THE ROLE AND POTENTIAL OF INFORMATION TECHNOLOGY IN AGRICULTURAL IMPROVEMENT

The agro-industrial sector in developing countries is faced with challenges, such as requirement for increase of food production and yield and creation of opportunity for employment of rural and poor population. In addition, the agricultural sector is influenced by global factors and fast changes. These facts indicate that there is great need for information and information technologies (IT), which can be used to cope with the challenges and changes and to improve agricultural production and marketing. However, the potential of IT is not fully utilized in agriculture. Implementation of IT in agricultural sector and rural areas is relatively slow in comparison to the other sectors of the economy where contemporary IT has been implemented at high speed. The aim of the paper is to analyze role, potential and contribution of IT in agribusiness and to explain opportunities for use of IT in many fields of agricultural sector. Our findings are based on economic theory and available literature, and they suggest that IT has great potential for supporting farmers and the other stakeholders in improvement of efficiency, effectiveness and productivity of agriculture. However, the stakeholders have to cope with many limitations and problems in IT implementation and use.