DIGITAL TRANSFORMATION IN AGRICULTURE: CURRENT SITUATION, BENEFITS, AND CHALLENGES

Digital transformation plays a vital role across all sectors in the era of Industry 4.0. This is a global trend, and agriculture is no exception. While digital transformation in agriculture presents many opportunities, it also faces numerous barriers and challenges.

The promotion of digital transformation in agriculture offers a valuable opportunity for Vietnam’s agricultural sector to rise and compete on the international stage. So, what is the current state of digital transformation in agriculture? What are the benefits, applications, as well as the limitations and challenges of this transformation? Let’s explore and find the answers in the article below.

Understanding Digital Transformation in Agriculture

Digital transformation in agriculture refers to the application of digital technologies throughout the processes of production, processing, distribution, and consumption of agricultural products. This transformation involves fundamental activities such as: applying modern technology in farming, linking value chains, and changing management methods. Specifically, the activities involved in the digital transformation process in the field of agriculture and rural development include:

• Applying modern technology in agricultural cultivation.
• Linking value chains within the agricultural ecosystem, such as: connecting farmers with the market, and connecting government management agencies with the market.
• Changing agricultural management methods by digitizing processes, modernizing cultivation, and optimizing administrative and human resource tasks.

Digital transformation creates opportunities for the agricultural sector to develop more efficiently.

Some examples to better understand the digital transformation process in the agricultural sector include:

The application of IoT technology and sensors in the fields helps monitor and observe crop conditions remotely. Sensors collect information about the crops and continuously send it to the managers in real-time. Or the use of drone technology in monitoring crops, spraying pesticides, and observing 3D images to analyze and predict soil quality.

Current Situation of Digital Transformation in the Agricultural Sector in Vietnam

The agricultural sector in Vietnam is currently organized into three main forms: households, cooperatives, and enterprises. According to data from the General Statistics Office, as of July 1, 2020, Vietnam had 9.123 million agricultural, forestry, and fishery production units. Among them, there were 9.108 million households, 7,418 cooperatives, and 7,471 enterprises. These are the entities directly involved in the digital transformation process in agriculture.

Digital transformation in Vietnam’s agricultural sector is expanding rapidly

Many technologies have been applied across various fields within the agricultural sector such as crop production, livestock farming, forestry, and fisheries. Specifically:

• Crop production: application of IoT and Big Data technologies in analyzing the environment, crop types, and stages of plant development.
• Livestock farming: application of IoT, biotechnology, and blockchain technologies in livestock farms.
• Forestry: application of barcode DND technology in managing forestry seedlings and forest products; application of GIS technology in software for monitoring and early detection of deforestation and forest degradation.
• Fisheries: application of biofloc technology, RAS technology, and AI in aquaculture; application of GPS positioning systems in managing offshore fishing fleets; etc.

In terms of the current status of value chain linkage activities in digital transformation, to date, this activity has helped connect 9 million farming households with processing enterprises and hundreds of millions of consumers nationwide. Thanks to digital transformation, the agricultural sector is shifting from small-scale, inefficient production models to new production models.

Benefits of Digital Transformation in Agriculture

The application of digital transformation in agriculture brings numerous benefits to both individuals and production efficiency. Specifically:

• Minimizing risks of damage from climate change: Data analytics technology has the ability to analyze and manage climate data, provide early weather risk warnings, and suggest timely response measures.
• Connecting farmers directly with consumers: Sellers and buyers can connect directly without relying on middlemen, helping increase agricultural product output.
• Improving labor productivity: The adoption of remote-controlled production methods helps achieve higher agricultural efficiency, reduces labor costs, and increases income for farmers.
• Enhancing agricultural product quality: Technologies applied in agriculture assist in analyzing factors such as soil quality, sunlight, and environment, which lead to better decision-making in production and improve the quality of agricultural products.

 

Application of Technology in Agricultural Digital Transformation

An increasing number of technologies are being applied in the agricultural sector, bringing remarkable benefits to farmers. Some notable technologies that are enhancing quality and productivity in agriculture include:

Application of IoT and Sensor Technology in the Fields:

This technology allows farmers to view their crops from anywhere in the world through image recognition technology. The system can connect to devices installed in the fields to automatically irrigate and provide nutrients to the plants under human control. Additionally, this technology also updates information about the soil, environment, and water to make the best adjustments for the crops.

Technology applications in agricultural digital transformation in 2023 have been effectively implemented

Application of Machine Learning and Analytics:

Using machine learning and advanced analytics has the ability to mine data for trends in agriculture. Specifically, it can forecast crop characteristics, determine which genes are suitable for the local climate, and more. This algorithm also analyzes to provide reports on which products are selling the most and which are not, offering suggestions for farming practices that are suitable for both current and future conditions.

Application of Robotics and Artificial Intelligence (AI):

AI in agriculture has the potential to improve efficiency and increase yield. Robots are used in agricultural production such as: pesticide-spraying robots, weed-pulling robots, robots for identifying and pulling weeds, and tree-planting robots, among others.

Drones for Crop Surveillance:

Drones are used in agricultural cultivation. They are applied in crop monitoring, forecasting soil quality through 3D imagery, and providing analysis and modeling of crops.

Limitations and Challenges of Digital Transformation in Agriculture:

Digital transformation in agriculture has brought many significant achievements. However, the digital transformation process in agriculture in Vietnam still faces many limitations, especially in rural areas, such as:

• Low level of mechanization.
• Lack of alignment with technologies supporting agricultural development, such as machinery, deep processing, and product testing lines.
• Small farming areas, with the agricultural products largely dependent on the experience of farmers.
• Few businesses are investing in digital transformation, and limited specialized human resources.
• Limited awareness and skills in using digital technologies among farmers.

Digital transformation in agriculture is both an opportunity and a challenge

In addition, implementing digital transformation in the agricultural sector faces several challenges, such as:

• Volatility in input prices: Supply chain disruptions and climate change lead to increased costs of raw materials.
• Changes in consumer purchasing behavior: Consumers increasingly value transparency in the origin and nutritional value of products, which presents challenges in researching and improving production processes.
• Heavy reliance on manual labor: A large portion of agricultural production activities still depends on manual labor, resulting in high production costs and inconsistent quality.

Opportunities in Agricultural Digital Transformation

Despite facing numerous difficulties and challenges, it is undeniable that digital transformation in the agricultural sector still holds opportunities for growth.

There is great potential for applying digital transformation across various fields in agriculture, including crop cultivation, livestock farming, forestry, aquaculture, and agricultural management.

The demand for agricultural products is steadily increasing: the organic farming trend has emerged and is expected to continue growing in the future. Consumers are becoming more concerned with nutrition and the clear origin of agricultural products.

Some Solutions to Promote Effective Agricultural Digital Transformation:

Enterprises investing in digital transformation in the agricultural sector can apply several solutions such as improving human resources, adopting advanced technologies, and enhancing access to capital. Specifically, some solutions to promote digital transformation in agriculture and rural development are as follows:

• Building E-Government and Digital Transformation in Management to Propose, Direct, and Implement Effective Digital Transformation Projects in Agriculture
• Actively encourage the participation of businesses and young workers.
• Open training classes and workshops for digital transformation experts, covering both theory and practice.
• Strengthen communication efforts, organize and train people on digital skills.
• Train citizens on using e-commerce platforms to connect directly with consumers.
• Encourage people to use modern electronic devices and high-tech applications in agricultural production.
• Promote land consolidation and restructuring for agricultural production.
• Change the habit of manually recording farming and livestock activities by using electronic devices.
• Focus on building a big data system, especially focusing on data related to cultivated land, fruit trees, industrial crops, forest land, livestock, and aquatic products.
• Design a monitoring and observation network to support agricultural activities both on the ground and in the air.
• Enhance the provision of environmental, land, and weather information to help citizens improve crop yield and quality.
• Design data management software and assign tasks to individuals and organizations at the local level for collecting, updating, exploiting, and managing databases.

Digital Transformation in Agriculture is an Inevitable Trend for the Agriculture Sector in Vietnam and Worldwide. Vietnam has many opportunities but also faces numerous challenges in this process if not applied effectively.

Therefore, to achieve a successful digital transformation, the agriculture sector needs to implement effective solutions across multiple aspects, collaborating with farmers, government agencies, businesses, and more. We hope the information in this article has helped managers understand the process of digital transformation in agriculture. Thank you for reading!