Agriculture in the Age of 5G
Malaysia’s agriculture industry could be in for a major production boost as next-gen farmland machinery and sensor technology begin take up residence throughout the country’s sprawling farmlands and estates.
According to Digital Nasional Berhad (DNB) Head of Enterprise Strategy Prem Kumar Menon, 5G will be a key enabler of autonomous monitoring capabilities and predictive crop management. “Given the size of industrial farmland in Malaysia and ongoing manpower challenges, large scale automation is starting to make economic sense. 5G connectivity will harness various disparate technologies into a holistic, end-to-end solution that automates much of the industry, improves overall cost efficiencies, crop yield and takes advantage of economies of scale.”
A major advantage of 5G connectivity, especially in agriculture, is its ability to support up to one million connected devices per square km, as opposed to 10,000 devices per square km in the present 4G environment.
The vastly increased bandwidth capabilities of 5G (up to 10 Gbps, or between 10x and 100x the speeds of the 4G network) could also support the near real time deployment of networked, intelligent machinery that have much higher bandwidth demands.
Indeed, a November 2021 report from EY entitled “Estimating the economic impact of the Single Wholesale 5G Network in Malaysia” projects a 2.6% increase (equivalent to a RM3.5 billion incremental uplift) to the sector’s GDP contribution in 2030.
5G touchpoints in agriculture
According to Nur Yasmin Ahmad Rizal, a sustainability and ESG analyst at agritech solutions provider IRGA Sdn Bhd, less than 10% of in-field plantation operations in Malaysia today are digitised or digitalised.
“As such, there is massive potential for digitalisation to improve operational visibility, labour productivity and allow users to make precise and effective decisions in a timely manner to meet production goals, service ESG expectations and improve overall profitability for their enterprises. The data gathered could include pertinent ESG metrics that can help plantations track, report and act on their ESG performance,” she said.
The vastly increased bandwidth capabilities of 5G (up to 10 Gbps, or between 10x and 100x the speeds of the 4G network) could also support the near real time deployment of networked, intelligent machinery that have much higher bandwidth demands.
Embedded sensors can be used to gather, track and share key metrics from the field about conditions pertaining to soil, health, pests, and crop quality so that remote staff can modify equipment settings and processes to optimise productivity and predict biological outcomes.
IRGA co-founder Harish Subramaniam notes three broad categories of plantations in Malaysia, each with varying tendencies towards digital transformation:
- Large agricultural businesses whose scale justifies the adoption of various technologies that could enable predictive management and maintenance of farmlands;
- Mid-sized companies in their “high growth” phase, typically helmed by younger (and digitally savvy) management who recognise the importance of incorporating technology in the field;
- Smaller companies and/or smallholder agricultural concerns that have historically relied on manual labour and are now struggling due to shortages.
Harish believes larger agriculture businesses would be early beneficiaries of a suite of 5G-powered technological solutions.
“Larger plantation businesses are likely to have an end-to-end system in place, whereby weighbridge platforms and processing mills are involved and open to being augmented with 5G-enabled technologies. IoT sensors, strategically installed throughout the entire production would be utilised to collect vast amounts of data, all of which could be pulled together instantly to derive unique insights and create opportunities for immediate improvement in the field.
“The premise is simple; the more data collected, the better that business’ ability to respond to and improve on daily operational activities. The technology would likely complement the existing framework, assisting field workers by allowing them to report on field activities using tablet devices and generally speeding up the reporting processes overall.
“The nationwide 5G rollout is a major economic catalyst for Malaysia. Without the ultrafast speeds and mass connectivity that will be enabled by 5G, the technologies that we hope to introduce into the industry cannot be effectively implemented.”
Palm oil industry a key beneficiary
Rajindran Irusan, CEO of the Incorporated Society of Planters (ISP) believes 5G could significantly improve plantation-related activities, particularly the oil palm industry. Founded over a century ago, the ISP represents plantation professionals and provides, among others, training and certification in plantation trades and professions.
A recent article from The Edge reported that Sime Darby Plantation Bhd is at risk of losing out on an estimated 1.2 million tonnes of unharvested Fresh Fruit Bunch (FFB) and loose fruits annually if the labour shortage persists.
Palm oil contributed some RM103 billion to the Malaysian economy in 2021. Considering palm oil prices tend to be more stable, with some level of automation already built into the sector, this could be the “low hanging fruit” to benefit from 5G-enabled services, particularly as the industry is mired in a protracted labour squeeze. “The local industry should pivot to automation and digitalisation given the severe shortage of guest workers,” said Rajindran.
A recent article from The Edge reported that Sime Darby Plantation Bhd is at risk of losing out on an estimated 1.2 million tonnes of unharvested Fresh Fruit Bunch (FFB) and loose fruits annually if the labour shortage persists.
The Malaysian Estate Owners’ Association (MEOA) in an earlier report attributed falling FBB yields to ongoing labour shortages in the industry. According to figures from the Malaysian Palm Oil Board (MPOB), the average FFB yield of oil palm estates fell from 17.2 tonnes/hectare in 2019 to 15.5 tonnes/hectare in 2021.
Local technology solutions provider Propick Digital Solutions & Consulting projects the implementation of digital farming practices – comprising among others, unmanned aerial vehicles (UAVs) to monitor crop health and motion sensors that send regular alerts with high-resolution imagery (in near real-time) to plantation teams – can be used to improve FFB yield by approximately 40%.
In fact, Propick contends that FFB yield could be improved by up to 14% simply by incorporating monitoring technology into the industry, for instance, to optimise the use of fertiliser.
Going forward, it is important to take a holistic view in addressing key pain points in the agriculture sector, says DNB’s Prem Kumar. “The ecosystem comprising plantation owners, solutions providers, and mobile network operators (MNOs) should work together to consider how various 5G-enabled solutions will solve key labour and automation challenges in the industry,” he concluded.