When it comes to CHANGE in the agro sector of non-developed economies, I believe we should follow those three principles:
Change ENGINE – agro-business models.
Change INDICATOR - farmers’ income and profit per hectare.
Change RESULT – relative improvement in economic, social, and health (including that of the environment) aspects.
You can see that Dream Valley’s Vision, Mission, and Actions are in line and frame the above principles -
“To improve farmers’ livelihood by increasing their income per hectare, from quality produce free of bio and chemical hazards, grown in a safe, eco-friendly environment, to enable consumers to enjoy better and healthier food and life.”
To help farmers and investors maximize their ROI, we need to focus on the critical Change indicator - Farmers’ income per hectare.
We do that by choosing the most appropriate crop to maximize the value of the farmers' income per hectare.
But how do we define “the most appropriate crop to maximize ROI per hectare,” and how do we know that we found it?
A word of cautious.
Endless multi-million/billions $ projects have failed in the non-developed economies due to miscalculations, misunderstanding, and arrogance regarding the underlying fundamental reasons that created "The agricultural gap." Hence, solutions suggested and applied are inadequate and fail to achieve their goals.
The considerations presented hereon are part of a larger scheme that should be applied to bring about the long-needed change.
It is imperative to understand that each project should be analyzed separately and then tailor-made with a dedicated solution according to its special and unique criteria.
CHOOSING A CROP
In the past, farmers chose to grow one crop over another based on how well it will help their family not to starve.
However, now farmers are small businesses with a business target to maximize income, so they fulfill their business goal of becoming prosperous and being able to buy whatever food, goods, education, and other services they wish.
As stated above, agriculture is a business, not a charity. Farmers grow whichever crop would increase their revenue and profit per hectare.
However, most farmers in non-developed economies don't choose the crop they grow based on business analysis. Instead, they prefer "the safety" of growing what everybody else (e.g., neighbors) grows or what is easier to deal with and market and mainly poses a lower risk.
Not surprisingly, they get the same business results as their poor neighbors, who remain poor.
Can we break that vicious “poverty cycle?”
Yes, we can do so by using a methodical business-oriented process involving answering key questions.
Here are the principal data and questions we need to provide an answer to take the agro sector transformation process from a state of dream to reality.
(1) Suitability/Crop - list the crops suitable for growing in your region/country.
(2) Baseline – describe the current income per crop and hectare (Ha) of those crops.
(3) Future – describe your desired state of income per hectare.
The essential goal is to ensure that the future income will take farmers out of poverty and bring them into the freedom of financial prosperity life.
(4) Maximum Income (MI) - per crop, write the income per hectare of the best farmers in the world.
(5) Baseline percent (%) from MI.
(6) Maximum Income Increase (MII) – equal MI minus Baseline.
(7) Maximum Income Increase with Caution factor (MII-CF) – equal MPII minus 50%.
(8) Actions – What actions do we need to take to get from the “Baseline” to the “MII-CF” stage?
To ensure we don’t enter a small and limited market, we will add a column where we document -
(9) Volume – current global market per crop (tons).
We will choose to grow the crop/s with the greatest MII-CF and high global market potential.See the Example below.
The steps above represent a partial process, which doesn’t include additional elements, such as logistics, marketing, access to technologies, services, know-how, etc., which we should consider. Unfortunately, even that minimum is not done in most countries at the moment.
When you enter a Dream Valley program, all the above and much more are taken care of by the program methodology.
Dream Valley takes care of doing this analysis as deeply as needed. Then, we act based on what is required to make the technologies, services, and experts available. Last, we take care of the brand and marketing of the product/s.