March 2021 agricultural “platforms” in a digital era

vulnerable MSMEs. 
Platforms can create a channel for relatively 
smaller businesses to access markets, by using 
the infrastructure of a Platform to identify and 
reach customers—and for those customers to 
find them. However, certain MSMEs may not 
be able to able to access Platforms (e.g., due 
to lack of digital connectivity) or their scale 
of operations may no longer be viable when 
Platforms make it possible for more distant 
actors to compete in their highly localized 
markets (e.g., ag supplies marketplaces 
supplanting local small agriculture supplies 
sellers). In agriculture, the proportion of 
MSMEs, such as small traders and retailers 
serving highly localized markets, is relatively 
high. The emergence and growth of agricul-
ture Platforms must therefore be balanced 
against impacts on businesses active at the 
micro level. 
4. DATA AND SECURITY: Less control 
and ownership over data and
information. 
 
 
 
Aggregating, analyzing, and utilizing vast 
amounts of data on users and interactions is 
a core part of Platforms’ service offerings and 
value proposition. However, in many cases, 
the vast amount of data that is collected—as 
well as the lack of transparency around what 
is collected and how it is used—raises con-
cerns around data ownership and privacy. 
This is especially true when Platform services 
are provided free or heavily discounted in 
return for the monetization of user data. 
In the smallholder agriculture sector, data 
ownership is an important topic. While more 
and more data is generated on farmers, their 
households, and their farms, there are few 
regulations on data protection and limited 
farmer awareness of what data is being gen-
erated, by whom, or how it’s used. The vast 
volumes of data that Platforms generate can 
exacerbate this already troubling situation.