Globally, one third of the food produced is lost or wasted, and in Kenya the figure is between 20% and 40%. Unlike developed countries, food loss, rather than waste, is a bigger problem for Kenya, and smallholder farmers, who account for 75% of the country's total agricultural output, suffer from poor market linkages and poor market connectivity. They face myriad challenges, including shortages. Fails to meet cosmetic specifications for agricultural products.
In preparation for the transition, several startups are emerging to fill the market gap for farmers. Kenya-based agritech company Farm to Feed is one of the fastest growing companies in the sector. The startup aggregates produce, including imperfect produce that is considered too small, too large or oddly shaped and is often unwanted by distributors, and sells it to restaurants through sales channels, including online marketplaces. and food processing companies. .
Farm to Feed CEO Claire Van Enk joins Anouk Bertien, Zara Venosa in 2021 after pivoting from a nonprofit program providing food to people who lost income during the coronavirus lockdown I co-founded this startup with Mr. She said that while sourcing produce from farmers, it became clear that although food was plentiful, access to markets remained a major hurdle, which led to the launch of the startup. .
“I have seen firsthand what farmers are not selling even when markets return. This is a huge disruption not only to food security but also to the economy,” Van Enck said, adding that food waste and He added that food waste has a climate change dimension. When food rots, it releases methane, a greenhouse gas more harmful than carbon dioxide.
She started a commercial business to tackle bigger problems.
The startup uses aggregators to collect produce from small and large farmers in the East African country's major agricultural regions. The Farm to Feed team then sorts, grades, and ships the products to customers from a warehouse in Kenya's capital, Nairobi.
The company uses leased trucks, but is said to be purchasing trucks equipped with sustainable cooling solutions with the help of a grant from IFC Tech-Emerge. The startup has so far received over 100 in equity and grants from various VCs, angel investors, and institutions such as Catalyst Fund, Renew Capital, Bayer Foundation, Mercy Corps AgriFin, IFC Tech-Emerge, DEG develoPPP, RAIN Challenge, and GSMA. It has raised $1,000,000. Innovation Fund.
Van Enk said it has multiple sales channels in place, including salespeople, a web app and a WhatsApp chatbot for customers who prefer the social commerce route.
Other startups that connect farmers with markets include Ghana's Agritech Farmerline, which also provides access to quality inputs, and Complete Farmer, which finds global markets for agricultural products. They are among the innovators exploiting opportunities in this sector, which is a major industry in sub-Saharan Africa, accounting for around 23% of GDP in a region where 60% of the population are smallholder farmers. The importance of this sector to Africa’s growth cannot be overstated, making it a key focus for innovators like Farm to Feed.
Data collection
In addition to e-commerce platforms, van Enck is building data platforms to collect detailed data such as climate and food loss drivers to improve agricultural outcomes and create a more circular food system. He said he is building it.
Van Enk said that from his company's system for grading food, “we use our data platform to try to figure out some of the reasons behind, for example, produce that looks bad.” If poor quality seeds are the culprit, this can be resolved by partnering with organizations that provide high quality seeds, or if the reason is improper harvesting techniques, targeted training can help can be carried out. ”
The startup is currently conducting value-add trials to explore new revenue streams.
“Increasing value-add creates a real opportunity to increase margins. I see food waste as a very high-impact opportunity and also a very good commercial opportunity,” she said. . “I truly believe there is so much we can do with strange-looking produce. We can create real value, not just for farmers, but for the future of Farm to Feed.”
It is also looking to leverage carbon markets, pioneering a new methodology by Verra, a nonprofit organization that operates environmental and social market standards, to quantify emissions savings from reducing food loss and waste. We are conducting a feasibility study with the hope that this will become a reality. . This will allow startups to earn revenue from the sale of carbon offset credits.