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Japanese Startup Cultivates E-Money Platform for Asian farmers

Business, Business News/Analysis, Feedstocks, Field/Orchard/Plantation Crops/Residues, Funding/Financing/Investing, India, Infrastructure, Japan, Marketing/Markets and Sales, Mozambique, Resources, Sri Lanka, Tools/Decision-Making
August 16, 2018
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by Akane Okutsu (Nikkei Asian Review)  Japanese startup Nippon Biodiesel Fuel is set to launch its AgriNet website that connects farmers with other sectors — such as agrimarkets, equipment dealers and banks — transforming the way agricultural regions do business.

Among other functions, the website will allow villages to sell crop yields collectively to buy equipment and fertilizers, with all transactions made with mobile money.

The system will also offer credit to villages in India, Sri Lanka and Mozambique after accumulating sufficient transaction data, helping to attract financing and build business relationships.

For example, if farms in a region need fertilizer, a dealer can research market conditions in the area to better plan sales activities. Also, if a villager applies for a loan, microfinancial institutions will have the information needed to confirm the person’s creditworthiness.

Data could also be used to create new insurance products for weather-dependent farmers.

…

According to Statista, internet penetration in India was about 30% in 2016, a significant increase compared to 10% in 2011. Moreover, a report by industry group GSM Association showed that sub-Saharan Africa is a key mobile money market, while South Asia led other regions in the number of mobile money accounts opened in 2017.

Nippon Biodiesel will install AgriNet in India from September through a joint venture with JMR Infotech, a local information technology provider. In Sri Lanka and Mozambique, Nippon Biodiesel will partner with the United Nations’ Food Program.

…

Goda (Makoto Goda, CEO of Nippon Biodiesel) explained that many farmers cannot properly store their harvests, which often go bad over time. This makes them susceptible to buyers armed with the knowledge that farmers have to sell low or risk losing out.

He said that AgriNet would empower farmers with information on what products are in demand, and at what price.

…

Nippon Biodiesel Fuel started out growing jatropha for use as biodiesel in Mozambique. After that it branched out into operating kiosks in villages without electricity, providing refrigerators and electric lamps.  READ MORE

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farmersfarmingIndiaInvestingJapanJatrophamarketingMozambiqueSri LankatoolUnited Nations (UN)
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