Mobile technology role in driving efficiency to agricultural economies

1. Mobile Technology Role
in Driving Efficiency to
Agricultural Economy
By: Heba Assem
March, 2015

2. 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

3. 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

4. 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’

5. • 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.

6. • 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?

7. 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