St. Louis, Mo. (May 16, 2017) – The latest report published by Rabobank analysts discusses former and current innovations to the agricultural industry, as well as common adoption barriers seen today. As the fourth and newest wave of innovation, digital agriculture has enormous potential, but has several hurdles that must be overcome before reaching success.
Analysts note that digital agriculture has been, for the most part, funded by venture capital investors and venture capital units of several agriculturally based companies. During the past two and a half years over $6.5 billion (USD) has been invested in precision farming and data-oriented technologies.
According to Rabobank Farm Input Analyst Ken Zuckerberg, “digital agriculture offers the promise of greater income and lower volatility.” He goes on to explain that, “improved agronomic practices, coupled with more precise field decisions can create the promised value through higher crop yields and lower input costs.”
Of the five key barriers to the adoption of this new technology, perhaps the most crucial to overcome is the lack of a universal operating platform. The difficultly lies in organizing and aligning the industry and deciding what party/parties take ownership of each step of the process.
“Although it took two decades for electronic commerce to evolve after internet access became available to the general public,” explains Rabobank Farm Input Global Sector Strategist Dirk Jan Kennes, “we would expect creation of the necessary platforms for digital agriculture to occur much faster.”
At the end of the day, the demand for information throughout the supply and food chains will be a main driver in the evolution of digital agriculture and its widespread adoption.
A full copy of the report is available upon request.
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About Rabobank International RaboResearch Food & Agribusiness
Rabobank International RaboResearch Food & Agribusiness is a global team of more than 80 analysts who monitor and evaluate global market events that affect agriculture worldwide. This international team works to collect key insights into commodity markets; conduct in-depth analysis of the factors that drive sector success (or failure); and examine the megatrends that ultimately influence clients’ business strategy. These analysts are internationally respected experts in sectors from protein to produce, inputs to oilseeds, and their knowledge is shared with Rabobank customers.
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