Our civilisation, since its beginning, has been struggling with the famine issue. A limited amount of food or too expensive products didn’t allow all hungry mouths to be fed. Although, this is a time for a change. Famine can be cured with some improvements in food supply process. Meet e-Harvest – project which aims to bring a revolution to groceries.
The main idea of e-Harvest is to get rid of the middleman between the farmer, trucker and the grocery. For today, products stop on the way to the shop in 7-10 different places, where are charged with some extra fee. It not only makes this process very long and inefficient but also significantly more expensive.
Let’s have a look how described supply chain influence on the final product price. The retail price of Cantaloupe (kind of a melon) cost 1,99 USD per piece, but just 0,26 USD from this amount goes to the farmer and 1,09 USD to the middleman.
The trucker takes 0,20 USD and a broker responsible for the logistic another 0,14 USD. Retailer earns in this scheme 0,30 USD of 1,99 USD. If farmers, truckers and retailers would use e-Harvest platform their income would be much, much higher. Retailer instead of 0,30 USD gains 0,59 USD. The trucker, thanks to the broker elimination earns 0,24 USD from one melon. The most significant change this scheme brings to the farmer who instead of 0,26 USD makes 0,82 USD, so almost 4 times more.
And finally, the consumer pays the lower final price – 1,65 USD instead of 1,99 USD. Sounds like a real win-win strategy, isn’t?
And what about the e-Harvest Hub profits? The platform wants to take a flat fee per order: 3 USD from the farmer and 100 USD from the trucker per load.
Counting that one farmer generates 10 orders a day, the year revenue is worth 10 700 USD.
This is how much e-Harvest can earn on one farmer and one trucker per year.
With the number of 166 million annual orders, it gives the enormous number of eHarvest Hub income - 17 billion USD.
As I wrote before the eHarvest Hub was designed for small and middle farmers as well as individual truckers. Let’s have a look on some world global statistics about possible market size.
According to the statistics provided by the e-Harvest from 60% to 70% of the food we eat is provided by the small or middle size farmers. 90% of the food logistic is made with by the independently owned/operated trucks. Still, the number of income they made is much lower than middleman fee.
Developed countries with high population and economic power drive food imports. For example, the United States imported more than $136 billion fresh food last year, most of which came from over 19 million Latin American farmers.
As I already wrote before, the idea behind e-Harvest Hub is to directly link farmers, truckers and retailers. To built up a platform project inventors raised a $1.2 million round led by the legendary investor, Tim Draper’s VenturesLab Fund and Kaiwu Capital. The e-Harvest APP has been released in 2017 and from that day it is used by the farmers.
If you would like to learn more about the e-Harvest Hub check the links below:
Project website: https://www.ehhico.com/
Social media channels:
Disclaimer: this is NOT investment advice. This is purely my opinion, based on facts found on the project website, whitepaper, social media and etc. Please do your own research and decide if it qualifies with your risk profile.