Food Supply Chain Of The Future
Redesigning our food supply chain from producers to consumer for improvement of cost and quality.
Lead Applicant Organization Name
Lead Applicant Organization Type
Small company (under 50 employees)
Website of Legally Registered Entity
How long have you / your team been working on this Vision?
Lead Applicant: In what city or town are you located?
Lead Applicant: In what country are you located?
Your Selected Place: what’s the name of the Place you’re developing a Vision for?
The selected place for implementation of this project is food end users in and around Addis Ababa which covers about 527 km² in area.
What country is your selected Place located in?
Describe your relationship to the place you’ve selected.
I am Ethiopian. I am citizen and residence of Ethiopia. Agriculture in Ethiopia is the foundation of the country's economy, accounting for half of gross domestic product (GDP), 83.9% of exports, and 80% of total employment. But for a country which depends on growing food to run the country, the industry is at its lowest efficiency. So, as a citizen of the country and responsible citizen of the world, I would like to bring positive impact in any way I can. The better efficiency of the agriculture industry affects me big time too because the more food production there is, the better food quality and price I can eat. So, instead of complaining I decided to join the challenge in a hope that I can make a difference in the future.
Describe the People and Place: Provide information that would be helpful for an outsider who has never been there and may have no context about this Place to better understand the area.
Ethiopia is landlocked country located in Eastern Africa. It borders Kenya, South Sudan, Somali, Djibouti and Sudan. Here are interesting facts about this African nation: Addis Ababa, the capital city, is the highest capital city in Africa, at 2,400 metres. Ethiopia is the second most-populous country in Africa, with a population of over 90 million people by 2015. It is second to Nigeria, which had a population of over 174 million people by 2013. Over 80 languages are spoken in this country. English is the language of instruction in institutions of higher learning. The most widely spoken local languages are Oromo, Amharic, Somali and Tigrinya. Allegedly, the Ark of the Covenant that holds the 10 Commandments is in a church in this country. However, only one man knows how true this is, and he is the only one who guards it. Ethiopia fought against the Scramble for Africa, and it is one of the few countries that were not colonized, though Italians occupied it for at least five years. Coffee was discovered in this country, in Kaffa region. A shepherd discovered this famous beverage when his goats ate the leaves and became restless. Ethiopia has a distinct alphabet. The oldest fossil of Early man was discovered here. Abebe Bikila, an Ethiopian, won Africa’s first Olympic gold medal, in 1960. About 70% of the mountains of Africa are in this country. Lake Tana in this country, supplies the Blue Nile River, which feeds the White Nile River before joining the Great Nile River. This country has been mentioned severally in the Bible and the Quran. Ethiopia has the most UNESCO World Heritage Sites in Africa. The nine sites are Aksum, Fasil Ghebbi, Harar, Konso Cultural Landscape, Lower Valley of the Awash, Lower Valley of the Omo, Rock-Hewn Churches, Simien National Park and Tiya. The Ethiopian Calendar has 13 months and it is 7 ½ years behind the Gregorian calendar. New Year in Ethiopia starts on 11th September and a day later in a leap year. Ethiopia is the diplomatic capital of the continent, since it hosts the headquarters of Kenya African and international organisations such as the African Union, UN Economic Commission for Africa, UNESCO and UNDP. Ethiopia is one of the main destinations for tourists exploring the Horn of Africa. It has a beautiful blend of cultures and delicious exotic dishes. It has numerous airports to get you to any destination within the country. Among these key points of entry is Addis Ababa Airport, also known as Bole International Airport. Source: Jovago.com
What is the estimated population (current 2020) in your Place?
Challenges: Describe the current (2020) and the future (2050) challenges that your food system faces.
A supply chain is a network or a process for a certain product to reach end users from a producer. In the food industry supply chain has enabled us to get food products over seas and is one of the best mechanisms human beings has created. If we see from single point of view which is the availability of food product for end users in a certain area, there is no doubt that food supply chain plays critical role. But we need to understand what really mean for a certain product to reach long distance users and the impact that will make for every factors that may affect in the process.
Let says a farmer spends X amount of cost to grow a certain food product and the farmer sells to end users directly with X+Y price as in Y is the the farmer's profit. The current food supply chain starts from producers and goes to distributors, processors, retailers, preparers and finally to consumers. All the people who participate in this process work for profit and keep in mind there is expense for preservation, transport and other cost. Assuming the summation of the profit of supply chain is Z and delivery cost as D, the cost will increase by Z+D. At a point where the food products reaches the end user, the price will have two possibility which are (X+Y)+(Z+D) or X+(Y-Z-D). The first possibility add more price on the end users and maintain the profit of the farmers and the second possibility subtracts from the profit of the farmers while maintaining the expanse for the end users. A certain specific country have some specific money flow and products are sold to end users based on the financial capacity of end users. This will force the system to favor the second possibility which decrease the profit of the farmers. So, we need to answer a critical question "what is the connection between the environment, Diets, Economics, Culture, Technology and policy of a certain country with the profitability of farmers?". The answer is a bit complex but it will affect every factors mentioned above in one way or another.
Framers knows the true value of the well being of the environment because they have big exposure to it and are dependent on the well being of the environment. So, when farmers get more profit they invest in the environment well being than other parties who have role in the food supply.
More profit for farmers mean better capacity to feed the the growing population with specific farm land efficiently.
More profit for farmers will also result in better quality of food product and will balance or justify the price for end users.
Good farming technology requires investment and cost. More profit for farmers mean better technology.
Address the Challenges: Describe how your Vision will address the challenges described in the previous question.
One of the major problem faced by agriculture is the supply chain process. The fact that the supply chain from farmers or producers to consumer has many stakeholders makes the product has larger cost. The current supply chain starts from producers and goes to distributors, processors, retailers, preparers and finally to consumers. This will bring the cost at maximum because all of the stakeholders work for profit and at each level the cost will be higher and higher. And since it takes time for the food to go through each stakeholders the quality will also be not as good as when the food was at the hand of the producers. This project proposes new supply chain that will omit the majority of the supply chain stakeholders to cut the cost and improve quality of food industry. This is done by connecting each producers or farmers with consumers or end user and have direct money exchange via banking system and a delivery system that only receive money as per distance and weight of the food. The bank will also act as an insurance for the consumer for receiving quality food as per the consumer paid for it. The bank will also pays the farmers and deliveryman and circulate the money via network. From research I conducted in local market, there is big difference of price when farmers sell their products to distributors and finial end users buy from market places or super market. This cost difference is as a result of higher profitability need of middle man/ women and farmers are not getting what they deserve.
I am proposing to develop a way where farmers know their end users by name and deliver food and get paid by banking system. This will enable them sell their product with better price and end users will get better offer. This will lead to more profit for farmers and farmers will use the profit to better the environment.
High Level Vision: With these challenges addressed, now provide a high level description of how the Place and the lives of its People will be different than they are now.
This project is about proposing to mechanism that enable farmers know their end users by name at individual level and deliver food and get paid by banking system. This will enable them sell their product with better price and end users will get better offer. This will lead to more profit for farmers and farmers will use the profit to better the environment.
After this system is implemented farmers will have better life as they deserve, the end users will have better product offer in terms of quality vs cost and every cost will be justified.
Full Vision: How do you describe your Vision for a regenerative and nourishing food future for your Place and People for 2050?
My vision for 2050 in Ethiopia is very specific which is finding a purchasing price that is very profitable for farmers/ producers and very cheap for finial end users/ finial consumers for food industry while benefiting financial institutions which drive the country's economy by new trajectory food supply chain that will make finial end users know who manufactured the food they are eating and know the farmer is benefited as equal value as sustaining their life.
In order for this vision come true I have 2 big rules which are
1. No one except the producers and consumers profit from this supply chain. - If the money that is gone between production and consumption is transferred to some other parties compared to the current supply chain, we really did not do anything except give other broker a chance to take advantage instead.
2. I (the person responsible for implementation of this supply chain) shall not gain any financial profit from working on this project. - If I take some kind of financial advantage over this project, I will be a selfish person who worked on this project just to take advantage of the country's problem. If I ever got some kind of funding via this program, please include financial managing firm that will make sure this hit its target.
The next point is why should others collaborate to make this vision successful?
To be honest, I do not really expect collaboration from business men/ women at first because they are making big money on the current supply chain and why should they help alter this but what if we make all of the middle men/women part of the transformation by offering middle men and women as delivery service providers? As the system grow their income grows with them but this has direct link with gas/ fuel market of the world.
The only way the world will be saved is if we manage to develop a green economy that makes money for the bossiness men/ women.
And this project will find a way to benefit the current middle men and women some kind of purpose with profit, saves the farmers and consumers lives.
In 2050 when this project is implemented, the following will happen in Ethiopia,
1. Farmers will have more profit,
2. Consumers will pay less for food,
3. Food brokers will gain profit as delivery service,
4. Bank will have more cash flow in their system.
In 2050 with out solving the supply chain problem, the following will happen in Ethiopia,
1. Farmers can not keep delivering enough food in the 2050 population.
2. Consumers will pay higher for food as a result from the food industry transferred to importing food.
How did you hear about the Food System Vision Prize?