This idea was inspired by the local farmers on our community at San Francisco, ADS. At a young age, We have observed the hardships of these farmers. They have worked so hard yet they haven't reaped the justifiable profit of their harvest. What we have observed is that most of the farmers find it difficult to adapt to the new trends of technology in gaining access to the market, information, and financing. Also the existence of the multiple intermediaries between farmers and consumers. Thus, it affects the consumer, which relates to their concerns such as the quality of goods and its price.
Based on studies, Mindanao has always been called the food basket for it contributes 40% of the country's food supply and contributing more than 30% to national food trade and One-third of its land area is devoted to agriculture but unfortunately, the productivity and the yields of the majority of the small farmers have remained low and uncompetitive.
In this time of COVID-19 crisis, the situation of our farmers and consumers have worsened due to health concerns, travel restrictions, greater social distancing, and agriculture's declining contribution to the GDP.
What it does
We have built an Online e-commerce Platform (Online Palengke) for fresh produce. This will bridge the gap of the farmers and consumers which will synergize the supply and demand, better management of orders for the farmers and consumers, add transparency to the value chain, provides SEAM-LESS PALENGKE EXPERIENCE, and much affordable price of goods.
How we built it
We developed it by building a web platform (Laravel-PHP, AngularJS). We acquire users thru Facebook marketing campaigns, creating partnerships, and affiliations with farm groups and government agencies (DA, DTI, and CARP).
Challenges we ran into
Less adaptive society to innovations.
Society is hesitant in using new platforms.
Farmer's are having a hard time to adapt in using the platform.
Financial for tech, marketing, and operational expenses.
Accomplishments that we're proud of
2018 - Market Validation
2019 - Training, Pitching Competition, & Conferences
2019 - Beta Testing
Apr 29, 2020 - Launching
60+ Farmers & Farm groups
8,000.00+ Sales (May - June)
What we've learned
We have learned how to educate the farmers on how to use our platform.
We have learned from the concerns and feedbacks of the consumers in making our platform a better one.
We have learned from the different perspectives of our mentors and how to deal with changes in the marketing, tech, and operational aspects of our startup.
What's next for AgriKultura
We're into the development of our mobile application.
On-going negotiation with potential partners that will provide logistics, payment services, and liquidity to our Warehouse Receipt Financing.
Soon, we will embed a feature that will allow farmers to gain access to finance. This is what we called Warehouse Receipt Financing, on this feature we will create a cycle from marketing to financing. The legal framework that allows the Warehouse receipt to be utilized as collateral for a credit or loan is the Republic Act no. 11057 or the Personal Properties Securities Act. The process of our Warehouse Receipt financing will be in accordance with Act no. 2137 or the Warehouse Receipt law and Due Diligence will be exercised by our team to mitigate the operational risks and losses.
BENEFITS of Warehouse Receipt Financing (WRF)
It can be used by the farmer to obtain loans from our partner Financial Institution and Investors/Lenders.
- Access to short-term financing by our farmers becomes easier since Financial Institution and Investors/Lenders are assured of collateral that can be liquidated quickly. Hence, Financial institutions and Investors/Lenders can recover losses by selling the collateral goods in our AgriKultura platform, instead of having to undergo long and costly court procedures.