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Small
Potato, Big Market
Liu Wenxiang (Project Officer in Wuchuan, IMAR,
SFAGM)
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Like most other small farmers in Wuchuan, Madam Xing Linmei owns
a small farm as small as tens of Chinese Mu, and potato is the
major commodity on the farm. Profit from potatoes constitutes
the major part of her family income, and Madam Xing always |
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expects a good harvest on her farm
and a good price for her potatoes so that she will have money to
pay her children’s school tuition and other living costs. To her
great disappointment, however, the potato yield is good in
stable way depending on the weather and the price is fluctuated
depending on the market. Even worse, potato dealers control the
marketing channel and set the price according to their own
standards for both quality and quantity. To increase the income,
Madam Xing |
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bought a truck in partnership with
the neighbors and shipped their potatoes to Beijing and Shandong
market. Although it is a hardship to drive long distance, but
the increased sales and better price makes her feel worthwhile.
Xing is a very ambitious businesswoman; she’s not easily
satisfied with a little achievement. By realizing the advantage
of Wuchuan potato such as good outer looking, nice tastes and no
pollution, she starts thinking of the strategy to get a premium
for above criteria. While she is wondering about the right
business approach, she happened to know the Small Farmers
Adapting to Global Markets Project (SFAGM) through the project
field coordinator. Since then, she learned a lot about products
branding, quality and safety standards, supply chain management,
and farmer’s cooperative from the project training programs. The
training changed her mind set and she gets a better idea of what
the strategy should be for her potato business.
By the end of 2006, Xing and her neighbor farmers have attended
the training on farmers’ cooperatives twice. The training was
delivered by Canadian specialists, Mr. Roger Herman |
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and Mr. Bill Turner. During the training, Canadian experts
helped her to do a feasibility study of her business plan
through a SWOT exercise (analysis of strength and weakness,
opportunities and threats). As a result, Xing and her neighbor
farmers learned that their strength lies in the good quality of
their potatoes, the weaknesses are lack of branding and
promotion, and the opportunity is the increasing demand for high
quality and safety potatoes. How to take the emerging marketing |
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opportunity? Obviously, individual small farmer can’t meet such
market demand. The solution is to form potato farmers
cooperative.
Without hesitation, Xing and her
neighbor farmers established Shengfeng Green Farm Produce
Association with the support of SFAGM after the training. To
support the initiatives, the project continued to provide
various training and technical assistance to the newly
established farmers coop. For example, specialists hired by
SFAGM like the quality manager of Beijing Xiaotangshan Special
Vegetable Base (BXSVB) helped them to set up the on farm quality
assurance program; the project tested the soil and provided a
balanced fertilization formula to the farmers, farmers field
school is conducted to resolve technical problems along with the
production cycle. Beside, Ms. Xing had attended the women
leadership training in Beijing to build up her confidence and
capacity to be a leader. At the beginning, many members of the
coop do not appreciate the training and |
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technical programs
required by the on farm quality assurance program and
think it is waste of their time to keep farm records.
They thought they had planted potatoes for a lifetime,
and there’s no need to learn from others such as the
balanced fertilization technology. However, Xing spends
lot of time convincing her neighbors to follow the new
way of growing potato and promise to cover the loss if
failed. To make a premium for their high quality
potatoes, Xing contacted potential buyers |
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actively. Through her
efforts and project facilitation, Xing’s Coop becomes a
supplier to Beijing market through Beijing Xiao Tang
Shan Special Vegetable Production Base.
All the hard work is paid
off finally. There’s an average 20%-30% increase in
yield and 15% higher price in Beijing market comparing
with non-member of the Coop. The dream becomes true,
investment on quality get return. The achievement is
recognized by Madam Hui Lusheng, deputy minister of
State Food and Drug Administration when she visited
Wuchuan project site. The role of Coop in food safety
control is fully appreciated; Mdm Hui even encourages
Xing’s Coop to apply for the official supplier of potato
to the Olympic Games held in Beijing 2008, small potato
can play important role in the big market. |
Copyright © CIDA 2004/7
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