Working Paper
Digital Technology Adoption in Agro-processing Value Chains
Reena Das Nair and Nwabisa Nontenja
2023
#Agriculture and food
#Sub-saharan Africa
The adoption and use of digital technologies in the supply chains of large and lead firms has the potential to increase the participation of small and medium-sized enterprises (SMEs) along food value chains in various ways. At the primary level of food value chains, better traceability through digital technology enables farmers to realize more value from their crops by allowing for a degree of differentiation (traceability back to individual farms). This could facilitate the development of niche markets and the sale of higher value crops. Simple digital technologies can also be used to monitor and control outbreaks of disease through early detection and warning systems disseminated to farming communities. It could further give the farmer greater visibility when selling through supermarket chains. Research by Chisoro-Dube, das Nair and Landani (2018); Barnes and Higginson (2020); das Nair and Landani (2020) and Krishnan and das Nair (2021) has further showcased how digital technology can be used to address challenges at the primary production level to increase productivity, disseminate valuable information, enable payments, and facilitate access to inputs, information, finance and end markets in food value chains.
