Friday, October 3, 2008

the dream re-visited


It is useful from time to time to take stock of where one has come from and where one is headed. In that vein I will summarize below in five blog entries a brief review of what I have done and what my future expectations are.

It is almost four years now since I started this new lifestyle, with a minimum of capital all of which has long been spent, and now I have to generate my own cash flow within the business if I am to grow to the next level.

My ultimate goal in the not too distant future is to live permanently in the Polonnaruwa District and run an agri business cum ecologically neutral tourist enterprise. I believe within my scale I have to do both in tandem for each to survive as a viable business. I would like to manage my produce delivery business in Colombo and my shop in the farm, which means I need a reliable workforce capable of following instructions remotely.

While I was aware that there would be immense risks, there were two risks, the gravity of which has taken me completely by surprise. The first and most important being the unreliability of the workforce no matter what time of incentive scheme you set up for them, where often the instructions carried out are the exact opposite of what was very lucidly explained. The other surprising area is the damage done to my agricultural produce by birds and animal, while pests I can accept, the former I cannot. From peacocks, to rock squirrels, monkeys to rats , pole cats to cattle all have contributed to a considerable loss in agricultural production.

The main benefit has been the unexpected life style full of learning about new methods people adopt to cope with various of life’s difficulties and the resolution to carry on in the face of great adversity when sometimes only hopelessness is all one sees ahead of one. The climate has been kind in that living much of the time without electricity, has not meant sleepless nights for lack of fans, but on the contrary nights of more sound sleep out in the open in Polonnaruwa much to my amazement.

The blog has been my outlet and mouthpiece in the face of a lot of isolation from the outside world due to the lifestyle I currently lead, which allows me little access to what is happening in the world or with those who I know in Colombo and overseas. I am very appreciative of the encouragement from blog readers to help me through this period of exploration.

the farm in Godagama, Meegoda


This ten-acre property 28km from Colombo is where I originally came to when I returned to the country. It was clear from the outset, that it was in a negative cash flow situation with the dairy contributing the significant portion to the loss, primarily because we spent too much time and energy feeding the animals for very little milk revenue.

I had to make the existing house habitable and livable, by cosmetic changes, of upgrading the electrical system, painting the place and upgrading some of the homes on the property along with some infrastructure. The workforce that I inherited sadly is probably the worst this country can provide, with productivity that would not even pay the wages.

I was in a terrible dilemma, as I could not bankroll a permanent loss, and had to take calculated steps to increase revenue. The first was to rapidly try and find markets for King Coconuts all over Colombo and fill shortages by buying the nuts from neighboring properties. This was very successful but in 2008 adverse weather conditions and severe problems with the reliability of the tree climber who doubled his charges resulted in losing money on this previously profitable business. I hope I can return to a state of profitability next year, but a lot sadly depends on the tree climber’s performance.

The other products, Coconuts and bananas are hardly holding their own, with bananas badly affected by a family of monkeys that has taken residence on the farm ruining everything. We are still struggling to get enough papaya trees to cope with the demand, and have been singularly unsuccessful in this regard. Actually the unreliability of the workforce to carry out orders has been the main contributor to the lack of produce in these three departments.

I have no marketing problem for anything that is grown on this property, it is just the production of good quality produce that has been sorely missing. I have attempted to start a line of fresh leaves which I feel has a great demand but this too is labor intensive, as the weeding has to be done by hand as not pesticides are used and we just don’t have hardworking and reliable workforce for that. The sky is leterally the limit on what I can sell, like the market for flowers like anthuriams and orchids is unsatisfied along with houseplants, all of which grows well in this property, but until I personally poison their moonshine and say good bye to all those who have tested me I am not going to get into a state of near break even in this property.

the kade


The shop, “Kirimetta Handiya” which I constructed and opened at the entrance to the farm in Godagama, on April 1st 2006 is the best use I had made of a small inheritance left me by my mother. I am able to sell everything I produce, both in Polonnaruwa and Godagama as well as produce I am able to purchase from my neighbors, and sell at retail prices. This has stemmed the losses from the farm, by bank rolling the expenses of the farm. While it takes management time to purchase produce etc. I am now toying with the idea of renting it out so I can ensure a market for my produce, but also not worry about the running costs, and pilfering from the shop, as well as the unexpectedly large rodent spoilage losses.

The design is eye catching and my initial plans were big, but here again cash flow and unreliability of staff played its part, and no one worked on the shop with as much diligence as I did when I was running it single handed when the revenue was at its highest. So the extrapolations made there from were not achieved. I still would like to open it in the evening as a café, but that idea will only come into fruition when I can find someone to run that side of the operation as the location and the setting is ideal for a very novel place.

The kade has wood panels, doors and windows, made from the very rare margosa or khomba wood, as are the 4 tables and 8 benches, which can be used to seat over 24 people at a sitting. So some of the infrastructure is in place for the restaurant. The location under the Bo tree with no house or building view anywhere near the place lends itself to an idyllic setting.

My original intention to stock it with products of Sri Lanka owned companies was stifled firstly, by the heads of those companies not subscribing to my theory and giving me a break on prices for their produce in return for exclusivity, which is a common idea in the west. They have a lot to learn about competitive business practices as they are still being trounced by the multinationals, and no wonder with that attitude! Secondly, the superb marketing undertaken by the multinationals due to their greater resource base, has enable them to loss lead and capture market share, and sometime transfer price across countries that are detrimental to local businesses in being able to compete in a level playing field.

This long- term and worthwhile investment will cost twice as much if constructed today, and I am therefore happy with it on all fronts.

Kumbuk Thuduwa the agricultural property


I purchased this property within a month of seeing it in July 2006, spending US$6.500 to buy, and US$3.500 to build my cabin, well and water tank. so that it is a complete property, where one need never leave, as it has everything one would want in one place. With 3 acres of paddy land, and 2 acres of coconut and mango trees, I have completely transformed it in two years from an abandoned shrub, where the old trees were uncared for and the vegetation overgrown.

I have had a sufficient return on investment so that I could cover the cost of my travel to Polonnaruwa, which has doubled since I purchased it. I have had four paddy harvests so far, selling every grain of rice I have produced and more. I have plans, which can take its time to develop, as this is where I expect to run an agribusiness from in the future. I am blessed with a water source, namely the Minneriya Oya that runs alongside the property providing unlimited water, except that I have to pump it up.

Many of the stories in my blog arise from my living here in the middle of a village, and following the lives of my neighbors and commenting on the various social interactions arising from my intrusion into their space.

I have spent the past two years developing the poor soil conditions, fertilizing the coconut trees, planting fruit trees, coconut plants and a banana plantation. The 500+ papaya plants all contracted a virus and had to be destroyed with my demand for papaya still remaining unfulfilled.

I have brought three of my cattle here and hope to bring a further three animals to build up a small dairy herd to produce and sell milk in the neighborhood. I have also planted a third rice crop for the first time this month as an experiment to look at the pros and cons of this project.

Sudath the man I placed on this property from the farm has remained there and has got married and his wife is now expecting a child any moment. I still have not got electricity to the property, primarily due to the cost of getting the wires into the property.

I am happy to report that the value of the property has more than doubled in the past two years and I have never been more satisfied with a purchase than I have with this property, as I really love it. I welcome anyone to visit me.

Kumbuk Pokuna Lodge, Ratmale, Minneriya


See www.ratmale.blogspot.com. It is a building I broke ground on August 4th 2006, which for want of funds I have not finished. It has cost me US$12,000 to date, part of which is from borrowed funds. This is in addition to the property, an acre, which I purchased from a friend years earlier.

I intend it to be both my personal home, and when I get bookings, to rent it out on short lets, to then live in the Hingurakgoda, Kumbuk Thuduwa, which is a mere 15km or a Rs25 bus ride away on a direct bus route.

Much of the structure is now complete with the finishing touches and landscaping to be completed, it will be lit by generator for the time being until I am able to afford the power lines into the property.

It has been designed on the lines of the old National Park lodges of yesteryear and will appeal both to nostalgia and those seeking an alternative experience in the wild. Herds of wild elephants come for an evening dip at the opposite side of the tank that adjoins the property and it borders the Kaudulla National Park, the entrance of which is 5km from my property.

It sleeps 8 in 4 large double beds, and is rustic and basic, but with a charm of its own surrounded by waterholes that attract a fascinating array of bird and animal life, that one can just enjoy, like a natural history program, while relaxing in the verandah section.

I have put in a lot of effort in the past two years to get to where I have at such a low cost bearing in mind what I had to do, including the construction of a well with 25 tractor loads of rock covering a depth of nearly 30ft so the well will never run dry, even during the worst of droughts.

This property is an integral part of my plan, and whose occupants can be fed from fresh produce grown on the other property, which will also form part of the visiting environment to the area to contrast the agricultural and wildlife experience of the area.

I also currently purchase fruit and vegetables from my neighbors in the area, and also get an incredibly good bees honey, when the hives are harvested from the forest once a year in July. I expect to complete this project within 6 months and begin the landscaping as soon as the rains come.

my one and only vehicle, Tata diesel cab


I have had this vehicle, leased as new from the time I returned. It has served me during these years and just as I reach my 4th anniversary back in Sri Lanka, the last lease payment is coterminous with that. Nearing 125,000 km it is a shadow of its former self, creaking and noisy beyond imagination, requiring a major overhaul, including minor body repairs but also a good paint job to prevent corrosion.

It has hauled almost anything you can think of and I do not believe there is another vehicle like this in the country that has had this much use for such a versatile series of tasks. Just to name a few, the regular transporting of grass or hay for the cattle, regular deliveries of King Coconuts to customers in Colombo, transport of rice and food stuffs from Polonnaruwa, hauling timber, frames, and even roof tiles from my fathers home to Polonnaruwa, where the 90 year old tiles from India were taken once he decided to put a sheet roof replacing the leaking clay tiles.

I could not have carried on my business without this vehicle, and despite the high cost of maintenance and running, I believe it has been the best option available to me. I wish I had a vehicle to deliver foodstuffs that is both covered and refrigerated, for the future growth of my delivery business, but that will just have to wait for better times, when I can be assured of reliable employees to carry out this task as I already have an unsatisfied market.

The fifth estate of my business and a crucial one at that, allowing me to survive to tell the tale so far, has been my Monday home delivery business of about 40 different items. It is primarily my produce from both Godagama and Polonnaruwa, but also what I purchase from my neighbors and from other sources.

This makes Mondays the hardest day of my already busy schedule. At 5 am the produce has to be collected, picked and packed in weights for delivery. It is usually past 10am when I leave fully loaded to the gunnels. An extremely tiring day of delivery to friends and family ends around 7.30pm and it takes another 90 minutes during rush hour to return to the farm. I then have to unload any unsold items, and then repack for my trip to Polonnaruwa, with crates, water and items such as banana plants. I then leave after 10pm; the journey of 215km takes me four and half hours to get to Hingurakgoda. This late night journey is often alone, thanks to this workhorse Tata.

Monday, September 22, 2008

Dogs or Motor Bikes what is more dangerous?

Today is Friday the 19th of September. I returned from the Polonnaruwa hospital. Sudath who works for me on my land, the 5 acres in Raja Ela, Hingurakgoda, was returning at 9pm last night with his 7month pregnant wife, on his motorbike, from a clinic near the hospital. A dog had suddenly crossed the road and both had fallen off the bike. They had superficial wounds to hands and legs and were taken by a trishaw to the hospital where they were admitted for observation and x-ray the following day.

What I wish to note is that soon after Sudath was admitted there were four other people who were brought into the ward with injuries some serious resulting from dogs running across the road.

If one is familiar with Sri Lanka one will realize as a motorist one sees many dogs on the road in groups or singly and a motor vehicle is usually safe from their menace. However motorbikes are in harms way as they are constantly running across the road with no care or concern for the traffic.

With our free medical care, no one seems to make an issue out of the high cost of health care arising out of dogs causing traffic accidents on the road. I did mention in an earlier piece where our drivers tend to brake suddenly endangering civilians, when dogs cross the road as they try to avoid harming the animal and harm the humans instead. This motorbike accident brought home to me, the frequency of this occurrence with the attendant costs to the economy, which outweigh the benefits of having so many dogs around.

I invite the reader’s comments on this issue, as the increasing number of motorbikes on the road with the resulting accidents are putting a serious strain on the free healthcare system of this country. Will bike riders be more careful if they have to pay for a share of the cost of accidents? Even if it is not their fault, but only because they are in vehicles prone to accidents.

The hospital was full and this has over 500 beds. In this ward there were two to a bed and the next bed was a soldier(MP) who was stabbed last night by an army deserter who had been identified and faced imminent arrest.

This hospital has a reputation for expertise in treating poisons either resulting from snakebites or from ingesting pesticides as is commonly done due to the slightest provocation, mostly in the form of attempted suicides.