Chapter 5 - Current and prospective impacts of digital marketing on the small agricultural stakeholders in the developing countries

Abstract

Artificial intelligence and big data technology have been recognized as a new path to address global industrial and social problems. Because of the COVID-19 pandemic, the digital agricultural market (DAM) is projected to grow rapidly in the coming years. This industry is expected to grow from $5.6 billion in 2020 to $6.2 and $11 billion by the ends of 2021 and 2025, respectively, which will create a good opportunity for the growth or establishment of a new DAM business. This will guide the local and international companies working in the DAM industry to increase their investments in the local or international business in the future, which requires identifying and analyzing this industry’s current and perspective actions on social welfare and the environment. This chapter covers the following items: DAM before, during, and what is expected after the COVID-19 pandemic in developing countries and its role in mitigating the negative impacts of uncertainty (price fluctuations, climate change, crises, and biological risks) on small stakeholders. The expected opportunities and risks of investment in the DAM industry in the future are also highlighted, in addition to estimates of its impacts on social welfare and the environment. Market segmentation of the DAM in selected developing countries and its expected growth rate and share including hardware, software, and services are also outlined. The DMA value chain stakeholders in developing countries, particularly in Africa, are identified. The role of the mobile banking system to accelerate the agricultural transformation in developing countries is described, while recognizing the impacts of DAM on food security, poverty reduction, and reducing food losses and waste. The role of agricultural digitalization in achieving the sustainable development goals 2030 is presented. Finally, suggest recommendations for policymakers and investors in developing countries for the design of effective strategies for establishing electronic agricultural businesses through adopting digitalization and public–private partnership investments are described.