Eden Farm is a startup with the bold aim of constructing a meals distribution community for Indonesia, the place many eating places are at present depending on markets for recent components.
However this implies excessive markings and unreliable provides for restaurant homeowners and decrease income for farmers, says co-founder and CEO David Gunawan TechCrunch. The corporate, half of the present Y Combinator batch, desires to assist each by simplifying the availability chain, guaranteeing steady costs and lowering meals wastage. Eden Farm at present focuses on recent merchandise and non-perishable merchandise, but additionally plans to increase its product line to meat and seafood.
Launched in 2017, the corporate now provides merchandise from 60 farmers to greater than 200 eating places in six main cities: Jakarta, Tangerang, South Tangerang, Bekasi, Depok and Bogor. Eden Farm is at present overwriting a signed seed spherical. Gunawan says the aim was initially supposed as $ 1 million, however has now risen to $ 1.75 million. Traders embody Y Combinator and Everhaus.
Eden Farm began out as a farm, however as they talked to different farmers and researched the agricultural market, the founders realized that there have been many issues with meals distribution in Indonesia.
"Each restaurant in Indonesia has an enormous downside with provide, stability and excessive worth volatility," says Gunawan. “Costs for fruit and greens can rise and fall round 30% to 50% every single day. Within the excessive season, costs for sure uncooked supplies can rise ten occasions, corresponding to chili in the summertime. "
Eden Farm solves the issue of provide and demand with a cell app that offers demand forecasts to farmers in order that they will plan their subsequent harvests. Historically, farmers don’t promote merchandise on to eating places, Gunawan says. As an alternative, their harvest goes via totally different layers of intermediaries earlier than they arrive at markets.
Eden Farm is ready to assure worth stability and likewise allows farmers to make extra revenue by shopping for wholesale merchandise from them. On the demand aspect, the worth proposition of Eden Farm contains high quality management. Earlier than merchandise are delivered to eating places, they’re inspected and washed. Gunawan says that eating places normally need to throw away round 30% of the merchandise they purchase at markets, however Eden Farm has a 100% assure and reimburses the worth of unusable merchandise. It additionally works with two main markets in Jakarta to ship massive portions of greens and be certain that there are ample shares in the course of the peak season. Gunawan says that the standard management of Eden Farm eating places can assist you save as much as 50%.
Eden Farm desires to construct a community that’s much like Sysco, the American meals distribution big, but it surely should remedy varied issues which might be distinctive to Indonesia.
“We serve a really conventional trade. Farmers have already got their very own manner of planting and their very own tradition, which has lasted for generations, and we try to vary that, "says Gunawan." To start with we didn’t know the right way to discuss to them, the right way to persuade them, however now we have realized quite a bit about the right way to present respect to farmers, for instance, each time we go to a village, we all know the right way to current, to whom we should always present respect, just like the elders there, and we have to do this earlier than the aged introduce ourselves to farmers within the space. & # 39;
The corporate at present processes roughly half of its deliveries below its personal administration and makes use of exterior logistics service suppliers for the rest. Most merchandise come from farms close to the place it’s bought in order that it may be delivered in lower than 24 hours, however Eden Farms goes additional for some greens. For instance, potatoes are bought from farms in Central Java, whereas carrots come from North Sumatra.
Eden Farm normally works with small, conventional farms, but it surely additionally carries merchandise corresponding to lettuce and kale from hydroponics farms. After finishing Y Combinator, Gunawan says the startup will deal with increasing to 5 new cities: Bandung, Surabaya, Bali, Medan and Malang. Because the order quantity will increase, the corporate will deal with smaller markets and, as soon as it reaches 25,000 eating places, increase to meat and seafood.