Food Loss Prevention and Optimization System (FLOPS)

The specific problem that our project aims to solve is the significant losses in the food industry due to spoilage, damage and other factors that affect the quality and quantity of the product. These losses lead to higher food prices, reduced profits for farmers and retailers, and food insecurity in many communities. According to the Food and Agriculture Organization of the United Nations (FAO), about one-third of all food produced globally is lost or wasted, which has a significant impact on the environment and the economy. These factors lead to significant losses in the production, harvesting, and logistics stages of agricultural products, which can reach up to 40%.

 

Our solution, Flops, addresses these challenges by using artificial intelligence to optimize the food supply chain and minimize harvest losses and waste. By identifying potential losses and matching them to unused processing plant capacity, the solution can reduce the environmental impact of food waste and improve the availability and affordability of fresh produce for communities worldwide. Our project also focuses on promoting economic empowerment and sustainability for farmers through the development of technology-enabled production decision-making systems to ensure that farmers' crops grow well and mitigate the impacts of adverse weather conditions. In this way, we can help farmers earn adequate incomes, facilitate access to food in terms of price and supply, and conserve the world's resources in a way that reduces the carbon footprint.

Our project is a software and application based on artificial intelligence that enables all parties in the food supply chain to make rapid alternative decisions. The system is designed to swiftly match and send information to all parties for managing the push notification process.

Farmers will use the system to sell their remaining products, improve their services and earn more income, while service, machinery, and logistics companies will use it to work more efficiently and find easy access to raw materials. Facilities will be able to make use of their idle capacities, and buyers and intermediaries will also improve their services. Ultimately, the project will prevent food losses, conserve natural resources used for increased production, and strengthen the participating groups economically in every way, while also contributing to the sustainability of the world.

We are also working on integrating the system with the infrastructure of machinery and logistics companies, implementing blockchain technology, and including credit institutions into the system.

The main objectives of our project are to:

• Prevent food losses and waste by connecting farmers with buyers and intermediaries in a timely and efficient manner.
• Conserve natural resources by reducing the need for increased production and utilization of unused capacities.
• Improve the economic situation of all parties involved in the food supply chain by providing them with a platform to sell their products, services, and capacities.
• Strengthen the food supply chain by integrating blockchain technology and credit institutions into the system.

Our project aims to address the impact of climate change on agricultural production and prevent food losses, which are crucial issues for agriculture and food ministries worldwide. By enabling farmers to sell their products quickly and efficiently, we aim to contribute to the UNDP's "No Poverty" and "Decent Work and Economic Growth" goals, while also promoting sustainable agriculture practices that support the "Zero Hunger," "Responsible Consumption and Production," and "Industry, Innovation, and Infrastructure" goals.

Our system is designed to increase agricultural productivity while minimizing the depletion of natural resources and reducing the carbon footprint of farming practices. By preventing food losses, we help to ensure that resources are used efficiently, which in turn supports the "Life on Land," "Life Below Water," and "Clean Water and Sanitation" goals.

We believe that our project has the potential to make a significant contribution to the sustainable development goals, and we are committed to working closely with farmers and other stakeholders to ensure its success. We welcome all systems that align with our goals and contribute to the advancement of sustainable agriculture practices.

Tabit Smart Agriculture Technologies is well positioned to design and deliver solutions that meet the needs of farmers in rural areas. As a social enterprise focused on providing information, technology and e-commerce solutions to farmers since 2004, the company has a deep understanding of the challenges faced by farmers and the potential of technology to improve their livelihoods. The company has a team with extensive experience to design and deliver solutions that meet farmers' needs. The team of agronomists, data scientists and software engineers have the necessary expertise to deliver tailor-made solutions to farmers.

The company has also collaborated with various partners and stakeholders, including banks, Vodafone and Intel, to develop and implement innovative solutions to address farmers' needs. These partnerships have created a strong network of contacts and resources that can support the company's efforts to develop and deliver effective and targeted solutions.

Overall, Tabit Smart Agriculture Technologies' many years of experience and partnerships with various stakeholders have positioned the company well to design and deliver solutions that meet the needs of farmers in rural areas. By leveraging its deep understanding of the challenges faced by farmers and its network of contacts and resources, the company can develop and implement innovative solutions that have a positive impact on the well-being and livelihoods of rural communities.

The solution developed by the project proved to be a prototype rather than a concept. The reason for this is the following:

The project has been ongoing since 2020, which indicates that significant progress has been made in the development of the solution.

The team has developed a matrix to identify potential forms of agricultural commodities and the sectors that will demand them, which shows that the solution has moved beyond a conceptual stage.

The team integrated their solution with existing projects such as Vodafone Farmer Club SMS and Smart Farmer Pocket App, demonstrating that the solution is being actively developed and tested in a real-world environment.

The team developed a decision support software that was piloted in Hatay province, enabling the solution to move beyond a conceptual phase and be implemented in the field.

The team made significant progress in the development of the web-based software, which is 80% complete, and started working on the mobile application, demonstrating that the solution has moved beyond a concept and is being actively developed.

 In Summary the project has demonstrated its commitment to actively developing and improving its solution. While there is still room for further development, the project's progress and achievements so far suggest that it is on track to deliver a practical and effective solution to address the challenges faced by farmers in rural areas.

We have reached 1.5 million farmers in Turkey and 7.5 million farmers in the world with vodafone farmer club. We currently continue our services in 9 countries.  In Turkey /Hatay and the MENA region, which we have chosen as our target market, we plan to reach 50 to 100 thousand people in the first phase.

We are applying to Solve because we believe that our solution can have a significant impact on addressing the challenges faced by farmers in Turkey, especially in the aftermath of the Hatay earthquake. The earthquake has severely disrupted the local food supply chain, and as a result, many farmers have lost their livelihoods and are struggling to recover. Our solution can help address this issue by providing farmers with the tools and resources they need to improve their production and connect with markets, which will in turn create new employment and business opportunities.

However, we recognize that there are several financial, technical, legal, cultural, and market barriers that we need to overcome to successfully implement our solution in the Hatay region. Specifically, some of the challenges we face include:

Lack of access to financing and investment to scale up our solution

Technical challenges related to developing and integrating the necessary software and hardware solutions

Legal and regulatory barriers related to data privacy and protection

Cultural and social barriers related to changing traditional farming practices and attitudes towards technology

Market barriers related to connecting farmers with buyers and improving the efficiency of the supply chain

To overcome these barriers, we believe that Solve can provide us with access to a network of partners and experts who can provide us with the necessary financial, technical, and legal support to scale up our solution. Additionally, Solve can help us connect with potential investors, customers, and collaborators who can help us overcome market barriers and expand our impact.

We understand that Solve is not solely focused on providing funding, but we believe that the non-monetary support and resources provided by Solve can help us overcome the barriers we face and achieve our goals of improving the livelihoods of farmers in the Hatay region.

Our solution is innovative as it leverages a combination of artificial intelligence, web solutions, mobile applications, logistics networks and payment systems to create a comprehensive platform that can match agricultural products with suitable buyers, provide real-time price information and generate decision support results for farmers. The platform's algorithms can match N agricultural commodities with regional producers, provide alerts for crop risks and vegetation periods, and facilitate real-time price matches and bid preparation on web servers.

By automating and streamlining production processes, our solution can help farmers increase their productivity, reduce waste and improve the quality of their products. It can also help food processing plants utilize idle capacity and ensure that products are properly utilized in the food and cosmetics industries. The solution has the potential to transform the agriculture sector by promoting sustainability, creating new job opportunities and improving farmers' livelihoods.

In terms of catalyzing broader positive impacts, our solution can facilitate the exchange of knowledge and expertise between different stakeholders in the agriculture sector, including farmers, buyers, processors and policy makers. By creating a more transparent and efficient market, our solution can help build trust and foster cooperation between these stakeholders. It can also create positive environmental and social impacts by promoting sustainable practices such as reducing food waste and improving resource utilization.

In terms of market disruption, our solution has the potential to disrupt traditional supply chain models by creating a more decentralized and democratized market. By eliminating intermediaries and enabling direct transactions between producers and buyers, our solution can help reduce transaction costs, increase efficiency and improve transparency. It can also help create new market opportunities for small and medium-sized enterprises, thereby stimulating economic growth and development. Overall, our solution has the potential to transform the agriculture sector by leveraging technology to create a more sustainable, efficient and inclusive market for all stakeholders.

Our impact goals for the next year and the next five years are:

Next year:

• Reach 50,000 farmers in Turkey and the MENA region through our platform
• Increase the productivity of participating farmers by  50 %
• Reduce food waste by 10% through better supply chain management and optimization
• Create new job opportunities for 1,000 people in the agricultural sector

To achieve these goals, we plan to:

• Partner with local agricultural associations and government agencies to promote our solution and onboard new users
• Provide training and support to farmers to ensure they are able to effectively use our platform and improve their productivity
• Develop partnerships with food processing facilities and logistics providers to optimize the supply chain and reduce waste
• Continuously gather feedback from users to improve our platform and services

Next five years:

• Reach 250,000 farmers in Turkey and the MENA region through our platform
• Increase the productivity of participating farmers by 50>#/li###
• Reduce food waste by 30% through better supply chain management and optimization
• Create new job opportunities for 10,000 people in the agricultural sector

To achieve these goals, we plan to:

• Expand our network of partners and users to increase the reach of our platform
• Continuously improve our platform and services to meet the evolving needs of farmers and buyers
• Develop new features and tools to enable farmers to further automate and optimize their production processes
• Promote sustainable agriculture practices through partnerships with government agencies and NGOs
• Work with investors and funding agencies to secure the necessary resources to scale up our solution

Overall, our impact goals are focused on improving the livelihoods of farmers and promoting sustainable agriculture practices in the MENA and Turkey region. We believe that by leveraging technology and innovation, we can create a more efficient, transparent, and inclusive marketplace for all stakeholders in the agricultural sector. We are committed to continuously improving our solution and services to achieve our impact goals and create a positive impact on the lives of people in the region.

To measure our progress towards our impact goals, we are using the following indicators:

1. Number of farmers reached: We are tracking the number of farmers who have registered on our platform and are actively using it to sell their products and connect with buyers.

2. Productivity improvement: We are tracking the productivity of participating farmers before and after using our platform to assess the impact of our solution on their productivity.

3. Food waste reduction: We are tracking the amount of food waste generated in the supply chain before and after using our platform to assess the impact of our solution on reducing food waste.

4. Job creation: We are tracking the number of new job opportunities created in the agricultural sector as a result of using our platform.

5. Customer satisfaction: We are gathering feedback from users on their experience with our platform and using this feedback to continuously improve our services.

6. Sustainable agriculture practices: We are tracking the adoption of sustainable agriculture practices among participating farmers and using this data to inform our outreach and training efforts.

7. Partnerships and collaborations: We are tracking the number and quality of partnerships and collaborations we have with government agencies, NGOs, and other stakeholders to promote sustainable agriculture practices and create a more inclusive and transparent marketplace.

8. Reduction in greenhouse gas emissions: The percentage reduction in greenhouse gas emissions can be calculated by comparing the baseline emissions with the emissions after the implementation of the solution.

By tracking these indicators, we can assess the progress we are making towards our impact goals and identify areas where we need to improve. We are committed to using data-driven insights to continuously improve our platform and services and create a positive impact on the lives of people in the MENA and Turkey region

Theory of Change

The "FLOPS" solution addresses the problem of food waste by using artificial intelligence to identify potential harvest losses and match them with unused processing facility capacity. By doing so, it can reduce the environmental impact of food waste while increasing the availability and affordability of fresh produce for communities worldwide. This will lead to a reduction in food losses due to spoilage, damage, and other factors, as well as minimize waste and optimize the food supply chain. In the short term, this will increase the availability and affordability of fresh produce for communities worldwide. In the long term, it will reduce the carbon footprint, protect the world's resources, ensure that farmers earn sufficient income, and make it easier to access food in terms of price and supply.

ActivitiesCollecting current data in primary and secondary regions (2 months)Software analysis (3 months)Planning, software design, and coding of Business Support technologies (10 months)Testing of software, error correction, and maintenance (8 months)Corporate identity work (6 months)Training and orientation processes (3 months)Marketing activities (6 months)Pre-meetings, selections, and contracts with sectoral cooperation parties (3 months)Facility status determination and standardization of product recipes (12 months)

OutputsAI-based decision support systemMatch local processing facilities with unused capacity to products likely to experience harvest lossesReduction in waste and maximization of efficiency for food brokers and procurement officersBug-free AI-based decision support systemBranded AI-based decision support systemTrained personnel to use the AI-based decision support systemAwareness of the AI-based decision support system among food brokers and procurement officersCollaborative partnerships with food brokers and procurement officersEfficient use of processing facility capacity and reduced food waste

The core technology powering our solution is Artificial Intelligence (AI). Our software uses AI algorithms to analyze data from various sources, such as agricultural producers, harvesters, transportation companies and food production facilities, and provide users with real-time information and insights. This can help reduce waste, increase efficiency and improve profitability throughout the food supply chain by enabling users to make faster and more informed decisions, such as identifying alternative sources of supply or optimizing transport routes.

In addition to AI, our solution also plans to leverage blockchain technologies alongside cloud computing, database management and mobile technologies to enable users to access the platform anytime, anywhere using their mobile devices. This allows for seamless collaboration between stakeholders in the food supply chain and ensures that critical information is available when and where it is needed.

We believe that the use of AI technology can help address critical challenges facing the food supply chain, such as food waste, inefficiency and lack of transparency. By empowering stakeholders with real-time data and insights, we can help them make more informed decisions that lead to more sustainable and equitable outcomes for all. Our solution aims to benefit people and the planet by reducing food waste, optimizing resources and promoting greater efficiency throughout the food supply chain.

 As a TAbit we strive for diversity, equity, and inclusion in all aspects of our work. Some of the key principles that guide our approach are:

• Diverse leadership: We recognize that to truly serve the diverse communities of agricultural workers, our leadership team must reflect that diversity. We actively recruit and promote leaders from underrepresented backgrounds.

• Equitable access: We design our technology tools and programs with the goal of eliminating barriers that may prevent equal access for marginalized groups. This includes considerations like language, literacy levels, and internet access.

• Inclusive culture: We foster an environment where all team members feel welcomed, respected and valued. We provide training to raise awareness of unconscious bias and promote cultural sensitivity.

• Addressing disparities: Through our programs and data insights, we aim to identify and address any gaps or disparities in outcomes between different groups. We seek to empower those who have been traditionally marginalized or underserved.

• Community partnerships: We partner with organizations already deeply embedded within and trusted by the communities we seek to serve. This helps ensure the diversity of input and perspectives that shape our work.

• Continuous improvement: We regularly evaluate our progress on diversity, equity and inclusion goals and refine our approaches based on the feedback of the communities we serve. We recognize this is an ongoing journey that requires constant learning and improvement.

In summary, diversity, equity and inclusion are core values that guide and inform HarvestMatch's mission to empower agricultural workers through technology, data and human connection.

With an approach that spans the supply chain from farmers to processors to retailers, FLOPS has multiple potential avenues to monetize its solutions according to the details provided about the project. However, determining which revenue streams are most viable and scalable will depend on further information about its stage of development, target customer base, and available resources.

 Subscription fees: FLOPS would charge an annual subscription fee to customers to access the solution. Fees would likely be charged based on the scale and complexity of a customer's operations. For example:

Small farms and food processors: $5,000 to $20,000 per year.

Mid-sized companies: $20,000 to $100,000 per year.

Large food producers and distributors: $100,000 to $500,000 per year.

Major multinational companies: $500,000 per year and above.

Over time, as FLOPS expands to more customers, revenue from subscriptions can scale significantly. Volume discounts and bundle pricing options could also be offered for customers using the solution across multiple parts of their supply chain.

• Additional services: Beyond the core FLOPS solution, additional revenue opportunities include:

Customization and integration services to tailor the solution to a customer's unique needs. Fees of $50,000 to $200,000 for large, complex projects.

Data analytics and insights services to provide detailed reports and recommendations to customers. Packages ranging from $20,000 to $100,000 per year.

Advisory and consulting services to help improve customer supply chain strategies and operations. Hourly rates of $200 to $500 per hour for a team of supply chain experts and data scientists.

• New features: As the solution expands in capability, FLOPS could introduce premium add-on features for an additional fee, such as predictive demand forecasting, automated procurement optimization, and end-to-end traceability. Fees for premium features would range from $10,000 to $50,000 per year depending on the customer.

FLOPS could also expand into new geographic markets and new segments of the food industry, gaining new customers in areas such as crop production, livestock, and aquaculture.  The platform may also be able to license its technology to other companies and charge an annual licensing fee and revenue share. With machine learning, the solution will become more valuable as more data is collected, providing an opportunity to increase subscription fees for all customers over time.

The Flops digital platform focuses on current Harvest losses in Turkey and MENA and provides support to digitize and make it more efficient with AI-powered software that identifies prospective products and minimizes loss by matching by need, time and derivative product, enabling local processing facilities to utilize idle capacity. The platform's feature set includes:

• Software as a Service (SaaS) subscriptions
• Licensing of the AI and technology
• Consulting and implementation services
• Partnerships with agricultural and food companies
• Grants and funding from organizations seeking to reduce food waste

Our plan for achieving financial sustainability involves a multi-faceted approach that combines revenue generation, operational efficiency, strategic partnerships, and scalable growth. Key components of our financial sustainability plan include:

Create recurring revenue streams: Focus on monetization models that generate recurring revenue, such as subscription fees from digital platform users and commissions from facilitating transactions. These can provide consistent cash flow to cover ongoing costs.

Cost structure optimization: In the early stages, cost-effective solutions for technology development, operations and support will be implemented to keep expenses lower than revenue.

Expanding the customer base: Scaling the number of users on the platform, local markets and farming communities can help increase revenue sustainably over time. Commissions and subscription fees will also increase with more users.

Building strategic partnerships: Partnering with relevant organizations can expand FLOPS' reach and provide new sources of revenue through cross-promotion agreements, shared services or revenue sharing models.

Seek start-up funding: Grants, donations and impact investments can help fund technology development and platform rollout in the early stages before recurring revenue streams can adequately cover costs. This "patient capital" can bridge the gap to profitability.

Continuously test new revenue streams: As the solution develops and matures, FLOPS can test market fit for new revenue models, such as licensing the technology, offering premium services or selling value-added products.

In summary, FLOPS will need a range of strategies to become self-sufficient, such as optimizing costs, growing its customer base, building partnerships, seeking initial financing and continuously testing new revenue streams. But the key will be to generate recurring revenue that scales with platform usage and ideally exceeds ongoing expenses over time.

Significant progress has been made to date in our plan to achieve financial sustainability.  some examples of our successful initiatives:

Revenue Growth: Between 2018 and 2021, we achieved a significant increase in revenue. In 2021, our revenue from post-harvest losses averted and value created was $1 million. This growth demonstrates the demand for our solution and our ability to scale our services effectively.

Pilot Projects: The pilot project we ran in Hatay between 2018 and 2021 helped us refine and develop our product offerings. It reduced post-harvest food losses, increased market access and farmer incomes. Turkey is one of the world's largest producers of fruits and vegetables, and after preparing and implementing the project, we plan to prioritize the Middle East, North Africa, Eastern Europe and Western Asia for exports. 

Needs Assessment and Market Research: We conducted a comprehensive market research and needs assessment through surveys and interactions with various stakeholders such as farmers, traders and suppliers. This research resulted in a 1200-page action report that enabled us to identify the specific needs of our users and develop targeted solutions, contributing to our financial sustainability.

Product Validation:  Our experience in the field and product validation with the market and farming community provided valuable insights into the effectiveness of our services.  By talking and surveying traders, farmers, logistics providers and input suppliers face-to-face, we better understood the market and user requirements and positioned ourselves for long-term financial sustainability.

Diversified Revenue Streams: Our business model includes multiple revenue streams such as trade commissions, trade credit/financing for buyers, and analytics and insights for trade organizations. This diversification helps us reduce risks and maintain financial stability.

These examples demonstrate our commitment to achieving financial sustainability and our ability to adapt and grow in response to the needs of our target users. Our focus on understanding the market, engaging with stakeholders and refining our product offerings has set the stage for long-term success and financial viability.