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DIGITIZING THE AGRICULTURE

INDUSTRY IN BANGLADESH
Course: MKT330, Section: 3

Course Instructor: Mohammed Abdul Munim Evan (MEV)

Submission Date: 19th April 2019

Submitted By:

Name ID

Iktedar Bin Masud 1631683030

Nabil Hussain 1632256630

Md. Arnob Khan 1420312030


Acknowledgement

Our term paper was conducted on a project that can have digital implementations. The project was

ideated by the respective team members and we came up with a concept that can help improve

food safety in Bangladesh by implementing digital solutions in the agriculture industry.

Throughout the course of this project, we came across several challenges and overcame them with

great integrity. We would like to begin by thanking Almighty for giving us the strength and

perseverance to complete the term paper properly and on time. Appreciation and gratitude also go

to our course instructor, Mr. Mohammed Abdul Munim Evan (MEV) for helping us structure the

paper itself, as well assisting us in building up the different parts of the report throughout the

semester of Spring 2019. I would also like to thank my fellow classmates for offering valuable

suggestions which helped me improve our term paper. Lastly, I would like to extend my gratitude

towards everyone else, known or unknown from whom we successfully able to gather valuable

insights.

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Table of Contents

Executive Summary ........................................................................................................................ 4


Introduction ..................................................................................................................................... 5
The Idea .......................................................................................................................................... 6
Objective ......................................................................................................................................... 7
5 S’s of Marketing ...................................................................................................................... 7
Strategy ........................................................................................................................................... 9
Segmentation............................................................................................................................... 9
Targeting ..................................................................................................................................... 9
Positioning .................................................................................................................................. 9
Tactics ........................................................................................................................................... 10
Marketing Mix .......................................................................................................................... 10
Situation Analysis ......................................................................................................................... 12
SWOT Analysis ........................................................................................................................ 12
Competitor Analysis ..................................................................................................................... 14
Actions .......................................................................................................................................... 15
Roadmap ................................................................................................................................... 15
Action Steps .............................................................................................................................. 15
Control .......................................................................................................................................... 17
Recommendations ......................................................................................................................... 17
Conclusion .................................................................................................................................... 18
References ..................................................................................................................................... 19

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Executive Summary
Agriculture is a dominant force in Bangladesh. Almost 47% of the population in Bangladesh are
in the agriculture industry, and agriculture produces contribute to 10,468.80 million Bangladeshi
Taka of our GDP. However, food safety and adulteration still remain a pressing concern for the
mass. In order to tackle this issue, we came up with a digital solution, called Origin, which is an
omni-channel solution to tracking and recording crop conditions, crop health, weather prediction
and much more for both agribusiness and individual households.

Origin is a SaaS (Software-as-a-Service) product which translates analog, physical data into digital
information that are meaningful and very helpful at the same time. The hardware required are
called Wireless Sensor Nodes (WSN) which track relevant physical information such as
geographic location, temperature, moisture and can predict upcoming calamities or outbreaks
based on the surroundings. The hardware will be imported from India by striking a fruitful
partnership with Yuktix, and agricultural equipment focused startup.

The software bit is served from backend servers and data centers which hold huge databases of the
data gathered by the WSN’s and are fed to the mobile applications found on respective app-stores,
in a summarized fashion.

This product cum service can assist producers in tracking their crop health and ensuring top quality
products for their consumers, who may typically be large retailers or foreign clients – both of who
are concerned with the adulteration issues that pertain in the Bangladesh economy. This means
Origin will primarily have a revenue generation model from B2B transactions, but will also have
a free version of our application for the mass market to check on the quality of the products they
are purchasing.

We have also looked at how we will provide the service, the different action steps will be taking
in order to bring it to the market and scale it up phase and phase, and also defined broad level
KPI’s to monitor organizational performance to keep up to the plans made.

We conducted thorough SWOT Analyses and defined the 5S’s of service marketing and the 8P’s
of the marketing mix to arrive to a full circle on the planning, implementation and evaluation of
the entire project, i.e. Origin.

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Introduction
Agricultural food safety is a concern worldwide, especially in Bangladesh, as it is the direct source
of raw material of food we consume. There are massive concerns about agricultural food safety
due to the occurrence of food adulteration and food related diseases both in Bangladesh and around
the world.

The level of food adulteration is so vast in Bangladesh that it is difficult to find a sub-sector of
food industry that are not adulterated with harmful chemicals or pesticides.
Greedy producers are motivated to grasp high levels of profits, while balancing supply with high
demand. As a cause of this, a large number of patients are suffering from life threatening diseases
such as cancer, kidney diseases, diabetes, etc.

A recent research conducted by Food Security Research (FSR), tested food items for identifying
presence of poisonous components and it suggests that higher than 3-20% of DDT (Dichloro-
Diphenyl-Trichloroethane), Aldrin, Chlordane, Heptachlor and other poisonous elements 40% of
food items. Out of these foods, 35% are in crops and 50% found in vegetables. Moreover, arsenic
was traced in 13 samples of rice and chromium were also found in about five rice items. Such risky
outputs that can potentially harm the end users permanently call for severe measures that require
big solutions. The concept of e-traceability in this digitalized world can be one potential step ahead
in the right direction, i.e. towards food health and safety.

Traceability is a method that has the capability to trace the history of food, the process of how it
was grown or produced, where it came from, how it was grown, what are the nutritional
components of the food, through means of data regarding any particular food. Therefore,
traceability has been successful in tackling issues of food safety and preserving quality through
digital implications that can solve complex analog problems. The concept of traceability is fairly
new, but has been implemented in small scale in many different parts of the world. In today’s
digital era, many are taking initiatives to tackle this pressing issue of food adulteration which often
lead to dangerous health problems - either immediately or over time.

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The Idea
As discussed above, the importance of tackling this issue of food safety both for importers as
well as for individual consumers are extremely important. In order to address it, we came up with
Origin. Origin is a digital traceability product that ensures food safety and quality by providing
compliance and transparency of supply chain of agricultural products. The goal of using this
method is to take in analog data from physical locations into our data server and share relevant
summarized information with the users, which involves both producers and consumers. The
traceability product, Origin, serves in two dimensions primarily, they are:

Internal Traceability:
Internal Traceability serves the producers with production or harvest related data starting from
initial processes until the final distribution to the end-consumer, i.e. individual households. In
order to execute this, the way how Origin gathers data is with the help of battery and solar
powered panels called Wireless Sensor Nodes (WSN), which are dedicated sensors for
monitoring and gathering data of physical conditions of the environment. The WSN sensors are
able to gather data inputs such as: weather, humidity levels, temperature, soil pressure and
moisture, carbon dioxide, sulphur dioxide and nitrogen dioxide levels, wind direction and
geographic and terrain information.
The information collected in the database is auto-generated with the help of the physically
located signals in the producer’s farms, and final data is summarized into the smartphone app
dashboard where producers can monitor their farmer’s performance, keep track of their crop
health in real time, predict outbreak of disease and take actions based on red alerts presented by
the organized information ahead of time, potentially saving them tons of money and stress.

External Traceability:

External Traceability serves not only just the producers but also the clients of the producers or
individual households. It provides the users (clients of producers or individuals) with information
related to movement of the product in the distribution channel till it reaches the final consumer.
In this case, data is gathered through GPS or GIS (Geographic Information System) and manual
logging of information by regional coordinators of Origin. The logs consist of data such as Lot

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ID, Supplier Name, Product Name, Date of Departure of Shipment, Production and Harvest date,
Processing and Packing Information. This information entered is automatically entered into a
dashboard, and summarized information spit out, which the users can access through generation
of a unique QR code using our smartphone application.

The combination of both internal and external traceability completes the circle of ensuring food
health by giving relevant information to producers regarding their supplies and backend supply
chain, and also safety for individual households, allowing them to access publicized information
on the safety of the food they consume every day.

Although the idea would require extensive hardware and software to be deployed to tackle the
problem from all aspects, which of course, means extremely high investments, we have found an
alternative to our own problem. We are aiming to partner with other organizations, and use their
expertise to harness the possibilities of our idea, for example – going into a business agreement
with India-based start up firm called Yuktix who specialize in digital agriculture equipment can
be our biggest support to start off in the hardware sector.

Objective
5 S’s of Marketing
The 5 S’s of marketing is very effective in setting objectives, controlling and reviewing
performance of the business. Moreover, it can help to execute a more effective marketing
strategy. They are:

• Sell: For any organization this is the ultimate objective for them, i.e. to sell their products
or services to their target market. With Origin, in order to grow more sales, we would need
to focus on client acquisition, i.e. draw more leads and therefore ensure long-term sales
from these potential clients. To do this, during the initial stage our business, we will seek
to provide them with incentives that make potential clients feel like the commitment is
worthy through benefits such as trials early bird discounts. For the long term, we would
launch our operations fully to the mass consumer in order reach our ultimate goal of
ensuring safer food for everyone.

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• Serve: This involves creating more value to the clients through efficient customer service.
As Origin is a software-as-a-service (SaaS) product, it involves high-level of efficient
customer-service in solving frequent client problems, monitoring efficient data
management for accuracy of the input data which would require 24/7 customer service
support through online media. Moreover, we will also provide physical checkups for
inspecting hardware in our client’s production or harvest area and assisting in data logging
and training facilities as required.
• Speak: This involves engaging with clients with meaningful and relevant content. As
Origin’s practice is business-to-business, this involves more targeted personal or direct
communication to professionals in the agribusinesses. We may raise awareness of food
health and safety in the long term, i.e. before we are made available for the public, but will
require door to door pitches in the initial stages.
• Hence, e-mail marketing is one way for effective communication about the product in order
to generate leads. The content may include Origin’s background, how Origin might help
the clients to sell more, save costs and increase efficiency in their production facilities and
attract high ticket business deals. Other forms of communication would be through
traditional marketing pitches with businesses to persuade them to use the service, as
mentioned previously.
• Save: Businesses are always looking to save their costs which includes time, energy,
psychic costs and more. With the help of Origin, agribusinesses would be able to track any
possibilities of calamities or disease outbreaks and constantly monitor their performance
of their products. In addition, instead of doing physical checkups through human capital,
monitoring and evaluation can be done right at home, saving significant costs of trips to
and from the production locations, and constant overseeing over the farmers, thus ensuring
more efficiency in operational activities.
• Sizzle: Origin is creating a valuable and engaging experience that increases user
satisfaction.
Origin’s innovative cutting-edge technology is able to change ways of operating their
businesses, making their information available to the general public, i.e. retails consumers.
For the consumers, it would create more value for them as they will be well aware of who

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produced the items, where they were purchased, when they were planted and harvested and
much more – thus ensuring trust.

Strategy
Segmentation

We have selected four different segments - agricultural product exporters, the first; domestic
agricultural product suppliers and producers being the second; individual consumers being the
third and retailers/supermarkets being the last.

Targeting

Since we are going to focus more on business-to-business transactions in our initial stages, our
main targets are implementing both the internal and external traceability services to the exporters
and domestic suppliers.

The export businesses will typically be medium to large organizations working with a vast network
of farmers, and exporting to different countries around the world; while domestic producers often
supply to large retail chains and supermarkets across Bangladesh. These firms also act as
wholesalers in big marketplaces that act as distribution hubs - such as Karwan Bazar and also have
their own outlets, such as Shashya Prabartana.

As the business scales and costs reduce due to economies of scale, we can go for the mass market,
i.e. benefiting individuals through our external traceability functionality. These individuals are
most likely to be middle-aged men and women who do household chores, such as doing weekly
grocery shopping from local bazars and supermarkets. Even though not very efficient in terms of
adapting to new technology, the splurge of smartphone usage in Bangladesh can overcome the
barrier pretty easily by the time Origin becomes available for the public.

Positioning

For the positioning, Origin aims to grab the target customer’s mind by delivering value in terms
of saving significant costs by ensuring higher quality output with lower involvement and
eventually attracting better clients for their own businesses, meaning increased revenue. The

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positioning sentence will be “Ensuring health in a connected world” which conveys the benefits
that can be enjoyed by all parties involved - the producer, the producer’s clients (as their
investments do not go in vain), the farmers (by ensuring better pay due to stable pricing of
improved produces), households (through conscious consumption of safe food) through a digitized
rendition of a rather analog practice.

Tactics
Marketing Mix
The traditional 4 P’s of marketing has recently been developed to the 8 P’s that go further in terms
of defining the marketing strategy in this connected world. Each of the 8 P’s of marketing have
been discussed below in context of Origin:

• Product: As discussed in the ‘Idea’ section previously, Origin is a digital product, an app-
based software of some sort, that translates analog signals to digital data which are later
summarized into meaningful information for its users. Its core aim is to improve and ensure
food safety and reduce adulteration practices in agriculture-centric economies.
• Pricing: The pricing which would naturally be perceived as high for such advanced
technological implementations is actually pretty affordable in terms of the vast benefits it
brings to the table. Origin is a subscription-based SaaS product which requires its
subscribers, i.e. agribusinesses to pay a fixed monthly fee in exchange for the usability and
monitoring services provided from Origin’s service end. Since the revenue model for
Origin is sourced entirely from the business-to-business aspect, the services thus have to
be tailor made for individual clients, hence, the pricing modules will depend on a set of
variables, which when defined by potential clients, the budget can be proposed to. The
variables include the number of software users, number of WSN placement and
installations based on the area of land covered and degree of support services required. The
minimum retainer will start from 20,000 BDT, which compared to a one time fee (had the
businesses required to set up the hardware and get used to the software, would cost times
more)
• Promotion: Promotion strategies will be curated to attract only interested personnel of
potential clients, i.e. agribusiness owners or operations department employees. The

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promotions will focus on traditional face-to-face business development efforts with the
help of deployable marketing teams across rural agriculture-based locations around the
country, as well as online marketing in the form of e-mail marketing to the C-suite
executives and managerial personnel.
However, as we expand to the public, promotions can also be done via digital channels,
such as social media platforms, search engine marketing, and other consumer-focused
activation campaigns to raise awareness and tackle food safety related issues.
• Place: Since Origin is mostly a service, with a digital product in the form of a software,
distribution will be carried out directly, i.e. without using third party partners. The main
operations will be executed from the Dhaka city headquarters, but the organization will
have spread out regional offices with trained support staff for easier access to the rural
markets.
• People: People are the key drivers to growth and success in this business model - starting
with excellent customer service managers or account managers that deal with individual
accounts, i.e. agribusinesses, to the development team which has to be highly experienced
to pull of the integrated solution with pinpoint accuracy. In addition, lower level
coordinators for regular site visits across assigned territories are also crucial to ensure that
the data being input by our clients are authentic in order to deliver trust to the consumers
in the longer run. In addition, Origin, being a new concept in Bangladesh, will require
professional in-house trainers for ongoing training for advancements in the development,
management and service delivery sectors.
• Process: From generating leads to setting up hardware and configuring software - every
single client onboarding consists of intensive set of pre-assigned repeatable tasks.
However, maintenance of the service delivery, ensuring proper and accurate data inputs
and adherence to usage guidelines by constant monitoring and physical checkups are
required. A few complex backend import-related processes are also required in order to
ensure smooth transportation of hardware from India from Yuktix.
• Physical Evidences: Even though the main product of Origin is based on cloud servers
and data centers, and the information delivered through a smartphone application, the raw
data from the farms are actually connected through wireless hardware devices called WSN,
from Yuktix (as discussed before). In addition, to manage such a large scale of operations,

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physical offices for management and service delivery will also serve as physical evidences
of Origin’s existence.
• Partnerships: Relevant stakeholders and partnerships are the most crucial element for
Origin to be accepted by the mass market over time, while also enabling us to deliver value
and services to our core client base, the agribusinesses. Some key partnerships should be
formed with international food health and inspection certification bodies as well as with
the government agencies like agriculture ministry, food ministry, health ministry, ICT
ministry, import-export ministry, port authorities, and such. Other interest-based
partnerships are also required, such as agreements with international regulatory and
certification bodies like the FAO and the UN to gain advantages of trustable labels which
declares Origin’s services to be of satisfactory quality.

Situation Analysis
SWOT Analysis

In order to understand the market and related internal and external factors that may or may not
contribute directly to the success of the idea, we conducted a thorough SWOT analysis of the
Bangladesh market.

Strengths:

• Collaboration with other organizations that have already conducted research and
development could mean we get our hands on proprietary technology that can disrupt and
digitize the agriculture industry scenario.
• High barrier to entry due to heavy investment and technological barriers. It may require
high degree of expertise in technology which for us, are supported by Yuktix.
• It has the potential to transform the local agribusiness scenario which can serve as a very
strong selling point when trying to onboard vendors due to the vast benefits it brings and
minimal cost it incurs in exchange.

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Weaknesses:

• Will require huge investments with high risk levels as it will require extensive
infrastructural developments in various rural agriculture-focused areas in Bangladesh.
• Training will play a major role in the success of the execution, as many personnel -
including outstation coordinators or regional coordinators have to be trained extensively to
be familiarized with the concept.
• Requires omni-channel integration which require high level of accuracy in integrating the
analog and digital media aspects. This could be a pressing challenge if not executed
perfectly as the vendors on the platform will conduct business that are potentially worth
millions and even a tiny flaw can cause severe damages to the business.
• The pricing model may not be sustainable for many producers who only distribute and sell
locally and thus may not be able to commit to retainer-based service offerings.

Opportunities:

• This is a new concept that will be introduced to Bangladesh, meaning this could have
first-mover advantages and can be scaled faster if the market adapts to the technology
well.
• Similar implementations are only done in the fishing sector, i.e. for shrimp only, and the
technology has limitations in regards to the category of food. Our idea has no barriers in
terms of product type or category and can be implemented to any item related to
agriculture and livestock farming.
• Low levels of limitations in terms of products can ensure that vendors can be onboarded
fairly easily as it serves a greater good since the producers can provide authentic safety
information to their buyers on any sort of agricultural product that they produce.
• Set up costs are convenient and cost-effective, meaning it can be implemented at scale
after clients see its potential.
• Can be expanded to other agri-based countries, such as Myanmar, India, Brazil,
Colombia and such with similar set ups and configurations of both hardware and
software.

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Threats:

• The implementation may require quite a few certifications from international regulatory
bodies, government agencies and ministries which may involve potentially slow down
growth of the organization as well as the product itself.
• The requirement for applying for certifications can potentially give away insider
information that are crucial to setting up the operations and delivering value – this may
lower barriers to entry made possible by availability of valuable information.
• The current Bangladeshi agriculture market and producers are too backwards in terms of
technological integrations and may not be ready for bearing such expenses of going
‘digital’ and experiment with such a new idea.
• Our physical placements of devices, even though resistant to adverse weather situations,
may still need regular maintenance and repair due to damage caused by occasional,
unprecedented disasters.

Competitor Analysis
Since the idea is a fairly new one in Bangladesh, direct competitors do not exist as of now.
However, there is another firm trying to provide similar services. The indirect competitor for
Origin is SourceTrace, a startup firm that is in their pilot phase currently. They have partnered
with global organizations and NGOs, WorldFish and USAID in order to ensure safety for the
fishing industry products in Bangladesh. They are currently only offering this service for shrimp
harvesters and exporters by ensuring export of healthy and safe shrimp from Bangladesh.

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Actions
Roadmap

Milestone Expected Time Timeline

Partner Acquisition 8-10 months First 10 months

Improvement and Debugging 6 months After 10 months

Piloting 12 months After 16 months

Expansion 12 months After 28 months

Public Rollout 12 months After 40 months

Going Big unlimited After 54 months

Action Steps

• Partner Acquisition: Before Origin comes to life, it is very important for us to get into partnerships
with government agencies such as the food ministry, agriculture ministry, health ministry, ICT
ministry and port authorities. We also need to form private partnerships with shipping companies,
server supporters, technology agencies and more. Lastly, it is also imperative that we form
agreements with international food safety authorities such as UN, FAO and more. Lastly, we also
have to go for business agreements with the Indian hardware producer and supplier, Yuktix. These
are necessary in order to secure the supply chain model as well as to have trusted partners who
vouch for the Origin’s benefits and impacts. This process will require approximately 8 to 10
months.
• Improvement and Debugging: In order to get into the market, Origin needs to have a pilot phase
for six months to test the technology and debug software system, improve processes and efficiency
in service delivery. In order to pilot the system, we will bring in a focus group consisting of a total

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of 8 experienced veterans and novices of the agriculture industry. We will have a combination of
experienced adults between the age of 40-55, who are not very familiar to modern technological
advancements. The next set of people will be middle-aged professionals, aged 26-38 who are
working in the agriculture sector of Bangladesh. These individuals can be working in production
or the supply chain departments of local or multinational organizations - meaning they are pretty
well adapted to technology and its possibilities. Having these two groups of people onboard can
get us valuable insights including what functionalities we may be missing out on, what added
features can be offered and also how to make it more user friendly for those who are not so
technologically-advanced - thus helping us to improve our software and hardware products that
will eventually be offered.
• Piloting: After the debugging stage is over, we will be launching the iOS, Windows and Android
applications in respective app-stores. Additionally, we will also focus on business development,
i.e. getting onboard clients who sell domestically and offer them free trials to test the benefits that
the software and hardware can bring. This will not only raise awareness, but can have a potential
snowball effect where industry veterans can jump in on the idea to expand their businesses through
our services. This stage will go on for a year.
• Expansion: In this phase, once the benefits have been clearly communicated and service delivered,
we move further to the bigger fishes. Since the product we created has no limitations of the type of
agriculture products, the service will be offered to agriculture exporters who run bigger operations,
i.e. local large organizations who are involved in agriculture production - such as Pran, ACI
Limited, Gemcon Group and more; as well as international organizations such as British American
Tobacco Bangladesh and Japan Tobacco Industries.
• Public Rollout: After we have successfully pioneered in the commercial space, we will now
redesign the app to add a final functionality of allowing individual households to access databases
using QR code scans. This bit of the service made for the public will be free for all, meaning
individuals can simply download the apps from their respective app-stores and scan QR codes in
stalls and supermarkets to get ensured about the quality and safety of the products they buy.
• Going Big: After about a year and a half with the public rollout in place, our operations will be
improved continuously to deliver higher values for our stakeholders - producers, producer’s clients
and individual households through better in-app experience. Once we have successfully captured
the local Bangladeshi market, it will be time to move abroad and start offering our services to other
third-world or Agri-export oriented economies.

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Control
In order to measure our progress and keep track of the efficiency and effectiveness of the
organizations, we will be need Key Performance Indicators that guide targets which are to be
achieved by the personnel of the organization. For the market rollout strategy, we set a few broad
level KPI’s that are matched with the Action Steps (previous section), and they are as follows:

• Partner Acquisition: Onboard at least two independent international regulatory and food
safety bodies as ambassadors of the service within 8 months, including all paperwork and
guidelines set up.
• Improvement and Debugging: With the help of focus groups, improve and debug the app
to make it 95% market-ready within 5 months. The last month will be used for final review
and feedbacks.
• Piloting: Sign contracts with at least three local agribusinesses that supply in the domestic
market within 7 months from the start of this phase.
• Expansion: Sign contracts with at least three more domestic suppliers, and four
international suppliers within 8 months.
• Public Rollout: Drive 5,000 app downloads and 30,000 QR scans within the first 5 months
of this phase.
• Going Big: Expand to at least one feasible foreign country within one and a half years of
the start of this phase.

Recommendations
During our exhaustive secondary research, we came across a number of challenges, the most
worrisome of which was translating analog data to digital information from areas where networks
are very poor, at least now. For anyone trying to set up the infrastructure of such an idea, it is
highly recommended to set up a foolproof system which can allow device connectivity via newer
technological media such as blockchain and IoT, without requiring the need for wireless internet
connections.

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In addition, it is also very important to secure a stable supply chain model, as the entire operation
requires management of multiple stakeholders at different levels – starting from farmers and farm
coordinators to international representatives of food safety regulatory bodies.

Lastly, this idea has to be implemented keeping the long term in mind. The return on the
investments made can take up to 5-7 years to be positive, meaning the founders have to be very
patient with its success.

Conclusion
To bring this report to a full circle, our big idea is to transform the way people consume food by
ensuring safety, while also ensuring a stable income stream for both producers and farmers in an
industry which is known for extremely high rates of price fluctuation. Our big idea is also geared
to move Bangladesh forward by focusing on better traded goods and improved trade relations
through increased reliability, especially in the agribusiness sector.

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