Technology is playing an influential role in improving how different industries work and become more productive. That being said, farming is one such industry. We all remember the farming industry as farmers sweating and plowing through the fields. However, the farming industry has changed, and farmer producer companies have become the regulating authorities. The farmer producer companies are working to help farmers become organized.
In addition, these companies are working on improving the strength of farmers when it comes down to bargaining power. However, the farmer producer companies have been digitalized with the advent of technology. This digitalization is reinforcing the potential of small farmers, helping them get better revenues and profits. With ample technical support, the farmer producer companies can disperse the barriers that tend to restrict effective farm management services.
It wouldn’t be wrong to say that the digitalization of farmer producer companies will improve the socio-economic farmer status. It’s obvious that the farming and agricultural industry still doesn’t have sufficient technical expertise and infrastructure; which can restrict the farmer producer companies from supporting the farm management of small farmers. This inadequacy can also lead to inaccuracy and differentiation in offering access to farmers’ credit.
With the absence of digital solutions, the farmer producer companies can struggle to enhance the farmer’s credibility. Even more, it restricts the farmers from capturing global opportunities. Moving forward, the digitalization of farmer producer companies can improve the market opportunities of farmers and offer competitive pricing for the crops. That being said, it will help with the financial stability of the farmers since FPCs will have access to financial services.
The integration of advanced farming technologies will also allow FPOs and FPCs to improve the management capacity of farmers (pre and post-harvesting). So, let’s dive some deeper into these details!
Management Expertise through FPCs
The food production companies are playing an essential role in improving the profitability for farmers and producers of the crops. Even more, FPCs have access to cost-effective farm ERP software, which is an essential point for small farmers. Still, the higher production costs and ever-changing climate conditions lead to discrepancies in productivity and growth. All in all, it has become challenging to yield better growth and productivity.
With the lack of insufficient management expertise, the FPCs are deprived of professionalism which adversely impacts the results. That being said, the integration of efficient technologies will empower the food production companies to solve the challenges regarding credit, market linking, and management of input. However, digitalization empowers the farmers through high-end farm planning and management. These factors will improve profitability and sustainability.
Digitalization will allow the farmers to receive the latest farming knowledge while creating awareness about correct crop protection and farm management techniques. For the most part, the advanced technologies can help improve FPC’s capabilities in the management of farming technologies. In addition, it can help improve the logistics, procurements, and negotiations for every farmer. It also paves the way for improving man and machinery management.
The implementation of digital technologies can help with the quality control of crops and farms. All in all, it helps with sustainable and result-oriented farm management.
Improved Farm Financing Through Technology
The small-scale farmers are struggling to have access to credit for improving the sales and income rate. This means that farmers need proper financial support. With the digitalization of FPCs, the farmers can gain financial support, manage the operational costs, and promise optimized farm maintenance. For the most part, these are the most prominent challenges for farmers. That being said, ineffective credit access can restrict farmers from accessing high-end inputs, which can impact the productivity of crops.
With digitalization, the FPCs can help with financial aspects and crediting. It can help mitigate the risks, which eases the farming functionalities. The endorsement of digital solutions empowers the food production companies to make data-based decisions because it helps optimize the opportunities for stakeholders as well as the farmers. The tech intervention promises better credit delivery without compromising on convenience.
To illustrate, digital solutions can help track farm costs, farming expenses, and other accounting and financial operations. As a result, it will help the farmer to access better credits that fulfill the needs. Also, the digitalization of food production companies will help overcome the hurdles in financial operations. It also helps with the creation of better market opportunities for farmers.
Promotion of Climate-Smart Agriculture & Farming
The farming and agriculture industry depends on the climate, and it’s safe to say that these industries are sensitive to climatic conditions. For instance, insufficient rainfall can result in farming losses and will also increase irrigation costs. On the other hand, excessive rainfall and monsoon can lead to higher costs for fertilizers, seeds, and farming equipment. With digital solutions, food production companies can provide on-point weather forecast reports to farmers.
These forecasting reports enable the farmers to design suitable agricultural practices. In addition, the IoT-based tools will lead to accurate services for the farmers. These services can help with farm management. That being said, the farmers are empowered to apply pest-control chemicals and fertilizers for a better farming outcome. Also, the digital modules can help with farm equipment sharing for farmers.
Generally, it helps get rid of uncertainty in weather conditions and also reduces the input costs. As a result, digitalization will help farmers practice smart technologies for productive harvests.
Higher Resilience in Supply Chains
Post harvesting is equally important when it comes down to agriculture and the food industry. For the most part, the food supply chain can be complicated, which calls for traceability. The safety concerns with food are growing, which means the value chain must be proper. That being said, the need for a robust system is there because it helps with better responsiveness.
For this reason, digitalization will lead to better traceability across the food and post-harvesting supply chain. It can reduce the chances of safety lapses and wastage. That being said, the farmers will have the capacity to track the produce from the first phase to the shelf. Also, it helps with the provision of post-harvesting processes, such as cleaning, packaging, sorting, and grading!