Digital platforms in the agricultural sector: Dynamics of oligopolistic platformisation
Abstract
Introduction
Theory and analytical framework
| Platform mechanism | Platformisation according to Van Dijck et al. (2018) | Oligopolistic platformisation | |
|---|---|---|---|
| Sectoral platforms (agribusinesses) | Infrastructural platforms (Big Tech) | ||
| Structural and organisational changes | New entrants (e.g. Uber) disrupt traditional industries (e.g. urban transportation) and dominate through winner-takes-all dynamics. Platforms become central organisational structures, often leading to market consolidation around a single dominant player. | Incumbent agribusinesses extend their oligopolistic positions by integrating digital platforms. This results in multiple platform ecosystems, each controlled by different incumbents, rather than a single dominant platform, leading to fragmentation. | Big Tech gains relevance in the ag sector by providing essential infrastructure (e.g. cloud computing, AI) but to date, it has not directly disrupted agribusiness incumbents. Their platforms serve as back-end solutions, supporting data analytics and algorithmic processes that reinforce the oligopolistic nature of the sector. |
| Datafication | Data from user interactions and processes is captured by a single sectoral platform, creating closed data ecosystems. | Agribusinesses collect farm-specific data to optimise input usage and farming operations. Data is partially shared across sectoral platforms, but fragmentation persists as incumbent agribusinesses maintain control over their respective ecosystems, leading to siloed data systems (Figure 1). | Big Tech companies store and process vast amounts of ag data from various sources. They provide advanced analytics and data storage solutions to sectoral platforms, acting as the central hubs for data integration across the ag sector. |
| Selection | Platforms use algorithms to replace expert-based selection with user-driven and data-driven selection, optimising content and services delivered based on user preferences. | Agribusinesses use algorithmic selection to optimise content and service recommendations, often prioritising their products and services, which can create information asymmetries. Additionally, incompatible data formats lead to vendor lock-ins, consolidating market power and limiting choices for farmers. | Big Tech supplies the algorithms, machine learning models and analytics tools used by sectoral platforms to enhance predictive models and optimise farming decisions. Their technology underpins the agribusinesses’ control over recommendations and content delivery. |
| Commodification | Solutions (products, services and product-service combinations) based on user data and data analytics are commodified generating revenue. | Agribusinesses commodify user data by integrating it with traditional products (e.g. seeds, agrochemicals, machinery) to create digital solution packages that reinforce core business activities to strengthen market dominance. These packages include crop management services, multisided markets, product-as-a-service models and carbon monitoring tools. Most sectoral platforms remain in the investment phase, cross-funded by agribusinesses’ core businesses to stay competitive until profitability is reached. | Big Tech commodifies ag data indirectly by offering infrastructure, essential cloud computing and data analytics services to agribusinesses, startups and public institutions. Platforms (e.g. AWS, Microsoft Azure, Google Cloud) scale digital agriculture infrastructure and benefit from network effects. Big Tech provides the backbone for data processing, AI development and predictive analytics but does not directly control or access the content of the agribusiness data. |
Methodology


Platformisation of the ag sector: an emerging ag-Big Tech complex
Datafication
Data capturing
Data circulation
Selection
Commodification
Commodification of ag data by infrastructural ag platforms
Commodification strategies by sectoral ag platforms
These solutions-oriented approaches help mitigate the impact of patent expirations by enhancing the value and differentiation of off-patent products through integrated, data-driven services resulting in complete crop management offerings. In regions with stringent environmental regulations, these digital solutions allow companies to defend their business by promoting practices that reduce the use of agrochemicals thereby adhering to sustainability standards. This evolution towards a solution-based model, leveraging the convergence of digital agriculture and traditional inputs, will potentially transform the agricultural input industry profoundly (Independent Agribusiness Consultant, 2022).
Discussion
Conclusion and outlook
Acknowledgments
Data availability
Declaration of conflicting interests
Funding
ORCID iDs
Footnotes
References
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