The capacity of a barrel is not determined by its longest stave but by its shortest one. Similarly, the vitality of an economy can be limited by the weakest sectors within it. Technological progress can enable industries to overcome weaknesses that they suffer from, however, thereby enhancing overall economic vitality via internal transmission and selection mechanisms.

Agriculture has traditionally exhibited vulnerabilities due to its exposure to both natural and economic risks as well as low levels of product standardisation and farmer organisation, short storage cycles, scattered production and transportation, inadequate agricultural social services, and insufficient new infrastructure. These kinds of issues  have long hindered coordinated development of the industry in the digital economy.

Chinese e-commerce, retail, internet, and tech giant Alibaba has addressed these challenges by building a comprehensive rural e-commerce service system, fostering a model for sustainable rural vitalisation. The following are the three main dimensions of its approach:

First Mile: Supporting Agricultural Production

Alibaba has invested heavily in agricultural production through digital technologies. In October 2019, it began establishing 1,000 digital agricultural bases nationwide, integrating new-generation digital technology with agricultural science. The initiative encourages farmers to engage in order-based production and adhere to standardised crop cultivation and livestock farming practices. Alibaba also developed a digital circulation system centred on origin warehouses (cold chain processing) and county co-distribution (rural logistics). Pre-cooling facilities at origin warehouses significantly reduce the loss of agricultural products, and digital sorting lines quickly convert agricultural produce into marketable commodities, aiding brand building.

Last Mile: Connecting Production and Consumption

As focus shifts from poverty alleviation to rural vitalisation, direct assistance is being replaced by guidance and support. Bridging the “last mile” between production and consumption has become critical. Alibaba has created a multi-dimensional e-commerce system that connects producers with consumers at various levels. Premium produce, other high-quality goods, and affordable options are offered on different platforms, ensuring competitive pricing in various categories.

Rural Soft Infrastructure: Boosting Talents, Culture and Ecology

Alibana’s Environmental, Social, and Governance Report 2022 indicates that the company pioneered an initiative designed to promote digital employment opportunities for young people in rural areas through training and job creation in the digital service industry known as the County Customer Service project in Xunwu County, Ganzhou City, Jiangxi Province, in late May 2020 and that it resulted in 200 jobs that are directly related being created and the general area benefiting indirectly. The jobs offer higher pay, more-secure benefits, and a greater degree of professionalism than what was previously available in Xunwu. By the end of 2021, the tech giant had rolled out the programme in over 45 counties throughout China.

Alibaba also helps preserve rural skills and intangible cultural heritage through its Taobao Villages, which are villages in which residents got started in e-commerce primarily via the Taobao Marketplace, at least 10% of families are actively engaged in e-commerce or where there are at least 100 active online stores, and total online sales exceed RMB10 million per year, and Taobao Townships, which are towns, townships, and sub-districts that include at least three Taobao Villages in their borders.

The company helps vitalises rural culture by showcasing local beauty and customs to a nationwide audience via its travel platform. It also promotes rural ecological vitalisation by engaging the public in ecological governance through an initiative launched by Alibaba affiliate Ant Financial Services Group that enables users to obtain special points that can be used to plant trees for the purpose of combating desertification, reducing air pollution, and protecting the environment if they take specific actions that reduce their carbon footprint, such as using public transportation or paying utility bills online, known as Ant Forest.

The Ant Forest platform team has also been exploring innovative solutions designed to alleviate poverty and improve people’s lives by leveraging the power of digital technology. As of August 2023, Ant Forest has planted 475 million trees and participated in the creation of 31 nature reserves in cooperation with over 20 charitable organisations and has supported ecological projects that have also involved the organisations as well as local governments in 22 of China’s provincial-level administrative areas, including Inner Mongolia Autonomous Region and Gansu Province. The various ecological public welfare projects that it has been involved with have created over 3.7 million opportunities for people to increase their incomes, such as planting, maintenance and ranger work.

Source:

AliResearch

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