Market Price Analysis of Rare Herbs
One of the greatest challenges in the agriculture industry is supply chain. The supply of standard produce is greatly impacted by our current supply chain. In an article, Forbes magazine states that the big challenge is were dealing with an archaic distribution system Weve got farmer, transportation, manufacturer, distributor, broker, and realtor. Its a super obsolete 20th century distribution model. This model needs to change, and this is where our Herbalist Token Project comes into play.
Lets look at the current supply chain and its impact. Below is a standard supply chain. As we can expect and as Forbes noted, there are many a lot of parties involved.
Note that with each phase of the distribution model, huge amounts of time is wasted. Not only does this mean degrading quality of produce, but every time produce is transported or stored, embedded costs increase as well. Consider the cost of fuel, labor, distribution markups, and maintenance. All these are factors in the price we pay for produce at the grocery and produce thats severely lacking in freshness.
Lets analyze this standard supply chain in terms of shrinkage of Leafy Green Produce and Herbs.
As you can see, a shocking 68% is lost before it reaches our home. And another 15% is lost in our home. Total of 83% is lost until it reaches our home. Lets also consider the actual quality of the produce you are eating. From the moment it was picked, it began to decay and lose its freshness. Even if appearance-wise it may look fresh, nutrients are diminishing every day in the produce we buy.
As we mentioned, with each phase of distribution model, huge amounts of time is wasted and the product decays a great deal. Same thing happens when it comes to the price of the product. Because of many intermediaries from producer to consumer, the prices increase in unimaginable levels. This is the standard case for produce products. When we analyze the price change of rare herbs, the price increases to exorbitant levels because of the scarcity of the products.
Lets give an example of Matsutake Mushroom. The farmers in Japan sell their product of Matsutake Mushroom to an intermediary for $100 per kg. Because of the current supply chain, this mushroom is sold at 4000 per kg in Germany. The price increases to more than 40 times of the original cost.
Herbalist Token Project offers a new platform to cut the costs and give farmers an opportunity to sell their products directly to the consumers.