Smart Farming: Final Assessment Report - CORDIS

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Deliverable D200.4Smart Farming:Final Assessment ReportWP 200Project acronym & number:SmartAgriFood – 285 326Project title:Smart Food and Agribusiness: Future Internet for Safe andHealthy Food from Farm to ForkFunding scheme:Collaborative Project - Large-scale Integrated Project (IP)Date of latest version of Annex I:18.08.2011Start date of the sther Mietzsch, Daniel Martini, Wolfgang Graf, Katalin Viola,Thomas Flörchinger, Nicole Hüther, Egon Schulz, LiisaPesonen, Alex Kaloxylos, Panagis Magdalino, Hanna Koskinen,Leena Norros, Markku Koistinen, Eleni Antoniou, Zoi Politopoulou, Carlos MaestreContributors:Due date of deliverable:31.12.2012Document V1.1-Final.docxRevision:1 1Date:2013-04-16

SmartAgriFood31.12.2012The SmartAgriFood ProjectThe SmartAgriFood project is funded in the scope of the Future Internet Public Private Partnerthship Programme (FI-PPP), as part of the 7 Framework Programme of the European Commission.The key objective is to elaborate requirements that shall be fulfilled by a “Future Internet” to drastically improve the production and delivery of safe & healthy food.Project SummarySmartAgriFood aims to boost application & use of Future Internet ICTs in agri-food sector by: Identifying and describing technical, functional and non-functional Future Internetspecifications for experimentation in smart agri-food production as a whole system and inparticular for smart farming, smart agri-logistics & smart food awareness, Identifying and developingsmart agri-food-specific capabilities and conceptual prototypes, demonstrating criticaltechnological solutions including the feasibility to furtherdevelop them in large scaleexperimentation and validation, Identifying and describingexisting experimentationstructures and start usercommunity building, resultingin an implementation plan forthe next phase in the framework of the FI PPP programme.Project Consortium LEI Wageningen UR; NetherlandsATB Bremen; GermanyTNO; NetherlandsCentMa GmbH; GermanyATOS ORIGIN; SpainASI S.L.; SpainHuawei; GermanyMTT Agrifood Research; FinlandKTBL e.V.; GermanyNKUA; GreeceUPM; Spain Campden BRI Magyarország, Hungary (CBHU)Aston University; United KingdomVTT; FinlandOPEKEPE; GreeceJohn Deere; GermanyWageningen University; NetherlandsEHI Retail Institute GmbH; GermanyGS1 Germany GmbH; GermanySGS S.A.; SpainBON PREU S.A.U.; SpainMore InformationDr. Sjaak Wolfert (coordinator)LEI Wageningen URP.O. Box 356700 AA Wageningene-mail:sjaak.wolfert@wur.nlphone: 31 317 485 939mobile: 31 624 135 lAssessment-V1.1-Final.docxPage 2 of 58

SmartAgriFood31.12.2012Dissemination LevelPUPublicXPPRestricted to other programme participants (including the Commission Services)RERestricted to a group specified by the consortium (including the Commission Services)COConfidential, only for members of the consortium (including the Commission Services)Change HistoryVersionNotesDate001Creation of the document2012-06-11006First complete version2012-12-191 0Reviewed by partners2013-01-291 1Adopted reviewer’s recommendations2013-04-16Document SummaryThis document delivers an overall assessment of the conceptual prototypes of the two SmartFarming sub-use cases “SmartGreenhouse” and “SmartSprayingThe end user validation has been done separately for the SmartSpraying and the SmartGreenhouse pilot. The results of the final end user evaluation are described in detail in this document.The end-users did see benefits of the proposed service and spraying concepts with regard to increased effectiveness of work and reduction of workload, but in particular they found chances todevelop the work, create learning possibilities and improve competences.The SmartGreenhouse pilot has been mainly evaluated in Greece, both in discussion panels andusing questionnaires. A vast majority of respondents regard the pilot as useful or very useful. Anumber of additional functionalities are suggested.In order to evaluate the overall outcome of the SmartFarming sub use cases, their economic andenvironmental benefits, social aspects, and the technical evolution path were evaluated. In orderto quantify the economic benefit of the FutureInternet technology to the farmer, a business casewas analysed. This analysis shows that even a minor decrease in costs in parallel with a moderateincrease in earnings which is made possible by an improved response to the market requirementscauses a significant improvement of the economic outcome of the farm. Considering the environmental aspects, SmartFarming can benefit by improving irrigation, site-specific pesticide application and lower energy consumption. These aspects are described in further detail. The examination of the social aspects shows that the highest benefit is seen in the possibility to learn andto develop new competencies for farmers. The technical evolution prospects of the pilots is analyzed regarding extensibility, flexibility, scalability (how big is big data), and portability.In the last section, the functionalities of both pilots are linked to the responsible providers. Finally, the future development plan is discussed. It would be very important to involve the policy,government, and regulatory aspects into the development inal.docxPage 3 of 58

SmartAgriFood31.12.2012AbbreviationsCAGRCompound annual growth rateCAPEXCapital expenditureCOGSCost of goods soldDDeliverabledt1 tenth of a tonEBITEarnings before interest and taxEBITDAEarnings before interest, tax, depreciation & amortizationFIFuture InternetFI-PPPFuture Internet Public Private PartnershipGMGross marginICTInformation and Communication TechnologyIRRInternal rate of returnMVAMarket value addedNOPATNet operating profit after taxNPVNet present valueOPEXOperational expenditureP&LProfit & LossTCOTotal cost of ownershipWACCWeighted average capital nal.docxPage 4 of 58

SmartAgriFood31.12.2012Table of ContentsExecutive summary . 61Introduction . 72Validation Results . 82.13User evaluation of the pilots in Finland and Greece . 82.1.1Intermediate evaluation results of Smart spraying (Finland) .82.1.2Final evaluation results of the Smart spraying/farming pilot (Finland) .142.1.3Intermediate evaluation results of Smart greenhouse management (Greece) .29Evaluation . 393.1Economical aspects . 393.1.1 Financial benefit to farmers .393.2Environmental aspects . 413.2.1 Key features of Smart Farming pilots to decrease environmental impact .433.3Social aspects . 443.4Evolution path . 453.4.1Extensibility .453.4.2Flexibility .463.4.3Scalability .463.4.4Portability.493.5Responsibilities and organization . 504References . 535Appendix A . l.docxPage 5 of 58

SmartAgriFood31.12.2012Executive summaryOne of the goals of WP200 “Smart Farming” was to develop a small scale prototype pilot systemto demonstrate the key features of the smart farming use case. For two sub-use cases “SmartGreenhouse” and “SmartSpraying”, conceptual prototypes were developed. Along the realisationof the conceptual prototypes and their overall assessment, the sub-use case related functionalitieswere further evaluated with end-users and documented. This document delivers an overall assessment of these two conceptual prototypes. The target audience are the project partners withinthe FutureInternet project and decision makers, but also end users such as farmers and developers of agricultural software who want to be aware of future trends.The end user validation has been done separately for the SmartSpraying and the SmartGreenhouse pilot. The first five steps of the end user evaluations of the SmartSpraying concept confirmed its potential and provided the basis for further development of the pilot. The results of thefinal end user evaluation are described in detail in this document. The end-users did see benefitsof the proposed service and spraying concepts with regard to increased effectiveness of work andreduction of workload, but in particular they found chances to develop the work, create learningpossibilities and improve competences.The SmartGreenhouse pilot has been mainly evaluated in Greece, both in discussion panels andusing questionnaires. A vast majority of respondents regard the pilot as useful or very useful. Anumber of additional functionalities are suggested, e.g. Extension of the pilot for the outdoorcultivation.In order to evaluate the overall outcome of the SmartFarming sub use cases, their economic andenvironmental benefits, social aspects, and the technical evolution path were evaluated. In orderto quantify the economic benefit of the FutureInternet technology to the farmer, a business casewas analysed. This analysis shows that even a minor decrease in costs in parallel with a moderateincrease in earnings which is made possible by an improved response to the market requirementscauses a significant improvement of the economic outcome of the farm. Considering the environmental aspects, SmartFarming can benefit by improving irrigation, site-specific pesticide application and lower energy consumption. These aspects are described in further detail. The examination of the social aspects shows that the highest benefit is seen in the possibility to learn andto develop new competencies for farmers. The technical evolution prospects of the pilots is analyzed regarding extensibility, flexibility, scalability (how big is big data), and portability. Thepilots are based on open and widely used standards and use the FI-WARE’s new technology,which makes them extensible, flexible, scalable and portable.In the last section, the functionalities of both pilots are linked to the responsible providers. Finally, the future development plan is discussed. It would be very important to involve the policy,government, and regulatory aspects into the development inal.docxPage 6 of 58

SmartAgriFood31.12.20121 IntroductionThis document delivers an overall assessment of the conceptual prototypes of the two SmartFarming sub-use cases “SmartGreenhouse” and “SmartSpraying”. Special emphasis is put on theimpact for end-users. The sub-use case related functionalities were further evaluated with endusers and documented.The target audience are the project partners within the FutureInternet project and decision makers, but also end users such as farmers and developers of agricultural software who want to beaware of future trends. A major part of the results provided in this document were obtained byuser evaluation. Another important source is a benchmarking study. Last not least relevant inputwas provided by the developers of the pilot application, which was further investigated in desktop research.The main challenge of today’s agrifood sector is to meet the increasing food demand and at thesame time reduce the ecological footprint of food production. The agrifood industry has also toprovide more transparency to allow a better feedback on how the political, economical, socialand health requirements are met. These targets can only be reached by a knowledge driven industry with ICT as a key factor. This document analyses how the SmartFarming sub-use casescan contribute to meet the challenges of future agri-food production.The results of the validation of the two pilots with end-users are presented in 2. The followingchapter evaluates the economic, environmental and social impact of the SmartFarming use case.3.2. analyses how the pilots can contribute to a more efficient use of resources.Some considerations can only be given as an indication or potential of what is to be expected.Definitive numbers require actually implementing and deploying the pilots on a larger scale.As described in the section 3.4.1 the software architecture in SmartFarming pilots follow SOAparadigm. Both pilots consist of a set of un-associated, loose coupled services that are published

Due date of deliverable: 31.12.2012 Document identifier: docx Revision: 1_ 1 Date: 2013-04-16 . SmartAgriFood 31.12.2012 docx Page 2 of 58 The SmartAgriFood Project The SmartAgriFood project is funded in the scope of the Future Internet Public Private Partner-ship Programme (FI-PPP), as part of .

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