The agriculture sector grows and adds value. A calf bought at the market is nurtured into a milking cow that delivers liters of health and value to consumers. One simple seed, with the right care and attention, flourishes into a high-yield crop and literally puts bread on the table. Yet when it comes to data, there is a struggle across the agricultural sector to combine data and reap the rewards it has sown.
It’s important for the agricultural sector to have rich data. This data helps organizations in the agricultural chain gain a deeper understanding of every detail during the process. Growers can better understand each acre and corner of a field, producers can gain insight into the entire supply chain and retailers and manufacturers can tailor their inputs and services to generate the greatest yield.
Data has many similarities to the agricultural process. On its own, data has some value, but the richness and quality come when a range of data, inputs and technology are combined. Enriching data with additional data and tools provides real insight. Demand for this insight has now reached a point of criticality for everyone in the food production chain.
Manufacturers are moving to pay producers for outcomes—outcomes that are richer than just the weight of the carcass or kilos of wheat but also the quality. Rebate and subsidy programs are changing to reflect the new expectations placed on the rural economy and food standards.
To comply, it is important that farmers, producers and input providers demonstrate good stewardship and adherence to the rules. Together, these new conditions require all members of the agricultural and food production sector to have access to a unified data set that is easy to understand and share with stakeholders. Only through such a mechanism can validation and revenue generation be mutually assured. Application programming interfaces (APIs), for example, can deliver results when data allows analysis, digital twin experimentation and the discovery of revenue opportunities
Connected Up
As food production grows, connecting APIs provides an ability to understand and analyze the myriad types of data agriculture. For many, data can be difficult to navigate, and if there is a problem with one of the APIs, this becomes time-consuming to track down the root cause and fix it. Business advisory group McKinsey believes the sector could derive an additional $500 billion in value from improved data usage.
Coordinating The New Order
Sectors such as retail, logistics, export and financial services are undergoing significant digitization.
Agricultural APIs, therefore, stand to play a crucial role in ensuring the industry can compete in this new landscape.
Effective use of APIs can help allow the agricultural sector to meet regulatory and consumer demands as the sector is now facing compliance measures on working practices, chemical usage, water quality, animal health, climate change and exports—all of which have a digital element to them.