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The Covid -19 pandemic brought a new way of living which will see strict conditions for one to travel from one point to the other maintained in some countries for years to come. Such limited movements and restricted gatherings pose a threat to the small scale farmers’ business considering that most of them prefer to take their farm produce to the big markets in the big cities where they usually sell to the highest bidder.
Business Opportunity
Given this challenge, I seek to offer a dynamic solution by setting up Farm Produce Processing Zones within a 100km radius of every small scale farming community. The small scale farmers with their own means of transport will bring their farm produce to the processing zones whilst my organisation will also have trucks that collect farm produce from the farmers and deliver it to the processing zones. Farmers who deliver their own products will have their produce paid for at 10% less of the prevailing national auction rate of each given produce and when they use our trucks 15% will be deducted. All products received will be graded, processed and preserved for the next stop in the cities near the processing zones. The final products from the zones might go beyond the nearest cities depending on the demand and highest bids in the respective cities.
Benefits
- There will be more productivity on the farms as farmers do not have to drive long distances, spending time and enduring screening processes (which at times may result in them being turned back) on the roads when they deliver their produce.
- The fresh value of the farm produce is preserved by delivering to the processing zones which will be a few kilometres away in many cases.
- There will be value addition to the produce when its graded, processed and preserved at the processing zones.
- Farmers are paid COD according to the grade of their produce and the respective deduction percentage on the price will be applied. Good prices will make us have bargaining power.
- Farmers are also encouraged to focus on improving on the quality of their produce.
- Traffic into the big cities is reduced whilst delivering farmers will be asked to comply with set covid-19 regulations making the risk of spreading Covid-19 controlled.
- Competition to supply both retailers and the last mile client is neutralised.
Specific Revenue Streams
- The percentages being deducted and bargain buys present a saving on the purchasing price and becomes the first revenue stream.
- We will aim to sell to the highest bidders in respective cities to increase our margins.
- Depending on the value addition done at the zones, we can even compete with retailers on some selected products.
- Best quality products will go for direct exports which will earn our organisation foreign currency and presence on international markets.
- Contract farming can be introduced in the long run to selected farmers.
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