How does the Farmers’ Intersection auction floors work?
How to join?
How to bid?
What are the charges?
The Farmers’ Intersection auction floors will work on a commission with the commission being deducted from the sellers’ payments. The financial model is that the auction floors will operate on a 7% commission plus VAT (15%). For a Buyer to participate in an auction, the Buyer will be required to have enough funds in their Farmers’ Intersection account to cover the bids or alternatively, a line-of-credit issued by their bank. All purchases made on a line-of-credit must be paid in full on the Monday morning following the week of sale. Farmers will be paid their product sale values, less deductions (commission, VAT, etc.) on the Friday following the week of sale via a recognized banking account. If funds allow, smaller volume ‘fragile’ farmers will be paid earlier.
Can a buyer buy on credit?
Buyers with a bank line-of-credit approval may make purchases up to agreed limits on a weekly rollover basis, but all purchases for the week must be paid in full the following Monday morning. Discussions are under way to investigate if affordable & practical credit mechanisms can be developed to facilitate Buyers participation in the Farmers’ Intersection auction floors & help afford them the opportunity to expand their businesses.
Who handles transportation?
Farmers are responsible for the logistics and costs of delivering their products to the Auction Floor. Once a product is sold it is prepared and dispatched to the nearest population center/transport hub by the Farmers’ Intersection auction floor, where it is either delivered or linked in to other transport systems for alternative destinations. The sale price will cover the cost of transport to the nearest transport hub. This will facilitate buyers to use one pricing structure for different auction sites feeding into the one transport hub. The Buyers are responsible for all transport charges beyond the nearest transport hub. Farmers will be alerted by SMS when their products are received onto the floor and Buyers when their products are dispatched.
How does the Farmers’ Intersection auction floors work?
Farmers grade and package their products for auction at home or community points & forward to the Auction Floor for sale. On arrival, the products are checked by Standards Association of Zimbabwe (SAZ) trained Graders, labelled, photographed & all details entered onto the Farmers’ Intersection auction floor database which is open for all to see. When the auction commences, only registered Buyers can bid for the products on offer, in real-time, on-line via the internet. Once a sale is made, the sold product is dispatched to the nearest major population center (transport hub) for delivery, or to link in with other transport mechanisms for national distribution.
