Good morning! Thank you for attending our session, I’m very excited to be here. My name is Amol Jadhav with the GSMA Development Fund. I’m here to tell you a bit about the role mobile technology can play in the agricultural value chain and the different ways they can add value to agribusinesses.
Here’s a very brief agenda of what I’d like to cover with you today. An overview of the GSMA Development Fund (who we are and what we do) – an introduction to AgriVAS solutions, and then we’ll dive into the actual value chain and take a look at how the value chain stakeholders can benefit from AgriVAS services. Lastly, I’ll share with you some specific opportunities which you may be able to act on and take advantage of.
The GSM Association is the trade association of the wireless and mobile phone industry. We represent the interests of the mobile operators world wide.
One of the core components of the GSM Association is the GSMA Development Fund, which, as you can see, sits within the GSM Association.
The purpose of the GSMA Dev Fund is to…We believe that providing tangible, accessible mobile services to people in developing countries is invaluable to society and can help improve people’s lives. The Development Fund combines the industry expertise of the GSMA and its members, with the development skills of international agencies and non-profit organisations to incubate and replicate the deployment of innovative, sustainable and scalable mobile services.
Now, our agricultrue programme works to accelerate the developmentand adoption of agricultural value added services via the mobilechannel (Agri VAS). These services are designed to address the problems of yield, income and the food security crisis that affects the globe’s poorest farmers. We set up the mAgri program in 2009 with the task of examining mobile’s ability to bridge the information gap faced by the world’s poorest farmers and started out with two pilots, one in India and Kenya. I’ll mention a bit about the Indian pilot in a few slides. Case studies of both pilots are available on our website…
90% in SSAMotivation of the MNOSo, the question is… How will we empower these smallholders to meet the demand…while increasing their livelihoods?
Looking at the information gap we’re trying to bridge, we see a variety of information sources which farmers need and demand (…). The question is how do we provide this information in a way that is accessible, affordable, timely, accurate and relevant…?
We believe the best answer to that problem is the AgriVAS model. This consists of two channels of mobile communications; as you can see here, the first are automated services like SMS and automated voice messages. This is ideal for delivering fact based information and agricultural tips – based on the farmer’s profile.The second channel is a farmer helpline this is ideal for farmers who have a specific problem or are facing a specific threat which they need support with.
Our pilot project in India, which I mentioned earlier, is great example of the AgriVAS model in action.Their AgriVAS service consisted of 5 tips delivered via voice messages to farmers every day. These tips are based on the farmer’s profile and customized to their agrocilactic environment.2-3% of the time, a farmer’s crops will be threatened by something they cannot address. In those cases, they can call the Farmer helpline where agricultural experts will assist the farmer in trouble shooting, identifying the true cause of the problem and then provide a solution.
MNOs don’t have agricultural expertise but have infrastructureThere is no content in the ready to use format for mobile deliveryAgri services and applications don’t reach scale as MNO is a gatekeeper, investment in marketing is prohibitive, farmers’ ability to pay is lowNGOs and agriorganisations use face-to-faceHigh risk, as no business case yet
Now that we have an idea of the AgriVAS model, lets take a look at the market opportunity (after all this is an agribuisness forum and we all know these interventions are not sustainable unless there is a business case for its existence)Vodafone and Accenture just recently published a report on mobile in the food and agriculture value chain called Connected Agriculture. Their findings state that the $110B increase in emerging market farmers incomes will come from these 2 main drivesNow, I’m sure all of you guys (at least the business folks) are asking yourself, “how can I get a piece of that $110B action? Or atleast I’m hoping you’re asking yourself that because I’m gong to try to answer it
Cost efficiencyProfile/history/feedback/ communication channelThe main argument is that many of these companies already have a budget for extension services so AgriVAS allows them to reach more farmers, cost efficiently and effectively. AgriVAS further supports the requirements of contract farming companies.
Snacks and Bev Co. buying services from IKSL$1/month for contract farmersFarmers receive tailored information servicesPotatoes and tomatoesSupports the requirements of Snacks and Bev Co.Greater quality and quantity of raw material inputsReduced time and cost of processing finished products
Insurance of farm inputs against draughtInput provider’s Challenge:Sales based solely on weatherInsurer’s Challenge:Saturated marketsDifferentiationServicing geographically dispersed farmersCost of verifying claimsmAgri Solution:Mobile payment platformAutomated weather stationsResults Callcenter needing agronomists (not alll about one specific service, its all dependent on each other, a true ecosystem)22k farmers
Amol Jadhav - GSMA Development Fund
Impacting the AgricultureValue Chain with MobilesAmol JadhavmAgri Project ManagerGSMA Development Fund