Originally published on PrecisionAg.
The pandemic has shown how crucial it is in the food industry to maintain stable and efficient connections between input suppliers, farmers, and other ag industry players. This cooperation has allowed many businesses to avoid collapse mainly due to the critical role of the supply chain. So, what is its prime purpose?
As a competitive weapon in the modern, digital economy, the supply chain is focused on finding effective business approaches and new business models. Its advanced capabilities translate directly to tangible and measurable business performances since they help companies realize their own aspirations. When creating an effective supply chain environment, digital technologies come in handy.
Precision ag technologies, as their constituent element, provide favorable solutions for each player, and now we will take a look at these key elements.
With satellite monitoring, growers can save their expenses on fertilizers and other plant protection products necessary for crop cultivation. The prompt and accurate analysis of their vast fields helps them avoid unreasonable spending and save money on other necessities. Based on satellite data, farmers can accurately estimate an overview of the quantities of products they will need for particular territories. What’s more, the use of precision farming tools facilitates the overcoming of issues with storing unutilized commodities.
Similar to farmers, suppliers can benefit from crop monitoring because technology allows them to arrange their workflow more effectively. As a matter of fact, suppliers can estimate the quantity of goods for plant cultivation and care farmers may need to give for the season. With this data, they are able to adjust their own capacities to the current market pull. Information about the weather or field productivity obtained from satellites can also be employed to develop marketing proposals.
Farmers who use precision ag technologies are ready for strategic partnerships with suppliers. They possess archived data about the state of their fields and current vegetation. They are aware of their needs and based on this information can purchase fertilizers, seeds, or other plant protection products in advance.
A data-based approach in agriculture provides farmers with the opportunity for long-term planning, which results in long-term contracts. Satellite monitoring helps growers track crop vegetation so that they can experiment with the efficiency of various products. Farmers give feedback to suppliers who in turn can form assortments and adjust sales strategies. Hence, each and every player can benefit from their cooperation in the supply chain.
Farmers are known for their conservatism and how prone they are to sticking with tried and tested machinery rather than to experiment. Satellite monitoring helps them give up biases and explore new approaches. With visualized data, they can test various strategies and figure out new working methods in crop cultivation. For example, they can conduct experiments to compare the harvest or vegetation of different varieties of a particular crop on their fields. Similar tests with precise results can be carried out for fertilizers.
Besides this, some platforms, such as EOS Crop Monitoring, also measure soil moisture. This feature is an excellent opportunity for manufacturers of irrigation equipment to test their products and demonstrate their capabilities to potential customers.
What about suppliers? Building trustful, transparent relationships with farmers is the focal point of their activity. Access to, and use of, so-called farmers’ data brings them considerable benefits. Based on this information, a simpler method of producing the goods needed on the market emerges. Farmers can also be the link that assists an informed public to understand how technology is used safely to produce food.
Precision ag technologies come in handy when retailers want to improve their services. It allows them to adjust production processes, stay relevant, and maintain their edge. Therefore, the cooperation among the supply chain links facilitates the development of lasting business relationships and the achievement of common goals.
Last but not least, the food industry is facing more and more challenges as the population of the planet grows exponentially. Alongside with the demand for crops. This problem can’t merely be solved by increasing the number of fields or farms. On the contrary, growers are searching for convenient ways to treat them and take more out of the current resource pool. With precision ag, innovative solutions for crop cultivation are not a challenge but the set course of actions.
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