The current issue and full text archive of this journal is available on Emerald Insight at:

https://www.emerald.com/insight/1755-4195.htm

Agri-food
COVID-19, local food system sector
and digitalisation of the
agri-food sector
Siti Fatimahwati Pehin Dato Musa, Mohd Hairul Azrin Haji Besar 125
and Muhammad Anshari
Received 16 April 2022
UBD School of Business and Economics, Universiti Brunei Darussalam, Revised 3 August 2022
Gadong, Brunei Darussalam Accepted 3 October 2022

Abstract
Purpose – This paper aims to evaluate the responses taken during the pandemic of COVID-19 in sustaining
agricultural activities and safeguarding local food supply via digital platforms by applying the case study
method.
Design/methodology/approach – This paper uses a case study approach due to its systematic way of
collecting data, analysing information and reporting results to understand the particular problem. For this
study, secondary data consisting of government reports and documents are used to give a broader
understanding of the impact of COVID-19 on the local food system and digital platform for agricultural
produce.
Findings – The impact of COVID-19 on the agri-food sector is the move towards a more resilient and
sustainable local food system, whereby nations emphasise food security by encouraging local food
production. This is done by boosting micro, small and medium enterprises’ (MSME) output, “supporting
local” initiatives and leveraging digital platforms and FinTech in business transactions.
Research limitations/implications – This study highlights that MSMEs’ adoption of digital
platforms, particularly in the agri-food sector, demonstrates their willingness to embrace new business
models that leverage technological advancements while maintaining the personal touch that attracts
customers.
Practical implications – This study implies that although the pandemic outbreak created prolonged
uncertainties with an immediate impact on the economy and ways of doing business transactions, digital
platforms and FinTech ensured continuous food supply during the period.
Originality/value – This paper provides initial valuable insight to academics, practitioners and
policymakers in agriculture and innovation management. It can be observed that digital platform and
FinTech plays an essential role in ensuring safety and undisrupted food supply, especially in the case of
fresh produce grown by local small-scale farmers and MSMEs. This creates a more resilient agri-food
system and reduces the pressure from the conventional model of food purchase and social distancing
requirements.

Keywords Food localism, Digital platform, e-Commerce, FinTech, Agriculture, Food security
Paper type Research paper

1. Introduction
COVID-19-containing measures such as lockdowns and movement restriction orders have
disrupted the food supply, especially for fresh and perishable food products. The ongoing Journal of Indian Business
Research
COVID-19 pandemic has deprived millions of daily-waged workers of their ability to Vol. 15 No. 1, 2023
pp. 125-140
purchase food in Asia, with an estimated 109–167 million falling into unemployment © Emerald Publishing Limited
1755-4195
regionally and 140 million falling into extreme poverty globally (ILO, 2020). It is anticipated DOI 10.1108/JIBR-04-2022-0103
JIBR that there will be increased hunger and malnutrition in many developing countries (The
15,1 World Bank, 2021).
The vulnerability of countries to this food supply disruption depends on the extent of
their import dependence for their consumption requirements. In the case of cereals which
make up the majority of calorie consumption, the most vulnerable countries in Southeast
Asia, based on the United Nations Food and Agriculture Organization data (2011–13), are
126 Singapore (100% dependence) and Brunei (100% dependence), followed by Malaysia
(72.6%) and to a smaller extent, Indonesia (15.4%), the Philippines (17.8%) and Timor-Leste
(15.7%) (FAO, 2020a). This paper aims to evaluate the responses Brunei has taken during
the pandemic of COVID-19 to safeguard food supply and draw lessons on the way forward
in building more resilient and sustainable local food systems to ensure that food security
remains a top priority to protect against supply disruptions and price volatility.
Among the implications of COVID-19 on the agri-food sector is the move towards a more
resilient food system whereby nations put more emphasis on their local food production and
an increase in digitalisation and Fintech in business transactions. The COVID-19 pandemic
saw an emerging movement towards a local food production model due to the advantages
over traditional extended supply networks. Shorter supply chains and locally produced
fresh food could play essential roles in enhancing the resilience of local food systems. The
pandemic has accelerated the development and rollout of the technological platform to
enable digital transactions in sustaining commercial activities, food supply chains and
agricultural services (Mention, 2019). Actors in the food chain, such as farmers and
wholesalers, have transformed into online platforms. In contrast, consumers prefer to order
fresh food online due to movement restrictions, where people are required to reduce physical
contact to prevent and control infection. This paper observes that for the situation of Brunei,
digital platforms eliminated the role of costly intermediaries and allowed small-scale
farmers and agribusinesses to continue their business as usual during the pandemic and
further enhanced the local food system.
This paper is organised as follows. Section 2 describes the background of agriculture and
e-commerce in Brunei, followed by the literature review on local food production and digital
platform in Section 3. Section 4 provides the methodology used for this study, Section 5
presents and discusses the relevant findings and Section 6 provides some implications for
research and practice. Finally, Section 7 concludes.

2. Background of Brunei
Brunei is a small oil and gas exporting country in Southeast Asia and generates most of its
revenues from the production and export of oil and gas. It is also among the world’s most
dependent economies on oil and gas, accounting for 60% of the nominal gross domestic
product (GDP) and 90% of export revenue (Department of Economic Planning and
Statistics, 2020). The agriculture sector in the country still lags and contributed 4.9% to the
country’s GDP in 2019 (Department of Agriculture and Agri-Food, 2019). Brunei currently
imports 80% of its food supplies and is refocusing on agriculture to increase agricultural
production and prioritise food security (Department of Agriculture and Agri-Food, 2019).
The Economist Intelligence Unit Global Food Security Index data show a strong
correlation between a country’s food security and GDP per capita [Independent
Evaluation Group (IEG), 2014]. But all this applies only when circumstances are
“normal”, and there are no disruptions to imports and supply chains. The issue of food
security was particularly pronounced when supply chains were paralysed for some time
due to limitations posed by COVID-19. Panic buying was observed locally in the early
days of the pandemic, soon after the first few cases of COVID-19 were reported in Brunei Agri-food
(Musa and Basir, 2021a). sector
The COVID-19 pandemic has resulted in an upsurge in the prices of necessities and food
caused by shortages from disrupted global supply chains and production. Brunei was
particularly affected, considering its heavy reliance on imports of food. Pandemic-induced
supply disruptions and shortages have pushed inflation to historically high levels of 1 to
2.5% since January 2020, compared to the average of 0.3% from 2000 to 2019 (CSPS, 2021).
In 2021, there were notable price hikes in Brunei’s vegetables, oils and meat products. Prices 127
of vegetables and meat climbed 24% and 18%, respectively, due to limited supply from
exporting countries.
According to the Brunei Department of Economic Planning and Statistics, price increases
in food essentials are attributable to increased logistics costs due to disruptions to global
supply chains amidst the ongoing COVID-19 pandemic; unstable weather conditions which
affect production; limited range of commodities (alternative options) and increased local
consumption due to travel restrictions (Norjidi, 2022).
Due to movement restrictions, micro, small and medium enterprises (MSMEs) were more
at risk of adverse effects regarding their supply chain, labour supply and final demand for
goods and services than larger enterprises. A survey by The Asia Foundation in March 2021
found that two-thirds (66%) of MSMEs reported significant challenges with financial
management, 54% had trouble with daily operations, and another 32% had difficulties with
staffing (The Asia Foundation, 2021). The supply chain and logistic issues inescapably led
to abrupt disruption of delivery of products within and outside the country, restrictions on
international trips, the vacuity of certain services needed for operating and restrictions on
the original movement of goods.
In addition to disruptions in the food supply, the pandemic has brought new norms. At
the early outset of the outbreak, dining eateries were ordered to be closed and social
distancing was encouraged to curtail the spread of the virus. The pandemic has also resulted
in several MSMEs closing down as they are heavily burdened with fixed costs. On the
positive side, the country has also seen the rise of online vendors introducing new business
models through social media and digital platforms.
On the other hand, the household survey conducted by the Authority for Info-
communication and Technology Industry (AITI), Brunei, shows that the population is active
in their digital information consumption, whereby 95% of the survey participants access the
internet daily. Among the activities subscribed by internet users, 36% of the respondent
claims that they access the net for online shopping, whereas 71% access social media
applications (Othman, 2020). The availability of an online payment system accessible to the
masses from an online payment portal, clearing platform, online banking and mobile
banking further facilitates the participation of the MSMEs and customers.
Brunei has developed its Digital Economy Masterplan, which includes the agri-food
sector as part of the identified cluster under the plan. Part of the digitalisation activities in
this cluster is the introduction of the Internet of Things (IoT) in farming and smart farming,
where data and analytics are used to enhance farming methods and food production. This
emphasises the importance of strengthening the digital platform, whereby success will
depend on several factors. The digital platform currently exists in different forms (Ndou
et al., 2009), either housed under a common platform or owned by social media platforms
such as telegram, Instagram and individual companies’ websites.
Although the digital platform provides easy access and convenience between suppliers,
businesses and customers, based on the AITI ICT Business report 2019, several challenges
are still to be overcome in Brunei. The report highlighted that most companies are more
JIBR comfortable with cash on delivery and not through online payment (Othman, 2020). It is also
15,1 seen that the quality of internet access from the business point of view needs to be improved,
with 36% of the business lamenting that the cost of internet access is expensive. E-
commerce activities (online order receiving and completed through online payment) are still
at 11% in the country. Among the barriers to fully using the digital platform and
participation in the digital marketplace is the lack of human resources knowledge in ICT
128 and the high cost of providing services online. However, the rise of social media usage by
MSMEs in Brunei, which is reported at more than 50%, is encouraging as the cost is
relatively inexpensive, though they have to invest in knowledge in technology and time to
manage the data and information generated.

3. Literature review
3.1 The concept of local food system
The COVID-19 pandemic saw growing attention towards local food production models,
given their advantages over traditional long supply channels. The shorter supply chains
and locally produced fresh food play a vital role in enhancing the resilience of local food
systems (Guo et al., 2021). Since the pandemic outbreak, there has been a positive move
towards food localism. For example, in the UK, studies have shown that there has been an
increase in food purchases closer to home due to restrictions on mobility leading to a rise in
local food retailing (Palau-Saumell et al., 2021).
Palau-Saumell et al. (2021) found that in Spain, consumers prefer fresh, local products
and in situations of uncertainty, consumers are more likely to support locally produced food
due to the shorter food supply chain (SFSC). One of his study’s implications was the
importance of facilitating the direct relationship between local producers and consumers in
large cities to diversify their market segments. One example of the initiatives that he
recommended was the use of online platforms whereby a market of supply and demand can
be determined and the setting up of logistics systems that allow the daily delivery of fresh
products and ensure the availability of the product at the points of sale and for home
delivery.
A local food system is defined as “foods that are produced, processed and retailed within
a defined geographical area” where “the local is understood about larger geographical
scales, such as the regional, national or global” and is usually subjective depending on the
context for example density of populations, accessibility and rural or urban character for
any purpose (Stein and Santini, 2021). This means “local” is “the smallest unit used to
describe the origin of food”, and a consumer is at least “personally familiar with the place
where the food is produced” and “would recognise a difference between the terms “local”
and “regional” when describing the origin of food” (Stein and Santini, 2021).
The definition of a local food system, therefore, includes spatial distances and personal
relationships between the various stages of the food supply chain as well as restrictions to a
geographic region in which all activities of the food supply chain – from agricultural food
production to consumption – are located within the same geographic region. This includes
sourcing agricultural raw material inputs, likely reducing the intermediary stages in the
food supply chain between agricultural food production and consumption. Promoting the
local food system aims to create more direct links between producers and consumers, aiding
sustainability through shorter distances, fewer intermediaries and less industrial processing
(Pole and Gray, 2013). Local food production generates and supports employment,
revitalises local livelihoods, strengthens regional economies and enhances cultural heritage
(Hinrichs, 2003) . Food localism induces increased awareness of “supporting local small-
holding farmers and developing community-supported agriculture” (Chan, 2016, p. 314). For
instance, local food producers are now refocusing their product distributions to hundreds of Agri-food
retail outlets nationwide to fill the import-export food demand gap caused by global supply sector
chain disruptions and logistical limitations during the pandemic (Wong, 2020).
Chan uses the term “food localism” to “demarcate the public discourse that stresses an
awareness of locally and ecologically produced food, which signified better food quality.”
The trends include “eating local food, supporting local small-holding farmers and
developing community-supported agriculture to grow food ecologically” (2016, pp. 313–314).
Among the advantages of promoting food localism is that it enhances environmental 129
sustainability in two main areas: traceability and the ability to reduce food miles. Catalysed
by issues concerning health hazards and foodborne illness pathogens in food supply chains,
traceability is referred to by Opara and Mazaud as:
[. . .] collection, documentation, maintenance and application of information related to all
processes in the supply chain in a manner that provides a guarantee to the consumer on the origin
and life history of a product, (2001, p. 243).
Traceability ensures the safety of the food by being transparent about the production
origins or processes, but it is not simply providing valid data to the consumers. Consumers
must know where their food comes from and, more precisely, “the ability to identify the farm
where it was grown and sources of input materials” (Opara and Mazaud, 2001, p. 243).
Traceability from the farm to the consumers establishes a linkage of knowledge between the
two parties. Consumers are aware of the food and its agricultural details, which validates the
local farmers’ sustainable efforts.
The food miles concept was “based on the idea that growing and consuming local
produce was inherently less wasteful than importing it from elsewhere”, and it was
propelled by the issue of global warming, which subsequently led to the argument that
increased food miles are attributed to the exacerbation of carbon footprint, (Kemp et al.,
2010, p. 504). The concept has been significantly discussed in local eating. Still, Schnell
criticises that using distance is not the solution to environmental issues because its purpose
is simply “to foster a different way of thinking about food and a consciousness of its origins”
(2010, p. 617). The idea behind the food mile was to reveal the favourable implication of
choosing conscientious food consumption against imported food less connected to its
locality. The focus should not be on the quantifiable length of food transportation, such as
confining local food consumption to a particular set of miles or area. Although the term
localism may imply a designation of a specific location, sustainable food consumption is not
solely contingent upon proximity to the source. Still, it also combines the “direct experience
and sensory input” that is responsible for establishing the “connections between food
consumption and food production” (Schnell, 2013, p. 625).
However, conventional agricultural production still dominates the global agri-food
system due to economies of scale, agglomeration of profits and bargaining power over local
food systems (Brune et al., 2020). This resulted in the “Alternative Food Networks” (AFNs)
in the 1990s as a reaction against the standardisation, globalisation and corrupt nature of
the industrial food system (Edwards, 2016). Some AFNs include community-supported
agriculture, farmers’ markets, fair trade, urban agriculture, specialised organic agriculture,
direct farm retail and the slow food movement. AFNs seek to diversify and transform
modern food provisioning by connecting ethical producers and consumers in more local,
direct ways. It also aims for SFSCs whereby “the foods involved are identified by, and
traceable to a farmer. The number of intermediaries between farmer and consumer should
be “minimal” or “ideally nil” (Kneafsey et al., 2013). One of the ways that can reconnect
producers and consumers without many intermediaries is through digital platforms and e-
JIBR commerce. The uncertainty and complexity of the business environment, including the
15,1 disruptive change caused by the COVID-19 pandemic, can all be significant triggers that
spark the transformation towards digital business models. Digital technology has changed
the position of established firms in various industries and led to new players from different
sectors.

130 3.2 Digital platform for agriculture

The digital platform business model generates value by allowing interactions among
numerous users. The platform does not produce goods or services but facilitates linkages
between producers and consumers of the goods and services (ISF, 2021). According to the
study done by ISF (2021), there are three common characteristics of digital platforms. First
and foremost, they connect multiple users facilitating interactions between multiple users on
both sides of an exchange. These users can be producers or consumers on the Platform –
and in some cases, they can be both. The second characteristic is that they generate value
through network effects. This refers to the impact that the size of a platform (i.e. a number of
users) has on the value proposition of that platform to its users. In other words, even if the
specific goods or services facilitated by the platform remain static, the mere number of
platform users can increase the value created by the platform. Finally, they are digitally
enabled, allowing them to aggregate numbers of users and enable high volumes of
interactions.
Many digital platforms range from product and service marketplaces to social networks
to payment or investment platforms. There are at least five general models of the
marketplace business model (OECD, 2013):
(1) Business-to-business (B2B) model marketplace, which is an e-commerce model
where the main actors are corporate entities and other companies. It can be
explained simply as a business process where a company sells goods or services to
other companies.
(2) Business-to-consumer (B2C) model marketplace, an e-commerce model with the
main actors being a company and a direct consumer. It is a traditional marketplace
model where companies sell their products directly to consumers using an e-
commerce platform.
(3) Business-to-government (B2G) model marketplace, which is an e-commerce model
where the main actors are companies and the government as consumers. It usually
occurs in companies participating in online government tenders.
(4) Consumer-to-consumer (C2C) model marketplace, an e-commerce model where
consumers and other consumers trade with each other. Intermediaries facilitate
consumers in this model to make online transactions.
(5) The consumer-to-business (C2B) model marketplace is the opposite of the B2C
traditional model in which companies, as producers, sell to consumers. In this
model, consumers sell goods or services to companies.

The digital platform common in the agriculture sector is the digital marketplace. The digital
market in agriculture involves e-commerce transactions linking producers or farmers to
customers and wholesalers. In Indonesia, TaniHub, part of the Tani Group, was launched in
2016 by seven young social entrepreneurs (International Financial Cooperation, World
Bank, 2021). TaniHub Group operates three businesses: online food marketplace TaniHub,
peer-to-peer (P2P) lending platform TaniFund and supplies chain services unit TaniSupply.
The digital marketplace allows consumers to buy fresh produce directly from farmers, while
the P2P platform provides farmers with an alternative and legally registered source of loans. Agri-food
TaniHub has partnered with over 30,000 smallholder farmers and operates five distribution sector
hubs across Indonesia. The company serves over 5,000 business customers and 115,000
retail customers through its platform.
Agri-food MSMEs are linked to rural areas whereby management is based on local
agriculture systems, and production and marketing processes are often fully managed by
entrepreneurs. The MSMEs often have limitations in terms of innovative approaches due to
their small sizes and fragmentation of the production system (Silvestri, 2022). However, 131
digital business platforms developed quickly during the COVID-19 pandemic offering
“contactless delivery” services. Chang and Meyerhoefer (2020) claimed that digital business
platforms might provide customers with convenient options and generate positive
externalities in the form of lower infection rates and reduced healthcare costs. The
marketplace is designed to create market efficiency and improve business processes as a
business model.
One advantage of using a digital marketplace is that it connects investors, landowners,
farmers and customers in a single platform of a mobile market (Anshari et al., 2019). There
are many smallholder farmers and agricultural MSMEs, and most of the time, they are not
aware of other participants in the market, creating information asymmetries. These barriers
mean that smallholder agricultural markets typically go through multiple layers of
intermediaries. These intermediaries connect various parts of the value chain, increasing
market transparency and raising transaction costs. By digitally enabling direct connections
between farmers, service providers and other value chain actors, platforms can help markets
overcome these barriers. The platform combines the disconnected market participants in a
single channel, eliminating costly intermediaries.
Another benefit of the digital platform is the efficiency in transaction costs. Services such
as supplier information, customer rating and tracking past transactions reduce the
asymmetry and the complexity of markets and increase efficiencies in the transaction
process (Xiaoping et al., 2009). Digital marketplaces offer a convenient way to compare
prices and products from a single source rather than spending time contacting each supplier.
It also improves price transparency, particularly in markets marked by obscure pricing
subject to manipulation, for example, wholesale markets where traders can exploit
information asymmetries to the detriment of farmers. Digital marketplaces play an essential
role in increasing the transparency of price and product information and can significantly
affect competition.
On the customers’ end, digital marketplaces provide them with direct access and more
bargaining power as they can compare prices, quality, delivery and services from multiple
suppliers. In agriculture marketing, the marketplace has an important role, especially in
facilitating consumers to find good quality products at lower prices from various suppliers
and supporting product penetration in the market.
A challenge in the digital marketplace includes the knowledge of business using
Information Technology in general (Ndou et al., 2009). This hinders rural farmers from
embracing new technologies that can ease and improve their work in the field (Musa and
Basir, 2021b). This problem can persist when most farmers are ageing, and learning to use
new technologies seems too difficult. Ageing farmers tend to embrace new technology more
slowly; they are less likely to engage in digitalisation and potentially lose their competitive
advantage. This limits the business’s capability to harness the benefit of information
technology in conducting its business. Another challenge is notably the cost involved in
managing and maintaining the respective digital platform chosen and used by the
individual firm. This, however, is manageable should the business collaborate and share the
JIBR separate cost, creating a typical digital marketplace serving multiple vendors (Ndou et al.,
15,1 2009).
Traditionally, the digital marketplace seems to be moving towards companies
establishing and maintaining individual websites providing e-commerce channels and
payment facilities as a package (Ndou et al., 2009). This is cumbersome, with the companies
supporting general website and e-commerce activities. The rapid rise of FinTech provides
132 innovative technology-based financial services (Mention, 2019), which can further facilitate
economic activities and strengthen businesses’ digitalisation. Market infused with robust
FinTech development will move rapidly and provide an end-to-end solution for a
sustainable digital economy. This offers innovative ways for businesses and customers to
manage their financial commitments (Cortina Lorente and Schmukler, 2018; Gomber et al.,
2018) through electronic payments and fund transfers anytime and anywhere, overriding
the utilisation of cash exchange requires physical interaction.
FinTech has also bridged the gap to provide greater reach and access to financing
inclusivity (Babcock, 2015). In the agriculture context, it offers real-time access for the
farmers to funding in addition to immediate collection of revenue from sales, prompting
quick delivery of produce and reducing the need for storage. The current development of
FinTech in the agricultural sectors has been noted in the access to financial services such as
the provision of microfinancing, insurance, credit reporting and financial literacy for the
farmers (McIntosh and Mansini, 2018).

4. Methodology
To meet the objectives of this research, the case study approach is most appropriate. Yin’s
(2003, pp. 13–14) definition of a case study is:
[. . .] an empirical inquiry that investigates a contemporary phenomenon within its real-life
context, especially when the boundaries between phenomenon and context are not evident [. . .] [It
also] copes with the technically distinctive situation in which there will be many more variables of
interest than data points, and as one result relies on multiple courses of evidence, with data
needing to converge in a triangulating fashion, and as another result benefits from the prior
development of theoretical proposition to guide data collection and analysis.
A case study strategy is also considered the most appropriate approach because it provides
a systematic way to collect data, analyse information and report results to understand the
particular problem.
This study uses a single case study, which aims to generalise results to more significant
theoretical intentions Yin (2003, p. 10). One advantage of the single case study is that it
supports the researcher in acquiring a better understanding of the people and processes
within the research domain (Hartley, 2004). Yin (2003, p. 8) has further stated that the benefit
is that the researcher has access to areas that were previously not investigated. The case
study approach’s strength is its ability to examine a “full variety of evidence – documents,
artefacts, interview, and observations”. A case study strategy is also considered the most
appropriate approach because it provides a systematic way to collect data, analyse
information and report results to understand our particular problem. There are also no
restrictions on the various sources of data collection, and multiple resources for data
collection are used. This research uses secondary data consisting of government reports and
documents to give a broader understanding of the impact of COVID-19 on the local food
system and digital platform for agricultural produce and to develop further and enhance the
data of secondary sources collectively.
 As Dwyer et al. (2012) stated, one of secondary data’s most commonly cited strengths is Agri-food
that researchers do not have to interact with study subjects. Consequently, this lessens the sector
reactivity between the researcher and the researched. Therefore, it is unobtrusive and non-
reactive (Keppel et al., 1992), so the responses are recorded and not influenced by what the
subject feels the researchers might want to hear. A second strength is that secondary data
are less time-consuming and usually less expensive. Because secondary data sets are data
that are already collected, saving time, effort and cost (Keppel et al., 1992), it allows
researchers to identify trends and patterns that exist in physical evidence or historical 133
documents without having to collect primary data. Another positive benefit of using
secondary data in this study is that the secondary data sets are sometimes based on entire
populations rather than just samples at a single point in time (Keppel et al., 1992). However,
one of the limitations of this study would be the limited number of literature available on
this topic as COVID-19 is a recent pandemic outbreak, and there is also an issue of the
appropriateness of data. In this sense, secondary data sources may provide vast
information. Still, quantity is not tantamount to suitability because the data has been
collected to answer a different research question or objectives (Denscombe, 2010).

5. Findings and discussion

5.1 Linking the local food system and digital marketplace
With the outbreak of the COVID-19 pandemic, the government conducted the “Buy Local
Produce Campaign” due to the temporary closure of several markets as part of measures to
curb the spread of COVID-19 in the country. This initiative ensures that local market
vendors’ and farmers’ income is secured and unaffected by the temporary closure. It also
helps to safeguard price stability for agricultural produce and encourages the planting of
agricultural produce in a continuous manner (Ministry of Finance and Economy, 2021). It is
also observed that this initiative has created mild local food activism, shown through the
support for small-scale farmers’ and MSMEs’ sustainable food products (Musa and Chin,
2022).
The pandemic also saw the launching of the first digital marketplace for agricultural
produce in Brunei by Agrome IQ. This agri-tech company provides farming solutions and
education to support the next generation of farmers. Agrome IQ collects data from farm
systems to create customised solutions and real-time monitoring to increase farm
productivity. This software intelligence supports farmers in making effective decisions to
achieve productive and profitable farm systems. The digital marketplace Agrome Market
aims to assist in optimising the supply chain for local farmers struggling to market their
products due to the closure of markets (Wong, 2020). If they cannot find a way to sell, a lot of
produce may go to waste, and over time, the lower demand will discourage farmers from
producing, leading to a drop in local supply. Therefore, the digital platform can help support
local farmers to access a broader customer base and for the community to have a convenient
and easy way to keep the ecosystem.
Agrome Market sources a range of fresh fruits and vegetables from local farmers
throughout Brunei. They work closely with farmers to help them maintain quality and
connect customers straight to the source and ensure sustainable sourcing practices as, upon
order, fresh produce comes from the farm and is delivered to the customers in a matter of
days. The company emphasises local food production with its slogan: Buy Local Support
Local.
Agrome Market currently has 20 farmers selling 13 different types of vegetables and
fruits based on a national pool of farmers certified for Brunei’s good agricultural practices.
The company also conducts physical checks on the product to ensure customers receive
JIBR quality items (Wong, 2020). They also handle the farmers’ logistics, picking up and packing
15,1 orders and making deliveries nationwide. The data from purchases will also help gauge
customer demand and will be shared with farmers to help them better plan which crops to
plant. This help farmers improve their productivity and the quality of goods and also
handles the logistical hurdles of getting them to markets – even during pandemic-related
lockdowns when traditional markets are closed.
134 Another digital platform formed by the government during the pandemic is
eKadaiBrunei, which provides a safe and convenient way for local businesses to continue
connecting with customers during the COVID-19 outbreak (Ministry of Finance and
Economy, 2021). There are currently 12 e-commerce platforms, 12 logistics companies
and six delivery services listed and readily integrated with online payment capabilities and
delivery services.
The government has also encouraged its citizens to use digital financial services to
reduce physical contact between people, which can break the chain of infection. Financial
institutions such as banks and FinTech firms such as BruPay provide the platform for
transactions to be paid online or through contactless payment methods such as wave and
QR code scans, extending their services to all businesses in the country.
The adaptation of MSMEs towards digital platforms shows their openness to embracing
new business models leveraging the advancement of technology while still preserving the
personal touch which attracted their customers. A survey conducted by AITI Brunei has
shown that more than 90% of the MSMEs in the country are selling their products online.
Fifty per cent of the businesses surveyed by AITI Brunei claim they operate their business
through social media platforms (Othman, 2020). They claim that doing business online,
primarily through social media presence, enables them to reach more customers and the
availability of delivery services facilitates their interactions with customers without them
delivering their products. Hence, it allowed them to concentrate on production rather than
indirect processes such as delivery.
Figure 1 show entrepreneurs using digital platform heavily relies on internet banking,
mobile applications and fund transfer facilities provided by banks and settlement houses.
With such financial services available, the agriculture sector also used them to secure
payments for their produce. Securing fees or mandatory deposits from customers through
the FinTech-enabled platform became a norm for the industry. It is observed that the

Figure 1.
Digital platform
intermediaries
farmers who are in direct contact with the customers through social media or digital Agri-food
marketplaces such as the ekedaikitani or Agrome market are more efficient in ensuring their sector
produce is not wasted leveraging this technology.
This is done by securing deposits or full payment for the respective agricultural produce
before it is harvested and delivered to the client. The farmers can adequately plan their
harvest and seek the customer’s preference on which crops are highly demanded. Indirectly
this induces informed agricultural activities, paving opportunities for efficient allocation of
resources and an encouraging step towards sustainability. Similarly, this promotes 135
producing sufficient agricultural produce by the demand, which is captured through the
payments or deposits provided.
In developing the FinTech capacity in Brunei, the digital marketplace will surely be more
efficient as it serves the financial needs of all players. It can create and facilitate building
trust between customers and farmers through the availability of financial services, such as
enabling booking deposits and immediate payment before or after product delivery.
Considering the agri-food sectors, this additionally provides easy financial access for the
farmers, suppliers and customers without needing to meet each other physically. All
transactions are done securely and seamlessly. This will include mobile payments, access to
investors or credits and consumer finance (Gomber et al., 2018).
It can be observed that digital platforms, in a way, increase the resilience of the agri-food
sector by allowing small-scale farmers and MSMEs to continue operating during uncertain
environments such as the pandemic. In the long run, digital platforms can widen the
farmers’ customer reach not limited to the localities, typically remote areas where
agricultural activities are undertaken but may serve international markets. As observed
through Agrome Market, leveraging technology enabled the matching of supply and
demand of agricultural produce, indirectly reducing the wastage of resources as cultivation
and harvest can be adequately planned. In addition, it contributes towards a more
sustainable agri-food system by minimising and eliminating intermediaries creating a SFSC.

6. Research and practical implications

6.1 The adaptability of MSMEs to transform their business models
One of the research implications of this study is the adaptability of MSMEs to transform
their business model quickly and cope with the environmental changes and disruption due
to the pandemic of COVID-19. MSMEs have limited or no guidance on preparing for such
disruptions (Papadopoulos et al., 2020). The uncertainty and complexity of the business
environment, including the disruptive change caused by the COVID-19 pandemic, can all be
significant triggers that spark the transformation towards digital business models. In this
case study, it is observed that MSMEs’ particularly those in the agri-food sector, are
embracing new business models like digital platforms leveraging technological
advancements while maintaining the personal touch that attracts customers. The new
business model challenges the traditional setting of profit-driven business operation, the
notion of having the right location, customers’ satisfaction through product consumption
and destructive competition. In a disruptive environment, managers can no longer see
digital technologies as a supporting function; instead, it is part of the company’s business
innovation.

6.2 The use of technology to build food system resilience

The pandemic has opened up opportunities for the food system to harness technology to
build and strengthen food system resilience. The digitalisation of the agriculture sector has
always been one of the strategies used to enhance and boost the food system. The digitalised
JIBR agri-food sector is collaborative and sustainable economically and socially, benefiting
15,1 businesses and the environment (Carmela Annosi et al., 2020). For instance, investing in new
technologies that enable farmers to connect with information and institutions that can
decrease uncertainty and mitigate risks, such as access to data, markets and financial
services, help farmers to have more efficient in production and distribution
According to FAO (2021), one recovery strategy from the COVID-19 pandemic for the
136 food system is to exploit digital tools such as e-commerce, mobile technology and artificial
intelligence (AI) to improve global food system resilience. Several countries have included
advanced technology to help strengthen and improve the local food supply chain. For
instance, Japan has plans to enhance food security measures by adapting agri-technology to
boost agriculture production and improve food self-sufficiency, minimising the reliance on
food imports (Neo, 2021). In Southeast Asia, Singapore is one of the top countries to use
innovative farm practices to boost that despite having only 1% of land available for food
and agriculture production. Singapore had invested $23m into research and development on
sustainable urban food production to improve self-sufficiency. The country is looking into
using (AI) and IoT technology to boost local production (Tan, 2020).

6.3 Strengthening local food production and adopting shorter food supply chain
The disruption in the global food supply chain during COVID-19 has presented
opportunities for the world to reflect and be more aware of their self-sufficiency in food
production (Bisoffi et al., 2021). Thus, strengthening local production and adopting an SFSC
would help the supply chain be more resilient in a crisis. For context, an SFSC consists of a
limited number of intermediaries between farmer and consumer. SFSC can restructure the
food chain that promotes sustainable farming, re-localizing food economy control, providing
an alternative food chain and developing resilient agriculture communities in rural and
urban areas (EC, 2015). In addition, SFSC could reduce the environmental impact of
agriculture while meeting the population demand of providing quality food (Jarzębowski
et al., 2020). In other words, buying locally sourced food could reduce carbon footprint as
fewer resources are required for packaging and shipping. Hence, implementing a short food
supply chain provides a different way to deal with the problem of food security, particularly
during nationwide lockdowns.
Some countries have already made advancements to adapt SFSC as part of a strategy to
enhance their food system and ensure food security from future crises. Amid COVID-19,
FAO (2020b) has urged countries to strengthen local production and shorten food supply
chains to preserve access to sufficient food and nutrition. For instance, strategies have
already been set in the Southeast Asia region in the ASEAN Economic Community
Blueprint (AEC) 2025 for the countries to develop and transform local food production to
ensure sufficient food security and safety.

7. Concluding remarks
The function of the conventional agriculture and food supply chain in a situation of
uncertainty, in this case, the COVID-19 pandemic, has been severely disrupted due to
unprecedented control measures undertaken to manage and eradicate the spread of the
virus. Based on the findings, it can be observed that digital platforms and FinTech play an
essential role in ensuring safety and undisrupted food supply, especially in the case of fresh
produce grown by local small-scale farmers and MSMEs. This creates a more resilient agri-
food system and reduces the pressure from the conventional model of food purchase and
social distancing requirements.
 An important implication of this study is that although the pandemic outbreak created Agri-food
prolonged uncertainties with an immediate impact on the economy and ways of doing sector
business transactions, it described how Brunei responded to ensure continuous food supply
during the period by using digital platforms and FinTech. A takeaway from this experience
indicates that in the long run, these models will play an essential role in guiding the country
in managing food security in facing future crises. It is thus vital to build a conducive
ecosystem paving the transition towards the digitalisation of the agri-food sector whilst 137
protecting the respective actors, i.e. farmers, businesses, organisations, industries,
consumers and the community. The agricultural landscape is now shifting, and the work is
increasingly multifaceted. Farmers alone cannot meet the world’s food demands or
technology without human knowledge and intervention.
One of the limitations of this study is that it uses a case study method dependent on
secondary data and is based in Brunei alone. The COVID-19 pandemic is still a relatively
recent problem. Hence, it may not be able to give an accurate general representation of the
linkages between COVID-19, the local food system and the digitalisation of the agri-food
sector. Therefore, future studies should consider a more in-depth study with empirical
evidence to provide a robust analysis and conclusion on this study.
Although this method does not explicitly interpret the degree of the impact of these
models, it does provide some helpful insight into the use of digital marketplace and Fintech
in ensuring the safety of food supply during the outbreak of the COVID-19 pandemic and
how it can create a more resilient agri-food system by eliminating numerous intermediaries
in the market .

References
Anshari, M., Almunawar, M.N., Masri, M. and Hamdan, M. (2019), “Digital marketplace and FinTech to
support agriculture sustainability”, Energy Procedia, Vol. 156, pp. 234-238.
Babcock, L.H. (2015), “Mobile payments: how digital finance is transforming agriculture”.
Bisoffi, S., Ahrné, L., Aschemann-Witzel, J., Baldi, A., Cuhls, K., DeClerck, F., Duncan, J., Hansen, H.O.,
Hudson, R.L., Kohl, J., Ruiz, B., Siebielec, G., Treyer, S. and Brunori, G. (2021), “COVID-19 and
sustainable food systems: what should we learn before the next emergency”, Frontiers in
Sustainable Food Systems, Vol. 5, p. 650987, doi: 10.3389/fsufs.2021.650987.
Brune, S., Knollenberg, W., Stevenson, K.T., Barbieri, C. and Schroeder-Moreno, M. (2020), “The
influence of agritourism experiences on consumer behavior toward local food”, Journal of Travel
Research, Vol. 60 No. 6, pp. 1318-1332, doi: 10.1177/0047287520938869.
Carmela Annosi, M., Brunetta, F., Capo, F. and Heideveld, L. (2020), “Digitalization in the agri-food
industry: the relationship between technology and sustainable development”, Management
Decision, Vol. 58 No. 8, pp. 1737-1757, doi: 10.1108/MD-09-2019-1328.
Chan, Y.W. (2016), “Food localism and resistance: a revival of agriculture and cross-border relations in
Hong Kong”, Asia Pacific Viewpoint, Vol. 57 No. 3, pp. 313-325, doi: 10.1111/apv.12130.
Chang, H.H. and Meyerhoefer, C. (2020), “COVID-19 and the demand for online food shopping services:
empirical evidence from Taiwan”, NBER Working Paper No 27427, doi: 10.3386/w27427.
Cortina Lorente, J.J. and Schmukler, S.L. (2018), “The Fintech revolution: a threat to global banking?”,
World Bank Research and Policy Briefs (125038).
CSPS (2021), “Brunei economic outlook 2021. Centre for strategic and policy studies, Bandar Seri
Begawan”.
Denscombe, M. (2010), The Good Research Guide: For Small-Scale Social Research Projects, Open
University Press, McGraw-Hill Education.
JIBR Department of Agriculture and Agri-Food (2019), “Brunei Darussalam agriculture and agrifood
statistics 2019”.
15,1
Department of Economic Planning and Statistics (DEPS) (2020), “Brunei Darussalam key economic
developments”, Quarter 2 2020, available at: www.deps.gov.bn/DEPD%20Documents%20Library/
NDP/Planning/BKED_DevQ2_2020.pdf (accessed 14 December 2021).
Dwyer, L., Gill, A. and Seetaram, N. (2012), Handbook of Research Methods in Tourism: Quantitative
138 and Qualitative Approaches, Edward Elgar Publishing Ltd., doi: 10.4337/9781781001295.
EC (2015), “Innovative short food supply chain management – Europa”, available at: https://ec.europa.eu/
eip/agriculture/sites/default/files/eip-agri_fg_innovative_food_supply_chain_management_final_
report_2015_en.pdf (accessed 11 April 2022).
Edwards, F. (2016), “Alternative food networks”, in Thompson, P. and Kaplan, D. (Eds), Encyclopedia of
Food and Agricultural Ethics, Springer, Dordrecht, doi: 10.1007/978-94-007-6167-4_513-1.
FAO (2020a), “FAO stat database: suite of food security indicators”, available at: www.fao.org/faostat/
en/#data/FS (accessed 21 December 2021).
FAO (2020b), “Adjusting business models to sustain agri-food enterprises during COVID-19”, available
at: www.fao.org/3/ca8996en/CA8996EN.pdf (accessed 20 January 2022).
FAO (2021), “In brief to the state of food security and nutrition in the world 2021”, Transforming Food
Systems for Food Security, Improved Nutrition, and Affordable Healthy Diets for All, FAO, Rome,
doi: 10.4060/cb5409en.
Gomber, P., Kauffman, R.J., Parker, C. and Weber, B.W. (2018), “On the fintech revolution:
interpreting the forces of innovation, disruption, and transformation in financial services”,
Journal of Management Information Systems, Vol. 13 No. 2, pp. 220-265, doi: 10.1080/
07421222.2018.1440766.
Guo, H., Liu, Y., Shi, X. and Chen, K. (2021), “The role of e-commerce in the urban food system under
COVID-19: lessons from China”, China Agricultural Economic Review, Vol. 13 No. 2, pp. 436-455.
Hartley, J. (2004), “Case study research”, in Catherine, C. and Gillian, S. (Eds), Essential Guide to
Qualitative Methods in Organizational Research, Sage Publications, London, pp. 323-333.
Hinrichs, C. (2003), “The practice and politics of food system localization”, Journal of Rural Studies,
Vol. 19 No. 1, pp. 33-45.
ILO (2020), “ILO: as job losses escalate, nearly half of the global workforce at risk of losing livelihoods”,
Press Release, 29 April, available at: www.ilo.org/global/about-the-ilo/newsroom/news/
WCMS_743036/lang–en/index.htm (accessed 20 September 2021).
Independent Evaluation Group (IEG) (2014), The World Bank Group and the Global Food Crisis: An
Evaluation of the World Bank Group Response, World Bank, Washington, DC, doi: 10.1596/978-
1-4648-0091-7.
International Financial Cooperation, World Bank (2021), “Digital marketplace keeps Indonesian farmers in
business”, available at: www.ifc.org/wps/wcm/connect/news_ext_content/ifc_external_corporate_site/
newsþandþevents/news/impact-stories/tanihub-indonesia (accessed 20 September 2021).
ISF (2021), “Agricultural ‘platforms’ in a digital era: defining the landscape”, available at: https://
isfadvisors.org/wp-content/uploads/2021/03/ISF_RAFLL_Agricultural_Platforms_Report.pdf
(accessed 20 September 2021).
Jarzębowski, S., Bourlakis, M. and Bezat-Jarzębowska, A. (2020), “Short food supply chains (SFSC) as
local and sustainable systems”, Sustainability, Vol. 12 No. 11, p. 4715, doi: 10.3390/su12114715.
Kemp, K., Insch, A., Holdsworth, D.K. and Knight, J.G. (2010), “Food miles: do UK consumers actually
care?”, Food Policy, Vol. 35 No. 6, pp. 504-513, doi: 10.1016/j.foodpol.2010.05.011.
Keppel, G., Saufley, W.H. Jr. and Tokunaga, H. (1992), A Series of Books in Psychology. Introduction to
Design and Analysis: A Student’s Handbook, 2nd ed., W H Freeman/Times Books/Henry Holt
and Co, Worth Publishers, USA.
Kneafsey, M., Venn, L., Schmutz, U., Balazs, B., Trenchard, L., Eyden-Wood, T., Bos, E., Sutton, G. and Agri-food
Blackett, M. (2013), “Short food supply chains and local food systems in the EU (EUR 25911 EN;
JRC Scientific and Policy Reports)”, doi: 10.2791/88784. sector
McIntosh, C. and Mansini, C.S. (2018), “The use of financial technology in the agriculture sector”.
Mention, A.-L. (2019), “The future of fintech”, The Future of Fintech, Research-Technology
Management, Vol. 62 No. 4, pp. 59-63, doi: 10.1080/08956308.2019.1613123.
Ministry of Finance and Economy (2021), “Towards a dynamic and sustainable economy: economic
blueprint for Brunei Darussalam”, Ministry of Finance and Economy, Bandar Seri Begawan.
139
Musa, S. and Basir, K.H. (2021a), “Livestock shortage amidst COVID-19: a case of Brunei Darussalam”,
IOP Conference Series: Earth and Environmental Science, Vol. 756 No. 1, p. 12013, doi: 10.1088/
1755-1315/756/1/012013.
Musa, S. and Basir, K.H. (2021b), “Smart farming: towards a sustainable agri-food system”, British
Food Journal, Vol. 123 No. 9, pp. 3085-3099.
Musa, S. and Chin, W.L. (2022), “The contributions of agritourism to the local food system”, Consumer
Behavior in Tourism and Hospitality, Vol. 17 No. 2, pp. 197-210, doi: 10.1108/CBTH-10-2021-0251.
Ndou, V., Del Vecchio, P. and Schina, L. (2009), “Digital marketplace for developing countries”, Paper
presented at the ICE-B.
Neo, P. (2021), “Making a comeback: Thailand hails food industry growth after Covid-19 slump – but
urges firms to maintain vigilance”, available at: www.foodnavigator-asia.com/Article/2021/10/04/
Making-a-comeback-Thailand-hails-food-industry-growth-after-COVID-19-slump-but-urges-firms-
to-maintain-vigilance (accessed 11 January 2022).
Norjidi, D. (2022), “Inflation explained: why prices are going up”, Borneo Bulletin. 2 July, available at:
https://borneobulletin.com.bn/inflation-explained-why-prices-are-going-up/ (accessed 1 July
2022).
OECD (2013), “The digital economy, new business models and key features”, OECD Science,
Technology and Industry Scoreboard 2013: Innovation for Growth, OECD Publishing, Paris,
available at: chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.oecd-ilibrary.
org/docserver/9789264218789-7-en.pdf?expires=1665794850&id=id&accname=guest&checksum=
3917254497E87013707C9263B148E931
Opara, L.U. and Mazaud, F. (2001), “Food traceability from field to plate”, Outlook on Agriculture,
Vol. 30 No. 4, pp. 239-247, doi: 10.5367/000000001101293724.
Othman, A. (2020), “Facebook tops sultanate’s social media”, Borneo Bulletin. 19 March, available
at: https://borneobulletin.com.bn/facebook-tops-sultanates-social-media-2/ (accessed 3
August 2022).
Palau-Saumell, R., Matute, J., Derqui, B. and Meyer, J.H. (2021), “The impact of the perceived risk of
COVID-19 on consumers’ attitude and behavior toward locally produced food”, British Food
Journal, Vol. 123 No. 13, pp. 281-301.
Papadopoulos, T., Baltas, K.N. and Balta, M.E. (2020), “The use of digital technologies by small and
medium enterprises during COVID-19: implications for theory and practice”, International
Journal of Information Management, Vol. 55, p. 102192.
Pole, A. and Gray, M. (2013), “Farming alone? What’s up with the ‘C’ in community supported
agriculture”, Agriculture and Human Values, Vol. 30 No. 1, pp. 85-100.
Schnell, S.M. (2013), “Food miles, local eating, and community supported agriculture: putting local food
in its place”, Agriculture and Human Values, Vol. 30 No. 4, pp. 615-628, doi: 10.1007/s10460-013-
9436-8.
Silvestri, R., Ingrao, C., Fiore, M. and Carloni, E. (2022), “Digital innovation through networking among
agro-food SMEs: the role of R&D projects”, British Food Journal, doi: 10.1108/BFJ-12-2021-1339.
Stein, A.J. and Santini, F. (2021), “The sustainability of ‘local’ food: a review for policy-makers”, Rev
Agriculture Food Environment Studies, Vol. 96, pp. 1-13.
JIBR Tan, A. (2020), “Turning to local production and leveraging technology to ensure Singapore’s food security”,
The Straits Times, 31 December, available at: www.straitstimes.com/singapore/environment/turning-
15,1 to-local-production-and-leveraging-technology-to-ensure-food-security (accessed 1 August 2022).
The Asia Foundation (2021), “Enduring the pandemic: surveys on the impact of covid-19 to
the livelihoods of Malaysian MSMEs and workers”, available at: https://asiafoundation.
org/wp-content/uploads/2021/03/Enduring-the-Pandemic-Surveys-on-the-Impact-of-Covid-19-
to-the-Livelihoods-Of-Malaysian-MSMEs-Workers-.pdf (accessed on 1 August 2022).
140 The World Bank (2021), “Food security and COVID-19”, available at: www.worldbank.org/en/topic/
agriculture/brief/food-security-and-COVID-19 (accessed 20 April 2022).
Wong, A. (2020), “Agrome IQ launches Brunei’s first online marketplace for farmers”, The Scoop. 14 April,
available at: www.bizbrunei.com/2020/04/agrome-iq-launches-bruneis-first-online-marketplace-for-
farmers/ (accessed 20 September 2021).
Xiaoping, Z., Chunxia, W., Dong, T. and Xiaoshuan, Z. (2009), “B2B E-Marketplace adoption in
agriculture”, Journal of Software, Vol. 4 No. 3, pp. 232-239.
Yin, R.K. (2003), Case Study Research: Design and Methods, 4th ed., Sage Publications, Thousand Oaks,
CA.

Further reading
Hinrichs, C.C. (2014), “Transitions to sustainability: a change in thinking about food systems change?”,
Agriculture and Human Values, Vol. 31 No. 1, pp. 143-155.

Corresponding author
Siti Fatimahwati Pehin Dato Musa can be contacted at: fatimahwati.musa@ubd.edu.bn

For instructions on how to order reprints of this article, please visit our website:
www.emeraldgrouppublishing.com/licensing/reprints.htm
Or contact us for further details: permissions@emeraldinsight.com