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'Hello Fresh' for Indonesian prawn farmers

Food Security

The Javanese manufacturer of organic food supplements for the agricultural sector Pradipta Paramita has set a new course, with a full-service package for prawn farmers. Farmers can take part in a programme that allows them to purchase a package of food supplements, matched to the size of their farm.

The programme is backed up by practical support from the experts at Pradipta Paramita and the option for on-the-job training for employees. A loyalty programme offering extra discounts depending on the duration of the subscription completes the new approach.

“It can perhaps best be compared to the Hello Fresh concept in the Netherlands, a concept where recipies and ingredients are home delivered” explained PUM expert Harry Bijl. “We elaborated the idea during the initial days of the mission, and were able to test it straight away at a trade fair in Jakarta. The response was enthusiastic. Farmers can improve both the quality and quantity of their production with this full-service package. For Pradipta Paramita it has marked a turnaround. The business was dependent on a limited number of wholesale customers, mainly in the poultry sector. The risks have now been spread across a far larger number of customers and the margins are higher. Three months down the track the family business with more than fifty employees is once again in profit and owner Agnes Heratri and her daughter Fabiola can face the future with confidence.”

‘Direct sales to farmers generates 70% higher return’

Pradipta Paramita submitted a request to PUM for support in developing a marketing strategy. Harry Bijl continued, “The company, it turned out, was focused entirely on the production process. There was little understanding of the commercial aspects. Together with the staff, I prepared an analysis of the cost structure, the various product and customer groups and the competition. This revealed among other things that the products for prawn farmers if sold directly could generate 70% more revenue, while still remaining highly competitive. During the Aquatica Asia & Indoaqua 2018 trade fair in Jakarta, these conclusions were confirmed. Owner Agnes Heratri and I organised a joint presentation at the trade fair, which led straight away to the signing of the first contracts.”

Next step

With the newly gained insights into the operation of the business, mother and daughter Heratri set turnover targets and drew up an investment plan to optimise production. Using simple means such as direct mail and participation in trade fairs, the customer base was gradually expanded. By organising a provincial network of agents, Pradipta Paramita will be able to further expand service provision to the prawn farmers, and boost sales. The next step will be to develop online marketing activities. As soon as the financial situation allows investment in digital systems, a second PUM mission will be organised.

Harry Bijl (58) has a background in public relations and marketing. Since 2013 he has been PUM expert in the sector business consultancy. He has now completed five missions in El Salvador, Bosnia-Herzegovina, Morocco, South Africa and Indonesia. In Harry’s own words, “I was impressed by the level of drive within the Pradipta Paramita team. Not only the owners but also the people responsible for financing, marketing and HRM were hungry for information. On day two, the entire team worked late into the evening preparing for the Jakarta trade fair. We built up close ties, both commercial and friendly. I was recently sent a photograph of the school leaving ceremony of the youngest daughter. It goes even beyond than professional appreciation and that is perhaps the main driving force for me in carrying out this work.”

Tekst en fotografie: Harry Bijl