Smallholder farmers need digital marketplaces to curb post-harvest losses- Diana Tenebe, COO, Foodstuff Store 

In the ever-evolving landscape of modern business, digital marketing has emerged as a game-changing force, harnessing the might of internet technology and a multitude of digital platforms to propel products and services into the limelight. One area where this transformative tool holds immense potential is Nigeria’s agricultural sector, where it can breathe new life into age-old practices and elevate farmers onto the global stage.

Despite being the backbone of Nigeria’s economy, the agricultural sector has long been plagued by numerous challenges, including limited access to markets, low productivity, and high post-harvest losses. However, the advent of digital marketplaces has opened new doors for farmers, enabling them to connect with customers and suppliers both locally and globally. These innovative platforms offer a unique opportunity for farmers to showcase their products to the world, boosting their visibility and sales.

In an interview with Business a.m.’s Onome Amuge, Diana Tenebe, chief operating officer at Foodstuff Store, a leading food tech enterprise that connects farmers and whole food suppliers with customers, spoke about the untapped potential of digital marketplaces in Nigeria’s agricultural sphere. Excerpts follow. 

What do you consider to be the main factors contributing to the recent decline in Nigeria’s agricultural output as reported by the National Bureau of Statistics (NBS), and how do you think they can be addressed effectively to boost productivity?

The decline in Nigeria’s agricultural output can be attributed to several factors, including inadequate infrastructure, limited access to modern farming techniques, inconsistent government policies, insecurity, and the impacts of climate change. To address these challenges and boost productivity, we need to invest in improving infrastructure, provide training and access to modern agricultural technologies, implement supportive government policies, and adopt climate-smart agricultural practices.

What specific technological solutions do you think can be leveraged to support smallholder farmers in the country?

A range of technological solutions, including mobile applications for agricultural extension services, precision agriculture technologies, smart irrigation systems, mobile payment and financial services, and market information systems, have the potential to greatly support smallholder farmers in Nigeria. By empowering these farmers to optimise resource use, access market information, manage finances, and adapt to climate change, these technologies can ultimately enhance their productivity and livelihoods.

How can we ensure that these technological solutions are accessible and affordable to smallholder farmers, who typically have limited resources?

To ensure that smallholder farmers have access to affordable technological solutions, a multi-faceted approach is necessary. This can involve offering subsidies and grants, collaborating with financial institutions on providing affordable financing options, investing in capacity building and training programmes, establishing demonstration farms and pilot projects, developing localised solutions, engaging in public-private partnerships, and fostering community engagement through farmer cooperatives. By implementing these strategies, we can break down barriers and empower smallholder farmers to thrive in the agricultural sector.

Are there any successful examples of the use of technology or innovation in addressing food insecurity that can be replicated on a wider scale in Nigeria?

There are successful examples of technology and innovation addressing food insecurity that can be replicated in Nigeria. For instance, initiatives like mobile-based market platforms have shown significant impact in bridging the gap on food access and affordability. Take, for example, Foodstuff Store, a real case scenario where we connect farmers directly to consumers. Through our platform, we streamline the supply chain, reduce waste, and ensure fair prices for farmers, ultimately improving food security. Replicating similar models in Nigeria could have a transformative effect on food access and affordability, benefiting both farmers and consumers alike.

How important do you think adequate storage infrastructure is in addressing the food inflation issue? How can the government improve the current situation?

Adequate storage infrastructure plays a crucial role in addressing food inflation by reducing post-harvest losses and stabilising food supply throughout the year. The government can improve the situation by investing in the construction of modern storage facilities, promoting cold chain logistics, and providing incentives for private sector participation in storage infrastructure development. By enhancing storage capacity, we can mitigate the effects of seasonal fluctuations in food prices and ensure food security for all.

How can digital marketplaces address the post-harvest losses and distribution challenges that smallholder farmers face in Nigeria?

Digital marketplaces play a crucial role in addressing post-harvest losses and distribution challenges faced by smallholder farmers in Nigeria. By connecting farmers directly to buyers, these platforms eliminate intermediaries, allowing farmers to sell their produce quickly and efficiently. For instance, at  Foodstuff Store, we create a platform that enables farmers to showcase their products to a wider audience, reducing the risk of spoilage and increasing their incomes.

What measures can be taken to ensure the security and reliability of digital marketplaces, especially in regions with limited internet connectivity and infrastructure?

Ensuring the security and reliability of digital marketplaces in regions with limited internet connectivity and infrastructure requires innovative solutions. One approach is to develop offline-capable mobile applications that allow farmers to access marketplace functionalities even without internet connectivity. Additionally, investing in the expansion of internet infrastructure and providing training on cybersecurity measures can enhance the reliability and security of digital marketplaces in these regions.

What are the potential barriers to adoption of digital marketplaces by smallholder farmers, such as lack of digital literacy or mistrust of technology? How can these barriers be overcome?

Potential barriers to the adoption of digital marketplaces by smallholder farmers include lack of digital literacy, mistrust of technology, and limited access to smartphones or internet connectivity. These barriers can be overcome through targeted education and training programmes, user-friendly interface designs, and partnerships with local organizations to provide access to technology and internet connectivity. Building trust through transparent pricing, reliable delivery, and customer support is also essential in overcoming resistance to technology adoption.

How do digital marketplaces address the problem of information asymmetry between smallholder farmers and buyers? How can the access to information about market prices, weather conditions, and best practices benefit the farmers?

Digital marketplaces address the problem of information asymmetry between smallholder farmers and buyers by providing access to real-time market prices, weather forecasts, and best agricultural practices. This empowers farmers to make informed decisions about what to produce, when to sell, and at what price, ultimately increasing their profitability and market competitiveness. By democratising access to information, digital marketplaces level the playing field and create opportunities for smallholder farmers to thrive in the market.

Are there specific features of digital marketplaces that could be particularly beneficial to smallholder farmers in Nigeria, such as payment systems or logistics management tools?

Digital marketplaces offer several features that could benefit smallholder farmers in Nigeria, such as mobile payment systems, logistics management tools, and rating systems for buyers and sellers. Mobile payment systems enable cashless transactions, reducing the risk of theft and providing financial inclusion for farmers. Logistics management tools optimise delivery routes and schedules, reducing transportation costs and improving efficiency. Rating systems build trust and accountability in the marketplace, ensuring fair and transparent transactions for all parties involved.

Are there any cultural or social factors that might hinder the adoption of digital marketplaces by farmers or consumers in Nigeria? How could these factors be addressed?

Cultural and social factors, such as traditional farming practices and reliance on interpersonal relationships in business transactions, may hinder the adoption of digital marketplaces by farmers or consumers in Nigeria. To address these factors, it’s essential to incorporate local knowledge and cultural norms into the design of digital platforms, emphasise the benefits of technology adoption through targeted communication campaigns, and engage community leaders and influencers as advocates for digital marketplaces.

How can the government and other stakeholders support the development and adoption of digital marketplaces to ensure that they are effective and sustainable solutions to food insecurity?

The government and other stakeholders can support the development and adoption of digital marketplaces by investing in digital infrastructure, providing subsidies or incentives for technology adoption, and creating an enabling regulatory environment. Additionally, collaboration with private sector companies, NGOs, and research institutions can foster innovation and ensure that digital marketplaces are effective and sustainable solutions to food insecurity in Nigeria.

Do you believe that digital agriculture could create new employment opportunities in rural areas? If so, how can these jobs be effectively developed and sustained?

Digital agriculture has the potential to create new employment opportunities in rural areas by enabling farmers to diversify their income streams and participate in value-added activities such as agri-processing and e-commerce. To effectively develop and sustain these jobs, it’s essential to invest in skills development programmes, entrepreneurship training, and access to finance for rural entrepreneurs. Moreover, fostering collaboration between digital platform developers, agribusinesses, and government agencies can create a conducive ecosystem for job creation and economic growth in rural communities.

Are there successful examples of digital agriculture initiatives in other countries that can be emulated or adapted for the Nigerian context?

Yes, there are successful examples of digital agriculture initiatives in other countries that can be adapted for the Nigerian context. For instance, initiatives like Kenya’s M-Farm and India’s e-Choupal have demonstrated how mobile technology can empower smallholder farmers, improve market access, and enhance agricultural productivity. By leveraging lessons learned from these initiatives and tailoring them to the unique challenges and opportunities in Nigeria, we can accelerate the adoption of digital agriculture and drive positive change in the agricultural sector.

What specific investment strategies and initiatives would you propose to improve rural infrastructure and promote digital agriculture in Nigeria?

To improve rural infrastructure and promote digital agriculture in Nigeria, specific investment strategies and initiatives are needed. These include investing in the expansion of internet connectivity and mobile network coverage in rural areas, upgrading transportation networks to facilitate access to markets, and establishing digital hubs or innovation centres in agricultural regions. Moreover, partnerships between government, private sector companies, and development organisations can mobilise resources and expertise to support the deployment of digital solutions and infrastructure development in rural communities.