Readiness and Drivers of Intention to Adopt I4.0 Technologies for Smallholder Coffee Farmers in the Philippines

Abstract

In developed countries, the application of information and communications technology (ICT) have improved farm productivity, enhanced food systems efficiency, increase profitability of its users, and facilitated better flow of information, as well as access to extension and advisory services. The importance of these technologies becomes even more apparent when value chains are disrupted with food system shocks such as extreme weather events and pandemics. While benefits of these technologies are clear, there are issues particularly in terms of adoption among farmers and micro-, small- and medium enterprises (MSMEs) in developing countries. Innovation in the coffee sector is being pushed by the Philippine government through the promotion of I4.0 technologies. Hence, the main objective of this study is to assess the readiness of smallholder coffee farmers to adopt I4.0 technologies and identify the factors that drive their willingness to adopt the same technologies. To assess the readiness of smallholder coffee farmers, the proponents used the IMPULS Model, modified and contextualized to fit the Philippine coffee sector. This was used to assess the farmer as an individual enterprise and their readiness for technology adoption. Using a logit model, the study tries to measure the factors influencing the willingness to adopt I4.0 technologies for coffee farmers. Our I4.0 readiness assessment classified smallholder coffee farmers as newcomers. Logit model results revealed that volume of production and farmers’ regional location had a positive influence on adoption. This suggests highly productive farms of farmers in key coffee-producing regions positively influence the adoption of I4.0 technologies. The model also revealed farmers’ experience had a negative influence on their intention to adopt. The younger, less-experienced coffee farmer is more likely to adopt I4.0 technologies than older farmers. It is important to orient farmers about I4.0 technologies in the coffee sector through awareness campaigns that teach the use of available technologies and highlight the benefits important to farmers. Considering younger farmers in key coffee-producing regions will facilitate participation in these knowledge sharing activities and lead to higher rates of adoption.