Internet and e-Commerce Use by Agribusiness Firms: 2004
From Journal of Agribusiness - In 2001, the dot.com bubble burst and U.S. e-commerce growth slowed. Slower e-commerce growth may signal changes in the use and perceptions of the Internet and e-commerce in agribusiness companies. Agribusiness firm managers were surveyed in 2004 to identify agribusiness use of the Internet and e-commerce and to solicit their perceptions about the Internet and e-commerce. The survey was developed from a similar survey conducted in 1999. In 2004, agribusiness firms were using e-commerce more with their suppliers than with their customers. Perceptions regarding Internet and e-commerce varied by the intensity of e-commerce use. Given the variety of opinions regarding the Internet and e-commerce, e-commerce capabilities in the agribusiness industry will remain highly diverse in the near term.
In a market where customer service and positive interactions are of increasing importance, it is critical for agribusinesses to understand and adapt to these demands. Organizations tend to rely on “the way things have always been done” rather than assessing their customer service strategy and understanding how to reduce inefficiencies.
This paper, published in the 2019 Special Issue of the Economic Review, explores how the agricultural sector might bridge the gap between its current state, where commodity prices and revenue generally have been low, to a longer-term future with greater economic potential.
There is a lot of talk about “big data” in agriculture these days. The farm of the future is said to use multispectral imagery, soil and micro-climate sensors, equipment telematics data, and GPS to drive yield enhancing decisions. The growth of ag-tech startups suggests investors are optimistic about this future. Investment in the ag-tech sector grew 43% in 2018 to nearly $17 billion according to AgFunder News. Though the amount of data being collected from farms is growing rapidly, little is known about how farmers leverage this data to make decisions. According the USDA’s Agricultural Resource Management Survey (ARMS), 61% of corn growers used a yield monitor in 2010 but only 34% used the data to generate a yield map, indicating a disconnect between data collection and data action.