Digital crop residue platforms in Latin America

Part
01
of two
Part
01

Digital Crop Residue Platforms in Latin America

Louis Dreyfus Company (Latin America), Agruppa (Columbia), and Syngenta (Switzerland) are companies that provide two-sided agricultural logistics platforms in Latin America, and other parts of the world.

DIGITAL CROP RESIDUE PLATFORMS IN LATIN AMERICA

The following are the identified companies that provide two-sided agricultural logistics platforms in Latin America.

1. LOUIS DREYFUS COMPANY:

  • Established in 1851, Louis Dreyfus Company is a big player in the farming industry, with a diversified portfolio which covers the entire value chain from origination to distribution.
  • Louis Dreyfus Company operates ten different business platforms in six regions, which cover more than 100 countries.
  • It produces, processes, and transports about 80 million tons of products annually.
  • The company is the employer of 18,000 people worldwide.

COORDINATION TRANSPORTATION LOGISTICS
  • As a leading merchant and processor of agricultural goods, Louis Dreyfus Company uses its global reach and extensive asset network to deliver products to its customers around the world, safely, responsibly, and reliably.
  • The company created a logistics network which provides producers with solutions for efficient transportation of their goods; from their farms to the company's storage warehouses, and from the warehouses to the ports, for worldwide distribution.
  • The company's logistics team in Uruguay comprises experts located in three logistics hubs — Nueva Palmira, Tres Bocas, and Montevideo. From there, they coordinate all logistics to ensure the delivery of goods from the farms to the ports.
  • The logistics solutions which they provide include services such as the coordination of the fleet trucks of external transport companies, to ensure the prompt delivery of products from the fields to the processing plants and ports.
  • Louis Dreyfus Company also manages logistics which ensure the rapid distribution of inputs (such as seeds, fertilizers, and agrochemicals) from its storage centers to the end-consumers.

COSTS OF TRANSPORTATION
  • Louis Dreyfus Company did not disclose the exact cost of transporting crop wastes. It only provided a brief overview of its logistics operations.

BUSINESS MODEL
  • The company has a diversified portfolio which covers the entire value chain from the origination to the distribution of agricultural supplies around the world.

2. AGRUPPA

  • Agruppa empowers small food vendors in low-income neighborhoods using mobile phone technology to provide them with fruits and vegetables at wholesale prices.
  • About 340,000 mom-and-pop shops sell 70% of the food consumed in Columbia.
  • These food vendors play a vital role in the level of nutrition and food security in their communities, and in low-income neighborhoods where there are few, if any supermarket chains.
  • Agruppa combines the demand of all mom-and-pop shops in a given neighborhood, to compile larger quantities with which they generate economies of scale from what the farmers produce.
  • Their distribution outlets then receive and send the farm produce to the shops of its customers.
  • Thus, Agruppa offers fresh quality farm produce to small vendors at a lower price and delivers them directly to their shops.

COORDINATION OF TRANSPORTATION LOGISTICS
  • Agruppa links farmers to the urban poor via a tech-enabled distribution system.
  • Being a health conscious organization, Agruppa strives to drive better food supply chains.[4]
  • Approximately 340,000 mom-and-pop food shops (tenderos) in Colombia and their collective commerce set the price for 70% of fresh produce in the urban areas. Hence, without sufficient capital to buy large quantities of farm produce, the tenderos have to get their daily stock from the central market. [4]

COSTS OF TRANSPORTATION
  • Agruppa uses existing mobile technology to create a virtual buying group among the tenderos, to help them reach wholesale prices on fresh produce.
  • The shops lose up to 15 hours per week and 20% of their income due to transportation costs. They also deal with the 45% markup on goods resulting from the chain of intermediaries between the farms and market.
  • With Agruppa's aid, the shops can save roughly six minimum monthly wages per year, which is about $1,500 per shop owner.
  • Agruppa does not disclose the costs associated with transporting crop waste, but the platform reduces the transportation expenses of tenderos to a minimum.

BUSINESS MODEL
  • Agruppa buys in bulk from the farmers and delivers the farm produce directly to the tenderos or shops.

3. SYNGENTA

  • Syngenta is devoted to helping growers do more with less.
  • Syngenta has a goal to be the leading global provider of innovative products in every step of the agronomic process, to optimize the results for the farmers and the food chain.

COORDINATION OF TRANSPORTATION LOGISTICS
  • Syngenta, in collaboration with Accenture, plans to design and run a new digital logistics operating model throughout all modes of transportation, including sea and air freight, globally, and road freights in North America and Europe.
  • This model manages the increasingly complex logistics networks and operations effectively, with lower costs and higher service performance.
  • "Accenture Strategy, in collaboration with Syngenta Global Logistics, designed a 4PL global operating model that features a network of control towers coordinating regional and global transport orchestrated by external fourth-party logistics providers (4PL)."

COSTS OF TRANSPORTATION
  • Syngenta did not disclose the cost of transporting crop wastes in any of its operations worldwide, as it is handled in the different stages of the company's operations.
BUSINESS MODEL
Providing essential inputs to growers such as crop protection, seeds, seed treatments, and traits.
Syngenta believes in delivering better food for a better world through its outstanding crop solutions.

Part
02
of two
Part
02

Digital Crop Residue Marketplaces in Latin America

While there is no publicly available information to fully answer your question, we have used the available data to pull together key findings. Alibaba is the only company that operates two-sided digital/e-commerce marketplaces for surplus agriculture and/or crop residue in Latin America. Below you will find an outline of our research methodology to better understand why the information you have requested is publicly unavailable, as well as a deep dive into our findings.

HELPFUL FINDINGS

  • Alibaba is based in China but operates in Latin America and other parts of the world.
  • It is a global marketplace for agriculture, food, and 40+ different categories of products.
  • The marketplace sells agricultural waste products such as coconut shells, wood shavings, used vegetable oil, AG film, cashew shell powder, palm kernel shells.
  • Coconut shells are used for making charcoal, while palm kernel shells are used for boiler fuel and can be used to make briquettes for fuel.
  • When sugarcane is harvested, it produces by-products such as cane trash and bagasse.
  • Cane trash can be sold to feed mills or used as a biofuel in sugar mills, replacing currently used bunker oil.
  • Bagasse is used to produce ethanol, a form of bioelectricity.
  • Residues of rice and wheat could also be used to produce biofuels.
  • Latin American countries are looking for ways to lessen their dependence on fossil fuels as an energy source.
  • Due to its large sugar-ethanol industry, Brazil has a large potential to produce bioelectricity.

RESEARCH STRATEGY

We first examined news articles for a list of top ecommerce sites in Latin America. An examination of this list of the ecommerce sites revealed that only Alibaba sells agriculture waste products or crop residue. China-based Alibaba is a global marketplace with operations in Latin America.
An examination of agriculture departments and companies in Latin America such as top sugar companies in Brazil did not reveal any ecommerce sites that have been listed as partners of the companies. We have determined that the lack of data is due to the fact that most of the agricultural waste produced from sugarcane is either burned in the fields after harvest or used by the sugar mills themselves as fuel in their mills.
An examination of Latin America-based ecommerce sites, in general, did not reveal any two-sided digital agricultural waste marketplaces or marketplaces that deal with agriculture waste and crop residue. Thus, only the information for Alibaba has been provided.

Sources
Sources

From Part 01
Quotes
  • "Founded in 1851, Louis Dreyfus Company is at the heart of the agricultural industry, with a diversified portfolio covering the entire value chain, from origination to distribution."
  • "LDC is present in 6 regions where we operate 10 different business platforms. We originate, process and transport approximately 80 million tons of products annually."
  • "We employ 18,000 people worldwide. Active in more than 100 countries. "
Quotes
  • "Louis Dreyfus Company is a leading merchant and processor of agricultural goods, leveraging its global reach and extensive asset network to deliver for its customers around the world - safely, responsibly and reliably."
  • "Louis Dreyfus Company has created a logistics network that can provide producers with solutions for effective transportation of their goods, from the farms to our storage warehouses, and from the warehouses to the ports for worldwide distribution."
  • "Our logistics team in Uruguay comprises experts who are located in three logistics hubs – Nueva Palmira, Tres Bocas and Montevideo. They coordinate all logistics to ensure an effective delivery of goods from farm to ports."
  • "We provide logistics solutions for producers, such as coordinating the fleet trucks of external transport companies, to ensure prompt delivery of products from fields to processing plants and ports."
  • " We also manage logistics that ensure rapid distribution of inputs (such as seeds, fertilizers and agrochemicals) from our storage centers to end consumers."
Quotes
  • "Agruppa leverages mobile phone technology to empower small food vendors in low income neighborhoods by providing them with fruits and vegetables at wholesale prices."
  • "In Colombia alone, there are an estimated 340.000* Mom-and-Pop shops that sell 70%* of the food consumed in the country. These food vendors play a key role in their communities’ nutrition and food security, especially in low-income neighborhoods where supermarket chains are still rare."
  • "Agruppa aggregates demand of Mom-and-Pop shops in a given neighbourhood. By compiling larger quantities, we generate economies of scale, source produce directly from farmers, "
  • "Bring it to our Distribution Outlets in the city and on to our customers’ shops. This way, Agruppa provides small vendors with fresher quality produce at cheaper prices delivered directly to their shop. "
  • "Mom-and-Pop shops buying from Agruppa…receive produce at better prices, and fresher quality, while saving time and money otherwise spent on transport to central markets."
Quotes
  • "Linking farmers to the urban poor via tech-enabled distribution. A healthier organization to drive better food supply chains"
  • "There are 340,000 mom-and-pop food shops (tenderos) in Colombia. Their collective commerce naturally sets prices for 70% of fresh produce in urban areas. Without sufficient capital to buy in bulk, tenderos are forced to get daily stock at the central market. "
  • "They lose as much as 15 hours per week and 20% of income on transportation, and face a 45% markup on goods resulting from a chain of middlemen between the farms and market. "
  • "Agruppa leveraged existing mobile technology to create a virtual buying group among tenderos to help them reach wholesale prices on fresh produce. "
  • " By aggregating demand, Agruppa could buy in bulk from the farm and deliver directly to tenderos. This had the potential to create a savings of roughly six minimum monthly wages per year (roughly US $1,500) per shop owner."
Quotes
  • "We are a global leader at providing essential inputs to growers: crop protection, seeds, seed treatments and traits."
  • "We believe in delivering better food for a better world through outstanding crop solutions. We are devoted to helping growers do more with less. "
  • "Our goal is to be the leading global provider of innovative products for every step of the agronomic process and to understand their interplay and optimize the results for growers and the food chain."
Quotes
  • "Syngenta, a leading global agriculture company, has collaborated with Accenture to design and implement a new digital logistics operating model across all modes of transportation, including sea and air freight globally and road freight in North America and Europe."
  • "The model will enable Syngenta to more effectively manage increasingly complex logistics networks and operations with lower costs and higher service performance."
  • "Accenture Strategy in collaboration with Syngenta Global Logistics designed a “4PL” global operating model that features a network of control towers coordinating regional and global transport orchestrated by external fourth-party logistics providers (4PL)."
From Part 02
Quotes
  • "Alibaba.com is the leading platform for global wholesale trade."
Quotes
  • "Coconut shell is widely used for making charcoal. The coconut shell has a high calorific value and can be used to produce steam, energy-rich gases, bio-oil, biochar etc."
Quotes
  • " In recent years kernel shells are extensively sold as alternative fuel around the world. Besides selling shells in bulk, there are companies that produce fuel briquettes from shells which may include partial carbonisation of the material to improve the combustion characteristics."
Quotes
  • " In 2014, the bioelectricity produced in sugarcane co-generation mills from bagasse represented 5.5% of whole Brazilian electricity production (EPE, 2015)."
  • "Produced 670 million liters of ethanol in 2014 and the projection for 2016 are forecast up at 900 million liters. In 2016, the bioethanol production is expected to be half from sugar industry (sugarcane) and half from grains industry (corn)."
  • " The ethanol production is focused to domestic market demand and no exports are projected in the short term."
  • " Ethanol mills capacity depends on annual decisions made by individual plants to produce sugar and/or ethanol. The industry responds to the ratio of 40:60 to switch between sugar to ethanol production or vice versa from harvest to harvest. "
Quotes
  • "With a slight expansion on sugarcane production, Bolivia can replace 20% of the gasoline and diesel, besides providing surplus ethanol for exportation or other purposes. "
  • "With a minor investment, bagasse may enlarge the electricity access in many countries whereas in other may represent an alternative to replace fossil fuel sources."
Quotes
  • "Other crops of global importance such as rice (Oryza sativa L.) and wheat (Triticum aestivum L.), are highlighted by the sheer volume of residues produced (44 % of the total). However, both rice and wheat play a minor role in the production of biofuels."
Quotes
  • "Sugarcane produces mainly two types of biomass, Cane Trash and Bagasse. Cane Trash is the field residue remaining after harvesting the Cane stalk and Bagasse is the milling by-product which remains after extracting sugar from the stalk."
  • "The potential energy value of these residues has traditionally been ignored by policy-makers and masses in developing countries. However, with rising fossil fuel prices and dwindling firewood supplies, this material is increasingly viewed as a valuable renewable energy resource."
Quotes
  • "Cane trash could be used as an off-season fuel for year-round power generation at sugar mills. There is also a high demand for biomass as a boiler fuel during the sugar-milling season."