Digital technology and agricultural markets
Background paper for The State of Agricultural Commodity Markets (SOCO) 2020
Description
Digital technology and agricultural markets is a resource designed to provide a non-technical overview of emerging digital technologies and their influence on agricultural markets and food value chains. The focus is on e-commerce platforms and distributed ledger technologies such as blockchain that enable more efficient and inclusive agricultural markets by reducing information asymmetries and transaction costs and improving financial inclusion along food value chains. The publication examines how digital platforms, artificial intelligence, distributed ledger technologies and 3D printing reshape information flows, improve efficiency, and strengthen the inclusion of small farmers in formal market systems.
Technology
The resource covers digital tools including AI, machine learning, blockchain, big data, cloud computing, drones, remote sensing and IoT sensors, emphasizing their roles in predictive analytics, traceability, paperless trade, and e-commerce platforms.
Target
The resource supports researchers, policymakers, extension specialists, and agribusinesses seeking knowledge on digital transformation of agricultural markets. The resource is particularly beneficial to farm advisors and agricultural cooperatives to learn about the markets of various digital agriculture tools. The overview report has been downloaded 10 933 times as of December 2025.
Business model
The resource is publicly accessible and free of charge as part of FAO’s knowledge products.
Impact
The resource highlights that the impact of digital technologies on the agriculture and food industry will be more evident in the years to come when they become widely accepted by all involved actors, and their usage reaches a critical scale.
Four Betters
Better production
Better environment
Better life
