ARE WE AT A CRITICAL CROSS ROAD IN THE BUSINESS OF FOOD?  

We could visualize three parts to dwell, analyze and come on top in creating a thriving business of food – Production (Producer), Input Provision, Credit, Aggregation, Processing, Distribution (Eco-system players) and Consumption (Consumer).


All three have choices to make and must factor in CHANGES, of varying degrees and in different time periods, like

a) Environment (soil and climate / competition and entry barriers / access and quality)

b) Markets ( crop portfolio and price / supply and demand / access and price)

c) Cost of money (ready access and fair interests / unit economics and ROIs / quality and inflation)

d) Risks (productivity and quality / opportunity costs and shelf life / nutrition vs convenience)

Given this, the common problem is in achieving optimal sustainable productivity, profitability and long term growth – be it an individual farmer, business, a single or a family of consumers.

BUSINESS OF FOOD words specifically chosen, even if emotions galore it is and will need to be seen as a business through the chain. We cannot let a section or part of the chain to drive themselves in a downward spiral riding sympathy wrapped approaches, quick fixes, point solutions.

Can’t producers be enabled to take informed choices and not bets?
Can’t eco-system players create intimate deliberate loyal partnerships ? and
Can’t consumers differentiate nutrition and quality and pay right???

The solution could be in pursuing EQUITY AS A TARGET GOAL (given that one cannot exist without the other) in the business of food, for the greater long term good of all parts in the chain.

This does not necessarily mean giving up what is working for one but instead each one taking the courage to lean to the other parts of the chain, learn and share ideas and actions, again with the common goal of taking everyone along and unlocking equitable value in every aspect.

For example, can an Aggregator share their 3 year plan, with supportive data and information to 100 farmers around them to think of voluntarily co-opting, which will start a conversation listing all what can go wrong and how each other are protected (seeds being sown for Equity!). Better than pursuing an over simplified mandi+5% buy back risk-skewed informal arrangement.

Some barriers which exist in pursuing this path, is the Knowledge and Information Asymmetry which exists in all parts, some acute and permanent and some transitionary. Which are being exploited by some, and this goes against creating collective EQUITY and is short sighted.

Given the pace at which the CHANGES are happening and DISRUPTIVE BUSINESS MODELS are put in play (We all wonder if Quick Commerce is now the new gateway to consumer minds, the new norm which all other players and intermediaries have to accept and align to, till another disruption takes over) – the Solution is in removing the Knowledge and Information Asymmetries and in reaching data and science cantered actionable insights to all in the chain.

Re-think traditional methods of knowledge dissemination and information sharing and NOW!

As honest, trusted, customized and actionable knowledge and information becomes pervasive, all parties will be well equipped to chart a path of Equity.


We at Farmitopia are chipping our way and pursuing this path to Equity.