Our ultimate target is the trillion-dollar U.S. food and agriculture industry (roughly 6% of the GDP). American farm outputs
alone total roughly 1% of the GDP, or over $130 billion. Corn, wheat and soybeans routinely top the rankings of U.S.
production numbers, and California - which produces over 80% of the world’s almonds, and some $6 billion worth of grapes
annually - is the largest agricultural state in the country. (Globally, food and agribusiness comprise a $5 trillion industry.)
We are spearheading our efforts of product maturation in the red-hot cannabis industry, where blockchain-enabled
transparency, and the Pavo IoT platform, is most needed. The solution is already deployed in two San Francisco Bay area
Through the use of the turn-key Pavo platform, every business-to-business (B2B) cannabis professional will benefit from the
IoT and blockchain capabilities with minimal additional expense, special expertise or major disruption to their day to day
operations. Pavo brings a fresh, new, approach to an exciting industry where relationships take years to develop and the
extent of control is limited.
As the Pavo solution fully matures in the cannabis market, we will gradually tackle adjacent crop sectors (e.g. indoor
vegetable farming), and then move on to larger sectors, to expand market penetration throughout the entire agriculture
Globally, food and agriculture represent a $5 trillion industry, which only gets bigger with population growth. Some forecasts
call for the total, global, caloric demand to increase by 70 percent by 2050, when there will be a projected 9.6 billion people
on the planet, and crop demand for human consumption and animal feed will increase by at least 100 percent. The smart
agriculture market alone is projected to grow from $5.18 billion in 2016 to $11.23 billion by 2022, at a compound annual
growth rate of 13.27% between 2017 and 2022. And the legal cannabis market is poised for even more rapid growth.
The discovery of gold at Sutter’s Mill in 1848 sparked a rush to California of those seeking to make their fortune.
Likewise, the current Green Rush is upon us, also anchored in California, as thousands of investors,
entrepreneurs and corporations look for ways to capitalize on the nascent cannabis market. Ironically, John
Augustus Sutter set out in the early eighteen forties not to find gold, but to create New Helvetia, a kind of
agricultural farming utopia, wherein he might retire.
Projections call for the legal cannabis market in the United States to grow from over $4.6 billion in 2014 to almost $23
billion in 2020, a 31% compound annual growth rate.* (Some projections range as high as $60 billion within a decade.) This
is attributable to a spate of new legislation permitting cannabis consumption by adults on a recreational basis.
Total demand for recreational cannabis in the U.S. is estimated to exceed that for wine and organic food. Cannabis
dispensary annual revenue per square foot already rivals that of Whole Foods Market and Costco.
Cannabis supply chain participants are increasingly looking to technology solutions such as cloud computing, Internet of
Things (IoT) networks and electronic sensors to ensure that their operations are both financially and environmentally
sustainable, with growing consumer brand appeal.
Increased global caloric demand is placing new strains on agriculture. For example, by 2030, according to a United Nations report, some 40 percent of water demand may not be met. To better manage vital resources, farms are seeking out new ways to collect and analyze data on crop yields, soil profiles, weather and climate. Regarding cannabis, as of late 2017, some 29 states, and Washington, D.C., have legalized medicinal cannabis, and 9 states, and Washington, D.C. have legalized recreational use. While this sounds promising, with demand and social acceptance increasing, market participants are still facing several challenges with regards to consistently delivering profitable high-quality crops:
1. Decreasing prices.
Increasing consumer demand, fueled by greater legal and societal acceptance, has not led to a rise in prices. On the contrary, an expansion of growing facilities, increasing both supply and competition as well as a rapidly maturing industry trying to find price equilibrium is driving prices downward. Since 2014, wholesale prices for cannabis have fallen by 70% and consumer prices in Colorado, one of thevery first states to legalize recreational use, havedropped precipitously, in the past year by as much as 40% for 1/8 of an ounce. Prices for a full ounce have dropped on the order of 25%.
2. Rising costs.
At the same time, utility costs – one of the largest expenses for growers – are rising. Since cannabis is the only crop thatthrives indoors with artificial light, growers are gettin gpinched by rising costs and falling prices.
3. Yield and Quality.
Growers are striving to produce high-yield, high-quality product to remain competitive in a growing consumer market. In the absence of suitable technology, growing
cannabis is labor intensive and hard to scale.
4. Growing space.
Indoor growers struggle to secure and maintain long-term leases for warehouse space, as landlords tend to be hesitant to lease space for cannabis production, largely
because of a lack of trust.
5. Federal prohibition.
Industry participants are constantly at risk of federally-chartered banks closing their accounts because of the U.S. federal cannabis prohibition, forcing them to deal
in fiat cash.*
6. Regulatory oversight.
The legalization of cannabis has brought with it a raft of legislation at multiple levels of government, leaving market participants struggling to maintain compliance.
7. Supply chain.
As the industry comes out of the black market, growers and other participants are looking to elevate their game when it comes to sourcing and managing their supply chain. They’re also looking to openly network with other industry professionals.
8. Product differentiation and branding.
Growers and other industry participants are increasingly turning to classic Consumer Packaged Goods (CPG) tactics, such as stressing quality and purity, to differentiate their products and stand out from the crowd.
9. Environmental issues.
Increased electricity consumption due to indoor grow houses leads to increased greenhouse gas emissions. (Specifically, increased demand for electricity in Colorado, Washington and Oregon, attributed to growers, conflicts with those states’ efforts to reduce greenhouse gas emissions.) And consumers are concerned about the unintended environmental side effects of solutions and nutrients used to nurture the crop.
10. Lab Testing.
Testing for safety compliance, a cost often measured in the tens of thousands of dollars per crop, further adds toindirect operating costs. (The global cannabis testing market alone is projected to reach $1.4 billion by 2021.) Growers know that test lab certification is a must-have for taking product to dispensaries. Therefore, it is only natural that the cannabis industry is turning to technology to alleviate these burdens. As the cannabis industry experiences unprecedented growth fueled by legalization, growers need to prepare for new regulations and increased competition to win over increasingly sophisticated consumers. Thus, running grow operations with utmostefficiency while staying well within the boundaries of local and state laws at all times becomes a matter of survival for allcannabis producers.Unlike manytechnology companies that have issued private digital currencies (a.k.a. a cryptocurrency), Pavo already has aworking product that is in deployment with customer prospects in multiple grow sites. Pavo provides an IoT softwareplatform for industrial agriculture, which unleashes significant operational efficiencies.* Implementing blockchain will provide increased product transparency for crops from seed through harvest to consumption. Proceeds from Pavo’s coin issue will be used to accelerate continued product and market development.
By bringing together the cutting-edge technologies of IoT and blockchain, and our extensive experience in crop cultivation we are serving an agriculture (“Ag”) ecosystem focused on highly technologized crop growing, processing, and distribution. We bring the high efficiency of IoT and transparency of blockchain into every stage of the entire lifecycle of agricultural business sectors. The Pavo team has vast experience building traditional monitoring systems for almonds, hazelnuts and walnuts for the European market. Our present IoT solution for agriculture was developed in early 2017 and deployed later in the same year. This year, we’re launching the Pavo cryptocurrency based on the blockchain Ethereum ERC20 standard as the next step in developing the project.
By bringing together the cutting-edge technologies of IoT and blockchain, and our vast experience in crop
cultivation we are serving an agriculture ("Ag") ecosystem focused on highly technologized crop growing,
processing, and distribution.
- What we are experts in
- Building monitoring systems for valued crops
- 10 years of experience with almonds,
- hazelnuts and walnuts.
That's why we built it Pavo's, IoT system is used for monitoring and optimizing the entire lifecycle of crop production. Today Pavo is being beta tested in California. And we don't stop there
Pavo brings together everything the AgTech ecosystem needs from a single platform: secure transactions, secure payments, smart contracts and cashless transactions.
Pavo Functionality. Solving Industry Problems:
A software solution that helps with regulatory compliance from seed to market.
A solution that helps growers better manage the costs of labor, supplies and electricity.
A way for growers to better track their product and test results, and to better brand themselves as providers of a safe, high quality, environmentally friendly product.
A secure digital cryptocurrency to obviate the problems and dangers of dealing in cash.
Geography and crops
Almonds, Hazelnuts, Walnuts
Our team has spent a lifetime working across the agricultural ecosystem which led us to build a platform designed to increase quality and yields for growers.
2.What we are doing now:
Pavo's Platform combines IoT with blockchain for the AgTech ecosystem which delivers the real-time data growers, suppliers and wholesalers need to make informed decisions.
Pavo will deliver a complete platform solution to the AgTech ecosystem which will make it possible to securely follow crop production from seed to store.
All agricultural sectors
4.Long term goals:
Dramatically improve the way growers, suppliers and wholesalers interact with each other across the globe by providing a single platform for monitoring and transacting in the AgTech ecosystem.