Addressing Costs through Technology: The Priority for Brazilian Farmers in 2024

Innovation has served as the primary catalyst for the growth of Brazilian agricultural production over the past three decades. Notably, soybean cultivation in Brazil has experienced a remarkable sixfold increase, owing to a combination of enhanced yields and the expansion of cultivated areas. Key innovations contributing to this growth include no-till farming, advanced soil management techniques, the adaptation of crop varieties to tropical climates, advancements in biotechnology, and the implementation of integrated pest, disease, and weed management strategies leveraging both chemical and biological agents. Additionally, precision agriculture has played a pivotal role in optimizing resource utilization and enhancing overall productivity.

In an article authored for HUB Agtech Garage, now known as PWC, in mid-2022, I explored seven digital technologies that I consider to be disruptive and essential for bolstering competitiveness in the agricultural sector in the years ahead. These technologies encompass autonomous vehicles, the Internet of Things, connectivity solutions, augmented reality, artificial intelligence, 3D printing, and the metaverse. Detailed insights into these technologies can be found in the following link: 

https://www.pwc.com.br/pt/consultoria/agtech-innovation/agtech-innovation-news/artigos/2022/7-tecnologias-digitais-para-aumentar-a-competitividade-do-agronegocio0.html

It is evident that forthcoming agricultural seasons will witness a more modest expansion of cultivated land and tighter profit margins for farmers. This trend is attributed to the elevated stock-to-use ratio of agricultural commodities, which stands at its highest level in recent years, as depicted in the figure below.

Farmers face four major challenges in their businesses: increasing productivity, reducing risks, ensuring commercialization, and reduce costs.

This year, our focus to assist farmers in securing their profitability is on cost reduction, with the adoption of innovations already available in the market but underutilized by farmers being essential.

Today, I will highlight three innovations that can significantly contribute to cost reduction in the upcoming crops:"

1 - Increasing Efficiency in Operations through CONNECTIVITY

Our objective is straightforward: to deploy our state-of-the-art equipment and machinery in the field, integrating them to furnish farmers with information that streamlines preventive maintenance, ensures timely part replacements, facilitates cost optimization, and enhances crop management practices.

At present, we have 1.1 million hectares connected, enabling us to furnish farmers with invaluable real-time data, including minimized idle operation periods, diesel consumption metrics, optimal working conditions, maintenance alerts, and enhanced efficiency in pesticide application.

By connecting their equipment with our technology, farmers gain access to these capabilities on a daily basis, empowering them to reduce costs and optimize their agricultural operations.

• Reducing idle operation time.

  
  

  

  
  

• Reducing diesel consumption, which is a significant short-term cost.

  
  

  

  
  

• Checking if it is operating within the ideal working range and providing alerts for maintenance, review, and part replacement.

  
  

  

  
  

• Enhancing efficiency in pesticide application involves managing a range of variables that we can control and provide to the farmer through the straightforward connection of their machinery.
  

2 - Cost Reduction through ARTIFICIAL INTELLIGENCE

One of the significant expenses for farmers lies in logistics, whether it involves acquiring crop  inputs or transporting produce. 

A promising innovation aimed at reducing these costs is the Go Flux platform (https://www.goflux.com.br/), which leverages data and artificial intelligence to aid farmers in logistical decision-making. This platform provides farmers with access to the best routes and prices through online quotations, available 24 hours a day.

Typically, farmers make these decisions by either utilizing their own fleet or entering into contracts with established carriers. The Go Flux platform assists farmers in identifying optimal routes and pricing through its online quoting feature, which operates around the clock, seven days a week. Moreover, it offers predictive capabilities for future freight needs.

Currently, this solution is primarily targeted at medium and large-scale shippers, such as trading companies. However, I am confident that its scalability will eventually make it accessible to all farmers.

3 - Streamlining Input Costs through Marketplaces and Online Platforms

While WhatsApp has emerged as the primary quotation tool for farmers and has become an integral part of their daily routines, Marketplaces such as E-agro, Orbia, and Agrofy offer a wider selection of products, aiding farmers in price comparison and more efficient purchasing.

One technology that I find particularly noteworthy is developed by the Agriacordo platform (www.agriacordo.com). This platform stands out by providing month-by-month pricing information and product price trends, assisting farmers in determining the optimal timing for their purchases.

Currently, this tool is exclusively available to crop input distributors in Brazil. However, I am optimistic that if Agriacordo replicates its success from Argentina, it could become the premier management tool for rationalizing crop input costs for farmers.

These innovations are already available to farmers, and it is up to us, as agronomical engineers, and technology enthusiasts, to simplify and facilitate their use. We have the privilege of working in an industry where most of the farmers are young and receptive to technology.

If we have dedicated the past years to increasing productivity, now is the time to focus our efforts and technologies on rationalizing costs.

In a world where every penny counts, leveraging technology to streamline operations, optimize resource utilization, and minimize expenses is not just a competitive advantage, but a necessity.

 Let's embrace these advancements and empower farmers to thrive in an ever-evolving agricultural landscape, where efficiency and sustainability go hand in hand. Together, we can pave the way for a more resilient and prosperous future for agriculture.