Aglonera’s pivot connects farmers directly to end-consumers

The Indonesian 2020 TFF Finalist team Aglonera was established as a digital marketplace sourcing food from farmers directly for food vendors. This saved time and costs for the food vendors, while improving the quality, nutrition and sustainability of food provisions. Due to Covid-19, they have pivoted their business in May 2020 to sell directly to the individual end-consumers and businesses in Bekasi, a city located at the Eastern border of Jakarta.

Why did Aglonera pivot?

COVID-19 lockdowns have made important stakeholders drop out of the supply chain, and logistics providers are no longer able to transport goods as seamlessly and quickly as needed. Many street vendors see a rapid decline in orders because people are increasingly cooking their own food at home instead of buying food on the streets. As a result, the street vendors are leaving the city returning to their home villages, which reduced the number of customers Aglonera can work with.

Aglonera has found that establishing a more direct supply chain that delivers fresh produce directly from the farm to the table, can help mitigate the negative effects the global pandemic is having on household food security. They have also partnered with a local NGO to help deliver produce on motorcycles directly to hungry consumers. To reduce time and packaging material, they provide a discount to anyone buying in bulk.

What can we learn from Aglonera?

The changes in the operating market which Aglonera is dealing with, are happening in many other parts of the world too. Think about how the market and the stakeholders operating in the market have shifted since the global pandemic started. Reconsider if your business is still targeting your local market’s challenges in an effective way. What are factors that have changed and that potentially require you to adjust your model to the new needs? Can you identify new opportunities?

• Being an impact-focused company, this shift was an obvious choice for Aglonera. Here are some practical tips they share:
• Never be too shy to ask for help from other people to support you in difficult times, e.g. team up with a local NGO.
• Look at ways to boost your business’ efficiency, e.g. by delivering products on motorcycles or other fast transport options.
• Design a model that is appealing to the consumer, e.g. bulk prices.

Watch this video to learn more about Aglonera