We got a chance to sit down with Dylan Lee Chee How, the visionary Founder and CEO of Harvest Octopus Sdn. Bhd. (HAROCT), to explore how his company is spearheading a transformation in the agricultural sector of Southeast Asia. The agriculture industry …
We got a chance to sit down with Dylan Lee Chee How, the visionary Founder and CEO of Harvest Octopus Sdn. Bhd. (HAROCT), to explore how his company is spearheading a transformation in the agricultural sector of Southeast Asia. The agriculture industry in Southeast Asia, including Malaysia, has been stagnant for the most part with most farmers still adopting older and less efficient methods when it comes to the supply chain.
The agricultural sector, particularly for small-scale farmers, has historically been plagued by numerous challenges, including manual labour, non-transparent market prices, and risky payment practices.
Companies like HAROCT are aiming to address long-standing inefficiencies in the traditional supply chain, which is often fraught with fragmented markets, poor infrastructure, and a lack of transparency. Technology might be the solution to help small-scale farmers, providing them with tools to streamline their operations, reduce costs, and access fairer market opportunities.
Dylan shares insights into how HAROCT is also addressing the unique marketing and distribution challenges faced by small-scale farmers. By providing access to professional digital marketing services and leveraging social media, HAROCT helps farmers reach new customer segments and enhance their market presence. HAROCT's innovative approach involves a digital B2B marketplace that not only consolidates market players but also integrates transportation services to improve logistics and reduce costs. This platform ensures that both farmers and buyers can benefit from transparent, reliable transactions, thus fostering a more resilient and efficient agricultural ecosystem.
How does HAROCT aim to transform the traditional agricultural supply chain into a more efficient, transparent system for small-scale farmers?
The traditional agricultural supply chain in Southeast Asia is plagued by inefficiencies and imbalances in supply and demand, fragmented markets, and poor transportation infrastructure. Small-scale farmers face additional challenges such as an uneven playing field, non-transparent market prices, high reliance on manual labour, risky payment practices, long customer acquisition cycles, burdensome administrative tasks, and the impacts of climate change.
HAROCT aims to revolutionise this outdated farming system using modern technology to address every pain point in the traditional supply chain, as well as those specific to small-scale farmers. Our approach is twofold, where ur digital B2B marketplace creates a new, streamlined supply chain ecosystem. It consolidates market players, enhances volume and price visibility, and ensures transparency at both ends of the supply-demand spectrum. This is supported by fully integrated transportation services, which improve logistics and reduce costs. By connecting farmers directly with buyers, we are able to increase the amount of fair and reliable transactions.
The other approach is that we tailor our services to meet the unique needs of small-scale farmers. By digitising the entire sales and purchase process from listing products on the platform to recording payments, HAROCT significantly reduces administrative burdens and costs associated with manual labour. This digital transformation minimises default payment risks and builds trust through transparent and reliable transactions. Additionally, farmers gain better connectivity with transporters, buyers, and financiers, fostering a more resilient and efficient supply chain.
Through these initiatives, we not only address the macro-level inefficiencies of the traditional agricultural supply chain but also empower small-scale farmers. By leveraging technology, HAROCT ensures that farmers can focus on producing high-quality agricultural products—while enjoying a fair, transparent, and efficient marketplace.
What does the technology do to address the unique challenges faced by small-scale farmers, especially in terms of marketing and distribution?
Small-scale farmers today face significant challenges, particularly with evolving purchasing habits and buyer dynamics. While they excel in producing high-quality fresh produce, many farmers still rely on traditional supply chains and market practices that have remained unchanged for decades. In contrast, modern commercial buyers, especially the younger generation, have shifted towards digital channels, requiring new strategies for customer acquisition and product marketing.
One of the primary challenges for small-scale farmers is effectively marketing their produce to a new generation of buyers. Traditional methods often leave farmers trapped in outdated sales cycles, unable to reach broader or more lucrative markets. To bridge this gap, digital and social media marketing have become essential tools. HAROCT addresses this need by providing farmers with access to a team of professional content creators, digital marketers, and broadcasters who are adept at the latest marketing trends.
These experts help farmers craft and execute digital marketing campaigns, increasing their visibility and attracting new customer segments through social media and other digital platforms. This support not only helps farmers reach a wider audience but also educates them on modern marketing techniques, ensuring they remain competitive in a rapidly changing marketplace.
From the moment a farmer lists their produce on the platform, HAROCT forecasts demand, arranges transportation and ensures timely deliveries. This system minimises quality loss and maximises efficiency, facilitating the mobilisation of large quantities of produce across the country. By streamlining logistics and providing real-time tracking, HAROCT enhances convenience for all stakeholders, ensuring that fresh produce reaches buyers quickly and in optimal condition.
Could you describe the impact on sustainable farming practices, and how do you ensure these practices can scale to meet the demands of a growing global population?
Implementing sustainable farming practices effectively requires addressing several key conditions to ensure long-term viability and success. First and foremost, ensuring that farmers can make a decent profit is critical. Sustainable farming is often a lower priority for farmers who cannot sell their produce at a profit. Many farmers are trapped in a cycle of competing on cost and price, which leads to a short-term focus that is at odds with the long-term investments required for sustainable farming. Achieving and maintaining profitability is essential for farmers to consider and adopt sustainable practices.
Additionally, financial benefits from market differentiation play a crucial role in promoting sustainable farming. In Malaysia, the consumer and commercial buyers market remains highly cost-conscious, making it imperative for farmers to employ smart marketing techniques to differentiate their products. Farmers need to gain acceptance from specific market segments that value sustainability. Without this differentiation and market acceptance, there is little incentive for farmers to adopt sustainable practices.
Moreover, resonating with like-minded buyers is vital for the growth of sustainable farming. This approach has found a partial foothold in the organic produce market, where health-conscious consumers are willing to pay a premium. For sustainable farming to thrive, there must be a well-educated consumer base willing to pay more for sustainably produced goods. Educating consumers about the benefits of sustainable farming can help create a market that supports these practices.
Government assistance with land ownership issues is another critical factor. Sustainable farming often requires significant infrastructure investments. Farmers are hesitant to invest in these long-term improvements if they do not own the land or if it is leased on a Temporary Occupation License (TOL) basis. Many Malaysian farmers fear they will not recoup their investments if their licences are not renewed. Government support in securing land tenure is crucial to encourage farmers to make the necessary investments for sustainable farming.
Addressing market disruptions caused by foreign leases is also important. There is a growing trend in Malaysia where landowners lease their land to foreign workers, who then farm on a short-term basis to maximise quick returns. This practice leads to market saturation with cheaper produce, driving down prices and discouraging sustainable practices. Government regulation is needed to stabilise the market and promote sustainability by mitigating the effects of these short-term farming practices.
HAROCT plays a significant role in supporting sustainable farming by leveraging technology to address these challenges. By connecting farmers directly to buyers, we ensure better prices for farmers, helping them achieve profitability and consider long-term investments in sustainability. We also provide professional marketing services, including digital and social media campaigns, to help farmers differentiate their products and reach consumer segments that value sustainability.
Furthermore, HAROCT educate buyers about the benefits of sustainable farming, fostering a market willing to pay a premium for such produce. This educational effort is crucial in creating a well-informed consumer base that supports sustainable practices. In addition, HAROCT works with policymakers to secure land tenure for farmers, encouraging long-term investments in sustainable farming practices. By advocating for land ownership rights, HAROCT helps create a stable environment where farmers can confidently invest in sustainable infrastructure.
Lastly, HAROCT promotes fair trade and supports local farmers to help stabilise the market and mitigate the effects of market disruptions caused by short-term farming practices. Through these comprehensive efforts, HAROCT aims to create a more efficient, transparent, and sustainable agricultural supply chain capable of scaling to meet the demands of a growing global population. By addressing these key conditions and leveraging technology, HAROCT is paving the way for the widespread adoption of sustainable farming practices.
What are the major obstacles in persuading farmers and buyers to adopt this new digital approach, and how has HAROCT overcome these hurdles?
Adopting a digital approach in agriculture presents significant challenges, especially in traditional settings. HAROCT has identified three primary obstacles and developed targeted strategies to overcome them. One major obstacle is the farmer's traditional mentality. Many farmers have been practising agriculture in the same way for generations and often resist change due to a strong attachment to traditional methods and scepticism about new approaches. To address this, HAROCT conducts extensive education and awareness programs. These programs demonstrate the benefits of digital agriculture through real-life success stories and tangible improvements in income and productivity, helping farmers see the value of transitioning to a digital platform.
Another significant challenge is farmer's technology illiteracy. Many farmers, especially older ones, lack the necessary skills to use digital platforms, creating a significant barrier to adoption. HAROCT addresses this by designing its platform with a simple, intuitive interface that is easy for anyone to use, regardless of their technological background. Features are clearly labelled, and the process is streamlined to minimise confusion. Recognizing that smartphones are more accessible than computers in many rural areas, HAROCT has developed a mobile app that allows farmers to manage their operations on the go.
A third obstacle is the buyer's traditional purchase habits. Buyers are accustomed to traditional purchasing methods and may be hesitant to switch to a digital marketplace, fearing it may be less reliable or more complicated. To build trust with buyers, HAROCT's platform includes features like ratings, reviews, and transparent pricing. These features allow buyers to see detailed profiles of farmers, track the origin of produce, and read feedback from other buyers.
Through these comprehensive strategies, HAROCT is successfully addressing the major obstacles to digital adoption in agriculture. By providing education, support, and demonstrating clear benefits, HAROCT is transforming traditional agricultural practices into a more efficient, transparent, and sustainable digital system.
What emerging trends in agritech do you see as pivotal for advancing sustainable agriculture, particularly in developed and developing areas in Southeast Asia?
Emerging trends in agritech are pivotal for advancing sustainable agriculture, particularly in Southeast Asia, where both developed and developing areas stand to benefit significantly. One of the most transformative trends is the Internet of Things (IoT). IoT technology is revolutionising agriculture by enabling real-time monitoring and data collection. Sensors can track critical parameters such as soil moisture, temperature, and other environmental conditions, allowing farmers to optimise water usage and crop health. This technology enhances precision farming by addressing the specific needs of crops and livestock efficiently.
Another significant trend is the increasing use of agricultural robotics. Robots and drones are becoming more prevalent for tasks such as planting, harvesting, and weeding. These technologies increase efficiency and reduce the labour intensity of farming. For example, robots equipped with artificial intelligence can identify and harvest ripe produce, while autonomous tractors can handle large-scale operations with remarkable precision.
Precision agriculture is another key trend that involves using data analytics and AI to make informed decisions about planting, fertilising, and irrigating crops. This approach maximises yield and minimises waste by ensuring that resources are utilised where they are most needed. Technologies like drones and satellite imaging play a crucial role in enabling precision agriculture, providing detailed insights into crop conditions and resource requirements.
Sustainable farming techniques such as hydroponics, aquaponics, and vertical farming are also gaining traction. These innovative methods allow for the efficient use of space and resources, making it possible to grow crops in urban environments and areas with limited arable land. By reducing dependency on traditional farming methods, these techniques mitigate environmental impacts and promote resource conservation.
Blockchain technology is being leveraged to improve transparency and traceability in the food supply chain. This technology ensures that consumers can track the journey of their food from farm to table, promoting food safety and sustainable practices. Additionally, blockchain helps farmers by providing better access to markets and ensuring fair pricing through improved traceability and transparency.
Financial and market access innovations are also critical in the agritech landscape. Agritech startups like HAROCT are developing platforms that connect small-scale farmers with markets and financial services. These platforms help farmers secure better prices for their produce and access credit more easily, empowering them to improve their livelihoods and invest in sustainable practices.
What's next for HAROCT?
HAROCT has several strategic initiatives and goals lined up to further revolutionise the agricultural supply chain and support sustainable farming practices. Central to these initiatives is the acceleration of growth within Malaysia, where HAROCT plans to launch targeted campaigns to acquire and onboard both farmers and commercial buyers in key areas. These campaigns aim to achieve economies of scale and balance liquidity in the marketplace. Increasing transaction volumes between users is also a priority, as HAROCT seeks to facilitate more transactions to ensure active engagement and economic benefits for all users.
In addition to bolstering its presence in Malaysia, HAROCT is focused on expansion and market penetration across Southeast Asia, starting with Thailand. The platform is being hyper-localised to suit the Thai market and is currently in beta testing with the first batch of farmers and buyers. HAROCT also aims to diversify its product offerings by entering new agricultural markets, such as fruits. This diversification will provide farmers with broader market access and offer buyers a more varied selection of products.
Promoting sustainable farming practices is a core commitment of HAROCT. The company supports the use of organic farming methods, aims to reduce the carbon footprint of agricultural activities, and encourages eco-friendly innovations. To promote digitization and modernization, HAROCT has initiated community outreach events and online workshops. These initiatives focus on educating farmers about the benefits of small business digitization, online social media marketing, the latest technological solutions, and the use of digital tools to improve farm management.
Improving user experience is a continuous goal for HAROCT. The company is committed to enhancing its platform to ensure a seamless user experience, which includes user-friendly interfaces, better customer support, and functionalities tailored to the specific needs of farmers and buyers. Recognizing the importance of mobile technology in rural areas, HAROCT is optimising its platform for mobile devices to make it easier for farmers to access market information, manage their listings, and communicate with buyers on the go.
By focusing on these strategic areas, HAROCT aims to create a more efficient, transparent, and sustainable agricultural supply chain that benefits both farmers and buyers. Ultimately, these efforts contribute to the overall growth and sustainability of the agriculture sector in Southeast Asia.
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