United Breweries Ltd (UBL), headquartered in Bengaluru and affiliated with the HEINEKEN group, stands as the largest beer manufacturer in India. As the leading beer maker in India, the company collaborates with thousands of farmers for barley cultivation. Currently, UBL’s area under barley cultivation is 75,000 acres with 8000 farmers. These numbers have the potential to double in the near future with area under cultivation going up to 150,000 acres and 15000 farmers working with them. The company primarily sourced barley from farmers in Rajasthan but they are also expanding in the states of Uttar Pradesh and Madhya Pradesh.
One of their significant initiatives for the agricultural community is the Kisan Unnati program which aims to foster sustainable partnerships, enhance barley quality while elevating farmers' livelihoods. UBL's collaborative model, rooted in transparency and fair pricing, shields farmers from market fluctuations. By providing high-quality seeds and ensuring adherence to rigorous standards, UBL empowers farmers, enabling them to optimize their produce. The company actively combats post-harvest wastage through strategic harvesting practices and education, ensuring barley reaches markets at its best.
In this comprehensive interview with TheCSRUniverse, Mr. Wiggert Deelen, Senior Director, Supply Chain, United Breweries, sheds light on multiple aspects of their Kisan Unnati program and how it is uplifting farmers while benefiting the environment. He also touches upon their extensive work in the domain of water stewardship as well as their plans ahead.
Read the full interview for more insights:
Q. Please tell us about the Kisan Unnati program- how was it conceptualized, what are the objectives and the current scope and reach of the program?
A. Kisan Unnati represents the culmination of UBL's collaborative farming initiative, which was set in motion two decades ago. This program has brought about a significant transformation in barley cultivation within the Ganganagar District of Rajasthan, turning it from a region primarily known for feed barley production to a thriving centre for malt barley cultivation.
At present, we cultivate approximately 75,000 acres of barley, with the potential to scale this up to 150,000 acres. Our program has already engaged 8000 farmers, and this figure is expected to rise to 15,000 as we move forward. The central goal of Kisan Unnati is to establish a sustainable and mutually beneficial partnership that enriches the quality of barley production and uplifts the livelihoods of the participating farmers.
Q. Can you elaborate on the collaborative farming model UBL has implemented in Sri Ganganagar, Rajasthan, and its impact on local farmers and the environment?
A. UBL supports collaborative farming by providing farmers with high-quality seeds at cost and commits to purchasing their produce at the Government of India's Minimum Support Price (MSP) as the minimum price. If market prices exceed the MSP, UBL offers a premium above market rates. This approach has significantly benefited local farmers by shielding them from the annual fluctuations in barley prices and ensuring a fair market to sell their produce. UBL's commitment extends to purchasing every grain that meets the specified quality standards. In the future, we will continue to advance the concept of sustainable farming practices. This may entail leveraging modern technology for crop monitoring to support precision farming and implementing natural soil health improvement technologies, among other innovations. Furthermore, UBL's market assurance has led to the transition of wheat-growing farmers to barley cultivation. This not only conserves significant water resources but also reduces the need for fertilizers, as barley requires less irrigation and fertilizer compared to wheat.
Q. How does UBL ensure the quality of seeds provided to farmers under the Kisan Unnati program, and what role does farm advisory play in this process?
A. UBL is registered as a seed producer in the Punjab state, where it produces the basic seeds. These seeds are then supplied to seed producers in Rajasthan for multiplication, ensuring that farmers receive the highest quality of seeds.
In addition to providing quality seeds, UBL maintains a dedicated team of extension workers. These experts regularly interact with farmers, offering farm advisory and technical guidance to support successful cultivation. This collaborative effort between UBL and its extension workers ensures that farmers have access to the knowledge and expertise required to achieve optimal results in their farming endeavors.
Q. What are the key components of the 2R Barley cultivation model, and how does it promote sustainable practices while ensuring product quality?
A. The key components of the 2R Barley cultivation model encompass transparency in pricing and our firm commitment to honouring agreements made with farmers at the commencement of each season. These elements are integral to the success of the program.
Over time, as farmers continue their long-standing association with UBL, they gain a deeper understanding of the company's requirements, which, in turn, motivates them to produce high-quality crops. The collaboration and dedication of the farmers are instrumental in achieving sustainability and maintaining product quality, making them indispensable contributors to our overall success in these aspects.
Q. What are the strategies employed by UBL to reduce post-harvest wastage in barley production, especially in the collaborative farming initiatives?
A. UBL employs a strategic approach to reduce post-harvest wastage in barley production, particularly within collaborative farming initiatives. The primary approach involves encouraging farmers to harvest the crop at the appropriate moisture level. This practice enables farmers to bring their produce directly to the market for sale, rather than storing it on the farm for drying. By avoiding the storage of crops on the farm, the risk of quality issues such as infestations of insects and fungus is minimized. This approach has proven to be highly effective in reducing wastage compared to the traditional market barley, which often experiences infestations and fetches lower prices due to quality deterioration.
Additionally, UBL actively educates and trains farmers on best practices for harvesting and post-harvest handling. This includes guidance on proper storage conditions, such as maintaining dry and well-ventilated storage facilities to prevent moisture-related issues. The company also provides resources and support to ensure that farmers have access to suitable storage infrastructure.Additionally, in partnership with a third party, we have taken the initiative to introduce silo-based seasonal storage solutions.
Q. Could you discuss the measures taken by UBL to prevent soil depletion and enhance soil quality in the collaborative farming areas?
A. In addition to promoting crop rotation, UBL encourages farmers to adopt sustainable agricultural practices to enhance soil quality. This includes the judicious use of irrigation and fertilizers to minimize soil depletion. By providing guidance on optimizing resource utilization, UBL ensures that the collaborative farming areas maintain their soil health and productivity.
Moreover, the cultivation of barley in these areas, which is known to absorb excess salts from the soil compared to other Rabi crops, significantly contributes to soil improvement and enrichment. This soil-enhancing aspect of barley cultivation enhances the overall quality and fertility of the land, benefiting subsequent crops and promoting sustainable agricultural practices in the region.
Q. How has the collaboration with scientists and agricultural experts contributed to the advancements in barley production technology within the Kisan Unnati program?
A. UBL has actively cultivated collaborative relationships with distinguished scientists and agricultural experts to advance the technology and practices applied in barley production under the Kisan Unnati program. In addition to its regular engagements with Barley scientists from the Directorate of Wheat & Barley Research in Karnal, UBL also actively coordinates with zonal agricultural officers. This multifaceted approach ensures comprehensive knowledge sharing and continuous enhancement of production technology within the Kisan Unnati program.
The organization goes the extra mile by arranging interactions between these experts and the participating farmers to ensure the adoption of the latest and most effective practices. This multi-pronged approach, which combines in-house extension services with external expertise, significantly contributes to the continuous advancement of barley production technology within the Kisan Unnati program.
Q. Are there any other farmer programs or agricultural initiatives that UBL has implemented or plans to implement in other regions it sources from?
A. Following the significant success of the Kisan Unnati program in Sri Ganganagar, UBL is dedicated to elevate the quality and sustainability of barley production in a variety of geographical regions.
The company is currently in the process of planning expansion into the states of Uttar Pradesh and Madhya Pradesh. These regions, while abundant in barley production, have not yet achieved the quality standards required by the malting industry. UBL aims to drive positive change in barley farming practices and improve the livelihoods of farmers in these states.
Q. UBL is doing extensive work in the domain of water conservation and restoration- how have these initiatives helped with agricultural productivity or enhancing farmer incomes?
A. UBL is actively engaged in comprehensive efforts to address water conservation and restoration, making significant contributions to agricultural productivity and enhancing farmer incomes in the process. Barley, a primary crop cultivated under UBL's programs, requires approximately 50% less water than wheat. In Sri Ganganagar, where the availability of canal water for irrigation is occasionally limited, certain lands may remain fallow due to water scarcity. UBL offers valuable guidance to farmers, encouraging them to increase the acreage dedicated to barley. This strategic approach optimizes the utilization of water resources, allowing more land to be cultivated with the same amount of water. As a result, farmers can enjoy higher remuneration for their crops.
Furthermore, UBL's CSR initiatives have a significant focus on water conservation and afforestation. In the current financial year, UBL has embarked on seven large-scale projects in these domains, resulting in multiple benefits for the environment and local communities. These efforts not only enhance the availability of surface water but also contribute to improved agricultural productivity by positively impacting groundwater levels and recharging local water sources.
Additionally, UBL's CSR initiatives include farmer training programs, specifically designed to improve crop management and introduce advanced agricultural practices. Through these endeavors, UBL is dedicated to elevating farmer incomes and bolstering the agricultural landscape.
Q. Looking ahead, what are the future goals and expansion plans for agricultural programs like Kisan Unnati, and how does UBL plan to increase its farmer base and acreage under cultivation?
A. Looking ahead, UBL envisions a holistic sustainability approach for its barley sourcing, exemplified by initiatives like Kisan Unnati. The company's ultimate objective is to fulfill its entire barley demand through collaborative farming programs, thus ensuring local sustainability while bolstering farmers' income. This method not only guarantees farmers fixed prices and a dependable market but also shields them from the vagaries of market fluctuations and potential exploitation.
In alignment with these goals, UBL is planning an expansion of its farmer network, aiming to grow from the current 8,000 farmers to an impressive 20,000 farmers, spanning across the states of Rajasthan, Punjab, Haryana, Uttar Pradesh, and Madhya Pradesh. This expansion is geared towards creating a broader, positive impact on agricultural practices and the well-being of farming communities.
Over the years, we have successfully developed a range of indigenous barley varieties that strike an excellent balance between farmer yields and brewing attributes. We are committed to further enhancing our breeding program, focusing on varieties that are exceptionally well-suited to our local climatic conditions, ensuring sustainable livelihoods for our farmers. It's worth noting that the seeds of one of these varieties were recently exported to Burundi for a test crop, underscoring the high standards we have achieved and our unwavering dedication to continuous improvement.
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