Will our society have more prosperous life due to direct farm-to-market business model?

In my personal opinion, it is quite challenging for direct farm-to-market business to increase the societies’ livelihood. There are several challenges must be encountered while implementing those kind of business-model.

The first challenge is heavy traffic in large cities that will hamper the products distribution. The farms products are risky goods that can be very fast to decay. Delivery process needs to be done quickly with large quantity in order to make an efficient distribution process. If the delivery process takes long time, then the cost of delivery will be higher.

The direct farm-to-market business model has not solved global food crisis. The business model focuses on improving the farmers’ livelihood and does not focus on the bigger things, world’s food crisis that will occur in 2050. There will be 10 Billion people who need food where current food supplies cannot meet the future demand. We need to increase about 70% in the food production in order to maintain our global food security. As a matter of fact, direct farm-to-market business model has never attracted young people in the rural areas to become farmer.

The third challenge is encountering the middleman. Middlemen’s role is not easy to be replaced in the food supply chain process. The dependence of the market on the continuous supply is highly dependent on their roles. The middleman looks for farm products supplies and the market sells those products to the end user. This dependence has been running for hundred years and it is not an easy task to revolutionize that food supply chain process.

Price stability is the fourth challenge. A lot of companies that delivers direct-farm-to-market services sell their products below the market price. The middlemen can use this problem to suppress the farmers. Farmers who receive low offers tend to reduce the production cost and increase the productions capacity by all means. Chemical fertilizer will be used irresponsibly to stimulate and enforce production capacity that can destroy our nature.

Direct farm-to-market business model is creating their own market mechanism which compete the supermarket and traditional market. There are many people relies their livelihood in this old fashioned market mechanism. I think this is not the way to get win-win solution in our interdependence society. It makes the market competitions worse where it is only beneficial to certain group which is farmers in this case.

Direct farm-to-market business is not an easy business to be escalated. In my opinion, this is not the best way to solve our problem in the society. It will create more problems due to economic instability.

Reference

1. Direct farm-to-market Apps Helps Farmers to Get Higher market price,

http://batam.tribunnews.com/2016/04/12/petani-bisa-jual-hasil-panennya-lebih-tinggi-jika-pakai-aplikasi-online-ini?page=2

2. Excessive chemical fertilizers usage,

http://www.gerbangpertanian.com/2011/03/5-kerugian-penggunaan-urea-berlebih.html

3. Purpose of the middleman in a supply chain,

http://smallbusiness.chron.com/purpose-middle-man-supply-chain-78204.html

4. Role of Middleman,

http://www.citeman.com/352-role-of-middlemen.html

5. Global Food Crisis,

http://ngm.nationalgeographic.com/2009/06/cheap-food/bourne-text/2

6. Food direct delivery,

http://nyfarmersmarket.com/wp-content/uploads/Direct-Delivery-Recommendations.pdf

7. Securing food supplies up to 2050, the challenges faced by the UK,

https://books.google.co.id/books?id=2hTFZlThte0C&pg=PA418&lpg=PA418&dq=direct+farmer+food+delivery+market+mechanism&source=bl&ots=h4hGyM8xbX&sig=h1spSQuft29FKBiIkXZAsN4KXD4&hl=id&sa=X&ved=0ahUKEwjfs6Xr1s_PAhWBro8KHXVQDe04ChDoAQhPMAc#v=onepage&q=direct%20farmer%20food%20delivery%20market%20mechanism&f=false

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