Digitizing Agricultural Value Chains

In reality, agriculture value chains - the range of steps and related actors necessary for an agriculture product to move from the farm to the final customers - are often quite complex. Digitizing the processes around payments could make these value chains more efficient. There are clear benefits for buyers to going digital, including lowering the costs of withdrawing, transporting, and securing cash and distributing payments – either to farmers directly or via associations or cooperatives. But the value proposition for farmers is less clear. The overall lack of mobile money ecosystems in rural areas, even in countries with the most developed digital financial service ecosystems, gives farmers little incentive to switch from cash to digital payments.

23 February 2016
Most companies don’t want to be the first in a sector to try something new and potentially unpopular. Dominant buyers must lead the way to drive large-scale mobile money uptake by smallholder farmers.
19 February 2016
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Examining the cash flows of coffee and sugar farmers in Uganda for a CGAP-commissioned project revealed a seasonal cycle that is unsuited to monthly accounting practices. There are many ways that financial services could be designed to assist these farmers.
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Women bring their farm products to a market in Uganda.
22 January 2016
While there are clear benefits for buyers in digitized agricultural value chains, but the value proposition is less certain for farmers.
Men load bags of grain in a warehouse in Rwanda
15 January 2016
For the 7% of the world's smallholder farmers who work in tight value chains, digitizing the steps required to move an agricultural product from the farm to final customers could be an opportunity to deepen financial inclusion.