Suppliers put sell requests into the platform (min price, other details), buyers put buy requests into the platform (max price, other details). During a trading session selling and buying requests will find each other using the rules and then buyers and suppliers will get notifications. Partners can approve the deal, then they will get contacts of each other.
The idea: Farmers should work on the ground, not to sell products. Restaurants should cook, not to search suppliers of food. Growing: Transport, different products, countries, moving the platform to other spheres (building materials).
Developed MVP with trading functionality and user interface. Market is understandable, detected current situation with trading in Poland, what channels are used. Preparation to move the service to production.
We decided to start from Poland, because the agricultural market of Poland is estimated in $15.8 B. Our customers are farmers with 5 - 30 Ha of land. They produce 46.5% of food in Poland. We plan to work with a half of then (262K farmers). This is about $3.2 B flow via proposed service.
If Poland shows good results we will plan to grow for EU agromarket in half of the year. And than move to the global market.
Problem or Opportunity
Farmers have problem with time, especially in summer-autumn. That is why they can't spend their time for looking for customers, as they should work on the ground. They either spend time or loose money using agents. Also detected paper problems. Some time suppliers have problems with transport.
Restaurants (cafes, food factories, exporters) have the same problems. They should cook, not to looking for suppliers of food.
The idea comes from one of Belorussian farmers, who has to sell his products to some agents by low prices. Also we found in Ukraine web portal, which trades wheat like stock exchange does.
Solution (product or service)
We propose to suppliers just to spend few minutes per day to create sell requests and approve deals. They will receive notification about deal. No spending time for calling (in case of active searching in the internet), no big number of incoming calls (in case of staying message on some trade forum), no too small prices (in case of working with 1-3 trade agents).
The trade algorithm gets all sell and buy requests for a product, and find max count of pairs using rules: price(minus transport costs) is ok for both sides, volume is ok for both sides, and so on.
1) Number of desks for free message like this https://agrobiznes.money.pl/ogloszenia/rozne-ziemniaki/ 2) Physical markets 3) Ukrainian startup Agroxy, which is not presented in Poland
Advantages or differentiators
In the proposed platform users have to do minimum actions: just creating their requests and waiting for the notification of a deal. Then user approves it and can contact with a partner, who also approves the deal. No big number of incoming calls. No spending time for searching partners. Prices are the same for the country, not for the small part of the country.
The planed flow of the service is $3.2 B. We plan to take 0.2% commission from both sides. Middle and small farmers (3 - 5 Ha) trades $12.290 per year. The average commission will be about $26 per year. The revenue of the company should be $12.9 M.
Additionally the platform can put advertising of other companies and add logistic service. Income can not be calculated now.