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Home > Solutions > Value Chain Development for Smallholders
June 27, 2024    

Digital Commerce Promotes Green Agricultural Development

Technical Solution; Value Chain Development for Smallholders; Green Development

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Agricultural Element Allocation Systems

Digital technology embedded in agricultural element allocation systems is conducive to green agricultural development. Transformation of agricultural production into green modes is not yet complete, which restricts the high-quality development of Chinese agriculture. Modern information technologies, such as big data, the internet, cloud computing, and blockchain, are being applied to agricultural development in order to develop green rural industries, including rural cultural ecology, cultural tourism and leisure, and health care; cultivate new driving forces and new business formats for green agricultural development; and closely integrate digital technologies with crop cultivation, livestock farming, processing, and distribution technologies, thus promoting green agricultural development.

Agricultural Production Chains

The application of digital technology to agricultural production chains can help improve the quality and safety of agricultural products. Intelligent technologies such as AI, cloud computing, and blockchain make it possible to save water and land, reduce fertiliser usage, and improve the quality and safety of agricultural products by reducing pesticide usage, grasping the nature of and ascertaining information related to elements such as land, seed, water, fertiliser, pesticide, and biodiversity and utilising them in a manner that is in alignment with a region’s agricultural resources, ecological conditions, and environmental capacities, thereby transforming agricultural production and promoting the production of green, eco-friendly, pollution-free, and organic agricultural products. 5G, the Internet of Things (IoT), the industrial Internet of Things (IIoT), satellite internet, and other new-generation communication network technologies can also be utilised to optimise agricultural structures and regional configurations by promoting the development of agricultural production standardisation, branding, scaling and specialisation.

Agricultural Product Quality Traceability Systems

The combination of digital technology and agricultural product quality traceability systems helps strengthen agricultural product quality and safety supervision. Digital technology is making it possible to build agricultural IoT platforms possessing consulting services, data collection, remote control abilities, video surveillance, and other features and offerings as well as green organic food traceability systems and green organic food enterprise credit query systems. Such platforms make it possible to collect identification information at every stage of the process from growth to marketing, enhancing transparency throughout the entire process of green agricultural product production, sales and certification. The quality and safety of agricultural products can be improved by reconstructing entire supervision chains and improving quality and safety traceability systems.

Some communications companies provide remote intelligent agricultural services that can be accessed via PC and mobile phones for local rural and agricultural bureaus, agricultural enterprises, farmers’ cooperatives, family farms and farmers. Agricultural product supervision information covering the entire process is made available online, thus realising the docking of traceability and marketing information and enabling consumers to be comfortable with their consumption. Popular science publicity, green product display and green promotion, and other undertakings help consumers establish the concept of green consumption, which expands the scale of green agricultural product consumption.

Sale and Purchase of Agricultural Products

The application of digital technology to the sale and purchase of agricultural products helps alleviate supply and demand information asymmetry. Competition on e-commerce platforms is much fiercer than in traditional markets due to the fact that consumers are not restricted by their geographical locations. E-commerce platforms should, therefore, further optimise marketing promotion tools so that merchants can quickly and accurately provide information to their target consumers. Creating and furnishing various advertising tools that make it possible to push information related to green agricultural products to consumers is the main way of doing so at present. In the future, e-commerce platforms should use information technology to innovate promotion tools that enhance merchants’ marketing capabilities and provide consumers with more abundant green agricultural product information.

Additionally, e-commerce platforms should review certification information associated with green agricultural products provided by merchants and ensure green agricultural products' value in order to maintain consumers’ trust in products, merchants and platforms. Marketing agricultural products on e-commerce platforms is also conducive to addressing the problem of large quantities of green agricultural products and green agricultural products with many varieties selling slowly or not at all, which helps stimulate enthusiasm for green agricultural product production in addition to meeting consumer demand.

Green Agricultural Production Finance

The application of digital technology to the green finance of agricultural production promotes the transformation of resource utilisation into green production methods. Green finance focuses on the protection of the ecological environment and the effective use of natural resources in the process of investment and financing. It can be applied to traditional agriculture through information and digital technology in conjunction with market mechanisms and the government's public policies in order to facilitate the issuance of green bonds, provision of green loan interest subsidies, provision of green insurance designed to bolster the development of industries such as the digital economy and green organic agriculture, and provision of other services.

Restructuring industrial chains and supply chains can help reshape circular economies; vitalise elements such as land, forests, natural landscapes, and other natural assets; and enhance the value of ecological products, while financial functions can encourage green and sustainable development and a shift towards green production methods.

Southeast China's Zhejiang Province serves as a good example. Digital reforms that have been made in the administrative area have led to the development of a multi-scenario application platform that has resulted in the digitalisation of mountain forest resource management and development and maintenance of relevant databases. Forest-related loan procedures have been digitalised and simplified, and a series of green financial products, including hypothecated loans related to public forests, hypothecated loans related to easement, and guaranteed loans for village cooperatives, have been launched in order to benefit forest farmers as well.

Source:

AliResearch

Administration and Management Institute (AMI) of China's Ministry of Agriculture and Rural Affairs (MARA)

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Digital Commerce Promotes Green Agricultural Development

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Digital Commerce Promotes Green Agricultural Development

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Technical Solution