Technology is essential to create the agribusiness of the future

Technological developments in the agricultural sector are more crucial than ever. The industry as a whole is facing significant challenges, from rising input costs, labor shortages, and the growing demand for sustainable and transparent practices. There is a growing recognition among agricultural corporations that immediate solutions are needed to address these challenges, and fortunately, agricultural technology, also known as Agritech, presents a promising answer.

This new concept refers to the use of technology in agriculture to improve efficiency, productivity and sustainability in food production. This includes several innovations such as precision agriculture, smart irrigation, biotechnology and automation. In addition, there are significant technological advances that are transforming the sector in areas such as indoor vertical farming, livestock technology, modern greenhouse practices, artificial intelligence and blockchain.

Globally, agriculture faces challenges such as climate change, geopolitical tensions and degradation of natural resources, notably soil quality. With the world population projected to reach 9,1 billion by 2050, according to the FAO, food security becomes a pressing concern. In this context, Agritech emerges as a potential driver for the next great agricultural revolution, with AI enabling more efficient and sustainable production.

Innovations in precision agriculture

Technology has become essential to operating commercial farms. Precision agriculture companies are developing solutions that allow farmers to optimize yields by controlling variables such as moisture, soil conditions, and microclimates. A study by Grand View Research projects that the precision agriculture market will reach $43,4 billion by 2025, attracting a new generation of farmers interested in agile startups.

Blockchain and food traceability

Blockchain is being applied to agribusiness to increase traceability and transparency throughout the food production chain. With the technology, it is possible to create immutable records that track the journey of food from the producer to the end consumer, ensuring the authenticity, quality and safety of products.

These and other technologies are driving innovation and digital transformation in agribusiness, providing benefits such as increased productivity, reduced costs, assertive decision-making, higher product quality and a more sustainable approach to agriculture. 

Agriculture and Artificial Intelligence

According to a report by Markets and Markets, the global AI market in agriculture is expected to grow from $1,7 billion in 2023 to $4,7 billion by 2028, highlighting the pivotal role of advanced technologies in this sector.

Integrating Artificial Intelligence into agriculture not only reshapes current practices, but also paves the way for a sustainable and resilient future. AI can help monitor and adjust each stage of growth in the field, from seed selection to harvest, as well as respond quickly to weather conditions, ensuring optimal crop health and yield.

A collaborative approach to sustainability

Despite the advances, the adoption of agricultural technologies still faces challenges. According to a McKinsey Insight report, only 39% of farmers globally have adopted any technology services, due to uncertainty about the return on investment. Lack of clarity about the return on investment (ROI) of technology is a major reason for low adoption rates. A multi-stakeholder approach is needed to scale the inclusive use of Agritech.

In the face of population growth and environmental pressures, the adoption of Agritech technologies will be vital to ensuring a sustainable and productive agricultural future. Transforming agriculture through technology is not only an opportunity, but an imperative need for the coming years.

*Per Marcos Pinotti (pictured), engagement director at Kron Digital