While North America and Western Europe have seen fairly strong adoption of digital marketplaces by farmers and their buyers, the Russian market has lagged a little behind when it comes to digital transformation.
According to the report, it looks like they’ve already made good progress since they started the company just under two years ago. From Agfunder:
Since launching in Russia in August 2018, the self-described fintech startup said that 20% of farmers in the region signed up for the service within 18 months leading to millions of euros in transactions. Over 4,000 grain companies have signed on to the platform and Agro.Club reports agreements with multinationals like Cargill, Bayer, and EuroChem.
While Agro.Club allows farmers to connect with buyers, it also has other features:
(AgroClub) allows users to monitor grain prices with automated logistics, obtain analytics, trade grain, obtain ag inputs, receive weather forecasts for specific fields, and share best practices with other farmers. Users can also seek advice from experts.
Digital marketplaces had already been a hot vector for investment, with startups like WeFarm and Indigo Agriculture raising rounds in the last year and a half or so. Now, with the pandemic disrupting many farmer’s traditional supply chains, we might see an even greater interest in these types of markets as farmers look to accelerate their digital transformation.