PaygOps Offtaking Feature: Increasing Market Access & Unlocking Resources for Farmers
Introducing the game-changing PaygOps Offtaking feature, an upcoming solution that allows last-mile distributors (LMDs) of agricultural products and services to easily buy commodities from smallholder farmers, in our continued efforts to build flexible features that can tailor to the unique challenges of LMDs in the most diverse industries.
In the agriculture sector, "offtaking" refers to the process by which a company, known in this case as the “offtaker”, agrees to purchase agricultural produce or commodities from farmers. It is a critical component of the agricultural supply chain, and agritech companies often play a role in facilitating or managing offtake agreements. The concept is closely tied to ensuring a market for farmers' produce and providing them with a guaranteed buyer.
Agritech companies using the Offtaking feature from PaygOps can leverage it in different ways. Firstly, distributors can offer loans to farmers and allow them to repay such loans with produce. Secondly, businesses can onboard farmers and make an offer to them to buy their produce, regardless of whether they have received a loan or not. In any case, this exciting feature opens up opportunities for distributors and farmers equally.
Market access is one of the major challenges smallholder farmers face. As part of our commitment to fostering fintech and sustainable technologies, the PaygOps Offtaking feature is set to support agri companies working at the last mile to address this market access problem, for smallholder farmers, guaranteeing better prices for them and their livelihoods.”
Nelson Lutta, Senior Business Development Manager at PaygOps
The PaygOps Offtaking feature is beneficial for distributors of agri inputs, as it helps in securing a stable supply chain, mitigating risks, ensuring product quality, and fostering long-term relationships with smallholder farmers. It also aligns with broader business strategies, such as vertical integration and technology adoption, contributing to the overall efficiency and sustainability of the distribution process.
For the farmer, the advantages are several, too, including: increased market access, a more steady income, access to resources, and the opportunity to engage in sustainable farming practices. Overall, offtaking can play a crucial role in supporting the livelihoods of farmers and enhancing the resilience of agricultural communities.
PaygOps Enables the Offtaking Process in a few Easy Steps
Unlock Resources for Farmers and Increase your Impact!
A-grow* is a distributor of agritech products and services. Their mission relies on facilitating market access for small-scale farmers, as they understand that this is a major roadblock for the latter. They see great value in the PaygOps Offtaking feature because it allows them to buy high-quality produce directly from farmers and easily keep track of the offtaking agreement. They’ve observed how the impact on farmers has increased after using this solution, as farmers now feel more confident having a guaranteed market for their produce and a more steady income, which allows them to get further access to inputs, equipment and other necessities. Farmers are also motivated to maintain high standards in their agricultural practices, to make sure that their products meet market requirements.
*NAME OF FICTIONAL COMPANY
When can you Expect the Offtaking Feature?
The Offtaking feature will be released on PaygOps during the first quarter of 2024. It’s the latest tool to make our comprehensive ecosystem of features, joining last year’s Surface Mapping and seamlessly integrating with the renowned sales, inventory, lease and after-sales management capabilities of our flexible platform, thus turning it into an end-to-end management solution capable of answering the unique needs of companies in the agritech space. For more information, visit our dedicated Agriculture section or request a demo.
About PaygOps: Solaris Offgrid’s flagship fintech software, PaygOps, enables credit to be provided to the bottom of the pyramid for essential products like solar home systems, agri-inputs, water pumps. The end customers pay incrementally via mobile money under a PAYGO model. PaygOps provides the software infrastructure to manage the contracts, payments and related communication for the local retailers of such products. Our affordable modular and interoperable solution connects energy and payment methods (Pay-as-you-go, mobile money) to a suite of enterprise applications that allows the smooth management of lease financing and field operations, while providing key financial data and metrics to investors.