#StartupStory: AgriKool, driving down costs for consumers, increasing profits for farmers
As an e-trading platform, AgriKool collates data and insights that are used to inform farmers about market trends, particularly pricing. A grower simply lists the products that they have available for sale. Buyers engage the grower and agree on the price. AgriKool ensures timely payment and then facilitates the transportation of the produce to the buyer.
Transport and logistics account for significant costs in the agricultural supply chain – as much as 35% of the total operating costs for farmers, says Zamokuhle Thwala, CEO and co-founder of AgriKool. To reduce these costs, AgriKool partnered with a trucking fleet that carefully maps out routes to ensure goods are transported at every leg of a truck’s journey, which increases vehicle and driver utilisation. This method reduces fuel usage, lowering transport to just 20% of operating costs, adds Thwala.
The industry is ripe for overhaul, says Thwala, as farmers take great risk in the agri-value chain, unable to predict whether they will make a profit or a loss. Usually, farmers take their produce to municipal markets in warehouses where farmers and agents (buyers that sell to retailers at a profit margin) gather.
Here agents bid to buy fresh produce. Farmers cannot predict how much they will make because agents determine the final price of goods. The warehouse takes a 5% commission on the value of goods sold, while the agent takes a 7.5% commission – whether the farmer makes a profit or loss. AgriKool cuts out the expenses of both the agent and the municipal market.
We chat with Thwala to find out more.
Briefly tell us about AgriKool
AgriKool is a business-to-business e-marketplace that connects producers and buyers. The agritech startup coordinates the transportation of goods and verifies quality.
How and why did you get started?
I experienced a lack of access to the market when I was a small producer and decided to solve this problem by connecting emerging producers with buyers of fresh produce. The goal is to help small producers take part in the main economy and also improve their household income.
Tell us about your e-platform
AgriKool is an e-trading platform that connects agricultural producers and buyers to facilitate the sale of products between retail buyers and farmers. The agritech start-up provides all aspects of agricultural trading from purchase agreements to the delivery of goods.
Courtesy of Bizcommunity – read full article here.