Enhancing Agri Value Chains Via Technology-driven Approach

Technology and AI-driven innovation in agriculture space is critically elevating agri value chains, proffering best returns.                                                        

FREMONT, CA: A well-established tech-first approach is being undertaken by agritech startups in recent times for the critical problem-solving and organisation of the agribusiness industry. That is, a standard growth rate of nearly 10 per cent has been witnessed annually in the past decade, contributing to almost half of the overall gross domestic product (GDP) of the Asia-Pacific (APAC) region and the overall development of the arena.

Multiple enablers from the government and private sector in the APAC space have set strategic initiatives in motion, advancing the growth of digital infrastructure. Furthermore, internet penetration in the APAC arena has attained a significant development in recent years, elevating to nearly 30 per cent yearly.

This very transition in the agriculture space has favoured startups and traditional entities in developing innovations and disruptive, scalable business models to address the inefficiencies in the sector. As a result, setbacks in the agri-value chain are effectively addressed by enhancing the adoption of sustainable cultivation practices, improving crop quality, and re-designing the supply chain, while reducing wastage and increasing testing agricultural technologies (TAT) and efficiency in the process.

An increased number of factors, like escalated internet penetration, and a conducive environment created by regulators and multiple stakeholders are likely enabling agritech startups to level up their approaches, thereby increasing efficiency. Generally, agricultural value chain development offers insight into innovative ways of linking producers to end users. Wherein, agritech startups are building seamless digital platforms with integrated value chains and supporting value chain actors for the critical processing of market linkages from small and marginal farmers.

Alongside this, commercial and large-scale farming has gained momentum in recent times due to tech-driven innovations in the sector, favouring the players in maintaining established quality standards and delivery requirements. However, drawbacks in farming in the APAC region like obsolete crop selection and anecdotal data on crops with the capability to yield better in a desired timeframe annually can often be witnessed, where agritech businesses are deciphering data via technology like sensors, drones, satellite imagery, and soil conditions for a more holistic approach in crop yielding.

This critical farm-level data aids in aligning variables—irrigation, insecticide requirement, fertilisation, and crop rotation—facilitating farmers' informed decisions via advanced analytics with highly technical criteria. As a result, investments in agricultural practices have elevated in recent times, proffering beneficial returns in the arena. Additionally, tractorisation and post-harvest optimisation have also evolved on an efficient scale, offering a technology- and AI-driven agricultural space to enhance the agri-value chain.