Collection

Business Model Canvas

In this chapter our potential business model can be read. It is a way to implement the idea of Farmer Forecast, during our stay we need to find out if our business model is indeed correct and if our expectations match with the situation in Ghana.

The main value to realise is to create a local, more specific weather forecast for farmers. This is mainly done for the farmers and for the LBCs. The more accurate data the farmers can rely better on the predictions and anticipate on the weather. This reduces the costs for the farmers and increases the harvest. A bigger harvest with less costs. The LBCs benefit from this as well, as more cocoa beans means more revenue due to the fixed price. As the relationships between the farmers and LBCs last for decades, this will increase the living standards for both of them in the long run.

To achieve this goal, several key partners are involved. The Delft University of Technology started the TAHMO project that initiates and builds the weather stations. The Ghanaian government facilitates in all sorts of help. GMet is a governmental organ that already measures basic weather data for decades and schools maintain the TAHMO stations.The ideal scenario is to have one LBC in a district that buys all the cocoa in its surroundings without a competitor. This sounds utopian, but the fixed cocoa price makes this become rather common. The farmer forecast is broadcasted by a radio channel. This means that it is open to receive by all the farmers for free. The range of the forecast is equal to the span of the LBC. This is realised by the strength of the signal of the radio channel. The costs of the daily radio show are covered by the LBC. As the LBC has a monopoly position in the area, there will be no competitive advantage for other LBCs that do not pay.

If this turns out to be a success. The service can be expanded. Since the medium that is used is the radio, it will be relatively easy to upscale the forecast. New areas where the LBC is settled can be included directly. Other LBCs may follow as they see it is working at their competitors. The idea is to roll out the forecast over the whole country eventually. No exclusivity deals will be made, as this is to become an independent service to help all farmers in Ghana.