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Reducing Post-Harvest Losses with Digital Marketplaces

by Sunday Precious
12 minutes read
A laptop is used to purchase agricultural products and the items are transferred into a shopping cart

Source: Grain.org

In many developing countries, post-harvest losses for cereals and grain legumes typically range from 10 to 15 percent. However, in certain regions of Africa and Latin America, these losses can be alarmingly high, reaching up to 50 percent of the harvested quantities. Such significant wastage not only undermines food security but also affects the livelihoods of farmers and the overall economy.

To tackle this pressing issue, digital marketplaces have emerged as a transformative solution. By providing farmers with better access to markets, facilitating real-time transactions, and enhancing supply chain coordination, these platforms can significantly reduce post-harvest losses. 

In Africa, where agricultural efficiency and food security are paramount, the adoption of digital market platforms holds the potential to revolutionise the agricultural landscape and reduce food waste.

What is Post-Harvest Loss?

Bags of wasted agricultural products
Source: Business Day

Post-harvest loss refers to the loss of food quantity and quality from the time it is harvested until it is eaten. Quality losses affect how nutritious, acceptable, and edible the food is. These types of losses are more common in developed countries. Quantity losses refer to the actual amount of food that is lost. These losses happen more often in developing countries.

The Severity of Post-harvest Losses Across the Globe 

Farmers and food sellers around the world struggle with post-harvest losses, which are becoming a bigger problem as the demand for food increases globally. The Food and Agriculture Organisation (FAO) estimates that one-third of food products are lost each year. 

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In many African countries, losses of food cereals can reach about 37% of the total crop harvested. For more delicate crops, like fruits and vegetables, losses can be as high as 50%. In a study carried out by Action Contre La Fiam popularly known as ACF, in East Africa, the dairy sector experiences economic losses from spoilage and waste, averaging around US$90 million each year. In Kenya, around 95 million litres of milk worth about US$22.4 million are lost annually. Tanzania faces cumulative losses of about 59.5 million litres of milk each year, which is more than 16% of total dairy production in the dry season and 25% in the wet season. In Uganda, roughly 27% of all milk produced is lost, equivalent to US$23 million each year.

Post Harvest Loss in Europe

In Europe UK households waste an estimated 6.7 million tonnes of food every year, which is about one-third of the 21.7 million tonnes they buy. This means around 32% of all food purchased is never eaten. Most of this waste, 5.9 million tonnes, is collected by local authorities. About 4.1 million tonnes, or 61%, is avoidable and could have been eaten with better management.

In the United States, 30% of all food, worth US$48.3 billion is thrown away each year. It is estimated that about half of the water used to produce this food is also wasted since agriculture is the largest consumer of water. 

Losses at the farm level are around 15-35%, depending on the industry. The retail sector experiences higher loss rates of about 26%, while supermarkets lose only about 1%. Overall, losses in the United States amount to about US$90 billion to US$100 billion each year.

Causes of Post-Harvest Loss

A group of gamers harvesting vegetables
Source: The Guardian

There are several causes of post harvest losses but the most common causes in Africa include: 

1. Inadequate Storage Facilities.  

Many farmers, particularly those who operate smaller-scale farms, face the critical challenge of insufficient storage facilities. Often relying on traditional methods such as open sheds or simple burlap sacks, their crops are left vulnerable to a host of threats, including pests, rodents, and the unpredictable elements of nature. This lack of proper storage not only heightens the risk of spoilage but also compromises the overall quality of the produce, ultimately leading to considerable financial losses for these farmers.

2. Improper Drying Techniques

Drying is an essential process for many crops, such as maise, coffee, and nuts, as it removes excess moisture that could otherwise lead to spoilage. However, the techniques employed by farmers are often inadequate. Practices like sun-drying directly on the bare ground can result in uneven drying, facilitating mold growth, and significantly diminishing the quality of the crops. These improper drying methods can endanger the integrity of the harvest and reduce its shelf life dramatically.

3. Transportation Delays and Inefficiencies

The crucial window between harvest time and the arrival of produce at the market is pivotal for maintaining the quality of perishable items. Unfortunately, many farmers encounter delays that stem from inadequate infrastructure, a lack of efficient transportation options, or various logistical hurdles. These setbacks can lead to significant spoilage, erasing potential profits and compromising the farmers’ ability to deliver fresh produce to their customers promptly.

4. Limited Market Access

Access to reliable markets remains a significant hurdle for many farmers. Often, they find themselves without viable options for selling their produce and are forced to rely on middlemen, who usually purchase at considerably lower prices. This not only strips farmers of fair compensation but also increases the likelihood that their goods will linger in storage for extended periods, further elevating the risk of spoilage and financial loss.

The Role of Digital Marketplaces in Reducing Post-Harvest Losses

Using mobile phone to check the quality of a product
Source: QR Tiger

Digital agriculture marketplaces are pivotal in addressing the significant challenges associated with post-harvest losses in the agricultural sector. These platforms provide a variety of solutions that can effectively minimise food waste and enhance the efficiency of the supply chain. 

Some ways these platforms can help reduce food loss include 

1. Connecting Local Farmers with Buyers

By connecting farmers directly with buyers, such as retailers, restaurants, and consumers, these marketplaces facilitate quicker transactions and help ensure that fresh produce reaches its intended destinations in a timely manner.

Additionally, digital agriculture marketplaces often incorporate advanced technologies like data analytics, artificial intelligence, and blockchain to enhance transparency and traceability throughout the supply chain. This technological integration not only streamlines processes but also provides farmers with valuable insights into market trends, pricing, and demand, enabling them to make informed decisions about their crops. 

2. Bringing Surplus Produce from Farms to Food Banks

In the effort to reduce food waste and provide nutritious food to those in need, various digital agriculture marketplaces have emerged to link farmers with food banks. One prominent example is FarmLink, a nonprofit organisation which operates largely through the dedication of student volunteers. FarmLink functions by creating a network that allows for the collection of excess produce from farmers who may not have a market for their surplus. By utilising donations from community members and businesses, FarmLink is able to financially compensate farmers for their extra harvest. Additionally, the nonprofit also funds truckers who are responsible for transporting this surplus food directly to food banks, ensuring that it reaches those who require assistance. 

3. Putting Surplus Produce into Consumer Packaged Goods

Another way digital agriculture marketplaces can help reduce post harvest loss is by connecting farmers directly with manufacturing companies. A good example is Full Harvest, a socially conscious company based in San Francisco.  By utilising an innovative online marketplace, Full Harvest primarily connects large farms with food manufacturing companies that are interested in purchasing surplus and imperfect fruits and vegetables. This platform enables farmers to sell products that might not meet traditional retail standards but are still perfectly good for consumption. 

The customer base for Full Harvest is diverse and includes various sectors of the food industry, such as soup manufacturers, juice producers, baby food brands, and even companies that produce pet food. By creating these additional channels for surplus produce, Full Harvest not only aids farmers in getting fair value for their crops but also helps reduce the environmental impact of food waste while providing high-quality ingredients to food manufacturers across the country.

Features of Digital Marketplaces That Help Reduce Losses

Some features that make digital marketing platforms a solution to post-harvest loss include:

– Optimised for Perishables: Most digital marketplaces have advanced tools for managing products with shorter shelf lives allowing farmers to sell them off quickly without experiencing any loss. 

– Supports Local Delivery: One major cause of post harvest loss is poor transportation. Every good digital marketplace offers quality transportation and logistic services which facilitates local delivery, and nationwide shipping reducing the amount of food loss due to poor transportation.

– Inventory Management: Digital Marketplaces offer a comprehensive inventory management system designed for farms and food producers, allowing users to easily track and update products, prices, and inventory from a centralised platform, which enhances efficient stock management.

– Manage All Sales in One Place: Whether selling to one retailer or many, digital market platforms simplify the management of customer accounts of all sizes. Their features make it easy for farmers to sell to grocery and retail stores, organise orders for chefs and consumers, and provide multiple invoice formats to meet various sales needs, broadening the consumer base.

Advantages of Digital Marketplaces Over Traditional Selling Methods

Farmers greatly benefit from using digital marketplaces as these platforms allow them to reach a wider audience beyond local markets. This would potentially lead to increased sales and higher profits. By accessing broader consumer bases, farmers can tap into new market segments that were previously out of reach.

Digital marketplaces also offer valuable data and insights, enabling farmers to track product popularity and customer preferences. This data-driven approach helps optimise production strategies and improve decision-making, resulting in more efficient farming practices. 

By adopting digital marketplaces, farmers can cut post harvest losses down to a minimum, reduce marketing costs, and improve shipping and packaging efficiencies. Although there is an initial setup investment, the long-term savings and operational efficiencies often lead to overall cost reductions making digital marketplaces a cost-effective choice for farmers. 

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Agritech Digest seeks to provide the latest agricultural news, technology, innovations, and insights to promote awareness of agritech startups. Agritech Digest aims to showcase the vast potential of the agricultural technology industry by attracting investors and young talent through highlighting technology and innovations in the agritech industry.

Agritech Digest seeks to provide the latest agricultural news, technology, innovations, and insights to promote awareness of agritech startups. Agritech Digest aims to showcase the vast potential of the agricultural technology industry by attracting investors and young talent through highlighting technology and innovations in the agritech industry.

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