Digital Agribusiness Models”

Int.J.Curr.Microbiol.App.Sci (2020) 9(8): 3030-3038

International Journal of Current Microbiology and Applied Sciences ISSN: 2319-7706 Volume 9 Number 8 (2020) Journal homepage: http://www.ijcmas.com

Review Article https://doi.org/10.20546/ijcmas.2020.908.342

Innovations in Agriculture – A Case of “Digital Agribusiness Models”

C. Muralidharan*

Department of Social Sciences, Agricultural College and Research Insititute, Killikulam, Vallanad, Tuticorin District, India

*Corresponding author

ABSTRACT

World population will increase at geometric rate of progression and an estimated 9.6 billion people and will require 70 percent more food than is available today. In order to increase the production efficiency, expertise in the domain of agriculture opined and K e yw or ds developed different agribusiness models to address the above aspects. In order to conduct this research, case study method was adopted to collect the necessary data and information Digital agriculture, from the entrepreneurs performing successful ventures in digital mode of agribusiness by Startups , Artificial adopting purposive sampling method. Secondary data pertaining to different countries Intelligence and were collected from the websites of digital agribusiness of their respective country. Digital Internet of Things agripreneurs enrolled in the Agribusiness incubation society were contacted personally to (IoT) collect the required data. M/s Kisangates Agro Informatics is an innovative startup with a

motive to revolutionize business processes in agricultural ecosystem through strategic Article Info models and digital transformations that are synergistic with environment and business needs. Further, M/s Jeypee Biotechs, Virudhunagar developed the digital and ICT enabled Accepted: field advisory system model and executes networking among farmers on a common 24 July 2020 platform for dry chillies cultivation for export purposes. Through his intervention, farmers Availabl e Online: 10 August 2020 are realizing 20 per cent extra income. A paradigm shift is taking place to transform the traditional farming system to digital mode in order to reduces the cost, minimize wastages

and thus leads to realize better price in the market. To conclude this study and based on the discussion with entrepreneurs and expertise in the domain of digital agritech companies, following strategies are suggested for a better agribusiness value chain.

Introduction population will increase at geometric rate of progression and an estimated 9.6 billion Agriculture sector contributes significant people and will require 70 percent more food share in the economic development and than is available today. In order to increase sustainability of developing countries in the the production efficiency, expertise in the world. Majority of the population in India domain of agriculture opined and developed depends on agriculture as their major different agribusiness models to address the profession and source of income. Research above aspects. Among the different models reports revealed that in the year 2050, world's developed, intervention of “Digital

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Agribusiness” Model through Artificial management and proper plant protection to Intelligence (AI) and Internet of Things (IoT) enhance the production efficiency. could be the game changer and increases the production and marketing efficiency. “Digital In case of information technology domain, Agribusiness” is nothing but an alliance of Expert Support System (ESS), Decision data driven advances in AI and the IoT to help Support System (DSS), Management and influence the agricultural organizations Information systems (MIS), Enterprise and use data to drive efficiency in both Resource Planning (ERP) and Internet of forward and backward linkages and reduce Things (IOT)) serves as a platform and cost. It is easy to use, environment friendly, provides solutions for different agricultural saves agro chemical, time and energy. It not operations in a smart way. Developed only focuses business opportunities but also countries are adopting various digital caters to the needs of farmers and creates agribusiness strategies viz., smart agriculture business opportunities to startups in the 4.0, IoT, AI and machine learning for domain of agriculture. In this paper, case enhancing their farm production and studies of different digital platform models in marketing efficiency (Table 1). Further, the domain of Agriculture in Asia were forecast from the International organizations analyzed and presented. revealed that digital technologies will transform and increase productivity of food Need for digital agriculture and agriculture over the next decade (Nikola M. et al., 2019). Different components of the Majority of farmers adopted conventional digitization in agri food sector are precision method of agricultural practices in India. It is agriculture and remote sensing technologies evident that the sales of tractors in India are (IoT, GNSS, RTK, VRT, PLF, UAV and increasing over the years. However, the usage satellite imagery), Big Data, cloud, analytics of digitalization as platform for promoting and Cyber security integration and agribusiness among agriculturists is coordination (block chain, ERP, financing and minimum. There exists a vacuum and huge insurance systems), Intelligent systems (Deep gap in adopting the digital usage of Learning, Machine Learning and Artificial agriculture by agriculturists and farmers. In Intelligence and robotics and autonomous order to bridge the gap, Government of India systems), Mobile devices and social media. It (GOI) had launched “Digital India” scheme to is in support with the report of Daniel promote digitization to enhance the efficiency Newman (2019) explored that Google is and performance of public and private sectors. working in AI with respect to image Further, NITI Aayog has started a pilot recognition of 5000 species of plants and project on precision agriculture by using animals and recognizes pests, diseases and Artificial Intelligence (AI) in ten districts extent of crop damages. across seven states in India. State government of Telangana, Tamil Nadu and Maharashtra Advantages of the digitization are Increase have launched an agri open data portal to farming efficiency and productivity, establish promote digital technology as an important the sustainable agriculture value chains, tool in agriculture. Hence, it was suggested to address the market and price volatility, adopt digitization in agricultural practices viz., implement novel and sustainable agri business Good Agricultural Practices (GAP), farm models, engage with the different mechanization, methods of irrigation, stakeholders in agribusiness networks, management practices, good nutrient practicing smart and precision agriculture.

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A recent global health crisis (i.e) pandemic Ninja Cart, Waycool, Intello Labs, Farm disease “COVID-19” created lot of challenges Links, Gramco Infratech and Tessol are in health care and agriculture sector. dealing with digital agribusiness. Out of Researchers predicted that the possibility of these, a case study on M/s Kisangates Agro food shortage crisis may arise in near future Informatics was done and the results are (FAO, 2020). The usage of IoT tools and presented as follows. robotics can reduce the virus spread among human and improves the sanitization of the M/s Kisangates Agro Informatics is an eco system. Hence, there is an urgent need to innovative startup with a motive to adopt “Digital Agribusiness” to enhance the revolutionize business processes in efficiency of agriculture value chain. Thus, it agricultural ecosystem through strategic will bridge the gap and will be a game models and digital transformations that are changer for providing the solution of food synergistic with environment and business shortage. In this paper, different models of needs. It was started in the year 2014. This digital platform in the domain of Agribusiness company provides solution and solves need in Asia are discussed. based problems faced by different clients in the domain of agriculture. The following Methodology figure 1 depicts the journey of the company and its achievements. A suitable formulation of research methodology is important to facilitate the In order to achieve the excellence in the systematic research study. The case study domain of agribusiness, the company adopts method of research was adopted to collect the Farm Decision Support System (FDSS) model necessary data and information from the and its digital transformation components are entrepreneurs performing successful ventures digitizing field records, digitizing process, in digital mode of agribusiness by adopting data analytics and decision system. It focuses purposive sampling method. Secondary data on commercial agro sector viz., seed pertaining to different countries were production, value addition of fruits and collected from the websites of digital vegetables, vet bio security, millet value agribusiness of their respective country. chain, value chain of different crops and Digital agripreneurs enrolled in the poultry. Agribusiness incubation society were contacted personally to collect the required Uniqueness about this company is that data. services are offered by agribusiness experts (50 more years of experience), PANDO Farm Decision Support System (FDSS) platform is used for dashboard insights for the performance. Further, it adopts Amazon Web Digitization facilitates farming operations and services (cloud architecture) for data storage, agribusiness firms to achieve higher scale up and securities, products are carefully productivity, optimum use of inputs, reduces designed for field force to capture the cost and protects the environment. In India, important data without any error. Product about hundreds of agritech startups viz., works seamlessly in offline mode also. StampIT, AGNEXT, AGROV, Kisangates, MyCrop, Flybird Innovation, Cropin, Kisangates offered problem solving solutions Agrostar, EM-3, Farm Taaza, Crofarm, and services to clients ranging from Aarav, Bharat Rohan, Albono, Gold farm, agribusiness firms to government

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organizations and are listed as follows (i.e) provided the agri value chain solutions to Field force management (Enhances the enhance the efficiency of agribusiness. efficiency of field force last mile operations, Agritech companies such as Vasham, offering Daily Planner, campaign Activity, Agradaya, Agri socio, Javara and Big tree grower record module and channel sales farms are providing both backward and module, real time visibility on field forward linkage solutions. However, business operations, market and season insights, firms viz., Kakao, East Bali Cashews optimizing resources and enhancing customer exclusively provides market linked solutions experience), Farm decision support system such as processing, warehouse, transportation, (supporting the management of seed farms, branding and sales channel. Tailor made offering grower record module, IOT sensor specialized and technology based solutions integration, providing data analytics and are provided by Burgreen, CI agriculture, forecasting and real time visibility on Crop Pandawa agri, Sentinel Indonesia, Eragano stage, understanding field level deviations and and igrow. Field Quality Standards, well integrated IPM, INM and Agronomy recommendations for In case of Germany, startup firm M/s Infarm, Management and Growers} and Product Berlin provides digital platform solutions and market solutions (enhancing technology builds IoT powered indoor hydroponic product and outreach, market and farm data vertical farms. It was started in the year 2013 module, multi lingual, geo and user specific and establishes vertical farm models for retail outreach). spaces, restaurants and distribution warehouses to grow herbs and vegetables. Major clients of this company are Advanta The sensors installed collects and record farm (analyze, review and drive sales of their data and allow the end users to remotely products during peak season), Syngenta monitor plant growth from mobile phones. (digitize the seed production operation, Major food retailers Edeka, Metro, Migros, integrating weather, soil, crop data for Casino, Intermarche, Auchan, Selgros and providing decision alerts), SEED Works Amazon availed the service from this (Digitizing commercial sales and marketing company for the installation of Modular farm operations, Walmart (market linkages, design. demand and ensuring supply parameters for farmers) and Government of Tamil Nadu Farm activity, documentation and sponsored Tamil Nadu State Agricultural traceability Marketing Board (TNSAMB) (Digital platform for linking farmers, aggregators and M/s Jeypee Biotechs, Virudhunagar primary processors with markets). Thus, it developed the digital and ICT enabled field benefits all the stakeholders in the advisory system model and executes agribusiness supply chain and especially the networking among farmers on a common grass root level farmers and last mile platform for Dry chillies cultivation for export agripreneurs. purposes. Through his intervention, farmers are realizing 20 per cent extra income. Government of Indonesia also initiated the Following figure 2 depicts the cloud based digitization of database related farm land and mobile application “Cropin” was successfully irrigation through Geographical Information developed and operated for monitoring the System (GIS). Some of the private enterprises crop production activities of 400 farmers in Indonesia also played a crucial role and (Fig.2). A module exclusively for chilli crop

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was developed to monitor the implementation share of their produce price. Based on this of field activity plan for Chilli crop in a real intervention, they gained extra 15% value of time. This system helped to capture field their produce. activities and helps in area of planning, managing the farm inputs, implementing best The farmers are assured of 5% price premium practices, providing advisory to farmer, for taking care of food safety aspects in field. helping to find cost involved in each The net financial gain by the farmer who operation, weather alert, bringing traceability grows the IPM chilli and sells directly at farm and generate reports. gate is more than 20%. Other than this, farmers are getting direct grant support from Farmers are networked under the common Spices Board in the form of inputs and drying digital platform and different farm advisory (tarpaulin) which costs about Rs 3000/- per services were provided viz., farm direct acre of chilli cultivation. procurement, post Harvest Loss minimization, knowledge creation and sharing of In case of Taiwan, Intelligent agriculture 4.0 information (Chillies cultivation @Food project (year 2017- 2020) sponsored by public Safety and GAP) and IPM usage. Following sector promotes key intelligent agricultural figure 3 depicts how the mobile app captures production technologies development and the details of farmer data form filled and service support system through smart farmers’ uploaded real time in web. alliance. Further, National Ilan University, Taiwan developed Internet of Things (IoT) It provides timely supply of need based inputs systems in digitization of poultry farm and helps the farmer to increase the overall products for marketing and traceability yield from 6 Qtl/ acre to 10 Qtl/ acre. Farmers (Chiu.Y.C, 2018). The application of are cultivating chillies with zero pesticide digitization technology, robotics and residues in a sustainable manner. Farmers are Enterprise Resource Planning (ERO) are able to sell their produce directly to the implemented in dairy, piggery and poultry processor at farm gate and thereby getting full (Fig. 4).

Table.1 Global observation of digital agribusiness platforms and strategies

Country Key Strategies

Germany Industry 4.0 (Promote Web-Entity system integration, M2M and IoTs. Actuate Agriculture 4.0 project)

Japan Technology Enhanced Agriculture (Apply AI (Agriculture Informatics) technology, Human Machine coordination, intelligent production) New Zealand Farmers-united enterprise, resources integration, global production- marketing, ICT production management, QA/QC & products trace back. Netherlands Automation technology innovations, Agriculture-industry cooperation, Holistic agricultural production supporting system.

Israel Scientific Agriculture, Multi-disciplines engineering overcomes resource shortage, drip irrigation implements desert agriculture.

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Fig.1 Digital transformation components installed at M/s Kisangates Agroinformatics

Fig.2 Software tool “Cropin” developed by M/s Jeypee Biotech

Fig.3 Functioning of the data capturing process of mobile app

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Fig.4 Internet of Things (IoT) technology adoption in Taiwan poultry farm

Source: Chiu.Y.C, (2018)

Further, University of Florida experimented platform enhance the efficiency of the drone sprayers in the initial years and later agricultural value chain. A paradigm shift is it has been used exclusively since 2014 in the taking place to transform the traditional Citrus Research and Education Centre farming system to digital mode in order to (CREC) for Citrus Under Protective Screen reduces the cost, minimize wastages and thus (CUPS) (Schumann et al., , 2017). Trimble’s leads to realize better price in the market. Green seeker, a handheld cum portable crop Based on the discussion with entrepreneurs sensor device estimate the nutrient needs of and expertise in the domain of digital agritech different crops in order to make better nutrient companies, following strategies are suggested management decisions and it reduces the cost. for a better agribusiness value chain. Field IQ control system facilitates productive and efficient functionality for the planting, Following strategies are suggested to develop nutrient and pest management operations. digitalization in agribusiness viz., adopting Other devices invented by them supports big data analytics method and collection of different activities such as crop planning, soil market data. Imparting digital agricultural sampling, water management, traceability, technology among different stakeholders, yield monitoring, nutrient and pest exclusive training funds allocated for the management. adoption of ICT and digital technology. In conclusion the almost all cases, digital Establish favorable policies and programmes

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suitable for adoption of digital technology and Crowd funding platform to help farmers and marketing including administrative and agribusinesses to raise funds for development financial support for all stakeholders in the of products, by pre-selling the products before agribusiness industry. Purchase of advanced they are even manufactured and grown. It was digital equipments for building smart farms, advised to arrange capacity building IoT infrastructure, demand-supply analysis/ programmes to different stakeholders viz., prediction of database system. Skill assistance farmers, traders and marketing team of to establish “demonstration unit” for adopting agribusinesses on the skills for adopting advanced digital control system. Organize a digital marketing. Integration of O2O (online digital farmer alliance and forums for each to offline) marketing strategy, linking up specific agri-industry comprising the online marketing, mobile APP marketing and members belonging from farmers, equipment physical retail shopping) were also suggested makers, ministry of agriculture, scholars and for the implementation of better digital researchers to cooperate together. agribusiness.

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How to cite this article:

Muralidharan, C. 2020. Innovations in Agriculture – A Case of “Digital Agribusiness Models”. Int.J.Curr.Microbiol.App.Sci. 9(08): 3030-3038. doi: https://doi.org/10.20546/ijcmas.2020.908.342

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