An African startup is working to close the gap between farmers and retail
Spotted: The food supply chain in Africa is often disrupted by a lack of equipment and data, operational inefficiencies, and poor infrastructure. And at the same time, the continent is also facing the growing effects of global warming. The result is inflated prices, poor food quality, and high levels of waste – all of which have negative effects on consumers and farmers. Moroccan food-tech startup Terraa is hoping to change this with its food distribution platform.
The African fresh food supply chain is highly fragmented and dominated by intermediaries, who buy from farmers at a low cost and sell it on for high prices. Terraa plans to source fresh food directly from farmers and deliver it to resellers at consistent and competitive prices.
Unlike the current system, Terraa will handle everything. Farmers and retailers can place orders using the company’s website or WhatsApp, with no additional investment in new technology. In addition to maintaining a cold chain, Terraa will conduct demand forecasting and ensure consistent prices, allowing both farmers and retailers to plan, and reducing wastage.
The company has recently raised $1.5 million (about €1.4 million) in a pre-seed funding round led by FoodLabs, a European early-stage VC investor and venture studio for food, sustainability, and health. Terraa will use the funding to strengthen its logistics, infrastructure, expand within Morocco, and explore new markets.
Using Terraa’s digital platform is just one innovation Springwise has spotted that helps farmers gain better access to markets and improve productivity. Others include a platform helping smallholders in Indonesia, and a system that rewards coffee farmers for maintaining forests.
Written By: Lisa Magloff