DIGITAL TECHNOLOGIES IN AGRICULTURE AND RURAL AREAS - BRIEFING PAPER - FAO
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DIGITAL TECHNOLOGIES IN AGRICULTURE AND RURAL AREAS BRIEFING PAPER by Nikola M. Trendov, Samuel Varas, and Meng Zeng Food and Agriculture Organization of the United Nations Rome, 2019
CONTENTS 1 INTRODUCTION AND BACKGROUND. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.1 The digital agriculture revolution. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.2 Digital divide. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1.3 Conditions for a digital transformation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 BASIC CONDITIONS FOR DIGITAL TRANSFORMATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2.1 IT infrastructure and networks in rural areas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2.1.1 Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2.2 Educational attainment, digital literacy and employment in rural areas . . . . . . . . . . . . . . . . 4 2.2.1 Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.3 Policies and programmes for enabling digital agriculture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2.3.1 Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 3 ENABLERS FOR DIGITAL AGRICULTURE TRANSFORMATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 3.1 Use of digital technologies among rural populations and farmers. . . . . . . . . . . . . . . . . . . . . . 7 3.2 Digital skills among rural populations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3.3 Digital agripreneurial and innovation culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 3.3.1 Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 4 EXAMPLES AND IMPACT OF THE USE OF DIGITAL TECHNOLOGIES IN AGRIFOOD SYSTEMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 5 CONCLUSIONS AND FUTURE WORK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 5.1 Challenges to connect marginalized and remote communities. . . . . . . . . . . . . . . . . . . . . . . . 14 5.2 Drivers and demands for unlocking digital agriculture transformation. . . . . . . . . . . . . . . . . 15 5.3 Future work. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 6 REFERENCES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 iii
Figures FIGURE 1 Subscriber penetration and smartphone adoption (%) by region, 2018. . . . . . . . . . . . . . . . . . . . . . . . 4 FIGURE 2. Higher education attendance by degree of urbanization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 FIGURE 3. Governmental services provided via email, Short Message Service (SMS) or Really Simple Syndication (RSS) (% of countries in each region), 2018. . . . . . . . . . . . . . . . . . . . . . 6 FIGURE 4. Average proportion of the population in rural and urban areas with a specific digital skill, 2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 FIGURE 5. Social media preferences among agriculture and food stakeholders (%), 2016. . . . . . . . . . . . . . . 15 iv
1 INTRODUCTION AND BACKGROUND The agriculture and food sector is facing multiple finance and training. Digital technologies are creating challenges. With the global population projected to grow new opportunities to integrate smallholders in a digitally- from 7.6 billion in 2018 (UN DESA, 2019) to over 9.6 driven agrifood system (USAID, 2018). billion in 2050 there will be a significant increase in the demand for food (UN DESA, 2017). At the same time, The next period of growth in mobile connections is the availability of natural resources such as fresh water expected to come mainly from rural communities. Already, and productive arable land is becoming increasingly 70% of the poorest 20% in developing countries have constrained. access to mobile phones (World Bank, 2016). Additionally, more than 40% of the global population has internet access Production is not the only concern; although agricultural and there are major initiatives to connect those in rural output is currently enough to feed the world, 821 million areas of developing countries (World Bank, 2016). people still suffer from hunger (FAO, 2018). Processes such as the rapid rate of urbanization are also having However, there are challenges to consider in the important implications for patterns of food production ‘digitalization’ of agriculture and food value chain. The and consumption. transformation must be done carefully in order to avoid an increase of a ‘digital divide’ between economies The agrifood sector remains critical for livelihoods and sectors and between those with differing abilities and employment. There are more than 570 million to adopt new technologies (OECD, nd). In emerging smallholder farms worldwide (Lowder et al., 2016) and economies and rural areas, weak technological agriculture and food production accounts for 28% of the infrastructure, high costs of technology, low levels of entire global workforce (ILOSTAT, 2019). e-literacy and digital skills, weak regulatory framework and limited access to services mean these areas risk being Achieving the UN Sustainable Development Goal of left behind in the digitalization process. a ‘world with zero hunger’ by 2030 will require more productive, efficient, sustainable, inclusive, transparent Yet, developing economies may also have the advantage and resilient food systems (FAO, 2017b p. 140). This will of being able to ‘leapfrog’ older agrifood technologies and require an urgent transformation of the current agrifood models in favour of a digital agriculture revolution. This system. new scenario will require radical rethinking by policy makers, international organizations, business leaders and Digital innovations and technologies may be part of the individuals: ‘business as usual’ is not the solution. solution. The so-called ‘Fourth Industrial Revolution’ (Industry 4.0)1 is seeing several sectors rapidly transformed by ‘disruptive’ digital technologies such as 1.1 The digital agriculture Blockchain, Internet of Things, Artificial Intelligence and revolution Immerse Reality. In the agriculture and food sector, the spread of mobile technologies, remote-sensing services Historically, agriculture has undergone a series of and distributed computing are already improving revolutions that have driven efficiency, yield and smallholders’ access to information, inputs, market, profitability to previously unattainable levels. Market forecasts for the next decade suggest a ‘digital agricultural 1 The term Industry 4.0 originated in Germany where it was applied revolution’ will be the newest shift which could help to rapid transformations in the design, manufacture, operation and service of manufacturing systems and products (European ensure agriculture meets the needs of the global Parliament, 2015a) population into the future. 1
DIGITAL TECHNOLOGIES IN AGRICULTURE AND RURAL AREAS: BRIEFING PAPER Digitalization will change every part of the agrifood between rural and urban areas, gender, youth population. chain. Management of resources throughout the system Urban areas often have better developed ‘digital can become highly optimized, individualized, intelligent ecosystems’ (resources, skills, networks) compared with and anticipatory. It will function in real time in a rural areas. Combined with global trends of urbanization hyper-connected way, driven by data. Value chains will and middle and rich classes settling in cities, there is become traceable and coordinated at the most detailed potential for digitalization to exacerbate existing rural- level whilst different fields, crops and animals can be urban disparities (UN DESA, 2018a) and populations to accurately managed to their own optimal prescriptions. fall behind in the process of a digital transformation. FAO Digital agriculture will create systems that are highly is committed to assist governments and partners bridging productive, anticipatory and adaptable to changes such as such multidisciplinary digital divides to ensure that those caused by climate change. This, in turn, could lead everyone benefits from the emerging digital society. to greater food security, profitability and sustainability. In the context of the Sustainable Development Goals, 1.3 Conditions for a digital digital agriculture has the potential to deliver economic transformation benefits through increased agricultural productivity, cost efficiency and market opportunities, social and cultural There are several conditions that will shape the digital benefits through increased communication and inclusivity transformation of agriculture in different contexts: and environmental benefits through optimized resource use as well as adaptation to climate change. zz Basic conditions are the minimum conditions required to use technology and include: availability, The potential benefits of digitalizing the agrifood sector connectivity, affordability, ICT in education and are convincing but it will require major transformations supportive policies and programmes (e-government) of farming systems, rural economies, communities and for digital strategies; natural resource management. This will be a challenge and requires a systematic and holistic approach to zz Enabling conditions (‘enablers’) are factors that achieve the full potential benefits. further facilitate the adoption of technologies: use of internet, mobile phones and social media, digital skills and support for agripreneurial and innovation 1.2 Digital divide culture (talent development, sprint programmes including hackathons, incubators and accelerator Digitalization of the agrifood system involves the risk programmes). that the potential benefits will be unequally distributed 2
2 BASIC CONDITIONS FOR DIGITAL TRANSFORMATION There are some basic conditions that must exist for 2.1.1 CHALLENGES the use of digital technologies and therefore for digital Globally, mobile cellular subscriptions have been transformation of the agriculture and food sector. growing over recent years. Between 2013 and 2018 there These include: infrastructure and connectivity (mobile were 1 billion new mobile subscribers and 67% of the subscriptions, network coverage, internet access, and world population is now subscribed to mobile services electricity supply), affordability, educational attainment (GSMA, 2018c; 2019a). Much of this recent growth (literacy, ICT education) and institutional support. has been driven by countries in Africa and Asia and the Pacific. Access to computers and internet has also Access to digital technology can offer significant been increasing in LDCs and developing economies. advantages to smallholder farmers and other rural Yet 3.8 billion people still remain offline and are business by providing links to suppliers and information disproportionately located in rural and remote areas and allowing users to tap into workforce talent, build (GSMA, 2018c). strategic partnership, access support services such as training, finance and legal services and, critically, reach One challenge is that network coverage in rural areas markets and customers. remains limited. Despite 4G becoming the most common mobile connection globally and 90% of being able to However, the introduction of digital technologies in access the internet through 3G or higher quality network, rural areas can be a challenge. Around the world, only around a third of rural populations in LDCs receive rural populations are declining and education and coverage by 3G networks (GSMA, 2019a). employment opportunities are limited. There is often a lack of infrastructure, including basic IT infrastructure, Smartphones have become a major way for consumers to particularly in very remote rural communities and those access internet. Falling handset prices and innovations with large indigenous populations. The costs associated such as pay-as-you-go plans mean that mobile devices with IT infrastructure present a major challenge in rural are increasingly affordable and accessible, including for areas where rates of poverty are often high, especially rural communities (Hahn and Kibora, 2008). Among in developing countries and least-developed countries the world’s poorest households, 7 out of 10 have a (LDCs). mobile phone and more households in LDCs (ITU, 2018). However, these are not always web-enabled smartphones. 2.1 IT infrastructure and networks in rural areas Although the growth of smartphone ownership and use of mobile broadband has been faster in developing In the era of digitalization, Information and countries than developed countries in recent years, there Communication Technologies (ICT) such as mobile are still twice as many mobile-broadband subscriptions phones and computers have revolutionized how people per 100 inhabitants in developed countries as in access knowledge and information, do business and use developing countries (Figure 1). Affordability is the main services. Yet there remain significant digital divides both barrier to smartphone ownership in LDCs where a basic within and between countries (European Parliament, mobile broadband plan still corresponds to over 60% of 2015b). gross national income per capita on average (ITU, 2017). 3
DIGITAL TECHNOLOGIES IN AGRICULTURE AND RURAL AREAS: BRIEFING PAPER Figure 1 Subscriber penetration and smartphone to invest in building new digital skills rather than hiring adoption (%) by region, 2018. already skilled labour. Source: GSMA, 2019a. A lack of digital tools, such as tablets and laptops, in Subscriber penetration % Smart phone adoption % schools is identified by teachers as a major obstacle to 67 60 IT education (European Commission, 2019). There is World World also a lack of relevant skills among teachers. This tends 66 54 to be particularly true in rural areas. For schools in Asia-Pacific Asia-Pacific 80 53 urban areas, access to the internet and online learning CIS CIS resources is usually commonplace. However, rural and 85 72 remote schools often lack access to internet. This pattern Europe Europe is true even in developed countries, but is particularly 67 65 Latin America Latin America pronounced in developing countries and LDCs. 64 52 MENA MENA Over the next 15 years, around 1.6 billion people in 83 80 developing countries and LDCs will reach working North-America North-America age. Creating the necessary jobs while sustaining 45 36 Sub-Saharan Africa Sub-Saharan Africa existing employment will be a significant challenge, especially for the agrifood sector (World Bank, 2017). Rural unemployment is particularly high and disproportionately affects youth and women. 2.2 Educational attainment, The agricultural sector remains a major source of digital literacy and livelihoods in rural areas. Digitalization of the sector will employment in rural areas significantly alter the nature of work and the demand for labour and skills. Increasingly, digital literacy will be a requirement in agrifood jobs and suitable education and The use of digital technologies requires basic literacy training will be required. and numeracy as well as special technical knowledge and skills. People without such competencies can end up marginalized in increasingly digitally driven societies. 2.3 Policies and programmes for enabling digital 2.2.1 CHALLENGES In rural areas, a lack of infrastructure and resources often agriculture limits the quality of education. This leads to less effective learning, lower attendance rates and early school leaving. In many countries, government policies and frameworks Additionally, in many rural areas, youth are often are one of the driving forces behind digitalization. required to work which leaves little time for school. These create an enabling environment for competitive digital markets and e-services. There is also a trend Rates of educational attainment are therefore often towards governments themselves deploying e-services lower in rural areas than urban areas, especially in – ‘e-government’ – especially in health, education, LDCs (see Figure 2). Despite the fact that 60% of the environment, and employment. countries for which data are available have eradicated or nearly eradicated youth illiteracy, literacy remains low However, designing and managing a digital government in many rural areas of LDCs and particularly among program requires a high level of administrative capacity women (UNESCO, 2017). A lack of basic literacy and and as a result some countries have had limited success numeracy presents a significant barrier to using digital (Fakhoury, 2018). Developing countries are often the technologies. ones with the least capacity to manage the process. Success also varies by sector and, in many countries, the In addition, ‘digital literacy’ is critical for using digital agricultural sector – a major employer in rural areas – technologies. Unlike in many developed countries, lags behind. where students regularly use advanced technologies and digital skills in their education and day-to-day lives, ICT There is a lack of published research on government knowledge and skills lag behind in LDCs. In many LDCs digitalization policies, but information can be inferred and developing countries, basic computer courses are not from proxies including the extent to which governments integrated in primary or secondary education due to a provide e-services and their policies regarding lack of interest from governments and the private sector connectivity and data. 4
CHAPTER 2 BASIC CONDITIONS FOR DIGITAL TRANSFORMATION Figure 2. Higher education attendance by degree of urbanization. Source: UNESCO Institute for Statistics, 2018. Cyprus Dominican Republic Greece Azerbaijan Ireland Indonesia Bulgaria Myanmar Belgium Namibia Croatia Brazil Serbia Honduras France Belize Romania Nicaragua Lithuania Ethiopia Austria Syrian Arab Republic Spain Pakistan Italy Kenya Latvia Guatemala United Kingdom Iraq Portugal Afghanistan Slovak Republic Lesotho Estonia Nigeria Poland Uganda Hungary Cameroon Sweden Togo Denmark Uzbekistan Nepal Yemen North Macedonia Bhutan Georgia Suriname Moldova Timor-Leste Montenegro Djibouti Ukraine Guinea Czech Republic Gabon Mongolia Guyana Belarus Comoros Bosnia and Herzegovina Zimbabwe Chile Morocco Luxembourg Congo, Dem. Rep. Armenia Congo, Rep. Finland Eswatini Germany Gambia Kyrgyz Republic Mauritania Viet Nam Madagascar Panama Benin Kazakhstan Haiti Bolivia Rwanda Jordan Mali Colombia Malawi Barbados Sierra Leone Albania Bangladesh Peru Ghana Norway Zambia China Cote d’Ivoire Tajikistan Liberia Switzerland St.Lucia Tunisia Maldives Thailand South Sudan Costa Rica Burkina Faso Iceland India Egypt Sao Tome and Principe Philippines Burundi Mexico Niger Sudan Chad Cambodia Somalia Lao PDR Senegal Uruguay Guinea-Bissau El Salvador Tanzania Jamaica Central African Republic 0 20 40 60 80 100 0 20 40 60 80 100 Rural Urban 5
DIGITAL TECHNOLOGIES IN AGRICULTURE AND RURAL AREAS: BRIEFING PAPER 2.3.1 CHALLENGES countries provide e-Agriculture services. Those countries Compared with just a decade ago, governments have that do prioritize the use of ICT in agriculture also made significant progress in expanding ICT access generally have a better business environment and policy and digital networks. Some developed countries are and regulation framework for agribusiness. It is possible reaching near universal access through fixed and mobile this is linked to the use of ICT as it does not seem to connections whilst progress is being made in developing be related to levels of education, literacy or agricultural countries through the expansion of mobile services. contribution to GDP in a country. Many governments have begun using e-services in So far, developed countries are leading on implementing sectors such as health and education (Figure 3). However, national level strategies on digital agriculture. In some in LDCs and developing countries, many people cannot cases, this is by integrating the agrifood sector as a key use e-services because they lack access to ICT due to focus within existing national digital strategies that aim low incomes, limited user capabilities and a lack of to transform wider industry and society. In developing infrastructure (McKinsey & Co, 2014). As the pace of countries, most of the e-Agriculture services are technological innovation intensifies, this is likely to limit embedded within e-government or ICT strategies where further development of e-government in these countries. the main objective is to provide basic e-Agriculture services such as early alert notifications and general The type of licensing framework and efficiency of information. spectrum allocation2 that governments use can be important in encouraging the private sector to invest The use of digital technologies will create the need for in mobile networks in remote areas. The experience policy and regulation in relation to the data that will be of EU countries suggests that greater liberalization of generated. A lack of standardization in the format and the telecommunications sector supports widespread ownership of data could create disparities, particularly connectivity. Efficient spectrum management can in a scenario where large international companies are also favour mobile network operators through lower pursuing digital agriculture for agribusiness whilst deployment costs which will bring to end user in terms smallholders and local agripreneurs are simultaneously of greater access to ICT services. using technologies to tackle societal challenges in rural and farming areas. Development of government e-services has often been particularly slow in the agricultural sector and few Figure 3. Governmental services provided via email, Short Message Service (SMS) or Really Simple Syndication (RSS) (% of countries in each region), 2018. Source: UN DESA, 2018 100 90 80 70 60 50 40 30 20 10 0 Oceania Africa Americas Asia Europe Education Health Labour Environment Social protection 2 Spectrum allocation refers to the radio frequencies allocated to the mobile industry and other sectors for communication over the airwaves (GSMA, 2019b) 6
3 ENABLERS FOR DIGITAL AGRICULTURE TRANSFORMATION In addition to basic conditions, there are important However, the most critical component for unlocking the enablers that facilitate digital agricultural transformation. possibilities of digital technologies use is access to the Three key enablers are: the use of internet and mobile internet. and social networks among farmers and agricultural extension officers, digital skills among the rural Although almost half of the world’s population is now population and a culture which encourages digital using the internet, this is disproportionately in developed agripreneurship and innovation. nations. In LDCs, only one out of seven people uses the internet (ITU, 2016) and there are apparent disparities With the rise of high speed internet connections and between rural and urban areas (although the patterns web-enabled smartphones, mobile apps, social media, vary between countries). VoIP3 and digital engagement platforms have significant potential to improve access to information and services Education and income levels are strong determinants for those in rural areas. However, many small-scale of how (and if) people use the internet. Those with farmers in developing countries remain isolated from higher levels of education tend to use more advanced digital technologies and lack the skills to use them. services, such as e-commerce and online financial and governmental services. Users with lower education Establishing a ‘digital agriculture ecosystem’ requires levels tend to use the internet predominantly for an enabling environment for innovation by farmers and communication and entertainment. agripreneurs. Already, there is increasing funding and collaboration on digital agriculture projects and start- In rural areas, where education and literacy rates are ups are beginning to attract international investors and generally lower, mobile phones tend to be used mainly media attention. Youth have a particular role to play in for communication and social media. This presents this process. They often have the advantage of digital a challenge for the introduction of digital agriculture literacy and the capacity for innovative solutions. When applications which require more advanced digital skills. digital topics are integrated in educational programs they can also gain an understanding of the uses of digital tools Low overall smartphone ownership in rural areas and the skills to create them. combined with the high cost of internet and limited network coverage also present challenges to the use of mobile agricultural applications and limit the scope to 3.1 Use of digital technologies use social networks like Facebook to facilitate agricultural among rural populations support and information flows between farmers. Such and farmers availability of information could support farmers to make better farming decisions which could contribute to increasing yields, reduced environmental impacts and Literacy and digital skills and the availability of improved livelihoods. technologies all affect the use of digital innovations. The diversity of available technologies and the lack of 3 Voice over Internet Platforms or phone services over the internet standardisation and compatibility between them, for 7
DIGITAL TECHNOLOGIES IN AGRICULTURE AND RURAL AREAS: BRIEFING PAPER example for the exchange of data, also create a barrier to workers differently due to differences in digital skills and use by farmers. The adaptability of technologies is limited technology use. Rural areas in particular lag behind in and it is often not possible to integrate machinery from the process of gaining digital skills (Figure 4). There is a different brands so farmers must decide which brand to need to develop a model of digital skills training aimed invest in. There is a lack of independent advisory services at farmers so they can learn to assess and implement the to support farmers in making these decisions. best practices and technologies for their farm business. 3.2 Digital skills among rural 3.3 Digital agripreneurial and populations innovation culture Digitalization creates demand for digital skills and for Digital entrepreneurship involves the transformation of people who are competent in using digital devices, existing businesses through novel digital technologies understanding outputs and developing programmes and and the creation of new innovative enterprises applications. This requires not only basic literacy and characterized by: the use of digital technologies numeracy but also data handling and communication to improve business operations, the invention of skills. In populations where such skills are lacking, new (digital) business models and engaging with education must improve quickly; ICT is developing at an customers and stakeholders through new (digital) incredibly rapid pace and rates of learning must keep up channels (European Commission, 2013). Globally, (UNDP, 2015). there are an increasing number of initiatives to foster digital entrepreneurial activity related to the creation, Alongside investment in technology, there is therefore development and scaling-up of ‘digital start-ups’, a growing need for investment in the development of including in the agriculture and food sector. multidisciplinary digital skills and knowledge. This is true in both developed and developing countries. Modern day farmers may be particularly suited to Countries that have ICT education programmes, can entrepreneurial activities. These days, farmers often afford digital tools and have good access to the internet design business plans, scout for funding, make use of will have better digital skills. farming enterprise ‘incubators’ and attend scientific conferences. Youth farmers in particular are also more In the agrifood sector, the digital transformation will likely to take risks in their farm management. In Italy, for change the structure of the labour market and the example, over 12 000 agricultural start-ups were created in nature of work. It will redefine the role of farmers and 2013 by men and women aged 25 to 30 (Coldiretti, 2018). agripreneurs and alter the skill set required in the agrifood sector. It may also transform how and where Developed countries are so far the leaders in establishing people work and is likely to affect female and male an entrepreneurial culture, but less developed countries Figure 4. Average proportion of the population in rural and urban areas with a specific digital skill, 2017. Source: ITU, 2018. 60% 50% 40% 30% 20% 10% 0% Copying or Sending Transferring Using copy Finding, Using basic Creating Connecting Writing a moving a file emails with files between and paste downloading, arithmetic electronic and installing computer or folder attached files a computer tools installing and formulas in a presentations new devices program and other configuring spreadsheet devices software Urban Rural 8
CHAPTER 3 ENABLERS FOR DIGITAL AGRICULTURE TRANSFORMATION such as Rwanda, Zambia, Turkey and Armenia are also need to adopt a three-pronged approach to stimulating rapidly pursuing these opportunities in the digital age. research and development (R&D) and innovation education: investing in R&D, amplifying indigenous 3.3.1 CHALLENGES R&D and working with a broad coalition of partners to Entrepreneurship presents a promising option for redesign education to emphasize e-learning tools, do-it- development and business in rural communities. yourself hands-on learning, rewards for experimentation, critical thinking, and digital and financial literacy and With its large farming sector and consumer market, software skills. Africa is anticipated to be a major testing ground for digital solutions by agritech groups (Figure 5). At the Youth agripreneurs have a key role to play in the beginning of 2018, there were 82 agritech start-ups digitalization of the agricultural sector. They have unique operating across Africa with over half launching in the insights from listening to the experiences of their parents previous two years (Disrupt Africa, 2018). and grandparents and observing missed opportunities. Start-ups from smallholder farming communities often However, despite the rapid growth of digital agricultural draw inspiration from, and are aimed at helping, the technologies, most ICT-enabled solutions have yet to be farming communities where the creators grew up. Youth demonstrated at scale. Companies – especially SMEs and will need sprint programmes and financial support to small start-ups – often struggle to move from the stage penetrate the agripreneur market. Such programmes of application development to fully realized businesses. attract investment and create opportunities for investors One challenge is that there is a lack of guidance for and start-ups to form collaborations. entrepreneurs on scaling strategies in under-served markets. The existence of an entrepreneurial culture is often not related to the GDP or location of a country. The To encourage digital agripreneurship, companies need to accessibility of e-commerce and digital platforms is create pools of digitally-skilled employees. This involves making it increasingly easy for it to develop anywhere. finding potential employees with relevant skills and Nevertheless, creating a sustainable digital agripreneurial identifying how they can be attracted and retained, as culture is a long-term political and practical process, well as recognizing talent that can be nurtured within starting with appropriate education in schools. It requires the existing employee base and investing in developing an enabling environment which allows risk-taking, digital skills in existing roles. trust-based relationships between stakeholders, financial opportunities, professional services, a sustainable digital Education is the most critical factor to accelerating ecosystem4, the availability of appropriate skills and an innovation and digital transformation. Governments attitude of sharing or ‘open innovation’. 4 A digital ecosystem is an interdependent collection of enterprises, people and/or things that share standardised digital platforms 9
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4 EXAMPLES AND IMPACT OF THE USE OF DIGITAL TECHNOLOGIES IN AGRIFOOD SYSTEMS Digital transformation has the potential to deliver zz Agricultural robots (‘agrobots’) are seen as a key significant economic, social and environmental benefits. trend that will deeply influence agriculture in the The following examples demonstrate how digital future. Field agrobots are already being deployed technologies can be applied to improve the efficiency and to help farmers measure, map and optimize water functioning of agrifood systems: and irrigation use. Fleets of small lightweight robots are now seen as a replacement for traditional high zz The use of mobile applications providing price mass tractors, allowing a gradual reduction of information to farmers can reduce market distortions compaction, re-aeration of the soil and benefits to and help farmers to plan production processes. For soil function; example, the M-Farm application in Kenya led to farmers changing their cropping patterns and some reported receiving higher prices at market as a result DINO AGROBOT FOR AGRICULTURE (Baumüller, 2015); AND VITICULTURE The Naïo Technologies team developed EMA-I APP agricultural robot to improve working conditions ANIMAL HEALTH SYSTEM SUPPORT and profitability for farmers. BY FAO To help farmers tackle the increasing regulations on phytosanitary products, the growing concerns EMA-i is an early warning app developed by FAO with pesticides, and the lack of workers in the to facilitate quality and real time livestock disease agricultural sector, Dino provides a new and reporting captured by animal health workers in effective solution. The Dino weeding robot allows the field. EMA-i is integrated in the FAO’s Global vegetable farmers to manage crop weeding with Animal Disease Information System (EMPRES-i) a high level of precision, while helping them save where data are safely stored and used by countries. time all through the season. EMA-i is easily adaptable to countries existing livestock disease reporting system. By supporting Dino is highly effective to weed vegetables that surveillance and real time reporting capacities are grown in the field, both in raised vegetable at country level and improving communication beds and in rows, such as lettuce, carrots, onions, between stakeholders, EMA-i contributes to etc. enhance early warning and response to animal https://www.naio-technologies.com/en/ disease occurrence with high impact to food agricultural-equipment/large-scale-vegetable- security and livelihood. EMA-i is currently used weeding-robot/ in six countries in Africa (Cote d’Ivoire, Ghana, Guinea, Lesotho, Tanzania and Zimbabwe). 11
DIGITAL TECHNOLOGIES IN AGRICULTURE AND RURAL AREAS: BRIEFING PAPER zz Technologies can also support farmers to anticipate zz Over the last few years, the growth in Artificial and respond to pest attacks, crop failures and climatic Intelligence technology (AI) has strengthened agro- changes through timely weather-based agro-advisory based businesses to run more efficiently. Companies messages; that use AI helps farmers to scan their fields and monitor every stage of the production cycle. AI zz Precision Agriculture (PA) is an example of an technology is transforming the agricultural sector, application of the Internet of Things (IoT) in as farmers can depend on the data that satellite agriculture. The use of Guidance Systems during or UAV record to determine the state of the farm planting and fertilizer application can lead to cost rather than walking all the distance. AI can improve savings in terms of seed, fertilizer and tractor fuel, resource use, support early decision making through and can reduce working hours in the field. Variable predictive models and maintain 24/7 monitoring Rate Technologies (VRT) and drones (UAV) can also systems; reduce water and pesticide use and reduce labour and resource costs; ALIBABA GROUP HOLDING AND JD. zz The importance of ERP software in agriculture COM LAUNCHES SMART BRAIN FOR is high, as it has the potential to help streamline PIG FARMS every process, from procurement to production to and distribution. ERP can enable a farm (or related business) to respond more organically Alibaba’s “ET Agricultural Brain” is an AI to environmental challenges, adjust systems programme that uses facial, temperature and accordingly, and grow into a more cost-efficient voice recognition to assess each pig’s health. The businesses; technology can tell whether a sow is pregnant by following its sleeping and standing positions as well as eating habits, and has been already adopted by a number of leading pig farms in MYCROP China. With AI they are able to detect sick hogs COMPLETE FARM AND FARMER and minimize accidents, such as protecting MANAGEMENT SYSTEM piglets from accidents through the introduction of voice recognition technology. Multiple meters MyCrop a technology-enabled initiative for are installed to collect data to optimize the farmers, which empowers them through environment for the herd to grow, as well as delivering information, expertise and resources, reducing human errors in the farming process. to increase productivity and profitability, hence Using AI, pig farms will reduce pig farmers’ improving standard of living. It is a collaborative labour costs in the range of 30 percent to 50 platform that strives to combine cutting edge percent, and lower the need for feed, as well as technology (Big Data, machine learning, shorten hogs’ lifespan by five to eight days by smartphones/tablets, etc.), innovative business optimizing animals’ growth conditions, based model (agriculture platform as a service), and on the firm’s estimate. China could save CNY50 focused human efforts (agriculture insights, billion (US$7.5 billion) if it applied the system to products, and services) to serve smallholder all pig farms nationwide. farmers. https://www.yicaiglobal.com/news/chinese- MyCrop facilitates farmers in taking and aging-farms-step-into-ai-era-with-facial- executing optimum decisions by providing geo- recognition-for-pigs- mapping, crop planning, individual farm plans and farm automation customized for each farmer based on weather, soil, pest and crop data on an almost real-time basis. zz Technologies such as Blockchain have also been MyCrop is a sustainable data-driven, scalable, shown to deliver benefits. For example, Blockchain intelligent, self-learning, real-time collaborative has been successfully used to detect poor quality Agrifood system, which serves as a farm as well as food in food chains allowing early and effective farmer management solution, predictive analytics responses. It can also provide consumers with and monitoring tool, decision support system and information on the origin of their food, generating a agriculture (buy/sales side) e-commerce platform. competitive advantage for those who use it. http://www.mycrop.tech 12
CHAPTER 4 EXAMPLES AND IMPACT OF THE USE OF DIGITAL TECHNOLOGIES IN AGRIFOOD SYSTEMS These technologies often require significant financial WALMART TRACKS ITS LETTUCE resources, large farm sizes and close integration with FROM FARM TO BLOCKCHAIN other technologies and agrifood chain processes. It is therefore a greater challenge for small-scale farmers After a two-year pilot project, the retailer is to adopt such technologies, whereas as larger farmers using blockchain to keep track of every bag of and agribusiness companies will be more easily able to spinach and head of lettuce. The giant retailer implement them. begin requiring lettuce and spinach suppliers to contribute to a blockchain database that can rapidly pinpoint contamination. More than 100 farms that supply Walmart with leafy green vegetables will be required to input detailed information about their food into a blockchain database developed by IBM for Walmart and several other retailers exploring similar moves. For Walmart, the initiative fits squarely into two key strategies: bolstering its digital savvy and emphasizing the quality of its fresh food to customers. The blockchain could also save Walmart money. When another food-borne illness hits — like the E. coli outbreak affecting romaine — the retailer would only have to discard the food that was actually at risk. https://www.nytimes.com/2018/09/24/business/ walmart-blockchain-lettuce.html 13
5 CONCLUSIONS AND FUTURE WORK The digitalization of agriculture will cause a significant areas. There will need to be work to address this disparity shift in farming and food production over the coming and to facilitate smartphone ownership and use in areas years. Potential environmental, economic and social where it is currently lacking. benefits are significant, but there are also associated challenges. Disparities in access to digital technologies Both literacy and education levels also remain particularly and services mean there is a risk of a digital divide. low for rural populations in developing countries and Smallholder famers and others in rural areas are LDCs which presents a barrier to the use of digital particularly at risk of being left behind, not only in terms technologies. Youth unemployment rates are often higher of e-literacy and access to digital resources but also in than the country average and this is especially the case terms of productivity and aspects of economic and social in rural areas. Increasingly, employers want employees integration. who are adept at using technology. A lack of e-literacy and digital skills in rural areas means these populations Simply introducing technologies is not enough to will fall behind in the modern labour market. There is a generate results. Social, economic and policy systems need for school curricula to incorporate digital subjects, will need to provide the basic conditions and enablers for improved knowledge and skills among teachers for digital transformation. The “Law of Disruption” and for increased availability of digital technologies in (Downes, 2009) states that technology changes classrooms. exponentially, but economic and social systems change progressively and have trouble keeping up. Work is To unlock the full potential of digital agriculture especially needed to ensure the necessary conditions for transformation, governments need to create an enabling digital transformation are created in rural areas. regulatory environment. Designing and managing digital government programmes requires a high level of administrative capacity which is beyond the capabilities 5.1 Challenges to connect of some countries, particularly LDCs and developing marginalized and remote countries. Addressing the digital divide must be made communities a policy priority and governments should make the socioeconomic case for digitalization of smallholder A well-developed digital infrastructure, especially in farming both to the farmers, and to potential private rural areas, is a precondition for digital agriculture sector investors and start-up businesses. There will need and food systems. Although advances in technology to be significant capacity building among governments in and regulatory reform have improved access to ICT developing countries and LDCs to facilitate this change for people around the world, there still exists a digital in policy and regulation. divide. Just as a certain technology (e.g. dial-up Internet) becomes available across income levels, a new technology There is increased interest in data-enabled farming (e.g. broadband) appears, leaving users in developing and related services and many new entrants from the countries ‘playing catch up’. technology industry and start-ups. Vast data collection will drive the use of machine learning and AI and Although mobile-cellar subscriptions in the last five new models will need to be developed to make the years were driven by countries in Africa and Asia and data useful. So far, the information gathered is often the Pacific, many people still do not own or use a mobile insufficient to inform the comprehensive solutions and phone and the distribution of ownership is unequal. partnerships needed to transform smallholder farming Access to web-enabled smartphones and fast 3G or 4G into viable, sustainable digital businesses. There also internet connections remains particularly limited in rural need to be decisions about the ownership and use of data; 14
CHAPTER 5 CONCLUSIONS AND FUTURE WORK manufacturers collect data from their devices and have Additionally, not all farmers are quick to adopt ICT. Many the opportunity to exploit them, but farmers are often lack the necessary knowledge to request or use services, reluctant to share their data without receiving something especially as ICT applications in the agrifood sector in return. are relatively new and many e-services are still being developed. It is critical that technologies are properly Strategies for digital agricultural transformation in targeted; if they do not provide the information that developing countries must combine IT infrastructure farmers need, they will not be adopted. with social, organisational and policy change. Digital skills and e-literacy remain a significant constraint to the use of new technologies and are 5.2 Drivers and demands for particularly lacking in rural areas, especially in unlocking digital developing countries. The diversity of available digital agriculture transformation technologies and a lack of standardisation also present a barrier to adoption. The choice of which technology to use is complex and there is a lack of advisory services Access to the internet remains the most critical to support farmers in these decisions. Education and component for unlocking the possibilities of new supporting services must be improved to support the technologies. Across the globe, smartphones dominate in adoption of digital technologies. terms of time spent online and could be a game changer in the agrifood sector in LDCs and developing countries. Digital technology is already changing the dynamics of They create opportunities to access information and the agrifood sector but the process has so far not been services through mobile applications, online videos and systematic. Realising the full potential of digital farming social media. Sites like Facebook, Twitter and YouTube will require collaboration of all players in the agricultural present a cost-effective means of communication value chain. There is a need for a clear overview on the with, and among, smallholder farmers and other key part of actors working in agrifood and digital products agricultural stakeholders such as extension officers, – including private sector, governments and other agro-dealers, retailers, agricultural researchers and policy agencies – on how to exploit the opportunities of digital makers (Figure 6). agriculture. Falling handset prices, increasing internet coverage Farmers have a key role to play and digital technologies and the growing youth population create significant provide new opportunities for them to collaborate opportunities for the use of mobile phones in agricultural and innovate. There is also a growing group in the areas. However, internet provision and smartphone farming sector who have university degrees and ownership remain lower in developing countries, and specialisations in science and technology subjects. They particularly in rural areas, and there needs to be more are often skilled in experimentation and innovative research into the use of mobile internet and social media thinking. Youth in the agrifood sector are also often in rural communities. entrepreneurial and willing to take calculated risks to pursue new enterprises. Figure 5. Social media preferences among agriultural stakeholders (%), 2016. Source: Bhattacharjee and Saravanan, 2016. 70 Percentage of respondents 60 50 40 30 20 10 0 Facebook Whatsapp Google+ Wikis Twitter Blogs YouTube Social networks Note: Includes 62 countries. 15
DIGITAL TECHNOLOGIES IN AGRICULTURE AND RURAL AREAS: BRIEFING PAPER There is a need for greater support for agripreneurial A final factor to consider is that digital agricultural activities such as: business courses in agriculture, ICT United Arab Emirates technologies are affected by economies of scale. Adoption curricula in education, increased capacity and support Singapor e Qatar Poland is easier for users who can implement them at large scale. for innovation hubs and incubators, increased availability Kuw ait J apan Bulgaria Small-scale farmers face a disadvantage compared to of venture capital (especially mid-level financing large agribusiness actors. This creates disparity between Belgium Belarus Bahrain needed for scaling) and creation of a more favourable large and small-scale farmers, with a corresponding Romania Spain France business environment. Because the real impact is from inequality between developed and developing countries. Netherlands Denmark Australia the businesses they create, and the amount and kind of Transformative digital innovations and technologies are South Africa Luxembourg United States of America employment that their SMEs or digital farms create. often not designed for the scale at which smallholder United Kingdom T unis ia Sw itzerland Sw eden Slovenia Serbia farmers operate. Saudi Arabia 5.3 Future work Oman Norw ay New Zealand Moldova Malta Some specific priorities for future work are: Lebanon Korea, South J ordan Italy Much work is needed in the area of digitalization in Israel Ireland zz Facilitating the collection of better data about digital Iceland agriculture and rural areas. There are some key factors to Hong Kong Gr eece technologies and digitalisation at the regional and Finland be considered in this work. Dominican Republic Egypt population level, particularly to show differentiated Cyprus Croatia Canada information about urban and rural areas; Austria Firstly, a significant challenge in understanding digital Armenia T urkey T hailand agricultural transformation is a lack of systematic, official Morocco Macedonia China zz Creation of sustainable business models that provide data on the topic. Much of the data – for example on Montenegr o Lithuania Lesotho viable digital solutions for inclusion of small-scale levels of e-literacy – are only available at the country level Albania Yemen Fiji farmers in the digital agriculture transformation with no distinction for urban and rural areas. Meanwhile, Venezuela Ur uguay T onga process; data on networks focus only on coverage and do not T imor -Leste Slovakia Russian Federation provide information about the quality or affordability Portugal Paraguay Panama zz Creation of an index to consider the development of services. There is also a lack of information about Mongolia Mexico Malaysia of digital agriculture in the context of cultural, government support and regulatory frameworks for Latvia J amaica Hungary educational and institutional dimensions of a given digital transformation; so far, this has been interpreted country, both in terms of the availability of basic Guatemala Germany Estonia via proxies including the availability of government conditions and enablers for digitalization and the Ecuador Cz ech Republic Colombia e-services and regulations about connectivity and data potential economic, social and environmental impacts Chile Br az il Bosnia and Herz egovina Belize protection. Argentina Peru of the process. This could involve further development Rw anda Philippines Barbados of a Digital Agriculture Readiness Index, expanding Bangladesh A second consideration is that there are significant Costa R ica Az er baijan on previous work by the FAO Regional Office for Indonesia disparities in the adoption of digital agriculture Vietnam Uz bekistan Europe and Central Asia in 2015. Such an index would Ukraine technologies between developed and developing T ajikistan Sri Lanka help provide context for the development of future Nepal countries and between global companies and those at Myanmar Mauritius digital agriculture strategies for the FAO member Georgia a local, community or family scale. Factors including Br unei Darussalam Bolivia countries, which starts with sensitizing countries to Algeria financial resources and education levels influence Kaz akhstan India the concept of digital agriculture and the importance Kenya the adoption of modern agricultural technologies. Ghana Botswana of digital technologies for the agrifood sector and Libya Small farmers in rural areas are disproportionately Samoa Saint Lucia Nicaragua continues with steps towards the digital agriculture disadvantaged as well as facing problems of limited Bahamas Solomon Islands transformation process. Bhutan access to infrastructure, networks and technology. Cambodia Ethiopia Iraq Vanuatu T rinidad and T obago Laos Pakistan Cameroon El Salvador Madagascar Iran Nigeria Cabo Ver de Honduras Congo Papua New Guinea Kyrgyz stan Haiti Angola Cote d'Ivoir e Gambia Senegal Benin Namibia Gabon Liberia Niger Sudan Guinea Uganda T ogo Mauritania Congo,D emocr atic Republic Z ambia Sierr a Leone Z imbabw e Mozambique Burundi Afghanistan T anz ania Mali Chad Guyana Burkina Faso Malaw i Sw aziland - 20.00 40.00 60.00 80.00 100.00 120.00 16
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