Articles Sustainability

Empowering smallholder farmers and innovating agriculture

Indonesia

Smallholder farmers, who produce 70% of the world’s food, face significant challenges and those using Jiva’s services have seen up to a 25% increase in income.

Suresh Sundararajan

Co-Founder and CEO @ Nupo Ventures (Olam)

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Posted 21/10/2024

Socioeconomic challenge

84% percent of the world’s 570 million farms are smallholdings—farms under 2 hectares. Despite their critical role in food production, many smallholder farmers live in poverty, creating a paradox where those who grow food are often the most vulnerable to hunger. Jiva was created to tackle these issues by providing farmers with technology-driven support, helping them access fairer markets, improve their income and achieve greater productivity.

Purpose and strategy

Nupo Ventures is committed to building ventures that create sustainable impact and Jiva is a prime example of this mission. Launched in 2021, Jiva addresses the critical challenges smallholder farmers face, including limited access to technology, unfair market conditions and scarce financial services. By combining Olam’s supply chain expertise with Jiva’s proprietary technology, our innovative "phygital" model is crafted by a skilled team of experts. This approach merges physical networks of micro-collectors and retailers with AI-powered agronomy advice and credit facilities, giving farmers a comprehensive solution to improve productivity and income. Farmers using Jiva’s services have seen up to a 25% increase in income, illustrating the project’s potential to drive sustainable economic growth in agriculture.

Impact and innovation

Since its inception, Jiva has significantly impacted smallholder farming communities.

Starting with 15 districts in South Sulawesi, Indonesia, Jiva expanded its reach to Java and other regions, growing its farmer network from 55,000 to 150,000 by 2024.

The platform now supports a wider variety of commodities, including cassava and chilli, contributing to increased yields of up to 49% for farmers. In 2023, Jiva achieved 58% revenue growth in its offtake and 222% in its input business. The project has improved margins and helped farmers access high-quality agricultural inputs and receive fair prices for their produce. Jiva’s success has attracted global recognition, with the United Nations inviting the project to present at its SDG Digital Acceleration conference.

Future outlook

Jiva’s potential for growth is immense. With 23 million smallholder farmers in Indonesia and 500 million worldwide, the platform aims to expand its reach significantly. Nupo Ventures plans to scale Jiva by adding new commodities, such as chilli and exploring further services, including insurance and equipment financing. Nupo Ventures is also actively seeking additional funding to support Jiva’s continued expansion, reinforcing its commitment to transforming the livelihoods of smallholder farmers while driving sustainability in agriculture.

Nupo Ventures is a venture studio focused on building innovative, sustainable businesses that address global challenges in food, agriculture, and beyond. Founded with a mission to harness the power of human ingenuity, Nupo Ventures creates impactful ventures that deliver both financial returns and meaningful societal contributions.

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