Finshots - Is Amazon entering the agri-tech space?

Finshots

Is Amazon entering the agri-tech space?

Is Amazon entering the agri-tech space? | Finshots Daily Newsletter

In today's Finshots we see why Amazon may be flirting with the idea of venturing into the ambitious farm to fork business


Business

The Story

Amazon is foraying into the agri-tech space. According to one article in the Print  “The Seattle-headquartered giant has begun offering real-time advice and information through a dedicated mobile app to help farmers make decisions on crops and even deploy machine learning technology. The program — which Amazon dubs Reactive and Proactive Crop plans — promises to provide growers with cutting-edge technology and insights.”

If anything, this seems to be a formal foray into the farm to fork business — an attempt to bring fresh produce to your doorstep. And while it may feel like this move was long overdue, there is a whole host of problems any entity will have to deal with when trying to make a dent in this space.

After all, we aren’t just talking about some random commodity here. We are talking about agricultural produce.

Consider for instance the big problem — Seasonality.

Most crops aren’t grown throughout the year. We have dedicated windows for sowing and we have dedicated windows for harvesting. On most occasions, a bountiful harvest keeps everyone happy. There’s enough produce going around and nobody has to worry about supply disruptions. But when you get to the lean periods — when you’re waiting for the next harvest to come through, you may have a problem on your hands. You may have to contend with shortage. And the only way to alleviate this problem is to build storage facilities.

Because if you can’t store the produce, you’re more likely to have a mismatch in demand and supply. And if you can’t plug this mismatch, you’ll have trouble fulfilling customer orders.

This problem is more apparent when you’re dealing with perishable products — fruits and vegetables — something Amazon has already been dabbling with for a while.

Before dispatching the produce to processing centers, Amazon has to inspect and monitor quality at various stages. And they have to make sure the produce stays fresh throughout this journey. For instance, Amazon’s fulfillment centers operate with 4 separate temperature zones (ambient, tropical, chilled and frozen) to maintain the quality and freshness of produce.

And if you’re thinking we’re done here, oh no, we are only getting started. Storage and cold chain infrastructure might do the trick for a while. But running this business at scale would mean going back to the roots.

You have to talk to the farmers. You have to have agreements in place to produce and supply fruits and vegetables of the desired quality. But even the most well-intentioned farmers may not be able to follow through with their promise. They’re often at the mercy of monsoons, pests, droughts, and other such factors. So if you really want to predict both the quality and quantity of your produce, then you have to partner with them as they head into the sowing season.

You’ll have to hand them quality seeds, advise on best practices, and maybe even finance their operation. You’ll have to handhold them through rough monsoons and dry weather. You’ll have to teach them the way. Only then can you finally start making progress.

Which finally brings us to the story today. Amazon may have big ambitions to dominate this sector through their Amazon Fresh offering. But to be able to succeed in this endeavor, they have to fix the broken supply chain just like everyone else. They’ll have to work with farmers, with other intermediaries, and even with the government if they are serious about this thing.

So while the mobile app may be a good place to start, Amazon can only make meaningful progress once they start getting their hands dirty alongside the farmers.

Until then…

Don't forget to share this article on WhatsApp, LinkedIn and Twitter






Have a good day ❤️

Checkout Ditto

You can change your preferences here.

No longer interested? You can unsubscribe here.

You are receiving this email because you have subscribed via our website

Our mailing address: Finception, Ideapad, CIIE, IIM Ahmedabad, Ahmedabad 380015, India


Key phrases

Older messages

Understanding p2p lending

Monday, September 6, 2021

Finshots Understanding p2p lending There's a lot of talk about p2p lending these days. So we thought we could see what the fuss is all about Business The Story Peer-to-peer lending or p2p lending

Weekly Wrapup - The illusion of control

Saturday, September 4, 2021

Finshots Weekly Wrapup - The illusion of control In this week's wrapup, we talk about urban cooperative banks, India's investments in Afghanistan, camel conservation efforts, Chinese tech

What does the GDP growth figure tell us?

Friday, September 3, 2021

Finshots What does the GDP growth figure tell us? In today's Finshots we talk about how India's GDP grew by a whopping 20.1% during the first quarter of FY2022, when compared to the same period

The Chinese Blitzkrieg on its own companies

Thursday, September 2, 2021

Finshots The Chinese Blitzkrieg on its own companies In today's Finshots we provide a new explanation on why China may be attacking its own homegrown companies Business The Story Chinese tech

The case of the disappearing camel

Wednesday, September 1, 2021

Finshots The case of the disappearing camel In today's Finshots we talk about why the camel population is on the decline. Yes, camel population :) Policy The Story India's camel population is

Get ready to pay more

Friday, October 22, 2021

View in browser Bloomberg US Federal Reserve Chair Jerome Powell reiterated on Friday that “it's time to taper,” shorthand for the slow removal of financial supports that held up a once pandemic-

FTT Update: Hailey Bieber Just Invested In Fintech

Friday, October 22, 2021

​ ​ Hi all, Julie here. Excited to hang out with some fintech folks in Austin tonight at Point72 Ventures' happy hour! Jordan is stoked to meet more of you at Money2020 in a few days too. I'm

The Value of Experts

Friday, October 22, 2021

Inside GLG, the World's First "Expert Network" ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Inside the investment craze changing the face of Las Vegas

Friday, October 22, 2021

Big real estate investors known as REITs have been... View in browser INSIDER INSIDER Subscribe Insider Exclusive FINANCE Inside the investment craze changing the face of Las Vegas Big real estate

Asset manager Valkyrie's bitcoin futures ETF will start trading on Friday, reports say

Friday, October 22, 2021

The company's bitcoin futures ETF will start trading in the US on Friday, October 22, rivalling ProShares' own launch earlier this week, reports said. View in browser Business Insider Business

Blimps, Bots, and the Future of Cargo

Friday, October 22, 2021

Plus! Bitcoin's Long March: Pensions; Last Mile; Google's Laffer-Style Tax Cut; Sales ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Fintech News Issue #334

Friday, October 22, 2021

The Other Side of Pandemic See Online Issue #334 2021-10-21 COVID-19 reshaped our financial world. From the way we transact, to our digital knowledge, now it seems like if we can't use cash as we

The Daily StockTips Newsletter 10.22.2021

Friday, October 22, 2021

I've Screened the Market for what I Consider the Best, Safest, & Most RELIABLE Profit Opportunities! (Paid Subscriber Service) ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Blackstone scouts hot tech deals — Deutsche's new office — Las Vegas dealmakers

Friday, October 22, 2021

View in browser Insider Finance Insider Finance Subscribe Hi, and welcome to Insider Finance. This is finance editor Dan DeFrancesco. In case you missed it, the Insider Finance newsletter is going on

[New post] From Pillar 2 to post: is it time for a change in concentration risk methodology?

Friday, October 22, 2021

BankUnderground posted: " Chris Leaney The Herfindahl-Hirschman Index (HHI) is a measure of diversification, commonly used as an indicator to calculate banks' credit concentration risk capital