Applying big data in agribusiness lets rural properties manage their business
intelligently, increasing productivity, reducing costs and
optimizing production

Big data in agribusiness: a billion-dollar market in the making

Moreover, the market for Big Data in agriculture should grow. It goes from US$ 0.9 billion in 2020 to
US$ 1.9 billion in 2030. Furthermore, the estimated annual growth is 13.6%. The data comes
from Fatpo Global. At first, the concept of Big Data was linked mostly
to industry, which has already lived through several technological revolutions. However, little by little,
it became clear that the benefits extend to agriculture as well.

“The reasons behind this growth include the development of mechanisms
in developing countries. In addition, there are rising costs due to a lack of qualified
people. Moreover, there is growing pressure for food as a result of population
growth. Finally, there is the pursuit of cost optimization in farming techniques. There is also government
support toward the advancement of agriculture,” the research says.

In short, the term Big Data describes a large volume of information. It can help a
company make more strategic and intelligent decisions. That company may be a manufacturer or a
rural property.

Numbers that change the farm

In the field, the high volume of data makes it possible to monitor
crops, plant conditions, and soil status. Moreover, it helps project results in a
realistic way.

As we showed in this article about the Internet of Things in Agribusiness, the global
population keeps growing. It is estimated to reach 9.7 billion people by 2050. As a result, the world will need
far more calories available for consumption. Consequently, that level of food
production will only be possible by optimizing existing resources
such as water, land, and inputs. In addition, technology gives the necessary support.

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Data management and analysis
A rural property can have countless technologies working in its favor. In addition, the
availability of new devices brings conveniences. They provide an integral view
of the crop, from planning to after the harvest, including logistics. Among
the possibilities used on the most technologically advanced properties are:

• Customized, tailor-made planting plans, based on GPS or aerial images;
• Analysis of aerial images to make the best use of the land and the available
  resources;
• Autonomous tractors, following the proposed plan;
• Equipment telemetry, delivering precise information about planting and
  harvesting;
• Adjusting crops to the weather and to soil conditions and characteristics;
• Insights into animal farming, such as feeding, weight evolution, and
  more;
• Precise, structured task automation, such as irrigation, lighting
  control, feed distribution for animals, and more;
• Support for teams in the field, optimizing employees’ resources and
  time;

The road to the smart farm

In practice, the rural property can be fully
automated and intelligent – an Agriculture 4.0. To reach that scenario, data management is fundamental.
All these technologies matter. However, they must be integrated in order to
guarantee the best results.

In this regard, applying big data in agribusiness is fundamental. By transforming
raw data into intelligence, managers obtain
precise information about their property’s performance. As a result, decisions become
more structured. 
Furthermore, this creates the possibility of prediction and scenario building. After all,
productivity depends on factors beyond anyone’s control, such as
weather and rainfall. 

Cost reduction and higher profits

One of the great challenges of any company is to use
its resources well. Investment in inputs, resources, and people prioritizes performance
improvement. Take the case of a rural property dedicated to agriculture or
livestock. One way to boost profits is by reducing – or optimizing – its
costs.

As a result, applying big data in agribusiness combined with the technologies mentioned earlier
delivers precise, real-time information.

From data collection to decisions in the field

When managers succeed
in separating raw data and transforming it into intelligence, they
build a history of information. Consequently, big data in agribusiness facilitates not only predictive analysis but also
farm planning.

For example, you can track the volume of feed purchased and of inputs applied in the field. From
that information, you build far more precise plans. Consequently, this
changes the way of buying and managing the property. All this data is a
source of information, and it should be used strategically.

It is worth noting that data management is not connected only to production
itself. It should also be applied to other processes that directly
affect results, especially logistics. In a country of continental
dimensions like Brazil, distribution needs more intelligence. That is fundamental, whether
for the domestic market or exports.

Brazil’s numbers
Brazilian agribusiness has expanded for years. In 2022, for example, the Confederation of Agriculture and Livestock of Brazil
projected a Gross Production Value (GPV) of R$ 886.2 billion for agriculture alone. Since then, the series has kept
its growth path, with swings driven by harvest and exchange rates.

The direct impact on production

Therefore, adding agriculture and livestock together, Brazilian production already passed the trillion-reais mark that year. Moreover, livestock was driven by higher
beef production.

With the country’s large production capacity, many farmers sell
to foreign markets. In 2022, for example, agribusiness exports
added up to US$ 136.1 billion. That figure represented a 33% increase
over 2021, which had already been 19% higher than 2020. 

The data comes from the Ministry of Economy. In that period, the appreciation of the dollar against the real also helped the result. Since then, export volumes have stayed
high, with swings in price and international demand. 

Therefore, the underlying reading still holds. Brazil still needs to evolve considerably
compared to other regions in Industry 4.0. However, the country is at the forefront of
Agriculture 4.0. After all, it is one of the largest food producers on the planet.

Download an infographic that shows the impact of digital
transformation on rural properties!