Study ABN Amro
Manufacturers in particular benefit from agricultural data
In the agricultural sector, hefty amounts of data are generated and used for all kinds of purposes. Especially manufacturers and processors of agricultural products are currently reaping the benefits of this. This is according to a study by ABN Amro.
Investment bank Goldman Sachs estimates that agricultural productivity can be increased by 70% by using precision farming. This is also necessary to be able to continue feeding a growing world population. This productivity growth can mainly be achieved outside the Netherlands, thinks ABN Amro.
In 4 decades, Dutch agricultural production increased by 45%, while the acreage of agricultural land shrank by 50.000 hectares. The Dutch farmer already scores gold in the Olympic Games of agriculture.
2
percent
Number of innovators low
Manufacturers and processors of agricultural products in particular know how to use big data smartly. Farmers are innovative, but the number of entrepreneurs who are the first to implement innovations remains below 2%, the bank writes. Greenhouse horticulture in particular is innovative, while pig farming is lagging behind. This conclusion is drawn from the WUR Innovation Monitor. Companies are looking for the next step and how to take it.
Value data not equal
Entrepreneurs are hesitant when it comes to sharing data at the company level. It is unclear what they will get in return. The value of data is not the same for all parties in the chain. Sharing information can weaken competitiveness.
ABN Amro also sees privacy dilemmas and ownership issues in other sectors. Moreover, knowledge and money are needed to convert raw data into useful information. Investment is only made when the return on investment is known.
Manufacturer sees opportunities
After financially favorable years, ABN Amro sees significant investments in new technology, for example in arable farming. This sector is therefore at the forefront when it comes to innovation. The bank also sees opportunities for start-ups, although it is currently mainly the large companies that seize data; including John Deere, Syngenta and FrieslandCampina. The latter has set up a cooperative for data sharing, together with CRV and Agrifirm.
For manufacturers, there is an important side effect in addition to efficiency improvement. The knowledge can be exported in the future, for example to China. Greenhouse builders in particular are currently benefiting from this, due to a growing horticultural sector in the country.
Niels van der Boom
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