AGRICULTURAL SUPPLY CHAIN DIGITALIZATION AND VALUE CREATION FOR SMALLHOLDER PRODUCERS
DOI:
https://doi.org/10.5281/zenodo.23100733Keywords:
Agricultural Digitalization, Agricultural Supply Chain, Smallholder Farmers, Value Creation, Market Access, Digital TransformationAbstract
The digitalization of agricultural supply chains represents a strategic approach to enhancing distribution efficiency, market access, information transparency, and value creation for smallholder farmers. However, limited access to technology, low digital literacy, uneven infrastructure development, and relatively weak bargaining power remain obstacles to realizing the economic benefits of digital transformation. This study aims to analyze the role of agricultural supply chain digitalization in creating value for smallholder farmers and to identify the factors supporting its successful implementation. A literature review approach was employed, examining various scholarly studies on supply chain digitalization, agricultural digital platforms, market access, operational efficiency, and value creation for smallholder farmers. The findings indicate that digitalization can bolster value creation by improving access to market information, reducing transaction costs, optimizing distribution, enhancing product traceability, and expanding access to consumers and financial institutions. Beyond these benefits, the effectiveness of digitalization is heavily influenced by infrastructure readiness, farmers' digital competence, technology affordability, the quality of the institutional ecosystem, and policy support. Thus, the digitalization of agricultural supply chains serves not only as a tool for efficiency but also as a mechanism to strengthen the economic position of smallholder farmers and increase their participation in more inclusive and sustainable agricultural value chains.
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