Innovation

Mayani recognized the transformative potential of technology in reshaping commerce in the Philippines while acknowledging that, "While it empowers people, some people are left behind by the dividends of technological growth. Not everyone benefits from technology", said Mr. JT Solis, Co-founder and Chief Executive Officer (CEO) of Mayani.

Despite the growth of e-commerce in the Philippines, Mayani observed that agricultural products were often overlooked online, and farmers faced challenges with oversupply, leading to wastage. According to Mr. Solis, this realization prompted Mayani to focus on "underserved communities such as farmers and fisherfolk who lacked e-commerce knowledge and access."

In response, Mr. Solis (CEO), along with co-founders Jeff Barreiro (Executive Chairman), Ochie San Juan (Chief Farmer), and Ronald Bime (Lawyer) and a team of dedicated engineering and logistics experts came together to address these gaps and "embark on a mission," as Mr. Solis highlighted. They founded and launched Mayani in October 2019, leveraging their collective expertise to maximize the use of technology in agriculture and make it "a level playing field for everyone."

Mayani's e-commerce platform, Mayani.ph, revolutionizes the agricultural supply chain by making a wide range of agricultural products accessible to a broad customer base of households and commercial buyers. According to Mr. Solis, this "digital approach" is used for "logistics and supply chain to be able to deliver to customers," ensuring efficient delivery of fresh produce ordered through the platform. Simultaneously, Mayani maintains a hands-on "physical approach" by "closely working with the farmers and fisherfolk on the ground" to ensure that agricultural products meet high standards of quality and sustainability. By blending digital innovation with direct engagement with farmers and fisherfolk, Mayani enhances market access for underserved communities, promotes sustainable agriculture practices, and empowers them to thrive in the digital economy.

Inspiration

As narrated by Mr. Solis, Mayani's journey began when the Chief Farmer sought the expertise of the CEO, who had a strong background in e-commerce and other co-founders, to support his cooperative in Lian, Batangas. The cooperative is comprised of about 60 members who grow and harvest vegetables, selling only at the nearby wet market. The founders then envisioned a way to "bridge them to the market" and move the harvest from one point to another "in a digital way." To test their idea, they launched a "mini platform" through a Viber group with people they knew and gauged if people would pay for this service. In the Viber group, they announced the weekly harvest schedule, took orders in advance and delivered the produce to buyers on the same day as the harvest. The platform received positive feedback from the buyers, which validated their idea and led to the migration to an e-commerce platform, Mayani.ph.

From its humble beginnings, Mr. Solis shared that Mayani has been deeply anchored in the values of "grassroots compassion, innovation, and a healthy disregard for the impossible." Through direct engagement and conversations with the farmers and fisherfolk, the founders exemplify their commitment to grassroots compassion as they "know what they are going through and see their utterances and the nuances of their problems," Mr. Solis mentioned. Mayani also sought innovative solutions to address their challenges and "use technological innovation as a force for good to be able to do good." he said. Even when others deem it impossible to work with farmers and fisherfolk and "achieve digital agriculture," a healthy disregard for the impossible drove Mayani's founders to pursue significant and meaningful change. He recalled Nelson Mandela's quote, "It always seems impossible until it's done". Mayani embodies this principle by "doing things that are bigger than life and actually making things happen despite the odds," he added.

Overall impact

What began with "one cooperative bridging to the market has become the Mayani that we have today" Mr. Solis said. He added that Mayani now has a "network of over 144,000 smallholder farmers and fisherfolk spread across eight regions of the Philippines," showcasing the power of its innovation in creating a scalable and impactful business model.

According to Mr. Solis, Mayani envisions driving the "revitalization and overall improvement of the agricultural sector" in the Philippines, "significantly contributing to nation-building." By increasing rural incomes, Mayani significantly contributes to "poverty reduction in rural areas, particularly in provinces where the workforce is heavily involved in agriculture." Mayani "modernizes Philippine agriculture through sustainable farming practices" to boost productivity. Moreover, Mayani "drives rural financial inclusion through its access-to-credit services." Achieving these goals means reaching a point where every crop planted through Mayani increases the farmer's income and enhances their climate resilience and access to financial services. Mayani aims to demonstrate its "multiplier effect" on Philippine agriculture, showing that "for every crop planted and marketed through Mayani", there is a measurable "increase in income for the farmer, an improvement in climate resilience, and a significant contribution to financial inclusion through better access to financial services".

By leveraging technology and their expertise in agriculture and e-commerce, Mayani boosts rural incomes, uplifts the lives of smallholder farmers and fisherfolk, and fosters a more sustainable and climate-resilient agricultural ecosystem. Mayani empowers smallholder farmers and fisherfolk through "sustainable access to market, inputs, and credit" (Mayani, 2023). Mr. Solis explained that Mayani "boosts rural incomes by providing access to markets and inputs, and drives rural financial inclusion by facilitating access to credit" and enables farmers "to invest in sustainable inputs and practices through the data from Mayani's digital platform." Through their innovative platform, they streamline supply chains, reduce post-harvest losses, and promote sustainable farming practices, thereby contributing to the long-term sustainability and resilience of the agricultural sector in the Philippines.

Source: Mayani. (2023). About Us - Mayani. Mayani PH. https://mayani.ph/about-us/

Business benefit

Mr. Solis shared, "According to the Philippine Statistical Authority, roughly 40% of the workforce is involved in agriculture, with over 10 million smallholder farmers and fisherfolk who are considered to be among the nation's poorest." Despite this, "agriculture significantly contributes to the country's GDP." By sizing the market, Mayani identified a "$20 billion opportunity for a business that provides access to markets for smallholder farmers and fisherfolk, access to agricultural inputs such as seeds, feeds, and farm implements, and access to credit for financial inclusion", he said. Mr. Solis further mentioned that the "agricultural credit gap alone is at $6 billion" reflecting the unmet demand for financial services among smallholder farmers and fisherfolk, "and more for the market size for inputs and new markets." With their innovation, Mayani not only supports the livelihoods of smallholder farmers and fisherfolk but also taps into a vast and underserved market, potentially generating significant business growth.

Mayani's innovation has had a transformative impact on its business, turning "big problems into big opportunities," as Mr. Solis noted. He mentioned that Mayani saw the "pandemic as a growth catalyst for Mayani and other social enterprises." The pandemic amplified many challenges, particularly inefficiencies within the agricultural system, allowing solutions like Mayani's platform to scale rapidly during a crisis. Over time, Mayani saw a significant increase in its order volume, growing "to roughly 200 orders a day," said Mr. Solis. Their ability to leverage the pandemic as a growth catalyst and turn challenges into opportunities for growth has been central to their success.

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Social and environmental benefit

Farmers in the Philippines typically have "small, fragmented landholdings, averaging less than two football fields, or about 1.2 hectares", according to Mr. Solis. This limited land size restricts their produce, resulting in lower earnings for the farmers. To address concerns about the "fragmented and disorganized supply chain," Mayani aims to organize the supply chain directly to the market, "making it fairer and boosting rural incomes" by ensuring that farmers and fisherfolk receive a larger share of the transaction gains. Traditionally, "transaction gains were often captured and monopolized by middlemen," and "several layers of middlemen held a lot of information," he added. Farmers and fisherfolk often remained unaware of the final selling prices of their produce, while consumers had no insight into fair pricing and relied on trader-set prices.

By eliminating intermediaries, Mayani has enhanced transparency in the agricultural market. Farmers and fisherfolk now have direct access to market information and pricing, allowing them to receive fairer compensation for their produce. Consumers also benefit from more accurate pricing, fostering a more transparent and equitable agricultural marketplace.

Mayani's innovation allows farmers and fisherfolk to "increase their capacity to cope, adapt, and mitigate the impact of climate change," said Mr. Solis. As a social enterprise providing market linkages and purchasing their produce, Mayani identified an opportunity to influence farmers' and fisherfolk's practices by encouraging sustainable methods. By promoting these methods, Mayani helps farmers and fisherfolk adopt practices that enhance their productivity and promote "climate resilience through farming practices."

Mayani also provides them access to climate-smart agri-inputs. For example, Mr. Solis mentioned that Mayani supplies "hybrid seeds that are drought-resistant" on a "farm now, pay later" basis, ensuring that farmers can still "grow crops and maintain their livelihoods even during adverse weather conditions like El Niño." With this approach, farmers and fisherfolk adopt more sustainable practices without immediate financial burden. This commitment not only supports the productivity of farmers and fisherfolk but also promotes long-term environmental sustainability.

Interview

JT Solis, Co-Founder and Chief Executive Officer