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Small Potato, Big Market

Liu Wenxiang (Project Officer in Wuchuan, IMAR, SFAGM)

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

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

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

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

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

 

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

 

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.


 


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