Farm to Market Link (Pi-app)
- Problem Statement:
Majority farmers and agri growers in Asia and Africa specifically, and in the rest of world generally, relies on brokers (third party or mediators) for selling their commodities to grocery markets, commercial units and manufacturing industries. All the profit and gains of the farmers fruit is exploited by these brokers who are the only source to link farmer produces with consumer market.
There can be many reasons but two are more significant in the emergence of the role of a broker or mediator in agri supply chain model since medieval ages. Besides the enormous 21st century explorations in IT and digitization world wide, still the farmers dependency on brokers is knit with limitations prevailed to farmers in primitive agri supply chain. The two significant reasons includes and are not limited to, 1). Farmers busy seasonal calendar i.e. lack of time to assess and access the consumer Market and 2). Farmers financial dependency on brokers who borrow them money in need and buy the farmer seasonal harvests in advance through barter agreement.
It thus gives advantages to brokers who monopolize the farmers produce, buy goods from farmers at low rates and gains two fold profits and domain in supply chain process i.e. farmer to broker and than broker to consumers market.
- Rationale of the Project:
I will try to illustrate the process of farmers, broker and market chain for the peers understanding. I tend to rationalize the very deserved role of Farm To Market Link Pi app for overcoming the exploitative role of physical broker in the era of IT and digital sophistication.
De Facto, the brokers are the actual holders of the farmers produces even before harvest. They monopolize and declares the rates of per kg harvest on daily basis, for instance the rate of buying 5 kg potato from the farmer is declared 1 USD, so all the potatos from the local market is accumulated at 1 USD per 5 Kg. At the end those potato bought at 1 USD are sold in consumer market at 3.5 USD per 5 Kg. The difference is ultimately 2.5 USD increase in 5 Kg Potato which is 250 percent increase in rate of commodity bought from farmer in field. However, the shop keeper/ grocer also plans to keep more than 20 percent profit which comes to be 0.75 USD in 5 kg Unit of potato. Whereas, 0.25 USD are supposed to be spend as services cost i.e. handling, management, storage and transportation of 5 Kg potato basket from Farm to consumer market. Still 1.50 USD gains for the broker is left per 5 Kg potato basket which can be credited to farmers and households consumer benefits through Farm to Market Link Pi app.
The need for brokers working as a link between farmer and consumer market and exploiting the economy is due to farmers in accessibility to the services and consumer market and lack of sufficient time to assess demand and supply sites. Moreover, farmers are also financially dependent on brokers, as these brokers provide short term loans, seeds, fertilizers and pesticides to farmers on seasonal bases and have agreement with farmer to sell them their harvests in barter.
It is a potential and thoughtful proposal for the consideration @ Pi core team to shortlist the proposal for the developing of “Farm to Market Link App” on Brainstorm Pi app for the review of pioneers, developer and technical peers. The model Pi app will enable local farmers/producers, services providers and the consumers to conveniently access through built in Pi-app, taking the role as link or channel for the selling and buying of agricultural based services, goods and commodities in domestic, local, national and international market.
In nutshell, the ” Farm to Market Link App” will give avenue to different prospect of online business and barter system between different categories of farmers, service and goods providers, as well as consumers.
Expected Utilization Scope of “Farm to Market Link App”
As per the reports of UNFAO, more than 60 percent of world population survival relies on agriculture. Further the reports of cropLife International unveils that more than 1 billion people works in agriculture sector and are contributing 2.4 trillion USD to global economy. Thus the extracts from above research and statistical analysis given from accredited organization, we can expect more than one billion user of “Farm to Market Link App” registered under farmer, consumer and barter (exchange of goods and services) categories. It can also give potential avenue to stakeholders for doing business in Pi currency with ease to everybody, farmers, consumers, services and goods suppliers.
I am optimist the proposed app can be a kick off application in an ecosystem and proved fruitful and beneficial for farmers, consumers, goods industries and common people. The idea is comprehensive and seems not to be restricted within limits and can be manipulated till grass root and household level.
This is only an idea, if workable and found feasible for the good of global community, than detailed concept will be shared as per further feedback and Pi core team guidance.