Digital platforms in the agricultural sector: Dynamics of oligopolistic platformisation

This paper introduces the concept of ‘oligopolistic platformisation’ to capture the specific dynamics of collaboration and competition between multinational upstream agribusinesses and Big Tech companies in the agricultural (ag) sector. We examine this phenomenon through the lens of Van Dijck et al.’s platform mechanisms: datafication, selection and commodification. Multinational agribusinesses operate sectoral ag platforms that analyse spatial, weather and agronomic data to optimise farming operations, whilst Big Tech companies provide the digital infrastructure, including cloud computing, data analytics and artificial intelligence. We explore how these pre-existing oligopolistic market structures influence the process and outcomes of platformisation in the ag sector. Using expert interviews, field observations, economic relationship mapping and an extensive literature review, we investigate relationships amongst multinational agribusinesses and between agribusinesses and Big Tech companies. Our findings reveal that Big Tech and multinational agribusinesses are collaboratively establishing digital platforms as the core organisational form of digital agriculture, aiming to consolidate most services. This collaboration blurs the lines between traditionally distinct industries, fostering overlapping ecosystems and mutually beneficial economic relationships in an already highly concentrated market. This dynamic has the potential to reinforce the market position of established companies, increase farmers’ dependency on agribusinesses and contribute to fragmented and siloed data systems.