What do we mean by Farmer Income Uplift?
There are a range of ways to look at the effectiveness of a business model on farmers.
In this example, we look into the impact of different models on average farmer incomes.
That we analyze by looking at ~100 business models.
But let's first look at how do we get to these numbers...
Our business models on service delivery consider two groups of farmers, and we use modelled income data to understand their effectiveness in improving farmer livelihoods.
We assume that baseline farmers do not receive goods and services from the business whose model we analyze.
Next, we look at the group of farmers receiving goods and services and which can impact their income - among other outcomes.
Let's compare the income from focus crop between farmers receiving services and baseline farmers.
Modeled income from focus crop for baseline farmers is $1000, on average.
Income for farmers receiving services is $1500
Directly comparing $1500 and $1000 of farmer income we get to % of net income change from focus crop per farmer.
Business models for some companies manage to achieve much high farmer income uplift than 50%.
Others may have a negligible impact on farmer incomes.
However, there are many factors/drivers that may have impact on effectiveness of business models for service delivery.
Our main analytical aim is to identify links between drivers and farmer income uplift, as well as the other outcomes that we look at in this learning event - cost recovery and cost to serve.
Let's look at the primary markets driver, where we can compare business models for operators targeting intercontinental export, and operators targeting national/regional markets.
We see that business models with national/regional primary markets have a higher percentage of farmer income uplift, when directly compared to businesses oriented towards intercontinental export.
We think that this raises many interesting points to discuss during these 2 days!
Want to know more? Any issues you see with this? Any stories you would like to share with us?
Find us in the Annual Learning Event, or reach out to us at: