How farm to fork model is reshaping the meat business / industry?
After fall of global economy due to Covid, now each startup and on-going small and medium enterprises are finding the new ways to grow their business. But only those are getting successful who are updating themselves according to the consumer behaviour and provides the fresh, healthy and affordable products earliest at the customer’s doorstep.
Every enterprise can earn the expected revenue by delivering the sustainable, nutritious and affordable meat products using the farm to fork model. Are you looking to start the new meat business or wants to make an edge on your competitors in meat industry? If yes, then this farm to fork model is really helpful for you.
What is farm to fork strategy.
This farm to fork strategy have launched in May, 2020 by the European Commission under the Green Deal Framework. And aimed for making the entire food value chain is sustainable till the year 2050. By implementing this F2F strategy, EC –
- wants to give access the safe, sustainable, sufficient, high-quality and nutritious food to the people.
- wants to protect the plant, soil, air, land, animal health, water and environment during the entire food supply chain that may include production , transportation, distribution & consumption.
- wants to ensure affordable food to the people.
- wants to give fair returns to the people whom are connected with the entire food supply chain.
In the next few years, this farm to fork strategy can become the game changer for the farmers, processors, wholesalers, suppliers and retailers those are associated with the food chains.
What is farm to fork model and how this is helping the meat industry?
In farm to fork model, farmers sells their meat to the nearest processing center and get a good price for their produce. At processing centers, lab technician check the nutrition, freshness and hygienic values after executing the overall cleaning process. And after that it is dispatched to the nearest store / outlet from where pickup & delivery operations can executed. In this model, business owner has to manage the entire supply and cold chain.
After knowing the farm to fork strategy, we have found consumers need affordable, high-quality, nutritious, safe, and sustainable food. And we have found that there are no middleman and wholesalers within the entire supply chain in the farm to fork model. In the same way, they can earn more around 30-45% profit margin as compared to the traditional approach because there are no middleman, wholesaler, distributor or/and supplier in the supply chain.
Traditional Meat Supply Chain Vs Direct To Consumer
In traditional meat business, customers were getting meat products at higher rate due to the long supply chain. Like initially, middleman purchases it from farmers and then sell it to the wholesalers and then wholesalers sells it to butchers or/and retailers. After receiving the meat at retail shops, then retailers can sell it to the consumers.
Farmers → Middlemen → Wholesalers → Butchers or/and Retailers → Consumers
After going through all the supply chain stages that are mentioned above, meat loses its freshness, shelf life and nutritions. And consumer purchases it at higher cost by compromising with the quality and decreased shelf life of the meat. Now, if anyhow customers receive the fresh, high-quality, healthy and affordable meat at their doorstep then who will visit the market to purchase the unhealthy and nutrition less meat at higher rates?
In direct to customer (d2c) model, business owners can sell the meat directly from their farms / processing centers to the consumers and earn more margins as compare to those ones who are still using traditional approach.
Case Study | Licious
About Licious Company
Licious is online meat shop that has started their delivery operations few years back in 2015. This brand is well-known for its premium and high-quality fresh meat, fish, eggs, mutton, seafood, & chicken delivery within 2 hours. Currently they are serving only in 28 cities across India mainly in Agra, Bengaluru, Bhilai, Chandigarh, Chennai, Cochin, Coimbatore, Delhi, Faridabad, Gurugram, Hyderabad, Jaipur, Kanpur, Kolkata, Lucknow, Mohali, Mumbai, Nagpur, Nashik, Noida, Palakkad, Panchkula, Pune, Pondicherry, Thrissur, Trichy, Vijayawada, and Visakhapatnam.
Licious Business Model
As we are discussing the case study of Licious because this is totally based on farm to fork model. Licious has the team of more than 3750+ employees to maintain the entire supply and cold supply chain. Co-founders of Licious, Abhay Hanjura and Abhay Gupta began the journey on the single motto that – “We won’t sell what we won’t eat ourselves!”.
From procurement to processing, processing to storage, and storage to delivery, everything is managed by the company itself. Initially, they purchase the meat from farmers and do the cleaning, cutting, storing it at their 5 processing centers located at Mumbai, Hyderabad, Gurugram and Bengaluru. And by analysing the demand and supply in the areas, they dispatch the meat stock to their delivery centers across India.
By delivering the fresh and tasty meat products, Licious had already gain more than 1 million unique customers till date. Currently, they are delivering more than 6400 orders in a day and an average cart size is INR 700. During their first year, they had earned the INR 1.47 crore revenue by selling the meat online. In FY 2019-20, they had earned the revenue of INR 180 crore. An income earned in the financial year 2020-21 was INR 138 crores. And after becoming the direct to consumer (D2C) unicorn in FY 2021-22, company had gained the 3x more revenue as compare to previous year that is INR 435 crores.
After knowing all these information & facts, if you are planning to launch your online meat delivery app then feel free to ask. You can also get a readymade software for meat business to make an edge on the competitors.