196
many of the small village mandis. The applications help farmers select the
crops that will fetch the best prices and are in demand as well as connect each
farmer to more buyers. By providing better price visibility, the farmers can
select the best buyer and time and place to sell. All transactions are digital
allowing for quick payment transactions. Crofarm generates revenue through
commission, starting from nearly 5% of the price in case of less perishables
like potato and onions. It makes a commission of around 15% of the price of
green vegetables and 20–25% in case of fruits.
The Crofarm network now connects over 10,000 farmers with leading retailers in India such as Reliance Retail, Grofers, Big Basket, Jubilant FoodWorks,
Big Bazaar, and Metro Foods. They have secured cold storage to preserve the
fruits and vegetables that require refrigeration. It has also developed an application to connect farmers directly with consumers and utilizes demand prediction
algorithms using artificial intelligence and machine learning.
Because of these initiatives and applications, the farmers in the Crofarm
network have access to more buyers and better prices. This has helped improve
their standard of living while at the same time providing consumers with
fresher and higher-quality vegetables and fruits.
1
With $1M Topline, Crofarm marches toward eliminating middlemen
between farm and retail https://entrackr.com/2018/02/crofarm-eliminatemiddlemen-farmer/. Crofarm website www.crofarm.com
Box 7.4 Connecting Coffee Farmers in Ethiopia: Ethiopian Commodity
Exchange
1
In 1984 famine struck Ethiopia with extreme shortages of food and grain
crops in the north part of the country and resulted in more than 400,000
deaths. In 2002, another famine occurred after bumper agricultural crops in
2000 and 2001 forced prices to record lows. How could this boom-bust scenario be stopped so that the population would not starve and how can both
buyers and sellers of crops be protected against drastic price and volume swings.
Prior to the formation of the exchange, buyers and sellers would often meet
locally to exchange product for negotiated prices. Often the buyers would not
get payments without significant delays and the buyers were always at risk of
poor-quality product or shortages in weight.
The Ethiopian Commodity Exchange (ECX) was established in 2008 as a
mechanism to bring farmers and buyers together to trade coffee and sesame
seeds and assure both timely delivery and payment. The ECX was established
(continued)
(continued)
D. Donnan
many of the small village mandis. The applications help farmers select the
crops that will fetch the best prices and are in demand as well as connect each
farmer to more buyers. By providing better price visibility, the farmers can
select the best buyer and time and place to sell. All transactions are digital
allowing for quick payment transactions. Crofarm generates revenue through
commission, starting from nearly 5% of the price in case of less perishables
like potato and onions. It makes a commission of around 15% of the price of
green vegetables and 20–25% in case of fruits.
The Crofarm network now connects over 10,000 farmers with leading retailers in India such as Reliance Retail, Grofers, Big Basket, Jubilant FoodWorks,
Big Bazaar, and Metro Foods. They have secured cold storage to preserve the
fruits and vegetables that require refrigeration. It has also developed an application to connect farmers directly with consumers and utilizes demand prediction
algorithms using artificial intelligence and machine learning.
Because of these initiatives and applications, the farmers in the Crofarm
network have access to more buyers and better prices. This has helped improve
their standard of living while at the same time providing consumers with
fresher and higher-quality vegetables and fruits.
1
With $1M Topline, Crofarm marches toward eliminating middlemen
between farm and retail https://entrackr.com/2018/02/crofarm-eliminatemiddlemen-farmer/. Crofarm website www.crofarm.com
Box 7.4 Connecting Coffee Farmers in Ethiopia: Ethiopian Commodity
Exchange
1
In 1984 famine struck Ethiopia with extreme shortages of food and grain
crops in the north part of the country and resulted in more than 400,000
deaths. In 2002, another famine occurred after bumper agricultural crops in
2000 and 2001 forced prices to record lows. How could this boom-bust scenario be stopped so that the population would not starve and how can both
buyers and sellers of crops be protected against drastic price and volume swings.
Prior to the formation of the exchange, buyers and sellers would often meet
locally to exchange product for negotiated prices. Often the buyers would not
get payments without significant delays and the buyers were always at risk of
poor-quality product or shortages in weight.
The Ethiopian Commodity Exchange (ECX) was established in 2008 as a
mechanism to bring farmers and buyers together to trade coffee and sesame
seeds and assure both timely delivery and payment. The ECX was established
(continued)
(continued)
D. Donnan