Sauvagerd, M., Mayer, M., & Hartmann, M. (2024). Digital platforms in the agricultural sector: Dynamics of oligopolistic platformisation. Big Data & Society, 11(4). https://doi.org/10.1177/20539517241306365
The agricultural sector is undergoing a profound digital transformation. Unlike other industries where new entrants disrupt existing markets, agriculture presents a unique phenomenon which we term “oligopolistic platformization.” Here, multinational upstream agribusinesses like John Deere and Bayer collaborate with Big Tech giants such as Microsoft, Amazon, and Google to integrate digital tools into farming while consolidating their market dominance.
Agribusinesses have developed sectoral platforms offering specialized solutions like real-time field monitoring, weather analytics, and precision farming. These platforms often create “digital twins” of farms, seamlessly integrating data sources such as spatial, climatic, and machine-generated inputs. Big Tech, in turn, provides critical infrastructure – AI, cloud computing, and data analytics – that powers the scalability and innovation of these platforms.
However, this transformation comes with complexities. At the heart of the shift lies datafication (turning farm activities into actionable data), selection (deciding what data is shared and with whom), and commodification (monetizing insights derived from this data). While these processes generate value, they also consolidate power among a few key players, potentially marginalizing smaller startups and reducing farmers’ autonomy.
Our visualization maps out the economic collaborations between Big Tech, agribusinesses, startups, and public institutions to reveal the industry’s reliance on a small number of tech giants for digital infrastructure, underscoring the growing consolidation in this space. Major agribusinesses like John Deere, Syngenta, and BASF have formed partnerships with these infrastructure providers, increasingly blurring boundaries between seeds, agrochemicals, biotechnology, and digital agriculture.*
As digital platforms become integral to agriculture, it is critical to address issues such as power asymmetries, opportunities for smaller players, and equitable data-sharing. Future research should examine the evolving dynamics of oligopolistic platformization under regulations like the EU Data Act, which mandates data access and interoperability.
* While not fully comprehensive, the visualization represents an overall picture of the economic relationships within the industry.