SINGAPORE - Media OutReach - September
28, 2018 - SAP
(NYSE: SAP) today announced that CrowdFarmX, a Singaporean start-up farming cooperative on blockchain, will deploy SAP's S/4 HANA
Public Cloud to speed up the on-boarding of 10 million Southeast Asian farmers
onto its platform in the next 22 years. The CrowdFarmX platform connects
farmers directly to the global market and
equips them with the technology know-how to deliver higher-quantity and quality
yields, potentially increasing their net yield by up to 10 times and contributing
towards global food sufficiency. SAP S/4
HANA Public Cloud, an
intelligent ERP (enterprise resource planning) suite, will serve as the digital core for CrowdFarmX, accelerating
the on-boarding process for farmers by delivering a seamless and intuitive transition
Currently, 80% of global food
supply is provided by small farmers in a USD6 trillion-dollar industry,
but these farmers receive low economic returns for their labour despite
increasing consumer demand. Through smart contracts, CrowdFarmX links them
directly to wholesale distributors and retailers, helping the farmers to gain a
greater cut of the selling price. Farmers can also leverage brand marketing and
financing resources, as well as opportunities for exclusive partnerships with
retailers to boost sales through CrowdFarmX
Food Cradles that will be rolled out across the region. The end-to-end
visibility of the supply chain also increases food safety, ensuring that
quality food such as pesticide-free produce gets onto tables.
"The global food supply chain needs
to be completely reimagined in order to remain sustainable for future
generations. With SAP S/4 HANA Public Cloud, CrowdFarmX will have an intelligent
and intuitive digital backbone that supports us to have more complete visibility
of the supply chain and supports rapid scalability. This is crucial to pioneering
next-generation agriculture by bringing and supporting farmers to gain more benefit
from market opportunities", said David Tan, Founder and CEO, CrowdFarmX. "Our
ultimate goal is to uplift farmers from poverty, make farming a more lucrative
profession, and secure the world's future food supply."
CrowdFarmX will also leverage S/4HANA Public Cloud to
drive and integrate production planning and management of associated business
processes like sales & distribution, procurement, supply chain, finance
control and monitoring. The SAP S/4HANA Public Cloud reinforces predictive
analytics for optimised growth, supporting integration of the supply chain with
customers, and supporting the track and trace of safe produce from farmers with
the CrowdFarmX IoT and Blockchain platform. The SAP S/4HANA Public Cloud
implementation is expected to go live in December 2018.
"CrowdFarmX is a great example of a company that is
focused on purpose-driven innovation. This is very much aligned to our purpose
of helping the world run better and improving people's lives," said Khor Chern
Chuen, Managing Director Singapore, SAP. "We are glad they choose SAP S/4HANA Public
Cloud as their core technology to achieve their goals in building a more sustainable
food supply chain and to support their regional expansion ambitions."
CrowdFarmX aims to impact more than 1000 Southeast
Asian farmers under a pilot phase by 2020, providing access to sophisticated
agriculture technologies that were not readily available before. This includes
IoT irrigation monitoring systems and data analysis on micro-climates and soil
moisture, enabling them to maximise the yield per square foot of land by up to 10
times. The higher levels of crop production secures food sufficiency for a
growing world population especially amidst declining farmer populations.
With the support of Food Cradle partners in Sentul City
(Indonesia), Graceland (Thailand) and Mekong Homes (Cambodia), CrowdFarmX
aims to deepen the level of engagement with farmers who are already in the
ecosystem network and reach out to more from rural communities and villages.
Myanmar and Vietnam are also in the future expansion pipeline.
CrowdFarmX is part of the
Netatech Group of Companies, one of Singapore's leading integrated solutions
provider for water and food sustainability technologies. CrowdFarmX drives the
Farm Transformation arm of Netatech. Through active collaboration, the
CrowdFarmX Singapore Food Cradle was established in 2014, comprising of a
high-tech greenhouse, automated seeding line, post-harvest packing and cold
storage facilities. With more than 20 farm technologists, researchers,
agronomists at the helm, the CrowdFarmX Food Cradle engages in agricultural
research and development, farm network connection and safe food production
supplying to premium supermarkets islandwide. For more information, visit www.crowdfarmx.io
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Global agriculture's many opportunities, McKinsey, 2015