Rural Digital Transformation

Over 2000 producers live in rural zones in Esmeraldas and Manabí provinces. Their income is low because of local market conditions, middlemen, and low social organization, meaning that they sell their produce at low prices, and the products’ quality is not recognized. Further, they have difficulty accessing markets, information, and training that would enable them to develop competitive products; and to reach clients who prefer quality, traceability, and fair treatment.

Developing a digital marketing platform will enable small-scale producers to connect with clients who are willing to pay prices that recognize quality and traceability. Small-scale producers will have access to information and training to improve their products and become competitive, get to know new markets (digitally), and reach sales agreements with buyers. They will also receive mentoring about delivering to their customers and following up to collect their payment, and acquire digital and financial competencies.

In Ecuador, over 2000 farmers, in various value chains, such as cacao, coffee and quinoa, among others, have no direct access to a market where they can promote their goods and reach concrete sales agreements with local and international buyers who will pay premium prices for product quality and traceability.

Limited access to  market opportunities, and middlemen who take advantage of this context to pay low prices, undermine small farmers’ livelihoods. They need digital tools to orient and facilitate associative marketing, with clients interested in produce with social development. These factors will be incorporated into developing solutions. In the current context, a number of small-farmer organizations’ contracts have been suspended by their customers, while others have been unable to associate in order to more effectively sell their produce locally and internationally. They don’t have the partners, companies, or allies they need to give priority to human development as the foundation for sustainability in their economic, social, and environmental progress. Small-scale producers’ livelihoods have been undermined, and their poverty has worsened.

Our proposal is to reactivate small producers’ commerce locally, nationally, and internationally, by implementing digital tools to help them access information, training, and market opportunities, without jeopardizing their own health or their clients’ health. This will also narrow the existing digital divide, resolving their limitations on access to information and communication technologies by developing digital capacities and abilities with small-scale producers and their organizations, to build: i) communication channels with external stakeholders to provide assistance, training, and support for human and organizational development; ii) promotion of products and services, by digital marketing platforms and shorter marketing chains, giving priority to digital marketing strategies in order to establish B2B or B2C business relationships; and, iii) improved organizational management, enabling communication with members, access to timely information for gathering produce and buying / selling, traceability, social services, and instruments for administrative management. They will also diversify their product sales.

A Web platform will be used, with several modules for events, commercial arrangements, training, and information. This will make it easy for farmers to promote their produce and interact with clients.

The target population to implement the pilot are three organizations of small farmers in the province of Esmeraldas, one organization in Manabí and one organization in Chimborazo. Once the pilot has been evaluated, organizations in Carchi and Napo provinces will be added. These farmers are scattered throughout rural areas, growing with agroforestry systems, selling bulk coffee and Andean grains (quinoa). They farm using agroforestry systems that maintain a balance with the environment, with priority for combining crops to feed their families and cash crops for sale. These farms are no larger than 4-5 hectares each.

FECD has worked with these farmers for over five years, building their organizational and commercial aspects, with priority for human development as the foundation for lasting success. This proposal has been discussed with these organizations, where digital transformation is a priority for market development.

The overall dynamics are based on digital transformation to develop farmers’ livelihoods and trade. The proposal will implement digital transformation in farmer organizations so they can use the platform to access markets.

Our proposal aligns with the Sustainable Food System challenge, striving to: i) strengthen agriculture through technological solutions; ii) enhance small farmers’ capacities in a changing, technology-based environment; and, iii) provide a tool or business model that transforms the traditional way of doing business that small farmers and their organizations have been using.

Despite current conditions under the Covid-19 pandemic, this will reactivate small farmers’ trade, by providing them with tools for training and developing digital skills

Currently, the competitors are intermediaries and national and international companies that constantly change market conditions, pay low prices and sometimes monopolize the market. However, the proposed solution is aimed at promoting the products of small producers and direct connection with international clients for commercial agreements. In addition, producers can access information, training and advice throughout the business, promotion and marketing process. The fundamental difference is the proposal's social approach to promote digital commerce with a fair price and treatment.

Associative marketing allows producers to unite and position their product in the international market, with more accessible digital tools that allow them to develop digital capabilities and reduce the digital gap that currently exists.

Currently, the competitors are intermediaries and national and international companies that constantly change market conditions, pay low prices and sometimes monopolize the market. However, the proposed solution is aimed at promoting the products of small producers and direct connection with international clients for commercial agreements. In addition, producers can access information, training and advice throughout the business, promotion and marketing process. The fundamental difference is the proposal's social approach to promote digital commerce with a fair price and treatment.

Associative marketing allows producers to unite and position their product in the international market, with more accessible
digital tools that allow them to develop digital capabilities and reduce the
digital gap that currently exists.

It is a solution of a new business model with a social orientation, it is based on the digital transformation of the way of marketing that small producers have. The digital commerce platform promotes the association of small producers, their organization and the strengthening of their organizations.

The digital platform will have modules that allow information to be stored according to the interests of small producers.

Digital commerce platforms and e-commers have been developed, for example, platforms such as Amazon, Alibaba, among others, the promotion and sale of various products allows the market to be broad, with greater possibility of growth and contact with customers in a way virtual.

The difference with these platforms is oriented in the approach of privileging the products of small producers that are elaborated with quality processes and due to various factors, fail to insert themselves in national and international markets.

The solution will allow small producers to promote their products in a simpler way, by contacting customers who privilege the products of small producers. It will improve family incomes and allow producers and associations to develop digital skills, master the use of tools to improve their knowledge and access fair markets.

The solution includes the participation of associations from the provinces of Esmeraldas, Manabí and Chimborazo, promoting the sale of products in bulk and made from cocoa and quinoa. The platform will be designed with training, trading and consulting modules. Producers will be trained in digital issues and advice on market tactics that will allow them to have competitive products.

Currently, we work with 600 families on the Ecuadorian coast, over the course of a year the number of families will increase to 2,000 participating families that will market their products through promotion on the platform. In addition, these families will be trained in digital tools that allow them to innovate their relationship and way of doing business.

With the use of the platform, access will be made through an app or web portal, allowing producers to connect from anywhere, in the same way customers interested in a fair market, with a social approach, will connect. With the ease of access to training, advice, and the digital market, there is no limit to the number of producers that agree to promote their products and enter into commercial agreements. This allows the model to be replicable anywhere, since producers can access the platform and manage their sales, train from anywhere in the world and contact customers anywhere in the world.

The main barrier is financial for the development of the application and the web portal, however, the FECD promotes several activities that allow the technical development of the producers.

Resources will be channeled with a donor recruitment model, which will make it possible to attract resources geared towards the development and implementation of this alternative. In addition, the FECD will contribute with resources that allow sustainability.

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The work team is made up of 6 people in technology, social projects, market and administrative-financial areas.

The team has more than 20 years of experience in issues of social development, market and value chain development. In addition, it has a specialist in technological issues and markets. The team has worked on projects to strengthen production chains such as cocoa, quinoa, coffee, and Andean grains. It has fostered the technical development of small producers and managed traditional market access for their products. There is a Business Specialist Coordinator, a Social Development Specialist, a Market Specialist, a Technology Specialist and a Financial Specialist.

Currently, we have partnerships with international organizations that manage development, market and gender equity actions. In addition, an alliance with an international instance of certification of agricultural products. The FECD is a partner in a trading company that seeks market opportunities for small producers.

FECD is a non-profit institution whose mission is to improve the living conditions of vulnerable groups in Ecuador. Its lines of action are oriented to: i) development of production chains through projects financed by donors; ii) development of specific actions that strengthen the management and conditions of social groups, by attracting resources through digital tools; iii) access to special markets with fair prices and treatment; and, iv) enhance the quality of products and services.

The FECD's digital transformation process is aimed at: i) supporting the connectivity of rural communities; ii) promote digital literacy; and, iii) develop and / or bring platforms and Apps to access training and electronic commerce.

The barriers that can be solved are strengthening food systems in a sustainable way, with the digital commerce platform, producers position their products to customers in various parts, and the products are available. This drives a new business model that is based on social benefit.

We are looking for partners that allow us to perfect the business models of the initiative and the process of attracting resources through digital means, with the aim of structuring new initiatives on other topics that allow us to face the challenges of MIT and improve the living conditions of vulnerable groups.

Stakeholders are trading companies, importers, advisers, and advisory companies that complement work and expand opportunities for small producers. The digital transformation processes, although carried out years ago, is only now that it is a major requirement in business development, especially in the process of facing the crisis caused by Covid-19.

The project seeks to promote the participation of women, especially from rural areas, in business processes. Fostering a more active role in the development of their communities and families. In Ecuador, women have not had a role that allows their full development in the professional and personal sphere. Limited from accessing training and entrepreneurship, women could now change their lives and assume more active leadership.