How big data will revolutionize the global food chain
This article by Mckinsey shows in what way the advanced analytics of big data opens vast untapped potential for farmers, investors, and emerging economies to reduce the cost of goods sold. By taking advantage of big data and advanced analytics at every link in the value chain from field to fork, food companies can harness digital’s enormous potential for sustainable value creation. Digital can help them use resources in a more environmentally responsible manner, improve their sourcing decisions, and implement circular-economy solutions in the food chain. For food producers, the opportunities begin upstream and end downstream. At the upstream end, the agricultural practices followed by dairy farmers, cacao and coffee producers, wheat and barley producers, cattle farmers, and so on result in enormous variations in commodity costs in an industry where raw materials represent easily 60 percent of the cost of goods sold. The opportunities for digital innovation in the food chain are enormous and vary by context, with some well suited to emerging markets and others more appropriate to mature economies. Emerging markets can tap the potential of digital in the food chain through innovations such as precision agriculture, supply-chain efficiencies, and agriculture-focused payment systems.