The session highlighted the usage of ICT for creating marketing platforms by discussing relevant examples and explored possible solutions for SMEs in South Asia.

The session explored the application of ICT solutions in creating market linkage platforms for smallholder farmers by citing examples of work on livestock systems projects done under the innovation lab for the University of Florida on "usage of ICT for digitization of the livestock value chain" and the support measures developed by USAID for agricultural SMEs in Tajikistan to prevent market disruptions during COVID-19 through the creation of multiple collaborative ICT platforms. The panelists further explored the leverage of similar solutions for SMEs in the South Asian region.

Panelists:

• Adegbola Adesogan, Professor of Ruminant Nutrition, Director of the Food Symptoms Institute and Director of Feed the Future Innovation Lab for Livestock Systems at the University of Florida

• Conner Mullaly, Assistant Professor, Food and Resource Economics Department at the University of Florida

• Annie Steed, the Acting Director for the Governance and Economic Growth Office at USAID Tajikistan

• Ram Dhulipala, leader of digital agriculture and youth at ICRISAT

Example 1: Adoption of Virtual Collection Center (VCC) app in Nepal

Challenges in marketing of products: small farmers face high costs of doing business, are dispersed over wide areas and have poor access to infrastructure. This makes it difficult for them to engage in potentially profitable markets, such as urban areas. It is also expensive for intermediaries to deal with individual small producers. 

Key Measures undertaken: Farmers who are members of the cooperative were provided with a VCC app in their mobile. The VCC app allowed cooperatives to collect data on inventories available from their members, a key measure implemented. This data is then used to negotiate sales with traders. After getting orders from traders, the cooperative coordinates sales through an app by inviting members to pool their produce to meet the demand of a particular trader.

Issues in implementation: 

1. Challenges in digitizing all points of contact, as it required people to bring goats to a market or a collection centre.

1. Obtaining inventory data from the farmers: Farmers are hesitant to provide inventory data as they want to maintain the option of selling individually to private producers based on prices bargained by the cooperative.

1. The data collectors/cooperatives also lack incentives to get good data.

1. The planned internet version might be relevant only for a few cooperatives that have access to good mobile networks.

Key learnings:

• App usage seems to be correlated with geography and accessibility; cooperatives in low-lying areas have higher usage of the app than those in mountainous areas, primarily due to the quality of the mobile network infrastructure.

• Usage of the app overcomes heterogeneity in the existing process of information collection. Previously, the cooperative would blow a whistle to gather inventory information and notify traders of their arrival. At times, members located far from the cooperative office have to rely on word of mouth and, at times, may not get the information on time. The App brings homogeneity in information dissemination.

• A hybrid distance learning platform for community animal health workers, especially for women, resulted in a higher training completion rate: In the hybrid model developed, the requirement for on-campus training was reduced to a quarter of the time. The trainees can now study the government-approved curriculum at home using an Android tablet. Initial study results reveal that the training completion rate amongst the distance learning group is higher (52%) compared to the traditional learning group (29%). This has proven a highly efficient mode of delivery, especially for women as it was difficult for them to stay at the training center for about a month to complete the course due to household responsibilities.

Example 2: Tackling trade related disruptions to agribusiness SMEs in Tajikistan brought by Covid-19 through usage of digital technologies

Challenges: Border closures due to Covid 19 disrupted the agri supply chain. 

Key measures undertaken: USAID’s mission was to work with the Chamber of Commerce to keep export and import borders open and thereby support the SMEs composed primarily of farmers, traders, or agriculture service providers. The following key measures were undertaken:

• Setting up a trade information hotline centre to support border stations to provide information on the status of the import of agri-inputs such as fertilizers, pesticides, and seeds

• Introduction of an online freight portal to provide matchmaking services to help exporters find transportation to export their products.

• The creation of a Business Association hotline to help SMEs reach existing customers, gain new customers, and offer services

• Development of an online directory of about 120 Central Asian horticulture producers to catalyse trade and promote horticultural products. The directory gives transportation cost estimates from cities in the region of major global destinations and includes an export guide for horticulture goods for Central Asian countries, outlining all the necessary export and certification procedures.

• Innovative video conference technologies were developed to provide technical assistance to those with access to the internet. Where the internet wasn’t available, applications such as Viber and WhatsApp were used to connect rural farmers. Local technicians were present for on-the-ground support.

• Worked with FIs to develop loan products for SMEs to finance the program.

• Regional online technology webinars were provided to over 400 participants as part of a business accelerator style masterclass to catalyse startups.

• A partnership between an IT academy and a business accelerator was initiated to train over 500 people in programming and IT skills. Those people were then helped to find jobs or start their own businesses.  

Learnings for South Asian region and scaling of ICT solutions to its context:

• Personalization of the solutions: Despite the advancement in the types of ICT tools being used, there is still a need for personalization, or the human touch point at the last mile.

• Introduction of digital solutions for SHGs: There is a need to explore the potential of ICT in bringing the desired transformation, in cases where digital platforms blend and ride on top of the SHGs (from projects/programmes that have a long legacy of investing in rural livelihoods) that have institutionalised over a period of time.

• Explore the potential to switch from a mediated access model to direct access platforms: A few iHub startup models in Bihar, India are based on a mediated access model where some person at the last mile accesses the digital platforms. Startups such as Kuza and Caglary use the mediated access model, where rural youth act as mediators and reach out to the farmers. These kinds of mediated access models are the enablers for ICT businesses to scale their operations. Similar to the VCC app in Nepal, there have been numerous instances in India where farmers have voluntarily formed WhatsApp or Facebook groups. In these groups, the farmers coordinated amongst themselves to collect aggregate information on available produce and reach out to potential buyers.

• Explore the potential of ICT in bringing efficiencies across the agri supply chain: Agribusiness works on personal relationships that define the farm-to-market supply chain. In such a scenario, ICT has the potential to bring in visibility that can reinforce positive behaviour and result in systemic efficiencies—collectively leading to higher income and prosperity for farmers if managed well.

• Consider the local ecosystem while designing the digitization solution: While digitising points of contact for farmers is important to loop in small businesses in the ICT era, Retailers buy a significant proportion of farmers' produce, and it is important to consider them as one of the enablers in the digitization of the supply chain.