11.03.2014 Views

beyond pt 0 23/1

beyond pt 0 23/1

beyond pt 0 23/1

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

E-commerce also provides opportunities for agribusinesses to purchase<br />

some farm inputs from overseas, which increases the range of services<br />

available and allows a better consideration of prices. In some cases,<br />

though, companies may prefer to purchase face-to-face, or at least have a<br />

firm guarantee of the product quality.<br />

To a large extent, opportunities to purchase or sell overseas will be<br />

limited by the ado<strong>pt</strong>ion of e-commerce by buyers and sellers in<br />

other countries.<br />

Key points<br />

Characteristics of the agriculture sector such as a high reliance on accurate<br />

information and large distances between producers and customers makes the sector<br />

conducive to the benefits of e-commerce. E-commerce provides additional<br />

opportunities to generate operational efficiencies such as obtaining better weather<br />

and stock information or bypassing intermediaries and locating cheaper inputs. It<br />

also allows agribusinesses to market products more effectively to wider audiences.<br />

Despite expectations of generally beneficial impacts there was limited information to<br />

factor in direct impacts of e-commerce on the agriculture sector suitable to include<br />

in the modelling work for this report. This was due mainly to the relatively small<br />

size (compared with say banking and finance, or communications) of agricultural<br />

e-commerce. It seems likely that much of the savings experienced by the agriculture<br />

sector will be due to efficiencies in other sectors from which it buys its inputs. It<br />

seems reasonable to factor in modest savings in retail and wholesale margins in the<br />

sector (i.e. reduced costs through some disintermediation) due to this factor.<br />

181

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!