Written by Mohd Fakhri Mohd Noor. This article first appeared in Digital Edge, The Edge Malaysia Weekly on August 26, 2024 - September 1, 2024
The agrofood sector plays an important role in Malaysia, contributing to over 11% of gross domestic product. This is significant, and among the many players in the sector, we have the heart and driving force of the sector — the farmers — to thank.
Our farmers play a crucial role in feeding our population. However, they face numerous challenges in doing so — and these trials are in addition to their current operating environment which has extreme weather events, rising geopolitical tensions and complex global supply chains all at play.
From our ongoing conversations with the farmers in our FarmByte ecosystem, we know that a key issue that farmers face is their vulnerability to market fluctuations. This, coupled with their weak market connections and a lack of transport options for their produce, means that farmers are often unable to access more lucrative markets. The consequence of this is their produce is sold at lower prices.
At the same time, many farmers still lack insights into the types of crops to plant and key information on current cutting-edge farming techniques that can help them increase their yield and thus earn better incomes.
How data-driven platforms can help farmers In the face of these challenges, we believe that the need for data-driven technology or having a data-driven platform is more apparent than ever. This is why we at FarmByte, conceptualised and launched our FarmByte app, which leverages a data-driven approach.
A data-driven platform allows farmers to make informed decisions based on real-time data and predictive analytics. This data can range from soil health and weather patterns to current market trends.
By leveraging such information, farmers can get the insights and guidance needed to optimise their crop selection, planting schedules and resource allocation. For example, precise weather forecast data can enable farmers to make informed decisions about irrigation, planting schedules and crop management.
Additionally, having data on market trends, supply and demand fluctuations and historical pricing would allow farmers to grow crops that are more likely to fetch higher prices, thus increasing their profitability.
Another key pain point of the farmers whom we engage with is that they are often underpaid by intermediaries or the middlemen. However, with data-driven platforms, farmers can facilitate direct connections with buyers, bypassing the middlemen and, hence, reducing transaction costs.
By participating in digital marketplaces, farmers can also reach a broader audience and negotiate better terms for their products. This direct market access not only increases their revenue but also fosters stronger relationships with buyers, promoting long-term business sustainability.
With sustainability being a growing concern in agrofood, data-driven platforms play a crucial role in promoting environment-friendly practices. By providing insights into efficient resource use, these platforms can help farmers reduce their ecological footprint.
For example, data on water usage and soil moisture levels can guide precision irrigation practices, conserving water resources. Similarly, data on crop health can inform integrated pest management strategies, reducing reliance on chemical pesticides.
Moving up the value chain It has become increasingly clear that farmers have a lot to gain from data-driven platforms.
These platforms serve as a catalyst for transforming traditional agrofood into a more efficient, sustainable and profitable sector.
By providing actionable insights, optimising resource use and facilitating market access, as well as improving financial inclusion, these platforms enable farmers to move up the value chain. As our agrofood sector continues to evolve, getting farmers to leverage and embrace data-driven platforms will be essential for farmers seeking to thrive in a competitive global market.
