FAO R C A T P: Egional Onference For Sia and HE Acific
FAO R C A T P: Egional Onference For Sia and HE Acific
FAO R C A T P: Egional Onference For Sia and HE Acific
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Executive Summary
The global food system continues to face considerable challenges in being able to provide enough
food of adequate quality to feed an ever-growing population. The world is also changing at a fast pace
with the emergence of an array of technologies. Digital technologies offer unique opportunities for
improving food production and trade, especially to smallholder farmers, and in helping to achieve the
Sustainable Development Goals (SDGs). This paper discusses the potential of the digitalization of
agriculture and documents FAO’s initiatives to support countries in developing and implementing
digital strategies and applications.
This document may be printed on demand following an FAO initiative to minimize its environmental impact and
promote greener communications. This and other documents can be consulted at www.fao.org
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Introduction
1. In food and agriculture, digital technologies are rapidly transforming how people, businesses and
governments work and already generate significant benefits by reducing the costs of information,
transactions and supervision. Many countries have, or are in the process of developing digital
agricultural strategies to design, develop and apply innovative ways to use digital technologies. Such
strategies promote digital infrastructure improvements and the development and application of digital
tools in agriculture and rural areas, and attempt to bridge the gap of the ‘digital divide’ between
economies, sectors or individuals with differing abilities to adopt new technologies.
2. This document discusses the potential of digital technology applications to improve the
functioning of
food and agriculture systems, FAO’s activities to support member countries in leveraging digital
applications for agricultural and food systems transformation, and the need for a multi-stakeholder
forum, such as the proposed international digital council for food and agriculture recently approved by
75 ministers for agriculture participating in the 2020 Global Forum for Food and Agriculture (GFFA).
also serve to concentrate power. They will be critical instruments for responding to global challenges
and promoting sustainable development, but they can also complicate these efforts in unexpected
ways. What is almost certain is that the pace of food systems change is being accelerated by these
technologies, and serious efforts must be undertaken to monitor their use and impacts in order to be
able to suggest measures to maximize benefits and minimize downside systemic risks.
7. At the same time, although digital technologies can bring significant benefits to society, they raise
some concerns. The digital divide, particularly between modern and subsistence farming, is growing
quickly. Privacy and data issues in digital agriculture can erode trust in technologies. As in all sectors
of the economy, there is a need for transparency and clarity around issues such as data ownership,
portability, privacy, trust and liability. The introduction of robotics and artificial intelligence could be
beneficial in agricultural sectors that are characterized by a low supply of workers, but in other
countries with abundant labour may cause workforce displacement unless workers adapt their know-
how and specialize in new tasks. This can create significant problems in rural areas where food and
agriculture remain the primary source of employment and the skills needed to exploit the positive
potential of digitalization are lacking.
8. Digital technologies may also have implications for the farm structure in the long term; today they
are mostly used by larger farms and contribute to the advantages of scale efficiency; but there is
mounting evidence that they can also be used to improve market access for small producers and can
provide other benefits, such as better and more inclusive financial services. There is also research that
suggests that Blockchain technology can have diverse effects: although it improves efficiency,
promotes transparency infood value chains, and improves the traceability of food products, it may also
limit competition and under certain conditions, encourage greater collusion among companies. The
above issues cut across many economic sectors, activities, business and countries, and at the same time
they are important to agriculture.
9. Many countries have or are in the process of developing digital agricultural strategies, which aim
to design,
develop and apply innovative ways to use digital technologies. Such strategies promote digital
infrastructure and literacy improvements, and the development and application of digital tools in
agriculture and rural areas. Nevertheless, for agriculture, the transformational potential of a digital
strategy lies both in the adoption and adaptation of digital technologies and their future development
in ways that support systemic improvements and the broader objectives of the 2030 Agenda for
Sustainable Development. The most important component of such a strategy is the enabling
environment – policies, institutions, information, monitoring and other public goods – through which
developers, purveyors and users of digital technologies can be induced to evolve technologies to make
a crucial difference in the livelihoods of farmers, agribusinesses and consumers.
12. The need for an inclusive and multi-stakeholder forum to discuss the potential of digitalization of
food has been reflected in January 2019, during the GFFA, where approximately 74 ministers for
agriculture from around the world requested FAO “to draw up, in consultation with stakeholders:
African Development Bank (AfDB), Technical Center for Agricultural and Rural Cooperation (CTA),
International Fund for Agricultural Development (IFAD), ITU, Organisation for Economic Co-
operation and Development (OECD), World Organisation for Animal Health (OIE), World Bank
(WB), World Food Programme (WFP) and World Trade Organization (WTO) a concept for
considering the establishment of an International Digital Council for Food and Agriculture that will
advise governments and other relevant actors, drive the exchange of ideas and experiences and
consequently help everyone harness the opportunities presented by Digitalization”.
13. In January 2020, FAO and other International Organizations presented to the GFFA a concept note
proposing a new ‘International Council for Food and Agriculture,’ a multi-stakeholder forum that will
work closely with existing mechanisms to identify the benefits and risks of digitalization, facilitate
dialogue between all stakeholders and propose measures to build trust and promote adoption of digital
technologies that can help realize the objectives of the 2030 Agenda and the SDGs. The final
communiqué of the GFFA stated: “[W]e, the agriculture ministers of 71 nations, hereby thank FAO
and the other International Organisations for developing a concept for the establishment of an
International Digital Council for Food and Agriculture, as we requested in the 2019 GFFA Final
Communiqué [http://fao.org/digital-council]. We welcome the FAO’s efforts on the concept and call
upon FAO’s governing bodies to support a process for its establishment.”
14. Members of the Regional Conference are invited to express their views on digitalization in food
and agriculture systems and the measures that can be taken to maximize its potential for good in food
and agriculture, and to consider the ways, including through an international forum hosted at FAO, in
which the Organization can support global knowledge sharing and analysis to inform policy-makers
and other food and agriculture stakeholders.