Role of Modern Technology and Entrepreneurship in Rural Industrial Growth and Employment Generation: Some Case Studies

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Role of Modern Technology and Entrepreneurship in
Rural Industrial Growth and Employment
Generation Some Case Studies

• V. R. Reddy, J. K. Fisher, and E. J. Warnock
• Asian Productivity Organization Conference
• April 26-May 2, 2005
• Hyderabad, India

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Agriculture in U.S. Economy

• 12 of the 11 trillion U.S. gross domestic
  product
• 17 of employed
• 8 of U.S. exports in 2001
• lt2 U.S. workforce on farms

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Agriculture Research and Productivity

• Worldwide, advances in Agriculture has led to
  affordable food and fiber for most of the
  developed world.
• Research has led to Higher yields, better
  breeding practices, more effective fertilizer and
  pesticides, and improved farm management
  practices.

www.ers.usda.gov/Briefing/AgResearch/Gallery/produ
ctivity.htm
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Agriculture Research and Productivity

• Future
• Sustainable Agriculture
• Organic farming
• Niche farming
• Direct marketing
• Biobased fuels
• Precision Agriculture/Site specific optimization
• Remote Sensing
• Use of computers and GPS in farming

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Challenges faced during economic development in
rural areas

• Financing
• Marketing
• Relevant timely information
• Production of new products
• Use of natural resources and protection of
  environment
• Development and Integration of new technology
  into old practices
• Lack of institutional support

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Methods to establish economic development in
Rural Areas

• Many different techniques to establish and
  promote economic development
• Combine resources
• Coordinate supply and demand
• Converting Waste material to marketable
  products
• Institutional Support- (Government, NGOs)
• Secondary refinement of products adds value
• Direct marketing

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Case Studies Cooperatives
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Cooperatives

• Cooperatives have helped in the success of
  American Agriculture by enabling farmers to
  become more group-suffient and less reliant on
  government or other organizations. An indication
  of their success is evident by the number of
  Coops in operation today.
• 1995 USDAs Cooperative Research Services survey
  of farmers cooperatives reported 4,006 coops in
  operation in the United States
• 2074 marketing agricultural products (cotton,
  dairy products, etc.)
• 1458 handled farm production supplies (Feed,
  Fertilizer etc.)
• 474 provided services (electricity,
  telecommunications)

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Virginia Poultry Growers Cooperative USA

• Problem Faced
• Financing needed for the purchase of the local
  turkey processing plant that was closing

• Economic impact If plant was to close loss
  of
• 200 million to local economy
• 1,300 workers to lose jobs
• 38 million lost wages
• 200 farms faced bankruptcy

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Virginia Poultry Growers Cooperative
U.S.A.(Cont.)

• Solution
• Formed a cooperative
• Pooled funds
• Sought Government and private funds

• Future
• Deboning operation
• Producing a year round product of Deli meats
  adds Financial stability to Coop

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Southwest Georgia Escapes Cooperative U.S.A.

• Problem Faced
• In Georgia agriculture income dropped from 1.94
  billion in 1998 to 1.7 billion in 2002, a 12.37
  decline in 5 years
• Agriculture income must be supplemented

• Solution
• Formed a cooperative
• Pooled funds for marketing
• Sought government help to
  
  aid marketing for
  Agri-tourism

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Southwest Georgia Escapes Cooperative
U.S.A.(Cont.)

• Added benefits
• Farmers are able to keep seasonal workers
  employed full time as guides
• No adverse environmental impact
• Brings money into an economically depressed area

Economic impact One farm has already had
2,500 visitors Technology Internet marketing
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Blue Sun Producers Cooperative U.S.A.

• Problem Faced
• The company producing the biodeisil needed a
  stable source of raw oil
• Market fluctuations
• Solution
• Formed a cooperative of farmers to grow rapeseed
  and supply raw oil
• Received government grants to start the coop
  company
• Economic impact
• Farmers have a sure buyer and stable price
• Producer has a stable price and source of raw oil

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Blue Sun Producers Cooperative U.S.A. (Cont.)

• Future
• Seed crusher
• All raw oil production will be done at Blue Suns
  Alamosa Plant
• Technology
• Biobased fuel production
• Added Benefits
• Biodiesil burns cleaner, beneficial for
  environment
• Plant will employ people
• Farmers have a sure market and price
• Lessens U.S.s dependence on foreign oil

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Agbanga Karite-African owned Wholesaler of
Refined Shea Butter Africa

• Problem Faced
• No Market in Africa
• No finances to start businesses
• Solution
• Direct internet marketing established
• Obtained financing from many different
• organizations

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Agbanga Karite-African owned Wholesaler of
Refined Shea Butter Africa(Cont.)

• Economic impact
• A higher percentage of profit goes to the women
  when they market directly to consumers
• Added Benefits
• Increase employment of women
• Non timber agroforestry system
• Women have higher economic status in the
  community

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When not working together nor focused on common
objectives, various efforts yield small
improvements, but significant improvement is not
realized.
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Recipe for Success
When people work together and pursue common
objectives,small improvements yield significant
improvement.
Combined effort yields significant improvement
Each effort yields a small improvement
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Technologies
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Melonman Crop Simulation model for the
muskmelon U.S.A.

• Problem Faced
• Melon farmers need to schedule
• Transportation of workers for the harvest
• Schedule equipment for transportation
• Schedule marketing of produce

• Solution
• Produced a Discussion Support System Consisting
  of
• -Computer Model
• -Predicts harvest ahead of time

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Melonman Crop Simulation model for the
muskmelon U.S.A.(Cont.)

• Economic impact
• Supply and demand can be better
  stabilized
• More accurate scheduling of
• -Seasonal workers
• -Equipment

Technology -Decision support system -Crop
model -weather station -Improved Crop
yields -Improved farming practices
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Feather Fibers U.S.A.

• Problem Faced
• Feathers were waste and had to be
• disposed of
• Environmental problem
• Solution
• Technology developed
• sanitize fibers and remove them
• from the quill
• Produced paper products, filters, biodegradable
  pots, replace plastic products in cars

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Feather Fibers U.S.A.(Cont.)

• Economic impact
• Farmers sell the feathers which used to
• be waste
• Future
• New plants, more employment
• Added Benefits
• No longer an environmental problem
• Replacing plastic product reduces petroleum
  products
• Paper made from feather has an interesting
  texture and is stronger and more absorbent
• Biodegradable Products

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Products
Feather Fibers U.S.A.(Cont.)
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IPM Practices in Guatemala

• Problem Faced
• Rapid growth of exports in 1980s coincided with
  increased pesticide use
• In 1992 import of snow peas were put on detention
  from entering the United States due to high
  levels of pesticide residue
• Leaf miner presence then triggered ban by the
  United states
• Solution
• Guatemalan Government with USAID and other
  organizations instituted an IPM program.
• The ban was lifted because researchers found that
  the leaf miner was not exotic to U.S.

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IPM Practices in Guatemala(Cont.)

• Economic impact
• During ban 1995-1997 losses of 35 million
  recorded.
• Since IPM program was initiated rejections at
  U.S. ports is down by 50-75
• Added benefits
• IPM practices are beneficial to environment
• Less expensive inputs increase profits for
  farmers

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IPM Practices Jamaica

• Problem Faced
• Insects were found on peppers imported from
  Jamaica
• U.S. Imposed a mandatory fumigation of peppers
  from Jamaica 1998.
• During 1997-2000, about 2/3 of pepper exports
  declined due to the cost of fumigation

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IPM Practices Jamaica(Cont.)

• Solution
• Development of less expensive IPM
  programs to control pests
• USIAD IPM CRSP worked with local
  institutions to develop IPM programs
• Economic impact
• U.S. dropped mandatory fumigation in 2002

• Added benefits
• Less environmental damage
• Long-term sustainability

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A successful case Study of Sustainable
Agriculture Cuba

• Problem Faced
• Large farms formed after revolution could not
  function after the trade collapse
• Dependence on foreign oil caused decreased
  productivity
• Food shortage
• Solution
• In 1993 linking people to the land program
  started by government
• It broke the large state farms into smaller farms
  
• More traditional practices were re-adopted

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A successful case Study of Sustainable
Agriculture Cuba(Cont.)

• Economic impact
• By 1995 the food shortage was overcome
• 1996-1997 growing season Cuba recorded higher
  than ever production levels in 10 of 13 basic
  food items in Cuban diet
• Added benefits
• Less use of oil, fertilizers and pesticides
• Self reliant
• Environmentally friendly and sustainable
  practices

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Tropical Agroforestry Systems the case of
agroforestry in Cameroon

• Problem
• Traditional one crop agricultural practices are
  hard on the land
• One crop farming causes vulnerability to market
  fluctuations

• Solution
• Research indicated agroforestry as an alternative
  farming practice
• Extension service encouraged
• farmers to practice agroforestry
• Crops include cacao, yams, cassava, oil palm,
  bananas, citrus, and bread fruit

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Tropical Agroforestry Systems the case of
agroforestry in Cameroon(Cont.)

• Economic impact
• Low cost to implement
• Per unit area, farms are more profitable
• Added Benefits
• Non timber agroforestry
• Arable crops and livestock are protected
• by the trees
• Stops soil erosion
• Creates wildlife habitat

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Rural Based Food Processing Industries India

• Problems
• Agriculture industries are small and unorganized
• Tax levels on domestically processed foods are
  among the highest in the world
• India also levies taxes on equipment for
  processing
• Just primary processing
• Agriculture has been subsistence driven not
  market driven

• Solution
• NGOs need to put money into businesses
• Marketing and technology advances
• through government agencies
• Stop taxing!

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Rural Based Food Processing Industries
India(Cont.)

• Economic impact
• More employment at future factories
• Not at the mercy of market fluctuations
• if foods are preserved well

• Future
• Less taxes, more profit for farmers
• Factories will be able to employ people

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Development of cottage food processing
enterprises in rural Taiwan

• Problem
• Surplus of vegetables and fruits
• Short shelf life
• No finances for starting up the food processing
  business

• Solution
• Processing will add to the shelf life and
  value
• Government started programs two decades ago
  
• Establishes food processing factories in
  rural areas

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Development of cottage food processing
enterprises in rural Taiwan(Cont.)

• Economic Impact
• Plants, more employment into rural areas
• Processing adds value to the products
• Stabilizing supply and demand
• Technology
• New technologies to preserve fruit
• New varieties ideal for processing

• Future
• Stabilize prices with a contract between
  factories and farmers
• Free market fluctuates

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Food Processing in Indonesia The development of
small scale industries.

• Problem
• Struggle to develop technology
• Improvements needed in quality and standards of
• hygiene
• Finance, marketing difficulties

• Solutions
• Cluster infrastructure
• Foster-Parent enterprise
• Financial assistance from
  government

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Utilization of tofu by-products as Cattle feed
Japan

• Problem Faced
• Soybean Lees are the waste from tofu production
• Lees can be used as livestock feed, but they rot
  easily
• Solution
• Lees can be ensiled or dried

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Utilization of tofu by-products as Cattle feed
Japan(Cont.)

• Economic impact
• Lees cost is low if even existent
• (most is given away)
• Lower cost inputs, a greater profit for farmers
• Added Benefits
• Ensiled lees are more palatable and digestible
• No environmental impact
• Future
• More cost efficient dryers could result
• in tofu plants producing dried lees
• This would add employment at plants

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The Road to Success is Always Under Construction
Change
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To reach any significant goal, you must leave
your comfort zone

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THANKS
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Leading America towards a better future through
agricultural research and information.