Behind every CrowdFarming project there is a producer or a group of producers who make it possible. How much do the producers earn? How much does CrowdFarming earn? What services and guarantees do they offer? How are prices constructed?
“Disintermediation promotes organic farming. They are two different things, but we have found that they feed on each other. In our case, thanks to direct sales, we have been able to create a profitable agricultural business on which more than 50 families live by farming organically”.
Gonzalo Úrculo, farmer and co-founder of CrowdFarming.
Farmers use crowdfarming.com as a platform to launch direct sales of their food. Our team helps them with 5 activities: setting up their public profile, publicising their products, developing packaging, attending to customers and managing shipments.
The basic selling price is decided by the farmer. CrowdFarming services and VAT are then added to this price, depending on the country of destination. Discounting the VAT that the farmer pays in the country where he sends his products, this is what each of the parties takes:
- 50% to the farmer for growing and harvesting the produce
- 25% the transporter for transporting the order to the home address
- 22% CrowdFarming for the 5 aforementioned services
- 3% financial commission for payment methods (credit card, paypal, sepa, etc).
Note: our margin of 22% is the annual average. For adoptions, our margin is 16% and for individual box sales, our margin is as high as 32%. By promoting adoptions at a better price, we ensure that farmers can secure the sale of their crop and have more predictability regarding their income.
The cost savings on adoptions are related to marketing costs savings due to the fact that these are loyal customers and transport costs savings due to more efficient management.
How to ensure fair food prices?
By allowing the farmer to set their prices based on their real costs and at the same time, simplify the supply chain so that the price at the customer’s end remains competitive.
At CrowdFarming we are against setting a fixed price for food (commodity) at which farmers are obliged to sell. The fair price of a product is one that reflects its uniqueness based on the country of origin, the quality of employment it generates, the farming methodology and the packaging material.
The farmers and the CrowdFarming team assume the risk of any incident that may occur during your purchasing experience. If the product you receive does not arrive in good condition, we will offer you a replacement or an adequate refund.