The agrifood sector faces numerous technological challenges, requiring significant transformations to adapt to the demands of the modern world. Digitalization in this field is not just a trend but a necessary evolution that involves collecting data, analyzing it, and using the insights gained to make better decisions that will optimize the entire value chain. The goal of this transformation is to eliminate or reduce existing technical, legislative, economic, and educational barriers, enabling rural areas to embrace the future era.
To monitor this transformation, the Ministry of Agriculture, Fisheries, and Food, along with the Cajamar Cooperative Group, established the Observatory of Digitalization in the Agrifood Sector. Since 2019, this observatory has played a vital role in the governance of the Agrifood Digitalization Strategy, collecting information on the degree of technology adoption in the sector to help its digital transition. Due to the success of this initiative, which benefited from a budget of €1 million from the Next Generation funds between 2021 and 2023, the funding has been increased by €370,000 for the years 2024 and 2025.
Current State of Digitalization in the Agrifood Sector
The Observatory of Digitalization in the Agrifood Sector reveals some intriguing statistics about the adoption of digital tools within the agrifood industry. According to the observatory’s data, 82.8% of agrifood professionals use corporate email as a primary communication tool. Following email, office software ranks second, used by 78.4% of professionals in the sector, while antivirus programs are employed by 73.9%. These are the most widely used tools, indicating a fundamental level of technological adoption in the agrifood industry.
Additionally, digital invoicing has found moderate to high adoption, with 63% of professionals in the agrifood sector using electronic invoicing systems. E-commerce is also gaining ground, with 30.3% of agrifood activities using online sales channels. The most proactive regions in marketing agrifood products online include Basque Country (66.7%) and Asturias (66.7%) for agriculture, La Rioja (40%) for livestock, and Navarre (42.1%) for agro-industry.
This data highlights the ongoing efforts in the digitalization of the agrifood sector, but it also emphasizes that there is much more potential for growth and integration of technology in rural and farming communities.
The Role of Disruptive Technologies
To ensure the future of agriculture in the digital era, the industry must embrace disruptive technologies. The Internet of Things (IoT) is at the forefront of this transformation, revolutionizing the management of agricultural activities. IoT sensors and devices, placed in fields, can collect real-time data on critical factors like soil moisture, temperature, air quality, and crop health. These data points allow farmers to make informed decisions that enhance resource management, optimize crop cycles, and reduce operational costs.
Moreover, Enterprise Resource Planning (ERP) systems are becoming indispensable for small and medium-sized agrifood enterprises (SMEs). These systems integrate various business functions such as accounting, logistics, production, and distribution into a unified platform. For the agrifood sector, ERP systems are particularly beneficial as they help track product traceability, manage inventory, and oversee supply chains. Such systems also ensure compliance with food safety and quality standards, making them crucial for maintaining high-quality production practices.
Another significant technological advancement is artificial intelligence (AI), which plays a key role in predictive analysis, crop health monitoring, and resource allocation. AI applications have become robust and practical tools in agriculture. For instance, drones equipped with high-resolution cameras can monitor the health of crops, measure soil moisture levels, and detect the presence of pests or diseases. AI-powered robots are also being developed, using computer vision systems and machine learning algorithms to autonomously identify and manage plants in the fields.
These innovations are driving efficiency and sustainability in the agrifood sector. By providing real-time insights, they enable farmers to better manage resources, predict crop yields, and mitigate risks related to pests, diseases, and adverse weather conditions.
Smart Management of Agricultural Data
The effective management of agricultural data is becoming a cornerstone for decision-making in the agrifood sector. With smart data management systems, farmers can track variables such as crop inventories, pest histories, product traceability, and harvest performance. For instance, initiatives like the Digital Farming Record Book (Cuaderno Digital de Explotación Agrícola, CUE) allow farmers to document important actions performed on their land, ensuring transparency and traceability in agricultural operations.
Furthermore, data-driven decision-making not only enhances efficiency but also offers an opportunity to boost sustainability. By monitoring factors such as water usage, energy consumption, and pesticide application, farmers can adjust their practices to minimize environmental impact. As sustainability becomes a more critical issue globally, these technologies offer practical solutions for achieving sustainable farming practices that protect ecosystems while enhancing productivity.
Automation: A Game-Changer in Agriculture
Automation is one of the most exciting developments in modern agriculture. It is expected that 57% of agricultural activities in Spain could be automated in the near future. Automation optimizes agricultural tasks, such as planting, harvesting, and pest control, freeing workers from repetitive tasks and enabling them to focus on higher-value activities.
For example, automatic guidance systems in agricultural machinery have improved farming practices. These systems, in combination with international standards like ISOBUS, provide precise control over farming equipment, ensuring optimal use of inputs like fertilizers and pesticides. These systems also enhance fuel efficiency and reduce environmental impact by minimizing waste.
The Role of European Funding in Agrifood Digitalization
The transformation of the agrifood sector is not happening in isolation. European funding, particularly through the Next Generation EU recovery funds, is playing a vital role in facilitating the digitalization process. Between 2021 and 2023, the Spanish government allocated €1 million to the digitalization observatory, and an additional €370,000 will be invested in 2024 and 2025. This funding is critical for supporting small and medium-sized agrifood enterprises (SMEs) in adopting new technologies that improve efficiency, sustainability, and profitability.
These subsidies also encourage agricultural enterprises to invest in disruptive technologies, ensuring that those who commit to digital transformation are equipped with the necessary tools to thrive in the future.
A Promising Future for Agrifood Digitalization
The digitalization and automation of the agrifood sector are unlocking tremendous potential for innovation and growth. From IoT devices that monitor real-time data to AI applications that predict crop health, technology is transforming agriculture into a more efficient, sustainable, and productive industry. With the support of European funding and the continued efforts of initiatives like the Digitalization Observatory, the agrifood sector is well-positioned to adapt to the digital age.
By embracing digital tools, such as ERP systems, AI-powered drones, and automated machinery, agrifood professionals can not only enhance productivity but also promote sustainability and meet the challenges of a growing global population. The future of farming lies in the hands of those who are ready to invest in these technologies, driving innovation, efficiency, and environmental responsibility in the process.
The ongoing digital revolution in agriculture presents an exciting opportunity for rural communities to thrive in the 21st century. The successful implementation of these technologies, however, will depend on continued investment, education, and the removal of technical and financial barriers that currently limit adoption. As we move forward, the digitalization of the agrifood sector will be crucial to ensuring a sustainable and prosperous future for both farmers and consumers alike.