AgTech adoption by farm's segment and production phase

Digital agriculture and farming phases

Food production involves multiple phases, from planning and preparation to marketing and distribution.

In recent years, the role of digital technologies in food production has become increasingly important, as they offer significant potential for enhancing productivity, reducing waste, and improving overall sustainability.

Digital technologies, such as precision agriculture tools, data management systems, and automation, are transforming the way food is produced and distributed. By incorporating these innovations into each phase of the food production process, farmers and producers can make more informed decisions, optimise resource use, and minimise their environmental impact. Moreover, digital technologies can facilitate better communication and collaboration between various stakeholders, including farmers, suppliers, processors, and retailers, ultimately leading to more efficient and resilient food systems.

In the planning and preparation phase, digital tools can help assess land suitability, predict weather patterns, and analyse market demand to make informed decisions about crop and livestock selection. During sowing or planting, precision agriculture technologies enable accurate seed placement and optimal planting density, ensuring efficient use of resources.

In crop management and animal husbandry, digital technologies play a crucial role in monitoring crop health and livestock well-being. Sensors, drones, and satellite imagery can provide real-time data on soil moisture, nutrient levels, and pest infestations, enabling targeted interventions and reducing the need for blanket applications of chemicals or water.

Harvesting and animal production can also benefit from digital advancements, with automation technologies streamlining these processes and reducing labor costs. For instance, autonomous harvesters and robotic milking systems can significantly improve efficiency and reduce the physical strain on farmworkers.

Post-harvest handling and storage can be enhanced through digital tools that monitor temperature, humidity, and other factors to maintain product quality and minimize spoilage. Additionally, traceability systems and blockchain technology can improve transparency and accountability in the food supply chain.

Digital technologies can revolutionise marketing and distribution by connecting producers directly with consumers through e-commerce platforms, reducing food waste by better matching supply and demand, and improving the efficiency of logistics and transportation.

By integrating digital technologies into each phase of food production, the agriculture industry can better meet the challenges of feeding a growing global population while minimising its environmental footprint and promoting sustainable, resilient food systems.

Farms segmentation

Four main categories of food production play a crucial role in this system:

·     large farms (> 1.000ha),

·     middle size farms,

·     smallholder farmers (< 2ha),

·     indoor intensive production

Each of these actors contributes to the overall food system in unique ways and serves distinct purposes.

AgTech adoption by farm segment

The adoption of digital agriculture technologies varies among the four segments of large farms, medium size farms, smallholder farmers, and indoor intensive production, primarily due to factors such as financial resources, access to technology, and specific needs of each segment.

Large Farms

• Adoption: Large farms are typically early adopters of AgTech and digital agriculture, as they have the financial resources and infrastructure to invest in new technologies.
• Reasons: The need for efficiency and optimization drives large farms to adopt digital solutions that help manage resources, monitor crop health, automate processes, and maximise yield. Additionally, economies of scale make the investment in technology more cost-effective.

Medium Size Farms

• Adoption: Medium size farms have a moderate adoption rate of AgTech and digital agriculture, depending on their financial capabilities and market demands.
• Reasons: These farms can benefit from adopting digital technologies to improve productivity, reduce costs, and maintain competitiveness in the market. However, their smaller scale compared to large farms might limit their ability to invest in expensive technologies. The focus on specialty crops or regional markets may also influence their choice of technology adoption.

Smallholder Farmers

• Adoption: Smallholder farmers generally have a lower adoption rate of AgTech and digital agriculture, primarily due to financial constraints and limited access to technology.
• Reasons: Small-scale farmers often lack the resources and infrastructure needed to invest in and implement digital solutions. Additionally, their focus on local food security and traditional agricultural practices might make them less inclined to adopt new technologies. However, mobile-based technologies and low-cost solutions can help bridge the gap and improve smallholder farmers' access to AgTech.

Indoor Intensive Production

• Adoption: Indoor intensive production systems, such as greenhouses, hydroponics, and vertical farming, have a high adoption rate of AgTech and digital agriculture.
• Reasons: These systems rely heavily on controlled environments, which require advanced technologies for monitoring, automation, and resource management. The need for precision agriculture, energy efficiency, and waste reduction drives the adoption of digital solutions in indoor farming systems. Furthermore, the typically urban locations of indoor farms make access to technology and resources more feasible.

Large Farms: DA adoption by farming phases

Large farms primarily produce main commodities, which are the staple crops and livestock products that form the foundation of the global food supply.

These farms often cover thousands of acres and are highly mechanised, with a focus on efficiency and economies of scale. They contribute significantly to the global food supply by providing essential foodstuffs to the masses. Some of the main commodities produced by large farms include:

·     Grains: wheat, corn, rice, and barley

·     Oilseeds: soybeans, rapeseed, and sunflower seeds

·     Sugar crops: sugarcane and sugar beet

·     Livestock: cattle, pigs, and poultry

·     Dairy products: milk and cheese

Middle Size Farms: DA adoption by farming phases

Middle size farms produce a variety of different foods, often specializing in particular regions or markets.

These farms typically range from a few dozen to several hundred acres in size and may focus on a diverse array of crops, livestock, or both.

They play an essential role in the food system by providing diverse and regionally-specific food products, supporting local economies, and preserving traditional agricultural practices. Examples of products from middle size farms include fruits, vegetables, specialty grains, and artisanal dairy and meat products.

Smallholder Farmers: DA adoption by farming phases

The 608 million smallholder farmers around the world working on less than two hectares of land, are estimated to produce 28-31% of total crop production and 30-34% of food supply on 24% of gross agricultural area.

They are predominantly found in developing countries, often cultivate to support their families and local communities.

These farmers often lack access to advanced technologies, resources, and infrastructure, which can limit their productivity and overall contributions to the global food supply. Nevertheless, smallholder farmers play a critical role in the food system by supporting local food security, preserving biodiversity, and maintaining traditional agricultural knowledge. Their production typically includes staple crops, fruits, vegetables, and small-scale livestock.

Indoor Intensive Production: DA adoption by farming phases

Indoor intensive production methods, such as greenhouses, hydroponics, aquaponics, aeroponics, and vertical farming, utilise controlled environments and innovative technologies to maximise yield, reduce resource consumption, and minimise environmental impacts.

These systems can produce a wide variety of crops, including leafy greens, herbs, fruits, and even fish (in the case of aquaponics).

Indoor intensive production plays a significant role in the food system by providing fresh, locally-grown produce in urban areas, reducing the need for long-distance transportation, and offering a more sustainable approach to food production.