DIGITAL marketplaces could have the biggest impact on Philippine agriculture in the coming years, but high technology costs, inadequate infrastructure and gaps in government support threaten to slow the sector’s digital transformation, a study by the Economic Research Institute for Asean and East Asia (Eria) found.
About 78 percent of agricultural stakeholders surveyed in the Philippines identified digital marketplaces and e-commerce as the technologies likely to have the greatest medium- to long-term impact on agriculture, ahead of drones, artificial intelligence (AI) and automation.
The findings suggest that improving farmers’ access to buyers and markets may be a more immediate priority than deploying sophisticated technologies, particularly as producers continue to grapple with production costs, limited digital skills and unreliable infrastructure.
The study, titled Towards Resilience and Sustainability: Bridging the Divide Between the Promise and Reality of Digitalisation in Philippine Agriculture and Food Systems, was written by Nerlita Manalili, Moises Dorado and Millicent Joyce Pangilinan as part of Eria’s regional research on agricultural digitalization.
It found that 81.44 percent of respondents wanted digital solutions to increase agricultural production and productivity, while 74.23 percent cited reducing production and operating costs as a priority.
Digital marketplaces could help connect producers more directly with buyers, improve price transparency and create additional sales opportunities. However, realizing these benefits would require supporting systems, including digital payments, logistics, cold storage and transparent trading standards.
The survey revealed a substantial gap between the use of basic digital services and more advanced technologies.
Farming advisory applications were the most widely used production-oriented digital tools, with 59.38 percent of surveyed farmers reporting their use. By comparison, only 4.69 percent used AI, while 6.25 percent reported using internet-connected sensors and another 6.25 percent used remote sensing tools. Robotics adoption stood at just 1.56 percent.
The contrast suggests that agricultural stakeholders are more receptive to accessible digital information services than to technologies requiring substantial upfront investment, specialized equipment or more complicated implementation.
Infrastructure remains another obstacle. The report identified inadequate digital connectivity, unreliable electricity and insufficient mechanization as constraints on wider technology adoption.
Skills shortages compound the problem. Six in 10 respondents identified a lack of digital skills or training at the farm level as a challenge, while 56 percent cited a shortage of agricultural extension workers and digital technology service providers with the necessary skills.
Policy uncertainty also threatens to discourage investment. About 61 percent of respondents cited limited policy instruments and inadequate frameworks supporting agricultural digitalization, while 55 percent pointed to inconsistent government strategies and frequent changes in agricultural policy. Among farmers, 64.06 percent identified inconsistent policies as a major barrier.
Although 84.85 percent of respondents expressed at least some agreement that existing government policies were beneficial, concerns remained over the consistency and adequacy of implementation.
The study recommended that the government prioritize developing a national agricultural e-commerce ecosystem, expanding rural broadband access, improving access to mechanization and strengthening digital training for agricultural extension workers.
It also called for a more predictable policy environment and stronger public-private partnerships to encourage investment in shared digital infrastructure, integrated services and affordable financing.
The study highlights a central challenge for agricultural digitalization: technology alone will not modernize the sector unless farmers and businesses can afford it, access the necessary infrastructure and skills and operate within a stable policy environment. / PHILEXPORT