Assessing the Role of Mobile Phones in Offering Price Information and Market Linkages: The Case of M‐Farm in Kenya

Abstract

Many farmers in the developing world have limited access to agricultural technologies and markets. Mobile phone-enabled services that offer price information and market linkages could contribute towards bridging this gap by reducing uncertainty about expected profits, information asymmetries and market inefficiencies. This article uses the example of the price information and marketing service M-Farm in Kenya to empirically test this potential. Findings from a survey of M-Farm users confirm that m-services offering price information can help farmers plan production processes better, but also show that the radio can be an effective dissemination channel especially at the early stages of production. While evidence on the utility of the price information to help farmers obtain better prices is inconclusive, resulting changes in cropping patterns and harvesting times are likely to have contributed to perceived income gains. M-Farm appears to have had limited impact on trading relationships. In terms of methodology, the study also highlights the limitations of relying on farmers' perceptions gathered through surveys when assessing the impact of m-services.

ICT solutions for the informal sector in developing economies: What can one expect?

“…A study of price information and marketing service M Farm in Kenya reported that while services providing price information may have helped farmers make changes in production processes, including changes in cropping patterns, the utility of this service in helping farmers obtain better prices is inconclusive (Baumüller, ). A study of impact of ICT on microenterprise growth among women‐owned businesses in urban India found that access to mobile phone, computer, and the Internet accounts for a statistically significant but minimal impact on profits and number of workers employed by the enterprise, while use of mobile phones alone does not necessarily enable business growth (Chew, Levy, & Ilavarasan, ).…”

GeoFarmer: A monitoring and feedback system for agricultural development projects

“…Even though ICT access and use are emerging fast in developing countries, barriers to accessing mobile-phone based agricultural services still exist ( Aker and Mbiti, 2010 , ARD, 2011 ). Though progress has been made through digitalization initiatives that lead to improvements for smallholder agriculture ( Baumüller, 2015 , Courtois and Subervie, 2014 , Tata and McNamara, 2018 ), they still do not reach many farmers in developing countries. Lack of connectivity, missing digital capability and poor usability of ICT applications are some of the impediments that slow implementation of digital agriculture in the rural context ( Baumüller, 2017 , Salemink et al, 2015 ).…”

Mobile Phone Use by Zimbabwean Smallholder Farmers: A Baseline Study

“…Through mobile telephony, smallholder farmers can directly keep in touch with many clients in various marketplaces, and offer their produce at competitive prices (Zyl, Alexander, Graaf, & Mukherjee, 2014;Chhachhar, Chen, & Jin, 2016;Furuholt & Matotay, 2011;Mansingh & Erena, 2016). Use of a mobile phone also enables smallholder farmers to be aware of real-time weather forecasts and current information on agricultural inputs such as fertilizers and pesticides (Baumüller, 2015;Mansingh & Erena, 2016;Wulystan & Andrew, 2013). This mobile handset is carving an indelible mark on the socio-economic processes of rural communities in Sub-Saharan Africa, offering new directions and approaches for rural farmers (Bonthu, 2014;Chhachhar et al, 2016;Etwire et al, 2017;Mittal, 2016).…”

“…This mobile handset is carving an indelible mark on the socio-economic processes of rural communities in Sub-Saharan Africa, offering new directions and approaches for rural farmers (Bonthu, 2014;Chhachhar et al, 2016;Etwire et al, 2017;Mittal, 2016). Studies indicate that mobile phone technologies are producing energy and time savings for farmers, and ultimately improving their incomes (Baumüller, 2015;Mansingh & Erena, 2016;Masuka et al, 2016).…”