Moving Beyond The Promise Of Big Data

The agricultural supply chain has demonstrated remarkable resilience in the face of substantial disruption, but the ag sector’s digital transformation journey is far from complete.
The agricultural supply chain has demonstrated remarkable resilience in the face of substantial disruption, but the ag sector’s digital transformation journey is far from complete.
(MGN)

by Ryan Hoffman, territory sales manager, Proagrica

The ag sector has talked about the (broadly) unrealized potential for Big Data for years. Frankly, it’s been tiring. We’ve seen a lot of talk about its promise when the infrastructures are in place to deliver on it.

We’ve been working to this proviso for so long now that it’s become a handy get-out clause for why Big Data is yet to achieve its full potential. However, the ag industry must accept some responsibility for the slow progress and this comes back to the perceived wisdom that siloing data gives an agribusiness a competitive advantage. It doesn’t. A problem shared is a problem collectively solved.

Fortunately, attitudes do seem to be changing. Disruption to working practices on the back of the pandemic has given ag a fast-tracked lesson in the value of tech. COVID-19 has been a catalyst for a much-needed change in attitude towards digital and Big Data. 

There have been some major leaps forward over the past 12 months - especially around tech and collaboration. Notably, the agricultural supply chain has demonstrated remarkable resilience in the face of substantial disruption, but the ag sector’s digital transformation journey is far from complete. 

Forecasting against greater challenges on the horizon

It’s vital that our industry keeps this momentum going because even greater challenges are just around the corner. Climate change is just one example. 

Weather patterns are expected to become increasingly erratic as global temperatures rise. This time last year, substantial swathes of Australia’s farmland were in flames and in the US we’re already seeing more extreme weather events, such as Derechos. McKinsey estimated that last year’s Iowa Derecho cost growers between $600m-1.8bn in revenue as corn and soy harvests were destroyed.

Shifts in consumer behaviour in response to changing tastes or on the back of broader socio-economic factors equally have the potential to shake up the sector. These too can put businesses on the back foot and those that aren’t flexible enough will struggle to adapt.  

We can be sure big changes are coming and it’s up to the market to respond to them. For example, we recently surveyed consumers’ attitudes to food and the results revealed that two fifths (39%) of US consumers have considered going vegetarian or vegan since the pandemic began.

Uncertainty in times of rapid change places additional pressures on the operations of agribusinesses, which have perhaps traditionally been less susceptible to this. The answer lies, of course, in data. Having the capacity to capture actionable insights coupled with the agility to act upon them will increasingly become an indicator of success in our space.

Seeing the forest from the trees

Data-led insights can’t protect a field against the most unpredictable weather patterns that arise from our changing climate. But we can use data to better protect our crops on a day-to-day basis: for example, data can help an agronomist advise a grower on where to plant the most heat-resistant crops, as well manage the indirect impacts from pests and pathogens.

The rich insights offered by data embed greater agility into the supply chain and allow agribusinesses to set strategy. Data-led insights can help inform real innovation in manufacturers’ product development at a time we’ll need this more than ever.. 

There are tangible benefits for ag retailers too, who will be able to call on data to better advise growers on what’s right for them and specify new products to complement the agronomist’s recommendations. A data-informed approach will also allow them to optimize their own supply chain in spotting product gaps and opportunities, or in responding to particular customer challenges.

The industry will become better placed to meet the needs of consumers too. Data will allow each player in the supply chain to demonstrate their sustainability credentials, making those sustainability scores genuinely meaningful.

Unlocking Big Data’s potential by bridging the digital experience divide

There’s certainly no lack of data, the issue is it’s siloed and held across incompatible systems. The net result is a wasted opportunity. 

As we’ve seen, there are clear commercial imperatives for sharing data - even with your competitors.
Unsurprisingly, the main obstacle that prevents the industry from benefiting is trust - or rather the lack of it. 

Thankfully, this stalemate does not have to persist. The keys that will unlock the potential of Big Data in ag are the emerging digital platforms that unify and anonymise data from across the supply chain. We’re on the brink of something really exciting that will benefit the whole sector. First, the industry must collectively get over it’s long-standing fear of letting go of IP and instead embrace  collaboration.

Many of us have learned - by necessity - to embrace digital over the last year, so there’s never been a better time to make this happen. Democratising data will, of course, mean making the technologies easy to use for all, regardless of whether the user is a digital native or naysayer, jarring or over-complex experiences may hinder any progress we’ve made to date. Feedback from our own customers suggests they really do want to take advantage of all data has to offer though. 

Finally, we’re reaching the point where we have the resources, the technology and the market conditions to deliver on the promise of Big Data.
 

 

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