How Technology is Changing the Farm Supply Chain
Technology and innovations are now starting to transform the food supply chain. Digital technology and big data are making operating a farm more technical and precise. Here are 5 global trends transforming farms and supply chains as we know them.
Rising population. The world population is expected to rise to 10 billion by 2049 which could result in a boost of agricultural demand by 50 percent compared to 2019. This demand needs to be met with higher yields and/or more farm land being worked.
Farmer incomes are declining. Farm profits are at a record 12-year low. In the first forecast of 2020, the US Department of Agriculture (USDA) is predicting farm profits to dwindle 6.7 percent to $59.5 billion, which is the lowest it’s been since 2006.
Consumers are more digitally savvy. The rising generation of digital, tech-savvy consumers are coming to market with expectations based on their experience in other digital-first industries. Also, consumer tastes and behaviors are evolving, with millennial customers driving demand for organic products, sustainable retail supply chains, and zero deforestation commitments.
Disruption and centralization. Agricultural retailers are facing pressure from increasing consolidation in the seed and crop protection industry. Digitization across the supply chain and expansion of in-house storage among farmers is disrupting their fundamental business model.
Loss and waste. About one-third of all food produced, approximately 1.3 billion metric tons — gets lost or wasted. Every year, consumers in rich countries waste almost as much food (222 million metric tons) as the entire net food production of sub-Saharan Africa (230 million metric tons). Moreover, developing countries deal with a lack of cold chain infrastructure to transport fruits, vegetables and meat over long distances.
Precision farming drones, and robotics along the supply chain can help address these challenges and meet rising global food demand, driving the next wave of agricultural revolution. Here are four major technology trends shaping the fourth agricultural revolution.
Robotics. Robotics are getting better and their viability is being explored across the agricultural supply chain, from planting to harvesting, to meat processing and grocery logistics. There is also new demand for robotics as a service, especially when it comes to fruit picking. By 2024, robots are forecast to navigate the farm to the tune of an estimated $5.7 billion ag-robotic industry.
Sensor technology. A mix of remote sensing techniques, from in-field sensors to drones to satellite imagery, are allowing farmers to view their crops in a whole new way. With advances in computing and sensor technology, farmers can now get access to high-cadence, broad area coverage with field-level detail. All these provide farmers up-to-date information in real-time, so changes can be made accordingly to their crops. These sensors allow for crop optimization and higher yields as well.
Machine Learning and Analytics. Machine learning can predict which traits and genes will be best for crop production, giving farmers the best breed for their location and climate. At the field level, machine learning techniques that use satellite data to distinguish between crops, like corn and soy, provide valuable information for service providers, crop insurance, logistics, and commodity markets.
Blockchain. Blockchain is a mechanism for recording information that is unalterable and does not depend on trusting a third party. Using block chain in the agricultural supply chain can increase transaction speeds up to 5x!
Agriculture is undergoing a huge transformation in 2021 because of digitization, drones and robotics. With investors putting more than $700 million into agtech companies in 2020 (about double the previous year), more change and disruption are on the horizon.
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Dropcopter is a leader in farm digitization and robotics.
Dropcopter coordinates with the grower before bloom to generate automated flight paths over specific rows of crops. Upon bloom, Dropcopter flies the aircraft up to 10 feet above the trees dispensing an agreed application rate of dry pollen exactly where it needs to be.