Crowdfarming - What's behind this revolutionary food supply chain?

Crowdfarming is a new, transparent and sustainable way to source food. Find out everything you need to know in this ultimate guide.

All over the world, farmers are struggling with price dumping by wholesalers, strict standards and a lack of planning security. 

The scope for creative work is limited - quantity rather than quality is the rule. If you are fed up with these conditions and would like more freedom when choosing varieties, cultivation methods and pricing, crowdfarming could be a good idea.

Why is crowdfarming so important?

Nutrition has become the leading cause of death and disease in the world, and it affects both ends of the scale: According to a UN reports 820 million people are undernourished, while 1.9 billion adults are overweight.

Many are looking for solutions in agricultural technology. So what can crowdfarming achieve?

Pressure on the agricultural and food industry

Agriculture and the food industry are facing three key challenges for the future: demographics and population growth, climate change and the scarcity of natural resources:

The world population has risen from three billion in 1958 to 7.7 billion today. By 2050, this figure is expected to reach 9.7 billion and it can be assumed that considerably more food will have to be produced to meet total demand.

Already, 50 % of the world's vegetated land is used for agriculture, and simply using more land is not the solution.

Add to this the specific problems in the agri-food sector resulting from unequal commodity prices, access to information, finance and markets, and it becomes clear that creating a more sustainable food supply chain is crucial.

New economic models on the rise

As most financing for agriculture is controlled by politicians or banks, it can be difficult for smaller farms, especially in developing countries, to access capital to support their livelihoods. 

In recent years, start-ups have tried to close this gap by creating digital platforms that give producers access to crowd-investing capital while allowing consumers to buy directly from farmers or suppliers. 

In 2021, over CHF 800 million was invested in Switzerland by means of Crowdfunding platforms invested. This makes it possible to raise capital from a wide range of investors, often with profit-sharing models built in. Such platforms enable producers to thrive where they previously struggled.

Some platforms provide access to machinery and goods, while peer-to-peer platforms enable knowledge sharing and food marketplaces such as Crowd Container enable direct sales to consumers.

The growing demand for local, seasonal and ethically sourced produce has merged with farmers' needs for access to capital and negotiating fair prices, leading to a boom in crowdfarming initiatives.

What is crowdfarming?

Crowdfarming loosely translates as "swarm farming" and describes the endeavor to put more power back into the hands of farmers.

Modern online platforms establish a direct connection between customers and producers, without speculators, and enable farms to have a tree, a field share or an animal share taken over by consumers.

Basically, you pay a price set by the farm and receive a share of the tree harvest, the animal product or the fruit from "your" field in return. 

The aim is to create an absolutely transparent and direct relationship between producers and consumers. 

This not only counteracts low prices and a lack of appreciation for agricultural work, but also prevents food waste and overproduction, as only what has been pre-financed for cultivation is produced and harvested.

Who benefits from this?

Crowdfarming creates a trade that benefits everyone involved: the producers, nature and you.

How did the producers benefit?

Crowdfarming is particularly suitable for producers who want to benefit from direct interaction with customers. The disclosure of sustainable cultivation methods is a strong selling point for the crowd, and much more appealing and credible than the labels in the supermarket. They are rewarded by direct trade with fair payment and fair working conditions.

Instead of expensive organic or fair trade certification, the community or crowd should be able to scrutinize the producers' business practices at any time by asking questions. A good example of this is provided by Crowd Container with its "WAS WOTSCH WÜSSE" format. The respective crowdfarming platform only requires proof that no synthetic pesticides or herbicides are used, which is ensured through quality assurance, constant dialog and spontaneous, personal visits to the farms.

In addition to a healthy environmental awareness, ethically correct standards in business management are also a prerequisite.

How do consumers benefit?

The overall concept is based on transparency and openness towards customers - many crowdfarming platforms even maintain personal contact in the form of Communities.

Customers pay cost-covering prices and in return are spoiled with untreated and minimally processed products that taste particularly intense.

As a buyer, you also know exactly where your food comes from and how it is produced, and you can visit these farms by arrangement.

How does nature benefit?

Crowdfarming platforms such as Crowd Container support diverse, regenerative and climate-friendly agriculture. Permaculture, agroforestry and closed farm cycles are important measures for climate protection and contribute greatly to the preservation of biodiversity.

As a rule, transportation routes are not covered by air, but rather containers are shipped by sea or land - always choosing the most climate-friendly and lowest-emission option.

Crowdfarming gives the environment the time it needs - it is only harvested when nature is ready and not when the buyers want it.

How exactly does it work?

A crowdfarming company uses its platform to offer producers an all-round service for offering and selling products, logistics for transporting containers and parcels, customer service and sales promotion tools.

To participate in crowdfarming as a consumer, you access the platform via a website or an app, select the goods you are interested in and specify the quantity you would like to receive. 

The online platforms are clearly laid out and show you as a customer at a glance which foods you can order in advance and when the expected delivery date will be. 

In addition, the price model of the respective product is shown in detail in a clear list so that you can see at a glance who earns how much - absolute transparency guaranteed.

As a customer, you can then follow the development through a regular exchange of information, which strengthens and consolidates the relationship between you and the producer, because the crowdfarming concept thrives on transparency, openness and communication.

When the harvest or production season finally begins, the goods are delivered directly to your doorstep or can be collected

Main players in crowdfarming

Crowdcontainer.ch

Crowd Container is a Swiss start-up that, in addition to crowdfarming, also organizes crowd ordering: collective orders for sustainable and regenerative food from three continents, whether fresh or processed into the end product, are sent out.

The quantities ordered can be determined by the end consumer and are shipped to Switzerland in containers using the lowest-emission route. The products are packed in Dispoboxes with little padding material to ensure that they are also climate-friendly.

This allows you to source flavorful spices, coconut products and nuts directly from forest gardens in India or fine Coffee for the entire office team from the rainforest. 

Local crowdfarming is also practiced in Switzerland, so that you can order products directly from Swiss farms.

The range comes from a circular farming system that promotes species and variety diversity in a climate-friendly and resource-saving way, does not use pesticides and produces everything organically or biodynamically.

Crowdfarming.com

The original crowdfarming concept goes back to a crowdfunded IndieGoGo project that was launched in Spain by two orange growers from Valencia from the Naranjas del Carmen farm. 

After some local successes, they started Crowdfarming.comto share the direct sales channel with more farmers. The aim is to simplify the food supply chain and empower both farmers and consumers.

In contrast to Crowd Container, however, this platform tends to sell goods in large quantities and collective orders are not possible. 

In addition, Crowdfarming.com almost exclusively supports European producers, so the selection is limited to regional products.

Disadvantages for consumers

Crowdfarming criticism should be practiced, because of course the things that arise to your disadvantage must also be addressed, but are absolutely understandable if you internalize the concept.

If you take part in a crowdfarming project, you must be prepared for little flexibility in terms of delivery. Delivery dates cannot be influenced as they are determined by nature and local environmental conditions and depend on the product in question.

You should also be prepared to pay in advance when ordering, as this is part of the crowdfarming principle.

The shipping costs are a not insignificant item and must be borne by you as the end consumer - which also contributes to transparent trade.

A look into the future

Direct collaboration between producers and consumers creates a model that could enable us to fundamentally transform the food system. 

While scaling remains a challenge, crowdfarming could play a critical role in creating healthy, diverse and joyful future food communities and workplaces.

Digital platforms not only have an impact on the overall logistics of the supply chain by cutting out middlemen, but also increase the number of well-informed consumers. They have fair access to healthy and local food while staying connected to the production, processing, distribution and post-consumption stages of the food. It also equips the market with more meaningful insights into consumption, improving profitability and potentially reducing food waste.

Class instead of mass

Crowdfarming does not produce for an anonymous mass of buyers, but for people who have decided in advance to support good farm work at a fair and justifiable price. Farmers are given more planning security, have reduced expenses and distribution costs and therefore more financial resources at their disposal. This gives them the opportunity to focus more intensively on care, cultivation methods and varieties - for the benefit of product quality, their own living conditions and, of course, your customer satisfaction.

The purchase of food via crowdfarming platforms such as Crowd Container is the most effective everyday action you can take to make a positive social and environmental impact.