eHarvestHub IS SET TO BE A GAME CHANGER IN THE FOOD INDUSTRY!
Here's what YOU need to know about it! ...
If you’re not familiar with FMCG (Fast Moving Consumer Goods) and transport then you might not be familiar with the supply chain and how expensive it is.
THE JOURNEY OF YOUR PRODUCE FROM THE FARM TO THE SUPERMARKET SHELF!
Let me bring you up to speed...
Imagine you want to buy 1kg of apple. The current system doesn’t allow you to deal directly with the farmer. You have to go to a market or a supermarket….and the apples you are buying don’t just go from farm to supermarket. In most cases there will be multiple DCs (Distribution Centers) that the produce will go through before possibly arriving on a supermarket shelf.
The problem with all these stops is there are just middlemen taking a cut, driving up the price of produce, and increasing the time between produce being harvested and being bought by customers.
Apples will be bought by a super market chain, normally in bulk, and get transferred to that super markets DC. They might get sorted and sent out to other DC closer to the final destination, then repacked or on forwarded to the supermarket.
So What...right?
Well at all of those stops, the apples might be sitting in a chiller, and the transport from farm to DC to DC to supermarket isn’t free.
It gets added to the total price you pay when you buy your item.
So those apples which the farmer sells to the supermarket for a few cents/kilo starts to add up.
All of a sudden you’re expected to buy that same item for multiple dollars/kilo, which the farmer sold for a few cents...
THE CUSTOMER ALWAYS PAYS.
Here’s where EharvestHub comes in…
eHarvestHub will initially connect small farms directly to supermarkets.
This means your produce will bypass the DCs.
With eHarvestHub, you produce will go STRAIGHT from the farm to the supermarket shelf.
The price of your produce will be substantially lower, as all those middlemen (the unnecessary drops) will no longer be happening.
WITH eHarvestHub, YOU WILL GET CHEAPER, FRESHER PRODUCE
Sounds good right? I’d be highly surprised if this doesn’t take off like a rocket!
eHarvestHub has built a platform that will connect farmers, supermarkets and truckers together under one roof. At the moment most farmers are making less than 4% profit.
What eHarvestHub is doing is giving farmers the technology to meet food safety regulations and traceability.
eHarvestHub will also give the farmers a marketplace to sell directly to more retailers than they normally would.
You might be asking, uhh why would truckers want to use this?
Well 90% of the food in the USA is transported by independent truckers. So their challenges are very similar to the farmer. There is, in most cases, a broker between the farmer and the trucker which will make the deal to move produce from the farm to the DC and guess what ... .yup the broker will be taking a big cut (and doing none of the actual work!) … that gets passed onto the consumer.
Meanwhile, the trucker (who is doing all the work and taking all the liability) is making LESS THAN THE BROKER!
eHarvestHub wants to remove the middlemen and operate more like Uber, making the farmer the passenger, and the trucker the driver.
The platform that EharvestHub is building means they are not setting prices, it’s an open market!
So the farmer will set their own prices for the produce they are selling and the trucker will set their own cartage rate, which will make it competitive and will drastically drive prices down. This is ultimately what everyone wants.
Do you really want to pay $2 extra for those apples which have probably been sitting in a DC coolstore for god knows how long?!?!
EharvestHub will have the ability for the trucker to combine multiple loads….. which means EFFICIENCY... and will drive prices down even more!
So What About the Retailers?
What retailers need to know is will farmers actually have the volume of produce they require?
Retailers hate getting contacted out of nowhere with problems like “Hey guess what mate? What you want is unavailable” ……. and then they have to go out and try and source it again!
But since EharvestHub has a traceability function, and will use the blockchain to create an inventory management system, retailers can always see real time inventory.
Retailers will know EXACTLY what is available, so the industry becomes more transparent.
Another thing retailers can do on the eHarvestHub platform is place orders ahead of time.
eHarvestHub essentially creates a FUTURE PRODUCE MARKET before the harvest even begins, and the trucker is booked ahead of time.
AGAIN the price will be driven down!
So, why does EharvestHub need a cryptocurrency…. couldn’t this be done in fait?*
In the business world getting paid ON TIME is a luxury, most don’t.
This is also the case for truckers, ‘do the job get the reward’ … well for truckers it’s more like ‘do the job hope for the reward’.
This shouldn’t be the case!
But we can change this with a SMART CONTRACT!
First you need to have the actual money to setup the SMART CONTRACT. Then the price is set.
How a Smart Contract Works. When the produce is picked up by a trucker and delivered to this address. BOOM. Contract executes and the trucker is paid then and there!
Another important thing to remember is that apples, for example, aren’t grown at the same farm all year round. So all of a sudden cross-border payments are a thing!
That farmer across the ditch can get involved and then all those borders are not a thing anymore because it costs the same to send crypto to someone 5 meters away from you as it does to send crypto to someone on the other side of the world.
CRYPTO HAS NO BORDERS SO CROSS-BORDER PAYMENTS BECOME A THING OF THE PAST
Will eHarvestHub Work in the Real World?
EharvestHub is currently running in California. It’s a working platform, so that’s great, you don’t need to worry about MVP. They have farmers, truckers and retailers already using the platform.
Their ICO starts in April 2018
There will be a maximum of 126mil (ish) (125,999,950 to be exact)
60% will be sold @ ico … that’s great!
The token is called EHH (eHarvestHub).
It’s an ERC-20 token built on the Ethereum network which will sell for around 0.30USD and their goal is to raise 15mil USD which will be used to grow the business, which will consist of implementing more blockchain technology and to get more ‘boots on the ground’ to talk to more farmers
Another important thing to mention is this isn’t just a good idea.
The team at eHarvestHub have done the research and understood what the farmer, trucker and retailer need and want and have build product to suit. The money for eHarvestHub has came from venture capital. The CEO Alvaro Ramirez is also good value. He appears genuine and gives the impression he cares about the industry and what he’s doing.
My final thoughts
eHarvestHub is already a working product, and I can see it taking off. The fact that it’s already built and working is amazing. They are estimating they will generate over 150,000 orders on the platform. The fact all these middlemen will be removed is great - the more efficient and transparent the industry gets, the better it is ……..for EVERYONE.
DISCLAIMER: THIS IS A PERSONAL BLOG POST. I HAVE NO OFFICIAL AFFILIATION WITH ANY OF THE COMPANIES THAT I DISCUSS. THE CONTENT IN THIS POST SHOULD NOT BE TAKEN AS FINANCIAL ADVICE. DO YOUR OWN HOMEWORK TO MAKE AN INFORMED DECISION FOR YOURSELF
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