In recent years, there has been extensive debate about ‘digital transformation’ in the agri-food sector. Its role in supporting climate-resilient growth. Using technology and data in improving the agricultural value chain is critical. In the agricultural value chain, technology and data may help boost efficiency, decreasing waste, raising profitability, and improving sustainability. Here’s a look at how businesses may leverage data and analytics to optimize their supply chains.
1. Market Intelligence
Technology and data can aid in agricultural market information. For example, agricultural data may give useful insights into:
• market trends
• customer preferences
• supply chain disruptions
This allows farmers to make more educated decisions about what to cultivate and how to sell their products. In addition, data may be good for tracking goods from farm to market. This gives visibility into the whole supply chain and enables more effective coordination.
2. Precision agriculture
Precision agriculture employs technology and data to acquire information about soil and crop conditions. As a result, farmers can make educated decisions about planting, fertilizing, and irrigation procedures. Here are some examples of how technology and data may aid in precision agriculture:
• Farmers may improve irrigation and fertilization techniques. This is done using soil and weather sensors to collect data on soil moisture, temperature, and nutrient levels.
• Drones outfitted with sensors and cameras may collect data on crop health and growth. This allows farmers to identify and solve problems early on.
• Farmers may utilize GPS technology to map fields. It makes tracking soil and crop conditions easier and planning planting and harvesting activities.
3. Financial Inclusion
Mobile payments and blockchain technology can improve farmers’ financial access. This allows them to participate more completely in the value chain. As an example:
• Farmers may get payments for their produce through mobile payments. This way, they engage in the official banking system and obtain financing.
• Blockchain technology can improve transparency and security in the agricultural value chain. As a result, smallholder farmers access funding more easily.
4. Supply chain administration
Data is good for tracking goods from farm to market. This gives visibility into the whole supply chain and enables more effective coordination.
Technology and data can help to optimize the agricultural value chain significantly. Precision agriculture and digital supply chain management tools help various value chain stages become more efficient, productive, and sustainable.
