CODECS (Maximizing the Co-Benefits of Agricultural Digitalization Through Conducive Digital Ecosystems) is an international research project funded by the European Union, running from 2022 to 2026. Its goal is to explore and evaluate the impact of digitalization on agriculture and production. The project analyses how digital tools and technologies are transforming farmers’ daily operations and what social and economic factors influence this transition to digital systems. CODECS places particular emphasis on how digitalization can promote sustainable development and more efficient resource use while identifying potential risks and limitations.
In Latvia, CODECS is implemented by the Baltic Studies Centre (BSC), which focuses on agricultural digitalization processes, the development of direct sales, and the coordination of a work package focused to policy analysis. One of the key aspects of the research concerns the beef sector – analysing how digital platforms and online ordering systems can improve product marketing, reduce the social and economic distance between farmers and consumers, and enhance the competitiveness of local products. The project also examines logistics solutions, the costs of digital technologies, and farmers’ experiences in adopting new sales and management models.
Several participating countries in the project have established Living Labs, where researchers and practitioners collaborate to find solutions to pressing challenges. This approach goes beyond theoretical research on problem causes and includes practical situation analysis and real-world testing of solutions. BSC collaborates with the Farmers’ Council (Zemnieku Saeima), with a particular focus on digital marketing in the beef sector. Emīls Ķīlis, a Senior researcher at BSC, explains that one of the initial ideas was to integrate digital marketing with the "Grassland Product" brand developed by the Latvian Fund for Nature. The goal was to link the Farmers’ Council’s online platform, which provides technical data on farms, with a unique brand that would highlight the added value of these products in the marketing context. “However, during the process, we realized that it is not as simple as we initially thought,” explains Emīls Ķīlis. “What we have understood is that it does not work. Such technical information is useful for farmers and government officials, but for a general platform visitor, the information available there is not engaging. It will not appeal to consumers who are looking for a clear message about the product.”
Researchers have concluded that the primary challenges farmers face in online marketing are much more practical than initially expected. The biggest issue is a lack of time and knowledge – many farmers do not have the resources to learn how to use digital marketing tools. This process can be alienating, as it requires not only high-quality production but also the ability to create compelling narratives and present products effectively. Some farmers acknowledge that this creates a contradictory role – on the one hand, they must ensure a safe, healthy, and high-quality product, while on the other hand, they need to be attractive and engaging to sell their goods successfully. Previously, these roles were clearly separated: the farmer was responsible for production, while marketing was handled by someone else.
Within the CODECS project, BSC is also working on analysing the social costs and benefits associated with the impact of digitalization on farmers’ daily lives. The study evaluates how digital tools transform agricultural processes not only technologically but also from practical and social perspectives. Researcher Maija Ušča explains: “Often, when we think of digitalization in agriculture, we imagine complex technologies that change farming practices, such as land management. However, our research focuses on more moderate impacts on everyday life, such as time management or occupational safety concerns. So, what does the introduction of digital technologies require from farmers? Financial investments, skills, and training.” The study also assesses the benefits that these technologies can provide – digital marketing can boost product sales, while in other countries, digitalization has led to improved farm management practices or more detailed farm data, aiding better decision-making.
One aspect of the social cost-benefit analysis in CODECS is the impact of digital solutions on communication – both within farms and in their relationships with clients. Digital tools, such as social media, help farmers reach consumers and connect with urban populations. However, an important question arises – is society truly ready to see the realities of agriculture, or does it expect an idealized version shaped by its own preconceptions? To illustrate these contradictions, Maija Ušča shared an example from a workshop. A farmer engaged in beef cattle farming recounted her experience with social media communication. She noted that urban consumers expect a particular type of content about rural life that aligns with their existing perceptions, while the actual reality is often different. For instance, slaughterhouses are an essential part of livestock farming, but this aspect is rarely discussed or shown publicly, as it could deter customers. Theoretically, digital technologies can foster closer ties between farmers and consumers, yet in practice, farmers must adapt to public expectations and curate a more visually appealing portrayal of livestock farming and farm life.
Digital solutions offer the potential to perform numerous daily tasks remotely. However, the situation becomes significantly more challenging for older generations or individuals who lack access to high-speed internet, devices, or the necessary digital skills. This challenge also applies to rural farms. Digitalization holds potential – it can improve efficiency and reduce costs in the long term. However, its implementation often requires not only initial investments but also long-term commitments, such as software maintenance or continuous adaptation to new technologies. For smaller businesses and independent farmers without dedicated IT specialists, managing these tools becomes an additional burden. Risks also exist, for example, farmers may not always fully understand how these systems operate, potentially leading to situations where they become dependent on external service providers. Emīls Ķīlis remarks: “Nowadays, there is frequent concern about how to maximize benefits from digitalization. Large enterprises and farms can benefit because they can afford specialists. But what happens to those who must combine various tools on their own?”
Senior researcher Emīls Ķīlis and researcher Maija Ušča highlight that one of the fastest-growing areas of digital development in agriculture is precision farming – using technology to optimize resource consumption and improve efficiency. However, precision farming is expensive, and such systems are primarily accessible to large farms that can afford regular usage. Maija Ušča comments: “It is evident that the farms moving in this direction are those that can afford it and implement it on a regular basis.”
Another critical question arises – where will farmers acquire knowledge about new technologies? While agricultural consultants provide guidance on farming practices, when it comes to machinery and digitalization tools, the main sources of information are often the technology vendors themselves. This means that farmers receive knowledge through a commercial filter – companies selling these solutions also shape the understanding of their necessity and advantages. This creates a potential risk, as farmers may become dependent on manufacturer-provided information.
Furthermore, digitalization entails delegating decision-making to technology, including artificial intelligence. While this approach can optimize production processes, it also raises accountability concerns – what happens if the system makes a mistake? Who will be responsible – the farmer or the technology provider? These questions are becoming increasingly relevant as digitalization continues to advance, yet its impact on the environment and economy still requires careful assessment.