After a single operating season, we are proud to announce that Jiva achieved, on average, 25% market share in our key operating areas! That means that one out of every four metric tonnes of corn is purchased by a Jiva agent.
This result, after a single operating season, is unprecedented for a new entrant in a trust-based market where traditional relationships trump newcomers and human interactions are favoured over digital interfaces. We believe this achievement indicates that Jiva’s hybrid human-technology delivery model is working and that our users and agents find value in our products.
How does Jiva differ from traditional harvest buying?
Jiva differs from traditional methods of harvest purchase in several key ways. Read on to learn more:
Price Transparency: On the Jiva application or through our call centre, farmers can access daily prices in their area. This tool empowers them with the information they need to choose the right buyer, triangulate the value of their crop and plan for future cycles. Further, when ready to sell, farmers can see the breakdown of the price they are being offered, including the costs for transport and logistics, processing, labor and other factors.
Scheduled Pickup: Farmers who wish to sell to Jiva are matched with Jiva Agents (called “Sahabat Jivas” in Indonesia). Through the application, a farmer raises their intent to sell and their Sahabat Jiva is notified. From there, the Sahabat Jiva schedules a pick-up time and may even arrange for tools and labor. This feature allows farmers to harvest at the right time, not just when the buyers are in their area. Scheduled pickup also reduces travel time for farmers, who are often not able to transport their harvests to meet buyers, or for whom transport greatly reduces the quality of the crop.
Honest Scales: For many farmers, the weighing process is not a joyous occasion. Unable to audit the number given to them by local traders, they are at the mercy of the scales, which may be rigged in the trader’s favour. Sahabat Jivas have turned harvest weighing into a celebration, allowing farmers to test the scale and bring their friends and family along. Many farmers have reached their highest weight ever due simply to the honesty of our scales.
Better Tools: After weight but before final purchase, Sahabat Jivas must determine the quality of the crop. Many traditional traders will look at the corn, squeeze it to approximate its moisture content then quote a price to the farmer. Due to a lack of proper tools, farmers are again unable to audit the quality determination. At Jiva, we use digital moisture meters to accurately assess the quality of the crops and allow the farmer to observe the process, then explain the Jiva price for that quality.
Cash at Point of Sale: We pay farmers immediately for their harvest because we know the importance of shortening a farmer's cash cycle. The cash at point of sale model allows farmers to deploy that cash immediately, whether it be on school supplies for their children or farm supplies for the next cycle. Local traders, by contrast, will take the harvest, sell it and then pay the farmer weeks later. Sometimes, the farmer will get far less than they were promised.