CEOs in the agribusiness industry are adapting to take advantage of advanced technologies like generative AI, while meeting consumer demand for sustainable products, and balancing new business models with employee expectations for livable wages.
Those were the conclusions of panelists during a thought-provoking roundtable at the International Fresh Produce Association (IFPA) conference. Here are excerpts from the discussion that previewed this year’s biggest agribusiness trends.
Farmers are finding out how GenAI and modern analytics can automate harvesting and quality control for greater efficiencies and food value chain predictability.
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GenAI is food chain superpower
Regenerative agriculture that focuses on improving soil health for optimal yields, nutrition, and biodiversity is among the hottest sustainable farming innovations. Dr. Elliott Grant, CEO of Mineral, saw advanced AI tools addressing these and other profound shifts in agricultural practices.
“Regenerative agriculture is more challenging and complex for farmers, and they need support and education to share best practices between growers and downstream retailers,” said Dr. Grant. “New AI tools can help people share data up and down the supply chain…downstream players along the supply chain are providing the signal and incentives for growers to get on this journey.”
Although Dr. Grant expected GenAI to perform human tasks like perception and reasoning at or above human level within 10 years, he was optimistic about the impact on people in the agribusiness sector.
“What if thousands of growers could collaborate with data to run huge experiments and discover better ways to grow,” he said. “What if we could unlock genetic diversity that’s in thousands of years of crop breeding but sitting in gene banks undiscovered? The human plus the AI is better than either separately…AI won’t replace people. Companies that don’t use AI will be replaced.”
Give employees culture and cash
Despite concerns about AI taking over people’s jobs, finding and keeping top talent in a labor market with workforce shortages is another major challenge in the agribusiness industry.
“Some organizations lack cultural clarity…To be successful in finding talent, tell people who you are, and they can decide if they want to work there,” said Johnny Taylor, president and CEO at the Society for Human Resource Management (SHRM). “People want to know there is a job for them. Given rapid change, there’s a demand that [employers] invest in people’s upskilling and reskilling.”
What’s more, agribusiness is transforming against a backdrop of rising costs including workforce wages, which are becoming an existential threat for the agribusiness industry.
“There’s tension between the employee who wants and needs to earn more money and the consumer who wants to spend less,” said Taylor. “In agriculture, if it costs more to bring a product to market, then you have to charge more. CEOs are caught in the middle, trying to figure out how to pay employees a living wage and make money for the company.”
Walmart democratizes sustainable food
It’s no wonder that major retailers like Walmart are factoring in sustainable business strategies along with product affordability. The company collaborates with suppliers as part of its responsible sourcing strategies on projects that include regenerative farming practices.
“Our mission is to help people save money so they can live better,” said Andrea Albright, executive vice president of sourcing at Walmart. “One of the things that suppliers want most from us are long-term demand signals for the continuity of their business. It might cost a little more, but it will have better quality and resiliency. We have to democratize regenerative by making these products accessible. One example is our co-development with beyondGREEN for compostable cutlery.”
Data-driven sustainable agriculture
After the show, I talked with Anja Strothkamper, global vice president of agribusiness and commodity management at SAP. She explained how technology is instrumental in meeting United Nations predictions that call for doubled worldwide agricultural output by 2050 to feed over nine billion people with higher value foods.
“Agribusiness is rapidly transforming with data-driven sustainable agricultural practices and new business models enabled by cloud-based solutions like SAP Intelligent Agriculture,” said Strothkamper. “Farmers are adopting advancements such as precision agriculture. They’re finding out how GenAI and modern analytics can automate harvesting and quality control for greater efficiencies. Making the entire food value chain more predictable will have a lasting positive impact on our planet and its people.”
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