Page 68 - FoodFocusThailand No.202 January 2023

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Precision Farming AI technologies are being used to bring cornerstone of more accurate, agile, predictable supply
new depths of precision to farming. So, this might be analysis chains, helping businesses to plan for all eventualities and
of past harvests in terms of both quantity and quality, in delivering the actionable insight needed to stay one step
combination with weather forecasts to inform which fields need ahead of the competition.
watering and when, or when to use fertiliser perhaps. In the
aquaculture sector, there is a business that is using AI Sustainability The issue of sustainability is another
technology to ensure accurate doses of feed are administered area where AI is having a positive impact on food and
in shrimp farming, avoiding over and under-feeding. This serves beverage manufacturing. Businesses are able to use the
to lower the feed conversion ratio and shortens the shrimp insight generated by AI applications to minimise energy
production cycle, doubling production without huge and water usage, ensuring the most energy-efficient
intensification. production, alongside waste reduction at all potential
The adoption of Precision Farming presents a great touch points in the manufacturing process. In a similar vein,
opportunity to increase the efficiency of the Thai agricultural machine learning-based specification matching and
sector, according to the Economic and Business Research stock allocation enables manufacturers to ask if they can
Center the Siam Commercial Bank (SCB EIC). A study by the optimise the use of existing stock and still meet customer
Association of Equipment Manufacturers (AEM) found that specifications.
Precision Farming can increase productivity by about 6%, save As well, innovative businesses are taking quality
fertiliser and pesticide use by almost 15%, and reduce water information, in combination with ingredient shelf-life data,
consumption by up to 21%. Fertiliser costs tend to increase using AI to determine dynamic best before dates. AI answers
consistently, especially today. the question of ‘can we extend the shelf life safely considering
According to EIC, if technology innovation is successfully the quality at hand?’, which ultimately prolongs the sellable
fostered in the Thai agricultural industry, it will benefit the entire life of a product, reducing waste and increasing revenue. At
agricultural ecosystem, not only Thai farmers. The entire Thai the same time, AI technologies can facilitate smart shelves
agriculture sector will improve because of this. Additionally, in supermarkets, where prices are adjusted based on
one in five jobs in the agricultural sector are applying remaining shelf life and point of sales history, reducing waste
technology to change the type of agriculture can lessen the and increasing profitability further still.
environmental impact on the industry that produces the highest
greenhouse gases. Promoting the agriculture industry’s Maximise yield The ability to maximise yield is yet another
capacity to adapt to climate change, which is going to get worse area where AI can make a world of difference. Internet of
every day and further variation in the future. Things (IoT) devices in combination with machine learning
are optimising machine settings to maximise yield. For
Pricing Strategy Again, taking into account numerous example, manufacturers can ask how to maximise yield
factors, the application of AI technologies can inform a more considering the quality of ingredients and the process
effective pricing strategy. AI applications can quickly and conditions. Considering an almost inordinate number of
effectively analye all contributing variables, such as process parameters, it is possible for manufacturers to use
seasonality, competitor pricing, promotions, customer demand, AI to maximise the output of processes at every step of the
etc., building up a clear picture of pricing history and trends, way.
to inform recommendations regarding which products AI is all about connecting the dots, making the most of
should be sold at which price to maximise revenues. There is the huge amounts of data generated by the food and
already a leading European bakery ingredients business beverage sector, and using AI technologies to analyse this
doing just this, implementing the right technology to achieve data and gain a better understanding of the many and
optimal pricing recommendations for its wide range of complex variables at play within the industry. As more
products. businesses invest in AI technologies, so suppliers can create
more out-of-the box AI solutions. The learnings and
Mitigate Against Unpredictability Over the past two experiences of food and beverage manufacturers inform AI
years in particular, the unpredictability of food supply chains templates that can then be applied to similar businesses,
has had a massive impact on food and beverage manufacturing. delivering the insight needed to maximise efficiencies and
This is another area where AI can hold the key to unlocking boost revenue.To work, AI needs data. As long as there is
new, better ways of working. For example, the right AI tools data, it is possible to use AI technologies to recognise data
can predict sea vessel arrival times, helping manufacturers to trends and patterns, applying this learning and insight back
more accurately forecast when their raw ingredients will be to the business. It is this application of insight that is helping
arriving. It is the level of detail that AI brings that makes all the to create better, faster, more profitable operations at every
difference. Not only can manufacturers secure a more accurate stage of the supply chain, building a responsive and
picture of when ingredients will arrive, but the technology can resilient food and beverage industry right across the
also factor in considerations such as how long deliveries will world.
take to unload at the factory, instilling an even greater level of
accuracy when it comes to scheduling production to optimise
operations and maximise productivity.
This granularity of information is what makes AI the More Information Service Info C014

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