Mobile technology role in driving efficiency to agricultural economies

Mobile Technology Role in Driving Efficiency to Agricultural Economy

By: Heba Assem

March, 2015

Agenda

The major dilemma that agriculture sector faces

How could mobile technology improve farmers lives

Major opportunities with mobile

Challenges facing farmers and governments now

Farmers Policies

Improving the income levels

Policies of food security and

production efficiency

The major dilemma that agriculture sector faces under the situation of recent global food crisis and rising food prices is striking a balance

Environment control

Secure info and demand

Supply chain access

Info access

Mobile technology tests had an active role in developing farmers income as well as improving agricultural process efficiency

In Kenya more than 10 million farmers now use M-PESA and the service is bringing significant benefits to users in rural

communities. A study by the Consultative Group to Assist the Poor found that the income of rural people in certain

locations of Kenya has increased by up to 30% using M-PESA* Using the service to send and receive money quickly is

supporting improved agricultural output.

In Tanzania, a program is trailed working with government to monitor the quality of government services to farmers

using mobile telephony.

In Cambodia, the Philippines and Indonesia, market information accessibility through SMS servicing being tested

in Bangladesh, there is some work to provide storm warnings to fishing communities via mobile phones.

*CGAP ‘Poor People Using Mobile Financial Services: Observations on Customer Usage and Impact from M-PESA’

• Improving access to financial services*

• Provision of

agricultural information*

• Improving data

visibility for supply chain

efficiency

• Enhancing access to markets

So what are the major opportunities for mobile to actually help solve the dilemma?

*Accenture estimated the potential benefits

generated by enabling mobile financial

payments and mobile information provision, each delivering almost

40% of the total estimated increase in agricultural income.

• Tracking and traceability

•Mobile management of supplier/distribution networks: agricultural field agents visiting farms can use mobile phones to record data on farm conditions and expected product also retailers can use mobile phones to keep records of sales of agricultural inputs like seeds, fertilizer and chemicals.

• The agricultural trading:

• The agricultural tendering platform

• The agricultural bartering: a mobile platform where community members can exchange goods and services with each other.

•Mobile information platform and farmers helpline

•Weather forecast

•Water saving

• Crop, seed and fertilizer, marketplace, prices info

•Alerts

• Connect to buyers/investors/insurance firms

•Mobile payment system •Micro-funding system •Micro-insurance system

Improving access to financial services

Provision of agricultural information

Improving data visibility

for supply chain

efficiency*

Enhancing access to markets

Improving the income levels

Improving the income levels

Supply chain access

Info access

Environment control

Secure info and demand

Policies of food security and

production efficiency

In practice how does this work?

To be able to utilize these technologies and move forward, some major challenges must be worked at among governments, NGOs, investors and diffidently MNOs

•mobile service providers, NGOs and governments can work together to promote visibility of mobile payment.

•Governments can help also by looking at regulation creating barrier and work with financial and mobile service providers to enable innovative solutions to be deployed.

Lack of awareness of mobile payment systems

among rural poor

• insurance companies and mobile service providers could identify a group of smallholder farmers to act as ambassadors for the service, and demonstrate the benefits of insurance.

Lack of trust in insurance schemes

•governments can support mobile service providers and encourage companies to provide mobile infrastructure in remote areas.

Lack of sufficient mobile infrastructure to accurately

monitor weather events

•partnerships are needed between helplines and agents including agricultural extension workers with local knowledge. Obtaining locally relevant

agricultural information

•governments, NGOs and private enterprises such as agricultural input distributors and call centers need to work together to find the most cost-effective solutions.

Managing operating costs of staffing helplines with agricultural experts

•partnerships between mobile service providers and government is needed to provide the infrastructure. Providing required

infrastructure