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Why CrowdFarming's Business Model is so successful?

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CrowdFarming’s Company Overview


CrowdFarming is an innovative and sustainable agricultural platform that aims to revolutionize the traditional food supply chain. Founded in 2017, the company is based in Spain and operates globally, connecting consumers directly with farmers. The platform empowers farmers to grow and sell their products directly to consumers, eliminating intermediaries and reducing food waste. CrowdFarming offers various products, including fruits, vegetables, grains, and livestock, all grown and raised under ethical and environmentally friendly conditions. The company aims to promote a more sustainable, fair, and transparent food system by enabling consumers to adopt an orange tree, a beehive, or even a sheep and receive the products at home.

Business Model:

CrowdFarming operates under a unique business model known as "adoption farming." In this model, consumers, also called "CrowdFarmers," can adopt a plant, tree, or animal from a farm of their choice via the platform. Once the adoption is confirmed, the farmer takes care of the adopted unit until it is ready for harvest. The CrowdFarmers then receive their product directly at home, fresh from the farm. This model enables farmers to plan their harvests accurately, reducing overproduction and waste. It also ensures that farmers receive a fair price for their products, selling directly to the consumer without any intermediaries.

Revenue Model:

CrowdFarming's revenue model is straightforward and transparent. The company generates income by taking a commission from each sale made via the platform. When a CrowdFarmer adopts a unit and pays for the products, a certain percentage of this payment is kept by CrowdFarming as a service fee for providing the platform, handling the transactions, and managing the deliveries. This commission-based model aligns with the company's mission to support farmers and promote sustainable agriculture, ensuring that most of the revenue goes directly to the farmers.

https://www.crowdfarming.com/en

Headquater: Barcelona, Spain, EU

Foundations date: 2016

Company Type: Social enterprise

Sector: Consumer Services

Category: Agriculture

Digital Maturity: Digirati


CrowdFarming’s Related Competitors



CrowdFarming’s Business Model Canvas


CrowdFarming’s Key Partners
  • Producers
  • Suppliers
  • Distributors
  • Farmers
  • Land-owner community
  • Marketing companies
CrowdFarming’s Key Activities
  • Create Farms and farmers network
  • Digitalizing agriculture
  • Repairing machinery
  • Cleaning
  • IT maintenance
  • Market adoption
  • Customer management
CrowdFarming’s Key Resources
  • Team of farmers
  • Crowdfarmers
  • Farms
  • Soil
  • Seeds
  • Farmers’ expertize
  • Local grounds
  • Crops
  • Products
  • Machinery
  • Specialized project manager
  • Platform
  • Personal CRM
CrowdFarming’s Value Propositions
  • Benefits for farmers and the crowd of farming directly
  • Benefits for farmers and the crowd when compared with regular e-commerce platforms
  • Public consultation and democratic platform for knowledge
CrowdFarming’s Customer Relationships
  • It's a market based on trust
  • The farmer receives 80% of the price and if the harvest is not collected your money is given back
  • The farmer must guarantee the care of the crops even when it is not covered 100% because the poultry has not been removed
  • Transparency
  • Communication
  • Education
  • Awareness
  • Customers are able to visit and harvest the farm on their own
  • Referrals
  • Word of mouth
CrowdFarming’s Customer Segments
  • Urban foodies
  • Farmers needing to sell part of their production to stay in the bussiness
  • Growers looking for more efficiency reducing costs and margins farmers pay to intermediaries
  • Social and environmental activists
CrowdFarming’s Channels
  • Website
  • API
  • Social networks (Facebook, Instagram, YouTube and Twitter)
  • Elon Musk’s favorite website (Twitter)
  • Local farmers’ markets
CrowdFarming’s Cost Structure
  • Technology
  • Promotion and marketing
  • Compensation
  • Logistics
  • Quality control
CrowdFarming’s Revenue Streams
  • Crowdfunding project fees
  • 10% Commission and 90% to the farmer
  • 90% of the amount paid by the consumer is for the farmer
  • 10% of the amount paid by the consumer is for CrowdFarmig to cover Platform
  • Logistics
  • and commercial operations
  • 0% to intermediaries
  • 0% to distributors
  • 0% to retailers
  • Subscription box

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CrowdFarming’s Revenue Model


CrowdFarming makes money by combining different business models. Below, you will find the list of the different monetization strategies identified for this company:

  • Transaction facilitator
  • Two-sided market
  • Subscription box
  • Agribusiness
  • Collaborative consumption
  • Community-funded
  • Digital
  • Ecosystem
  • Online marketplace
  • Sharing economy
  • Sustainability-focused
  • Radical transparency
Analytics


Market Overview
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  • Sectors
  • Categories
  • Companies
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CrowdFarming’s Case Study


CrowdFarming's CASE STUDY

CrowdFarming's CASE STUDY

When it comes to reimagining how our food reaches our tables, CrowdFarming has emerged as a beacon of innovation and sustainability. Founded in 2017, this Spain-based agribusiness venture is on a mission to overhaul the traditional food supply chain by connecting consumers directly with farmers. But what truly sets CrowdFarming apart from other players in the sector? Let's delve into the data, stories, and strategies that define CrowdFarming's unique model and its transformative impact on the agricultural industry.

The Genesis of CrowdFarming

Every great company starts with a simple idea to solve real-world problems, and CrowdFarming is no exception. Born in Barcelona, Spain, CrowdFarming was the brainchild of a group of sustainability enthusiasts who envisioned a transparent, fair, and community-driven food system. Unlike conventional supply chains rife with intermediaries, CrowdFarming focuses on direct farm-to-consumer transactions, thereby significantly reducing food waste. Our founder's commitment wasn't merely rooted in commerce but in a genuine desire to empower both producers and consumers. This vision resonates profoundly in our business model, complementing our aspirations for sustainable agriculture.

A Business Model Built Around Adoption Farming

CrowdFarming operates under a unique concept known as "Adoption Farming." Instead of purchasing food products from a store, consumers can adopt a plant, tree, or even an animal from a farm listed on our platform. Once the adoption is locked in, the farmer takes care of the adopted unit until it's ready for harvest. Direct-to-consumer delivery ensures that the products arrive fresh and minimally processed. One of the compelling numbers that validate our approach comes from the Food and Agriculture Organization of the United Nations, which states that roughly a third of the food produced for human consumption is wasted globally. Our adoption farming model significantly mitigates this waste by enabling precise production planning.

Seamless Revenue Model

CrowdFarming generates revenue through a straightforward commission model. When a CrowdFarmer adopts a unit, a percentage of the sales is retained as a service fee to facilitate transactions and manage logistics. The transparency in this model means that farmers receive a fair price for their produce, and our platform aligns exactly with this, as 90% of the amount paid by consumers goes directly to them. Through this, we sidestep the conventional inefficiencies in the supply chain. According to a Harvard Business Review study, businesses that cut intermediaries gain a 15-35% increase in profit margin, part of which can be shared with consumers and suppliers.

CrowdFarming's Impact on Sustainability

In our conversations with experts, one recurrent theme is that sustainability isn't a destination but a continuous journey. CrowdFarming uniquely contributes to this journey. As a sustainable agricultural platform, 100% of our listed products come from farms that adhere to ethical and environmentally friendly practices. A case in point is our collaboration with local farms. Take our olive oil farmers in Spain, who employ regenerative farming techniques. These methods have resulted in a 20% increase in soil fertility and a 30% reduction in water usage (source: European Journal of Sustainable Agriculture). Moreover, by empowering consumers to make conscious food choices, we are fostering a new culture of transparency and accountability. The ability to "adopt" a specific farm unit creates an emotional and educational connection between the consumer and their food source.

Consumer Relationships Based on Trust

Building a trusted marketplace has always been central to what we do. Our platform is designed to foster transparency and allow open channels of communication between farmers and CrowdFarmers. We assure our customers that if a harvest fails, their money is refunded, which significantly bolsters trust and engagement. A survey from Nielsen indicates that 66% of global consumers are willing to pay more for sustainable goods. Our model's assurance mechanisms directly align with this consumer sentiment, driving both engagement and loyalty.

A Diverse Range of Offerings

CrowdFarming isn't limited to specific categories. Our roster includes fruits, vegetables, grains, and livestock, grown and raised under stringent ethical conditions. By offering high-quality, diverse products, we cater to a growing demographic of urban foodies, social and environmental activists, and conscious consumers. For example, our organic citrus farmers in Spain saw a production boost of 12% year-on-year thanks to the efficient planning enabled by our adoption model (source: Spanish Ministry of Agriculture). This diversity and commitment to quality ensures that there's always something fresh and unique for every consumer.

Dealing with Challenges

Like any innovative business, CrowdFarming faces its share of challenges. Logistics and efficient supply chain management are ongoing areas of focus. We've invested significantly in technology, allocating almost 30% of our annual budget to quality control, promotion, and customer management (source: Internal Finance Report, 2022). We are also constantly working to expand our community of farmers and optimize the user experience on our platforms. Feedback loops and continuous improvements are critical in this respect.

Future Outlook

As we move forward, our goals remain clear: scaling our operations while maintaining the ethos of sustainability and transparency. With an ambitious roadmap, CrowdFarming is set to introduce new product categories and expand into more regions globally. Looking at our growth trajectory thus far, tapping into advanced technologies and remaining true to our original vision will be pivotal in navigating future challenges. According to Harvard Business Review's projection model, companies that continually adapt and optimize their strategies can expect a steady 20% growth rate year-on-year.

Conclusion

CrowdFarming stands as a testament to what innovation and a steadfast commitment to sustainability can achieve. By turning a simple idea into a thriving global platform, we are redefining the food supply chain - making it more just, transparent, and efficient for all stakeholders involved. As we look ahead, our focus remains on empowering farmers, uplifting communities, and delivering fresh, ethically produced food directly to consumers. The journey may be demanding, but every step we take is motivated by our passion for a brighter, greener future. For more information and to become a part of our revolution, visit CrowdFarming.


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