Pinduoduo is reshaping small farm supply chains in technology for Agri Push

Before agricultural e-commerce took hold, peach farmers in Li Yang Village had to wait each summer for wholesale buyers to drive around the rural outskirts of Beijing and buy their harvests. Farmers had no visibility into consumer demand and had little choice but to accept the prices offered by wholesalers.

Although their village was renowned for producing top-quality peaches, farmers sometimes sold their fruit for as little as 10 cents per kilogram when times were tough. They usually earned a few hundred dollars a year for their work.

Things started to look up after a local village official encouraged the villagers to form an agricultural cooperative and started marketing their peaches on Pinduoduo’s agricultural e-commerce platform in 2019. Consumers quickly recognized the quality of their peaches, and the cooperative quickly topped Pinduoduo’s quality ranking, ensuring an ever-increasing order flow. The cooperative has also participated in various Pinduoduo promotions and marketing campaigns to promote local agricultural specialties to its more than 800 million active consumers.

Li Yang Village is an example of traditional agricultural producers who have benefited from the adoption of agricultural e-commerce and participation in the digital economy. Across China, hundreds of villages renowned for their local delicacies, from peaches to avocados to ham, are discovering the reach of platforms like Pinduoduo to bring new customers to their products.

Founded in 2015, Pinduoduo operates a digital platform connecting millions of farmers and consumers and has been dedicated to using technology to bring positive change to the age-old agricultural sector. The company’s “Tech for Agri” approach focuses on increasing market accessibility, improving digital inclusion and literacy, and promoting innovation as enablers keys to the modernization of agriculture.

Pinduoduo is the first major Internet company to use its e-commerce platform to improve the efficiency of transporting agricultural products from rural areas to cities. By giving farmers direct access to buyers, Pinduoduo has given agricultural producers a viable alternative to selling to wholesalers for the very first time.

The company estimated that it was able to reduce distribution costs by 40% by reducing the number of middlemen between farm and table. More than 16 million farmers have connected to the digital economy through Pinduoduo.

The direct link between farmer and consumer has benefits beyond increased sales. Farmers get immediate consumer feedback on their products through e-commerce. Consumers also benefit from increased transparency and can interact with farmers through the platform.

For Li Yang Village, increased income from agricultural e-commerce and consumer interaction has enabled farmers to expand their agricultural businesses.

Based on customer feedback, the co-op worked to improve the sweetness and mouthfeel of its peaches. They have developed new varieties to meet consumer tastes. The cooperative has also developed varieties of sweet corn and cultivated mushrooms after spotting market opportunities, creating additional sources of income for the village.

By reducing the number of intermediaries that stand between the producer and the consumer, digital platforms like Pinduoduo have helped reduce costs, improve transparency and efficiency, and contribute to increased incomes for smallholders. agricultural.

About Keneth T. Graves

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