Digital Transformation in Agriculture: Driving towards Sustainable Development Goals

In May 2023, Transforma Insights published a report, ‘Digital Transformation (DX) in the Agriculture sector’, which identified the key domains of change in the agriculture sector that are triggered by the use of disruptive new technologies such as Artificial Intelligence and the Internet of Things, which are often combined under the umbrella of ‘Digital Transformation’. The reasons for harnessing these emerging technologies are largely focused on driving more efficiency in agricultural production, reducing costs and making more efficient use of resources. They also have the effect of substantially reducing the environmental impact of agriculture. In this article we discuss the major challenges that the agriculture sector is facing and explore in detail how emerging digital technologies can be used in the agriculture sector to meet Sustainable Development Goals, as defined by the United Nations. 

Challenges of the agriculture industry

The agriculture sector faces diverse challenges, impacting food production amid rising demand for food. Some of these challenges include:

  • Wastage of water. Wastage of water for agricultural purposes is a pressing issue, that should be addressed as a priority. It is reported that almost 50% of the water used for irrigation purposes is wasted due to evaporation and runoff caused by inefficient irrigation techniques. 
  • Increasing demand for food. Another pressing concern for the agriculture sector is the increasing demand for food. As per the Food and Agriculture Organization of the United Nations (FAO), to feed 10 billion people by 2050, the agriculture industry needs to increase its production capacity by 70% (compared to 2009).
  • Reducing availability of cultivable land. Due to the growing global population, rapid urbanisation, and increasing desertification, the availability of cultivable land is rapidly decreasing, which is adding to the challenges of the agriculture sector. Unsustainable agriculture practices also contribute to the problem and are blamed for the loss of 24 billion tonnes of fertile soil every year.
  • Reducing availability of skilled farmers. Agriculture is time-sensitive work, and falling numbers of skilled farmers in countries around the world is another challenge. The major reasons that are contributing to labour shortages are the increasing age of farmers, decreased interest of younger people in farming, stricter immigration rules, and rising wages for skilled labourers. 
  • Combating food wastage. According to the FAO, almost one-third of the total food produced (amounting to 1.3 billion tonnes) is either lost or wasted every year, which has significant economic and environmental costs.

How can digital technologies be used in agriculture to accomplish Sustainable Development Goals (SDGs)?

The United Nations created Sustainable Development Goals to serve as a roadmap for achieving a sustainable future for everyone, but it is obvious that implementation still lags significantly, and the 2023 report titled, “Progress towards the Sustainable Development Goals: Towards a Rescue Plan for People and Planet” claims that, “the Sustainable Development Goals (SDGs) are disappearing in the rear-view mirror – and with them the hopes and rights of current and future generations.”

In this section, we have examined those SDGs which are related to agriculture and how using digital technologies in agriculture can help in achieving those goals.

SDG 2: “No Hunger” and ensuring food security

Agriculture technologies ensure high yield and thereby effectively help to deal with food shortage. Techniques such as indoor vertical farming ensure consistent growth of crops (since they are no longer dependent on weather), high yield per square foot (since crops are vertically stacked), and also allow for more frequent harvesting, which can result in 20-40 times more food production for a given land area. For instance, Nordic Harvest claims that in vertical indoor farms, plants can be harvested fifteen times a year while in conventional farms it is only twice a year.

Besides, technologies such as soil monitoring ensure that agricultural lands are neither over-irrigated nor over-fertilised, which saves natural resources such as water, improves yield and reduces pollution through runoff of fertiliser. For instance, Soilsens’ pilot projects have found that crop monitoring technologies can increase potato yield by 20%.

SDG 3: Promoting “Good Health” and well-being

Agriculture technologies such as crop management solutions use less fertilisers, pesticides, and herbicides, which improves the quality of the produced food. This ensures good health and well-being of the general populace. For example, chemPEGS sensors let farmers know ammonia and nitrate quantities in the soil, which can be used to prevent over-fertilisation.

In another instance, in 2021, Jiangsu Farming deployed drones for crop monitoring and without compromising the quantity of food production, it was able to reduce fertiliser consumption for rice and wheat by around 10%.

SDG 6: Ensuring “Clean Water and Sanitation” for everybody

Agricultural technologies including tank (fertiliser, chemical or water) level monitoring devices and soil monitoring ensure less groundwater pollution and less generated wastewater. Moreover, more precise application of water and chemicals reduces leaching and runoff into ground and surface water, preventing degradation of water quality and ensuring the availability of clean water.

Additionally, automated irrigation systems enable judicious water consumption, and deploying sensors in water tanks to remotely monitor water levels can reduce water overflowing cases. Additionally, technologically advanced crop management solutions can reduce water consumption by 15%-30% on average, and some organisations have experienced 70%-75% water-saving benefits.

SDG 7: Aiming for ”Clean Energy”: affordable, reliable, sustainable and modern

It is estimated that the agri-food sector consumes around 30% of total energy worldwide, much of which is produced from fossil fuels. Emerging digital technologies can significantly reduce electricity consumption in agriculture, which can then be available for use by the general population. For example, smart irrigation techniques ensure that machines have to run for less time, thereby saving electricity. Combining water pumps with digital technologies like IoT can optimise water pumping timings and save electricity. For instance, in Spain, Telefonica and ABB implemented automated irrigation systems across a dozen farms and were able to reduce electricity consumption and costs by 30%.

SDG 12: Ensuring “Responsible Consumption” and production patterns

As mentioned above, global food wastage is a major issue, and according to the United Nations, 13.3% of total produced food is lost in the time between when it is harvested, and it reaches retail markets. The UN also estimates that at the consumer level, almost 17% of total food is wasted.

Agricultural technologies like grain storage monitoring platforms use sensors to monitor temperature, moisture, and CO2 level inside storage units to prevent spoilage of crops. For instance, Sohan Lal Commodity Management (SLCM), an Indian post-harvest storage firm has developed an AI engine to predict storage conditions and suggest preventive actions, achieving a reduction in storage losses in warehouses from 10% to 0.5%.

SDG 13: “Protect the Planet”; combatting climate change and its impacts

Across the world, farmers waste significant amounts of fuel for agricultural activities (particularly in irrigation), and digital technologies (such as automatic irrigation and crop monitoring) can reduce the amount of fuel used in trips taken by farmers for monitoring fields. For example, telematics devices in tractors monitor fuel usage and reduce the idling of farm vehicles, autonomous trucks use AI algorithms for route optimisation, and indoor vertical farms grow crops near the area of demand decreasing transportation requirements and fuel consumption. Using such digital technologies, the EU’s LIFE GAIA Sense project reduced energy consumption by around 25% in its smart farms. 

SDG 15: Aiming to restore “Life on Land”

It is estimated that every year, 10 million hectares of forest are cleared and out of that, almost 90% of the global deforestation results from the ongoing expansion of agricultural land. In this regard, indoor vertical farming has immense potential, as described above.

Additionally, virtual fencing techniques (an integral part of livestock management solutions) can dictate the grazing pattern of livestock and stop the desertification of pastures. 

Final thoughts:

To conclude, sustainable agriculture is the need of the hour and while the rapidly growing world population demands increased agricultural output, there are many challenges which are significantly affecting this sector. With the implementation of emerging digital technologies (such as indoor vertical farming and the use of smart irrigation devices), the agriculture sector can efficiently combat the challenges, while simultaneously contributing towards Sustainable Development Goals (SDGs).

Suruchi Dhingra Suruchi Dhingra

Research Manager, Transforma Isights

Joydeep Bhattacharyya

Content Editor, Transforma Insights

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