The European Commission has launched a study to understand the potential uses of big data for the agribusiness system. The study aims to create an early warning system, similar to the one for health emergencies, in order to prevent market crises.
In other words, the Commission intends to create a centralized management system on the European territory that would particularly protect small farmers, who are the most affected by the crises caused by the climate emergency and the disruptions in agricultural commodity markets.
The outlook for the agribusiness sector
Agribusinesses exploiting big data and smart systems are able to save up to 30 percent on water, pesticides, and fertilizers. As of today, only 8 percent of the national agricultural area is cultivated thanks to Agriculture 4.0 solutions. A combination of data that reflects the enormous development potential for the agribusiness sector.
Toward the development of a smart system
The study was entrusted to Areté, an independent Italian economic research, analysis, and consulting firm specializing in agribusiness and related markets. The project aims to apply precision agriculture and the digital revolution to the agri-food sector in order to improve responsiveness to the upheavals affecting the sector.
Over the next 18 months, the study will map the best precision, monitoring, and data management systems worldwide (with a focus on the U.S., Canada, and Australia) to foster the development of the current European agrifood market information system. A necessity that ties in with the dismantling of the safety net provided by the outdated Common Agricultural Policy, whose aid system was based on reference prices of individual commodities.
The crises related to Covid and the war in Ukraine have made clear the need to organize a system that quickly vehicles clear information to enable agribusiness operators to effectively manage critical issues involving the entire sector.
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