Event Summary Blog
By Abdallah Tarek and Mariam Dawoud
Introduction:
To promote public private partnerships in the field of digital agriculture innovation, the International Food Policy Research Institute (IFPRI) funded by the USAID under the Evaluating Impact and Building Capacity (EIBC) project, partnered with an Egyptian local agri-tech startup called “Mahsoly” to launch a new price monitoring feature in Mahosly’ s mobile application, in a launch event held on 5 June 2024, in Cairo, Egypt. The launch event titled “Launch of Mahsoly: New Price Monitoring Tool for Smallholders” was attended by high level representatives from the Ministry of Agriculture, donor organizations, academic, researchers, and experts in the field of agriculture.
Over the past 4 years, IFPRI worked closely with Mahsoly to develop and customize this new price monitoring feature offers marketing and price information to farmers in Egypt. Both IFPRI and Mahsoly are keen on making this feature a a go-to resource for farmers to access timely and accurate data to make informed decisions when conducting agriculture business transaction.
Opening Remarks:
Dr. Clemens Breisinger, Regional Lead for North, Central, and South Africa, IFPRI commenced the event highlighting the importance of catering agriculture digital tools to farmer’s needs and their local context, particularly in settings where digital tools adoption amongst smallholder farmers remain low. Besides, Clemens elucidated that IFPRI, with support from USAID through EIBC Project, collaborated with the Ministry of Agriculture and Land Reclamation (MALR), to build and implement a new feature together with ‘Mahsoly’, the “price monitoring tool”. In efforts to equip farmers with information regarding the marketMahsoly, an agritech startup, has created a mobile application that serves 200,000 Egyptian farmers equipping them with market and price information to promote transparency and informed decision-making. Clemens highlighted that this project, supported by comprehensive research, aims to ensure the sustainable uptake of digital tools amongst smallholderfarmer, contributing to the overall transformation of smallholder agriculture in Egypt.
Dr. Sikandra Kurdi, Research Fellow and Country Program Leader of IFPRI Egypt, acknowledged that for the past decade, IFPRI has been supported by the USAID EIBC to work closely with the Egyptian government on agriculture and food security policy improvements. She reiterated IFPRI’s commitment to promote evidence-based policy approaches, done through collecting high-quality household survey data from thousands of farmers to understand their tradeoffs and decisions. IFPRI’s research helps identify policy gaps and improve agricultural efficiency. there is worth mentioning that IFPRI’s findings have been published in credible international journals to share insights globally. Additionally, she explained that IFPRI's research, driven by farmer feedback, supports solutions to agricultural challenges, enabling transparent discussions about crop pricing and decisions on planting and selling.
Dr. Mohamed El Kersh, Assistant Agriculture and Land Reclmation Minister andSupervisor of the Department of Digital Transformation, Ministry of Agricultura and Land Reclamation in Egypt, (MALR) applauded he efforts mobilized to design the application and its new feature possible. He also underscored USAID's significant investment in digital transformation, which, according to him, is a crucial pillar for advancing Egypt's agricultural sector. He emphasized that MALR recognizes the importance of collaborating with international organizations and the private sector and is actively seeking more similar partnerships. Furthermore, MALR encouraged the private sector and the adoption of various digital tools, especially the Mahsoly application. The collaboration extends beyond the launch event, as using new digital tools and technology is a key objective for MALR, said El Kersh.
Ms. Laura Gonzalez, USAID Economic Growth Office Director, gratitude shed light on the tireless efforts to launch the new feature of Mahsoly. Gonzalez stated that the US Government is proud to collaborated with IFPRI, MALR,and the Egyptian private sector. She accentuated USAID’s active collaboration with its Egyptian partners to support the digital transformation of the Egyptian agriculture sector, with a particular focus on sustainability, economic inclusion, and food security. She added that the Government of Egypt (GoE) is also investing in strategies to support farmers and increase food production, as well as improve the county’s self-sufficiency. Mahsoly mobile application is the latest milestone in a longstanding collaboration, between USAID, IFPRI, and the GoE. In order to maximize small farmers’ profit, the new feature helps farmers gain better reachability to a wider variety of trader markets allowing them to access timely and accurate market information. Stakeholders, in the agriculture field,from all over Egypt from farmers to scientists to policy makers will be able to use this accurate and timely information feature to monitor prices on the application.
Unveiling the Price Monitoring Tool:
Mr. Mohamed Mahmoud, Founder of the Mahsoly application, highlighted the critical collaboration Mahsouly has with IFPRI and USAID, which began in 2021, in developing the price monitoring tool. Mohamed also presented the application’s key features including immediate and free market access, daily crop price updates, and direct access to agricultural suppliers. He also noted that the application’s main user groups are farmers, traders, landlords, supply companies, and researchers.
Moving forward, Mohamed showcased a video featuring interviews with traders and farmers, demonstrating that Mahsoly is demand-driven application, addressing the primary issues faced by farmers. These issues include a lack of accurate price information, marketing challenges due to limited trader interactions, exploitation of prices by traders, and the need for a larger market. The video underscored how Mahsoly addresses these problems by providing accurate price information, expanding market access, and reducing dependency on a few traders. Besides, he demonstrated how the price monitoring feature works through an animation video that explains how to use the feature showing how farmers can input crop information and share prices. If the submitted price is verified as correct by the price engine, the farmer earns points that can be converted into rewards, added Mohamed. He continued to explain that after sharing their prices, farmers can view average prices for each crop in their area and nearby regions.
The Research Behind the Tool:
Mrs. Fatma Abdelaziz, Project Manager and Senior Research Associate, IFPRI, explained the important role of digital innovations in transforming smallholder agriculture in Egypt. Fatma elaborated that digital innovations could facilitate access to markets and smallholder commercialization through a number of following ways:
- Reduce communication and information costs,
- Improve farmers’ knowledge and know- how about market options and prices,
- Improve access to input and output markets, enable and build social networks and connections,
- Facilitate the delivery of other services associated with agricultural markets such as credits and finance,
- Improve management of input and output supply chains, and
- Increase communication linkages with other stakeholders involved in agricultural marketing.
Besides, Fatma tackled that the digital divide amongst smallholder farmers, including unequal access to smartphones, laptops, and the internet, which in turn hinders the profitability and efficiency of agribusinesses. Moreover, social barriers, such as farmers' reluctancy to trust application-based information, necessitate the need to ignite a cultural shift. Despite the potential benefits, there is a lack of empirical evidence on cost-effective strategies to improve the adoption and scalability of digital innovations in agriculture, mentioned Fatma. Therefore, the key research questions that helped in establishing this feature included identifying the most effective interventions for promoting digital tool adoption among smallholder farmers, the impact of digital literacy training, and how access to digital innovations can reduce dependence on intermediaries and improve market access. Fatma also noted that understanding the sources of variability in adoption and impact is also crucial.
A baseline survey conducted in Menia and Beni Suef through 30 farmer organizations revealed key insights into the digital landscape and challenges faced by smallholder farmers in Egypt. Smartphone ownership is higher among medium and large farm-holders (79%) compared to smallholders (64%), with medium and large farm-holders also having better internet access. Data also showed barriers to using mobile applications include digital illiteracy (52%), lack of smartphone access (49%), and unawareness of digital applications (54%). Farmers suggested support measures like digital literacy training (64%), internet bundles (29%), and video tutorials (20%) to improve adoption. The survey highlighted the need for innovative interventions to promote Mahsoly and suggests investments in digital infrastructure to enhance the uptake of digital agricultural tools. Future research aims to provide more conclusive evidence on the impacts of these innovations.
Ongoing Digital Transformation Efforts in Egypt’s Agriculture Sector:
Dr. Elkersh addressed the importance of ongoing digital transformation in Egypt's agricultural sector, including the work done by the Digital Transformation Unit (DTU) at MALR. The DTU is missioned to provide digital services that benefit its clients and offer research-based advice to support policymakers. This unit ensures a secure and prosperous food future for Egypt and beyond. Dr. Elkersh highlighted that digital transformation is of paramount importance to improving productivity and resilience in agriculture through several key areas:
- Enhancing Farmer Productivity,
- Monitoring Plant Health,
- Supporting Decision Makers,
- Promoting Rural Incomes, and
- Flexible Extension Services.
Dr. Elkersh underscored that the collaboration with private sector innovators, such as Mahsoly, and international organizations like IFPRI and USAID, is integral to the success of these digital transformation efforts. These partnerships are vital for developing and implementing innovative solutions that will drive the future of Egypt's agricultural sector.
Concluding Remarks:
The event was concluded with a question-and-answer session which provoked further discussion of various topics related to the tool. During the event's Q&A session, several key points were discussed regarding Mahsoly's operations and future plans. When asked about how Mahsoly plans to reach 500,000 users by the end of the year, Mohamed explained that Mahsoly acts as both a marketing agent and an agricultural tool. He emphasized the effectiveness and affordability of digital marketing, are the primary strategies to attract farmers. Regarding funding, Mohamed clarified that Mahsoly is a private company with a self-sustaining business model. The platform funds itself by taking a percentage of the sales from other firms’ products that are registered on the application, making it a financially viable entity without relying on external funding. The platform also aims to strengthen the role of local development communities and farmer organizations. By enhancing these connections, Mahsoly will help farmers increase their bargaining power, enabling them to negotiate better deals and improve their market presence. Finally, to facilitate the connection between farmers and traders, Mohamed highlighted the "nearby" feature of the application. This feature allows traders to open the application and see advertisements from farmers in their vicinity, enabling direct contact and efficient transactions for crop sales.
