Agri e-commerce – the buying and selling of agricultural produce online –will address notable challenges and inefficiencies in the agriculture supply chain by streamlining farmers’ access to the customer and creating new links between steps in the value chain. This is especially true in developing countries where online platforms can enable farmers to bypass intermediaries and sell directly to agri businesses, retailers, consumers and other customer groups, leading to increased efficiency of the supply chain and generating fairer incomes, as well as a transaction history for farmers.
Traditional agricultural value chains involve multiple intermediaries between farmers and consumers. Typically, farmers sell their produce at the farm gates to middlemen. Produce then passes through multiple intermediaries before reaching the end customer. As a result, farmers receive only a small proportion of the price paid by the end consumer as each intermediary in the value chain earns a margin. Agri e-commerce provides an opportunity to streamline the agricultural value chain and reduce inefficiencies in the distribution of farm produce.
This idea represents a new way for farmers to sell their produce to an array of buyers, including Agri businesses, retailers, restaurants and consumers. Agri e-commerce also increases farmers’ access to new markets and adds transparency to the value chain. It enables farmers to bypass several intermediaries, resulting in higher income for the farmers, reduced wastage, and the potential to deliver fresher produce to customers.
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