%

9%

6%

2%

1%

Wedon’thavesufficientinformationonhowtodothis.

Therearen’tanyexportersinourregion

Wedon’thavetransporttotakeittoColombo

Thepricesreceivedaretoolow

Wehaven’tthoughtaboutit

Wedon’tknowthequalitystandards

Ourlevelofproductionisnotenough(Continuessupply)

Otherfarmersdiscouraged

Gam/Kuru Jaffna

91% 73%

92% 68%

99% 45%

95% 3%

3% 15%

3% 9%

0% 4%

0% 1%

Q:Whyhaveyouneversoldyourproductstotheexporter/exportmarket?

LackofInformation,AccesstoExporters,transportationandlowpricesarehighlightedasthekeyobstaclestoenterexportmarket.

21

Lackofknowledgeonwaystoentertheexportmarket,andonotheroperationalaspectssuchasmarketing,logisticsandpaymentsare

thekeychallengesàMeetingqualitystandardsisnotakeyissue.

TopChallengesfacedinsellingproducetoexporter Gam/Kurunagala Jaffna Total

Idon’tknowhowtoaccesstheexportmarket 82% 73% 78% Ihavedifficultycommunicatingwithexporters 49% 68% 58% Idon’tknowhowtomarketmyproducts 48% 43% 46% Idon’thavetransportfacilitiestotakemyproductstoexporters 37% 24% 31% Iworryabouttimelypayments 31% 25% 29% Itisnotprofitable/cost-effectivetoproduceforthismarket 18% 7% 13% Mycostsandpricesaretoohighforexporters 15% 8% 12% Mybusinessdoesnotmeetcertainadministrativecriteria 16% 0% 9% Ican’tmeetthequalitystandards. 0% 15% 7% Idon’tknowenoughabout/understandcontracts 0% 11% 5% Ican’tproduceenoughtokeepupwithdemand. 2% 5% 4% Idon’tproduceenoughtogetintothemarket 0% 7% 3% Ican’tmaintainthequalityofmyproducts 1% 4% 2% Idon’thaveproperbusinessregistration/GAPregistration 1% 4% 2%

TotalBase:Thosewhoarewillingtojoinexportvaluechain 89 74 164

Q:Whatdoyouconsiderthetop3challengesinsellingyourfruitsandvegetablestoexporters?

22

43%

44%

29%

25%

22%

11%

31%

13%

6%

33%

24%

35%

28%

33%

7%

39%

32%

5%

Idon’thavetherightfarmingequipment

Idon’thaveenoughinformationonqualitystandards

Qualityinputsaretooexpensive

Idon’tunderstandthequalitystandards

Ican’tgetqualityinputs

Idon’thavereliablestaff/workers

Idon’thaveaccesstoadequatetransportfacilities

Idon’thaveaccesstoadequatestoragefacilities

Iknowmystaff/workersdon’thavetherightskills

Q:Whatarethekeybottlenecks/challengesyoufacewithregardtotheproductionwhichpreventyoufrommeetingormaintainingquality?

Lacksappropriateresourcessuchastools/equipment,skilledstaff,transport,storagefacilitiesalongwithlackofsufficientunderstandingonqualitystandardspreventfarmersfrommaintainingquality.àTransportation&Storageisakeyconcernamong

Jaffnafarmers

23

Advice/Educationonexportpotential Gam/Kurunagala Jaffna

DAOExtensionofficeradvisedme 51% 3%

Co-farmers(peers)advisedme 41% 35%

G.A.Pofficeradvisedme 11% 1%

OfficersfromEDBadvisedme 2% 0%

Exportersadvisedme 0% 4%

Nooneadvisedme4% 60%

TotalBase: 89 74

ExtensionofficersfollowedbyG.A.Pofficershaven’tdoneenoughgroundworkinJaffnaàOver60%farmersdidn'treceiveany

informationonExportorientedproduction

Q:Haveyoureceivedanyadvice/educationfromanyoneonyourpotentialtoexportyourcrop?(MultipleAnswer)

2424

SkillLevel/Gaps

25

Marketing,Negotiationandmanagementskillsalongwithmarketknowledgewereconsideredimportanttobeasuccessfulexport

farmerà33%ofJaffna-basedfarmersconsideredskillstoraisefinanceimportant

92%

89%

62%

42%

6%

6%

4%

0%

0%

0%

39%

56%

32%

37%

27%

19%

33%

24%

17%

12%

Marketingskills

Sellingandnegotiationskills

Marketknowledge

Managingpeople/labour

Communicationskills

Entrepreneurshipskills

Skillstoraisefinance

Gettingaccesstogovernment

Networkingskills

Managingfinancesanddebts

Farmersopiniononbusinessskillsrequiredtobeasuccessfulexportfarmer

Kurunagala+Gampaha

Jaffna

Q:Inyouropinion,whatarethetop3businessskillsthatareimportanttobecomeasuccessfulexportfarmer?

26

(Kurunagala+Gampaha)

10%1%

2%

74%70%72%

49%67%

45%29%

44%33%36%

22%28%27%

51%30%

55%71%

56%67%64%

10%ManagingfinancesanddebtsNetworkingskills

GettingaccesstogovernmentSkillstoraisefinance

EntrepreneurshipskillsCommunicationskills

Managingpeople/labourMarketknowledge

Selling&negotiationskillsMarketingskills

4%63%

1%

34%34%

33%26%

6%31%

21%

5%

38%36%

1%30%

79%31%

12%36%

25%41%

28%26%

3%43%

15%37%

87%41%

73%53%

ManagingfinancesanddebtsNetworkingskills

GettingaccesstogovernmentSkillstoraisefinance

EntrepreneurshipskillsCommunicationskills

Managingpeople/labourMarketknowledge

Selling&negotiationskillsMarketingskills

Idonothavethisskill Myskillsarepoor Myskillsareaverage Myskillsareexcellent

Jaffna

Gampaha/Kurunegalafarmersselfratedtheirskillstobepoor/averageinmostoftheskills.Jaffnafarmersself–ratedthemselvesasexcellentinmost

oftheskills,exceptgettingaccesstoGovernment.

27

EntrepreneurialSkills

MarketKnowledge

MarketingSelling&Negotiation

Skills

ManagingDebtandFinances

Gettingaccesstogovernment

Softskillstobeaddressedthroughtrainingprograms

All3districtsAll3districtsGampaha/Kurunegala

Jaffna Jaffna

28

NewharvestingmethodsandtechnologyadoptionsarekeyconcernsàJaffnafarmersmoreconcernedonimprovingproductivityperacreage

andwatermanagement

94%

83%

30%

30%

28%

21%

9%

2%

1%

43%

51%

19%

33%

40%

26%

13%

54%

11%

Newharvestingmethods

Newtechnologyadoption

Globalagriculturalbestpractice

Packagingandproducthandlingskills

Watermanagement

Productqualitycertification

Understandingdiseasesandsolution

Improvingproductivityperacreage

SaferLogistics(storing,transporting)

TechnicalSkillsRequiredtobecomesuccessfulExportfarmer:PerceptionofFarmers

Kurunagala+Gampaha

Jaffna

Q:Inyouropinion,Whatarethetop3technicalskillsthatareimportantforafarmer?

29

1%

1%

1%

84%

80%

76%

73%

53%

78%

84%

83%

75%

13%

19%

22%

26%

46%

21%

15%

16%

24%

1%

1%

1%

1%

1%

1%

1%

Safer Log is t i cs ( s tor ing ,

Improving productivity per

Understanding diseases and

Productqualitycertification

Watermanagement

Packaging and product handling

Globalagriculturalbestpractice

Newtechnologyadoption

Newharvestingmethods

8%

0%

0%

0%

4%

14%

42%

22%

8%

31%

7%

1%

29%

23%

52%

42%

46%

45%

37%

44%

17%

27%

41%

18%

5%

20%

22%

24%

49%

81%

44%

32%

16%

10%

12%

26%

Safer Log i s t i c s ( s tor ing ,

Improving productivity per

Understanding diseases and

Productqualitycertification

Watermanagement

Packaging and product handling

Globalagriculturalbestpractice

Newtechnologyadoption

Newharvestingmethods

Idonothavethisskill Myskillsarepoor Myskillsareaverage Myskillsareexcellent

Gampaha/Kurunegalafarmersselfratetheirskillsarepoororaverage.ManyJaffnabasedfarmersclaimtheylackknowledgeonglobalagropractices,technologyadoption,

packaging/producthandlingskillsetc.

(Kurunagala+Gampaha)

Jaffna

30

GoodAgriculturalpractices

NewTechnologyAdoption

PackingandProductHandling

SaferLogistics(Storing/

Transportation)

NewHarvestingMethods

Newharvestingmethods

Keytechnicalskillstobeaddressedthroughtrainingprograms

All3districts

Jaffna

All3districts Jaffna

Jaffna Jaffna

31

83%

17%

Yes

No

ParticipatedinanyFarmerTrainingProgram

Kurunegala+GampahaFarmers

16%

84%

Yes

No

JaffnaFarmers

MostoftheKurunegala/GampahaFarmersattendedtrainingprogramofferedbyAgrarianservicecenter

MajorityoffarmersinJaffnahaveneverattendedanagriculturerelatedtrainingprogram

32

AllfarmersexpressedwillingnesstoparticipateatrainingprogramifconductedbyLIRNEasia

100%

Yes,Iwouldliketogetinvolved

No,Iwouldnotliketogetinvolved

Kurunagala+Gampaha Jaffna

95%

5%

Yes,Iwouldliketogetinvolved

No,Iwouldnotliketogetinvolved

Wouldyouliketoparticipateinatrainingprogram?

3333

ICT/AssetsownedbyFarmers

34

99%

60%

19%

96%

28% 29%18%

45% 48%

97%

18% 2%

98%

51%

7%2% 8% 10%

Mobilephone Smartphone Personalcomputeror

laptop

Bankaccount Creditcard/debitcard

fourwheelvehicle

Threewheelvehicle

Accesstointernet(atleastoncea

week)

Socialmediaaccount

Technology/AssetsownedbyFarmer

Kurunagala+Gampaha Jaffna

Jaffnafarmersownlesstechnology/assetswhencomparedwithKurunegala/Gampahafarmers.àLimitedbyaccesstoinformation.Credit/Debt

cardownershipishighamongJaffnafarmers.

Q.Whatarethefarmassetsownedbyyou?

35

19%6%

84% 85%

27%

86%

68%80%

10% 9%

29%

3%13% 14%

6% 6%

44%

10%

2wheeltractor

4wheeltractor

Sprayingmachine

Grasscutter

Fertilizermachine

Thrashers

Owned Rented Donothave

25%14%

22%

3% 2%

94%

7%

62%72%

2%

7%0%

3%

5%

13% 13%

77%90%

98%

3%

88%

2wheeltractor

4wheeltractor

Sprayingmachine

Grasscutter

Fertilizermachine

Thrashers Agropump

Owned Rented Donothave

Significantgapinfarmingequipmentormachinery(i.e.Sprayingmachine,grasscutter,fertilizermachine)applicationamong

JaffnafarmersFarmingrelatedassetsownedby

Kurunegala+GampahaFarmers JaffnaFarmers

3636

FinancialWellbeing

37

Jaffnabasedfarmerslackproperfinancialliteracyandwellbeing,whereonly14%havefinancialrecords.

99%

1%

Yes,maintainingwrittenrecordsNo,don’tmaintianrecords

14%

86%

Q:Doyouoryourfamilymembersoremployeeskeepwrittenfinancialrecordsofrevenuesandexpensesforyourfarmingbusiness?

Maintainswrittenfinancialrecords

Kurunegala+GampahaFarmers

JaffnaFarmers

38

Only¼thoffarmersinJaffnamentionedtheirreturnshavedeclined,while100%farmersstatedthattheyfacedadeclinein

last2years.

94%

6%0% 0% 0%

Declinedsignificantly

Declinedsomewhat

Remainedthesame

Improvedsomewhat

Improvedsignificantly

AgriculturalperformanceInPasttwoyears(Kurunagala+Gampaha)

1%

24%

41%

32%

1%

Declinedsignificantly

Declinedsomewhat

Remainedthesame

Improvedsomewhat

Improvedsignificantly

Q:Howdoyouevaluatethedevelopmentofyourbusinessoverthelast24months?

AgriculturalperformanceInPasttwoyears(Jaffna)

39

(Kurunagala+Gampaha) Jaffna

1%

2%

0%

4%

17%

44%

56%

59%

1%

36%

20%

51%

3%

3%

3%

1%

94%

I haveControl overmybusinessfinances

Ihavefinancialfreedomtomakechoicestoenjoylife

I have the capacity to absorb afinancialshocktomybusiness

I am on track to meet myfinancialgoalsformybusiness

CompleteDisagree Somewhatdisagree NietheragreeorDisagreeSomewhatagree Stronglyagree Don'tKnow/CantSay

3%

4%

1%

3%

19%

7%

5%

8%

31%

12%

36%

21%

27%

20%

28%

37%

20%

51%

27%

12%

1%

7%

3%

19%

Q:Towhatextentdoyouagreewiththefollowingstatement

Gampaha/Kurunegalabasedfarmers,aremoreconfidentintermsofmeetingtheirfinancialgoalsforbusinessthanfarmersinJaffna.Yet,Jaffnafarmersstatethattheyhavefinancialfreedomtoenjoylife

40

Employeeswageswilllikelytoimproveiffarmerinvolvedinexportorientedproduction

100%

0%

Yes,theywillgetmore

No,itwouldnotimprove

Therewouldnotbeanydifference

ImpactonEmployeesWages(Kurunagala+Gampaha)

87%

3%11%Yes,theywillgetmore

No,itwouldnotimprove

Therewouldnotbeanydifference

Q:Ifyoubecomeexportfarmer,doyouthinkyouwouldbeabletopaymorewages/salariesforyouremployees?

ImpactonEmployeesWages(Jaffna)

41

EmployeeturnoverisslightlyhighinJaffnacomparedtootherGampaha/Kurunagala

ReasonsforLeavingEmployments Gam/Kurunagala Jaffna

Natureofwork 0% 1%

Offeredmoreattractivesalary 0% 1%Terminatedduetopoorperformance 0% 1%

Notcomingregularly 0% 1%

Tookajobelsewhere 3% 5%

Levelofproduction/returndropped 0% 3%

Employeesdintleavefrommybusinessinlast12months. 97% 86%

TotalBase: 89 74

Q:Whatarethereasonspeoplehaveleftyourbusinessinthepast12months?

42

Farmersdissatisfiedwithcurrentsystem•  Lackofcommunication,andinformationgapexistsbetweenFarmers,Exportersand

G.A.Pofficers•  Farmersdon’thaveaccesstosufficientinformation.Theyarecluelessaboutprocess,

standardsrequiredandasaresultunabletomeetthequalitystandards.•  ComplaintsagainstG.A.Pofficers/Government

•  Farmersendupproducingthesamevarietyanditsleadstoanoversupply,duetolackofadequate,timelyinformation.

•  Newofficerslacksufficientexpertiseandproductknowledgetoadvisethefarmers.•  Falsepromiseonbuying,asG.A.Pofficersultimatelybuyfromtheirfriends/relatives.•  Farmersunwillingtoenteraninconsistentsystemwithalotofuncertainty.

•  Issuesfacedwithexporters•  Pricesfluctuates,astheypromisetobuyatacertainprice,andwouldn’tgivetheright,

promisedpricewhentheproducesareready.•  Exportersareinconsistent,astheybuywiththosewhocomewithbetterproducts/larger

volumes.•  NeedtotraveltoColombomultipletimestomeetexporters.

àReduceinformationgapbycommunicatingonwhattoproduce/whatnotproduce,therequiredqualitystandardsthatneedtobemaintained,fixpricesupfrontetc.

4343

Exporters&OtherStakeholdersFeedback

44

ExporterssuggestsJaffnafarmersneedtoproducespecifictypeoffruitsandvegetablesaccordingtoexportquality.Fruits Jaffna Kurunagala/

GamphahaBananaCavendish/Red/Kolikuttu/Long/Green Yes YesMango Yes NoPapaya-Hardskin Yes Yes

Vegetables Jaffna Kurunagala/Gamphaha

Brinjal(Thinnavelipurple/Lenaari) Yes YesGherkin Yes YesBitterGourd Yes YesSnakeGourd Yes YesAshPlantain Yes YesRedOnion Yes YesChili–Green/Hot/ Yes YesKidaramAla Yes NoRajaAla Yes NoLadiesFingers(Haritha) Yes YesMoringa Yes No

Q.Whatarethefruits/vegetablesrecommendedtoproducebytheexporters?

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ExportersstatefarmerslacksappropriateskillsàNeedtoimproveskillssignificantly

•  Farmersthinktheirskillslevelisaverageorhigher(BasedonSurvey)whereas,exportersstatetheirskillsareinadequate,andareonlylookingtoworkwiththosewhofittheirtofulfilqualitystandardsandrequirements.

•  Exportersstatethatfarmersneedtoimprovethefollowingbusiness/softandtechnicalskills.

Business&SoftSkills•  Needtothinklongtermthanshorttermbenefits•  Improveentrepreneursskills

TechnicalSkills•  Needtoadoptnewtechnologyandknow-hows•  Improveefficiencyandreducewastages•  Produceatrightqualityandsize•  Marketknowledgeofwhattoproduce/whatnotproduce

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Reduceinformationgap&ensureyearroundsupply•  Farmersneedtofindwaystoproducevegetablesthroughouttheyearwithbetterand

modernirrigationmethods.àNeedformechanism/apptoreduceinformationgap

Governmentcanimproveextensionwork/promotevarieties•  Improveresearchfacilitiesanddisseminateresearchknowledge

Establishstoragefacilities/collectioncenters•  Onestopplaceforexporterstobuyandtopromotedirecttradebetweenexportersand

farmers.

Suggestionsbyexporterstoimplementabettersystem

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•  Farmersandexportersarenotsatisfiedwiththeprice,farmerscomparewiththelocalmarketprice

•  Farmer’sorganizationneedstonegotiateprice,fixpricesupfront•  Improveefficiencyandreduceaveragecost

•  Farmerslacksqualityconcern/Exportersrequireproducesinbulkquantities•  Providetrainingonqualityandstandards•  Newinfrastructurefacilitiestoreducepostharvestdelays•  G.A.P/EDPneedtoassurequalityatgroundlevel

•  Exporterswanttomaintainastablesupplyofgoods•  Farmerslackdirectcontactwithanexporterandtherearefewexporterswithin

theirarea•  Needtocreatealinkbetweenfarmerandexporters•  Empowerfarmingcommunities•  MobileApp/systemsinplacetosolveinformationasymmetry

Farmer&ExportersgapneedtobeaddressedeffectivelyàCommunicateclearlyonwhattoproduce/whatnotproduce,therequired

qualitystandardsthatneedstobemaintained,fixpricesupfrontetc.

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TypeofCultivation/Varieties•  JaffnaFarmerscultivatinganaverageof3-4typesofvegetablesinsmallervolumes,whileGampaha/

Kurunagalafarmersfocusonlyon1or2varieties.àGampaha/Kurunegalafarmersgrowpaddy/othercropsaswell.Theyhaveawell-diversifiedportfolio,wherethererisksareminimized.

•  UnlikefarmersinNorthsolelydependonagricultureincome,Kurunegala/Gampahafarmershaveothersourcesofincome,throughotherformsofsecondaryemployment/workintheservicessector.

G.A.PRegistrations•  Only4%ofJaffnafarmershaseverregisteredwithG.A.P.Gampaha/Kurunagala(15%)districtshada

relativelybetterrecordsofregistrations.•  ExtensionofficersfollowedbyG.A.Pofficershaven’tdoneenoughgroundworkinJaffnaintermsof

advising/educatingthefarmersregardingtheexportàOver60%farmersdidn'treceiveanyinformationonExportorientedproduction.

ExpectationfromtheGovernment•  Farmersexpectgovernmenttointerveneandplayanactiverolethroughregulationsandsupportthrough

regulations,betterpolicies,subsidies.•  IntroduceBuyingonFixedandGuaranteedPriceàExportersshouldnotreducetheprice.Inadditionto

thatthereshouldnotbeanydelayinpaymentfromexporters.

SUMMARY

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WhyentertheExportMarket?•  Increasedreturns,operationsexpansiontothenextlevelarethekeyreasonsforpreferringexport

orientedfarming.•  ExperienceinExportorientedoperationsàMajorityoffarmershavenoexportmarketexperience.26%

ofGampaha/Kurunegalafarmershavelapsedfromexportorientedproduction,mainlyduetolowpriceandinadequatedemand.

Whyhaven’tyousoldintheexportmarket?•  LackofInformation,AccesstoExporters,transportationandlowpricesarehighlightedasthekey

obstaclestoenterexportmarket.

Topchallengesfacedinsellingtheproducetotheexporter•  Lackofknowledgeonwaystoentertheexportmarket,andonotheroperationalaspectssuchas

marketing,logisticsandpaymentsarethekeychallengesàMeetingqualitystandardsisnotakeyissue.KeyBottlenecks/challengesfacedinmaintainingqualitystandards•  Lacksappropriateresourcessuchastools/equipment,skilledstaff,transport,storagefacilitiesalongwith

lackofsufficientunderstandingonqualitystandardspreventfarmersfrommaintainingquality.àTransportation&StorageisakeyconcernamongJaffnafarmers

SUMMARY:Challengesinenteringtheexportmarket

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BusinessSkills•  Marketing,Negotiationandmanagementskillsalongwithmarketknowledgewereconsideredimportanttobea

successfulexportfarmerà33%ofJaffna-basedfarmersconsideredskillstoraisefinanceimportant.•  Gampaha/Kurunegalafarmersselfratedtheirskillstobepoor/averageinmostoftheskills.Jaffnafarmersself–

ratedthemselvesasexcellentinmostoftheskills,exceptgettingaccesstoGovernment.TechnicalSkillsRequiredtobecomesuccessfulExportfarmer:PerceptionofFarmers•  NewharvestingmethodsandtechnologyadoptionsarekeyconcernsàJaffnafarmersmoreconcernedonimprovingproductivityperacreageandwatermanagement.

•  Gampaha/Kurunegalafarmersselfratetheirskillsarepoororaverage.ManyJaffnabasedfarmersclaimtheylackknowledgeonglobalagropractices,technologyadoption,packaging/producthandlingskillsetc.

•  MajorityoffarmersinJaffnahaveneverattendedanagriculturerelatedtrainingprogram.MostoftheKurunegala/GampahaFarmersattendedtrainingprogramofferedbyAgrarianservicecenter.

•  AllfarmersexpressedwillingnesstoparticipateatrainingprogramifconductedbyLIRNEasiaFinancialWell-being•  Jaffnabasedfarmerslackproperfinancialliteracyandwellbeing,whereonly14%havefinancialrecords.•  Only¼thoffarmersinJaffnamentionedtheirreturnshavedeclined,while100%farmersstatedthattheyfacedadeclineinlast2years.

•  Gampaha/Kurunegalabasedfarmers,aremoreconfidentintermsofmeetingtheirfinancialgoalsforbusinessthanfarmersinJaffna.Yet,Jaffnafarmersstatethattheyhavefinancialfreedomtoenjoylifeandhavemorecontroloverbusinessfinances.

SUMMARY:SkillLevelGaps