A South African agritech company TonnUp has launched an online platform to enhance the local commodities market by assisting farmers in selling and marketing their produce in a transparent and organized manner.
The new platform was launched in the first quarter of 2020, to assist farmers in controlling the marketing, pricing, and distribution of their commodities. According to the director of TonnUp and a maize producer based in Viljoenskroonp, Stephen Kruger, the platform is created to assist local buyers and farmers.
The new platform aims at assisting South African farmers to be in charge of their own commodity marketing, pricing, and distribution at a fraction of the cost of current structures. Kruger said it will allow sellers and buyers in such a way that farmers can have the best value for their products, buyers to make better decisions on purchasing a product, and to have a more open and effective market.
When compared to other existing mechanisms available to local farmers, TonnUp claims that its one-stop platform is cost-effective.
In South Africa, the current demand for grain is between 15 and 16 million tons with less than a quarter of it traded in a structured market. This means about 75% of the grain crop can be exchanged on a regulated exchange, with complete position and pricing transparency.
Our main aim is to ensure buyers and sellers are put together to develop a spot market where everyone gets a fair deal.”
Some of the advantages of the platform are
- Listed farmers get the best possible price for their produce
- Buyers can make more informed decisions
- Promotes an open and efficient market
- Customers can only trade on the platform from prefunded accounts to make sure all parties involved have financial protection on transactions
Customers’ funds are separated from operational accounts.
The platform plans on focusing on grains but the company plans on growing other types of crops which include soya, oil cake, fertilizer, and sorghum.
