*Per Angela Gheller
We know that agribusiness is one of the pillars of the Brazilian economy. In the first half of 2021, the sector's GDP grew by 9.81% compared to the same period in 2020, an amount equivalent to R﹩ 223 billion - according to calculations carried out by Cepea (Center for Advanced Studies in Applied Economics), from Esalq/USP, in partnership with the CNA (Confederation of Agriculture and Livestock of Brazil). When analyzed in detail, we also observe that agriculture stood out in relation to livestock, mainly due to the high cost of inputs required by this branch.
In a scenario of challenges, high costs and climatic instability that have relevant impacts on the sector, technology has once again played an important – and even fundamental – role in increasing production. Therefore, below, I highlight four themes that should be on the agribusiness sector's radar in 2022:
precision agriculture
There are already a number of robust solutions on the market, ranging from planning the distribution of inputs to preparing the property to receive them, which is known as precision agriculture.
This production methodology is nothing new, it is based on the use of technologies that aim to facilitate and modernize rural properties and has a management based on data collection, gathering and processing a series of information and characteristics of the productive area. In a second moment, there is still management planning, in which strategies and guidelines are provided to improve the management of inputs, based on standards and requirements established by the producer itself - here, different systems and solutions can be applied, including Artificial Intelligence for the data analysis. And, finally, precision agriculture can still predict the application of inputs automatically and with greater technical rigor. All of this can be a real booster for Agriculture 4.0 in Brazil.
5G technology
The arrival of the fifth generation of mobile network will certainly cause one of the biggest transformations in the field, allowing for greater data transmission, faster and with greater range. Also because the operating cost is lower than that of 4G technology, 5G enables the implementation of transmission towers in more remote areas, providing greater connectivity to rural properties. In order to have the dimension of the impact that this technology will bring to agribusiness, the Atlas of the Brazilian Rural Space, published by the IBGE (Brazilian Institute of Geography and Statistics), points out that of the 5.07 million rural properties, 3.64 million are still operating offline.
Although the implementation of 5G is still in the process of taking place, in view of the space auctions and other necessary conditions, studies by the Ministry of Agriculture, Livestock and Supply (Mapa) estimate that with the expansion of 25% of the connection in the field, there will be an increase of 6.3% in Gross Production Value (VBP). This will be possible because 5G improves and drives the adoption of IoT (Internet of Things) devices, enabling the use of sensors and equipment to monitor crops and animals; as well as expanding the use of drones, connected to processing systems and software; and other complementary technologies.
Marketplace in agro
Another trend that should mark the next year is the use of the marketplace in agribusiness. These digital sales platforms have been consolidated a lot in recent months, especially during the pandemic, facilitating the sale of various products online, quickly and dynamically. For agribusiness, it is no different.
Agricultural marketplaces connect rural producers to distributors and buyers of specific products, boosting sales and the flow of rural production. This type of digital sale also allows the growth of the reach of small rural producers, enabling their insertion in a large scenario of greater exposure, greater negotiations and low operating costs.
ESG Schedule
An important agenda in various sectors of the economy, the ESG agenda is highlighted in agribusiness. Among the sustainability biases, the concern with greenhouse gases gains a new level with the carbon credit. Carbon credits have served as currency for business, boosting a multi-million market for those players who have not yet managed to reduce their impact on gas emissions.
The carbon credit market still needs clearer rules, but this should be resolved soon, as there are already countries approaching it as a “new global commodity”. According to a Bayer survey, the area occupied by agriculture in Brazil is responsible for 500 million tons of carbon equivalent (tCO2eq), which, converted into cash, corresponds to US﹩5 billion. In this scenario, research and application of technologies serve as a basis for replacing and improving cultivation and farming techniques, in order to reduce the use of non-renewable fuels and biomass by renewable biomass.
Forecasts and projections for agribusiness for the next year are varied, but the fact is that it should remain a major driving force of the national economy. Keeping this in mind, it is worth staying tuned to studies, trends and innovations that are even being encouraged by public and private initiatives, as well as investments made in technologies and solutions. The resources and technology are there to support Brazil's advancement in the Agriculture 4.0 journey.
*Angela Gheller, Director of Agribusiness at TOTVS
Notice: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies
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