Commodity Prices As Killer Mobile App Or Does Radio Do The Same Thing?

Cell Phone User In AfricaMore cell phones, better grain prices. This is a fairly important aspect of how mobile technology enables producers in developing countries to get a better deal for their products. And it makes perfect sense. I have also heard about this in relation to fish, and other commodities. In some, the fishermen in that case can check if the price is high enough to warrant them going out that day and potentially avoid lost productivity.


One other thing that I heard when I was working on a project in Honduras was that coffee prices are often broadcast over the radio, so at least the farmers know whether or not middlemen are taking advantage of them. This is similar in nature to the idea of sending commodity prices via cell, if a little bit more centralized. I am also assuming that it is similar to farm reports that you will hear in the United States as well.

I think the main advantage that mobile can offer is the ability for producers to scout different buyers and see if they can find a price difference between them. However, one can also expect that the buyers might also be in contact with each other(perhaps through an associate), at which point the differences in their prices would disappear. Which makes the effect of the technology basically the same.

In order to assess the final difference, one would have to measure how people use cell phones and radios(does more than one person use each device, etc.) differently and also the differences in price for operating as either the transmitter or the receiver. Also, cell phones do have alternate uses such as financial transactions, and the phenomenon of using cell phone minutes as currency.

However, it does seem that cell phones have indeed become vital in the developing world - for a variety of factors. It generally goes far beyond being aware of current commodity prices, so that is what takes mobile way beyond what radio can do. And they are very accessible. In that same rugged, remote part of Honduras a couple of guys did have cell phones, which they had to go to the top of a mountain to use - but it was obviously an important connection to the outside world.

So, in the end a lot of people do believe that cell phones are critical in developing economies. This McKinsey study goes into more detail about the effects that mobile networks can have on GDP.

5 Responses to “Commodity Prices As Killer Mobile App Or Does Radio Do The Same Thing?

  • 1
    synchrono.us » Blog Archive » Mobile Phones In Kerala
    February 12th, 2008 17:00

    […] Last week I discussed how mobile phones were being used by people in developing economies. Here is a link to a discussion of another study done on the same topic, in this case in Kerala, India: … the power the middleman holds over the fishermen due to the monopoly on price information has lessened somewhat. The free flow of information ensures the fishermen get the opportunity to drive a harder bargain than before. […]

  • 2
    sypegosedge
    December 19th, 2008 09:14

    Hello

    As a fresh synchrono.us user i just want to say hello to everyone else who uses this site B-)

  • 3
    issuenAsterty
    January 7th, 2009 08:03

    What is bumburbia?

  • 4
    osobo
    February 17th, 2009 23:06

    Новый способ давления на кандидата на пост Главы г. Химки

    Новый способ “наказать” тех, кто посмел участвовать в выборной кампании не на стороне действующей власти изобрели правоохранительные органы г.о. Химки.
    Руководствуясь не нормой закона, а чьей-то “волей” сотрудники милиции решили “проверить” все фирмы, внесшие денежные средства в избирательный фонд неудобных кандидатов.
    Начались “проверки” с телефонных звонков - где директор, сколько человек работает на фирме. После чего последовали “письма счастья” с просьбой предоставить всю бухгалтерскую документацию, учредительные документы фирмы, и даже, план экспликации БТИ.
    Такие запросы химкинским фирмам рассылает 1 отдел Оперативно-розыскной части № 9 Управления по налоговым преступлениям ГУВД Московской области за подписью начальника подполковника милиции Д.В. Языкова.
    И всё это в то время, когда Президент дал прямое указание правоохранительным органам о прекращении всех незаконных проверок малого и среднего бизнеса. С это целью внесены изменения в Федеральный закон “О милиции” - из статьи 11 этого закона исключены пункты 25 и 35, на основании которых ранее правоохранительные органы имели право проверять финансово-хозяйственную деятельность предприятий.
    Видно, об изменениях действующего законодательства местные правоохранительные органы не уведомлены. И не смотрят телепередачи с выступлениями Президента.
    Может быть, эта публикация подвигнет их к исполнению указаний Президента, а также к изучению и соблюдению действующего законодательства

  • 5
    Headdygep
    April 18th, 2009 17:12

    Hey, just i just wanted to remind, tha global I4oTuFskPCc4 is near.

Leave a Reply