IoT and other disruptive technologies

The Future of Farming and Food: Internet of Things, Block chain and other

disrupting technologies

Krijn Poppe Wageningen Economic Research

Based on work with WUR team (Sjaak Wolfert, Cor Verdouw, Lan Ge, Marc

Jeroen Bogaardt, Jan Willem Kruize and others)

October 2017 Cornell University, NY, USA

Wageningen University & Research

Wageningen University & Wageningen Research

Wageningen University & Research

Academic research & education, and applied research

5,800 employees (5,100 fte)

>10,000 students (>125 countries)

Several locations

Turnover about € 650 million

Number 1 Agricultural University for the 4th year in a row

(National Taiwan Ranking)

To explore the potential of nature to improve the quality of life

Krijn J. Poppe

Economist

Research Manager at Wageningen Economic Research

Member of the Council for the Environment and Infrastructure

(foto: Fred Ernst)

Member Advisory Committee Province of South-Holland on the

quality of the Living Environment

Board member of SKAL – Dutch organic certification body

Fellow EAAE. Former Secretary General of the EAAE, now involved

in managing its publications (ERAE, EuroChoices)

Former Chief Science Officer Ministry of Agriculture

Content of the presentation

What is happening: disruptive ict trends leading to data capturing

Why does that happen now: long wave theory

New players challenge food chains

Platforms

Blockchain

How we support innovation in the EU

Our approach to support innovation

Disruptive ICT Trends:

Mobile/Cloud Computing – smart phones, wearables, incl. sensors

Internet of Things – everything gets connected in the internet (virtualisation, M2M, autonomous devices)

Location-based monitoring - satellite and remote sensing technology, geo information, drones, etc.

Social media - Facebook, Twitter, Wiki, etc.

Block Chain – Tracing & Tracking, Contracts.

Big Data - Web of Data, Linked Open Data, Big data algorithms

High Potential for unprecedented innovations!

everywhere

anything

anywhere

everybody

• Products change: the tractor withICT – from product to service

• New products: smart phones, apps, drones: should markets becreated or regulated ?

New entrants:• Designers on Etsy• Landlords on AirBnb• Drivers on Uber

New entrants:• Direct international

sales by website• Long tail: buyers for

rare products

• Due to ICT new options to fine tune regulation / monitor behaviour

• Regulation can be out of date

• New types of pricing and contracts: on-lineauctions, dynamic pricing, risk profiling etc.

• Shorter supply chains (intermediaries as travel agencies and book shops disappear)

• Strong network effects in on-line platforms (rents and monopolies)

DATA CAPTURING TOOLS FOR

BETTER CONTROL

Prescriptive AgriculturePredictive Maintenance

10

IoT in Smart Farming

cloud-based event and data

management

smart sensing& monitoring

smart analysis & planning

smart control

Virtual Box

Location A Location B

Location

& State

update

Location &

State

update Location

& State

update

IoT in Agri-Food Supply Chains

11Drones, Big Data and Agriculture

http://www.google.nl/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=tJMJSfu51OOTgM&tbnid=CPuqLWtIna9VMM:&ved=0CAUQjRw&url=http://www.geokon.com/fiber-optic-temperature-sensors/&ei=6g48UtnaGIm70QXv7YGgCA&bvm=bv.52434380,d.d2k&psig=AFQjCNHCT9UrwjCOeYF02lWGnIvRKALgyA&ust=1379753921090342

http://www.google.nl/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=tJMJSfu51OOTgM&tbnid=CPuqLWtIna9VMM:&ved=0CAUQjRw&url=http://www.geokon.com/fiber-optic-temperature-sensors/&ei=6g48UtnaGIm70QXv7YGgCA&bvm=bv.52434380,d.d2k&psig=AFQjCNHCT9UrwjCOeYF02lWGnIvRKALgyA&ust=1379753921090342

IoT and the consumer: food and health

Smart Farming

Smart Logistics

tracking & tracing

Domotics Health

Fitness/Well-being

Towards smart autonomous objects

Source: Deloitte (2014), IT Trends en Innovatie Survey

Tracking & Tracing

Monitoring

I am thirsty: water me within 1 hour!

I am product X at locatie L of Z

My vaselife is optimal at a

temperature of 4,3 °C.

I am too warm: lower the

temperature by3 °C

Event Management

I am too warm: I lowerthe cooling of my truck

X by 2 °C.

I don’t want tostand besidesthat banana!

I am thirsty!

I am warm!

Optimalisation

Autonomy

http://www.google.nl/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://pixshark.com/optimization-icon.htm&ei=cQrjVJGhEMP0Oo2jgZgD&bvm=bv.85970519,d.ZWU&psig=AFQjCNH_3aQPpa0x7-CvYoNzqeGQ_tD1xw&ust=1424251839609737

Tuinbouw Digitaal © 2013

BIG

DATA

OPEN

DATA

TRANSFORM

MAP

ANONY MISE

AGGRE GATE

STRUCTURE

COMBINE

INTER PRETERE

GATHER

Social media - Unstructured - Event-driven Informatiesystems–Structured - Transaction-driven

Amsterdam January – the tulip pop-up event:

And its impact via Twitter

Big data analysis: Machine learning

17

5 important techniques in artificial intelligence:

1. Symbolic reasoning2. Connections modeled on the basis of the brain'sneurons3. Evoloutionary algorithms that test variation4. Bayesian inference5. Sytems that learn by analogy

tijd

Mate van verspreiding

van technologische revolutie

Installatie periode

Volgende

golf

Uitrol periode

Draai-

punt

INDRINGER

EXTASE

SYNERGIE

RIJPHEID

Door-

braak

WerkeloosheidStilstand oude bedrijfstakken

Kapitaal zoekt nieuwe techniek

Financiele bubbleOnevenwichtighedenPolarisatie arm en rijk

Gouden eeuwCoherente groei

Toenemende externalities

Techniek bereikt grenzenMarktverzadiging

Teleurstelling en gemakzucht

Institutionele

innovatie

Naar Perez, 2002

Crash

2008

1929

1893

1847

1797

time

Degree of diffusion of the

technological revoluton

Installation period

Next

wave

Deployment

period

Turning

point

IRRUPTION

FRENZY

SYNERGY

MATURITY

Big Bang

Unemployment

Decline of old industries

Capital searches new techniques

Financial bubbleDecoupling in the system

Polarisation poor and rich

Golden age

Coherent growth

Increasing externalities

Last products & industries

Market saturation

Disappointment vscomplacency

Crash

2008

1929

1893

1847

1797

Institutional

innovation

Based on Perez, 2002

The opportunity for green growth

1971 chip ICT1908 car, oil, mass production1875 steel1829 steam, railways1771 water, textiles

4 grand challenges: tomorrow’s business

Transport

Input industriesFarmer

Food processor Retail / consumerSoftwareprovider

Logistic solu-tion providers

Collaboration and Data Exchange is needed!

Food & nutrition

securityClimate

change

Healthy diet

for a healthy

life

Environmental

issues

Food chain: 2 weak spots – opportunity?

Input industriesFarmerFood processorConsumer Retail

• Public health issues –obesity, Diabetes-2 etc.

• Climate change asks for changes in diet

• Strong structural change

• Environmental costs need to be internalised

• Climate change (GHG) strengthens this

Is it coincidence that these 2 are the weakest groups?Are these issues business opportunities and does ICT help?





Platforms

Blockchain



Dynamic landscape of Big Data & Farming

22

Farm

Farm

Farm

Farm

Data

Start-ups

Farming

AgBusinessMonsanto

Cargill

Dupont...

ICT Companies

GoogleIBM

Oracle

...

Ag TechJohn Deere

Trimble

Precision planting...

ICT

Start-upsFarm

Ag software

Companies

AgTech

Start-upsVenture Capital

Founders Fund

Kleiner PerkinsAnterra

...

Farm

Ag Start-ups in the USA

23

USA Start ups in different activities

Farm data harvesting initiatives

Redefining Industry Boundaries (1/2)

(according to Porter and Heppelmann, Harvard Business Review, 2014)

25

3. Smart, connected product

+

+

+

2. Smart Product

1. Product

Redefining Industry Boundaries (2/2)

(according to Porter and Heppelmann, Harvard Business Review, 2014)

26

5. System of systems

farmmanagement

system

farm equipment

system

weather data

system

irrigation system

seed optimizing

system

fieldsensors

irrigation nodes

irrigation application

seedoptimizationapplication

farmperformance

database

seeddatabase

weather dataapplication

weatherforecasts

weathermaps

rain, humidity,temperature sensors

farm equipment

system

planters

tillers

combine

harvesters

4. Product system

Is this

‘mono-equipment

system’ reality?

How to cope with

changes in industry

boundries?

How many

platforms should

users and

developers enter?

Effects on Chain organisation

27

ICT lowers transaction costs

• In social media (Facebook etc.): the world is flat

with spiky metropolises

• In ‘sharing’ platforms (peer-to-peer like AirBnb,

Uber, crowd funding): creates new suppliers

(reduce overcapacity) and users. Long tail effects.

• In chain organisation: centralisation to grab

advantages of data aggregation or more markets?

• Platforms: centralisation via data management

Programmability: Low High

Asset specifity: Low High Low High

Contribution

partners

separable

High spot long-t. spot joint

market contract mrkt venture

Low coope- coop./ inside vertical

ration vertical contract owner-

© Boehlje ownership ship

Organisational arrangements in the food

chain are changing

Chain organisation changes (©Gereffi et al., 2005)

inputs

End p

roduct

PRICE

Shops

Complete Integration

Lead company

Leadcompany

Turnkeysupplier

Relationalsupplier

Market Modular Relational Captive Hierarchy

Low Degree of explicit coordination and power asymmetry High

Leadcompany

Farmers

2 Scenarios, with significant impacts ?

1. Scenario CAPTIVE PRODUCT CHAINS:

● Farmer becomes part of one integrated supply chain as a

franchiser/contractor with limited freedom

● one platform for potato breeder, machinery company, chemical

company, farmers and french fries processor.

● Weak integration with service providers, government ?

2. Scenario OPEN NETWORK COLLABORATION:

• Market for services, apps and data

• Common, open platform(s) are needed

• Higher upfront, common investment ??

• Business model of such a platform more difficult?

• More empowerment of farmers and cooperatives?

F

F





Platforms

Blockchain



There is a need for

software ecosystems

for ABCDEFs:

Agri-Business

Collaboration & Data

Exchange Facilities

• Large organisations have gone digital, with ERP systems

• But between organisations (especially with SMEs) data exchange and interoperability is still poor

• ABCDEF platforms help

law & regulation

innovation

geographic

cluster

horizontal

fulfillment

Vertical

Platforms as central nodes in network

economy: some agricultural examples

• Fieldscripts (Monsanto)

• Farm Business Network (start-up with Google Ventures)

• Farm Mobile (start-up with venture capitalist): strong emphasis on data ownership

• Agriplace (start up by a Dutch NGO with a sustainability compliance objective)

• DISH RI – Richfields (consumer data on food, lifestyle and health)

• FIspace (recently completed EU project ready for commercialisation via a Linux-like Open Source model)

Note the different business models / governance structures!

Agriplace –compliance in food safety etc. made easy

Two platform examples from our work

Donate to (citizen) research

RICHFIELDS: manage yourfood, lifestyle, health data and donate data toresearch infrastructure

audit

FMIS

FIspace: an eco-system of apps to push

data

FARMER SCANS PESTICIDES PACKAGE IN THE FIELD

APP CONNECTS BASF FOR E-INSTRUCTION, CROP AND SOIL SPECIFIC

APP ASK METEO FOR 24 hour WEATHER FORECAST

BASF SENDS INSTRUCTION TO SPRAYING MACHINE ON WATER / PESTICIDE RATIO >> Machine adjusts

APP CHECKS ADVISE WITH GOV.AGENCY

FARMER CAN SHARE DATA WITH GOVERNMENT, SGS-AUDITOR GLOBAL GAP AND PUBLIC

CAN I USE MY CURRENT

SERVICE ?

CAN I USE MY FMS ?

DOES IT WORK WITH

BAYER / DEERE

DOES IT WORK WITH

BRC / ISAcert

Can we link apps / services in a clever way ?

Leading to a market for services (apps and

data)?

Can this market be European (not MS), so

that development costs of services (apps and

data) are shared ?

Collaborative infrastructure

Scenario: get expert advice for spraying to handle disease on tomatoes

State AuthorityFranz Farmer Ed Expert

Spraying (follow advice)

Create Advice

Approval

Request Advice

Co

llab

ora

tive

Bu

sin

ess

Pro

cess

1

2

3

FIspace App

‘Weather Information’

FIspace App

‘Spraying Expert Advice’

FIspace App

‘Spraying Certification’

Bac

k-En

d S

yste

ms

Farm Management

Systems

Sensor Network in the Greenhouse

Agronomist Expert System

Regulations & Approval System

product type, etc.

sensor data (access details)

suggested chemical

advice details

certificationdetails

36

Towards highly integrated solutions

Platforms in the cloud of input suppliers and food processors:• What is the scope (connect only machinery or also with chemical

companies and accountants ?)• Reduce costs of linking individually with many other platforms and

software packages (especially in chains that are not integrated)• Is it possible to use apps with their own business model, so that the

platform does not have to pay all their costs? >> can (non-strategic) apps be available on several platforms?

• How to prevent that farmers complain to have to pay for basis apps (e.g. weather service) more than once?

MyJohnDeere.com Farmers

Biz architectbundles apps in a platform

...

80 Accelerator companies

Apps


Highly Integrated Service Solutions• Event-driven• Configurable• Customizable• Service model

Data (Standardisation) Services

AdaptEPCIS

MyJohnDeere.com

Data Standardsto connect

BusinessCollaborationServices -Based on OpenSource Software

Farmers


...


Apps

Modules:Single SignOnBiz Collab.Event Proces.System-Data integrationApp repository

FIspaceApp Store


Configure &Use Systems

First Commercial MVP by ... ?

App developer Business Configurator End User

Advertiser

Access fee

Use Fee Use Fee

Access fee (e.g. CargoSwApp)

Pay for app use (e.g. Spraying Advice)

Sponsored app

FIspace FoundationMVP – open source

My JohnDeere365 Farmnet

AkkerwebDacom/CROP-R

Datalab Pantheon

ICT company Service model ?

Value propositionPlatforms solve the issue of connecting individually with a lot of business

partners to exchange data : connect easily to apps (and data services in apps) based on EDI-standards or let farmers / end-users make the connection

App-developers Develop one app for different platforms Reach a European / Global market

Governments (and industry organisations)

See above for your government platform (paying agency, public advisory service etc.)Promote innovation by a competitive market for apps with new servicesPrevent lock-inn situations for farmers and unbalanced power relations in the information exchange in food chains

Farmers Not a direct FIspace client. Platforms using FIspace inside provide you more choice

Software writers in platforms and app-companies

Helps you to be part of an open source community that cares for sustainable food production with up to date ICT – be recognized by your peers


Highly Integrated Service Solutions• Event-driven• Configurable• Customizable• Service model

Data (Standardisation) Services

AdaptEPCIS

MyJohnDeere.com

Data Standardsto connect

BusinessCollaborationServices -Based on OpenSource Software

Farmers


...


Apps

Modules:Single SignOnBiz Collab.Event Proces.System-Data integrationApp repository

Is this commercially feasible?

Or is it too much a common pool

investment in a market where

everybody wants to grab a stake, over-

estimates the value of its own data and

finds it easier to builds its own website

?





Platforms

Blockchain



Agrifood chains are information intensive

... And there is more to come

Labels Claims Logos

Data in Blockchains

No 3rd party needed for Network Administrative Organization Distributed Automated Organization

● Higher transparency and credibility

● No current agri-food/ICT player is dominating

● Attractive/easy for small players to step in (inclusiveness)

● Less personal

Smart contracts: data is automatically exchanged according to pre-set agreements and rules

General: privacy and security can be better guaranteed

....

44

Towards Blockchain for a tangled web?

Case: Table Grapes produced in South Africa for the Dutch market

Concept: A single shared layer of truth?

46

Blockchain

Hyperledger permissioned architecture

How

Proof of Concept on case Table Grapes

• Feasibility of tracking certificates and ownership in

blockchain through smart contracts

• Demonstrating distributed database & immutability

• Demonstrating transparency on business rules and the

validity of certificates

• Added value

• Fraud detection and prevention

• Increased value of certificates

• Inclusive development

• But it will not solve all fraud in the food chain





Platforms

Blockchain



What is going on in the European Union cs.

• EU SCAR AKIS Towards the future – a foresight paper, 2015• ERA-NET ICT AGRI: strategic research agenda• Future Internet PPP

• Smart AgriFood, Fispace• Accelerator projects: Finish, SmartAgrifood2, Fractals

• H2020: Internet-of-Farm &Food-2020: Internet of

Things (30 mln.)

• European Innovation Partnership: seminar data driven

data models (Sofia) + benchmarking

• FNH-RI en RICHFIELDS: consumer data on food,

lifestyle and health

• Policy advice (OECD, EU Parliament, Dutch gov.)• Plus several other projects in H2020 where ict is an

important work package (e.g. Valerie)

FI-PPP Programme Architecture

90 M€ 80 M€ 130 M€

Accelerators

Building blocks for the Future Internet

52

Linked with theWhitehouse’ Global City Challenge

IoF2020: Overall concept (2017-2020, 30M€ funding)

A PUBLIC PRIVATE

PARTNERSHIP IN IOT

& AGRI-FOOD

SJAAK WOLFERT, SCIENTIFIC PROJECT COORDINATOR

OBJECTIVE

IoF2020 fosters a large-scale uptake

of IoT in the European farming and

food sector

• Demonstrate the business case of

IoT for a large number of application

areas in farming and food sector;

• Integrate and reuse available IoT

technologies by exploiting open

infrastructures and standards;

• Ensure user acceptability of IoT

solutions in farming and food sector

by addressing user needs, including

security, privacy and trust issues;

• Ensure the sustainability of IoT

solutions beyond the project by

validating the related business

models and setting up an IoT

ecosystem for large scale uptake.

55

IOF2020 IN BRIEF

56

16

COUNTRIES

4 YEARSStart = January

2017

€35 MILLION

BUDGET(€30 million co-funded

under EU H2020

programme)

71 PARTNERS

ORGANISATIONS

5 TRIALS, 19 USE CASES

57

MEAT

ARABLE

VEGETABLES

FRUITS

DAIRY

Optimizing cultivation and processing of wine by sensor-actuator networks and

big data

analysis within a cloud framework

BIG WINE OPTIMIZATION

OBJECTIVE

Deploy an IoT system

• based on 150

actuator/sensor nodes

• to monitor and gather

the data coming from 5

vineyards and cellars

• to perform data analysis

and decision making

• to improve the vine yield

and wine production

IOT SYSTEM

ARCHITECTURE

• Fixed and mobile sensors to monitor weather, vineyard and wine conditions

• Middleware to collect and analyse sensor data and actuate

• Applications to facilitate the decision making to monitor and control the vineyards and wine anytime and anywhere.

JANUARY 1 2017

Real-time monitoring and control of water supply and crop protection of table

grapes and predicting shelf life

FRESH TABLE GRAPES CHAIN

Yield +15% | Crop value +10% | Water usage -20% | Shelf life +20% Harvest rejection -20% | Post-harvest rejection -10%

SENSING AND MONITORING

Management Information Layer

Operations Execution Layer

Production Control Layer

Physical Object Layer

Actuate Sense

Analyse Fertiliser Pesticide Need

Plan Crop Protection

Farm ControlMonitor Crop Growth and Postharvest

Predict Yield (only

for crop growth)

Plan Harvesting

Definition Management

Detailed Scheduling

Execution Management

Data Collection

Data Analysis

Control Spraying Machine

Sense Crop Growth

Control irrigation system

Fertilisers and Pesticides Growing Crops

Irrigation System

FieldSpraying machine

Farmer Agronomic Engineer

machine settings

task instructions field sensor data Irrigation system data

machine requirementstask definition

aggregated data

Post Harvest System

Weather station

Sense Weather

Control Post Harvest

task instructionsSense Chemical and Physical Parameters

postharvest system data

Use case Partners

Optimize pig production management via on-farm sensors and slaughter house

data

PIG FARM MANAGEMENT

Objective

Provide the pig farmers with crucial information to effectively steer their

management to reduce boar taint, health problems, increase productivity

Data acquisition throughout the entire supply chain

IOF2020 ECOSYSTEM & COLLABORATION SPACE

WP

1 P

roje

ct

Coord

ina

tion

&

Ma

na

ge

me

nt

GENERIC APPROACH & STRUCTURE

WP2 Trials/Use cases: Knowledge & App developmentLean multi-actor approach

3. EVALUATION

1. CO-DESIGN2. IMPLEMENTATION

P1

P2

LARGE

SCALE

P3

WP3 IoT Integration WP4 Business Support

WP5 Ecosystem Development

TECHNICAL / ARCHITECTURAL APPROACH

Use case

architecture

Use case

IoT system

developed

Use case IoT

system

implemented

Use case IoT

system

deployed

USE CASE REQUIREMENTS

IoT reference

architecture

instance of

IoT catalogue

Reusable IoT

components

reuse

IoT Lab

Reference

configurations

& instances

reuse

Collaboration

Space

shared

services

& data

Pro

ject

level

Use c

as

e l

evel

sustain

reuse

Business support

Different business

models will be

tested to identify

the most successful

and sustaining ones

BUSINESS MODELS

Buying and selling a

product is te best

lorem service.

MARKET

STUDY

Develop standard

procedures and

guidelines to handle

sensitive

information and to

protect IP

PRIVACY

GUIDELINES

Calculate costs

savings and effects

on revenue

development &

financing plans for

farmers

KPI & IMPACT

OUTSIDE PROJECT

OPEN CALL

TOWARDS TO THE IOF2020 ECOSYSTEM

GENERAL PUBLIC

AND MEDIA

POLICY-MAKERS

AND REGULATORS

SCIENTIFIC

COMMUNITY

AGRICULTURAL (INDEPENDENT)

ADVISORY SERVICES

NGOS & INTEREST

ORGANISATIONS

IOT TECHNOLOGY

PROVIDERS

BUSINESS SUPPORT

ORGANISATIONS• Accelerators

• Incubators

• Chambers of commerce

• Enterprises networks

END-USERS• Farm equipment suppliers

• Food processing companies

• Retailers

• Transporters

• Consumers’ associations

INVESTORSFARMERS

COOPERATIVES CONSORTIUM PARTNERS

ICT research group: mission and approach

Support the agri-food business in implementing ICT solutions by:

Analysis – what are the ICT challenges for your business/sector?

Design – how should the ICT-solution look like? (based on reference

architecture/infrastructure)

Iterative implementation – by developing pilots and prototypes,

mostly in sector-wide or beyond-sector public-private projects

Business models, data ethics and governance as special focus

ECOSYSTEM & COLLABORATION SPACE

Pro

ject

Coord

ination

& M

anagem

ent

Our Approach...

Trials/Use Cases: Knowledge & App developmentLean multi-actor approach

3. EVALUATION

1. CO-DESIGN2. IMPLEMENTATION

P1

P2

LARGE

SCALE

P3

Technical IntegrationBusiness Modelling &

Governance

Ecosystem Development

Elements for an Agri-ICT research strategy

• Promote data-exchange (reduce administrativeburdens, create value via combination, aggregation)• Standardisation for interoperability; AgGateway, UN/CEFACT• Platform(s) for data exchange• Open data by government

• Promote innovation with new services• Especially ict-start ups, connect them with farmers and

companies (e.g. FIware 3 stage approach)• Internet of Things• Big Data (use of social media data, machine learning etc.) ?

• Advisory service: “just” another player in data exchange + update own software: go real time

• Research: support all this + real time agronomicmodels.

Don’t forget:• The interstates made the cars flowing, changed our way of

living more (specialisation, suburbs etc.) than the car itself.• We need utilities in rural areas: 3G/4G/5G, but also ABCDEF

platforms to combine and aggregate data for value creationand to create markets for apps

• It raises issues of data governance (business model, data ownership, organisation model) as (vendor)platforms are only linked to one part of the farm and can be natural monopolies with lock-in effects

• Solutions (market-based or otherwise) are contingent on situation and institutional environment

Thanks for your

attention

and we welcome

collaboration in

your projects !!

[email protected]

www.wur.nl

http://www.lei.wur.nl/