Malawi - Startup under 3 years old

Describe your project or startup in a few words

RhoNic Farm plans to process tomatoes into puree thus, reducing wastage & extending shelf life from 2 weeks to 6 months. This will reduce farmers' income loss from low prices, offer consumers a cheaper, more convenient alternative, & substitute imports.

01.01 Describe your startup in more detail

In 2022, RhoNic Farm started a horticulture venture focusing on tomato production, a widely used ingredient in Malawian dishes. Despite thorough market analysis & high-quality produce, RhoNic faced losses due to market oversupply, causing significant tomato wastage. Conversely, in 2023, widespread crop damage led to an undersupply in most markets, driving prices so high that many low- and middle-income families couldn't afford tomatoes. These challenges led RhoNic Farm to shift its strategy to producing tomato puree. RhoNic Farm plan to buy raw tomatoes from local farmers during peak season, process them into paste, and sell it at affordable prices This strategy will reduces wastage, stabilizes farmers' incomes by preventing losses from low prices, & will provide a cheaper, more convenient alternative to raw tomatoes for consumers. By doing so, RhoNic Farm will also be supporting local agriculture & ensuring a consistent, affordable supply of tomato products for Malawian households.

01.02 What is the main problem you are trying to solve?

The main problem that RhoNic Farm is trying to solve is the seasonal fluctuation in the supply and price of tomatoes in Malawi. Tomatoes are essential in Malawian cuisine, but their prices vary drastically, from US$0.2 per kg in peak season to US$2 in the lean season. This volatility harms both producers and consumers. Farmers face significant post-harvest losses, exceeding 30%, due to limited processing options. Meanwhile, households struggle to afford tomatoes during the lean season, with few alternatives available. Our solution aims to stabilize prices, reduce post-harvest losses, and provide affordable tomato alternatives year-round.

01.03 Tell us the major benefits and/or advantages of using the product/service that your startup provides (at least 3).

1. Reduced food waste. By processing raw tomatoes into puree, RhoNic Farm will reduce food waste. About 30% of tomatoes are wasted due to limited processing. Converting these tomatoes into puree extends their shelf life from about 2 weeks to 6 months thereby reducing the environmental impact of wasted food. 2. Increased access to affordable nutrition Tomato puree provides a more affordable alternative to fresh tomatoes during the lean season. This will benefit low-income households who struggle to afford fresh tomatoes, ensuring they can still access essential nutrients & ingredients year-round. 3. Stable Income for farmers The puree project will stabilize income for local farmers & shield them from losses during periods of oversupply. 4. Substitution of imports Many processed tomato products in the country are imported due to limited local processing. Producing tomato puree locally will reduce the need for imports, thereby saving foreign exchange & boosting the local economy.

01.04 Please describe who exactly your startup’s product/service is aimed at serving. Who are the targeted beneficiaries?

1. Households RhoNic will target low- and middle-income households in high-density areas of major cities such as Blantyre, Lilongwe, Mzuzu, & Zomba. These households often live hand-to-mouth & are significantly impacted by seasonal spikes in tomato prices. Through this project, RhoNic will ensure that these households have access to a stable & cost-effective source of tomatoes for their daily cooking needs. 2. Food businesses Restaurants, hotels, and caterers rely heavily on tomatoes as a key ingredient in their menus. Fluctuating tomato prices and availability significantly impact their operational costs & product consistency. RhoNic tomato puree will support these businesses in managing their expenses and maintaining the quality of their food offerings throughout the year. 3. Farmers Rural tomato farmers will benefit from RhoNic's tomato processing since they will get a reliable market for their tomatoes during peak seasons which will enable them to support their families.

01.05 When was your company established?

2022-06-07

01.06 Are you already selling your product/service?

No

01.07 How many other owners are there within your startup?

3

01.08 Among the other owners, how many are female?

1

01.09 Please describe the profile of the other owners within your startup (skills, experience, etc.)

Semu Kangola (Managing Director) Has a strong background in project management and natural resources management, Semu leads the strategic direction of RhoNic Farm. His expertise in financial management ensures sustainable growth and effective resource allocation, driving our mission forward. Rhoda Kanjirawaya (Secretary) Rhoda leverages her teaching background to lead RhoNic's marketing and community relations. Nicodemus Kangola (Operations Manager) Nicodemus has an engineering and farming background. He lead crop production and maintenance operations at RhoNic farm. His innovative approach has streamlined processes and enhanced operational efficiency, contributing to our overall success.

01.10 If you have a website, a social media page (Facebook, Instagram, Linkedin…), or app, please provide the link(s) here:

https://www.facebook.com/profile.php?id=100085006626064

01.11 Which industry best describes your project?

d) Primary commodities (food, drink, household and personal products)

02.01.01 My startup contributes to the No poverty goal

7 - Strongly Agree

02.01.02 No poverty - Justification for my startup

SDG 1 aims to end poverty in all its forms everywhere. This goal entails granting equal access to economic resources, and reducing exposure to economic and environmental shocks. The Rhonic Tomato Puree project will contribute towards this goal in at least 2 ways; Firstly, since the farm will be purchasing raw tomatoes from local farmers during peak seasons, it will provide a reliable market for farmers' produce, thereby stabilizing their income and reducing vulnerability to market fluctuations Secondly, tomato processing and distribution will create additional jobs in the community, from farm workers to processing staff and local market sellers. This increase in employment opportunities will translate into increased household incomes and economic stability.

02.02.01 My startup contributes to the Zero hunger goal

5

02.02.02 Zero hunger - Justification for my startup

SDG 2 seeks to end hunger, achieve food security, improve nutrition, and promote sustainable agriculture. This involves ensuring that all people, especially the poor and vulnerable, have year-round access to sufficient, nutritious food and enhancing agricultural productivity and sustainability. RhoNic Farm will ensure affordable, nutritious tomato products are available throughout the year, even during lean seasons when fresh tomatoes are scarce and expensive. This will help low- and middle-income households maintain a healthy diet. Additionally, by purchasing tomatoes that would otherwise go to waste, RhoNic will increase farmers' incomes thereby enabling them to sustain their households.

02.03.01 My startup contributes to the Good health and well-being goal

4

02.03.02 Good health and well-being - Justification for my startup

02.04.01 My startup contributes to the Quality education goal

4

02.04.02 Quality education - Justification for my startup

02.05.01 My startup contributes to the Gender equality goal

6

02.05.02 Gender equality - Justification for my startup

RhoNic Farm will partner with local tomato traders, many of whom are women, for the distribution of its puree in local markets. This collaboration will leverage existing relationships between traders and consumers to effectively market the product. In doing so, RhoNic Farm will create stable and profitable business opportunities for these women, support their economic independence, and enhance their financial stability. Thus, this initiative aligns with the SDG on gender equality by empowering women economically and promoting their roles in the local economy.

02.06.01 My startup contributes to the Clean water and sanitation goal

4

02.06.02 Clean water and sanitation - Justification for my startup

02.07.01 My startup contributes to the Affordable and clean energy goal

4

02.07.02 Affordable and clean energy - Justification for my startup

02.08.01 My startup contributes to the Decent work and economic growth

7 - Strongly Agree

02.08.02 Decent work and economic growth - Justification for my startup

SDG 8 aims to promote inclusive and sustainable economic growth, full and productive employment, and decent work for all. RhoNic Farm will contribute to this goal in the following 2 ways; 1. Job Creation: The project will create jobs in areas such as farming, processing, and distribution. RhoNic Farm will work with local farmers, hire staff for processing, and partner with local traders which will generate employment opportunities in both rural and urban areas. 2. Economic Empowerment: The farm will provide a stable market and fair prices for tomatoes, thereby supporting local farmers' economic empowerment. This economic empowerment will also extend to local tomato traders, who are mostly women, thereby promoting inclusive economic growth.

02.09.01 My startup contributes to the Industry innovation and infrastructure

4

02.09.02 Industry innovation and infrastructure - Justification for my startup

02.10.01 My startup contributes to the Reduced inequalities goal

4

02.10.02 Reduced inequalities - Justification for my startup

02.11.01 My startup contributes to the Sustainable cities and communities goal

2

02.11.02 Sustainable cities and communities - Justification for my startup

02.12.01 My startup contributes to the Responsible consumption and production goal

7 - Strongly Agree

02.12.02 Responsible consumption and production - Justification for my startup

This goal focuses on sustainable consumption and production patterns. It entails reducing waste, including food waste, using resources efficiently, and changing consumption habits. RhoNic Farm's tomato processing project will address this goal by tackling food waste. During peak harvest seasons, excess tomatoes can spoil before reaching consumers. Processing these tomatoes into puree will preserve them, preventing waste and ensuring they get people's tables. Through the same processing of tomatoes, RhoNic Farm will ensure that all the resources invested in growing the tomatoes are utilized since no tomatoes will go to waste, and all the resources put into production will be maximized.

02.13.01 My startup contributes to the Climate action goal

4

02.13.02 Climate action - Justification for my startup

02.14.01 My startup contributes to the Life below water goal

1 - Strongly Disagree

02.14.02 Life below water - Justification for my startup

02.15.01 My startup contributes to the Life on land goal

4

02.15.02 Life on land - Justification for my startup

02.16.01 My startup contributes to the Peace Justice and Strong Institutions goal

1 - Strongly Disagree

02.16.02 Peace Justice and Strong Institutions- Justification for my startup

02.17.01 My startup contributes to the Partnerships for the goal

1 - Strongly Disagree

02.17.02 Partnerships for the goal - Justification for my startup

06.01 There are a large number of customers who already use a product/service very similar to the product/service we envision creating.

2

06.02 The product/service represents an entirely new type of product/service.

1 - Strongly Disagree

06.03 The product/service could be described as a new technology.

4

06.04 The product/service is an improvement on an existing product or service.

5

06.05 The product/service could be described as an extension of a range of products or services.

6

06.06 The product/service responds to a demand or need that has not been satisfied by other products/services.

7 - Strongly Agree

06.07 The product/service is a new version of an old product/service.

5

06.08 Justification for my startup

Tomato puree and other processed tomato products are not new in Malawi but are not widely adopted by low and middle-income earners. This is due to limited access, as most processed tomato products are found in supermarkets and are relatively expensive compared to raw tomatoes. Consequently, when raw tomatoes are scarce, consumers have few alternatives. RhoNic Farm aims to address this market gap by making tomato puree more accessible and affordable in local markets, especially for low- and middle-income households. RhoNic recognizes that achieving this task will require a shift in consumption patterns that its why it will invest heavily in marketing of the products and community engagement.

06.09 Competitive Analysis

Locally, Kwithu Kitchen holds the largest market share of processed tomato products in Malawi, while international brands like Rhodes dominate the industry overall. These brands primarily target high-income earners and big businesses via supermarkets. RhoNic Farm will focus on low- and middle-income households, a segment underserved by competitors. According to the National Statistical Office, Blantyre City alone has over 11,000 households in the low and middle-income earning category, representing a market of over USD 379,000 annually. To exploit this potential, RhoNic will price products affordably, distribute them through local traders, and source tomatoes during peak production to lower costs. RhoNic will invest in marketing to establish a niche and stand out from competitors.

11.05 Are you initiating actions within your community to promote the role of female entrepreneurs?