Empowering consumers and smallholders with technology
Reducing these kinds of disparities is central to our work. As I noted above, one way to achieve this is by humanising value chains – connecting consumers with the people who work hard to produce the chocolate bars, lattes and t-shirts they take for granted. Increasingly consumers want to buy products that are produced sustainably from both an environmental and social perspective, this includes paying people fairly.
Rapidly developing technologies such as blockchain and AI have a key part to play by channeling more of the money we pay for products and services to reach smallholder farmers and workers. Digital traceability tools equip consumers with knowledge about the origins of products, who made them and how. The same technology could also give consumers the option to tip farmers, just as they tip delivery workers, cab drivers and waiters7.
Clear guardrails need to be set to ensure the money reaches farmers and support provided to help them manage it effectively and safely. If harnessed effectively, technology has the power to create an emotional and financial connection between consumers and famers on different sides of the world, enabling consumers to invest directly in boosting the livelihoods of impoverished smallholders.
Leading brands have a crucial role. By adopting technological advances and prioritising the farmers they rely on, they can provide value-chain insights to consumers while protecting farmers from the whims of the market.
Farmers are in a uniquely vulnerable position in the value chain. They do not determine the price of their goods and have little power to adjust it if their costs of production rise or their harvest falters. Conversely, if a trader suddenly increases their wholesale price, the retailer has the option to raise menu or item prices. If a brand is told by their importer to expect a cost increase, the brand has the option to raise prices for their wholesale customers.
Alongside providing traceability and value chain insights for brands, smart tools can help farmers minimise costs, enhance production processes, predict yields and prepare for approaching challenges, which also strengthens their position when it comes to negotiating prices.
We are at a pivotal moment, as advancing tech capabilities converge with an increasingly influential conscious consumer market. Bringing these elements together has the potential to unlock significant benefits for smallholder farmers and workers.
For more ethically-minded younger generations, habits such as digital tipping are already a part of life, extending this to farmers/workers in an accountable and transparent way isn’t a huge leap for them. The financial firepower of millennials and gen Z is also set to grow substantially8 as baby boomer wealth is passed on, which means they’ll have greater resources to contribute to ethical and sustainable value chains.
Beyond the financial benefits for smallholders, technology also supports human connections. When consumers can see who is toiling to grow the crops that go into their morning coffees and afternoon snacks, they are more likely to make buying decisions and support initiatives that benefit those people.
