Farmmi, Inc. (FAMI): Business Model Canvas [Dec-2025 Updated]

You're looking to map out exactly how the company is making money, especially now that they're aggressively pivoting into U.S. warehousing and logistics services in late 2025, which is a big shift from their core edible fungi business. Honestly, understanding this dual focus-from their established, certified farm-to-table supply chain, which generated $43.83 million in trailing twelve months revenue, to securing a potential $10 million annual logistics contract-is key to valuing their near-term trajectory. This Business Model Canvas breaks down the nine essential blocks, showing you the resources, like that new 636,000 sq ft California base, and the specific customer segments driving this complex, defintely evolving model, so you can see the whole picture right now.

Farmmi, Inc. (FAMI) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Farmmi, Inc. (FAMI) relies on to move product and maintain quality, especially as the company navigates its recent financial shifts. These partnerships are critical for bridging their Chinese sourcing and processing capabilities with the North American market.

Mazon Technology for U.S. Warehousing and Logistics Services

The strategic cooperation agreement in principle with Mazon Technology LLC, announced in October 2024, is a major operational development for Farmmi USA. This partnership is specifically designed to enhance warehousing and logistics, focusing on services like "one-piece delivery" for e-commerce products, shipping container warehousing, and customs clearance agency services. The potential scale of this relationship is significant, with projections that it could bring in $10 million in annual orders for Farmmi USA. This potential revenue stream is set against the backdrop of the company's recent financial performance; for the half-year ending March 31, 2025, Farmmi, Inc. reported revenue of $16.14 million. Farmmi USA also expanded its physical footprint to support this, announcing the grand opening of a new warehouse in New Jersey in March 2025, following the trial operation launch of its California base in August 2024.

Network of Standardized Family Farms for Raw Material Sourcing

Farmmi, Inc. operates as an agriculture products supplier, processor, and retailer, which inherently depends on a robust network for raw materials, primarily edible mushrooms like Shiitake and Mu Er. While specific 2025 metrics detailing the size or financial contribution of this network are not publicly itemized separately from overall agricultural revenue, the company's core business model relies on this structure. The company's total revenue for the fiscal year ending September 30, 2024, was $64.13 million, which was derived significantly from these agricultural segments. The operational strategy involves building out a scalable platform to match suppliers and customers efficiently.

Global Distributors and High-Volume Buyers (B2B)

The company sells its products both online and offline, with a clear focus on B2B channels through global distributors and high-volume buyers. The company's CEO noted in 2023 a focus on leveraging the global brand and customer network to drive revenue growth. The logistics expansion with Mazon Technology directly supports the efficiency of serving these B2B clients in North America. The last twelve months revenue ending March 31, 2025, stood at $43.83 million, reflecting the ongoing sales activity across all channels.

Certifying Bodies like HACCP and BRC for Quality Standards

Maintaining high quality standards is a non-negotiable partnership requirement for accessing premium markets. Farmmi's subsidiary, Zhejiang Forasen Food Co, LTD, successfully passed stringent audits for both the BRC Global Standard for Food Safety and Hazard Analysis Critical Control Point (HACCP) certification in September 2020. Achieving this "Double Certification" was directly linked to the ability to fully utilize an expected 20% increase in production capacity achieved through a technology transformation project. The BRCGS standard is recognized internationally, and maintaining these certifications is vital for compliance with strict regulatory standards, especially in North America, where the Food Safety Audit & Certification market is projected to reach $5.97 billion in 2025.

Here's a quick look at the scale and context of the logistics opportunity against recent financials:

The reliance on third-party certification bodies like those administering BRCGS and HACCP is a foundational element, as these standards help businesses comply with regulations and foster consumer confidence. Farmmi, Inc. must ensure these quality management systems remain current, especially given the recent updates to Codex HACCP principles being discussed in the industry as of May 2025.

You should check the latest 6-K filing from November 13, 2025, to see if the $10 million potential from Mazon Technology has materialized into actual recognized revenue in the Q3 or Q4 2025 filings. Finance: draft comparison of Q3 2025 logistics revenue vs. Q3 2024 logistics revenue by next Tuesday.

Farmmi, Inc. (FAMI) - Canvas Business Model: Key Activities

You're looking at the core engine of Farmmi, Inc. (FAMI) operations, the things they absolutely must do well to keep the lights on and the product moving. For a company dealing in specialized agricultural products like shiitake and Mu Er fungi, these activities are where the real value gets created, or lost.

Processing and packaging edible fungi and agricultural products

The foundation of Farmmi, Inc.'s business is taking raw agricultural goods and turning them into sellable packaged food items. This activity directly ties into the top-line revenue figures, which show the scale of output being processed and sold. For the fiscal year ending September 30, 2024, the company reported total revenue of $64,131K USD, which represents the total sales generated from these activities before the sharp decline seen in the subsequent half-year. The revenue for the half year ending March 31, 2025, was $16.14M USD. For context on the geographic source of these sales, China contributed 63.30 M USD to the revenue in the last reported full fiscal year.

Managing a vertically integrated global supply chain

Managing the flow from farm to customer is critical, especially with perishable goods. Farmmi, Inc. emphasizes its vertically integrated model to control quality and cost across the chain. A key strategic move to bolster this was a cooperation agreement announced in October 2024, which was projected to potentially generate $10 million in annual orders specifically for Farmmi USA's warehousing and logistics services. This integration aims to support the global distribution network that serves North America, Japan, Europe, and the Middle East.

Operating U.S. East and West Coast logistics and warehousing

Expanding the physical footprint in the U.S. is a major operational focus. The company launched its California logistics base in August 2024. Following this, Farmmi USA secured a lease for a new warehouse in Somerset, New Jersey, at 1100 Randolph Road, announced around March 24, 2025, to cover the East Coast market. The initial success of the West Coast operation was evident on its first day, August 12, 2024, when the Los Angeles distribution center received orders for 28 shipping containers. This dual-coast presence is designed to optimize distribution and reduce delivery times for U.S. customers.

Here's a snapshot of the scale related to the U.S. logistics expansion and the company's overall market valuation around the time of the East Coast announcement:

Quality control and food safety management system maintenance

Maintaining rigorous standards for edible fungi and agricultural products is non-negotiable for market access. While specific 2025 audit scores or compliance metric details aren't public, the company's focus on its U.S. expansion implies adherence to U.S. food safety regulations. The key activities here involve continuous monitoring and system upkeep to ensure products meet the standards required for distribution through their established channels, which include restaurants and supermarkets. The company relies on its two decades of experience in the Chinese agricultural industry to inform these quality processes.

The essential operational tasks underpinning these activities include:

• Sourcing edible fungi, including shiitake and Mu Er.
• Maintaining inventory control across the new U.S. warehouse network.
• Executing one-piece delivery and customs clearance services.
• Ensuring compliance with international food safety standards.

Finance: draft 13-week cash view by Friday.

Farmmi, Inc. (FAMI) - Canvas Business Model: Key Resources

You're looking at the physical and intellectual assets Farmmi, Inc. relies on to execute its business, especially as it expands its U.S. distribution capabilities. These resources are the bedrock for moving product from farm to customer.

The U.S. logistics network is a critical tangible asset, now spanning coast-to-coast. Farmmi USA Inc. secured a new warehouse in Robbinsville, New Jersey, spanning approximately 183,000 square feet, with expected delivery by September 1, 2025, or upon certificate of occupancy. This addition brings the total warehousing footprint in the U.S. to 640,000 square feet. This is built upon the existing base in California, which was established in 2024.

The company's processing capabilities are anchored by its facilities, which maintain high quality standards. The Lishui, Zhejiang Province production facility is a massive operation, encompassing 1,478,000 square feet and holding the mandatory food production SC License from the Chinese government. This facility, along with others, supports the premium quality claim.

Farmmi, Inc.'s processing facility established a comprehensive quality control management system and received several key certifications, which are vital for international trade and customer trust. These certifications represent documented proof of process control.

• HACCP international food safety and health system certification.
• BRC international food certification.
• QS China's food safety system certification.

The intellectual property and market recognition tied up in its brands are essential resources. These brands are used to market edible mushroom products and other agricultural commodities across global markets, including North America. The scale of operations these resources support is reflected in the company's latest financials; for instance, Farmmi's trailing twelve months (TTM) revenue as of late 2025 is reported at $43.83 Million USD.

The key brands driving sales through these distribution and processing assets include:

• Forasen
• Farmmi Liangpin
• Lishui Shangeng

Also important is the leased warehouse space that provides operational flexibility, such as the new 183,000 square feet Robbinsville, New Jersey facility, which helps integrate warehousing and logistics across both the East and West Coasts. Finance: review the Q4 2025 lease liability against the TTM Cash from Operations of $12.70M.

Farmmi, Inc. (FAMI) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Farmmi, Inc. (FAMI) in late 2025. It boils down to product trust and getting that product to you quickly across the US.

Certified safe and high-quality edible mushroom products

Farmmi, Inc. emphasizes providing high-quality agricultural products, including its core edible fungi like Shiitake and Mu Er mushrooms, to its global customer base. The company acknowledges the regulatory environment, noting that a lack of Public Company Accounting Oversight Board (PCAOB) inspections could result in a lack of assurance regarding the adequacy and accuracy of financial statements and disclosures, which is a risk factor related to external assurance of operations as of its January 24, 2025, 20-F filing. The business generated $64.13 million in revenue over the last twelve months ending around March 2025, with a Gross Profit Margin of 6.04% in that same period.

The value proposition centers on the quality of these core offerings:

• Shiitake Mushroom supply.
• Mu Er Mushroom supply.
• Commitment to high-quality agricultural products.

Vertically integrated supply chain ensuring source control

Farmmi, Inc. operates with a vertically integrated business model, which is intended to foster growth and expand market reach through strategic investments in agricultural technology and supply chain operations. This integration is key to maintaining control over the product from the source. The company's overall financial health, as of early 2025, showed a strong liquidity position with a Current Ratio of 16.1.

Rapid and efficient U.S. East/West Coast logistics services

The commitment to efficient distribution is evidenced by significant, recent infrastructure expansion designed to serve the entire U.S. market. Farmmi USA Inc. secured a new 183,000 square foot warehouse in Robbinsville, New Jersey, which was expected to be operational by the later of September 1, 2025, or upon receiving a certificate of occupancy. This facility brings Farmmi USA Inc.'s total U.S. warehousing footprint to 640,000 square feet as of August 2025. This expansion is explicitly aimed to optimize logistics, enhance supply chain efficiency, and shorten delivery times for East Coast customers, seamlessly integrating operations across both coasts.

Key logistics expansion metrics as of late 2025 include:

Diverse product portfolio including Shiitake and Mu Er mushrooms

Farmmi, Inc. specializes in the processing, sales, and retail of edible fungi. While the core focus remains on specific varieties, the company supplies a range of agricultural products globally. The primary products driving this value proposition are:

• Shiitake Mushroom.
• Mu Er Mushroom (Black Fungus).
• Other edible fungi and select agricultural commodities.

The company serves customers through multiple channels, including restaurants, supermarkets, specialty stores, and online platforms, under brands like Forasen and Farmmi Liangpin.

Farmmi, Inc. (FAMI) - Canvas Business Model: Customer Relationships

You're looking at how Farmmi, Inc. (FAMI) manages its connections with the people and businesses buying its products and services as of late 2025. The approach clearly splits between high-touch B2B logistics and broader transactional sales of agricultural goods.

Dedicated account management for large B2B buyers

For Farmmi, Inc.'s larger business-to-business (B2B) clients, especially within the expanding logistics division, the relationship is clearly managed through dedicated agreements rather than simple one-off purchases. This is where the company commits resources to ensure service continuity, which is critical for supply chain partners.

The most concrete example of this contract-based relationship is the strategic cooperation agreement Farmmi USA, Inc. reached with Mazon Technology LLC. This partnership, focused on warehousing and logistics services like 'one-piece delivery,' could potentially bring in $10 million in annual orders for Farmmi USA. That figure shows the scale of commitment they are structuring for key logistics customers.

This infrastructure investment directly supports these high-value B2B relationships. Farmmi USA Inc.'s total warehousing footprint in the U.S. reached 640,000 square feet following the August 2025 lease signing for a new 183,000-square-foot facility in New Jersey, designed to integrate East and West Coast operations for better service delivery to these key clients.

Transactional sales via online and offline retail channels

For the core agricultural products-edible fungi like shiitake and wood ear mushrooms-the customer relationship leans heavily on transactional volume across multiple points of sale. Farmmi, Inc. sells its products to restaurants, supermarkets, and specialty stores, alongside direct-to-consumer efforts.

The company distributes products under brands like Forasen and Farmmi Liangpin, serving markets including North America, Japan, Europe, and the Middle East. While specific transactional revenue splits aren't broken out in the latest filings, the overall revenue context shows the scale of these activities. For the half-year ending March 31, 2025, the company reported revenue of $16.14M, and the trailing twelve months revenue stood at $43.83M.

The customer base for these transactional sales is broad, but the company's structure is designed to handle volume through established distribution networks. Here's a look at the infrastructure supporting these varied customer touchpoints:

Contract-based service agreements for logistics clients

The logistics segment is defined by formal, contract-based service agreements, moving away from simple product sales. These contracts lock in service requirements and revenue potential, which is a different dynamic than selling mushrooms off the shelf.

The services provided under these agreements are specialized, including:

• One-piece delivery for e-commerce products.
• Shipping container warehousing.
• Customs clearance agency services.

The agreement with Mazon Technology LLC is the prime example, showing the company is securing multi-faceted service contracts. This focus on logistics infrastructure, including the new facilities in California (launched August 2024) and New Jersey, is intended to improve supply chain efficiency and delivery speed for these contract customers. If onboarding takes 14+ days, churn risk rises, so speed here is key to retaining these contract clients.

The financial commitment from this relationship is significant when viewed against the company's overall size. The potential $10 million in annual orders from this single logistics partner represents a substantial portion of the $43.83M TTM revenue reported as of March 31, 2025.

Finance: draft 13-week cash view by Friday.

Farmmi, Inc. (FAMI) - Canvas Business Model: Channels

You're looking at how Farmmi, Inc. moves its agricultural products-mostly edible fungi like shiitake and wood ear mushrooms-from its processing centers to the end-user as of late 2025. The channel strategy heavily leans on a mix of direct B2B sales supported by a rapidly expanding U.S. logistics network.

Direct sales to restaurants, supermarkets, and specialty stores

Farmmi, Inc. uses local distributors to push its products through established commercial channels. This is the traditional backbone for their agricultural sales, which also includes trading cotton and corn. The company offers its products under brands like Lishui Shangeng, Farmmi Liangpin, Forasen, Farmmi, and Puyangtang. The direct customer base includes:

• Processing manufacturers.
• Supermarkets.
• Restaurants.
• Cafeterias.
• Local specialty stores.

To give you a sense of the scale these channels operate within, Farmmi's revenue in the last twelve months (TTM) ending March 31, 2025, totaled $43.83M, which was down -49.19% year-over-year from the prior TTM period. For context, the revenue for the half-year ending March 31, 2025, was $16.14M.

E-commerce and online platforms for retail consumers

While the search results confirm Farmmi distributes via online channels, specific revenue figures attributed solely to e-commerce for 2025 aren't explicitly broken out from the overall sales figures. The company's overall business model includes both wholesale and retail distribution, suggesting online platforms are part of the retail component.

U.S. logistics hubs for cargo transfer and bonded warehouses

Farmmi USA Inc. has made significant, concrete investments in its U.S. logistics infrastructure in 2025 to support distribution across North America. This is a key operational channel enhancement, starting with their U.S. warehousing logistics base in California in 2024. The 2025 expansion focused on the East Coast, adding two major facilities.

Here is the breakdown of the physical logistics footprint expansion in the U.S. as of late 2025:

This expansion is intended to streamline operations, reduce shipping costs for Eastern U.S. customers, and shorten delivery times. The services offered through these hubs include one-piece delivery, shipping container warehousing, and customs clearance agency services.

International export channels across Asia, Europe, and North America

Farmmi, Inc. serves global markets, with its products reaching several key regions outside of its primary base in China. The company's global reach is defined by the markets it serves, which are critical for its export channel strategy. The primary geographic markets mentioned for distribution include:

• North America (supported by the U.S. logistics expansion).
• Europe.
• Japan.
• Korea.
• The Middle East.

The largest revenue contributor by geography in the year prior to the latest filing was China, bringing in $63.30M USD. The U.S. logistics expansion is explicitly tied to strengthening the international presence and enhancing global competitiveness.

Finance: draft 13-week cash view by Friday.

Farmmi, Inc. (FAMI) - Canvas Business Model: Customer Segments

You're looking at the customer base for Farmmi, Inc. (FAMI) as of late 2025. The company is a holding entity focused on the processing and sale of packaged foods, with a core emphasis on edible mushrooms like shiitake and Mu Er, plus other select agricultural commodities. The latest reported revenue for the half year ending March 31, 2025, was \$16.14M, down -73.34%. The total number of full-time employees is listed as 42.

The customer base is structured around several distinct groups, reflecting its global trading platform ambition for agricultural products:

• Global food distributors and wholesalers in key markets: These customers receive products for onward distribution across Farmmi, Inc.'s established international footprint, which includes North America, Japan, Europe, and the Middle East.
• U.S. e-commerce and logistics companies needing warehousing: While the search results confirm an online channel presence, specific data on warehousing contracts or revenue from U.S. logistics partners is not explicitly detailed in the latest filings.
• Retail consumers seeking organic and healthy packaged foods: Sales reach consumers via supermarkets, specialty stores, and online channels under brands such as Forasen and Farmmi Liangpin. The overall focus is on sustainable, organic, and green agricultural products.
• Commodity traders for cotton, corn, and other agricultural products: Farmmi, Inc. deals in select agricultural commodities alongside its primary mushroom focus.

Here's a breakdown mapping the known operational scale to these segments. What this estimate hides is the revenue split per segment, which isn't publically itemized in the latest data.

The company manages its industry chain through Internet marketing for agriculture products, supported by agricultural technology research and development and product processing at its major plant in Lishui City. The customer base is served by a relatively lean operational structure. Finance: draft 13-week cash view by Friday.

Farmmi, Inc. (FAMI) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive Farmmi, Inc.'s expenses as of late 2025. Honestly, the cost side of the ledger is where the pressure is most visible, especially given the scale of their recent U.S. infrastructure build-out.

Significant cost of goods sold (COGS) for raw material procurement

The cost of the actual agricultural products-the fungi and other goods-is the single largest drain on revenue. For the fiscal year ending September 30, 2024, the Cost of Goods Sold was reported at $60.26M. Considering the total Revenue for that same period was $64.13M, this means raw material procurement and direct production costs consumed approximately 94.0% of sales. This high COGS ratio is what drove the Gross Margin down to just 6.04% for FY2024.

Operating expenses for multiple U.S. warehouse leases and logistics

Logistics is a major, growing component of the operating spend, directly tied to the company's U.S. expansion strategy. As of August 2025, Farmmi USA Inc. expanded its U.S. warehousing footprint to a total of 640,000 square feet, following the addition of a new 183,000 square foot facility in Robbinsville, New Jersey. These lease payments, associated logistics management, and distribution costs fall under the broader Operating Expenses bucket. For the fiscal year ending September 30, 2024, total Operating Expenses hit $63.34M. This figure dwarfs the Gross Profit of $3.87M from the same period, leading to an Operating Income of only $0.80M for FY2024, though a later report for the period ending March 31, 2025, showed an Operating Income of -786.6k USD.

The key cost drivers related to operations are summarized below:

Processing facility operation and quality control system costs

Costs for running the processing facilities, which handle the edible fungi and other agricultural products, along with maintaining the quality control systems, are embedded within the Total Operating Expenses of $63.34M (FY2024). While specific line-item breakdowns for processing versus quality control are not explicitly detailed in the latest public statements, these activities are essential to maintaining product standards for global markets.

General and administrative costs for global operations

General and administrative (G&A) expenses, which cover corporate overhead, executive salaries, and non-sales/non-production staff across global operations, are aggregated within the Operating Expenses. The broader category of Selling, General and Administrative (SG&A) expenses is a tracked metric, but the precise split between Selling and G&A for 2025 is not itemized in the available data. You can see the total Operating Expenses figure, which encompasses G&A, is substantial:

• Total Operating Expenses for FY2024: $63.34M.
• The company's total asset base was $186.73M as of September 30, 2024.
• The total number of full-time employees is reported as 67.

The cost structure is heavily weighted toward the cost of goods sold, followed closely by the operating costs associated with scaling the U.S. distribution network. Finance: draft 13-week cash view by Friday.

Farmmi, Inc. (FAMI) - Canvas Business Model: Revenue Streams

You're looking at the revenue side of Farmmi, Inc. (FAMI) as of late 2025, and it's clear the company is actively trying to diversify beyond its traditional agricultural base. Honestly, the numbers show a company in transition, leaning on established sales while chasing new, potentially high-impact logistics contracts.

Sales of edible fungi and agricultural products remain the core historical foundation. For the Trailing Twelve Months (TTM) ending March 31, 2025, the reported revenue from these sales was $43.83 million. This figure reflects the sales of their key products, which include Shiitake mushrooms, Mu Er mushrooms, and other edible fungi, alongside other agricultural products. Keep in mind, this TTM number shows a significant year-over-year decrease of 49.19% compared to the previous period, which you'll see reflected in the overall financial picture.

The big near-term story here is the push into revenue from new warehousing and logistics services in the U.S. This isn't just talk; Farmmi USA launched a trial operation for its warehousing logistics base in California in August 2024. Furthermore, they expanded this footprint to the East Coast, signing a lease for a new warehouse in Somerset, New Jersey, announced in March 2025. This expansion is defintely a strategic pivot to capture value in the North American supply chain.

A major driver for this new segment is the agreement with Mazon Technology LLC. This strategic cooperation, announced in October 2024, is aimed at bolstering Farmmi USA's warehousing and logistics operations, specifically focusing on 'one-piece delivery' services for e-commerce products. The potential here is substantial: the partnership could generate $10 million in annual orders for Farmmi USA. That's a significant potential addition to the top line, assuming full realization.

Finally, the business model still includes the trading of agricultural commodities like cotton and corn. While this activity is part of Farmmi, Inc.'s established business profile, the financial reports don't typically break out the specific revenue contribution from commodity trading versus their core mushroom sales. It's an existing, albeit less detailed, revenue stream.

Here's a quick look at how these revenue components stack up in terms of reported or potential scale:

To be fair, you need to see the logistics revenue as a growth lever, not a current replacement for the declining core business. The company is banking on these new services to reverse the negative revenue momentum. The services Farmmi USA provides through its logistics base include:

• One-piece delivery for e-commerce
• Shipping container warehousing
• Customs clearance agency services

Finance: draft 13-week cash view by Friday.