Johanna Rumney

1000282

Section 104: Fri, 8:30am-11:20am

AGR 1110

November 27, 2018

Canadian Agri-Food App to Link Producers and Consumers

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Introduction

In today's society, people are moving away from big brands when shopping for produce.
The experience of the farmers’ market and buying directly from producers is often more
important to consumers than lower prices. Producers sell many different products at these
markets. But many consumers and farmers find it difficult to connect with one another, or find
markets close to home. Because of this, farmers are forced to sell their products to big
companies, losing money to the wholesaler.
An innovation for the Canadian agri-food system that could benefit Canadians would be
as easy as an app on your device. Developing a Canadian app allowing consumers to connect
with local producers easily on their phones would stimulate agricultural business. More money
would be spent on Canadian grown food, benefiting not only the farmers who are able to make a
greater profit off their product, but also the local economy. Marketing directly to consumers
would allow farmers to bypass wholesalers and sell their products at a greater profit margin,
helping them keep more money on the farm. This app could also allow consumers to identify
how the product was made. Farmers would post details about their production on the app, for
example indicating if pesticides were used, the type of fertilizer used, if antibiotics were used, if
it is a genetically modified organism, etc. Not only would Canadian consumers know where their
purchase was produced, they could also easily access information about the product to determine
is it meets their individual needs meets their individual needs. This app could also provide a food
guide, allowing users to know the health details of the product; for example, vitamins, minerals,
serving sizes and the number of calories. This would allow consumers to maintain a balanced
diet of Canadian-grown food, while knowing where it comes from and how it was made.
Canadians could make healthier choices while supporting local farmers and contributing to the
economy.

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 I. Product Description

My idea is to develop an app that allows farmers to be indirect contact with suppliers and
consumers. This app could be used by farmers and consumers to find and sell local products at
farmers’ markets. The application would similarly to many social media websites. Each user
would make an account, either as a buyer or producer, and would input their name, dietary needs
and/or preferences, region of residence, and products they are looking for. Their “newsfeed”
could be more targeting to their individual preferences. Users could see local options for their
food and pick a producer that fits their needs. They could click on the producers website and see
specifics about their products and ratings they were given by previous buyers. This rating system
would allow consumers to see how satisfied other buyers were, from 1 to 5 stars (5 being
excellent and 1 being poor). Consumers would be able to see exactly how and where their food
is being made on this profile, and what is in their food/ if it fits their specific needs.
Farmers would register as producers and create their own profiles. Inputs would include
where and how the product was made or grown, pesticide use, fertilizer, use, if the product is or
contains genetically modified organisms, antibiotic use, inputs such as feed, materials, water etc,
hormone levels, and many more. They could post when they had products available for purchase
and where they could be accessed, such as at farmers’ markets or local food/produce stands.
Using this application could allow farmers to reach many consumers, who could
view their product online. It would also increase farmers’ market attendance, as consumers could
consumers could browse products online beforehand. Producers could also see upcoming
markets and let consumers know what they will be bringing and other specifics about their
produce. Overall, the establishment of a web app connecting farm producers directly to their
clientele would benefit both Canadian farmers and Canadian food consumers.

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II. Health and Nutritional Information Provided by Technology

This application would also provide a food guide. It would supply information
about the product such as serving size, vitamin content, and number of calories. Users
could see the nutritional value of the specific produce they were purchasing, helping them
not only make healthier food choices, but also seeing which vitamins they need to
consume more often. The Canadian Food Guide is an example of a helpful nutritional
directory. It provides information for Canadians about recommended portion size,
number of servings that should be consumed daily, and the four categories of food:
vegetables and fruit, milk and alternatives, grain products and meat and alternatives
(Health Canada).

Figure 1. The Canadian Food guide provides information for Canadians about how many
servings of food children, teens and adults should eat daily.

Although the Canadian Food Guide is very helpful, it is not very in depth
especially when it comes to vitamin requirements. A balance of vitamins can help boost
your immune system (vitamins A and D), maintain healthy eyes (vitamin B), and help
protect memory and thinking (vitamin C) (Mora et al. 2008).

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Table 1. This chart depicts some of the daily intake recommendations for vitamins and
minerals, their effects, and where to find essential vitamins.
Vitamin/Mineral Daily Intake What They Affect Where to Find Them

Vitamin A 700 mcg Skin, bones, vision, hair Liver, carrots, sweet
potato

Vitamin D 15 mcg Bones, immune system Fatty fish (catfish,

salmon), eggs

Vitamin E 15 mg Skin, hair, vision Wheat germ oil,

sunflower seeds

Vitamin K 60 mcg Bones, blood quality Spinach, kale, broccoli

Vitamin C 75 mg Immune system, skin, Guavas, red pepper,

teeth, hair broccoli

Choline 425 mg Nervous system, brain Eggs, beef, cauliflower

function

Thiamin (B1) 1-1.1 mg Energy level, heart, Eggs, legumes, whole

muscles grains

Riboflavin (B2) 1.1 mg Growth, energy, hair Dairy, eggs, greens

Niacin (B3) 14 mg Digestive system, skin, Dairy, eggs, fish

energy

Pantothenic Acid 5 mg Skin, energy Mushrooms, cauliflower,

broccoli

Vitamin B6 1.3-1mg.7 Nerves, breakdown of Avocado, banana,

proteins, hair legumes

Folic Acid/Folate 400 mcg Tissue growth, hair Dark greens, legumes,
citrus fruits

Vitamin B12 2.4 mcg Metabolism, hair Eggs, soy milk, poultry

Biotin >30 mcg Hair, nails, skin Tomatoes, romaine

lettuce, carrots

The application would supply a chart like this, to allow users to easily access this
information. There are however, many more vitamins and minerals that would be

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included, with more in depth effects and food options. Users could utilize this component
of the app to supplement their diets with specifics foods that have nutrients, vitamins
and/or minerals that are deficient in their diets. It would be especially helpful to those
who follow strict diets, either for personal or health reasons. This tool would also be
helpful if someone had an allergy to a specific component in some foods. The application
would provide this important information and could help people with severe allergies
determine safe foods for them. They would have this tool at their fingertips.

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III. Market Opportunity

The target audience for this application would be both Canadian consumers and
farmers, as both could benefit greatly. For farmers, it would allow them to sell their
product directly, cutting out the middleman and broker, keeping more money on the farm.
It would also allow consumers to find local markets and see if the product meets their
individual needs. There are approximately 206,000 farms in Canada, all of them eligible
to profit from the use of this app, and 635 farmers’ markets.

Figure 2. Provides a visual of the farmers’ markets in Ontario.

As seen in Figure 2, there are 185 farmers markets in Ontario. Most of them are in
southern Ontario, as that is the most densely populated area, however there are very few
in northern Ontario. These markets are the perfect place for producers and consumers to
come together and celebrate Canadian agriculture and support local business.
Consumers are a huge part of this application. Canadians are spending more
money in these markets every year; in 2017 a profit of $3 billion dollar was made, with
an average of 28 million shoppers visiting. This app has a huge potential market, as all of
these people could use it to make buying Canadian products easier and more accessible.
This would boost the economy and help keep more money in Canada.

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 There are many other groups that could benefit from this application. Retailers
could buy products in bulk from farmers, instead of buying from large companies.
Schools from elementary to post-secondary could also use this app to order fresh produce
for student meals. There are approximately 5,294 schools across Ontario which could all
benefit from the use of this app; not only would students be provided fresh local food, but
it would also support local agri-businesses (Government of Ontario).

Product is created

Product is
posted on App
by producer

Product is seen on
app by user

Consumer contacts producer

through the app and the
product is bought at market,

This flowchart shows the process of selling a product using this app. After the
product is ready for sale, the producer posts about it on the app. Consumers looking at
products can contact the producer and arrange an exchange of goods at their convenience,
either at a farmers’ markets, privately, at local produce stands, etc. This a very simple and
easy process of getting food from farm to plate.

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IV. Canadian Government Grant Programs

The Canadian Federal and Provincial Governments have introduced some

programs to encourage the growth of agri-businesses. One program supplies Canadian
farmers and agri-businesses with grants, loans and other funding options for their
projects. These grants are available to many farms around Canada and include programs
like ‘Farm Technology Upgrades’ (Farm Grants). These grants and loans allow farmers
to upgrade their farms, buy livestock, or purchase other equipment without struggling
financially. The farmer can pay the loan back when they have made the money back from
the upgrade. This funding would be a great way to get the project started. This app could
be presented as a new innovative idea for agri-business. Grants range from $1,000 up to
$250,000 (Farm Grants). This grant would allow the project to get started.
A company called Farmers’ Markets Ontario has a website that allows consumers
to find markets and pick the producers they buy from. It has done very well in Ontario,
advertising these markets and making them more popular all around the province.
However, the website would be more accessible as an app and could send notifications to
users about local produce and farmers’ markets.
The farmers markets range across Ontario from Sioux Lookout to Kingsville. The
website Currently has 180 members and allows users to pick the farmers they want to buy
form. There are currently 220 MyPick verified producers, who guarantee freshness. Users
are also able to learn about the individual farms such as; who the operator/ farmer is,
which products they offer and their production practices, what markets they attend, and
their contact information. This company may benefit in collaborating with this app to let
consumers and producers know about the next market. The application could send
notifications to user and help establish a lasting connection with their consumers.

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V. Global Competition

There have been other apps developed around the world, with the one most
similar to my idea stemming from India. This app allows retailers to report their present
and future needs, and associates specific ranches with food processing industries (Patila
and Anandc 2017). It is mainly used to connect ranchers to retailers and educate
producers in new cultivating styles and horticulture plans through e-learning. However,
this app could not necessarily be used easily by consumers looking for local products.
This new Canadian application however would be specifically made for the ease
of use by consumers and producers. Today customers prefer an easy and convenient
shopping experience (Chheda et al. 2017). The ease of using the app would encourage
consumers to purchase local products.

Figure 3. Provides a block diagram of the Agri-Mark app based out of India.
Figure 3 shows the system set up of the agri-app based in India, it can be also
personalized for each user. It also shows the unique details about the products and the
flow of goods between the agri-mark users, farmers, administrators, and retailers.
This app also predicts the future needs of that product, so farmers can increase
their production for the increase in demand. It also connects ranchers to the retailers they
need to sell their individual products.

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VI. Effects on Canadians and the Economy

This app would help keep Canadian money in Canada. In 2017, 3 billion dollars
was earned at farmers markets in Canada. When it comes to food many shoppers chose
produce from other countries as it is typically cheaper due to low labor costs. However,
this app will encourage Canadians to support local business and make it easier for them
to access it. These products would also be cheaper, as it would be sold directly from
producer to consumer without the middleman or broker taking a cut of the profit.
Help keep money in Canada, spending less on importing foods from other countries.
Since this application would be online, the creation of the program could also be done in
Canada.
There would be many benefits to launching this app in Canada; more money
would remain within the local economy, and jobs would be created. People would be
hired at the market selling food, transporting products from farm to market, and even
monitoring transactions through the app. Farmers’ Markets Ontario (FMO) could
possibly also expand as the application would encourage market attendance. Positions in
this company that would need more employees and operators, administrators, educators,
promoters and financial services. The executive director of FMO, Catherine Clark has
played an important part in the growth of this corporation since 1992 (We are Farmers’
Markets Ontario). She can be contacted by mail at 54 Bayshore Road Brighton Ontario,
KOK 1HO, by phone at 1-800-387-FARM, or by email at
fmo@farmersmarketsontario.ca.
Canadian agriculture not only feeds us but also boosts the Canadian economy.
Agriculture and agri-business contributes around $100 billion annually and also supplies
employment to approximately 2.3 million people (Beaulieu 2014). It is a popular belief
that agriculture in Canada is declining, however the national GDP increased 11% solely
from an increase in agricultural production and sale (An Overview of the Canadian
Agriculture and Agri-Food System).

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VII. Issues and Unknowns
This application does have some unknown aspects and some limitations. The first
limitation would be seasonality. Canada has a very long and harsh winter during which
produce cannot be grown and sold, so for more than half of the year this app would be
limited in use to selling produce that can be grown indoors, or other products such as
candles, meats, eggs, bread etc. Canada also has generally cool temperatures and a short
growing season, meaning that many foods cannot be grown here. Many tropical fruits
must be imported into Canada and produce in general must be imported during the
winter.
Funding is also an issue, as Farm Grants Ontario typically only gives grants and
loans to farmers not budding agricultural ideas. It typically takes 60-80 thousand dollars
to start a company in Canada, and most grants given are only a few thousand dollars
(Siegal and Write 2015). Patents also must be acquired, which costs around five thousand
dollars. A patent would allow the creation of a program algorithm; that includes coding,
software, and computer programming/ deployment (Joorabchi et al., 2013).
Another challenge would be to get farmers and consumers to use the app. In 2014,
over 55% of farmers were over the age of 55 (Beaulieu, 2014). Older farming generations
tend to be set in their ways in terms of farming practices, so it would be a challenge to
prompt them to try the new technology that will make their farms more efficient.
There are also many unknowns, the first being whether farmers and producers
would have to register their food, farms or place of production. There must be regulation
as to who can be considered a consumer, and food and product quality would have to
monitored. There are many questions surrounding this, such as who would regulate the
registration of the producers, and if there any laws prohibiting the direct sales of product
to consumer. Perhaps the app could be a ‘buyer beware’ scenario like a farmers’ market,
and skip this process. However, if there are strict regulations, products would be so be
authorized as safe to be sold. Every product would have to be standardized so the
application would not be held responsible if bad produce was sold or eaten resulting in
sickness. This procedure would be crucial to provide safe and healthy foods to
Canadians.
These regulatory costs may defeat the purpose of this app, as it would be pricey to
get every product inspected before it could be sold. Ultimately the apps aim is to cut out
brokers when selling products in Canada and keep more money on the farm and in
Canada, however it may actually be costlier to examine every product.
Overall, this product does face many challenges and unknowns, however it has
promise to create an easier and smarter way to shop and sell Canadian products to
Canadians.

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VIII. Conclusion
This new application can connect consumers and producers nationwide. By
connecting consumers directly to farmers, not only will it cut out the broker and keep
more money on the farm, but it will also encourage Canadians to eat more local food.
This app has a few main functions. The first allows consumers to see where their
food is coming from and if it fits their individual needs. It also gives farmers more
options for selling their produce and advertise their product, while providing a nutritional
guide which users can use to keep track of what they are eating and the benefits of that
product. It also notifies users of nearby and upcoming farmers markets.
The market opportunity for this app is large, as it could be used by consumers,
producers, retailers and market organizers. These people could use it to conveniently find
local fresh products with ease, it connects everyone and finds products for individual
needs. There is also a big opportunity to boost the Canadian economy, as many products
that are bought from other countries could be replaced with Canadian products. It would
allow both Canadian producers and consumers to save money.
The best option for funding this project would be to connect with Farm Grants
Ontario, who fund agricultural and agri-business projects. There is one other app similar
to this one in India, however it is not meant for consumer use and primarily connects
ranchers to possible retailers.
There are quite a few issues and unknowns, such as Canada’s short growing
season and climate. It would also be a challenge to advertise this product to the right
people, or persuade them to try the app.
This app is a great opportunity for Canadians to shop local and support local
business. To find out more about local farmers markets near you visit
http://farmersmarketsontario.com/about-farmers-markets-ontario/ and promote Canadian
food.

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