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Value Proposition:

Partnerships with various farmers within Benguet

Repackaging and bundling of produce

Distribution Channels:

Door-to-door delivery (in-house)

Customer Relationships:

Social media presence

Revenue Streams:

Advertisements

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Resources needed:
A. Physical

Transport equipment

Storage warehouse

B. Intellectual

Partners (farmers) database

Social media branding

C. Human

Administrative and marketing team

Operations and logistics team

D. Financial

Initial capital

Critical activities:

Sourcing produce from farmers

Ensuring efficient logistics and distribution process

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By bridging the gap between farmers and consumers, our key partners and suppliers are local farmers. We will be coordinating with farmers to acquire their surplus produce including those that do not meet aesthetic and other standards of major retail partners (i.e. groceries, palengke, etc.). Through this, we will divert these resources, which are just as good and nutritious as those sold by retailers, from being sent to the landfills as food waste. In order for the produce to reach consumers, front- and back-end logistics are crucial to the operations. Logistics services will be tapped for: (1) the collection of produce from farmers to the assembly point where these will be sorted and packed; and (2) distribution of produce to subscribers. Just as important as the farmers that supply the crops, the efficiency of our service is also dependent on delivery personnel.

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The production of food requires a large pool of resources contributing to the loss of biodiversity, the surge in nitrogen and phosphorous loading, and the use of scarce agricultural land. With one third of the food produced going to waste, this accounts 7% of global greenhouse gas emissions (Macdiarmid et al., 2016).

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For the engagement rate, we envision providing local farmers additional opportunities by purchasing surplus produce. We also aim to provide an affordable and charitable means of procuring local crops.

In terms of cost, primary sources are capital requirements (warehouse) and transportation costs.

The proposed positive impact is providing a sustainable means of procuring surplus produce, which would have otherwise gone to landfills due to aesthetic reasons, and delivering these to consumers at an affordable price.

Other metrics include optimizing production through minimizing operation costs. For stakeholders, metrics include the significant reduction of food waste.

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Food waste is a prevalent issue found all over the world. It is estimated that a third of all food produced worldwide is lost or goes to waste (“Food Loss and Food Waste”, 2019). In the Philippines, more than 1,700 tons of food go to waste on a daily basis (FNRI, 2021).

Although there are existing measures such as RA 9003 or The Ecological Solid Waste Management Act of 2000, the issue of food waste in the country remains largely unaddressed. In addition to the poor implementation of the legislation, other initiatives by non-governmental organizations are generally small-scale and have a limited scope. Moreover, solutions in place hardly tackle food waste before it manifests. In line with this, we intend to introduce a social enterprise where farmers can sell their surplus harvest or those that do not meet commercial standards.

Our team is committed to the following core values:
1. Pioneering
2. Innovative
3. Mutual empowerment

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Optimization and economy
Reduction of risk and uncertainty
Acquisition of particular resources and activities

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a)Production
b)Problem solving
c)Network platforms

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Through our proposed platform, we aim to bridge the gap between farmers and households. In addition to reducing waste, farmers benefit from increased profits while consumers are able to save and purchase produce at a relatively lower price. Taking into account logistical costs, the primary target market would be the local communities within Benguet since the province is one of the largest producers of highland vegetables (Food and Agriculture Organization of the United Nations, 2021).

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As a social enterprise, the business hopes to adopt a low cost strategy to ensure that the vast majority may have access to our goods offered. For as low as PHP 600 - PHP 700, depending on the availability of crops, households can receive a nutritious bundle of fruits and vegetables every week.

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Farm2Fam will earn from its online platform following a subscription based model.

Each package offered by the business would follow a 10% margin from the cost of producing, with an estimated profit of PHP 50-70 per unit sold depending on the availability of fruits and vegetables. Assuming an average of 50 subscribed consumers, Farm2Fam hopes to garner an income of PHP 11,500-12,000 net expenses in its initial phase of operating.

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The biggest drivers of expense would be the business' fixed cost: rent, equipment, and utilities.

To rent a 48 square meter warehouse in Benguet, this would cost the business PHP 12,000 monthly accompanied by an estimated utility bill amounting to PHP 5,000.

To gather the crops from farmers, we would also need three electric motorcycles capable of collecting the produce. Each motorcycle is worth PHP 26,000 that may be payable within 36 months for PHP 982 per month (PHP 2946 for three).

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The variable cost of the company would be reliant on the amount of fruits and vegetables available from farmers.

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Channels:

Gcash

Online Banking

Cash on Delivery

Plans:

Weekly

Bi-Weekly

Monthly

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Economies of scale: This concept may be attained once the business is capable of attracting and attending to a larger number of subscribers. As each batch of goods purchased increases, the cost of each crop would therefore decline.

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In the Philippines, the increasing GDP per capita coupled with increasing household consumption poses the risk for increased food waste if no proper waste management system is enacted as a 3.0% growth in food and beverage expenditure was recorded for households in the 3rd quarter of 2021 (Philippine Statistics Authority, 2021).

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With the problem of climate change increasing the urgency for collective action towards environmental protection, more and more people are made aware of practices that contribute towards environmental degradation. In the Philippines, there has been a growing base of people advocating for climate justice and sustainable practices. While there are grassroots movements for sustainable consumption and an increasing number of local and major businesses taking notes and making steps, there is still much room for increasing awareness and promoting collective action.

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Technological advancements such as machine learning and artificial intelligence have proved to be useful in many applications such as in supply and distribution channels. While local farmers have yet to be capacitated with such technological tools, doing so may lead to more efficient production and distribution, thereby minimizing food waste and losses in the supply chain.

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There are a few platforms that aim to address food waste for households and businesses alike. Though each platform varies in its target market, the models deployed by each are fairly similar. All applications were made to offer discounted food that would have otherwise been thrown out by establishments or farmers to consumers.  Some examples of these platforms include:

Foreign Applications:
1. Too Good To Go
2. Karma
3. Olio
4. Foodcloud

Local Applications:
1. Feast Savers
2. Rural Rising
3. Farmer-Community Assistance Program
4. Veggies for Good

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Solid waste management remains to be one of the biggest concerns in the Philippines particularly in urban extents like Metro Manila. Challenges include improper waste disposal where the majority of biodegradable wastes, which is food waste, still end up in landfills. Unless these are dealt with, the food wastes generated from various sources will continually lead to health hazards and serious environmental impacts such as methane emissions, high dependency on landfill use, ground and surface water contamination, air pollution and spread of diseases.

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In the Philippines, 20-50% of high-value crops such as fruits, vegetables, and leafy greens are wasted and discarded due to perceived quality loss manifested by shriveling, wilting, toughening, browning, and softening of otherwise safe and edible farm produce (Esguerra, 2017). Our solution is to directly connect farmers to families in selling safe, healthy, and affordable farm goods that would have otherwise gone to waste. By providing a platform that proves that imperfect-looking goods are just as nutritious and edible as grocery-bought goods, we are able to solve demand-side prejudices that lead to food wastage.

Not only will we provide an alternative market that will eliminate middlemen that lead to great post-harvest losses for farmers in the country, but we also aim to reinvest all profits to partner communities to educate them on agricultural forecasting. We recognize the greater goal of eliminating food waste in its entirety from both producers and consumers, which is why we will work hand-in-hand with farmers to equip them with the necessary knowledge and skills to prevent supply-side drivers of food waste, thus optimizing farmer income.

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Unique Selling Proposition:
We provide a marketplace for produce that do not meet certain retail standards and would otherwise remain unsold or go to waste.

Considerations:

Newness - Although there are several existing platforms in place, most are focused on offering discounted food that are close to expiration. However, Farm2Fam will focus primarily on newly harvested fruits and vegetables that have aesthetic defects.

Convenience - Through our subscription model, customers will receive a bundle of fresh produce straight to their homes.

Sustainability -  In addition to eliminating food waste, Farm2Fam aims to provide economic value to both farmers and consumers. Farmers are able to gain additional income from crops that would otherwise remain unsold, while consumers can have the same nutritious benefits from fruits and vegetables at a relatively lower price.

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With our goal of reaching nearby communities, social media will be our primary channel of reaching target customers, particularly through Facebook and Instagram. Along with marketing through our own page, we will also tap into community groups and pages found in Facebook. By doing so, we will be able to establish a more home-grown based customer relationship. Moreover, customer feedback will be highly encouraged to improve our services and overall model.

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As a social enterprise, Farm2Fam aims to reinvest half of all of our profits back into the community. While we aim to solve demand-side issues on food waste from farm produce, we will also work hand-in-hand with our farmers to solve supply-side problems. With this, we will be conducting and investing in educating and upskilling farmers on agricultural forecasting. Doing so will help farmers make production decisions, manage risks, and ultimately, match supply to demand so that no food is ever wasted.

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Transportation, electricity, and decaying produce will be the biggest eco-social costs to our social enterprise. However, since all decaying produce to be naturally incurred will be composted and used as fertilizer for partner farmers. We envision that as the social enterprise expands, we will look into producing food-waste generated biofuels to meet our energy demands.

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The main goal of Farm2Fam is to reimagine the way we look at safe, healthy, edible produce. Tons and tons of farm produce go to waste each day because of small, minute imperfections that deem them “unsellable” to distributors and retail markets or groceries. Through strategic partnerships with farmers to sell safe and edible produce that may have otherwise gone to waste, we are able to help ease the losses that farmers incur. Even better, by eliminating the middlemen such as distributers and retail markets, we are able to ensure that farmers reap more from what they sow. Most importantly, fresh farm produce will become more accessible and affordable to everyone.

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The beneficiaries of Farm2Fam are farmers who incur losses due to unsold farm produce, and families who seek safe, healthy, and affordable fruits and vegetables.

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Farm2Fam proposes a solution to food waste from unsold farm goods that further eat into the already meager income that farmers in the country earn from what they harvest. With this, Farm2Fam directly connects farmers to families to provide safe, healthy, and affordable farm produce that would have otherwise been wasted.

Unlike other social enterprises that also eliminate the middlemen between producers and consumers, Farm2Fam specifically targets production surpluses and unsold goods to retailers and distributors. We work towards a goal where demand is not affected by perceptions of perfect-looking produce, and supply issues are eased by projects that help farmers with agricultural forecasting.

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Yani Baybayon
Chief Operating Officer
Aileen Chan
Chief Executive Officer
Jayel Jumagdao
Chief Financial Officer
Cate Malig
Chief Technology Officer

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Farm2Fam will coordinate with local farmers for their surplus produce. The consolidated crops will then be assembled in the warehouse for repackaging. Consumers will then receive their subscription package every week containing various crops subject to availability.

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Social media, particularly Facebook and Instagram, will be Farm2Fam's main mode of communication. Through our social media pages, not only will we be able to reach our target customers, but we will also be able to communicate our advocacy. For those interested, they will be redirected to our website to sign up for our subscription service. The website will be embedded in our social media pages and will also be discoverable through search engines such as Google. Moreover, customer feedback will be highly encouraged, which can be submitted through direct messages in Facebook and Instagram, or through feedback forms within the website.

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At the household level, there are a few remedies for managing food waste at home:

1. Freezing, preserving, or storing surplus fruits and vegetables in cans

2. Identifying the optimal storing method for each type of product (E.g. storing bananas and apples by themselves to prevent their natural gases from affecting other products)

3. Prepare meals ahead of time to prevent spending on unecessary products

4. Reuse leftovers

5. Composting

(Environmental Protection Agency, 2018).

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1. Rural Rising:
An online marketplace made to connect distressed farmers directly to consumers. Here, consumers have the option to purchase in bulk or by kilogram.

2. Farmer-Community Assistance Program:
A social initiative made for rice farmers in based in Camarines Sur. Through the program, consumers can purchase various forms of rice using the online marketplace.

3. Veggies for Good:
An enterprise operated by low-income mothers sourcing and packing affordable crops from local farmers based in Benguet, Nueva Ecija, and Laguna.