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Farmers can sell produce on exchange via cell phones
by Jennifer B. Simes, Staff Writer;
Computerworld Philippines

Issue Date: October 15, 2001


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B2BPRICENOW.COM, an e-marketplace for agricultural, chemical and construction products, will now enable farmers, cooperatives, and small entrepreneurs to do online trading via their cell phones.

The e-marketplace allows both buyers and sellers to access information and perform transactions via SMS (short messaging service) or WAP (wireless application protocol), made possible by its partnerships with Globe Telecoms and Smart Communications Inc.   

Erick S. Kalugdan, IT consultant for the e-marketplace, told Computerworld Philippines that members can check prices of prevailing products and the status of their online trading as well as access product catalogs.    He said B2Bpricenow.com aims to bring more farmers into the online marketplace so it provided a cheaper way of bringing the facility to them.

"Finding a computer is no longer a problem since they can now connect using their cell phones," Kalugdan said.

He said, however, that mobile phones are just one alternative way to access the Web site and do online trading. Members can also go to Internet kiosks provided by partner government agencies such as the Department of Agriculture (DA) or Land Bank of the Philippines and non-government organizations such as the Philippine Rural Reconstruction Movement (PRRM).   

"Catholic churches also have livelihood centers run by the CBCP.net that provide Internet connectivity. These centers were established to help farmers learn computer and Internet skills," Kalugdan said.

Launched last February, B2Bpricenow.com already has 400 active buyers and sellers in the agriculture, chemical and construction industries.

"Right now we are in the information dissemination phase.    We are extensively doing roadshows to introduce the e-marketplace to the people in the countryside and to give them basic knowledge about e-commerce and its benefits," said Kalugdan.

The company has also formed alliances with the Land Bank of the Philippines, the Department of Trade and Industry (DTI) and DA to ensure that its online trading service would reach farmers, cooperatives and small and medium-sized entrepreneurs nationwide.

"The e-marketplace will help farmers offer their goods online, eliminating middlemen who do the trading and other transactions," he said. "Landbank has a network of cooperatives in 21 regions that we hope to tap and provide service to in the coming years."

Aside from providing the client base, Landbank will also facilitate the signing up of members and provide loans to cooperatives that wish to purchase a computer and get Internet connectivity or to farmers who wish to buy mobile phones to access the Web site.

As a technical partner, Unisys Philippines designed the Web site and maintains it. Ating Alamin, a show by agricultural guru Gerry Geronimo, is the sole content partner, responsible for maintaining and updating information on the latest trends in the agriculture sector.

Kalugdan said payments for the online trading in the e- marketplace can be made through fund transfers facilitated by partner banks like Landbank, 1st e-Bank and Union Bank of the Philippines. "We will soon offer e-payment via online fund transfers. We are just awaiting the clearance from the Bangko Sentral ng Pilipinas (BSP) that will allow fund transfers for B2B payments."

Meanwhile, PRRM and the Polytechnic University of the Philippines (PUP) will provide training and seminars on basic Internet knowhow and e-commerce to farmers, SMEs and cooperatives for the e-marketplace, Kalugdan said.

REVENUES

B2bpricenow.com charges a 0.25% fee for every transaction made by its member buyers or sellers. Another revenue source for the e-marketplace is its Web development service for cooperatives or SMEs that want to have their own Web sites.   

"We offer Web page development and hosting for P2,800 a year," said Kalugdan. "We also earn from online advertising as well as from our partnership with the telcos. We are given 40 centavos for every SMS message that our buyers and sellers send through their systems."

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