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AGRICULTURE, TECHNOLOGY& EQUIPMENT: THE CONNECTED FARM. Robert H. Buker, Jr. President and CEO. U.S. SUGAR CORPORATION-- ASSETS. 193,000 acres 173,000 acres sugar 20,000 acres citrus North America’s most efficient sugar milling operation - PowerPoint PPT Presentation
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AGRICULTURE, TECHNOLOGY& EQUIPMENT:
THE CONNECTED FARM
Robert H. Buker, Jr. President and CEO
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U.S. SUGAR CORPORATION-- ASSETS
• 193,000 acres– 173,000 acres sugar– 20,000 acres citrus
• North America’s most efficient sugar milling operation– 38,000-42,000 ton per day mill built in October, 2007
• 1 integrated refinery with packaging: 15 million cwt. capacity• Railroad operations
– 278 miles of track– 28 locomotives– 1138 railcars
• 1 citrus factory: 21 million box capacity• Citrus nursery—North Central Florida• NFC aseptic storage: 52 million gallons• Total 1600 employees
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LAND ASSETS—200 SQ. MILESSPREAD ACROSS 5 COUNTIES
Each block is one square mile
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PRODUCTION
• 140,000 sugar acres harvested annually• 7 million tons sugarcane produced• 700,000 tons of sugar produced• 1.95 million tons bagasse (cane biomass)
produced to run raw factory/refinery• 30-35 million gallons molasses produced• Three million boxes of oranges grown• 120 million gallons of 100% pure, premium Florida
orange juice
BUILT STATE-OF-THE-ART SUGAR FACTORY IN 2007
• New facility is the lowest cost sugar producer in US & Mexico
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CURRENT CHALLENGES
• Farming operations account for 2/3 of our cost • We must farm cheaper than Mexican sugar
producers – NAFTA opened borders in 2008• Price of sugar dropped 50% over last two years
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RESULTS OF NAFTA
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AGRICULTURAL OPERATIONS—OUR HORIZONTAL FACTORY• Farming 173,000 acres of sugarcane
across 5 counties• >2500 pieces of equipment• 1 supervisor for 10,000 acres• Plenty of data—we needed to
leverage it better
THE BURNING PLATFORM
• Commodity business– Sugar pricing dropped 50%
• High crop input costs– Don’t expect relief from crop input
pricing• Cane production is the driver
– Outweighs cost reduction in the unit cost equation
• Budget cuts put crop production at great risk
• We have the best people……but not the best tools
• There is no silver bullet……we need a lot of bronze bullets
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BE THE BESTAT WHAT WE CAN CONTROL
Weather and Sugar Price (Can’t Control)
Key Cost Inputs (Labor, Equipment, Crop Inputs, Fuel)
Planning Execution
Optimal Economic
Cane Production
Can’t Control Maximize ROI (Precision, Quality, Efficiency, etc.)
Input Prices Input Volume
Operational Excellence
Operational Excellence
OPx
OPx
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FIELD TECHNOLOGY HAS CHANGED THE WAY WE OPERATE
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• Provides “virtual supervisor” reports on tractor location & movement
• Green Seeker—only sprays fertilizer & insecticide on plants
• Reduces spray rate variation• Precision guidance of tractors & implements
results in 18% reduction in passes through field • Savings in fuel, chemicals, labor
BUSINESS INTELLIGENCE WILL CHANGE THE WAY WE OPERATE• Field technology is important,
but a distant second to business intelligence and information management
– Crop models– Operational planning and
execution– Utilization, productivity, and
efficiency– Analytical tools– Reporting and visualization
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IMPROVED EXECUTION = INCREASED TONS
• Correct implement
• Chemical cultivation
• Mechanical cultivation
• Not too early
• Not too late
• Correct settings
• Correct speed
• Correct pH
Right Thing Right Time Right Way
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TECHNOLOGY SOLUTIONS
Partnered with Trimble (Leader in Ag technology markets)• Large scale application of technology• RTK (Real Time Kinematic positioning--improves
accuracy to one inch levels)• Autopilot• Flow control (precise chemical applications)• Field IQ (crop control input system)• Data Communication (DCM wireless data transfer)
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• Established the largest, contiguous Wi-Fi Network in the world across 173,000 acres of sugarcane fields
– To capture and direct information from our farming operations• Hardware (i.e. existing products)
– Immediate improvement of field operations• Decision support tools
– Better understanding of actual performance vs. plan• Productivity, efficiency, timing, etc.
– Better understanding of cause and effect relationships that impact cane production
• Software solutions– Reports– Tools to visualize data and information– Integration with other data sources
THE CONNECTED FARM
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TECHNOLOGY BENEFITS
• Management system improvements
• Increased cane production• Lower cost• Improved equipment reliability• Improved operator
performance• Increased safety and security
Expected Benefits are $34M on a sustainable basis
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Overlap Reduction - Disking
AutoPilot3 passes – 72 ft
Manual3 passes – 60 ft
20% increase
ROI based on 15%by year 3
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Spray & Finish Improvements
• Field technology (AutoPilot, Field IQ, etc.) is delivering both expected and unexpected benefits
Better quality plow “finish” leads to less subsequent
passes
Spray rate variation was much greater than we anticipated
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Connected Farm
Initial Focus• Increase
productivity and efficiency
• Drive out operational delays
2013 Benefits
• Spray (Herbicide) Program– $15/acre or $2.0M below baseline
• Land Prep (Planting)– 15% reduction of hours per planted acre (>6,000
hours)– >$700,000 potential impact
• Fuel Use Reduction– Identified opportunities to reduce tractor fuel burn
rates• Optimize gear selection and rpm
– ~1 gal/hr reduction or ~$500K annually
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CLOSING
“As a military helicopter pilot, outdated equipment and information can result in immediate and often fatal consequences.
As a business, outdated equipment and information can result in a slower and less dramatic fatality, but dead is still dead and your competitors will dance on your grave.”
Robert H. Buker, Jr.
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