Indah Rahmaniar
IPMI International Business School
Amelia Naim Indrajaya
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Ur-Farm’s vision is to build a place where people can discover products that don't harm the environment and that are sourced from sustainable suppliers. Ur-farm promotes a sustainable lifestyle and creates sustainable values.
Ur-Farm helps to fix the long and complicated agricultural supply chain for small holder farmers and green small businesses in Indonesia by providing an online platform for fair trade and fair price goods from local producers. Ur-Farm's campaign “Eat Locally and Act Sustainable” aims to boost the local economy and promote sustainable lifestyles.
As a start-up, Ur-Farm has received many prestigious awards, which include:
Currently, Ur-Farm's focus is on supplying high quality, organic, and healthy products. Their target market is the middle-income population which also has the most Internet users.
The differentiation between Ur-Farm and other competitors in this industry is on the commission system. Ur-Farm sells certified organic products from small holder farmers and green small businesses. Ur-Farm collects a small commission on every online transaction, but the farmers receive the bulk of the profits from every sale.
Ur-Farm also provides micro-loan schemes and organic farming training. They also donate a portion of revenue to buy seeds and fertilizers for the farmers. The owner said: "We believe that small farmers contribute to climate change mitigation, and through Ur-Farm we deliver more value and impact to our community and environment. For us, business is not only about making profit, it’s about balancing it with the people and the planet (triple bottom line)."
Based on Ur-Farm research, the market size has an estimated net worth of US$1,07 Million. Ur-Farm revenue stream is based on a 20% commission on each transaction.
Since its inceptions, Ur-Farm has shown consistent growth.
The most beneficial result of Ur-Farm is eradicating loan-shark schemes. Previously, the most common agriculture trading system involved loan sharks which took the majority of transaction benefits by exploiting farmers. Ur-Farm is working to fix the supply chain and promote fair trade to farmers.
In Indonesia, the number of the farmers is decreasing which impacts the agricultural output of local food and related jobs and services. One solution to maintaining and retaining Indonesia's agricultural output is by developing and supporting organic farmers, urban farmers, and green entrepreneurs, which is exactly what Ur-Farm has done.
The social impact for the farmers who supply Ur-Farm's organic products include increasing average monthly revenues between 100% and 200%. This increase in revenue supports a higher quality of life and allows them to save and invest money into their farm and crops.
Based on the explanation above, Ur-Farm is a great solution in Indonesia to maintain the supply and demand of agricultural food and non-food products, especially for locally grown, organic products.
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