Promoting Agricultural Value Chains:
In the OIC Member Countries
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The rise of ICT is considered to hold enormous potential for growth in developing country
agriculture by connecting to millions of geographically dispersed small-scale farmers and
improving their inclusion in global value chains (e.g. World Bank, 2011; Miller et al., 2013). A
report by Vodafone, Accenture and Oxfam, for instance, notes that mobile-phone solutions
could boost farmers’ income by US$ 138 billion by 2020 across India, Africa and the Middle
East, by assisting producers to receive agricultural information, access financial services,
increase supply chain efficiency and facilitating market exchanges (Accenture et al., 2011).
As more and more people gain access to ICT, companies increasingly turn their attention to the
delivery of services through modern technologies, especially mobile phones but increasingly
also through smartphones and tablets, as the costs of these devices decline (Halewood & Surya,
2012). A 2011 report from the World Bank identified more than 200 ICT applications serving
small-scale farmers worldwide, ranging from projects led by large multinational corporations,
such as SAP, Google, Nokia and Vodafone, to local entrepreneurial initiatives, such as Eseko in
West Africa or e-Choupal in India (World Bank, 2011).
Different types of ICT solutions in agricultural value chains can be distinguished. Firstly, ICT
applications for production management focus on helping farmers improve their productivity
and profitability by offering digital extension, pest and disease information or weather
forecasting services (Miller et al., 2013). Secondly, ICT for market access provides information
on pricing of agricultural products and connects farmers to buyers, input suppliers or service
providers through virtual trading floors. Thirdly, ICT services can enhance supply chain
efficiency by improving data visibility, coordinating transportation to markets or tracing
products from farm gate to markets (Halewood & Surya, 2012). Finally, ICT services target
financial inclusion of small-scale farmers by offering financial services, such as transfer and
payment, credit, savings, insurance and financial derivations (Miller et al., 2013).
As several trends continue to work in parallel, including declining costs of mobile phones and
other devices, advances in data storage and exchange, and innovations in business models and
service provision, the prospects for using ICT effectively in agriculture are expected to expand
considerably in the near future (World Bank, 2011), in particular for specialised services
aimed at data-enabled devices with more individualised and user-friendly applications
(Halewood & Surya, 2012).
2.2 Success stories in promoting value chains
2.2.1 Enabling environments: The Dutch “Top Sector Policy” to focus on core
strengths
Motivated by concerns over international competitiveness and pressed by budgetary
constraints resulting from the 2009 economic crisis, the Dutch government introduced a new
policy framework in 2010 called “Top Sectors” to support key economic areas and enhance
Dutch competitive strength in the global market.
Nine ‘top sectors’ were chosen, which not only deliver an above average contribution to the
Dutch economy, but are also knowledge-intensive and export-oriented to capitalise on the link
between innovation and export performance. In addition, the chosen sectors are explicitly
related to social-ecological challenges, such as health and food safety, and therefore command
the attention of government (van der Wiel & van der Kroon, 2014). The following sectors were