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Supply Chain for Small Scale Food and Agricultural Waste Collection for Renewable Products …

Supply Chain for Small Scale Food and Agricultural Waste Collection for Renewable Products

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  • “Highly informal transport and trade systems for food crops prevail in the majority of cities; consumers having to face high consumer prices. This calls for the establishment of more formal and sustainable food supply chain systems.”
  • Excluding Forest biomass, Energy crops which have long-standing primary competing uses (slide focus on residues and waste)Excluding Food industry waste, Industrial wastewater/sewage sludge/bio-solids, Fat-oil-and grease, Invasive Aquatic Species, Discarded furniture/construction wood where data is not availableExcluding Old Trees undergoing replantation (coconut and rubber) that represent a one-time cut-off activity every 4 to 30 years (depending on the tree longevity). Potential of 800-2 million tons of biomass over the next 5 years in Ghana (author’s calculations)
  • Additional Carts trailed by a Bicycle The most important factor: manpower during harvesting
  • Key: have minimal silicon content (dirt), moisture
  • Key: have minimal silicon content (dirt), moisture
  • Key: have minimal silicon content (dirt), moisture

Transcript

  • 1. IT-enabled Supply Chain for Small Scale Food Produce:pioneering an M-sales solution in the agricultural sector http://vivusrenewables.com s-richard@vivusrenewables.com
  • 2. Vivus enables the m-commerce of food staples VIVUS has developed a mobile-based sales system enabling women vendors in urban centers to “crowd-purchase” food staples while we are creating a web of proximity, temporary urban wholesale markets to revamp the trade of domestic food staples in Ghana, a model relevant for Sub-Saharan African countries in general. Through our m-sales solution, Vivus helps African countries meet their food security challenges.
  • 3. Urbanization creates a large market for agro-goods ↗ Africa’s cities are fast growing – 480 million people now live in cities ↗The market value of Africa’s food staples is estimated to be US$ 50 billion per year ↗ The export-oriented historical nature of their economies have led to neglect and to an informal, inefficient domestic supply chain that creates high volatility of food prices ↗ Informal vendors (mostly women) dominate the retail sales to consumers ↗ In the last decade maize prices increased by 900% and that of yam by 375% in Accra (highest/lowest) Source: IIED Changing Perspectives Ministry of Agric stats and author’s analysis
  • 4. M-Brokerage + Efficient Logistics =A transformative model for agricultural trade in AfricaVIVUS is the pioneer of a model we call ‘mobile + light infrastructure’ which is especially relevant for Africa– whereby fast mobile penetration prevails along poor infrastructure. With strictly over-the-phoneservices now a reality; we are believers that the FULL promise of MOBILE PHONE USAGE benefits could befurther harnessed by undertaking light, chirurgically relevant interventions to boost/valorizeinfrastructure. Just like African Telecom companies had had to set up a physical network of 3rd party payment points(internet cafés, kiosks) for mobile money transfer services - we are taking this understanding further forsocial impact in agriculture.Our core focus is that we make use of a mobile-based sales system offering DEAL-OF-THE-DAY SMS tostreet women vendors. Because we are offering discounted wholesale prices, we investigate the fullsupply chain to rid out inefficiencies and this is where infrastructure steps in:(1) Tapping into underground infrastructure: we take advantage of “nude” soccer fields and uncompletedhouses to set-up a web of proximity, early morning temporary city wholesale markets.(2) Boosting infrastructure: we source directly from farmers and empower them with “cargo bikes” assuitable mobility solutions to micro-collect crops.
  • 5. WE enable the m-commerce of food staples ↗ Field agents mobile-register and create profiles of street women vendors ↗ Women vendors receive push SMS with attractive deals on food staples at wholesale prices and use return calls to confirm orders (crowd-purchase). Beta solution to be further customized. ↗ Because women vendors can now pre-order food staples, we eliminate waste as unsold produce along with other efficiency gains shared with women vendors in the form of the discounted price ↗ Nude soccer fields, uncompleted houses with large yards and car parkings are all around the city and under-utilized. They will be turned into early-morning only, temporal wholesale markets for traffic-less, proximity distribution.
  • 6. Making the sales of staples an easier and more profitable income opportunity for dozens of thousands of women vendors.
  • 7. WE bring affordable cargo mobility to rural families Cargo motorbikes (up to 2 tons) are affordable and adapted mobility solutions to collect micro quantities of crops held by smallholder farmers.
  • 8. Rural households carry over 90 tons of fuelwood, water and farm produce within a distance of 1 km during the course of a year – often by head portage.A cargo bike will go beyond transporting crops to serve their own daily mobility needs.
  • 9. STARTING WITH GHANASetting up an inclusive fruits and vegetables retail chain in Accra - Ghana
  • 10. The Opportunity for selling food produce↗ Ghana is a $2.8 billion dollar market forthe 14 main local agric-commodities.↗ Accra , the capital city is home to 3.8million people.↗ Accra stretches a vast area of over 60 kmwith just 2 wholesale markets plagued bytraffic (sites for markets have been used forresidential buildings) offering a greatwindow of opportunity to set up temporalwholesale markets MAP OF ACCRA Source: Wikipedia Accra article Ministry of Agric stats and author’s calculation
  • 11. Business Model Two Customer Segments Women vendors Small Businesses• N/A (>50,000) • 15,000 food vendors in Accra. Street vendors account for Hotels, restaurants and chop 14% of all informal non-agric bars. employment in ghana. Source: Accra Municipality Stats, Street Food Vending in Accra Report, WIEGO, Author’s calculation
  • 12. Operating Model 1. We source in 2 ways: (1) through rural markets and (2) a direct purchasing model with farmers. For the latter, we identify a village or a cluster of villages where there is intense foodSustainable production. A lead farmer is designated and farmers join a de facto, non-formalized farm club.Sourcing The lead farmer aggregates food produce (his kitchen space or house yard acts as the collection center). Farmers know our pricing offer a day earlier and use cargo bikes to convey the quantity of produce they are willing to sell this day to the collection center. Trucks then transport the aggregated quantities directly to our temporary urban markets. To acquire cargo bikes, we offer to farmers’ a number of affordable finance solutions and operating mechanisms: a bike-as-a-service center run by village operators OR farmer group ownership through cash-and-carry, barter exchange vs. staples or leasing made through a revolving loan fundFarmers geta new 2. We act as a "hub" trader of crops in Accra. We offer discounted prices of crops via daily deal-market of-the-day SMS to street women vendors and set up temporal, proximity markets where they can procure the cropsFarmers get 3. We weave a country-wide network of farmer-run collection centers’. Coupling the directa new sourcing model with our competitive advantages (mobile-sales solution, proximity markets); wemarket see a great potential for viral adoption.
  • 13. The Impact we see 5-10% x4 5-10%in increased income for more efficiency in in increased income and farmers carrying rural goods social benefits for vendors
  • 14. ABOUT VIVUS LIMITED (3-times winner of early-stage competitions for impact enterprises in 2011 and 2012 )
  • 15. Our Ambition ↗ Vision: Energy and Food Security for Every Individual ↗ Mission: VIVUS uses a blend of technological solutions, logistics and inclusive business models to create new or improve current supply chains related to energy and food distribution in emerging and developing countries ↗ We facilitate the yearly collection of at least 5% of crops within 5 years in Ghana ↗ We expand our model from Ghana to other African countries before or by 2017.
  • 16. Early Achievements↗ Company incorporated , corporate office and staff of 2↗ 18-month market research, feasibility study completed↗ Piloted the sales of food produce with 8 vendors in Accra (plain vanilla, discontinued)↗ Key Technical partners engaged (agric-software solutions provider, market awareness partner)↗ Farming communities identified and already engaged for direct sourcing model↗ Business plan available↗ Winner of the SEED Initiative Award (UNDP-UNEP-IUCN), the Fidelity Future Impact PrizeSwitzerland, the Orange Africa Social Venture Prize. Finalist/Semi-finalist for 3 other globalcompetitions.
  • 17. TeamRichard Seshie, Founder and Managing Director 9 years of experience in the social entrepreneurship space: Ashoka Innovators for thePublic India, Innovest Group, Microsoft North Africa and Green Cross Ghana. Worked fromage 11 till 17 in the family-owned food distribution business in Cote d’Ivoire (restaurant andcatering - $ 200 k in annual revenues). Previous founder of 2 social enterprises.Richard is recognized as a World Economic Forum Global Changemaker Fellow, anInternational Telecommunications Union Young Digital Innovator Fellow , a Pearson fellowfor Social Innovation and an Echoing Green Finalist. Bachelor in Geography from theNational University of Cote d’Ivoire, MBA stop-out from Amity University India andAccredited Corporate Responsibility Professional with the Confederation of Indian Industry.Nabi Seshie, Developer and Communications LeadBTEC National Diploma in IT · Software Engineering (Honors) from the Polytechnic ofNamibia and Bachelor in Marketing/Advertising from the National Communication Instituteof Cote d’IvoireVAS Intern for Orange Group and Manager in the family-owned food distribution business inCote d’Ivoire Talented additions already identified to be recruited once funding is secured.
  • 18. A strong and committed Board of Advisors↗ Bah Safo – Renewable Energy Expert , the ECOWAS Regional Centre for Renewable Energy and EnergyEfficiency↗ Gunnar Jürgens (Dr.) - Managing Director, Continental Safety Engineering International GmbH↗ Kyle Newell – Founder and Principal, the Emerging Market Advisors↗ Niclas Ihren – Strategic Advisor, Respect-Sustainable Business and Former CEO at Globe Forum Sweden↗ Sean Weekes – Former Director of ICT for the Department of Transport & Com of the Republic of Nauru↗ Thomas Hess – Founder of Ghana’s leading web development and internet marketing firm
  • 19. Current Status Integrated Centers Non-adapted Collective Rural mobility Transport SystemUnsold produce that Boost to farmer’s rot income Low income formarginalized actors Boost to street vendors Contact Richard Seshie, Managing Director +233 (0)20 117 10 10 s-richard@vivusrenewables.com Copyright 2012. All rights reserved.