Unveiled challenges, successful digital projects.
Digital transformation is reshaping Brazilian agribusiness, bringing benefits such as increased productivity, cost reduction, and improved sustainability. However, it also brings challenges that need to be overcome with investment in advanced technologies and strategies.
In this article, you will read abou:
Challenges and sustained growth through digitalization
Overcoming inefficiencies in communication and data in the field
Benefits of agribusiness transformation
Impact of Digital Transformation
Digital transformation is redefining agribusiness. According to the World Bank, the sector accounts for 10% of the GDP of Latin American countries. In Brazil alone, it already represents 24.4% of the GDP, estimated at R$ 2.63 trillion (Cepea/CNA). And part of this result can be attributed to innovation.
Let's examine together how the adoption of digital technologies is driving growth and efficiency in agriculture, highlighting the challenges and opportunities that accompany this transition.
Challenges and sustained growth through digitalization
Since the 1970s, Brazilian agribusiness has stood out for adopting the practice of two annual harvests, a milestone in its innovation journey. This evolution was not only due to advances in machinery but also to significant investment in research and development, resulting in an impressive 59% increase in the gross value of agricultural production.
The rise is marked by an average annual increase of 1.4% in efficiency (Brazil, 2021), mainly due to the reduction of land use and intensive incorporation of advanced technologies.
This transformation process is part of a larger phenomenon known as Agro 4.0, a direct analogy to the Industry 4.0 revolution. In this context, the digitization of the agricultural sector promotes a paradigm shift: from decisions based on intuition and experience to a model driven by concrete data.
The implementation of precision agriculture has already brought significant improvements in agricultural productivity, but digitalization promises to further optimize the entire production chain. This optimization extends from the supply of inputs, such as seeds and pesticides, to inventory management, orders, geolocated pest monitoring, and remote product tracking. The adopted process facilitates planning and integration among the various sector agents.
In this scenario, the growth of digitalization in Brazil is driven by process automation, resource optimization, and improved decision-making, highlighting the need for digital solutions that effectively integrate with the complex operations of agribusiness.
Digital transformation is already a tangible reality, driving sector growth and competitiveness. According to McKinsey data, 39% of global agricultural production already benefits from technology, and in Brazil, this number jumps to 50%, with much of this advancement attributed to the use of remote sensors.
However, the journey toward full digitalization faces significant obstacles, such as resource scarcity, the need for workforce training, the vast territorial extension of the country, resistance to change, and the inherent complexity of agricultural operations.
Overcoming these challenges could further elevate the technological level of Brazilian agribusiness.
Promising scenario of agribusiness
In Brazil, the largest companies in the sector are responsible for a significant portion of agricultural production. These companies are investing in digitalization to improve their efficiency and competitiveness but face challenges such as:
Complexity of agricultural operations: these operations involve a variety of factors such as climate, soil, crops, and inputs. This can make it difficult to develop digital solutions that align with the specific needs of agribusiness.
Lack of resources: often companies, especially multinationals, have the financial and human resources needed to invest in digitalization. However, they may face challenges of scale and system integration.
While the challenges are significant, the benefits outweigh them by far. Digital technologies contribute to:
Increased productivity: automation of tasks, improved process efficiency, and more assertive decision-making. This can lead to increased productivity and competitiveness.
Cost reduction: cost reduction, improved resource management, and increased profitability.
Improved sustainability: reduction of the environmental impact of operations.
Overcoming inefficiencies in communication and data in the field
But agribusiness faces unique challenges in terms of connectivity and access to real-time information. According to the Agtech Report 2023, 73% of Brazilian rural properties do not have internet access.
Therefore, solutions such as asynchronous apps that work offline, for example, work well in this scenario. These not only allow access to critical information and task management but also enhance communication between work fronts, resulting in better planning and execution of agricultural operations.
Estimates indicate that connectivity can increase field productivity by up to 20% and reduce operating costs.
Benefits of agribusiness transformation
The importance of a strong digital presence
With 87% of Brazilian farmers using the internet to research agricultural products and services, the importance of a robust digital presence is undeniable. For agribusiness company leaders, this means investing in informative and interactive digital platforms that not only disseminate valuable information but also engage and educate their target audience.
Impact of Digital Transformation
Digitization facilitates efficient communication in areas with limited connectivity, improving planning and task execution and reducing delays and operational errors.
For Brazilian agribusiness leaders, digital transformation offers a unique opportunity to reshape operations, drive sustainable growth, and strengthen their position in the global market.
The adoption of advanced technologies and innovative digital strategies is essential to overcome the sector's complex challenges and ensure lasting competitive advantage.
Professional with over 20 years of experience in product development and innovation. Luciana has worked in major companies such as CI&T, Coca-Cola Company, and Accenture.
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