The agricultural industry, particularly for small-scale farmers, has long grappled with significant challenges. Manual labor remains a major burden, coupled with opaque market pricing that makes it difficult for farmers to gauge fair values. Additionally, risky payment methods contribute to financial uncertainty. These issues create a challenging environment for farmers trying to sustain and grow their operations, often leading to inefficiencies and missed opportunities.

HAROCT, a forward-thinking startup, aims to address these persistent issues by transforming the traditional supply chain. The company's technology-focused approach tackles problems like incomplete marketplaces and lack of transparency, offering small-scale farmers tools to optimize their operations. By leveraging technology, HAROCT helps reduce expenses, streamline processes, and open up better market opportunities, empowering farmers to improve their productivity and profitability.

HAROCT also addresses the distribution and marketing challenges faced by small-scale farmers. The company utilizes social media and digital marketing services to boost farmers' visibility and expand their customer base. Their digital B2B marketplace integrates transportation services to improve logistics and reduce costs. This platform ensures transparent and trustworthy transactions, benefiting both buyers and farmers, and fostering a more stable and efficient agricultural sector.

How does HAROCT seek to change the conventional agricultural supply chain into a transparent, more effective framework for small-scale farmers?

Southeast Asia's traditional agricultural supply chain faces several challenges, including inefficiencies and imbalances in supply and demand, fragmented marketplaces, and limited transportation infrastructure. Small-scale farmers are particularly affected by unlevel playing fields, opaque market pricing, heavy reliance on manual labor, unsafe payment methods, lengthy client acquisition cycles, and complex administrative tasks. Additionally, climate change exacerbates these difficulties, making it even harder for farmers to manage and sustain their operations effectively.

HAROCT aims to revolutionize traditional agriculture by addressing both general and specific supply chain problems. Their approach includes a digital B2B marketplace that creates a more efficient supply chain ecosystem by consolidating market participants and improving visibility into volume and pricing. This marketplace enhances transparency at both supply and demand ends and integrates transport services to reduce costs and improve logistics. By directly connecting farmers with buyers, HAROCT fosters trustworthy and equitable transactions, benefiting all parties involved.

HAROCT also focuses on the unique needs of small-scale farmers by digitizing the sales and purchase processes. This reduces reliance on manual labor and administrative tasks, cutting costs and mitigating the risk of payment defaults. The digital platform facilitates transparent transactions, builds trust, and strengthens connections between farmers, investors, buyers, and carriers. These initiatives empower small-scale farmers to focus on producing high-quality goods and thrive in a fair and efficient marketplace.

How does technology help small-scale farmers overcome their particular difficulties, particularly with regard to distribution and marketing?

Small-scale farmers face significant challenges today, including adapting to shifting buyer dynamics and purchasing habits. Despite their expertise in growing high-quality fresh produce, many farmers still rely on outdated supply systems and market procedures that haven’t changed in decades. In contrast, modern commercial buyers, particularly younger consumers, have increasingly moved towards digital platforms, creating a need for new approaches to product and client acquisition.

One major challenge for small-scale farmers is reaching new consumer demographics. Traditional sales methods often limit their access to larger or more profitable markets. HAROCT addresses this gap by providing farmers with access to digital and social media marketing experts. These professionals help develop and implement marketing strategies that utilize digital channels to enhance visibility and attract new customers, ensuring farmers remain competitive in a rapidly evolving market.

HAROCT also optimizes logistics by predicting consumer demand and organizing timely delivery as soon as farmers list their products. This approach minimizes quality loss and maximizes efficiency, enabling large quantities of produce to be mobilized nationwide. HAROCT’s real-time tracking and streamlined logistics improve convenience for all parties, ensuring that fresh produce reaches consumers promptly and in excellent condition.

The effect on environmentally friendly agricultural methods, and how does HAROCT guarantee that these methods can expand to satisfy the needs of an expanding world population?

To ensure the long-term viability of sustainable farming practices, addressing several critical issues is essential. Foremost among these is enabling farmers to achieve reasonable profitability. Without financial stability, sustainable practices often become secondary to immediate economic concerns. Many farmers are caught in a cycle of price and cost competition, which drives them to focus on short-term gains rather than investing in long-term sustainability. Therefore, achieving and maintaining profitability is crucial for farmers to prioritize and implement sustainable farming methods effectively.

Market differentiation is another key factor supporting sustainable farming. In cost-conscious markets like Malaysia, farmers must use innovative marketing strategies to distinguish their products. Effective marketing can help farmers target consumer segments that value sustainability, providing them with the incentive to adopt sustainable practices. Without distinguishing their products and gaining market approval, farmers have little motivation to embrace and invest in sustainability.

HAROCT addresses these challenges by directly connecting farmers with consumers, helping them achieve better prices and profitability. This connection allows farmers to consider and invest in long-term sustainable practices. Additionally, HAROCT offers expert marketing services, including social media and digital campaigns, to enhance farmers' market visibility and appeal to sustainability-focused consumer segments.

Furthermore, HAROCT contributes to sustainable farming by educating consumers about the benefits of sustainable agriculture. This educational effort helps build a market willing to pay a premium for sustainably produced goods. HAROCT also collaborates with legislators to secure farmers' land tenure, promoting confidence in long-term investments in sustainable practices. By fostering fair trade and supporting local producers, HAROCT aims to create a more efficient, transparent, and sustainable agricultural supply chain capable of meeting the needs of a growing global population.

What are the main challenges in convincing farmers and customers to use this new digital strategy, and how has HAROCT overcome them?

Implementing a digital strategy in agriculture faces several hurdles, particularly in traditional settings. HAROCT identifies three main challenges and has developed targeted solutions. A key issue is the reluctance of farmers, who are often set in their ways and skeptical of change. HAROCT tackles this by running extensive education and awareness campaigns that highlight the benefits of digital platforms through real-world success stories and data-driven results.

Technological illiteracy among farmers, especially the elderly, is a major barrier to adoption. To address this, HAROCT has designed a user-friendly platform with a simple interface and clear features. Recognizing that smartphones are more accessible in rural areas, HAROCT also offers a mobile app for managing activities on the go.

The final barrier is the buyer's customary shopping behaviours. Customers may be reluctant to move to a digital marketplace because they are used to traditional buying techniques and worry that it would be less dependable or more difficult. HAROCT's platform incorporates features such as clear pricing, ratings, and reviews that encourage buyer trust. Customers may follow the actual source of goods, view in-depth farmer biographies, and read other customers' reviews according to these capabilities.

HAROCT is successfully tackling the main barriers to digital adoption in agriculture with these all-encompassing strategies. HAROCT is converting conventional agricultural methods into a more effective, transparent, and sustainable digital system by offering training, assistance, and proving the benefits.

The emerging trends in agritech that are pivotal for advancing sustainable agriculture in both developed and developing areas of Southeast Asia.

Emerging trends in agritech are crucial for advancing sustainable agriculture in Southeast Asia, benefiting both developed and developing areas. The Internet of Things (IoT) is revolutionizing agriculture by enabling real-time monitoring and data collection. Sensors track key parameters such as soil moisture and temperature, allowing farmers to optimize water usage and crop health. This technology supports precision farming by addressing the specific needs of crops and livestock, enhancing overall efficiency.

Agricultural robotics is another significant trend, with robots and drones increasingly used for planting, harvesting, and weeding. These technologies reduce labor intensity and increase efficiency. AI-equipped robots can identify and harvest ripe produce, while autonomous tractors handle large-scale operations with precision, further streamlining farming processes.

Precision agriculture, involving data analytics and AI, is key to making informed decisions about crop management. This approach maximizes yields and minimizes waste by ensuring resources are used efficiently. Drones and satellite imaging provide detailed insights into crop conditions and resource needs, playing a crucial role in precision farming.

Sustainable farming methods such as hydroponics, aquaponics, and vertical farming are gaining popularity. These techniques make efficient use of space and resources, allowing for urban agriculture and farming in areas with limited arable land. By reducing reliance on traditional methods, these approaches mitigate environmental impacts and promote resource conservation. Additionally, blockchain technology enhances transparency and traceability in the food supply chain, while agritech platforms like HAROCT improve market access and financial services for small-scale farmers, supporting sustainable practices and better livelihoods.

What’s next for HAROCT?

HAROCT is pursuing several strategic initiatives to revolutionize the agricultural supply chain and promote sustainable farming practices. A key focus is accelerating growth in Malaysia, where targeted campaigns are planned to onboard both farmers and commercial buyers in strategic regions. These campaigns aim to achieve economies of scale and balance liquidity in the marketplace. Increasing transaction volumes is also a priority, as HAROCT seeks to facilitate more transactions to ensure active engagement and economic benefits for all users.

In addition to expanding its presence in Malaysia, HAROCT is targeting growth across Southeast Asia, beginning with Thailand. The platform is being adapted to meet local needs and is currently in beta testing with initial farmers and buyers. HAROCT also plans to diversify its product offerings by entering new agricultural markets, such as fruits. This diversification will help farmers access broader markets and provide buyers with a wider range of products.

HAROCT is committed to promoting sustainable farming practices by supporting organic methods and reducing the carbon footprint of agriculture. The company is also encouraging eco-friendly innovations through community outreach and online workshops. These initiatives aim to educate farmers about the benefits of digitization, online marketing, and the latest technological solutions to enhance farm management and sustainability.

Improving user experience remains a top priority for HAROCT. The company is focused on refining its platform to provide a seamless experience, including user-friendly interfaces, enhanced customer support, and features tailored to farmers and buyers. Given the importance of mobile access in rural areas, HAROCT is optimizing its platform for mobile devices, making it easier for farmers to manage their listings, access market information, and communicate with buyers on the go. These efforts aim to create a more efficient, transparent, and sustainable agricultural supply chain in Southeast Asia.

Reference 

Tech Collective SEA. (2024, June 18). Technology and sustainable farming: HAROCT’s role in revolutionizing agriculture. Tech Collective SEA. https://techcollectivesea.com/2024/06/18/technology-sustainable-farming-haroct/