PRAJIV FARM SOLUTIONS: FODDER VALUE-CHAIN INTERVENTIONS
FOR PROFITABILITY CASE STUDY SOLUTION
e
pl
m
Sa
SYNOPSIS
It was June 2023, when Dr. Himanshu Awasthi, founder of Prajiv Farm Solutions, considered expanding
his business by addressing the challenges in the agricultural sector, particularly fodder production.
n
Recognizing the issues faced by Indian farmers—low productivity, lack of technical knowledge, and
tio
reliance on monsoons—he had decided to specialize in cultivating green fodder crops for livestock feed.
He understood that fodder crops improved soil fertility, reduced soil erosion, and diversified income
streams. Starting in 2016, Prajiv Farm Solutions cultivated hybrid fodder crops including sorghum,
lu
berseem, and Napier grass on its 24-acre farm. Six years later, it was time to scale up. As a low-value, high-
volume crop, the challenges differed for fodder cultivation. Delivery of green fodder was also a time-bound
activity, and the company had found it challenging to reach distant markets. Awasthi wondered what the
So
most suitable model would be for scaling up. Could he convince other farmers to take up fodder as a
business? How could he reach more distant markets? Would a hub and spoke model be suitable? Awasthi
also wondered whether forming farmer–producer organizations was a viable solution to address scalability.
He had to consider the strengths and weaknesses of each option before deciding on the most feasible.
OBJECTIVES
• understand fodder’s demand–supply gap in India;
• explore the growth potential of fodder crops in the Indian agricultural sector;
• analyze the profitability of fodder crops compared to other major cereal crops; and
• evaluate the value chain of green fodder.
The Case Solution Starts From page 5
, e
pl
m
Sa
n
tio
lu
ASSIGNMENT QUESTIONS
1. Understand the demand and supply gap for fodder in India.
So
2. Analyze the profitability of fodder crops compared to major cereal crops.
3. Evaluate the value chain for green fodder using Porter’s value-chain framework.
4. Prepare a plan for the expansion of Prajiv Farm Solutions.
The Case Solution Starts From page 5
,ANALYSIS
1. Understand the demand and supply gap for fodder in India.
Factors like fragmented land, overdependence on the monsoon, and a monoculture system make Indian
agriculture less profitable. Going for a mixed-farming approach and including several allied activities like
e
dairy and poultry farming will help farmers diversify their business, reduce risk, and increase their income.
pl
In a country like India, where over 85 per cent of farmers are small, and different allied activities of
agriculture like dairy, pig farming, and fishery becomes essential for supporting farmers and making
m
agriculture sustainable.
Realizing the importance of allied activities in supporting farmers’ income, Operation Flood was launched
Sa
by entrepreneur in the 1970s. This initiative led to India becoming self-sustaining in milk production.
n
tio
lu
So
The Case Solution Starts From page 5
, EXHIBIT -1: FINANCIAL CALCULATIONS FOR FODDER CROPS (₹ PER ACRE)
No. Item Sorghum Berseem
1. Cost of cultivation 12,000 10,000
2. Processing and value addition 96,000 48,000
3. Transportation cost 24,000 24,000
4. Total production cost per acre (1) + (2) + (3) 132,000 82,000
5.
e
pl
m
EXHIBIT -2: VALUE-CHAIN FRAMEWORK
Sa
n
tio
lu
So
The Case Solution Starts From page 5
FOR PROFITABILITY CASE STUDY SOLUTION
e
pl
m
Sa
SYNOPSIS
It was June 2023, when Dr. Himanshu Awasthi, founder of Prajiv Farm Solutions, considered expanding
his business by addressing the challenges in the agricultural sector, particularly fodder production.
n
Recognizing the issues faced by Indian farmers—low productivity, lack of technical knowledge, and
tio
reliance on monsoons—he had decided to specialize in cultivating green fodder crops for livestock feed.
He understood that fodder crops improved soil fertility, reduced soil erosion, and diversified income
streams. Starting in 2016, Prajiv Farm Solutions cultivated hybrid fodder crops including sorghum,
lu
berseem, and Napier grass on its 24-acre farm. Six years later, it was time to scale up. As a low-value, high-
volume crop, the challenges differed for fodder cultivation. Delivery of green fodder was also a time-bound
activity, and the company had found it challenging to reach distant markets. Awasthi wondered what the
So
most suitable model would be for scaling up. Could he convince other farmers to take up fodder as a
business? How could he reach more distant markets? Would a hub and spoke model be suitable? Awasthi
also wondered whether forming farmer–producer organizations was a viable solution to address scalability.
He had to consider the strengths and weaknesses of each option before deciding on the most feasible.
OBJECTIVES
• understand fodder’s demand–supply gap in India;
• explore the growth potential of fodder crops in the Indian agricultural sector;
• analyze the profitability of fodder crops compared to other major cereal crops; and
• evaluate the value chain of green fodder.
The Case Solution Starts From page 5
, e
pl
m
Sa
n
tio
lu
ASSIGNMENT QUESTIONS
1. Understand the demand and supply gap for fodder in India.
So
2. Analyze the profitability of fodder crops compared to major cereal crops.
3. Evaluate the value chain for green fodder using Porter’s value-chain framework.
4. Prepare a plan for the expansion of Prajiv Farm Solutions.
The Case Solution Starts From page 5
,ANALYSIS
1. Understand the demand and supply gap for fodder in India.
Factors like fragmented land, overdependence on the monsoon, and a monoculture system make Indian
agriculture less profitable. Going for a mixed-farming approach and including several allied activities like
e
dairy and poultry farming will help farmers diversify their business, reduce risk, and increase their income.
pl
In a country like India, where over 85 per cent of farmers are small, and different allied activities of
agriculture like dairy, pig farming, and fishery becomes essential for supporting farmers and making
m
agriculture sustainable.
Realizing the importance of allied activities in supporting farmers’ income, Operation Flood was launched
Sa
by entrepreneur in the 1970s. This initiative led to India becoming self-sustaining in milk production.
n
tio
lu
So
The Case Solution Starts From page 5
, EXHIBIT -1: FINANCIAL CALCULATIONS FOR FODDER CROPS (₹ PER ACRE)
No. Item Sorghum Berseem
1. Cost of cultivation 12,000 10,000
2. Processing and value addition 96,000 48,000
3. Transportation cost 24,000 24,000
4. Total production cost per acre (1) + (2) + (3) 132,000 82,000
5.
e
pl
m
EXHIBIT -2: VALUE-CHAIN FRAMEWORK
Sa
n
tio
lu
So
The Case Solution Starts From page 5
