Digital transformation is part of various sectors of the economy and with field production is no different. Increasingly frequent, the application of IT in agribusiness is a guarantee of increased productivity and efficiency for producers and rural businesses.
From data collection and processing, the agribusiness sector benefits from the application of IT to increase the profit margin and achieve good results, becoming increasingly competitive due to the innovation capacity provided by IT in agribusiness.
This article can help you make your business more profitable with the use of information technology. Read on and browse through the topics:
- What is IT?
- The digital transformation in the field
- How does technology benefit agribusiness?
- The future of agribusiness with IT
- Monitora and IT in your agribusiness
What is IT?
Before talking about IT in agribusiness, let’s talk about what information technology is, and what the main areas of IT are for processing, communicating and transferring data and other sources of information.
Information technology is the use of computers, networks, and different physical devices, storage, infrastructure, and processes to create, store, process, exchange, or protect electronic data.
When it comes to the use of IT, the term is usually associated with business operations, with different uses and purposes for technology used in entertainment or in the personal daily life of individuals.
In the business context, the IT department is responsible for ensuring that a given organization’s systems, networks, data, and applications are perfectly connected and function properly.
Today it can be said that IT is subdivided into three main areas, each of which has its own distinct goals:
- Implementation and maintenance of business apps and services, with servers, networks and storage;
- Monitoring, optimization and troubleshooting of services and infrastructure;
- Supervision of app, service, and infrastructure security.
How important is information technology?
With the paradigm shift caused by the advancement of technology and electronic devices, data is currently at the center of the dispute of industries in various parts of the world.
In this sense, for a business to remain competitive, it must increase its capacity to collect data to transform it into important and useful information for the company. And it is through IT that the means to develop, process, analyze information are provided.
And why is data processing essential in the recent business context? Because business strategies are impacted by the extracted data, such as product development, sales, marketing, accounting, among others.
The digital transformation in the field
The idea of an agribusiness that makes use of manual labor, based on the labor of rural workers, is increasingly distant from the reality in the field for the production of inputs.
After the technological advances implemented strongly in the country, especially after the early 2000s, rural producers and agribusiness companies now benefit from the application of IT in agribusiness, which makes the production process more economical and efficient.
Due to the natural limitation imposed by the ability of rural workers to manage the entire demand for products, as well as the reduced knowledge about the peculiarities of the soil or fertilizers, harvests were often compromised, impacting results and profitability.
With the introduction of IT tools in agribusiness, it is possible to observe an increase in production predictability, as well as the provision of new information to guide the rural producer’s decision-making process, which achieves better yields in the production of items in the field.
Besides the implementation of software development technologies in the field, new production methods, with the entry of transgenic products and the installation of sensors, which assist in the development of precision agriculture, it is estimated a 40% increase in agribusiness productivity.
Smart agriculture
The imperative of digital transformation in agribusiness is related to the forecasts for the increase in the world population by 2050, which is expected to reach about nine billion people.
Thus, agribusiness must reconcile the challenge of providing nutritious food, produced in a short period of time and using sustainable techniques, with an increase in productivity of up to 70% to meet the food demand of the world population.
For those in the industry, especially in large companies responsible for the end-to-end digital change and transformation of agribusiness, the inclusion of IT in agribusiness also works as a guarantee of compliance with the UN Sustainable Development Goals.
Among them, goal number nine, which refers to the Industry, Innovation, and Infrastructure chain, to improve the production chain with the increased digitalization of agribusiness.
Thus, with the simplification of the production process provided by IT in agribusiness, and the increase in the volume of data obtained, it will be possible to make this sector more agile and dynamic, with positive impacts on society, especially on the economy.
How does technology benefit agribusiness?
Data from the Institute of Applied Economic Research (IPEA), indicate that agribusiness in Brazil, until November 2022, presented a commercial surplus of US$ 123 million, a result 37% higher than the one registered in 2021.
In 2021, according to information from the Center for Advanced Studies in Applied Economics (Cepea/USP), agribusiness was responsible for 27.4% of the Brazilian Gross Domestic Product (GDP), making the sector a profitable and solid option for investments.
However, these numbers were not always so. Studies by the Brazilian Agricultural Research Corporation (Embrapa), point out that Brazil used to have agriculture based on manual labor, a scenario that was only changed after investment in the rural sector.
The investments are represented by public policies and research oriented to an evolution in the volume of products in the sector, characterized by different segments, such as farming, agribusiness, inputs, among others.
However, to keep the rates at high levels, the development of agribusiness must be based on a smart and predictable agriculture, which integrates IT elements in agribusiness, such as digitalization, machinery, and optimization techniques to tread a path of great opportunities.
With this in mind, here’s how IT in agribusiness can be applied to foster the development of the so-called Agro 4.0, interesting both for trading companies and software development, as well as for those who produce machinery and other agricultural supplies.
Increased efficiency
Efficiency in agricultural production is not only restricted to the process of preparing the land for planting and harvesting. In the course of the production process, the broad and complex demands of agriculture can create surprises. Thus, adopting control and predictability tools reduces unexpected situations.
With the use of intelligent software, the production manager obtains important data, in real time and with the possibility of continuous analysis. With this, strategic decisions can be adopted, such as predicting the best harvest season and the best time for sales.
In this sense, if there is any problem during the production process, the application of IT tools in agribusiness helps to reduce damage and correct distortions, avoiding losses and maintaining production efficiency.
Storage and guidance through data
Making use of reliable data in agriculture can transform your business. After all, from the information generated in the systems, the data can provide important references for the rural producer and large companies.
Initially, there may be some difficulty in implementing a data culture in the industry. However, the benefits associated with the simplification of the routine and predictability provide security for agribusiness.
For Agro 4.0, the digital transformation of agriculture is also about collecting data from satellite imagery, ground sensors, and global positioning and geographic information systems (GPS).
Applications for mobile devices such as tablets or smartphones are also good sources for analyzing weather forecasts, monitoring pests, irrigation systems, and acting preventively to maintain the quality of water, air, and soil.
Production control
Agriculture 4.0 is marked by predictability mechanisms that provide exact control of agribusiness production. Unlike manual work, which can suffer variations in the production chain, the application of IT tools in agribusiness transforms the routine of companies and rural producers.
Planning, monitoring and tracking the routine of employees and machines are among the advantages of agricultural-oriented software, which establishes delivery dates and estimates the quality of the product.
Productivity maps, satellite images, unmanned aerial vehicles, georeferencing software and systems contribute to the adequate planning of land use and occupation, fundamental for good agricultural production, with increased production results.
Cost reduction
Considered as one of the fundamental points when implementing IT in agribusiness, cost reduction happens when there is an increase in the productive efficiency of the business, especially with lower maintenance expenses in the productive stages.
With the inclusion of automation-based machines, the operational cost is lower, due to more optimized work, lower spending on labor, and reduced time spent on monitoring production.
This is because monitoring production in the field can be an exhausting process, especially on large farms. Thus, with the installation of software and apps, this monitoring can be done through a screen, with the elimination of unnecessary bureaucratic activities.
Automation
The inclusion of IT techniques in agribusiness contributes to reducing the development of repetitive work, which are constantly sources of errors and harm productivity.
The so-called Automated Robotic Process can be implemented by investing in technology and acting directly in reducing human activity. Thus, stock control, invoice issuance, and GPS-guided work are some examples of automation in agriculture, which provides agility and reduces the occurrence of errors.
The future of agribusiness with IT
Among the various transformations provided by IT in agribusiness, the reduction of barriers to adhere to changes is the main one. Thus, the search for new solutions involves the adoption of artificial intelligence, drones, and other trends in smart agriculture.
As change is fundamental to keep productivity high and increase results, companies and rural producers already know they can count on the help of technology as an ally in the productive process in the field.
With the arrival of 5G technology in Brazil, the Internet of Things (IoT) is already a reality. With this, innovation and sustainability become watchwords in the sector, which, according to studies by McKinsey and Company, may add about 500 billion dollars to the global GDP, if there is proper implementation of connectivity in agribusiness.
Therefore, knowing the technological trends for agribusiness is an important task for companies and farmers who want to digitalize their business and become a reference and leadership in the market.
Biotechnology and genetics
In the field of seed production, biotechnology and genetic research can develop sustainable pesticides that are not harmful to the environment and do not harm the health of consumers. In the segment of the UN SDGs, it helps to improve the sustainability of agribusiness.
Big Data
Management software contributes to the quality of decision making of rural producers, with the generation of reports containing data and other important information for cost reduction and improvement of property management, with increased productivity.
Autonomous equipment and machinery
The autonomous equipment is already a reality in several properties of agribusiness in the country, which dispense the presence of human workers and can be guided by means of a georeferencing system and with the control done by smartphone.
Thus, reduction in labor costs and increased productivity, because the machines can work for 24 hours, are one of the advantages of this technological equipment.
Artificial Intelligence
Artificial Intelligence can be responsible for increasing the predictability of environmental conditions and improving the operational efficiency of the farm. Thus, computer vision, anticipation of market trends and automation of the operational process are some of the applications of this technology.
With the help of 5G and IoT, artificial intelligence can be applied in rural properties and make the whole production process connected, with cost solutions for all pockets.
Recognizing the importance of AI in agribusiness, the Ministry of Science, Technology and Innovations, in partnership with Embrapa, created the Artificial Intelligence Innovation Network, considered the largest in Brazil in the segment. The idea is to encourage the use of AI in agriculture.
Sensors and drones
Sensors and drones are already used by Brazilian producers and increase the practicality of production control. The sensors can be for irrigation and information gathering, such as the pH level of the soil.
The drones, in turn, contribute to the complete view of the rural property, with capacity to capture images and fly over the extension of the land. Similarly, drones can discover points where pests are present and help eliminate the invaders quickly.
Management software
Considered as one of the most used resources in agribusiness in Brazil, management software works as task optimizers, with the possibility of facilitating activities and providing a complete view of the business.
With management software, the rural producer can store data in the cloud, so that the monitoring of activities can be done in real time and from anywhere.
For those who own different rural businesses, the advantage of management software is in the ability to remotely manage administrative activities. With this, you stay in control even when you are traveling and improve the profitability of the business.
Monitora and your agribusiness’ IT
Small or medium-sized businesses, as well as independent farmers, may feel that investment in technology solutions has the potential to exceed the business budget.
However, making a digital transformation in agriculture requires the analysis of metrics with reliable data, rather than intuitive decision-making, which is increasingly in disuse when talking about Agro 4.0.
The reduced confidence to hire third parties or the fear in the quality of delivery are also objections pointed out by those who want to make a digital transformation, but are not yet proficient in software development or do not know exactly which digital path they should follow.
For this reason, it is essential to count on the help of a business specialized in software development, such as Monitora, a totally Brazilian company focused on providing digital solutions.
With Monitora, your business’ digital transformation and technology development process is done by agile teams, also called squads, fully trained to incorporate new solutions and 30% more efficient than internal technology teams.
Through the aid of integrated software, it is possible to automate and digitalize production processes, such as sales flow and improvement in the management of the property and the activities of the cooperative members. Real-time information and references about the property’s situation are also included when it comes to adding IT to agribusiness.
Considered as one of the largest agricultural cooperatives in Brazil, Coopercitrus promoted the digital transformation and innovation of its business through the creation of Campo Digital, agricultural management software integrated with suppliers and back office teams.
To talk to an expert and add IT tools to your business, visit our website. The future of agribusiness has already begun.
Text automatically translated from Portuguese to English
