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ORGANIC FARMING BY USING BUYBACK METHOD

A Business Development Plan report submitted to SRM Institute of Science and Technology
for the partial fulfilment of the requirements for the degree of
BACHELOR OF BUSINESS ADMINISTRATION

Submitted by
----------------------------
Registration No: RA2151001050012
Under the guidance of
---------------------------------
Assistant Professor
Department of Business Administration
SRM Institute of Science and Technology
Kattankulathur – 603203

COLLEGE OF MANAGEMENT
Department of Business Administration
SRM Institute of Science and Technology
Kattankulathur – 603203
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APRIL-2023
CERTIFICATE
This is to certify that the Business Development Plan work entitled “---------

c----------------------------” submitted by -------------------, Registration No.:

RA1751001010028 for the partial fulfilment of Bachelors of Business Administration, as per

my observation, it was found that the report has not been previously formed or copied from

any other material for the award of any Degree, Diploma, Associate ship, Fellowship or other

similar title. The report represents independent work on the part of the candidate with the

guidance of the supervisor.

Place :

Date :

Signature of Guide:

Signature of HOD with seal

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DECLARATION

I hereby declare that the Business Development Plan report entitled

“------------------------------------ submitted by me for the award of the degree of Bachelor of

Business Administration, College of Management a record of the study done by me and that

the work has not formed the basis for the award of any Degree, Diploma, Associateship,

Fellowship or other similar title.

Place : Chennai

Date:

(Signature of the Candidate)

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ACKNOWLEDGEMENT

I would like to express my heartfelt thanks to Dr.P.Subhashree Natarajan , Dean, College of

Management for giving permission and her valuable support.

I express my sincere thanks to Dr.L.Jayanthi, Program Co-ordinator, Department of Business

Administration, for her valuable suggestion and help to prepare the report.

I wish to take the opportunity to express my sincere gratitude to my guide Dr……………… ,

Assistant Professor, Department of Business Administration and all faculty members for their

valuable guidance in this endeavour.

Thanks to God Almighty, parents and my friends for supporting me in every step to complete

my report successfully.

(Signature of the Candidate)

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TABLE OF CONTENT

CHAPTER NO TITLE PAG

E NO
EXECUTIVE SUMMARY

1.1 Over view.

1
1.2 Key to success.

BUSINESS /COMPANY DESCRIPTION

2.1 Company name .

2.2 Legal form.

2.3 Head office Location.

2.4 Business idea.

2
2.5 Business model.

2.6 Vision

2.7 Mission.

2.8 Company goals.

MANAGEMENT TEAM AND ORGANIZATION

3.1 Organization chart .

3.2 Key management and board of directors.

3 3.3 Responsibilities and competencies of the management team.

3.4 Number of employees.

3.5 Compensation and other employee agreements.

PRODUCTS AND SERVICES

4 4.1 Product descriptions and technical specifications .

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4.2 Planned product launches.

4.3 Competitive advantages and Unique selling propositions.

4.4 Patents, licenses and trademarks and their terms of use.

4.5 Regulations and industrial standards.

MARKET ANALYSIS

5.1 Industry Analysis.

5.2 PEST Analysis.

5.3 SWOT Analysis.

5.4 Competitive Analysis.

5
5.5 Marketing Plan.

5.6 Segmentation, Targeting, Positioning.

5.7 Marketing budget.

OPERATIONAL PLAN
6.1 Manufacturing processes.
6.2 Plant location, layout.
6.3 Inventory.
6.4 Procurement and logistics.
6 6.5 Quality control.
6.6 Credit policy.
FINANCIAL PLAN
7.1 Cash Flow Projections or Statements.
7.2 Profit and Loss Projection.
7 7.3 Projected Balance Sheet.
7.4 Break Even Analysis.
7.5 Contingency Plans.

APPENDICES (SUPPORTING DOCUMENTS etc.)

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BIBLIOGRAPHY
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DESCRIPTION ABOUT CHAPTERS

CHAPTER 1 - EXECUTIVE SUMMARY

1.1 Over view.
The Executive Summary is the most important part of the business plan. Often, it’s the only
part that a prospective investor or lender reads before deciding whether or not to read the rest
of the plan. It should convey the enthusiasm for the business idea and get readers excited
about it, too.
1.2 Key to success.
Organic farming is a method of agriculture that involves the use of natural inputs like
compost, manure, and crop rotation to enhance soil fertility and plant growth. This farming
method is designed to promote ecological balance and biodiversity, as well as reduce the use
of synthetic fertilizers, pesticides, and genetically modified organisms (GMOs).
The buyback method in organic farming involves an agreement between farmers and buyers
where the buyer commits to purchasing a certain quantity of the farmer's produce at a pre-
agreed price. This method provides a secure market for the farmer's products, ensuring a
stable income, and encourages the adoption of organic farming practices.
Through the buyback method, farmers are incentivized to use organic farming techniques,
which are environmentally sustainable and have health benefits. Organic produce is in high
demand due to growing concerns about the impact of conventional farming practices on the
environment and human health.
Overall, organic farming using the buyback method is a win-win situation for farmers and
buyers, providing economic benefits and promoting sustainable agricultural practices.

CHAPTER 2 - BUSINESS /COMPANY DESCRIPTION

2.1 Company name .
Cholan private limited
2.2 Legal form.
1: Apply for DSC
The first step is to obtain the Digital Signature Certificate (DSC) of the proposed Director
which required the following documents:

Address proof
Aadhaar card
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PAN card
Photo
Email Id
Phone number
2: Apply for DIN
Once the Digital Signature Certificate (DSC) is made, the next step is to apply for the
Director Identification Number (DIN) of the proposed Director in SPICe Form along with the
name and the address proof of the director. Form DIR-3 is the option only available for
existing companies. It means with effect from January 2018, the applicant need not file Form
DIR-3 separately. Now DIN can be applied within the SPICe form for up to three directors.

3: Name Approval Application

The next step while incorporating an OPC is to decide on the name of the Company. The
name of the Company will be in the form of “ABC (OPC) Private Limited”.

The name can be approved in the Form SPICe+ 32 application. Only one preferred name
along with the significance of keeping that name can be given in the Form SPICe+ 32
application. If the name gets rejected, another name can be submitted by applying another
Form SPICe+ 32 application.

Once the name is approved by the MCA we move on to the next step.

4: Documents Required
We have to prepare the following documents which are required to be submitted to the ROC:

The Memorandum of Association (MoA) which are the objects to be followed by the
Company or stating the business for which the company is going to be incorporated.
The Articles of the Association (AoA) lays down the by-laws on which the company
will operate.
Since there are only 1 Director and a member, a nominee on behalf of such a person has to be
appointed because in case he becomes incapacitated or dies and cannot perform his duties the
nominee will perform on behalf of the director and take his place. His consent in Form INC –
3 will be taken along with his PAN card and Aadhar Card.
Proof of the Registered office of the proposed Company along with the proof of ownership
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and a NOC from the owner.

Declaration and Consent of the proposed Director of Form INC -9 and DIR – 2 respectively.
A declaration by the professional certifying that all compliances have been made.
5: Filing of Forms With MCA
All these documents will be attached to the SPICe Form, SPICe-MOA and SPICe-AOA
along with the DSC of the Director and the professional, and will be uploaded to the MCA
site for approval. The Pan Number and TAN is generated automatically at the time of
incorporation of the Company. There is no need to file separate applications for obtaining
PAN Number and TAN.
6: Issue of the Certificate of Incorporation
On verification, the Registrar of Companies (ROC) will issue a Certificate of Incorporation
and we can commence our business.
2.3 Head office Location.
Thanjavur (delta capital)
2.4 Business idea.
farm setup: Start by setting up an organic farm that focuses on growing a variety of
crops or specialized produce. Ensure that the farm follows organic farming practices,
avoiding the use of synthetic fertilizers, pesticides, and genetically modified
organisms (GMOs).

cooperative formation: Create a cooperative organization that brings together farmers,

consumers, and other stakeholders who are interested in supporting organic
agriculture. The cooperative should have a clear structure, rules, and governance
system.

contract farming: Enter into agreements with farmers who are willing to grow crops
according to the organic standards set by the cooperative. Provide them with
necessary guidance, training, and support to ensure their produce meets the required
quality standards.
buyback arrangement: Establish a buyback agreement with the farmers, where the
cooperative commits to purchasing their organic produce at a fair price. This buyback
system helps the farmers secure a market for their crops, giving them financial
stability and reducing the risks associated with fluctuating market prices.
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market distribution: Develop a distribution network to supply the organic produce to

various market channels. This could include selling directly to local consumers,
supplying to restaurants and cafes, and partnering with grocery stores, health food
stores, or online platforms that promote organic products.
consumer engagement: Educate and raise awareness among consumers about the
benefits of organic farming and the importance of supporting local, sustainable
agriculture. Emphasize the cooperative's commitment to quality, transparency, and
environmental responsibility.

2.5 Business model.

Identify Potential Buyers: Research and identify potential buyers who are interested in
organic produce. This can include local grocery stores, restaurants, food cooperatives,
farmers markets, or even direct-to-consumer sales.

Establish Partnerships: Approach the potential buyers and negotiate agreements or contracts
for them to purchase your organic produce. These agreements should specify the quantity,
quality standards, and pricing for the produce.

Determine Production Capacity: Assess your farm's production capacity and capabilities.
Consider factors such as available land, resources, and labor. Determine what crops you can
grow sustainably and efficiently.

Plan Crop Production: Based on the agreements with buyers, plan your crop production
accordingly. Determine the crop varieties, planting schedules, and required cultivation
practices to meet the buyers' demands.

Calculate Costs: Calculate your production costs, including land preparation, seeds, organic
fertilizers, labor, irrigation, pest control, and any other necessary expenses. Ensure that your
pricing allows for a reasonable profit margin.

Communicate Requirements: Share the buyers' quality standards and requirements with your
team or farm workers. Ensure everyone understands and follows organic farming practices,
including pest management, weed control, and the use of organic inputs.
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Monitor and Maintain Quality: Implement quality control measures to ensure that your
produce meets the buyers' standards. Regularly inspect crops, apply organic pest control
methods, and ensure proper harvesting and post-harvest handling techniques.

Harvest and Deliver: When the produce is ready, harvest it according to the buyers'
requirements. Sort, grade, and pack the produce carefully to maintain its quality during
transportation.

Sell to Buyers: Deliver the organic produce to your buyers as per the agreed terms. Make sure
to maintain good communication and reliable transportation to fulfill your commitments
consistently.

Evaluate and Improve: Continuously evaluate your business model, including the production
process, costs, and relationships with buyers. Seek feedback from buyers to understand their
satisfaction levels and identify areas for improvement.
2.6 Vision

2.7 Mission.
A mission statement is a brief explanation of your company’s reason for being. It can be as
short as a marketing tagline.
2.8 Company goals.
The main motive to do these activity is to getting back the organic seeds organic food items
healthy and harmless society ,at the same time by making profit Specify the long- and short-
term goals as well as any milestones or benchmarks you will use to measure your progress.
Such goals may be in terms of profit , revenue , growth , market shares , specific customers or
customer groups , products and services , product design , production, capacities and
locations , investments etc.
 Bringing back the organic food
Organic farming is a type of agriculture that relies on ecological
processes, biodiversity, and natural cycles to produce crops and
livestock. It avoids the use of synthetic fertilizers, pesticides,
genetically modified organisms (GMOs), and other artificial additives,
instead favoring natural methods such as crop rotation, composting,
and biological pest control.

Bringing back organic food through organic farming has many potential
benefits. Firstly, it reduces exposure to harmful chemicals that may be
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present in conventional food production. Secondly, it supports

biodiversity and promotes soil health, which can lead to more resilient
and sustainable agricultural systems. Additionally, organic farming can
reduce greenhouse gas emissions, as it typically requires less energy
input than conventional farming methods.

To promote organic farming and increase the availability of organic

food, governments can provide incentives for farmers to adopt organic
practices, such as subsidies or tax breaks. Consumers can also support
organic farming by choosing to purchase organic products whenever
possible, and by advocating for sustainable and organic agriculture
policies. Farmers can also play a role by educating themselves about
organic farming methods and transitioning their operations towards
more sustainable practices.

Overall, bringing back organic food through organic farming can have a
positive impact on both human health and the environment. By
supporting and promoting organic farming, we can move towards a
more sustainable and resilient food system.

 Creating a Harmless society

Creating a harmless society in organic farming involves promoting a
system of agriculture that is sustainable and healthy for both people and
the environment. Organic farming practices avoid the use of synthetic
chemicals and instead rely on natural methods to grow crops and raise
livestock. By promoting organic farming, we can create a society that is
free from the harmful effects of chemicals and pesticides that are often
used in conventional agriculture.

To create a harmless society in organic farming, there are several key

strategies that can be employed. These include:

1. Education: Educating farmers and consumers about the benefits of

organic farming and the risks associated with conventional farming
practices is crucial. By raising awareness, we can encourage more
people to adopt organic farming practices and make informed
choices about the food they eat.
2. Regulation: Governments can regulate the use of harmful chemicals
in agriculture and provide incentives for farmers to adopt organic
practices. This can include subsidies, tax breaks, and other financial
incentives to encourage farmers to transition to organic farming.
3. Research and innovation: Continued research and innovation in
organic farming can lead to the development of new, more efficient
and effective organic farming practices. This can help to increase
yields and reduce the costs associated with organic farming.
4. Community involvement: Building a strong community of farmers
and consumers who are committed to organic farming can help to
create a sense of shared responsibility and encourage more people
to get involved.
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Overall, creating a harmless society in organic farming requires a

collaborative effort between farmers, consumers, and policymakers. By
working together to promote sustainable and healthy farming practices,
we can create a society that is free from the harmful effects of
conventional agriculture and ensure a healthier future for ourselves and
future generations.

 Encouraging small organic farmers

Encouraging small organic farmers is crucial for promoting organic
farming and creating a sustainable food system. Small organic farmers
are often at a disadvantage compared to large-scale conventional farmers
due to a lack of resources, limited access to markets, and the challenges
associated with transitioning to organic farming practices. However,
supporting small organic farmers is important as they play a critical role in
promoting sustainable agriculture, preserving biodiversity, and ensuring
food security.

Here are some strategies for encouraging and supporting small organic
farmers:

1. Financial Support: Small organic farmers often lack the resources

necessary to invest in equipment and infrastructure needed to
transition to organic farming. Governments and non-profit
organizations can provide financial support through grants, low-
interest loans, or subsidies to help small farmers transition to
organic practices.
2. Technical Assistance: Providing technical assistance such as
training, workshops, and mentorship programs can help small
farmers learn about organic farming techniques, marketing, and
business management. Technical assistance can be provided by
non-profit organizations, universities, and government agencies.
3. Market Access: Access to markets is critical for small organic
farmers to sell their produce and earn a living. Governments and
non-profit organizations can help small farmers access markets by
creating farmers’ markets, supporting community-supported
agriculture (CSA) programs, and promoting local food systems.
4. Advocacy: Advocating for policies that support small organic
farmers is critical. Small farmers often lack the resources to
advocate for themselves, so it's important to advocate for policies
that support them, such as fair trade policies, organic standards,
and regulations that support small farmers.

By encouraging and supporting small organic farmers, we can promote

sustainable agriculture, preserve biodiversity, and create a healthier food
system.

 Building a syndicate for organic farmers

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Building a syndicate for organic farmers in organic farming can be

a great way to promote the growth and sustainability of organic
farming practices. Here are some steps to consider when building
a syndicate for organic farmers:

1. Identify the target group: Start by identifying the group of

organic farmers that you want to bring together. Consider
the type of crops they grow, their location, and their level of
experience in organic farming.
2. Define the syndicate's purpose and goals: Clearly define the
purpose of the syndicate and the goals it hopes to achieve.
For example, the syndicate might focus on increasing access
to organic farming resources, promoting sustainable farming
practices, or improving market opportunities for organic
farmers.
3. Develop a membership structure: Establish a membership
structure that is fair and equitable for all members. This may
include membership dues, responsibilities, and benefits.
4. Build a network of support: Establish partnerships and
collaborations with other organizations that support organic
farming. This may include government agencies, nonprofit
organizations, and educational institutions.
5. Create a communication plan: Establish regular
communication channels to keep members informed of
syndicate activities, opportunities, and challenges.
6. Develop marketing strategies: Develop marketing strategies
to promote the benefits of organic farming and the
syndicate's services to potential customers and consumers.
7. Provide training and education: Provide ongoing training and
education opportunities to members to help them stay
informed about best practices in organic farming.

Overall, building a syndicate for organic farmers in organic

farming requires careful planning, communication, and
collaboration to promote the growth and sustainability of organic
farming practices.
Building a syndicate for organic farmers in organic farming can be
a great way to promote the growth and sustainability of organic
farming practices. Here are some steps to consider when building
a syndicate for organic farmers:
1. Identify the target group: Start by identifying the group of
organic farmers that you want to bring together. Consider
the type of crops they grow, their location, and their level of
experience in organic farming.
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2. Define the syndicate's purpose and goals: Clearly define the

purpose of the syndicate and the goals it hopes to achieve.
For example, the syndicate might focus on increasing access
to organic farming resources, promoting sustainable farming
practices, or improving market opportunities for organic
farmers.
3. Develop a membership structure: Establish a membership
structure that is fair and equitable for all members. This may
include membership dues, responsibilities, and benefits.
4. Build a network of support: Establish partnerships and
collaborations with other organizations that support organic
farming. This may include government agencies, nonprofit
organizations, and educational institutions.
5. Create a communication plan: Establish regular
communication channels to keep members informed of
syndicate activities, opportunities, and challenges.
6. Develop marketing strategies: Develop marketing strategies
to promote the benefits of organic farming and the
syndicate's services to potential customers and consumers.
7. Provide training and education: Provide ongoing training and
education opportunities to members to help them stay
informed about best practices in organic farming.

Overall, building a syndicate for organic farmers in organic

farming requires careful planning, communication, and
collaboration to promote the growth and sustainability of organic
farming practices.

 Providing a bigger market for organic products.

Providing a bigger market for organic products can be a challenge, but
there are several strategies that can be employed to help expand the
reach and demand for organic products in organic farming. Here are some
possible steps to consider:

1. Identify target consumers: Start by identifying target consumers

who are most likely to be interested in organic products. This may
include health-conscious individuals, environmentally-conscious
consumers, and those who are willing to pay a premium for high-
quality, ethically-produced products.
2. Increase visibility: Increase the visibility of organic products through
various marketing channels, such as social media, online
marketplaces, and in-store promotions. It is also important to use
clear labeling and packaging that highlights the benefits of organic
products.
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3. Collaborate with retailers: Work with retailers to promote organic

products and make them more visible in stores. Retailers can also
provide valuable feedback on what products are in demand and how
to improve the packaging or presentation of organic products.
4. Develop partnerships: Develop partnerships with other organic
farmers and producers to increase the range of products and
services offered. This can help to diversify the product range and
make it more appealing to a wider range of consumers.
5. Offer educational resources: Educate consumers about the benefits
of organic farming and the advantages of choosing organic
products. This can be done through online resources, in-store
promotions, and community outreach events.
6. Attend trade shows and events: Attend trade shows and events that
cater to the organic farming industry to showcase products and
connect with potential customers and partners.
7. Certify products: Consider certifying products as organic to increase
consumer confidence in the quality and authenticity of the products.
Certification can also help to establish a brand reputation and
differentiate products from competitors.

Overall, expanding the market for organic products in organic farming

requires a multi-faceted approach that focuses on increasing visibility,
building partnerships, educating consumers, and certifying products to
establish a trustworthy brand.

CHAPTER - 3 MANAGEMENT TEAM AND ORGANIZATION

3.1 Organization chart .
Develop and include an organizational chart with your existing team and any new roles you
plan to fill
3.2 Key management and board of directors.
List of proposed key management members and board of directors.
3.3 Responsibilities and competencies of the management team.
List of proposed responsibilities and competencies of the management team.
3.4 Number of employees.
Estimated number of employees to be engaged.
3.5 Compensation and other employee agreements.
Proposed compensation plan and contract entered with employees

CHAPTER - 4 PRODUCTS AND SERVICES

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4.1 Product descriptions and technical specifications .

After determining the essential features and characteristics of your products, you should
precisely describe your products and services with its technical details.
4.2 Planned product launches.
Specify a timeline of planned product launches as well as a reasonable allocation of
marketing costs.
4.3 Competitive advantages and Unique selling propositions.
Organic farming using the buyback method can offer several
competitive advantages and unique selling propositions to
differentiate itself from conventional farming and other organic
farming methods. Here are some potential examples:

1. Guaranteed buyback: Offering a guaranteed buyback of

crops at a fair price can be a unique selling proposition that
helps to attract farmers to the program. This buyback
agreement can provide farmers with a stable and reliable
market for their organic crops, which is often a challenge for
small-scale farmers.
2. Organic certifications: Obtaining organic certifications
such as USDA Organic, EU Organic, or JAS Organic can offer
a competitive advantage for the business as consumers are
increasingly looking for organic products. These
certifications provide assurance to buyers and consumers
that the products meet strict organic farming standards, and
can help to build trust and loyalty.
3. Sustainable farming practices: By using sustainable
farming practices such as crop rotation, cover cropping, and
composting, the business can differentiate itself from
conventional farming methods. These practices not only
produce healthier crops but also promote soil health,
biodiversity, and environmental conservation, which can
appeal to environmentally conscious consumers.
4. Partnership with buyers: Establishing partnerships with
buyers who are committed to promoting sustainable and
ethical practices can be a unique selling proposition for the
business. By working with buyers who share the same
values, the business can leverage their marketing power to
reach more consumers who are looking for organic and
sustainable products.
5. Traceability: By implementing a traceability system that
tracks the production, processing, and distribution of organic
products, the business can provide transparency to buyers
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and consumers. This system can help to build trust and

loyalty by providing information on the origin, quality, and
safety of the products.

Overall, the competitive advantages and unique selling

propositions in organic farming using the buyback method focus
on providing a reliable market for farmers, promoting sustainable
and ethical practices, and meeting the growing demand for
organic and sustainable products. By differentiating itself from
conventional farming and other organic farming methods, the
business can attract farmers, buyers, and consumers who value
these principles.

4.4 Patents, licenses and trademarks and their terms of use.

Details about the holding of patents and trademarks and their period of validity. Have you

protected important technologies and procedures through patents or registered designs?

4.5 Regulations and industrial standards.

Information about the regulations and industrial standards that your business has to follow.
CHAPTER - 5 MARKET ANALYSIS
5.1 Industry Analysis.
The organic farming industry using the buyback method is a growing trend in the agricultural
sector, driven by increasing consumer demand for organic products. The industry is highly
fragmented, but the buyback method provides opportunities for consolidation and growth. It
promotes sustainable agriculture practices, reduces the use of synthetic inputs, and provides
farmers with a stable income. However, the industry faces challenges, including high input
costs, limited access to finance and technology, and unreliable buyers. Addressing these
challenges and ensuring a reliable market for farmers is crucial for the industry's success.
Overall, the organic farming industry by using the buyback method has significant potential
for growth and can improve the livelihoods of small-scale farmers while promoting
sustainable agriculture practices.
Determine the market demand for organic farming products - this involves identifying the
target market for the produce, assessing consumer behavior and preferences, and evaluating
the market size and growth potential.

Analyze the supply of organic farming products - this involves assessing the availability and
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quantity of the produce, identifying the key players in the industry, and evaluating the
competition.

Evaluate pricing trends - this involves assessing the prices of organic farming products in the
market, comparing them with conventional products, and evaluating the factors that influence
pricing.

Assess production costs - this involves identifying the costs involved in producing organic
farming products, including labor, seeds, fertilizers, pesticides, and other inputs.

Evaluate profitability - this involves assessing the profitability of organic farming products by
comparing the revenues earned with the production costs.

Using the buyback method, a company can offer a predetermined price to farmers for their
produce, which can help the farmer to mitigate price fluctuations and secure a market for
their products. The company can also provide inputs and technical assistance to farmers to
ensure that the produce meets the required quality standards.

5.2 PEST Analysis.

 Political: Governments may provide incentives and support for
organic farming through subsidies, policies, and regulations.
However, political instability, trade restrictions, and changes in
government policies can also affect the industry's growth.

Government regulations and policies related to organic farming,

such as subsidies, taxes, and import/export restrictions.

Changes in political leadership and policies can impact the

industry's growth and profitability.

 Economic: The demand for organic products and changing

consumer preferences can impact the industry's growth. Input costs,
such as organic fertilizers, pesticides, and labor, also affect the
profitability of organic farming

Changes in the economy, such as inflation, interest rates, and

unemployment rates, can impact the demand for organic products.

Changes in consumer income and spending patterns can also

impact the industry's growth and profitability.
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 Social: Increasing consumer awareness of the benefits of organic

products and the environmental impact of conventional farming
practices drives the demand for organic products. Changing
consumer preferences and the emergence of new markets also
impact the industry.

Increasing consumer awareness about the health and environmental

benefits of organic products can increase demand.

Changes in consumer preferences, such as a shift towards plant-

based diets, can also impact demand.

 Technological: Advances in technology can improve the efficiency

and productivity of organic farming. However, limited access to
technology and the high cost of equipment can limit the industry's
growth.

Advancements in technology, such as precision farming and

automation, can improve efficiency and reduce production costs.

Technological advancements in food preservation and packaging

can help extend the shelf life of organic products.

5.3 SWOT Analysis.

5.4 Competitive Analysis.

A competitive analysis of organic farming by using the buyback method reveals a growing
number of players in the industry. The buyback method provides opportunities for
consolidation and growth, leading to the emergence of large buyers and cooperatives.
Large buyers, such as retailers and food companies, are increasingly entering into contracts
with multiple farmers, providing a reliable market for organic produce while ensuring a
steady supply for their businesses. Cooperatives enable small-scale farmers to pool their
resources, share knowledge and access finance, and technology to increase their productivity
and profitability.
The industry is highly fragmented, with a large number of small-scale farmers. However, the
buyback method provides opportunities for consolidation, creating economies of scale and
reducing transaction costs. The consolidation can also lead to increased bargaining power and
higher returns for farmers.
The competition in the organic farming industry comes from conventional farming practices
and imported organic products. Conventional farming practices dominate the market due to
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lower input costs and higher yields, making it challenging for organic farmers to compete.
Imported organic products, especially from developing countries with lower labor and
production costs, can also affect the industry's growth.
5.5 Marketing Plan.
The marketing plan for organic farming by using the buyback method includes identifying
target markets, branding and promotion, social media and digital marketing, partnerships and
collaborations, farmer training and support, and product certification. The focus is on
building brand reputation, increasing visibility and accessibility, and building consumer trust.
Promotions can include discounts, coupons, and product bundles to attract customers.
Partnering with retailers, food companies, and restaurants can help increase visibility and
accessibility. Providing training and support to farmers can help improve the quality and
consistency of organic products, and obtaining organic certification can help build consumer
trust in the quality and authenticity of organic products.
1. Identify the target market - this involves determining the consumer demographic that is
most likely to buy organic products and understanding their needs and preferences.
2. Develop a product offering - this involves identifying the types of organic products that
will be produced and sold using the buyback method, such as fruits, vegetables, grains, and
livestock.
3. Set pricing and margins - this involves determining the price that the company will pay for
the produce and setting a margin that allows the farmer to earn a profit.
4. Develop a distribution strategy - this involves determining the channels through which the
organic products will be distributed and sold, such as farmers' markets, grocery stores, or
online platforms.
5. Develop a promotional strategy - this involves developing a marketing campaign that
promotes the benefits of organic products and highlights the advantages of the buyback
method for both farmers and consumers.
6. Build partnerships - this involves building relationships with other businesses or
organizations that can help promote and distribute organic products, such as local chefs or
food cooperatives.
7. Measure and evaluate results - this involves tracking sales, consumer feedback, and other
metrics to evaluate the effectiveness of the marketing plan and make adjustments as needed.
Using the buyback method can provide farmers with a reliable source of income and reduce
the risks associated with fluctuating market prices. By working with a company that offers a
guaranteed buyback agreement, farmers can focus on producing high-quality organic
 23

products without worrying about finding a market for their produce.

G
5.6 Segmentation, Targeting, Positioning.
1. Segmentation: The target market can be segmented based on
demographics, psychographics, and behavior. Demographic
segmentation can include age, income, and geographic location.
Psychographic segmentation can include values, beliefs, and
attitudes towards health and the environment. Behavioral
segmentation can include purchasing behavior, frequency of
purchasing organic products, and brand loyalty.

The first step in developing a marketing strategy is to segment the

market by identifying groups of customers with similar needs or
characteristics. In the case of organic farming using the buyback
method, potential customer segments could include health-
conscious consumers, environmentally-conscious consumers, and
those interested in supporting local agriculture.

2. Targeting: The target market can be identified based on the

segmentation criteria, and the marketing strategies can be tailored
to meet their needs and preferences. The target market can be
health-conscious consumers, environmentally conscious consumers,
and food companies that prioritize sustainability.

Once the market segments have been identified, the next step is to
select the most attractive segment(s) to target. In this case, the
business might choose to target health-conscious consumers who
are willing to pay a premium for high-quality organic produce.

3. Positioning: The organic farming by using the buyback method can

be positioned as a sustainable and environmentally responsible
alternative to conventional farming practices. The focus can be on
the health benefits of organic products, such as being free from
harmful chemicals and pesticides. The brand can also be positioned
as supporting small-scale farmers and rural communities.

Positioning is the process of creating a distinctive image or brand

identity in the minds of customers. In this case, the business might
position itself as a provider of high-quality, locally-sourced organic
produce that is both healthy and environmentally-friendly. The
business could also emphasize its commitment to sustainable
farming practices and its partnership with buyers and distributors to
ensure consistent demand for its products.

Buyback Method: In the buyback method, the business sells its

products directly to buyers, which can help to ensure consistent
demand and a stable source of income. The business might partner
with local grocery stores or restaurants to sell its products, or it
 24

might develop its own e-commerce platform to sell products directly

to consumers.

Overall, by using the buyback method, an organic farming business can

focus on targeting a specific market segment and positioning itself as a
provider of high-quality, locally-sourced organic produce. This approach
can help to create a loyal customer base and ensure consistent demand
for the business's products.

5.7 Marketing budget.

CHAPTER-6 OPERATIONAL PLAN

6.1 Manufacturing processes.
1. Land preparation: The land is prepared by removing weeds,
debris, and rocks. Soil analysis is done to determine the nutrient
requirements and pH levels. Soil amendments such as compost,
manure, or organic fertilizers are added to improve soil fertility.

2. Seed selection: High-quality, non-GMO seeds are selected for

planting. The seeds are either purchased or saved from previous
crops.

3. Planting: The seeds are planted in rows or beds, and proper

spacing is maintained to allow for adequate air circulation, sunlight,
and water.

4. Irrigation: The crops are irrigated regularly to ensure adequate

moisture levels in the soil. Drip irrigation or sprinkler systems are
commonly used.

5. Pest management: Pest control is done through natural methods

such as crop rotation, companion planting, and use of natural
predators. Chemical pesticides and herbicides are not used.
6. Harvesting: The crops are harvested at the right time to ensure
maximum yield and quality. The crops are sorted, cleaned, and
packaged for transport to the buyers.

7. Buyback method: After harvesting, the crops are sold back to the
farmer or a company that has agreed to buy the produce at a pre-
determined price. This provides a guaranteed market for the
farmer's crops, and encourages the farmer to continue using organic
farming practices.
 25

8. Crop planning: The first step in the manufacturing process is to

develop a crop plan that takes into account the growing season,
climate, soil conditions, and customer demand. The business must
also ensure that it adheres to organic farming standards and
certifications, which may require the use of specific types of seeds,
fertilizers, and pest management strategies.

9. Planting and cultivation: Once the crop plan has been developed,
the business will begin planting and cultivating the crops. This may
involve hiring field workers to perform tasks such as tilling the soil,
planting the seeds, and maintaining the crops throughout the
growing season. The business must also follow organic farming
practices, such as using natural fertilizers and avoiding the use of
synthetic pesticides and herbicides.

10. Harvesting and processing: Once the crops are ready for
harvest, the business will need to hire additional workers to help
with the harvesting and processing of the crops. This may involve
sorting, washing, and packaging the crops to ensure that they meet
quality standards and certifications. The business may also need to
invest in equipment such as refrigeration units and packaging
materials to ensure that the crops are preserved and shipped in a
timely manner.

11. Partnering with buyers and distributors: As part of the

buyback method, the business will need to partner with buyers and
distributors to ensure consistent demand for its products. This may
involve developing relationships with local grocery stores,
restaurants, or online retailers. The business will need to negotiate
prices, delivery schedules, and other terms of the partnership to
ensure that it can meet demand while remaining profitable.

12. Sales and marketing: Once the business has established

partnerships with buyers and distributors, it will need to develop a
sales and marketing strategy to promote its products. This may
involve advertising in local media, attending trade shows and
farmers markets, or developing an e-commerce platform to sell
products directly to consumers. The business will need to develop
pricing strategies that take into account the cost of production,
transportation, and other expenses, while remaining competitive
with other organic farming businesses in the market.

Overall, the manufacturing process in organic farming using the buyback

method involves careful planning and management of all aspects of the
business, from crop planning and cultivation to harvesting, processing,
and sales and marketing. By partnering with buyers and distributors, the
 26

business can ensure consistent demand for its products and maintain a
stable source of income.

6.2 Plant location, layout.

1. Plant Location: The plant location should be chosen based on
accessibility to markets, availability of resources such as water and
sunlight, and soil fertility. The location should also be chosen with
consideration for environmental factors such as air and water
quality.

Organic farming businesses often benefit from being located close

to their target market, as this can reduce transportation costs and
ensure that products remain fresh during transit. The business may
also need to consider factors such as climate, soil conditions, and
water availability when selecting a location for its plant.

2. Layout: The layout of the farm should be designed for efficiency

and productivity. The crops should be arranged in a way that
maximizes space and minimizes waste. The layout should also
consider the movement of farm workers, equipment, and vehicles.

The layout of the plant will depend on the size of the operation and
the type of crops grown. For example, crops that require a lot of
space may require larger fields, while crops that are more delicate
may require smaller, more controlled environments such as
greenhouses. The layout should also allow for efficient movement of
workers and equipment, and should minimize the risk of cross-
contamination between different crops.

3. Infrastructure: The farm should have the necessary infrastructure

for operations such as irrigation systems, storage facilities, and
processing facilities. The infrastructure should also be designed to
minimize environmental impact.

The business will need to invest in infrastructure such as storage

facilities, refrigeration units, and packaging equipment to ensure
that crops are preserved and shipped in a timely manner. The
business may also need to invest in transportation equipment such
as trucks or vans to deliver products to buyers and distributors.

4. Maintenance: The farm should be regularly maintained to ensure

that the crops are healthy and productive. This includes regular
watering, fertilizing, and pest control.

5. Labour: Organic farming businesses often require a significant

amount of manual labour, and the business will need to ensure that
it has access to a reliable source of workers. This may involve hiring
 27

permanent staff or seasonal workers, and the business will need to

comply with labor laws and regulations.

Overall, the location and layout of the plant in organic farming using the
buyback method should be designed to maximize efficiency, minimize
costs, and ensure that crops are grown, harvested, and processed in a
way that meets organic farming standards and certifications. By investing
in infrastructure and labor, the business can ensure that it can meet
demand from buyers and distributors, while remaining profitable.

6.3 Inventory.
Estimate the inventory required to be prepared for you planned turnovers. The inventory
planning depends on the length of the manufacturing process and can be expressed as the
turnover ratio (e.g. the inventory is turned over four times a year) or production cycle. Did
you plan the inventory depending on the sales estimates?
6.4 Procurement and logistics.
1. Procurement: The procurement of seeds, fertilizers, and other
inputs should be carefully managed to ensure that they are organic
and comply with certification standards. These inputs should be
sourced from reputable suppliers who can provide documentation
and proof of organic certification.

The business will need to ensure that it has access to the necessary
inputs such as seeds, fertilizers, and pest management supplies. To
meet organic farming standards and certifications, the business may
need to source specific types of inputs, such as natural or organic
fertilizers, and avoid synthetic pesticides and herbicides.

2. Harvesting: The harvesting of crops should be carefully timed to

ensure maximum yield and quality. Once harvested, the crops
should be immediately transported to storage or processing
facilities to prevent spoilage.

3. Storage and transportation: Proper storage facilities are

essential for maintaining the quality of organic crops. The storage
facilities should be well-ventilated, temperature-controlled, and
protected from pests and other contaminants.

Transportation of organic crops should be carefully managed to

ensure that they are not exposed to contamination.
Transport vehicles should be thoroughly cleaned and sanitized
before and after use.
 28

Once crops have been harvested, they will need to be stored and
transported to processing facilities or buyers and distributors. The
business will need to invest in storage facilities such as refrigeration
units or warehouses to ensure that crops are preserved and remain
fresh during transit. The business may also need to invest in
transportation equipment such as trucks or vans to deliver products
to buyers and distributors.

4. Distribution: Distribution of organic crops to markets and buyers

should be carefully managed to ensure that the quality is
maintained. Crops should be packaged and labeled correctly, and
delivery should be prompt and reliable.

The business will need to establish partnerships with buyers and

distributors to ensure consistent demand for its products. This may
involve negotiating prices, delivery schedules, and other terms of
the partnership to ensure that the business can meet demand while
remaining profitable. The business may also need to develop a sales
and marketing strategy to promote its products and reach new
customers.

5. Quality control: To ensure that crops meet organic farming

standards and certifications, the business will need to implement quality
control measures throughout the procurement and logistics
process. This may involve testing inputs such as soil and water to ensure
that they meet organic farming standards, as well as testing crops for
quality and consistency.

6.5 Quality control.

1. Compliance: The organic farm must comply with certification
standards set by regulatory bodies. The farm must maintain records
of all inputs used and follow approved organic farming practices.
2. Inspection: The farm must undergo regular inspections by
regulatory bodies or certification agencies to ensure compliance
with organic farming standards. The inspection process includes
review of records and on-site inspection of the farm.

3. Testing: Organic crops should undergo testing for contaminants

such as pesticides, heavy metals, and bacteria to ensure that they
meet regulatory standards.

4. Packaging and labelling: The packaging and labelling of organic

crops should be accurate and comply with regulatory standards.
Labels should include certification logos and accurate information
about the contents of the package.
 29

5. Traceability: The farm must maintain records of all inputs used,

including seed sources and suppliers. This allows for traceability of
the product from farm to market.

6. Inputs: Organic farming relies on natural inputs such as compost

and manure, and avoids the use of synthetic fertilizers, pesticides,
and herbicides. To ensure that inputs meet organic farming
standards, the business may need to test soil and water quality, as
well as the composition of inputs themselves.

7. Pest and disease management: Organic farming uses integrated

pest management strategies to control pests and diseases, which
may include the use of natural predators or companion planting. To
ensure that crops are healthy and free from pests and diseases, the
business may need to implement regular monitoring and scouting,
as well as use natural or organic treatments.

8. Harvesting: The timing and method of harvesting can impact the

quality of crops. To ensure that crops are harvested at the right time
and in the right way, the business may need to implement
standardized procedures and train workers accordingly. For
example, crops may need to be harvested by hand to avoid
damage, or specific tools may need to be used to ensure that crops
are not contaminated.

9. Processing: Once crops have been harvested, they may need to be

processed before they are sold. Processing can include washing,
grading, and packaging. To ensure that processed crops meet
organic farming standards, the business may need to implement
standardized procedures and monitor the quality of the processed
crops.

10. Certification: Organic farming certifications are typically

issued by third-party organizations, and the business will need to
comply with the requirements of these certifications to sell its
products as organic. This may involve regular inspections,
documentation of inputs and practices, and other requirements.

Overall, quality control in organic farming using the buyback method

involves careful monitoring and management of all aspects of the
business, from input selection to processing and certification. By investing
in quality control, the business can ensure that its crops meet the
standards required by buyers and consumers, and can establish a
reputation for high-quality products.
 30

6.6 Credit policy.

How will you accept payments from customers? Will you provide a credit line? What will be
your credit policy?

CHAPTER- 7 FINANCIAL PLAN

7.1 Cash Flow Projections or Statements.
The cash flow statement tracks how much cash your business has coming in and out of it at
any given time. If you currently don't have any cash flow statements to show, you need to
provide a cash flow projection. A cash flow projection helps you budget for upcoming
expenses so you don't run out of money. Develop a cash flow projection for the following
items:
● Inventory
● Rent
● Payroll
● Marketing expenses
● Customer payments
7.2 Profit and Loss Projection.
A profit and loss (P&L) statement compares the total revenue for a business against its debt
and expenses. Essentially, all of the company's expenses are subtracted from the income.
Other names for a P&L statement are "income statement," "earnings statement," "revenue
statement," "operating statement, "statement of operations" and "statement of financial
performance.”
7.3 Projected Balance Sheet.
A balance sheet offers a way to scrutinize your business and outline its worth. A balance
sheet is different from a measure of profit and loss. It's a list of assets and liabilities. Any
good balance sheet includes these basics:
● What the business owns or expects to own (real estate, vehicles, office equipment, etc.)
● Revenue you expect to take in (accounts receivable)
● Expenses you expect to pay out (accounts payable)
7.4 Break Even Analysis.
Break even (B/E) analysis is a simple, but very effective financial feasibility test. B/E is used
to find the amount of sales necessary to pay all fixed costs (and have zero income.) In your
business plan, it represents a minimum acceptable performance.
7.5 Contingency Plans.
 31

1. Identify potential risks: Risks can include crop failure, changes in

market demand or prices, natural disasters, and regulatory changes.
It's important to identify and prioritize potential risks that could
impact the success of the organic farm.

2. Plan for alternative revenue sources: If a risk event occurs,

alternative sources of revenue could be needed to maintain cash
flow. For example, the farm could diversify its crops or consider
offering farm tours or agritourism experiences.

3. Develop an emergency response plan: If a natural disaster

occurs, an emergency response plan should be developed to ensure
the safety of workers and to minimize damage to the farm.

4. Consider insurance options: Insurance can provide protection

against certain risks such as crop failure or natural disasters. The
farm should explore insurance options to determine what coverage
is available and appropriate.

5. Review and update the contingency plan regularly: As the

farm evolves and external factors change, the contingency plan
should be reviewed and updated regularly to ensure that it remains
relevant and effective.

6. Crop diversification: By growing a variety of crops, the business can reduce its
reliance on any single crop and minimize the impact of crop failures. This can
also help the business to meet the demands of buyers who may be interested
in a range of organic products.

7. Risk assessment: The business should conduct regular risk assessments to

identify potential hazards and develop plans to address them. This may
involve identifying potential weather events, pests, or disease outbreaks, and
developing plans to mitigate the impact of these events on the business.

8. Insurance: The business may need to invest in insurance policies to protect

against crop failures or other unexpected events. This may include crop
insurance or general liability insurance.

9. Production planning: By carefully planning production schedules, the business

can ensure that it has sufficient crops to meet demand, even in the event of
unexpected events. This may involve adjusting planting schedules or
investing in additional inputs to increase crop yields.

10. Partnerships: The business may need to establish partnerships with other
farmers or suppliers to ensure that it can meet demand even in the event of
unexpected events. By working with other farmers, the business can diversify
its sources of inputs and ensure that it has access to a range of organic
products.

Overall, contingency plans in organic farming using the buyback method involve
careful planning and management of all aspects of the business, from production to
 32

sales and distribution. By investing in contingency planning, the business can

minimize the impact of unexpected events and establish a stable source of income
through its partnerships with buyers and distributors.

CHAPTER- 8 APPENDICES (SUPPORTING DOCUMENTS etc.)

Attach any supporting documents that are relevant to each section of your business plan.
These are some items business owners include in their appendices:
 Agreements
 Intellectual property (trademarks, licenses, patents, etc.)
 Resumes of owners and key employees
 Insurance policies
 Advertising/marketing materials
 Blueprints/plans
 List of equipment
 Market research studies
 Supporting financial documents
 List of assets that can be used as collateral
 List of abbreviations
 List of figures
 List of tables

CHAPTER- 9 BIBLIOGRAPHY
The best way to add credibility to your business plan is to support the forecasts and ideas
presented with data provided by credible sources like authoritative books, industry leads, and
government and trade publications.
Once you’ve backed up your work with these credible sources, give credit where credit is
due.

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