Introduction of a new business model for potato storage

Background

Storage of perishable agricultural products in Bangladesh is a separate business entity, often not integrated with production, trade or processing activities. Currently, supply chain partners in the potato sector wishing to store potatoes rent the facilities of the storage owners. The rent of the storage facilities is based on the duration of the storage period and not on performance. The storage owners control the conditions during storage. Climate control, ventilation, stacking of the produce, etc. is done by the storage owner, whilst the risk of losses lies with the owner of the potatoes (often intermediate traders and potato growers). The owners and operators of the storage facilities therefore only have a limited and indirect interest in improving the storage facilities.

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What do we do?

New potato storage business models are needed where the owners of the potatoes have direct control over the storage conditions. This enables them to add value to the produce and extend the marketing season of the potatoes. The economic and financial viability of the new models needs to be assessed.

The following activities are therefore implemented during the project period:

  • A feasibility study is performed on new potato storage business models where:
    – A potato trader sells potatoes from its own storage on the domestic and export market;
    – A potato trader sells potatoes from its own storage on the domestic markets.
    In these business models, the owner of the produce also owns the potato storage and has therefore direct control over the storage conditions.
  • The operational and economic performance of the new business models are monitored and evaluated during the project period.
  • The results of the economic and operational performance are disseminated to relevant stakeholders. This will stimulate a transition from the traditional business model to the newly effectively demonstrated business models.

The feasibility study is conducted by Advance Consulting with local support from Deltadesh and technical inputs from Verbruggen and Allround.

Advance Consulting
Advance Consulting is a Dutch business advisory firm for investments and projects in emerging economies. We assistcompanies and advise government agencies and development organisations on sustainable business development. Advance Consulting is responsible for the overall project coordination and management of the Potato Impact Cluster. In addition, the company will provide technical support on business assessments and financial and economic analyses of new business models in the Bangladesh potato sector.
Agroplant Holland
Agroplant is specialised in the breeding and supply of high-quality, disease-free seed potato varieties. The company offers a wide range of varieties and has been supplying the Diamant variety to Bangladesh since 2005 and the Metro variety since 2016. Agroplant will supply high-quality, disease-free Diamant and Metro seed potatoes and technical support to the potato growers participating in the pilot.
Verbruggen Palletizing Solutions
Verbruggen Palletizing Solutions is an Innovative Dutch company with over 25 years experience in developing efficient, long lasting palletizers. The company is active in 36 different countries and has branch offices in the USA and Bangladesh. Verbruggen will demonstrate a state-of-the-art palletizer at the selected potato trader and technical staff will provide training and coaching support.
Allround Vegetable Processing
Allround offers a range of storage, sorting, grading, washing, polishing, brushing, weighing, bagging and material handling lines for vegetables and potatoes. The company has dealerships worldwide, including in Bangladesh. Allround will demonstrate its storage, sorting and grading solutions at the selected potato traders. In addition, the company will provide technical assistance to facilitate the uptake of the demonstrated solutions.
Deltadesh Pvt Ltd
Deltadesh is a Dutch-owned private company headquartered in Dhaka, Bangladesh. The company is specialized in procurement, contracting and implementation of turn-key projects in different sectors, including agriculture. Deltadesh will act as the local support office and will assist with the data collection for monitoring and evaluation of the project’s progress and impact.
RVO
The Netherlands Enterprise Agency (Rijksdienst voor Ondernemend Nederland) encourages entrepreneurs in sustainable, agrarian, innovative and international business. RVO provides 50% co-funding for the pilot activities implemented with support from the private sector partners.
Address
Deltadesh (Pvt.) Ltd.
Apt. C-1, House 1/A, Road 79, Gulshan-2, Dhaka-1212, Bangladesh
info @ dutchbanglapotatosupport.com
+ 880 1616 661706