Description
The farmer producer company (FPC) Sahyadri Farmer Producer Company Ltd. (Sahyadri Farms) commenced with a mission of safeguarding fair compensation to the small landholding farmers of India in exchange for their produce and hard labour. Sahyadri Farms was a market leader in grape exports, especially to Europe, but when export freight charges shot up dramatically due to the unprecedented COVID-19 pandemic in 2020, the company was forced to enter into the domestic market to survive. The company’s domestic business, Sahyadri Supply Chain Company Ltd., had very high operating costs compared to those of local intermediaries, who operated without the same professionals, standardized logistics, or software. The company was rigorously partnering with young innovators to incorporate technologies like blockchain into the agricultural sector, and it needed a new business model. However, as a company in a low-profitability sector with jobs that were not lucrative and were situated in remote locations, it faced challenges in attracting and retaining the young talent it needed to support the growth of an increasingly complex business in the domestic market.
Learning Objective
This case is suitable for MBA students, operations and supply chain management practitioners, strategy and human resources or talent management consultants, financial business analysts, and other professionals. This case can also be used to introduce managing an agriculture (farming) supply chain and talent retention strategies.The case encourages students to explore the concept of farmer producer companies, the application of Industry 4.0 technologies such as blockchain in the agricultural sector, and talent management concepts such as employer branding and employee value proposition. After working through the case and assignment questions, students will be able to do the following:Describe the rise of farmer producer companies and their operating model.Explain the supply chain complexity of perishable commodities in an agricultural sector.Perform a business break-even analysis and a scenario/impact analysis.Identify fundamental drivers for blockchain implementation and a potential new business model.Explain the importance of building a strong brand value and talent retention strategies in a nonlucrative agricultural sector.