BIF interviews Makarand Sorte, Director of Cropserve Zambia Limited
BIF interviewed Makarand Sorte, Managing Director of Cropserve Zambia Limited. We found out why Cropserve has chosen to target small-scale farmers as its main market for agro-chemicals, and what strategies they are using to reach them.
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Tell us a little about your work and the inclusive business initiative that Cropserve is implementing?
I am Makarand Sorte, the director for Cropserve Ltd. Zambia, which is a holding company for United Phospohrus Limited, one of the largest manufactures of agro-chemicals in the world. We are now directing ourselves more into the small scale sector. While running through some of the strategies BIF came into the picture, with a project to develop these agro-dealers into good entrepreneurs, and into good businessmen. BIF has given a good project to us, in which they will be helping us out to set up an agro-dealers’ chain with which we can reach the small scale sector very effectively; because for us individually, to reach them is a bit challenging, and this sector of agro-dealers is really going to help us reach the small scale farmers. Nutri-aid will help Cropserve and BIF in selecting these agro-dealers. And once they are selected, I think we will be supporting them by supplying quality chemicals, where these products can reach the small scale farmers at a reasonable price.
What are the main advantages for your company of selling your products to smallholder farmers, rather than commercial farmers?
When we are talking about small scale farmers, the one good thing about that sector which I like is the brand loyalty. When you are dealing with small scale sectors, people are very brand loyal. If they want to use it, they like it, they will be loyal to it. Secondly, its the cash business. We observed that most of the time, maybe through the nature of the business, what agriculture is, they face problems with paying us off. And if they don’t pay us then they have the problem, and we have the suppliers. When you are dealing with small scale sectors it’s all cash business.
How are you currently reaching the smallholder segment?
Currently we have a sector of our own Unimart shops, at six locations, and due to some of the limitations for setting up our own outlets, we also have to develop an network of agents and some of the agro-leaders. These agents come from a group of farmers, and the agent is among one of them who is a good farmer, who has done good work. He becomes the agent and the one who supplies.
Tell us a bit about your expansion plans. What kind of strategy will help you reach smallholder farmers at a larger scale?
In terms of expansion, we have plans for setting up our own Unimart outlets. We are targeting two places, which are still in pipeline. This year through BIF, we are targeting to develop this agro-dealer’s chain. It will effectively be in a chain, with us and the small scale sector. Because these agro dealers are going to be at all the small rural places where we will be working with them to reach the small scale sector.
What are your recommendations to other businesses wishing to reach low income, rural consumers?
You have to understand the market sector. When we are talking about small scale, you have to understand their needs and their demands and cater accordingly. For example, if we talk of commercial farmers the needs, the products, it is large, like 5kg,5 litres, 10 litres, but if we talk about small scale , its all small pack sizes 100 mls, 250 mls, so these people are comfortable in these pack sizes.
And also we have to make sure that we work hard on the ground with them, to understand their product with them, because once they understand your product, once they like it, they will stick with it. So I think, what I would say is, work hard on the ground and reach them.
