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Book (series)Agricultural digitalization and automation in low- and middle-income countries: Evidence from ten case studies
Background paper for The State of Food and Agriculture 2022
2022Also available in:
No results found.Digital and automation solutions can solve labour bottlenecks, increase agricultural productivity, resilience and efficiency, and improve environmental sustainability. However, access is limited in low- and lower-middle-income countries, especially for small-scale producers. Based on ten case studies in sub-Saharan Africa, Latin America and the Caribbean and Asia, this study investigates the suitability of digital and automation solutions for small-scale producers, the main drivers and barriers to their adoption and the role of policies and regulations in creating an enabling environment. Findings show that technologies in the study countries are largely limited to smartphones and tablets, and related software tools (e.g. mobile applications). Most digital and automation solutions focus on crops, some on livestock and aquaculture, and a few on agroforestry. The most important adoption barriers include the high investment cost, lack of digital skills and knowledge and a lack of an enabling environment. Yet, advances in mechanization supported by digital technologies, and the development of hiring platforms foster adoption. The emergence of guidelines, strategic plans and policies that regulate and streamline automation should be encouraged, as should providing producers with information about the benefits and costs of digital and automation solutions. -
Policy briefTransforming agriculture with digital automation 2022
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No results found.The adoption of digital automation technologies in agriculture has been slow despite its potential to enhance the precision of agricultural operations, improve working conditions, and address environmental challenges, while building resilience to shocks and stresses. Most technologies are still relatively new and costly, especially for low- and middle-income countries, where poor connectivity and energy supply, and limited human capacity further hinder adoption. Incentivizing uptake requires creating a conducive business environment and suiting technologies to local conditions, especially for small-scale agriculture. -
DocumentImpacts of foreign agricultural investment on developing countries: evidence from case studies 2014
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There is growing evidence that investing in developing countries’ agricultural sector is among the most efficient ways to reduce poverty and hunger. Agricultural investments can generate a wide range of developmental benefits, but these benefits cannot be expected to arise automatically and some forms of large-scale investment carry risks for host countries. Although there has been much debate about the potential benefits and risks of international investment, there is a lack of systematic evide nce on the actual impacts on the host country and their determinants. This paper summarizes the results of FAO’s case studies on the impacts of foreign agricultural investment on host communities and countries. The studies suggest that the disadvantages of large-scale land acquisitions often outweigh the few benefits to the local community. In countries where local land rights are not clearly defined and governance is weak, large scale land acquisition raises particularly high risks for the loca l community. These include reduced access to natural resources and the loss of livelihoods, which are likely to generate local opposition to the investment. Even from the perspective of the investor, land acquisition is unlikely to be the most profitable business model due to the high potential for conflict and damage to reputation. Conversely, the studies suggest that investments that involve local farmers as equal business partners, giving them an active role and leaving them in control of the ir land, have the most positive and sustainable effects on local economies and social development. These inclusive business models need strong external support for supporting farmers and facilitating the investor-farmers relationship in order to succeed. They also require ‘patient capital’, as financial returns to investment are unlikely to materialize in the first years. Beside the business model, other important factors include the legal and institutional framework in the host country, the ter ms and conditions of the investment contract and the social and economic conditions in the investment area. Strengthening the governance and capacity of institutions in host developing countries is essential to enhancing the developmental impacts of foreign agricultural investment.
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