According to a publication by the International Fund for Agricultural Development (IFAD), smallholder farmers manage over 80% of the world’s estimated 500 million small farms and supply more than 80% of the food to the world. Yet, these farmers are often neglected because they reside in remote and environmentally fragile locations.
While technological innovations are transforming the agriculture sector in a revolutionary way, the last mile supply chain is still the weak link. As a result, smallholder farmers continue to grapple with resource constraints and farm inefficiency both of which could have serious implications on growing population and climate change challenges.
The entire agricultural ecosystem needs to come together to improve the last mile supply chain. Here are some strategies to do it right:
Market Access
Smallholder farmers usually rely on local markets in their vicinity to procure seeds, fertilizers, and farm machinery and tools and sell their harvest. One of the main reasons is that they lack access to semi-urban and urban markets due to poor road connectivity and inadequate transport alternatives.
The public and private entities should build roads and transport services to reduce the supply chain gap. Quality input resources can be made available to the farmers at their village shops or exclusive agro-kiosks.
Financial Access
A majority of smallholder farmers do not have access to institutional credit and insurance services. There are either no financial institutions in their areas or they lack inclusion in formal banking and insurance. The financial institutions are apprehensive about taking risks with farmers due to a lack of proper documentation and credibility. Even if they do provide credit or insurance, it is expensive for farmers.
It is necessary to set up easy-to-access, easy-to-understand, easy-to-afford financial services for the farmers. There is a need to come up with a mechanism that clears land titles/disputes and gives digital identities to farmers to eliminate documentation-related issues for availing credit.
Digitization
The smartphone and internet penetration in rural regions has made it possible for farmers to access information at their fingertips. Several agtech startups have introduced mobile apps that connect farmers directly to agricultural experts, peers, suppliers, retailers, and customers. The farmers can buy inputs or sell their harvest on online/e-commerce platforms, get agronomy advice, weather alerts, etc.
Digitization can pick up pace further if farmers have to pay less to buy smartphones and data packages. Mobile towers should be installed in each rural area or even on farms and properties to improve network coverage. Digital literacy campaigns should also be conducted to empower farmers to utilize digital services to their full potential.
Connecting the Unconnected
There are still a large population of farmers who don’t have digital access for a myriad of reasons. The last mile supply chain for these farmers can be improved through SMS services, voice-based helplines, community TV/radios/computer networks, satellite internet, or digital aggregation.
Warehousing and Cold Storage Facilities
The post-harvest losses contribute to a significant amount of global food wastage. The primary cause is inadequate, low-quality, or expensive warehousing and cold storage facilities. Several agtech startups and private logistics companies provide scientifically designed storage solutions for farmers. However, they have not been able to reach smallholder farmers.
One of the ways to solve this last mile supply chain challenge is to build community storage spaces. Smallholder farmers can book these spaces on rent on a need basis to store their agricultural and non-agricultural commodities.
Conclusion
Last mile supply chain support to smallholder farmers is crucial for sustainable and profitable agriculture. It will bring farm-level visibility and transparency to the entire value chain. However, it is a holistic effort that seeks active participation from all stakeholders.
Syngenta Innovation Dialogues is part of the Shoots by Syngenta Accelerator initiative
The Syngenta Group Startup Accelerator program, part of the larger “Shoots by Syngenta” platform, provides early-stage companies with a supportive #ecosystem to develop new #agriculture #technologies. It includes giving #startups the opportunity to pilot their technology at Syngenta’s Farm of the Future and select grower locations globally, mentorship from our business leaders, the ability to connect with industry experts, as well as resources and funding to accelerate their growth and impact.
At Syngenta Group, we believe in #innovation and #collaboration. If you think you have what it takes, then we have the platform for you!
The Shoots by Syngenta Program is managed for Syngenta by Excelerate.
%201.webp)