Being classified as an agrarian country does not mean that Indonesia is free from various food and agricultural problems. Supply chain constraints are the main problems encountered in many areas in Indonesia. As a result, farmers live below the poverty line, and the food quality is not optimal.
Farmers and buyers in the field face several pain points. The main problem faced is the issue of transparency. Farmers experience difficulties because of intermediaries (middlemen) who arbitrarily hike the price. Farmers get an unreasonable price for the crops they sell.
The economic impact faced by farmers also affects the quality of their harvest. There is an inconsistency in the quality of the products sold in the market.
From these various problems, an agritech start-up, Eden Farm, came up with a solution to solve these problems. Eden Farm works with local producers across Indonesia to provide all kinds of food ingredients needed by the culinary businesses. They give their farmers more income and demand forecasts to maintain their production consistency.
Eden Farm positions itself as a B2B agri-tech eCommerce platform that collects, selects, and re-distributes fresh produce purchased from farmers, cutting out the middlemen in the supply chain to offer lower prices, consistent quality, and last-mile delivery to culinary businesses.
So far, Eden Farm’s distribution channels include Horeca, street vendors, EDN/markets, partnerships, enterprises, also resellers.
Armed with problem-solving technology, Eden Farm provides a better life for farmers and ensures food availability for Indonesia.
“Indonesia’s agriculture industry is powerful, as shown by the positive growth of the agri-food sector even during the pandemic. The strong industrial conditions and equipped with innovative business models and technology put Eden Farm in a strong position to carry out all of its development plans in 2021,” said David Setyadi Gunawan, Founder & CEO of Eden Farm.
Embracing sustainability in every business process
Eden Farm’s excellence in running its business is to apply sustainability principles in every business process consistently. Eden Farm builds strong relationships with the community (farmers) and collaborates with various parties to minimize the negative impact of their business.
Eden Farm collaborates with an environmentally friendly organic waste processing company, Magalarva. Foodstuffs supplied by Eden Farm must go through a sorting and packing process in the warehouse before being distributed to consumers. The sorting process can produce 350kg of organic waste, be transported to the Magalarva organic waste processing facility in the Mount Sindur area, and be processed into several organic fertilizers through a bioconversion process.
Magalarva converts organic waste into alternative animal feed raw materials and organic fertilizers by utilizing the bioconversion technology of Black Soldier Fly (Hermetia illucens.) larvae or known as BSF magot.
Based on data from March 2021, 8.6 tons of organic waste were successfully recycled into fertilizer. The fertilizer produced will then be supplied back to Eden Farm and used by Eden Farm’s partner farmers in the West Java region.
In addition, Eden Farm also maintains good relations and empowers its growing community of farmers. Eden Farm has embraced 2,000 farmers, with 65% of its products coming from the farming community to date. Eden Farm targets to increase this number to 85-90%.
Strengthen food security during the pandemic
The COVID-19 pandemic has prompted EdenFarm to strengthen its role in the agritech industry. Eden Farm innovates by building Eden Farm Sourcing Center (ESC) and Eden Farm Distribution Network (EDN).
“The two programs are a continuation from upstream to downstream. ESC is a program of direct collaboration with farmers to determine cropping patterns, the certainty of selling prices, and the amount of farm produce taken every day. At the same time, EDN is a distribution network created by Eden Farm to empower many people. EDN is spread in various locations and is within a 5km radius of the customer so that delivery is faster and more efficient,” explained David.
The ESC and EDN programs aim to protect more than 1,000 partner farmers and food producers who have collaborated with Eden Farm to maintain the consistency of harvest absorption.
Then, ensure that more than 20,000 MSMEs and market traders who have become Eden Farm customers remain productive during this pandemic through the supply of vegetables, fruit, eggs, and necessities at the best prices. Eden Farm also has an installment program for customers to help them restart their culinary business in these difficult times.
Eden Farm’s ability to remain adaptive and innovative amid this uncertain situation strengthens its position as a highly reckoned agritech business player.
Co-Founder & Managing Partner at AC Ventures Adrian Li said, AC Ventures invests in businesses that address large-scale social needs through innovation and technology. And Eden Farm has succeeded in creating a business model that is difficult to imitate. Eden Farm has a strong network of farmers, consumer network with stable demand, and an efficient food supply chain.
“The supply chain system implemented by Eden Farm allows users to get more efficient prices, and farmers also get more optimal prices. We are delighted to partner with Eden Farm in line with their efforts to grow together and lead industry players in the digitalization process,” said Adrian.