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Paper presented at the International Conference Cooperative Responses to Global Challenges, March 21 - 23, 2012, Humboldt-University Berlin, Germany.
Abstract: Since the start of this century, several innovative approaches to organic food distribution through regional and local networks have emerged in urban India. These initiatives are often organized as cooperatives, and they share several other characteristics with alternative food networks and community-supported agriculture (CSA) found in other parts of the world. This paper is mainly explorative. Our objective is to analyse salient features of CSA. We apply and extend concepts developed for the characterisation of CSAs in the United Kingdom (Kneafsey et al. 2008, Seyfang 2009) in order to compare CSAs in three Indian megacities. We find many commonalities between CSA in India and CSA in other parts of the world. We conclude with some policy recommendations and an agenda for further research.
Paper presented at the International Conference Cooperative Responses to Global Challenges, March 21 - 23, 2012, Humboldt-University Berlin, Germany.
Abstract: Since the start of this century, several innovative approaches to organic food distribution through regional and local networks have emerged in urban India. These initiatives are often organized as cooperatives, and they share several other characteristics with alternative food networks and community-supported agriculture (CSA) found in other parts of the world. This paper is mainly explorative. Our objective is to analyse salient features of CSA. We apply and extend concepts developed for the characterisation of CSAs in the United Kingdom (Kneafsey et al. 2008, Seyfang 2009) in order to compare CSAs in three Indian megacities. We find many commonalities between CSA in India and CSA in other parts of the world. We conclude with some policy recommendations and an agenda for further research.
Paper presented at the International Conference Cooperative Responses to Global Challenges, March 21 - 23, 2012, Humboldt-University Berlin, Germany.
Abstract: Since the start of this century, several innovative approaches to organic food distribution through regional and local networks have emerged in urban India. These initiatives are often organized as cooperatives, and they share several other characteristics with alternative food networks and community-supported agriculture (CSA) found in other parts of the world. This paper is mainly explorative. Our objective is to analyse salient features of CSA. We apply and extend concepts developed for the characterisation of CSAs in the United Kingdom (Kneafsey et al. 2008, Seyfang 2009) in order to compare CSAs in three Indian megacities. We find many commonalities between CSA in India and CSA in other parts of the world. We conclude with some policy recommendations and an agenda for further research.
Cooperative Responses to Global Challenges, Berlin 21.-23.03.2012
Community-Supported Agriculture and Consumer Cooperatives in India Markus Hanisch Humboldt-Universitt zu Berlin Landwirtschaftlich-Grtnerische Fakultt, Department fr Agrarkonomie, Fachgebiet Kooperationswissenschaften Luisenstr. 53 10099 Berlin Phone: +49 (0)30 20936500; Email: hanischm@rz.hu-berlin.de
Abstract: Since the start of this century, several innovative approaches to organic food distribution through regional and local networks have emerged in urban India. These initiatives are often organized as cooperatives, and they share several other characteristics with alternative food networks and community-supported agriculture (CSA) found in other parts of the world. This paper is mainly explorative. Our objective is to analyse salient features of CSA. We apply and extend concepts developed for the characterisation of CSAs in the United Kingdom (Kneafsey et al. 2008, Seyfang 2009) in order to compare CSAs in three Indian megacities. We find many commonalities between CSA in India and CSA in other parts of the world. We conclude with some policy recommendations and an agenda for further research. Keywords: Community-Supported Agriculture (CSA), Cooperatives, India, Hyderabad, Mumbai, Pune 1
1. Introduction Around the world, a growing number of people prefer local, organically grown food and want to support agricultural systems that provide healthy food to consumers and at the same time enable small producers to sustain a decent livelihood from farming. Community-supported agriculture (CSA) has become a globally accepted and growing movement (Henderson 2010). This growth can be interpreted partly as a response to food scandals and hazards such as pesticide residues, and to an increasingly industrialized and globalized food system that fails to provide adequate nourishment for large numbers of people, does not account for many environmental costs, and concentrates decisions over food in fewer and fewer hands (Henderson 2007: 11). The literature on localized food systems and CSA initiatives is necessarily based on case studies and some broader attempts to compare and describe the phenomenon. In the United States, Japan and some European countries, community-oriented models of food distribution first emerged in the 1970s and have kept spreading in numbers since then. In India, on the other hand, similar initiatives have only begun to emerge. The objective of this paper is to explore emerging CSA initiatives in India as part of the growing organic food sector of the country, to place these initiatives within the context of CSA as a growing global movement, and to assess their potential contribution to sustainable development of urban food systems in India. The paper starts out with an overview of definitions and key characteristics of CSA schemes and a review of academic literature on alternative 1
1 Several authors (for example, Holloway 2007, Kloppenburg et al. 2000, Kneafsey et al. 2008) critically point out that the term alternative implies a dichotomy between conventional and alternative food systems, where in reality a broad variety of initiatives have been labelled alternative for different reasons, and many of these share aspects of conventional food systems to some extent. We nevertheless use the term alternative food networks in the present paper because it is best suited to capture the main characteristics distinguishing CSA from conventional food supply chains and the mainstream of food distribution and marketing. food networks. Frameworks for analyzing alternative food networks and their potential contributions to sustainable development were developed by several authors with reference to case studies in the USA and Europe (Holloway et al. 2007; Kneafsey et al. 2008; Seyfang 2006; Seyfang 2009). These frameworks are presented in sections 2. An outline of the institutional background of the agricultural sector as well as the role of cooperative approaches in India sets the local context of cooperatives, 2
agricultural marketing and organic food in India in section 3. In section 4 we present three case studies of young community-driven organic food distribution schemes in metropolitan areas of South and West India, namely Hyderabad, Mumbai and Pune. The key characteristics of these case studies are examined and their contributions to sustainable development assessed. This explorative paper of the young CSA sector in India is based on empirical data gathered in a mixed-method study 2 2. Framing Community-Supported Agriculture Initiatives conducted in several intervals over the course of three years. The methodology combined field visits, participatory observation, interviews with organizers, producers and participants/consumers, a literature review and document analysis. To our knowledge, no published academic literature exists to date on the emerging CSA sector in India, apart from the MSc thesis by Gillan (2010) that discusses a case study from Pune, India, which is one of the first CSA initiatives in India and is also presented in this paper. The action manual A Share in the Harvest published by the Soil Association the principal organization promoting the CSA concept in the UK defines CSA as a partnership between farmers and consumers where the responsibilities and rewards of farming are shared. (...) CSA is a shared commitment to building a more local and equitable agricultural system, one that allows farmers to focus on good farming practices and still maintain productive and profitable farms (Soil Association, 2009: 3). This definition emphasizes partnerships wherein producers and consumers commit to share the risks involved in any farming enterprise, for example by way of consumers holding a farm share, prepaying for the seasons produce, or signing a contract giving the farmers a purchasing guarantee. A subscription or purchase commitment on the part of consumers allows farmers to plan production based on a more accurate estimate of demand than in conventional supply chains, thus minimizing the risk of wastages due to surplus production. The risk of a failed harvest is shared by all participants, rather than being borne solely by the farmers. Prepaid systems and revolving loan funds
2 Research for this paper was funded by the Germany Ministry of Education and Research in the context of the project Climate and Energy in a Complex Transition Process towards Sustainable Hyderabad. Mitigation and Adaptation Strategies by Changing Institutions, Governance Structures, Life Styles and Consumption Patterns. We gratefully acknowledge the help of the organizers of Sahaja Aharam, MOFCA and GORUS for support during field research. 3
which some CSA initiatives have developed allow farmers to make investments at the beginning of the planting season. Many CSA schemes are organized as cooperatives or cooperative associations. CSA is an adaptable concept, and Henderson (2010) notes that [o]nce they seize upon the basic principles, farmers and citizen-consumers in each culture are adapting CSA to their local conditions. Gillan (2010) uses the umbrella term Local Solidarity Partnership between Producers and Consumers to refer to CSA in Anglophone countries, and similar systems in other parts of the world 3 . The CSA system originated in Japan in 1971 as the teikei (partnership) movement. Later in the 1970s, similar movements emerged in Switzerland, from where the system was carried to the USA in the 1980s. By the end of the millennium, the USA alone had over 1000 such projects, most of them small-scale organic or bio-dynamic family farms which retained conventional marketing channels in addition to supplying to nearby urban consumer groups. In recent years, the locavore movement together with food scandals and global financial crises caused these numbers to multiply, and the range of CSAs in terms of size and degree of consumer involvement has become more varied (Henderson 2010) 4 Holloway et al. (2007) and Kneafsey et al. (2008) developed a framework of seven heuristic analytical fields for analysing food productionconsumption networks. We add to this an eighth field, namely contributions of CSA to sustainability, which is based on the sustainable consumption concept developed by Seyfang (2009). Following this framework, we first characterize key features of CSA before applying these characterizations to three case studies from India. It will become obvious in the next paragraphs that specific aspects of a particular CSA project may relate to several of these analytical fields. . Analytical Field Examples 1. Site of food production Community-garden, school grounds, urban brownfield sites, farm, rented field, allotments... 2. Food production methods Organic, biodynamic, consumer participation, horse ploughing...
3 These include the Teikei system in Japan, Associations pour le Maintien dune Agriculture Paysanne (AMAP) in France, Agriculture Soutenue par la Communaut (ASC) in Qubec, Reciproco in Portugal, Voedselteams in Belgium and Solidarische Landwirtschaft in Germany. 4 Henderson (2010) gives an overview of this global history of CSA. 4
3. Supply chain Local selling/procurement, Internet marketing... 4. Arena of exchange Farm shops, farmers markets, home delivery, mobile shops, PYO... 5. Producerconsumer interaction Direct selling, email, newsletters, cooking demonstrations, food growing work, farm walks, share/subscription membership schemes... 6. Motivations for participation Business success, making food accessible, social/environmental concerns, anxiety avoidance, sensory pleasure... 7. Constitution of individual and group identities Customers, participants, stakeholders, supporters groups, childrens groups, disability groups, care-givers, womens groups... 8. Contributions to sustainable development Localized, reduced ecological footprint, encouraging community-building and collective action, building new infrastructures of provision Table 1: Framework for analyzing community-supported agriculture initiatives, based on Kneafsey et al. (2008) and Seyfang (2009)
1. Site of food production: The majority of CSA farms in the US are small to mid-scale farms (Henderson 2010). The CSA system is more suited to small farms because it requires diversity of production and intensive management, because consumers can more easily connect with and participate in small farm enterprises, and because small farms cannot use economies of scale in order to compete with larger commercial farm enterprises. For small farms, CSA systems may provide better returns than other marketing models (Brown and Miller 2008). Most CSA farms use only part of their land for the CSA scheme and continue to use other marketing channels. 2. Food production methods: CSA typically use organic, biodynamic or other sustainable farming systems. While some CSA farms in the USA are highly mechanized, the majority have diverse vegetable production that involves a lot of hand labour (Henderson 2010). CSA farms typically produce diverse crops, which is important both to maintain ecological sustainability of the farm and to satisfy consumer expectations in terms of product variety. The vast majority of CSA focus on vegetables as their primary product. 3. Supply chain: CSA farms are typically located near urban centres and operate locally or regionally, with short supply chains. Proximity and strengthening of local food networks are 5
among their core objectives. CSA is a specific form of direct marketing in which produce is marketed directly from producer to consumer without any intermediaries. Supply chains are organized using different levels of technology, ranging from low-tech direct supply on a local level to Internet-based solutions of supply chain management. 4. Arena of exchange: CSA comprises a wide range of different initiatives with different supply chain models, and accordingly, exchange of produce takes place in a variety of spaces. Some CSAs ask consumers to pick up supplies from the farm or a farm shop, some distribute through roadside stalls, farmers markets, mobile sales points, retail stores or other pickup points, and others operate as box delivery schemes. In addition to the space where the material exchange of produce takes place, this field also refers to the object of the exchange, for example food is exchanged for money, work or financial commitments in the form of subscriptions. 5. Producer-consumer interaction: CSA schemes involve some form of personal interaction and face-to-face contact between the two groups, which may occur frequently and regularly, for example if consumer-members work on the farm, or may be limited to occasional farm visits by the consumers. Accordingly, CSAs can have varying degrees of consumer involvement. While some operate as box delivery schemes and treat consumers mainly as customers, others oblige members to contribute a certain number of hours of volunteer work on the farm, and some hire part of their member base as harvest helpers to solve the farm labour problem. 6. Motivations for participation: Producers and consumers can have different motivations for participating in a CSA scheme. Gillan (2010) found in her survey that important reasons for starting a CSA are to grow healthy food, foster producer-consumer partnerships, increase farm viability, create a better environment, increase local food sovereignty and respond to globalized food systems. On the part of consumers, participation is motivated for instance by the desire to eat fresh and healthy organic produce, support local peasants and sustainable 6
farming practices, and reconnect with the sources of ones food. Seyfang (2009) found that advantages perceived by direct marketing customers include supporting a local business, better quality produce, convenience (in the case of box delivery), reduced packaging, ethical shopping (as opposed to shopping in supermarkets), reduced food miles and friendly atmosphere. 7. Constitution of individual and group identities: The basic principle of CSA fosters values of participation, ownership and food sovereignty, cooperation and community-building, and reconnection with producers and the origin of ones food. This process of reconnection and of forming partnerships contributes to the formation of specific identities for both producers and consumers. Many CSA initiatives aim to educate consumers and raise awareness of issues like sustainable farming systems, environmental conservation, rural livelihood security or the globalization of food systems. CSA projects challenge dominant food systems and supply chains and offer possibilities for resistance to centres of power in food systems (whether or not this is an explicit objective of a project [...]) and to engage in active remaking of food productionconsumption relationships in accordance with their particular ways of imagining better food networks. (Holloway et al. 2007: 10) 8. Contributions to sustainable development: The rhetoric of sustainability and sustainable food systems is used by many actors for widely different purposes, and with widely different conceptions of what makes a food system better or sustainable. Several authors developed economic, social and environmental criteria for defining sustainable food systems. For example, the criteria used by Van Loon, Patil, and Hugar (2005) include profitability, competitiveness in the local market, number and type of farm workers, compensation and benefits for employees, sourcing of inputs and self-sufficiency, crop management, and pest and weed management, and crop diversity. Kloppenburg et al. (2000) concluded from a participatory process with stakeholders who are actively involved in constructing alternative food networks that sustainable food systems should be environmentally sustainable, 7
proximate, economically sustaining, self-sufficient, participatory, just, healthful and diverse, knowledgeable, communicative, sustainably regulated, culturally nourishing, seasonal, relational and based on value-oriented associative economics. While there can be no universal and timeless definition of a sustainable food system, we found the set of sustainable consumption criteria developed by Seyfang (2009) localisation, reducing ecological footprints, community-building, collective action and building new infrastructures of provision to be both clear and comprehensive. The description of the seven previous analytical fields illustrates the many ways in which CSAs respond to these facets of sustainable consumption. Seyfang applied the five criteria to a UK case study of a grassroots-based sustainable food initiative and found that it fulfils all of them. Other studies also concluded that CSA can contribute to sustainable development in various ways, for example a feasibility study by the Soil Association found that CSA has many benefits for both farmers and consumers, and Lass et al. (2001) concluded from the largest survey of CSA farms in the USA to date that the system may help maintain or improve the economic and environmental condition of farm enterprises. 3. Institutional background in India The CSA movement reached India through grassroots NGOs as well as consumer and producer activists, some of whom were inspired by international examples of CSAs. In India, cooperatives have a strong role in society in general, from urban housing societies to producer cooperatives in the agricultural sector. While many producer groups have been organized as cooperatives for a long time, urban consumer cooperatives in the food sector are a relatively new phenomenon. Since legislation does not provide for any form of incorporation that allows for donor funding and commercial revenue at the same time, many CSAs opt for a hybrid model of organization: While an externally-funded non-profit organization such as a registered society or trust facilitates rural production by providing technical assistance, capacity building services and infrastructure, a for- profit company or producer cooperative handles the commercial marketing activities. 8
The Indian agriculture sector is dominated by small and marginal farmers producing in low-input rainfed production systems; at the same time, farming systems in regions that cater to large urban markets are highly intensive and dependent on chemical inputs. Economic sustainability of farming is a matter of particular urgency in light of the agrarian crisis and farmer suicides. Between 1997 and 2010, nearly 200,000 farmers ended their lives to escape the debt cycles caused by chemical farming and dependence on agri-input corporations (Sainath 2010). In response to this crisis, the Indian grassroots organic movement of pioneer farmers, political activists and NGOs has promoted sustainable farming systems for many decades. Efforts to improve marketing strategies and establish outlets in urban centres were added to the agenda more recently, and emerging CSA initiatives can be seen largely as part of these efforts. The dominant mode of food distribution in Indian cities to date has been through markets, street vendors and small traditional retailers, the kirana stores; supermarkets and hypermarkets only started to spread with the Indian retail revolution since the new millennium. Organized retail had reached a market share of 5% in 2008, and is expected to grow to 14-18% by 2015 (McKinsey 2008). Neither traditional nor organized modern retail currently provide adequate marketing channels for small organic producers. The increase in availability of organic food in urban markets over the past decade has mostly been limited to dry produce, such as staples, spices, sugar, tea and coffee. Until recently, fresh organic produce was hardly available in urban markets at all, except for occasional and inconsistent supplies through single organic outlets, NGOs or informal exchange on a personal basis. At the same time, demand for organic produce in metropolitan areas is projected to grow significantly in future, and vegetables are the product category for which demand is greatest (Osswald and Menon 2012; Rao et al. 2006). This constitutes a major opportunity for local organic food initiatives to establish vegetable supply chains that bridge the current demand-supply gap. 4. Three community-supported agriculture initiatives in India In the context of the UK, Seyfang (2009) notes a recent revival of localised food supply chains and [...] rise in demand for specifically local organic produce (ibid.: 83). While in Indian cities this 9
demand is still a negligible niche in quantitative terms, there is an emerging grassroots movement that explicitly aims to foster values such as local food, organic production methods, fair trading relations and closer links between producers and consumers of food. In the following section we present three case studies of niche, grassroots-based sustainable food initiatives three cities of South and West India in order to explore key characteristics of alternative food networks and CSA in India, and to assess their potential contributions to the sustainable development of the food systems of expanding metropolitan areas and their peri-urban linkages. Case Study Hyderabad: Sahaja Aharam Organic Consumer and Producer Cooperative The Hyderabad-based NGO Centre for Sustainable Agriculture works with farmers cooperatives to promote various aspects of sustainable rural development. Cooperative members are small and marginal farms across Andhra Pradesh who produce organically under a Participatory Guarantee System. In order to facilitate marketing of organically grown produce, the NGO developed the farmers brand Sahaja Aharam (Natural Food) and helped set up the Sahaja Aharam Mutually Aided Cooperative Federation, a federation of farmers cooperatives and an urban consumer cooperative. Initially, Centre for Sustainable Agriculture concentrated on developing local markets in rural areas, and later on started its marketing activities in Hyderabad with a farmers market on its office premises. As the cost of commuting to Hyderabad on a regular basis was too high for the farmers, in 2010, the Sahaja Aharam Organic Consumer and Producer Cooperative opened a cooperative store in the Centre for Sustainable Agriculture office premises instead. The store is open to the general public and in 2011 its regular customer base had grown to 150. The range of products and availability of fresh vegetables also expanded gradually. Apart from the store, the cooperative runs a vegetable delivery system. Customers order on a weekly basis and receive a basket of mixed seasonal vegetables, for which they pay upon delivery. A cooperative-owned van delivers to two hundred households in a radius of 30 km. To make logistics manageable, all households in one area come to a collection point at a specified time to pick up their produce. The cooperative decided to focus on delivery, rather than opening up more shops across the city, because real estate has become very 10
expensive in the expanding metropolitan area of Hyderabad, especially in the well-off neighbourhoods where organic consumers tend to be concentrated. The main objective of the cooperative federation is to reduce transaction costs in marketing and to valorize the organically grown products of farmers in peri-urban areas of Hyderabad. If farmers do not have an outlet for their organic produce, products end up in conventional supply chains, losing much of their added value as a result. The bulk of produce is sourced directly from local farmers cooperatives, located within a radius of 150 km of Hyderabad. All vegetables are seasonal; only wheat is sourced from Maharashtra because it is not grown in Andhra Pradesh. Approximately 500 farmers who are members of Sahaja Aharam cooperatives supply to consumers in Hyderabad. On average, each farmer uses half an acre of land to grow vegetables for the cooperative in a mixed cropping model so that units can be rotated depending on market demand. Currently four employees work full-time for the Sahaja Aharam marketing activities, and volunteers do about half of the work. In the long run, the goal is to use volunteers for awareness raising and promotion of the cooperative, and to run the core marketing activities professionally. The mid- to long-term vision is to triple monthly sales from the current 8.5 tonnes per month, and expand the customer base to 3,000 households so that the marketing activities can become financially self- supporting. The cooperative plans to do more frequent deliveries with more staff, and in the longer run to decentralize delivery by outsourcing it to local franchisees across the city. This option would become feasible once production volumes increase and would require tamper-proof packaging rather than just cloth-bags so that the organic product quality remains ensured. The cooperative is also planning to start wholesales and to add a cold storage facility in the store in order to avoid losses due to spoilage and pests.
Case Study Mumbai: Greens in a Box: Hari Bhari Tokri In 2009, fresh and locally grown organic vegetables were difficult to come by in Mumbai. In response, a group of organic farmers located in peri-urban areas of Mumbai got together with activists of 11
Mumbais organic movement and a number of conscious consumers keen on a regular supply of organic vegetables. They became the Mumbai Organic Farmers and Consumers Association (MOFCA), an organization which has since organized weekly deliveries of a mixed basket of vegetables known as Hari Bhari Tokri or Green Full Basket. It is a first-of-its-kind initiative in Mumbai (Ansari 2010). Since the first season, the number of farmers associated with MOFCA grew from nine to twenty-five who in 2011 cultivated a total of 8 acres of vegetables and rice for the tokris. The farms are located up to 200 km from Mumbai, and produce is delivered to pick-up points across Mumbai within 36 hours of harvest. The baskets are stocked with a variety of whatever vegetables are seasonally available, and consumers pay a farm-share of INR 3,000. in advance for sixteen weekly baskets of seasonal vegetables. If consumers fail to pick up their tokris from the pick-up points, it is their loss because the subscription is prepaid for the entire season. Since 2011 there is also an option to get the tokri delivered for an additional charge. The initiative aims to be more than a supply of fresh, local, seasonal and organically grown produce. As one of the organizers puts it: We are not just another vegetable vendor! One of the primary aims of MOFCA is to place people before profit in the production of food. Toward this goal, they are establishing direct relationships between the people who grow food and those who eat it thereby supporting local farmers as well as supplying good food to urban consumers at affordable rates. The three primary goals of the tokri scheme are to demonstrate and share sustainable farming techniques, to create an alternative market model with shared risks and fair prices for farmers and consumers, and to educate consumers in order to create and sustain demand for seasonal, local and organic food. In winter 2011, 190 consumers held farm-shares and received weekly deliveries. Even though MOFCA promotes its activities only through word-of-mouth and email lists, another 800 consumers are already on a waiting list, which indicates the huge demand for fresh organic produce. Participants are a broad spectrum of people, and MOFCA does not specify any particular target group. MOFCA occasionally offers activities such as demonstrations, workshops and farm visits giving members an 12
opportunity to learn about growing and eating seasonal, local and organic food. Although consumers have the opportunity to visit the farms at any time and see the production methods for themselves, few of them made use of this opportunity so far. Ubai Husein, one of the founders of MOFCA and a supplying farmer, speculates that many customers do not have the time and those who already know the farmers and the organizers personally trust them without having seen the farms themselves. The learning curve during the pilot phase was steep for the organizers who are still in the process of refining the system and the supply chain. Due to limitations of supply, only 250 kg of vegetables 50% percent of the initial target were delivered per week during the first growing season. In 2011, supply volumes reached 800 kg per week. For future seasons, the objective is to further scale up production in order to make the system more viable financially. Overall, the model has been well received by consumers and is in high demand. The biggest challenge in terms of scaling up is the limited number of farmers who are able to supply organic produce.
Case Study Pune: GORUS: Organic veggies in my inbox GORUS 5 In order to organize their supply chain efficiently, GORUS makes use of latest technology: Customers order their weekly deliveries through an online form that contains a list of 35-40 vegetables and other organic groceries. Once orders are placed, the GORUS coordinators send a message to each farmer via mobile phone, specifying the exact quantities they should harvest. The farmers bring this , or Gomukh Centre for Rural Sustainability, is a CSA scheme that was initiated as a pilot project by Gomukh Environmental Trust for Sustainable Development. For more than fifteen years, this NGO has worked with small farmers in the Pune region on sustainable rural development and integrated watershed development. In 2008, GORUS started growing a variety of vegetables organically on a small plot of land at the Gomukh Trusts farm, located 45 km from Pune. Initially, the produce was sold to a small number of households in Pune, but by 2011, 25 farmers became involved and the customer base grew to 150 households.
5 Organic veggies in my inbox is the title of a newspaper article published about GORUS (Dharmadhikary 2010) 13
produce to the collection centre, where the individual boxes are packed. In combination with the small scale and regional focus, this system of harvesting only what is ordered and delivering it within 36 hours allows farmers to minimize wastage and risks. Whatever produce is left over gets dried or processed into powder and puree, using adapted small-scale technology like a solar drier and manual pulping machine to promote value-addition on the village level. Three days a week, a total of 600 to 700 kg of organically grown vegetables is distributed to different parts of Pune by the GORUS truck. Upon delivery, customers are requested to check the delivered products against the bill and to sign a delivery register. GORUS has implemented a prepaid system in which customers make an advance payment of INR 2,000 from which their weekly purchases are deducted. One of the challenges for GORUS is the fact that some consumers are slow to settle their bills and even owe money, even though the project has little working capital but needs to pay the farmers regularly. Ashwin Paranjpe, initiator and coordinator of GORUS, had previous experience with CSA in the USA and in Spain. He emphasizes that he considers GORUSs activities to be decidedly different from a typical certified organic marketing model. It is not just a relationship of buying and selling; in addition to supplying fresh, local and seasonal organic produce, the aim is to promote personal interaction and exchange, to redefine the farmer-consumer relationship and bring consumers closer to the farm and farmers. To this end, GORUS arranges farm visits for participating consumers on three weekends a year. In 2011, 150 to 200 people from Pune joined each of the farm visits, many of them with their families. Both farmers and consumers enjoy this personal interaction, which also helps to build long- term customer loyalty, educate consumer about principles of organic agriculture, and raise awareness of broader issues such as rural livelihood conditions, environment and health. The farmers involved with GORUS have an average landholding of 2-3 acres of which 1/4 acre is cultivated as vegetables. GORUS encourages farmers to have a highly diversified farm system with crops that can be marketed well in the city. With the income they have already made from the vegetable marketing activity, some farmers are now able to set up small greenhouses that help them 14
expand the growing season. For the farmers, the most important advantages of selling through GORUS are having an assured market for their produce and avoiding the risks of price fluctuations. They are paid the same rate per kg for every vegetable throughout the year and receive a share of at least 50% of what the consumer pays. Salaries for labourers are also above the local average. This Fairtrade model has worked so far without any legal bond or contract with the farmers, who are officially considered suppliers. Since Gomukh Trust has worked in the area for a long time, their verbal guarantee has been sufficient. In fact, it was their good reputation in the region that helped win the farmers trust in the first place. Gomukh Trust initially facilitated the project by co-funding staff salaries and providing land, capital and infrastructure facilities. Since 2011, marketing activities are financially independent of the NGO and run as a commercial venture with a social focus. Ashwin Paranjpe hopes that in another five years all infrastructure costs are fully covered by the vegetable marketing. The projects base of farmers and consumers has grown steadily. While there is already a waiting list of interested consumers, GORUSs rate of expansion has been deliberately slow so as to give farmers time to expand their production gradually. The target capacity is a maximum of 200 families and 50 farmers, a scale at which the project can maintain its basic principles of regional focus, environmental sustainability, and Fairtrade relationships.
Analytical Field Case Study Hyderabad: Sahaja Aharam Case Study Mumbai: MOFCA Case Study Pune: GORUS 1. Site of food production 500 mall and marginal farms within 150 km of Hyderabad 25 farms within 200 km of Mumbai 25 small and marginal farmers within 60 km of Pune 2. Food production methods Diverse multi-cropping planting system; non- certified organic (PGS) Diverse multi-cropping planting system; non- certified organic (PGS) Diverse multi-cropping planting system; non- certified organic (PGS) 3. Supply chain Fresh from farm; box delivery to pick-up points and cooperative retail store Fresh from farm; box delivery to pick-up points, or to households at extra charge Fresh from farm; box delivery to households 4. Arena of exchange 200 subscribers pay on delivery for a weekly mixed seasonal vegetable basket 190 members pay a farm share for every growing season in advance for a mixed seasonal vegetable basket delivered weekly 150 subscribers pay a prepaid balance from which weekly orders of seasonal vegetables get deducted 15
5. Producer consumer interaction Annual member assembly Occasional workshops and farm visits Three farm visits per year 6. Motivations for participation Farmers: higher and more stable income, minimized risk of wastage Consumers: regular supply of fresh organic produce, desire to support local farmers Farmers: higher and more stable income, minimized risk of wastage Consumers: regular supply of fresh organic produce, desire to support local farmers Farmers: higher and more stable income, minimized risk of wastage Consumers: regular supply of fresh organic produce, desire to support local farmers 7. Constitution of individual and group identities Some consumers are cooperative members and shareholders; some are customers; some work as volunteers Consumers are shareholders; some work as volunteers Consumers are subscribers; no volunteers 8. Contributions to sustainable development Diverse organic farming systems, reduced food miles and packaging, improved livelihood security for small and marginal farmers, reconnection of producers and consumers, providing healthy food Diverse organic farming systems, reduced food miles and packaging, promoting sustainable consumption habits and educating consumers on local and seasonal produce, building new institutions of food provision, providing healthy food Diverse organic farming systems, reduced food miles and packaging, improved livelihood security for small and marginal farmers, reconnection of producers and consumers, increased consumer awareness, providing healthy food Table 2: Properties of the case studies from India in relation to the analytical fields suggested in section 2 (cf. Table 1)
Site of food production: The case studies indicate that the common starting point CSAs in India is either a group of urban consumers with an educated background or a rural development NGO who had worked with small and marginal farmers for many years and recently started focusing on marketing in urban centres. The CSA approach is compatible with the basic values of these organizations, such as participation, solidarity, anti-corporatism and sustainable development. It also gives resource-poor small and marginal producers an opportunity to market organic produce. Most of the farms in the case studies have landholdings of less than 5 acres. Food production methods: All three CSAs in the case studies source from farmers who produce organically but explicitly do not aim for third-party organic certification. The documentation process required for certification is an obstacle for farmers, many of whom are illiterate. To date, certification is mandatory only for organic exports, and the benefits of certification are not perceived to justify the high cost. By giving producers and consumers an opportunity to interact with each other directly, the CSA model enhances transparency, mutual trust and consumer confidence in organic production. 16
In many CSAs, associated NGOs help farmers get organized in groups and implement a Participatory Guarantee System for organic quality assurance. Supply chain: The CSAs in the case studies operate mainly with locally and regionally oriented supply chains, making occasional exceptions for products that cannot be grown in their region. Since CSA initiatives in India are only a few years old, they are still in a process of learning by trial and error and working out the best supply chain model. Logistics and transport infrastructure are among the greatest challenges for CSAs in India. For small initiatives in particular, transport is not efficient because vehicles are not loaded to full capacity. The organizers of the case study CSAs anticipate that this will improve once volumes get scaled up in future. In the case of the Sahaja Aharam consumer cooperative, delivery constitutes up to 15-20% of total costs because organic consumers are scattered across the city. At the same time, a delivery system was found to be more viable than opening up retail outlets in the expanding metropolis of Hyderabad with its high real estate prices. Arena of exchange: The primary objectives of all the initiatives in the case studies include a sharing of risks between farmers and consumers. In a system of backward supply chain integration, the CSA organizers help farmers to pre-plan production before the planting season, either based on the number of subscribed consumers or through estimates of consumer orders that are based on the previous seasons experience. Careful production planning together with farm shares or pre-paid subscriptions minimizes the risk of wastages, maximizes marketability of what the farmers grow, and results in more stable and reliable incomes. Variety and bumper yields are our shared rewards and scarcity and losses, our shared risks. In all situations, an uncertain and variable harvest is the medium through which we learn to respect Nature [sic!] and to live in community. (MOFCA Concept Paper 2011) CSAs avoid the cost of retail infrastructure and have short supply chains without intermediaries other than a facilitating non-profit organization. This ensures that farmers get a higher share of what the consumer pays. In addition to income, the direct marketing relationship saves farmers the troubles and risks associated with negotiating with intermediaries. This is particularly relevant in rural India 17
where market commissioners often have a monopoly in their area, markets are not transparent and farmers are likely to be victims of tempered weighing scales and the like. Transport logistics also become easier for farmers; MOFCA for instance picks up produce directly from the farm. The CSAs in the case studies operate with a cost-based model: The final cost of produce is calculated based on what is considered to be a fair share to the farmer, plus operating costs such as packing, transport and administration. Several CSA organizers stressed in interviews that on the whole, fixed prices work out to the advantage of both consumers and producers. As part of their basic values, the CSAs aim to be socially inclusive, and price levels are often comparable to local market prices while avoiding fluctuations. Dr. Ramanjaneyulu, Director of Centre for Sustainable Agriculture, notes that Sahaja Aharam price levels are significantly lower than in commercial organic shops and supermarkets, and not more than 5-10% higher than the non-organic market prices. This is achieved through various cost saving factors: short supply chains and direct marketing relationships without intermediaries; less costly Participatory Guarantee System; NGO support, for example in the initial pilot phase of marketing; some of the work is backed by NGO employees, and some of the cooperative members work on a voluntary basis. In order to expand the product range, scale up production volumes and invest in infrastructure such as greenhouses and facilities for packing and storage, cooperatives need access to capital. Most small farmers do not have access to loans from banks, commercial loans from the private capital market have high interest rates, and, according to the interviewed NGOs, investors in the agricultural sector are increasingly difficult to find. International donors are not willing to fund small-scale projects that impact only a few dozen farmer families. Some cooperatives have started setting up their own funds for enabling farmers to make necessary investments. GORUS has evolved a system where consumers give small loans to farmers on a personal basis, and they are working on a revolving fund for farmers. Producerconsumer interaction: For the CSAs in the case studies, the marketing system is not just a relationship of buying and selling; it is as much about personal interaction and exchange, and about redefining the farmer-consumer relationship. One of their objectives apart from supplying fresh, 18
local and seasonal organic produce is to give consumers an opportunity to reconnect with producers, agricultural production and food traditions. Unlike in Western countries, none of the CSAs obliges members to contribute a certain number of hours per month as volunteers. Where farm visits are organized, these are conceived more as a leisure activity and learning experience rather than a real contribution towards operations. Compared with consumer cooperatives, consumers in the GORUS model are less involved in the operations because they do not contribute any volunteer work; thus it becomes all the more important to build long-term customer loyalty through personal interactions during the occasional farm visits. Motivations for participation: Henderson (2010) defines the typical members of CSAs broadly as active citizens. In India, this translates into an educated urban middle class background. While some belong to the highest socio-economic strata for example those who can afford to dedicate a large part of their time to working for the cause without monetary compensation their objective is explicitly to make good food affordable, and to counteract the elitism that is often inherent in organic food in India due to its price premium. While in Western countries consumer motivations for purchasing organic food often centre around concerns over food scandals and environmental aspects, consumer research (Garibay and Jyoti 2003; Rao et al. 2006) indicates that in India general health concerns relating to pesticide residues are more prevalent. The urban consumers involved in the CSAs in the case studies support organic agriculture out of both health and environmental concerns. Many of the participants of the case study CSAs share a concern for farmers' livelihood security and political issues surrounding rural development, the Indian agrarian crisis, and broader questions of economic development of the country and its food sector. This indicates that CSA participants in India tend to be more politically aware and committed than average organic food consumers. If, in future, supermarkets in India start providing fresh organic and local produce at competitive prices, in good quality and sufficient variety, they might start competing for the same target groups as CSAs. At 19
the same time, at least some of the members of CSAs in India are explicitly opposed to the supermarket shopping culture and the corporate food system it represents. Constitution of individual and group identities: In accordance to the varying degrees of producer consumer interaction and the nature purchasing commitments, the identities of the involved groups producers, organizers and consumers vary as well. Consumers in the Sahaja Aharam model who are not members of the cooperative are closest to being mere customers, since they pay on delivery and make no long-term commitment. In the case of GORUS, the prepaid system and farm visits result in a slightly stronger consumer engagement, and MOFCA has the highest level of long-term commitment by issuing farm shares for the entire growing season. At the same time, since none of the CSAs in the case studies asks consumers to participate in farm work, the identities of producer and consumer remain distinct. Part of the objective of a CSA can be to redefine those identities, and to question established notions of consumer expectations. For instance, while GORUS members get a chance to order individual products and quantities from a list of seasonally available produce every week, MOFCA supplies a pre-determined mixed basket of whatever vegetables are seasonally available. While the former system requires meticulous production planning, weekly adaptations of the produce list and online order form, and a lot more labour for packing the personalized crates, previous experiments in Pune showed that consumers prefer being able to choose rather than getting a fixed basket 6
6 Kneafsey et al. (2008) explore the interesting notion that consumers may in fact find the pre-determined mixed basket option more convenient, because it saves them the burden of having to make shopping choices while at the same time guaranteeing great variety of produce. The authors point out the difference between the concepts of choice versus variety while customers at a supermarket have on overwhelming product range of choices, the obligation to choose often means that consumers end up buying the same products year round. By way of getting a mixed basket delivered, the variety of food that people eat often ends up being greater, and they tend to try more unknown products such as old, rediscovered vegetable varieties than they would otherwise. . One of MOFCAs objectives is to re-educate consumers about eating locally and seasonally; with the year- round availability of the same variety of vegetables at street stalls and in modern retail, consumers have lost much of this traditional knowledge: We are spoilt for choice. We think only mangoes are seasonal. So, yes, the participating consumers will have to relearn a lot in terms of their eating 20
habits, says Neesha Noronha, one of the team members of MOFCA (quoted in Ansari 2010). By supplying a basket of seasonal vegetables, box delivery schemes give urban dwellers an opportunity to reconnect to natural cycles of agricultural production and at the same time get fresh, nutritious vegetables. Contributions to sustainable development: As the analysis of the seven other fields has demonstrated, the Indian case studies make various contributions to sustainable development. The CSAs we looked at build localized networks of food supply, thus reducing food miles and strengthening the local economy; they reduce ecological footprints by promoting sustainable farming systems, reducing packaging, and cutting food miles; they encourage community building and collective action; and they contribute to building new infrastructures of food provision. The CSAs in the case studies were initiated by NGOs or urban activist groups rather than farmers, because at this stage rural communities in India do not have the resources and capacity to launch a CSA initiative. While in Western countries, farmers and urban consumers tend to have similar educational and cultural backgrounds, the differences between rural and urban India are far more marked. Farmers are often illiterate, may have visited a city only a few times if at all, and have very different food habits and expectations in terms of quality and variety compared to their urban customers. This may inhibit CSA formation to be driven by farmer groups in India. They depend on external actors as facilitators, intermediaries and investors. They also use paid staff instead of or in addition to consumer-member volunteers for packing and delivery. The long-term aim is to build farmer capacities and ultimately enable the CSA initiative to run independently and financially self- sustainably. One of the primary objectives of CSAs in India is to improve the livelihoods of local small and marginal farmers. Conventional agriculture provides poor livelihoods for small and marginal farmers in peri-urban areas, so that non-agricultural income options appear more lucrative. At the same time, most farmers are not sufficiently educated to really be able to make a living in another profession, and they lack the capital for the necessary investments. Initiatives like the CSAs in the case studies 21
give resource-poor farmers a viable alternative to the established system of growing large areas of the same crop and then hoping for good prices at the time of harvest. It enables them to sustain their agriculture-based livelihoods and protects them from having to sell their land, leaving their children without a livelihood basis. In that sense, these activities cannot be measured simply in terms of money, or economic impact, but are a model for initiating broader social change. 5. Conclusion CSA is becoming a global phenomenon. In our paper, we set out to better understand this phenomenon in the context of urban and rural developments in India. We found the frameworks developed by Kneafsey et al. (2008) and Seyfang (2009) appropriate and useful for structuring our analysis of three Indian CSAs. By combining the two frameworks, we compared overlaps and differences of the Indian case studies and CSAs in other parts of the world, and we assessed their contribution to sustainable development in the context of the Indian agriculture sector. While organic food is as yet a marginal niche in the Indian food sector, consumer demand in urban markets is increasing more rapidly than supply. On the political level, awareness is slowly emerging that sustainable agriculture is the way ahead for the sector which has been in a severe crisis for several decades. At the same time, farmers practicing sustainable small scale agriculture still lack adequate market access that allows them to sell their products profitably. This context provides the background for emerging new types of cooperatives and new linkages between rural and urban dwellers. CSA initiatives can provide viable and sustainable marketing channels for these farmers, bridge the demand-supply gap for organic vegetables, and promote sustainable local supply chains. Cooperative structures shift the risk and incentive system of agriculture and marketing, and encourage reconnection, participation and community-building. Localized food networks give consumers an opportunity to better understand the working of their food providing system, develop more healthy and sustainable consumption patterns and reconnect with producers. The frameworks for analyzing CSA initiatives developed by authors in the USA and Europe were found to be suitable for the Indian context. Although the CSA initiatives we examined vary from case 22
to case, they share many of the key characteristics found in other parts of the world. Policies in support of CSA development must take into account the diverse and locally-adapted nature of these initiatives. Support measures have to centre on improving the economic situation of CSAs without forcing them to compromise on their basic principles and independence. CSA is an adaptive model that can make an important contribution to sustainable development both in countries with a highly industrialized food system and in countries like India where smallholder farms and rainfed agriculture dominate the agricultural sector. In developing countries, CSA can be a viable marketing opportunity for small farmers located in the peri-urban fringe of cities, strengthening farmers livelihood security and promoting environmental sustainability while at the same time providing healthy food options for urban consumers. Because healthy, fair and local food is in line with the preferences of the growing Indian middle-classes, CSAs provide a rare opportunity for traditional farmers to participate in the ongoing processes of urban modernization. Interestingly, the role and perceived value of organic certification differs between the Indian context and the context of CSA in Europe and the US. More perhaps than in Western countries, CSAs in India depend on the involvement of an NGO or facilitating body to provide assistance in the form of knowledge, management skills, resources and infrastructure, especially during the start-up phase. An important but often unresolved question is how to develop the capacities of farmers to later on become fully independent from initiating NGOs. This is an important aspect of further research on CSA development in India. The extent to which CSA provide opportunities for consumers to participate, learn and connect with producers differs between our case studies. These differences have to do with the grassroots nature of the initiatives and with the different preferences of CSA consumers. A closer look at the social composition of CSA participants would also help to better understand the phenomenon. Given the growing number of initiatives, it is time to include quantitative methods for the study of the phenomena in order to better compare different CSA types. 23
The dominant agro-industry promotes a highly specialized intensive farming system of in order to maximize economies of scale. For the majority of Indian farmers who are small and marginal farmers and lack access to resources, this model is not accessible. There are no established processes that support their marketing efforts. Dr. Ramanjaneyulu of Centre for Sustainable Agriculture in Hyderabad points out: We need to re-invent all these things. See, buying from few and then selling to many, there's a model available. But buying from many and selling to many that model is not worked out. That's what we are experimenting on. The CSA model can serve as an experimenting ground for solving many of the problems that the Indian agriculture sector and urban food systems in rapidly growing megacities face, and it can provide role models and inspiration for sustainable local food systems of the future. References ANSARI, H., 2010, Soon, a tokri of organic veggies at your doorstep, DNA, August 26, Internet Source: http://www.dnaindia.com/speakup/report_soon-a-tokri-of-organic-veggies-at-your- doorstep_1428775-all [accessed May 16, 2011]. BROWN, C. and MILLER, S., 2008, The Impacts of Local Markets: A Review of Research on Farmers Markets and Community Supported Agriculture (CSA), American Journal of Agricultural Economics 90 (5), 1296-1302. DHARMADHIKARY, S., 2010, Chemical-Free Food: Organic Veggies in my Inbox, Internet Source: http://www.indiatogether.org [accessed June 18, 2010]. GARIBAY, S.V. and JYOTI, K., 2003, Market Opportunities and Challenges for Indian Organic Products, Internet Source: http://orgprints.org/00002684 [accessed January 15, 2009]. GILLAN, T., 2010, Local Solidarity Partnerships between Producers and Consumers: Characteristics and Contributions to Sustainable Development, MSc Dissertation Thesis. Reading: Graduate Institute of International Development and Applied Economics, University of Reading. HENDERSON, E., 2010, The World of Community Supported Agriculture, Keynote for Urgenci Kobe Conference 2010, Community Supported Foods and Farming February 22, 2010, Internet Source: http://www.chelseagreen.com/content/elizabeth-henderson-the-world-of-community-supported- agriculture/print/ [accessed January 25, 2012]. HOLLOWAY, L., KNEAFSEY, M., VENN, L., COX, R., DOWLER, E., and TUOMAINEN, H., 2007, Possible food economies: a methodological framework for exploring food production-consumption relationships, Sociologia Ruralis 47 (1), 1-19. KLOPPENBURG, Jr., LEZBERG, S., DE MASTER, K., STEVENSON, G., and HENDRICKSON, J., 2000, Tasting Food, Tasting Sustainability: Defining the Attributes of an Alternative Food System with Competent, 24
Ordinary People, Human Organization 59 (2) (July 1), 177-186, Internet Source: [accessed November 14, 2009]. KNEAFSEY, M., HOLLOWAY, L., VENN, L., DOWLER, E., COX, R., and TUOMAINEN, H., 2008, Reconnecting Consumers, Producers and Food: Exploring Alternatives, Berg Publishers. LASS, D., Bevis, A., Stevenson, G.W., Hendrickson, J. and Ruhf, K., 2001, Community Supported Agriculture Entering the 21st Century: Results from the 2001 National Survey, Amherst, MA: University of Massachusetts, Internet Source: http://www.cias.wisc.edu/wp- content/uploads/2008/07/csa_survey_01.pdf [accessed February 10, 2012]. VAN LOON, G.; PATIL, S. and HUGAR, L., 2005, Agricultural Sustainability: Strategies for Assessment, New Delhi, Sage Publications Ltd. MCKINSEY, 2008, The Great Indian Bazaar: Organized Retail Comes of Age in India, Mumbai, McKinsey & Company, Internet Source: http://csi.mckinsey.com/~/media/Extranets/Consumer%20Shopper%20Insights/Reports/THE_GREAT _INDIAN_BAZAAR_SECURE.ashx [accessed January 15, 2011]. OSSWALD, N. and MENON, M.K., 2012, forthcoming, Organic Food Markets in Urban Centres of South and West India. Bangalore: International Competence Centre for Organic Agriculture. RAO, K.; SUPE, R.; MENON, M.K. and PARTAP, T., 2006, The Market for Organic Foods in India: Consumer Perceptions and Market Potential. Findings of a Nation Wide Survey, Bangalore, International Competence Centre for Organic Agriculture. SAINATH, P., 2010, Agriculture Crisis: Nearly 2 lakh farm suicides since 1997, India Together, January 25. Internet Source: http://www.indiatogether.org/2010/jan/psa-suicides.htm [accessed January 25, 2010]. SEYFANG, G., 2006, Sustainable Consumption: The New Economics and Local Organic Food, CSERGE Working Paper EDM 6, 12, Internet Source: http://www.uea.ac.uk/env/cserge/pub/wp/edm/edm_2006_12.pdf [accessed June 8, 2010]. SEYFANG, G., 2009, The New Economics of Sustainable Consumption: Seeds of Change, Palgrave. SOIL ASSOCIATION, 2009, A Share in the Harvest: An action manual for community supported agriculture, 2nd ed., Internet Source: http://www.soilassociation.org/LinkClick.aspx?fileticket=gi5uOJ9swiI%3d&tabid=204 [accessed January 15, 2012]
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