enabling food security through digitization of the food...

11Hewani IM presentation v2AMS

Enabling Food Security through Digitization of the Food Value Chain

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We are an end to end Supply Chain solutions provider based in Nairobi Kenya with over 16 years of supply chain automation experience in 4 African markets

We use mobility tools with powerful insightful analytics tools to help drive efficiencies, mitigate losses and create linkages to markets while providing access to financial services

Who we are


How we bring value across the Supply Value Chain

Warehouse Aggregation Points

Aggregate, weigh, quality check, and track supplies of farm commodities

Market farm commodities to global or regional buyers (depends on commodity)

Farmers:

Produce commodities in exchange for payment

Receive or purchase inputs and co-op extension services

Processors

Process commodities and manufacture for retail

Monitor cross-supply chain activities (e.g., inventories)

Inputs & Service Providers:

Provide farmers with inputs and key services on behalf of farm cooperative

Retailers:

Sale to end customers

Input sales to farmers

Distributors:

Develop and maintain retail sales pipeline & relationships

Real-time inventory & field force management

Virtual City – What We Do


Digitization Supply Chain

Projects

Global Recognition &

Strategic Partnerships

G-Soko is a Virtual City

innovation for the

automation of the Grains

Value Chain from

Smallholder farmer to

Market Auction

AgriManagr is a

Collateral Management

innovation tracking the

inventory storage and

purchases of produce at

all Aggregation levels

Researchr is a Field

Research innovation

capturing the Baseline,

Monitoring, Audit and

Certification processes

in the field

EWS Leaf Buying is

a Processing Factory

innovation managing

the lifecycle of leaf for

the Tea Value Chain

up to point of export

Agro County

Solution is an Agro

Cooperative Solution

tracking the purchase

of Commodities for a

County Government

Our Successes – Innovation Lives Here


Our Service Offering

Cloud PlatformEnterprise Mobility Apps On Demand Analytics

• Mobility Applications specifically designed to map Agricultural Commodity Value Chains

• Remote data capture and transaction processing with easy to use interfaces

• Keeping track of all field activities through real time access to the data across multiple locations, projects and markets

• Enable productivity and efficiency of Field Teams

• Analytics to drive decision making based onreal time visibility.

• Data driven predictive analytics & demand planning for improved Impact Tracking

Our Service Offering


Problem We Seek to Solve

Timely PaymentsSocietal Trust in Agri-Business

• Farmer Trust• Slow delivery to payment cycle• Contracts not honored • Formal Channel Prices lower than

Agent spot price• Collapse of Extension Services• Low & Seasonal Yield per cow / farm • Poor Quality Feeds• Inadequate Daily Animal Feed • Lack of Knowledge on Best Practices • Market Glut in wet season• Market Scarcity in dry season• Fodder production unreliable

• Youth Apathy• Agriculture Lack of Interest• Very Manual• No Wow Factor• Don’t see how can scale• Long lead time to revenue• Don’t own the land• Cant see Growth Model

• Improve the quality of commodity• At Farm

• Access to quality feed• Access to quality seeds/inputs• Track inputs volume

• Per Commodity• Identify Breeds performance

• At Buying Centre• Clerk driven Testing• By Sight & Smell

• In Transportation• Batch Management• Container Type• Traceability to Buying Centre

• In Cooler or Warehouse• Technology driven testing• Parameters based testing

• At Processor• Value Based Pricing• Incentives for Quality• Incentives for Consistency

• Delivery to Payment CycleSpeed of Farmer Payments

• Digital Payments to Farmer mobile money or virtual bank account

• Payments made directly to farmer less check off

• Improve Farmer / Processor relationships

Side Selling• Reduce side sales to Agents

who offer cashPayment Options

• Provide farmer with various digital options for payments

• Instantaneous Full payment

• Instantaneous Advance Payment

• End month Payment less Deductions

• Bonuses

Commodity Quality & Value


Digitization of the Agro Value Chain

Desired OutcomesChallenges

• Lack of automated, centralized management of the linkages across supply chain allows value to be transferred to brokers as opposed to producers

• Deficiency in tracking the Food Balance Sheet due to lack of Visibility on Farm or Storage Quantity and Quality

• No data driven basis for Food Security Projections and Impact Analysis

• Manual record keeping in the produce collection process leads to challenges in accountability creating an opportunity for fraud and theft

• Long lead times in reconciliations and net payments due to farmers from their commodity deliveries leading them to sell cheaply at the Farm Gate to Brokers

• Middlemen, Transporters and Local Market Stalls act as Traders and generate higher income from produce than the farmers

• Register all the stakeholders and map their location and activities to the value chain

• Record all points of engagement with stakeholder such as farmers, inputs suppliers, extension officers, warehouses

• Digitize the weighing of all commodities delivered to aggregation points together with specific quality parameter checks

• Monitoring and Evaluation Tools that enable verification and validation of value chain market players, premises, demographics and other relevant indicators

• Deliver market analytics dashboards and reports that add value to all decision makers across the entire value chain

• Transfer a greater proportion of the market price to the primary producer easily, speedily, digitally and correctly

• Eradicate Fraud at Smallholder Farm Gate

• Map the Ecosystem - Identify each Entity in the Value Chain, including Farmers, Cooperatives, Traders,Transporters, Processors, Distributors

• Ownership – Maintain Ownership of Produce with primary producer until sale

• Values & Ethics – Transparency and Visibility in the entire process

• Youth Jobs – Digital Jobs that are exciting to Youth & Add Value to Society

• Food Security - Track, Validate and Reconcile the inputs, farming, storage, movements and quality of commodities

• Policy Formulation – Use Digital Data Analytics to derive Predictive Models

• Credit – Enable access to credit and payments to farmers through visibility

• Insurance – Create opportunity for innovative Agro Insurance Products

Ideal Solution


How do we Automate Agro Value Chains


• Registration all Smallholder farmers and Cooperatives in ecosystem

• Cluster all smallholder farmers into groups, routes and centers

• Track quality and quantity of delivered commodity procured from smallholder farmers

• Collateral management of inventory and ownership at warehouse level

• Monitoring quality parameters that are essential per commodity type

• Improved traceability through use of technologies such as bag tagging using RFID & NFC cards for farmers

• Warehouse Receipt generation enabling access to credit against delivered produce

Market Segmentation

• The Agro Force solution is built to work in the following sub sectors:

• Dairy

• Grains

• Pulses

• Tea

• Coffee

• Horticulture

• Livestock & Meats

• The target clientele comprisesof Agro Trade Associations, Warehouse Owners, Cooperatives & Farmer Groups

• The farmers are the end beneficiaries

Appropriate Technology

• Digital weigh scales and mobile devices at point of produce purchase enable assignment of volume, value and quality per farmer and buying center

• Built for remote areas with limited connectivity – Can work both online and offline

• Use of appropriate hardware such as ruggedized devices

• Easy to use applications – built to ensure limited training

• Powerful route management capabilities to ensure best of class commodity procurement

• SMS to the farmer on transaction and month to date balances

KPI’s Monitoring

• Fraud mitigation by use of accurate digital devices and notifications to stakeholders

• Commodity aggregation per farmer/ route / buying center

• Collateral Management per store / vehicle / warehouse

• Quality parameter checks

• Stock Reconciliation

• Inputs Distribution Tracking

• Farmer Month to date unpaid Inventory Balances

• Farmer loans

• Access to Education and Health Facilities on Credit


Our Value Chain Applications

A suite of inter-related Mobile & Tablet applications designed for each level and persona in the Value Chain, with easy to use interfaces on simple field devices all

integrated into one Platform

Field Commodity Apps

• Farmer, Cooperatives and Aggregation Centers Registration

• Aggregation Centre Purchases & Storage

• Warehouse Collateral Management

• Transport Facilitation and Tracking

• Value Assignment to Inventory

• Advances and Loans against inventory

• Inputs Facilitation against inventory

• Market Buyers Trade

• Farmer and Cooperative payments

• Crop Ownership vs. Liability Tracking

Field Monitoring Apps

• User Baseline & Demographics

• Field Utilization

• Extension Service Provided

• Inputs Purchased

• Acreage & Farm Pictures

• Extention Services Provided

• Inputs Applied

• Financial Credit Access

• Merchants Mapping

• Product SKUs

• Retail Stock Availability

• Competitor Analysis

• Crowdsourced Data Collection

Field Distribution Apps

• Visibility of field operations

• GPS tracking per transaction

• Orders

• Sales Transactions

• Cashless Payments Collection

• Inventory Deliveries & Returns

• Route Management

• Losses Analysis

• Loyalty & Rewards per Transaction

• Alerts & Notifications

• Trade Credit & Vouchers

• Invoice Discounting

Impact Analysis

• Ecosystem Singlular View

• Stakeholder Mapping

• Yield Analysis

• Collateral Mapping Analysis

• Market Performance Analysis

• Cashless Wallet Accounts

• Heat Map Activity Tracking

• Reorder Planning & Tracking

• Reconciliation of Sales vs Stock vs Payments

• Financial Inclusion Analysi

• Sales to Cash Cycle

• Predictive Analytics

Our Value Chain Offerings


Executive Summary

Market Situation

• Significant challenges hinder the Digitization of the Food Value Chain for Farmers, Cooperatives, Service Providers, Processors, Distributors and Retailers in the Food Industry, although they are a key engine of growth in the economy

• Five key challenges plague the Agro Sector in Unlocking Value include: lack of collateral, lack of records to access credit, losses in storage, lack of knowledge on best practices and poor farmer returns

• Supply Chain Automation Technology creates an opportunity to activate Entrepreneurs in a Country such that they can provide valuable services to the Farming Community, generate Revenue, reduce the endemic Fraud and Corruption in the Produce Purchase process while enhancing Efficiencies

Value Proposition

• The Agro Value Chain Solution proposed in this document creates a unique competitive advantage to Digitally Enabed Entrepreneurs by providing a platform for them to provide valuable innovative services to the Agro and Food Industry through technology while enabling access to Financial Services

• The Agro Value Chain Solution provides a solid platform by which the Country can convert the Youth to be Agents of Agricultural Transformation both Economically and Socially towards ensuring Food Security

The Opportunity

• Kenya has been ranked first globally on four aspects of digital financial inclusion, namely: country commitment, mobile capacity, regulatory environment and adoption of digital financial services.

• Through this platform, the Youth potential can be leveraged to have significant Impact with respect to:• Increase value of market price allocated to Farmers as proportion to Market Buyers Price• Enhance adoption of digital financial services among smallholder farmers for faster remittances• Generate Digital Jobs in the Agro Sector for Entrepreneurs & Youth Groups within Community• Provide capability for farmers to improve the quality of produce and their farming best practices • Reduce Fraudulent, Corrupt and Unethical Practices in the purchase of agriculture produce• Enable Youth Groups to Order and deliver Quality Inputs from Suppliers directly and affordably

Transformation of the Agro Value Chain


Be specific and Targeted inServices Provision

Communicate directly to GoK Agencies

Develop Digital Services & BusinessBased on Agro

Sell Farm Inputs to Coops and Farmer Groups

Collect Agro Market data directly from Farm Gate

Aggregate & Purchase Produce at Farm Gate

Provide Insights andInterventions based onData Analysis

Create linkages between Agro Stakeholders

Enable mobile payments direct to Farmers

Provide Extension Services for a Fee to Farmers

Securely Capture information directly from the Field

Agro Value Chain – Digitization Services

Register Farmer, Coops, Warehouses & Service Providers


Consumer Production Distribution321

Baseline Mapping & Registration

Coops + Farmer Payments & Loans

Produce Purchase & Aggregation

Analytics and Insights

Delivery Tracking

Stakeholder Communication

Farm Extension Services

Food Distribution & Retail Sales

Entrepreneurial Digital Activities


• Entrepreneurs can conduct Baseline of Farmer, Livestock and Farm done capturing:

• Farmer KYC Details• Demographics• Acreage• % under crop• Crops• Livestock• Inputs applied• Seeds Planted• Farmer Group• Location Coordinates• Inputs Expenditure• Market Price• Net Benefit

• Entrepreneurs can conduct serve as Service Providers in the rural areas

• All services provided to the farmer can be digitised:

• Extension Services• Fodder & Hay• Farm Mapping• Planting• AI Services• Animal Health• Training• Insurance• Equipment Leasing• Cattle Dip Services• Feeds Advisory• Breeding

Entrepreneurs can provide Agency Services as Input Providers to collect orders from farmers and also sell Inputs directly to farms, farmer groups & cooperatives

• Agro Farm and Livestock Input Sales

• Input Supplier Orders & Mobile Payments

• Inputs Credit sales against delivered produce per farmer

• Inputs credit purchases from Suppliers

• Invoice discounting for inventory purchases

Inputs ProvidersService ProvidersThe Farm Produce Purchase

• Entrepreneurs can serve as Buying Clerks to weigh produce delivered by farmers and track quality by:

• Digital weighing of produce with accurate measures

• Field Quality Testing• Digital Goods Receipts• SMS confirmation of

delivery to farmer• Farmer can query month to

date Balances• Aggregation of weights

from multiple farmers• Storage Standards Tracked• Losses Tracked• Quality Tracked

the dairy ecosystem actors Digital Enabled Jobs – Farm & Aggregation Services


• Entrepreneurs are registered Transporters to handle commodity on consignment & paid Service Fee as opposed to Trade.

• Youth can utilize the Digital Platform to track:

• Vehicles• Drivers• Inventory Manifest• Loading Sheets• Delivery Notes• Transfer Notes• Losses• Batches• Variances

• Entrepreneurs can manage Coolers & Warehouses as aggregation points for Farmer Groups

• Youth use Platform to track:• Volumes• Ownership• Goods Received• Transfers• Transit• Releases• Quality Parameters• Grades• Warehouse Receipts• Notifications• Inventory Value

• Entrepreneurs can provide digital collateral and quality management services to Processors.

• This includes:• Receiving batches of

produce from coolers and warehouses

• Contract Transporters to collect in bulk

• Track produce Pack house Productivity

• Order Processing & Dispatch

• Vehicle Loading• Lot Traceability

Processors Milk Coolers Transporters

the dairy ecosystem actors Digital Enabled Jobs– Logistics & Warehousing

• Entrepreneurs can provide Digital Dispensers are self sustaining retail units that:

• Sell Quality Beverages direct to Retail

• Monitors Quality and Quality of Beverage

• Dispenses milk to end consumers who pay via digital instruments

• Develop revenue share model of funds to Owner & Retailers

• Create Dispenser distribution models and franchises

Retail Dispensers


• Entrepreneurs can provide a 360 degree view and management of Storage Operations including:

• Inventory Tracking• Route Management• Sales Force Tracking• Merchandising• Van Selling• Deliveries• Targets Management• Sales Team Productivity• Sales Coverage• Lost Sales• Pricing & Discounts• Promotions• Payments• Credit

• Entrepreneurs can track and automate sales operations on mobile devices:

• Van Selling• Vehicle Stock Manifest• Route Plans• Sales• Invoices• Deliveries• Digital Payments

• Merchandising• Outlet Mapping• Order Taking• Outlet Stock Takes• Product Availability• Outlet Coverage• Competitor Tracking• Productivity

• Entrepreneurs can provide Retail Merchant Owners with Mobile Point of Sale Device and App enabling:

• Better Control of Retail business• Digital catalogues with better

pricing as order direct from suppliers

• Digital Payments via mobile direct to Supplier Bank Account

• Easy User Interface for selling to consumers + collect payments

• Digital Records enabling Owner to manage business remotely

• Extend Commissions to Sales Clerks based on targets

• Credit worthiness to Financial institutions based on records

RetailField SalesDistribution Consumer

• Entrepreneurs can provide Consumers with digital payment, product catalogue and communication services enabling:

• Consumer Derives:• Better Prices at Retail Outlet• Quality Guarantee that product is

from original manufacturer / supplier

• Higher availability due to improved restocking managed by analytics

• Loyalty Points based on purchase:• Value / Volume / Frequency

• Credit Worthiness and access to financial services based on digital purchasing patterns

Customer Touch Points >> FMCG DistributionDigital Enabled Jobs – Food Distribution


• Entrepreneurs can directly serve Hotels, Restaurants and Cafeterias with Food & Beverage Items

• Through Digital Technology can take electronic orders from establishments and fulfil their specific needs

• Youth can provide specific order and delivery digital tools to eateries enabling them to serve clientele outside of their traditional walk in business

• Enterprising Youth can establish Order Fulfilment services to deliver food and beverages to Consumers at a affordable service fee

• Entrepreneurs can set up mini Agro Parks outside Urban Areas through Technology that provide:

• Aggregation• Sorting• Grading• Cleaning• Packing• Dispatch

• Create Agro Park Service Centers to serve Grocers, Hotels, Restaurants, Cafes and individual homes with high quality Fresh Produce

• Establish Order Processing and Delivery Services for Fresh Produce and Perishable Goods

• Entrepreneurs can begin Agro Brokerage Services for:

• Market Making• Commodity Buying• Commodity Selling• Mini Auctions• Warehouse Receipts

• Once the Commodity Warehouses are automated and the inventory levels available electronically there will be opportunities for digitally enabled Youth to provide Agro Enterprises with services:

• Digital Payment Services• Order Processing• Quality Validation• Warehouse Certification

Commodity TradingAgro ParksHotels, Restaurants & Cafes Predictive Analytics

• Entrepreneurs will be best placed to develop value added services based on the vast data repositories that will form as a result of digitizing the Value Chains.

• Data Analytics Services that collate, track, analyse and predict commodity volumes and values will provide lucrative business models for the digitally enabled Youth

• Researchers, MNOs, IGOs, NGOs, Publishers, Traders and Financial Institutions will subscribe to Analytics Services generated from the Platform that are well packaged and presented

Trade Segmentation >> RetailDigital Enabled Jobs – Trade Services


• Entrepreneurs can provide Analytics based Services. These comprise of:

• Monitoring Analytics• Transaction Analytics• Operations Analytics• Impact Analytics• Predictive Analytics

• The next steps currently being explored are:

• Predictive Analytics• Credit Scoring• Credit Recommendations

• KPIs are also tracked through auto generated:

• Triggers• Alerts & Notifications• Dashboards

• Entrepreneurs can provide digital payments solutions for:

• Out grower direct settlement• % value remittance• Loan disbursements• Rewards disbursements• Service Provider Fees• Farmer Loan Requests• Cooperative Payments

• Reconciliations take place in real time based on:

• Float• Check Off• Deliveries vs. Payments• Warehouse Receipt Sales• Input Supplier Settlement• Repayments• Partner Revenue Share

PaymentsAnalytics Insurance

• Entrepreneurs can provide Crop, Warehouse, Transport and other Insurance Services based on Commodity:

• Value• Volume • Frequency• Targets

• These Digital Insurance products can be delivered via:

• Mobile money• Airtime / Bundles• Merchandise• Product• Inputs• Services• Discounts• Bonus

the dairy ecosystem actors Digital Enabled Jobs – Financial Services

Credit

• Entrepreneurs can provide credit against Farmer Deliveries based on:

• Purchase Inputs• Draw an Advance• Attract Loan• Sell Warehouse Receipt

• Manage the calculation of the farmer deductions:

• Reserve Fund• Loans• Inputs Taken• Extension Services

Provided• Payment Advances

• Determine Net dues• Milk Deliveries value

less deductions• Month to Date Balances


Extension Services

Inputs

Warehouse

VillageBuying Centre

Farmer

Processor

Distributor

Analytics & Payments

Smallholder Farmer at the heart of the

project

Provide inputs and extensions services to farmers on check off

Raw producedelivered and

ownership of producemoves away from

farmer

Track aggregation of all produce from all

co-op farmers

Track packaged foodinventory to be shipped

out to market

Order from Distributors & sell in units to consumers

Retail

Tech Platforms

Food Value Chain Transaction Points

Distribute Packaged Products to Retailers, Food Outlets & Key

Accounts


FARM & OUTGROWER ACTIVITIES

INVENTORY MANAGEMENT

PROCESSING

PLANTINGLAND

PREPARATIONSPRAYING

FARM DISPATCH

STORAGE & DEPOTS

PRODUCTIVITY VS ORDERS

WORKER ASSIGNMENT

PER TABLE

GOODS RECEIVED

NOTE

HARVESTING

WEIGH PRODUCT

INSPECT & GRADE

PACKHOUSEMARKET SALES

EXPORT

RAW MATERIAL

AVAILABILITY

PERIODIC PRODUCTIVITY

TRACKING

COLD ROOM

PACKAGED PRODUCE

Food Value Chain – Process Mapping


Warehouse

Proposed Financing Workflow

Buying Clerk

Buying Clerk

Buying Clerk

Farmers

FinancialServices

Loyalty &RewardsTransporters

Processor

23

4

5

6

710

1

Distribution

9

Farmers delivers produce to Buying Centre

Buying Clerk measures farmer produce at

Aggregation Centre to establish quality and quantity

before its transported

Transport of produce from Buying center to Cooler or

Warehouse

Verification ofproduce, grading,

packaging , labelling

Direct Farmer Loans secured against produce deliveries to Cooperative which act as credit limit

Processing of Raw Produce Distribution of SKU

Products

Financed Bi-Monthly payments to Cooperatives

for delivered produce

8

Processor remits payments back to Financial Institution

9

Loyalty Scheme for farmers to drive volume

and frequency in deliveries

Financial Services Workflow


Pilot Project – Muranga County Cooperative Creamery

Fresh Produce, 4 CountiesRegister, Map, Digitize and Transform the Value Chains of Fresh Produce Beans, Fruits & Vegetables in 4 Counties: Machakos, Kiambu, Muranga & Nakuru

Increased Farm Gate ValueIncrease in the price paid to the farmer per KG of produce delivered based on % of the final market price. Fees & Service Provider dues deducted automatically from Digital Wallet upon Buyer Payment

90,000 Registered in AjiraOffer Digital job opportunities to the 90K registered Ajira Members. Job is Registration and Mapping of entire Ward Ecosystem via digital Android mobile devices for the 3 crops

20,000 Digital Jobs CreatedAccurately identify and track all inventory movements, quality standards, purchases, payments and services offered from food to fork Provide monitoring services they conduct using their digital android devices

Map the Stakeholder EcosystemConduct Baseline and Monitoring Surveys on all the market players in a Food Value Chain from the primary producers, service providers, value addition, packaging and sale to the consumers

5,000 SME EntrepreneursIdentify gaps in the market that entrepreneurs can build new business upon or enhance current SME Businesses. Establish new SME businesses to disrupt storage, transport, distribution or payment services and transform them.

Pilot Project Components


Financial Services – Why partner with Virtual City?

Solutions in Focus

SME Jobs Created

• Registration & Mapping– Registration, Tracking and Mapping the points of production, aggregation and distribution from the farm gate all the way through to processing and sale

• Service Provider Services – Identification and Digitization of service provider activities of extension services, produce purchase, storage, transportation, quality tracking & payments

• Agro Park Services – Provision of best practices for the creation of Agro Parks for the Aggregation, cleaning, packing, distribution, sale and payments of ready for market Food

• Digital Extension Services and Input Product Sales at the Farm Level

• Digitization of the Produce Purchase Process at Farm Gate and Collection Centres

• Digitization of the Storage and Quality Management of Coolers and Warehouses

• Booking and Aggregation of Transport Services of the Fresh Produce at each level

• Digitization of mini Pack Houses that package ready for market Food Packs for Distribution

• Digitization of HORECA Retail Sales, Inventory and Payments processes for business owners

• Digital Financial Services of credit, payments, loans and insurance to each stakeholder

Project Deliverables

Increased Price at the Farm Gate for the Primary Producers, improved efficiency of the Service Providers and Reduced Cost of Food at Retail as result of

Digital Jobs that enhance Food Security

Pilot Project Description


Virtual City Approach:

Project Execution Team Expertise

Design Focus towards Local User Experiences

New Entrepreneurship Opportunities

• Technology Innovation - delivering enterprise mobility and multiple cloud platforms• Supply Chain Experience - serving all levels of Agro & Distribution of Food• Experienced Teams - for business needs assessment, technical implementation, new

services development, youth training and ongoing business level support

• Results-oriented approach - recognizing that every stakeholder level is unique and has specific business needs and processes that must be factored into the solution

• Focus on Easy To Use Apps - specific to each persona and can be downloaded and used correctly with minimal digital training

• Locally developed and supported IP - ensure business continuity and increased jobs

• Digitization of Existing Services – providing stakeholder specific automation tools to Value Chain Actors and training them on how to improve their business management

• New Digital Services – that disrupt the status quo or provide innovative new approaches to addressing inefficiencies in the Food Value Chain

Easy to Deploy and Manage

• Enabling Scale – with platforms and digital apps that can be affordably deployed, upgraded and serviced to any entity at any point in the country

• Remotely Managed and Supported – using Digital Telemetry Tools inbuilt into the Platforms and Apps to enable remote diagnostics, servicing and repair from a central cloud platform and from which digital entrepreneurs can create Data Analytics Solutions

Key Success Factors


Project Outcomes – Market Risk Mitigation

Payments vs Delivery Confirmation

Ownership vs Liability

Know Your Customer


Food Value Chain Risk Mitigation

Identify each Entity in the Value Chain, including people (Farmers, Cooperatives, Traders, etc.), plus equipment. Assign and Track the inventory, invoices and payments against each entity at each stage for auto reconciliation

Track, Validate and Reconcile the movements, storage and location of inventory while maintaining information on quantity & quality parameters plus supporting data on GRNs, Transfers, Dispatches, Entities, Owners, etc.

Manage and track the generation of invoices at the two ends of the Value Chain, Farmer and Consumer where Ownership is transferred. Trigger payments from a Buyer (Consumer) to Seller (Farmer) at point of retail sale, including check off & commissions due to all the Service Providers in the Value Chain instantaneously

Track and assign the liability throughout the Value Chain indicating the quantity, quality and value parameters of commodity held at each stage by each Service Provider independent of the OwnershipTransfer from a Farmer right through to a Consumer.Enable direct access to Financial Services Providers,Manufacturer and Insurance Companies to reduce costsand fees charged due to visibility


The JobsDigital Job Opportunities

Farmer, Farm, Coop, Crops, Soil,

Livestock Field Surveys Data Sets

Services

Ag Mobile

WarehouseOperations

DistributionOperations

Field SalesOrder Fulfilment

RetailMerchants

Rural FarmTransport

CommodityTransport

Packaged FoodTransport

Home Delivery

ProducePurchases

InputSales

FarmerConsumer

Agro ParkProcessing

Invoice Discounting

StockFinancing


Feeds Tracking

Seeds Tracking

Fertilizer Tracking

Inputs & Extension Services

Village Aggregation Inventory

County Warehouse Inventory

Processors Inventory

Produce Purchase & Storage

Service Provider Engagement

Farmer& Coops Engagement

Logistics & Services

Engagement

Stakeholder Engagement

Tractor Services

AI Services

Subsidies Allocation

Extension Services Tracking

Financial Services

Loans against Deliveries

Farmer Registration

Farmer Groups Registration

County Extension Officers

Registration of all Players

AgrovetsRegistration

Processors Registration

Service Providers Registration

Warehouse Registration

Agro Parks Registration

Quality Parameters

Tracking

Retail & Distribution Engagement

Service Provider Reconciliation

Stock Reconciliation

Business Management

Farmer Net Dues

Regional Warehouse inventory

Crop Protection Services

Distribution Inventory

Transporter Inventory

Retail Outlets Registration

Inventory Reconciliation

Credit Reconciliation

Payments Reconciliation

Stock Movement Tracking

Input Sales Tracking

Fixed Assets tracking

Supplier Statements

Rewards for Volume

Trader Loyalty points

Loyalty & Sustainability

Farmer Loyalty Points

Input Orders

Order Processing

Produce Purchases

Input Distribution & Extension

Services

Transportation Services

Aggregation & Warehousing

Collateral Based Lending

Trader Sales

Agency Network

Youth Group Services

Farmer Loan Remittance

Insurance Liability Tracking

Buyer & Seller Brokerage

Retail POS Services

Home Delivery Services

Rewards for Frequency

Rewards for Value

Rewards for Quality

Stakeholder Training

Apps Technology Support

Agro Park - Value Chain Services

Cash & bank statements

User Register & Audit Trails

Food Value Chain – Digitally Enabled Services

Supplier Rebates

Trade Credit

Insurance Claims

Deposits and Bonus Schemes

Platform Management

Security Management

Crop Monitoring Services

Farmer Loan Services

Crop Insurance Services

Digital Wallets Services


A look into devices

Ruggedized Mobile Devices to run Apps in Field

Bags RFID tags

Digital Entrepreneurs’ Toolkits

Electronic Platform Scales for Bulk Produce Purchases

Mobile Handheld Scales for use at Farm Gate

Ruggedized Tablet Devices to run Apps in Warehouses

Digital Cloud Devices

for Data Analytics

& Order Tracking


Matrix of Responsibility – Joint Partnership

Technology Platforms

Customer Datasets

• Farmer, Farm, Coops, Provider, Processor, Retail Data

• Produce Purchase & Sale Transactional Data

• Inventory, Quality & Collateral Management

• KPI Tracking of Thresholds & Risk

SoftwareApplications

• Entity Registration, Baseline & Monitoring

• Produce Purchase & Input Sales

• Warehouse / Cooler / Buying Centre Collateral Management

• Financial Voucher Value and Wallet Management

Data Management

• Transactional and Reporting Database Management

• Track transactions taking place in the ecosystem

• Database of sales, orders, inventory and payments

• Transactional and Predictive Data Analytics

ProfessionalServiceCenters

• Physical Points of Presence

• Customer Service & Logistics Centers

• Provisioning & Notifications

• Training

• Installation & Deployment

PlatformManaged Services

• Platform Hosting Services

• Incidence Management & Maintenance

• Technical Services

• Platform Availability

Strategic Partnerships

Government Authority

• Development of Stakeholder Engagement Relationships

• Capacity Building at all Value Chain Levels

• Youth Activation & Local Platforms Promotion

FinancialService Provider

• SME Entrepreneurs Capital for Devices & Platform Fees

• Farmer Digital Finance Wallets for Credit & Inputs Financing

• Farmer Payments Disbursements for Advances and Loans

• Invoice Discounting to Distributors & Retail Outlets

• Commodity Receipts Financing to Coops and Warehouses

• Trade Finance to Buyers and Brokers

• Agribusiness Insurance for Crops & Service Providers

Strategic Communication

• Drives the customer acquisition activities through Partners

• Identifies key institutions as Implementation Partners

• Creates demand in additional Counties and Value Chains

• Develops and Communicates Value Proposition per Partner

Policy Analyst• Runs Analytics and Alert Triggers on Food Security

• Runs Risk Assessment based on Impact Data

• Trade & Predictive Analytics to drive Policy Decisions

Trade Assoc., County and Government Agencies

• Market Universe Understanding and Potential Membership Base

• Rapid Results Initiatives Planning and Execution

• Targets, Project KPIs & Accountability Frameworks

• Proactive Billing & Revenue Assurance for License Fees

Partners – Matrix of Responsibilities


Project KPIs

Increased in Quality Produce

Volumes into the Formal Food

Value Chain for ConsumersQuality

& Availability

FinancialInclusion

FoodSecurity

Farmer Post Harvest Losses

Market Map&

Traceability

Enhanced Farmer KYC,

Inventory & Service Provider

Tracking for Market Access

Increased Access to Credit plus

reduced Time for Payments to

Farmers and Service ProvidersReduction in the Post

Harvest Losses at various

stages of intervention of

Food Value Chain

Project KPIs


• Identify Ajira Digital Scouts to undertake Field Survey Activities for Registration and Value Chain Mapping

• Launch field activities, baseline, mapping, soil samples, monitoring and evaluation at each individual farm, farmer, service provider, trader and retailer

• Ensure each Ajira Scout has Mobile Device a appropriate Mobile App for data collection

• Build Data Repository

Project Phases

• Enable Digitization of Produce Purchasing at Aggregation Centres in each Ward

• Train Produce Purchase Clerks to embrace Digital Technology for weighing, quality tracking and storage of commodities

• Enable Youth to access digital aggregation devices and apps to enable them to create jobs

• Enable Value Added Services Jobs of Transport, Payments, Insurance, Storage, etc. via Mobile Applications that have best practice processes inbuilt

• Enable Digitization of existing Agro Parks and Processors with Devices and Apps for Raw Material Intake, Order Tracking, Pack House Productivity & Packaged Products Dispatch

• Enable mini Agro Parks to be created by entrepreneurs by providing the Agro Park business process maps on Mobile Apps

• Enable digitization of Logistics Services managing inventory, orders, deliveries, purchases, sales & payments on preset Mobile Apps complete with auto reconciliation capability

Field Activities Aggregation & Services Processing & Logistics

• Enable Digitization of existing Distributors, Stockists, Trader, Sales Reps and Retailers business operations

• Enable digitization of Sales Services managing inventory, orders, deliveries, purchases, sales & payments

• Enable Youth Entrepreneurs to establish businesses on preset Mobile Apps complete with auto reconciliation capability

• Enable creation of high value Data Analytics jobs through access to Supply Chain Data

Sales & Distribution


Pilot Project Implementation

DescriptionMilestone

IMilestone

IIMilestone

IIIMilestone

IV Go Live!

V

Project Kickoff1. Contract Completion2. Project Launch

Value Chain Mapping1. Onboard & Train outsourced Ajira Digital Scouts2. Register & Map all Farmers, Service Providers &

Warehouses3. Register & Map Processors, Distributors & Retailers

Platform & Apps Configuration1. Hardware2. Software Modules3. Process Automation & Data Analysis

Monetization1. Order Processing2. Financial Products Mapping3. Transaction Processing

Rollout1. User Acceptance Testing2. Impact Analysis3. Scale Countrywide


Pilot Project Budget

Q1 Q2 Q3 Q4 Total

Budget (US$) Budget (US$) Budget (US$) Budget (US$) Budget (US$)

Budget Area 1 - System Customisation

1 PROJECT INITIALISATION 23,700 - - - 23,700

2 SOFTWARE APPS CUSTOMISATION 110,800 110,800 82,800 - 304,400

3 PLATFORMS CUSTOMISATION 85,900 35,600 35,600 - 157,100

Total Budget Area 1 - Software Customisation 220,400 146,400 118,400 - 485,200

Budget Area 2 - Technical Deployment

4 TECHNOLOGY ROLLOUT - 43,500 30,700 30,700 104,900

5 TECHNICAL SUPPORT - - 49,500 49,500 99,000

Total Budget Area 2 - Technical Deployment - 43,500 80,200 80,200 203,900

Budget Area 3 - Go To Market

6 MARKET MAPPING 35,300 27,800 27,800 27,800 118,700

7 VALUE ADDED SERVICES - 21,600 26,000 - 47,600

8 OPERATIONS EXPENSES 42,600 42,600 42,600 42,600 170,400

Total Budget Area 3 - Market Readiness 77,900 92,000 96,400 70,400 336,700

Budget Area 4 - Security & Integration

9 SECURITY & INTEGRATION 12,600 23,600 23,600 - 59,800

Total Budget Area 4 - Security & Integration 12,600 23,600 23,600 - 59,800

Budget Area 5 - Impact

10 DATA ANALYTICS & IMPACT TRACKING 5,200 36,400 36,400 36,400 114,400

Total Budget Area 5 - Impact 5,200 36,400 36,400 36,400 114,400

Project Total US$ 316,100 341,900 355,000 187,000 1,200,000

Budget Lines


Farmer to Buying Centre

Cooler / Warehouse

Transporter 1 – Buying

Clerk to Cooler

Transporter 2 – Cooler to

Processor

Knowledge Partner

Farmer Receives direct

proportion of produce

value from Processor

Technology Partner

X%

X%

X%

X%

x%

x%

Automated top-up of service

provider wallets

Real time reconciliation of

service provider invoices per kg

or km of produce handled

Real time notification of all top-

ups to all service providers

Z/-

Digitally

enabled Youth

can build

sustainable

entrepreneurial

opportunities

with reliable

income

Finance Service Provider x%

Business Model – Service Providers

Service Providers paid service

fee as opposed to being Traders

Service Providers limited from

being Traders that increase cost


Farmer Advance Paid at60% of delivered value instantaneously

Direct Settlement

System Implementation

Credit Score driven Loans to both Coop & Farmers based on Data Analytics

Farmers end month Net Dues after Inputs & Service Provider deductions

Loan or Advance Fees

Value Identification

Pre-Payments or Remittance Options

Farmer Direct Payments

TX Fee Rate: x%

Revenue ShareFinance Partner: x%

Technology Partner: x%

Loans

1

4

.

3

Financial Model – Loans & Payment Remittances


Project Result – Impact Analytics

Visibility is key around the ecosystem with players keen to understand in real time:

-Farmer Demographics

-Farm & Crop Baselines

-Inputs Applied

-Produce Collections

-Produce Losses

-Inventory Levels

-Inventory Locations

-Quality of Produce

-Value of Produce

-Produce Sales at Market

-Market Buyers

Baseline & Registration

Post Harvest Volumes &

Losses

Inventory Tracking Inputs Tracking

Farmer Payments and

Financial inclusionBuyer Transactions &

Market Value

Impact Analytics


How you will consume insights from the market

A tabular view of all reports –Detailed with drill down capability

A graphical view of all reports – Detailed with drill down capability

A map based view of all reports – Detailed with drill down capability

Director level snapshots Precise and to the point (powerful triggers to drive a decision

Insights – Alerts, Triggers & Trends


• The Dashboard Visualizations represent live dashboard indicator tracking for each value chain or a consolidated view of all projects currently running.

• The targets per project and / or indicator are pre-set and then live datasets compared against this either individually or collectively

• The integrated nature of all the project stages, entities, users and datasets enables a consolidated analysis of an entire project

• The comparative indicators can be edited at any point in time

• This data can also be linked to other datasets such as weather t provide predictive analytics with respect to Yield, etc.

Picture of SuccessRealtime Visibility of entire Food Value Chain


Visualization of Project Activities

• Provide Active and Real Time

Visualizations of all Project

Activities

• Every activity on Platform tracked

on map

• All surveys, services, facilities,

transactions, providers, volumes,

etc. constantly tracked on map

Visualization of Project Activities


% Gender Ratio

• Track Number of:• Youth• Farmers • Aggregation Centers• Farmer Groups• Cooperatives• Warehouses• Transporters• Service Providers• Services• Processors• Distributors• Sales Reps• Retailers

• Tracks the Age of the Youth Entrepreneurs in the Platform

• Tracks the number of Facilities and Providers across different levels in Supply Chain

• Tracks the Percentage Gender Ratio at each level

• Displays various stakeholders on Map and tracks where they are active

# of Farmers, Aggregators & Facilities


Average Land Size in Acres

• Establish Universe of Land under cultivation

• Establish baseline land data for use in developing predictive food security data models

• Develop Policy based on land distribution data

Smallholder is still king!

Average Land Sizes


Average Actual Acreage on Crop

• Through locally based digital youth groups, can affordably determine the exact actual acreage under crop

• Determine exact number of bushes per crop in given areas

• Conduct Counts of crop bushes per location

• Pre determine Fertilizer and inputs requirement

• Provide framework to establish input vouchers based on actual farmer requirements

• Make Policy decisions based on precise verifiable data

• Make Food security predictions based on Data Analytics

Actual Acreage per Crop


Crop Germination rate

• Locally based youth empowered with digital tools can reliably track the performance of crop lifecycles

• Crop Germination Rate• Track germination rate

of specific crops in given areas

• Use local digital youth to periodically undertake survey, pictures, soil samples, etc. as crop matures

• Identify diseases, infestations and incidences through pictures

• Track Crop Performance through periodical pictures

Crop Germination Rate


Inventory Volumes Held in Village Aggregation Centres

• Food price escalations are normally driven by skewed information on the predicted inventory levels of various commodities

• Digitally enabled Youth with minimal training on produce purchase and storage mobile apps can provide an extremely valuable source of real time Commodity levels across country

• Government Policy historically driven by sample surveys can now be better served with actual real time data

• Commodity Price fluctuations traditionally driven by select brokers with own interests, can be stabilized with crowd sourced inventory and quality grade statistics

• Service Providers such as warehouse operators, transporters and legitimate brokers can leverage this information to provide more affordable rates

• The resulting price stability would have an significant impact on food security and planning

VAC’s spread

Inventory Volumes in Storage


Average Market Price per KG

• The average price of product per KG for all counties is recorded by digital youth in real time across the country

• Average prices can easily be established across markets

• Digitally empowered youth can accurately collect and upload market prices from across the country into a central repository

• Buyers and Sellers can base their prices on real information

• Food Prices in the key markets would reach equilibrium faster and in a more stable fashion resulting in lower prices to the consumer

Average Price per KG


Net Benefit per Household

• Net benefit per household• Tracks earnings made per

farmer for each sale• This enables Policy makers

to reliably track inflationary pressures on the agricultural community

• Input providers and manufacturers can create specific product packages to meet the needs of the various demographics

• Researchers can build reliable models based on factual data

Net Benefit per Household


How We Measure Impact

• Digitally Enabled Jobs Created

• Current vs. Previous Volumes & Values

• Outgrower Performance & Consistency

• Affordable Access to Finance for Farmers, Service Providers and Parks

• Affordable Access to Inputs for Farmers

• Gender per Baseline or Transaction

• Quality improvement in Warehouse

• Speed & Frequency in Payments

What We Measure

• Number of Youth in Food Value Chain Services

• Number of Digital Devices and Subscriptions

• Baseline + M&E of Farmers, Farms and Farmer Groups comprising KPI Indicators

• Transaction Volumes per Produce Delivered

• Gains & Losses in Supply Chain

• Productivity at Warehouses and Processor

• Order Completion Rate & Value

• Country Impact Indicators

Measuring Tools

• Active Digital Platform Users

• Mobile Based Baseline Survey

• Mobile Based Produce Purchase

• Electronic Inventory Management

• Digital Payment Platform for pre-paying Farmers and Cooperatives

• Data Analytics Platform for auto tracking of Impact Indicators

• Impact Dashboard Toolkit

Impact Tracking & BeneficiariesImpact Tracking


Project Outcomes - Market Challenges Addressed

Improvement in Poor stocks handling, minimal quality checks and multiple points of trade in value chain that traditionally results in high post harvest losses

Regain Trust eroded due to Fraud and Inefficiency in the management of the Purchase, Sales, Storage and Transportation of raw produce

Address Limited growth and scale due to Lack of access to Capital and Credit to the Farmers compounded by long payment cycles

Control Produce Cost escalation of produce at each point in the value chain, resulting in high consumer price yet low producer payments

Correct Poor adoption / availability of technology specifically designed for agricultural sector at various points in Value Chain

Restrict Low quality inputs and extension services negatively affecting yield and farmer output consistency plus crop quality

Food Security Outcomes


Yield

Increased Farm Gate Value

Jobs

• 20,000 Digital Enabled Jobs

• 5,000 SME Businesses Digitised

• 400,000 Farmers Digitised

• Create Digital Enabled Youth Entrepreneurs

• Provide Platform for Agro Innovations

• Create Digital Enabled Agro Services

• New Jobs along different stages in Value Chain

• 15% Increase Production Yield

• 9% Reduction in Post Harvest Storage Losses

• Best Practices Adoption

• Access to Extension Services

• Higher Quality Inputs

• Improved Monitoring

• New Service Providers

• 150% Increase in Access to Financial Services by SME Entrepreneurs

• 12% Increased Margin of Commodity Market Value to Primary Producers

Impact Targets

Enhanced

Food Security


Access to Markets

Enable access to final markets for farmers as opposed to Farm Gate or local market thus increasing

value of produce

Digitally Enabled Jobs

Create Digitally Enabled Jobs in the Food Value Chain targeting

Youth

Quality Standards

Implement strict adherence to quality standards throughout the value chain to

increase the demand and value per output for Smallholder Farmers in County

Food Security

Identify, Track and Proactively React to the Food Balance Sheet Indicators across the

County to develop Policy Decisions

Increased Farmer Yield ValueIncreased revenue for the farmers by ensuring a

significant proportion of the market price is passed directly to them as opposed to middlemen

Financial Services Access

Increased visibility of volumes, values and

frequency of farmer deliveries improves the attractiveness to

Financial Service Providers

Qualitative ResultsProject Results


Youth

Service Providers

Financial Partners

• Farmer Specific Financial Products

• Entrepreneur & SME Focus

• Invoice discounting opportunities

• increased Access to Credit

Agro Market Buyers & Sellers

Retailers

Digital Entrepreneurs

Researchers

Youth Entrepreneur

• Digitally Enabled

• Successful Entrepreneur

• Personal Fulfillment

• Family Impact

• Improved Livelihood

Merchant

• Customer Satisfaction

• Increased Sales

• Sustainable Business

• Access to Financial Credit

The Food Value Chain

• Reduced Cost of Food

• Improved Food Availability

• Higher Value to Farmer

• Faster Sales to Cash Cycle

Impact Jobs Created Growth in Agro Ecosystem

Youth Jobs

Picture of SuccessPicture of Success

Digital Driven Income

enabling food security through digitization of the food...

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