Agribusiness management and the role of digital transformation

In recent years, digital transformation has led to major changes in agribusiness management, being seen by professionals in the area as an essential resource for solving problems with innovative solutions .

In this sense, it is essential for agribusiness management to enter into partnerships with organizations willing to take innovation even further, ensuring greater efficiency, productivity and scalability for the sector .

Keep reading this article to find out which trends you need to keep an eye on and how they can help you manage your business. 

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Technology in agribusiness: facilitating the daily lives of rural producers

Agribusiness management and the era of Agriculture 4.0

The agricultural sector is one of the most important in Brazil, representing 26.6% of the Brazilian GDP . In several countries around the world, the area also plays a very important role in everything that is sold. After all, the agro sector is also the basis for other industries to function.

It is important to keep this context in mind to understand that the management of companies in this sector must be one of the main points of attention in the market. After all, agricultural production is complex and dynamic , so its management is decisive for the success or failure of the business.

With good management of the rural business, you will be able to identify the main strengths and weaknesses of your business, as well as market opportunities . That way, you can set goals and you will be able to have control over your company.

It is therefore necessary to establish objective, clear and consistent criteria to select the appropriate tools or methodologies for each situation. And this is how we arrived at the use of new technologies.

In this sense, Agriculture 4.0 can be defined as a set of digital technologies integrated and connected through software , systems and equipment , practically paralleling Industry 4.0 applied to Agribusiness.

This means better monitoring of production from planning to harvesting and delivery. 

In practice, this management is carried out using data collected and stored at each stage of production , allowing the use of more detailed information about each stage obtained online and reducing the risk of losing information, since this data becomes stored in the cloud .

All these improvements allow financial and logistical control of all agricultural production , being very similar to an industrial process, which shows that Agriculture 4.0 has a lot to gain by being inspired by many of the factors already established by Industry 4.0.

Here are some examples of expected gains from Agriculture 4.0:

• Improved property management;
• Waste reduction;
• Reduction in the cost of agricultural production;
• Remote control of production;
• Productivity increase;
• Improved business sustainability.

The success of agribusiness management depends on the use of new tools

Modern agriculture is an evolving approach with innovative agricultural practices that help increase efficiency and reduce the loss of natural resources .

By applying it, farmers are getting more profit as they increase their productivity . In addition, investing in innovative solutions has other positive impacts:

• New tools that work online and with connected data allow agribusiness management to be done based on real and complete information;
• The technology is also used to protect crops by monitoring growth and detecting crop diseases;
• Automation allows the application of fertilizers, pesticides and water evenly across fields, without the physical presence of farmers;
• The use of a positioning system and GPS facilitates precision agriculture and has helped in planning.

Due to these and other factors, the market as a whole sees digital transformation as the solution to the challenges facing agriculture and rural areas. 

4 digital transformation trends in agribusiness

Since digital technologies are often seen as an opportunity to enable a sustainable future in agriculture and rural areas, nothing better than getting to know those who are at the heart of this transformation, right?

If you are still in doubt about the need to apply them , know that in Europe, the European Parliamentary Commission has already established as one of its objectives “to fully connect farmers and the countryside to the digital economy”, in order to achieve a smarter future. , modern and sustainable food and agriculture.

Soon this determination should spread to other parts of the world. And to prepare your agribusiness management, learn now about important trends for the future of the sector!

1. Agribusiness in the cloud

We know that agribusiness rarely operates from a single location. This is not a type of business that is located in a building or offices. Large tracts of land are used, which are used for production, and there is also a productive and business chain that needs to function efficiently. But how to connect all this?

Cloud technology or Cloud Computing, when implemented in agribusiness , goes far beyond the idea of ​​cost reduction, which is part of the characteristics of this technology: information management, operational efficiency and business integration are goals of different types of companies in this market that the cloud allows to reach.

When it comes to agribusiness, achieving these goals is critical, not only because of the business aspect, but because of the importance that this segment has for the country's economy and for the population. Therefore, the cloud emerges as the solution that fits perfectly into the complexity of a business and agro products.

This is the basis for what is called smart farming. On this topic, the Smart Agriculture Market Size 2021 where the global smart agriculture market was estimated at around US$ 5 billion in the year 2016 and should reach approximately US$ 15.3 billion at the end of 2025, growing 13 .09% per year.

Speaking specifically of software usage in the cloud, it is forecast to see even higher year-on-year growth of around 14% over the period.

One of the fundamental points that makes this a current trend and for the future is that it allows efficient management of the entire production chain .

2. Data analysis in the agro sector

Perhaps one of the most innovative trends in digital transformation is the ability to use advanced analytics to extract data and trends from the agricultural production chain itself.

This can start long before the seed is planted. Data can already help predict which traits will be best for agricultural production, giving farmers around the world the best information to match their location and climate.

All this makes machine learning, using artificial intelligence, and especially data analysis one of the main trends of digital transformation in agriculture. In addition, the recurrent use of tools connected with IoT (Internet of Things) is increasingly recurrent and allows for more in-depth analysis.

According to a market research report published by Meticulous Research , the global Agricultural IoT market is expected to grow at a CAGR (Compound Annual Growth Rate) of 15.2% from 2019 to 2027, to reach a value of US$32 .7 billion in 2027.

Thus, we know that focusing on these analyses, based on what is done and the results obtained, changes the dynamics of this sector. After all, it will be possible to avoid errors and waste.

For this, it is essential to have partners and solutions that use technology to facilitate the use and analysis of data. This is the case of Sky.One : we are partners with several businesses in the area that are already able to overcome challenges and achieve positive results.

3. RFID sensors and tracking

There is a technology trend that can be used after crops are harvested: RFID sensors can be used to track food from the field to the end customer. Consumers will be able to follow a detailed trail of the food they consume from production to the place where it was purchased.

This technology can increase manufacturers' reliability and their responsibility to supply products with the best quality index.

To be clear, RFID (Radio Frequency IDentification) refers to radio frequency identification systems. An RFID system basically consists of an antenna that reads the signal and transfers the information, in addition to a tag that can be present on people, animals, products and packaging. That way, it would be easy to trace production back to the farm or factory where it was processed .

If all plantations had RFID sensors, the risks of contamination would also be lower. These tracking systems can reduce issues around allergens and consumer health requirements.

As for the farmer, the idea that his goods are being tracked will bring relief. After all, they can be sure that their products are safely on the way to the consumer's table.

4. Drones and crop monitoring

Farmers work in fields stretching over hundreds of hectares, which means that the only way to get an aerial view, until recently, was from an aircraft. Imagine the return on investment if farmers could visualize their crops using an inexpensive aerial source?

now being used for crop and area monitoring by every agribusiness as a means of combating drought and other damaging environmental factors. According to MarketsandMarkets research , the global market size of agricultural robots is expected to grow from $4.9 billion in 2021 to $11.9 billion in 2026.

Drones that produce 3D images can be used to predict soil quality through pattern analysis and planning.

Drones are also being used to spray chemicals on crops. Recent studies have shown that they can increase spraying speed compared to other types of machines.

Now that you already know the main trends and how agribusiness management impacts this digital transformation process, how about starting with this innovation? See here how to take the first step with Sky.One , your partner in digital transformation.