Technological innovations and trends that should move agribusiness in 2022

We know that agribusiness is one of the pillars of the Brazilian economy. In the first half of 2021, the sector's GDP grew by 9,81% compared to the same period in 2020, an amount equivalent to R$223 billion - according to calculations carried out by Cepea (Center for Advanced Studies in Applied Economics ), from Esalq/USP, in partnership with CNA (Brazilian Agriculture and Livestock Confederation). When we analyze in detail, we also observe that agriculture has emerged in relation to livestock farming, mainly due to the high cost of inputs required by this sector.

In a scenario of challenges, high costs and climate instability that have significant impacts on the sector, technology has once again played an important - and even fundamental - role in increasing production. Therefore, below I highlight four themes that should be on the agribusiness sector’s radar in 2022:

Precision Agriculture

There are already a series of robust solutions on the market, which range from planning the distribution of inputs to preparing the property to receive them, which is known as precision agriculture.

This production methodology is not new, it is based on the use of technologies that aim to facilitate and modernize rural properties and has management based on data collection, gathering and processing a series of information and characteristics of the productive area. Secondly, there is also management planning, in which strategies and guidelines are provided to improve the management of inputs, based on standards and requirements established by the producer himself - here different systems and solutions can be applied, including Artificial Intelligence for data analysis. And, finally, precision agriculture can also predict the application of inputs automatically and with greater technical rigor. All of this can be a real booster for Agriculture 4.0 in Brazil.

5G technology

The arrival of the fifth generation of mobile networks will certainly cause one of the biggest transformations in the field, allowing greater data transmission, quickly and with greater range. Also due to the operating cost being lower than that of 4G technology, 5G makes it possible to implement transmission towers in more remote areas, providing greater connectivity to rural properties. To understand the extent of the impact that this technology will bring to agribusiness, the Brazilian Rural Space Atlas, published by IBGE (Brazilian Institute of Geography and Statistics), points out that of the 5,07 million rural properties, 3,64 million still operate offline.

Although the implementation of 5G is still in the process of happening, given the space auctions and other necessary conditions, studies by the Ministry of Agriculture, Livestock and Supply (Mapa) estimate that with the 25% expansion of connection in the field, there will be a 6,3% increase in gross production value (VBP). This will be possible because 5G improves and boosts the adoption of IoT (Internet of Things) devices, enabling the use of sensors and equipment to monitor crops and animals; as well as expanding the use of drones, connected to processing systems and software; and other complementary technologies.

Marketplace in agriculture

Another trend that should mark next year is the use of the marketplace in agribusiness. These digital sales platforms have become very consolidated in recent months, especially during the pandemic, facilitating the sale of various products online, quickly and dynamically. For agribusiness, it is no different.

Agricultural marketplaces connect rural producers to distributors and buyers of specific products, enhancing sales and the flow of rural production. This type of digital sales also allows the reach of small rural producers to grow, enabling their inclusion in a large scenario with greater exposure, greater negotiations and low operational costs.

ESG schedule

An important agenda in several sectors of the economy, the ESG agenda gains prominence in agribusiness. Among sustainability biases, concerns about greenhouse gases take on a new level with carbon credits. Carbon credits have served as currency for business, creating a multimillion-dollar market for those players who have not yet managed to reduce their impact on gas emissions.

The carbon credit market still needs to have clearer rules, but this should be resolved soon, as there are already countries approaching it as a global "new commodity". According to a survey by Bayer, the area occupied by agriculture in Brazil is responsible for 500 million tons of carbon equivalent (tCO2eq) which, converted into money, corresponds to US﹩5 billion. In this scenario, research and application of technologies serve as the basis for replacing and improving cultivation and farming techniques, in order to reduce the use of non-renewable fuels and biomasses with renewable biomasses.

There are several predictions and projections for agribusiness next year, but the fact is that it should remain a major driving force of the national economy. With this in mind, it is worth staying aware of studies, trends and innovations that are being encouraged by public and private initiatives, as well as investments made in technologies and solutions. The resources and technology are there to support Brazil's advancement on the Agriculture 4.0 journey.