Context
Egypt is a densely populated country, with over 92 million inhabitants and a projected population of 120 million by 2050. Rapid population growth, combined with limited freshwater resources and arable land, is putting increased pressure on the country's rural and urban food systems in terms of food security and consumption of perishable products (dairy products, meat, fruit and vegetables). However, while food requirements are increasing, losses along the food chain remain high. In some fruit and vegetable sectors, up to 50% of production can be lost due to poor harvesting, storage and distribution conditions.
This is a major problem not only for food safety, but also for producers and players in the food chain, who lose a significant proportion of their income in the process. FreshSource was set up in 2019 by Farah and Omar Emara to tackle this logistical challenge.
The project
The FreshSource start-up works with a number of small-scale growers who are struggling to find customers. They supply their fruit and vegetables. Each farmer takes care to harvest his crop correctly, in accordance with the conditions set by FreshSource, to limit losses from the very first link in the chain. The fruit and vegetables are then transported by the farmer to the start-up's cold, dry storage facility. There, the produce is sorted, washed and packed or crated.
The start-up delivers fruit and vegetables to customers by refrigerated lorry. Customers can be hotels, restaurants or retailers.
FreshSource works across the entire chain, ensuring that products are of the highest quality and properly packaged, so that losses are kept to a minimum. The start-up is becoming a reliable and transparent way of providing fresh produce to Egyptian establishments, while guaranteeing a decent income for producers and finding them a stable outlet.
The whole process takes place on the FreshSource platform, a Business to Business platform. Producers can register on the platform and so can customers. FreshSource is working to improve its platforms and digital tools to make this work more fluid and facilitate access for producers and customers.
Who is it for ?
The start-up is aimed at small producers, whose small volumes are struggling to find a place on the market. Its customers are businesses: hotels, restaurants, retailers and manufacturers. The platform does not support purchases by private individuals.
Results
On average, FreshSource helps reduce producers' costs by 15% and increases their income by 20%. The start-up is currently working in 11 Egyptian cities, delivering to more than 100 locations, and is aiming to cover all the governorates of Egypt by 2023.
By early 2023, the start-up had grown from 4,000 to 5,000 kg of fruit and vegetables packed and delivered every day. It makes fresh fruit and vegetables more accessible to all, and supports small-scale producers.
Sources
- https://waya.media/freshsource-partners-up-with-otlob/
- https://www.facebook.com/freshsourceglobal/
- https://www.fao.org/egypt/programmes-and-projects/food-loss-waste-reduction/es/
- https://www.entrepreneur.com/en-ae/growth-strategies/cairo-based-agri-supply-chain-platform-freshsource-raises-a/421040
This initiative sheet was written by Manon Piocelle, LF intern - February 2023
Last modification : 29 Jun 2023.
FreshSource
FreshSource aims to streamline the value chain by supporting small farmers who produce high-quality products but are unable to reach consumers. The company also uses technology to minimise food waste in the value chain.