Benefits and risks of a digitised farm sector

Digital technology is rapidly transforming all stages of the value chain, from the farm to the table. Its adoption is improving efficiency, creating new jobs, generating new income streams and saving resources. Digital technology can help markets function better and improve farmers’ access to them. Innovations such as food e-commerce can benefit farmers and consumers.

Digital technology can be disruptive, however, by modifying or displacing value chain activities and products. To guarantee that the dividends of digital innovation are shared with the poorest, we have to reduce the current digital divide.

At farm level, digital technology applications are helping to address market failures and facilitate the integration of farmers in value chains by driving down information and transaction costs. Sensors, satellites, robots and drones, for