Challenges of the digital transformation of the agri-food sector

Representatives Calidad Pascual, IBM, Telefonica Open Future_, and startups agrotech, Cropti, Fruitbull and DelSuper debatiron the difficulties, strengths and challenges of digitization in this area. For startups that participated in the debate that the food industry is so regulated as financial must be an opportunity for farmers. The speakers noted that while the sector is modernized, is not digitized so inefficiencies between production and consumption occur.

Telefónica building in Gran Via de Madrid (Spain), the meeting “digital transformation in the food sector,” the hand of Telefonica Open Future_ and Calidad Pascual took place. The symposium was attended by Valentin Fernandez, Global Director of Business Development and Alliances of Telefónica Open Future_; Michael Joseph, Chief Digital Officer of Calidad Pascual; and Luis Perez Ballesteros, head of Consumer Product IBM Spain.

In addition, also they attended the founders of some of the leading startup Wayra (Accelerator Telefonica Open Future_): Juan Rivero, of DelSuper; Santiago Alvarez, Fruitbull; and Eugenio Fernandez, Cropti.

During the meeting the state of the food industry in Spain compared to Europe and the need to focus on innovation and application of technology in this sector, with initiatives such as Startup Pascual, it was discussed.

Michael Joseph, Chief Manager of Digital Calidad Pascual, said that in Spain “there is a clear opportunity in the agri-food sector innovation, but the cautious mentality of the sector is a natural barrier that we must go breaking. We need a quantum leap. ” Certainly, as Joseph continued, “there are many initiatives that they require is adequate support and be believed and listened to by the companies.” In this regard, mentioned the Startup program Pascual, Pascual driven awards Quality award focused on the most disruptive projects in different areas of the food industry.

A qualitative leap that Luis Perez Ballesteros, head of IBM Consumer Products also referred Spain: “Spain is a world power in the production of wine, citrus, olive oil, etc .; but we need to equip ourselves with certain innovation capabilities. Being producers not only leaders but manage to have leading industries, such as Pascual Quality “.

This gap was highlighted by Eugenio Fernández, founder of Cropti: “We are very tech sector; but little digitized and, in general, with an aversion to innovation because our cycles are 1 year, jugándonos much at that time, and our ability to trial and error is very small.”

Israel, head of innovation also in the food industry

Regarding the reference countries in agrifood innovation, Luis Perez pointed to Israel as a pioneer in supporting the agrifood innovation country “Israel has a large ecosystem of startups that are part of our cluster on merit, without having a great agrarian wealth”.

A view shared by Michael Joseph: “Israel is a real country of startups, even ahead of US It has very interesting initiatives around the use of natural resources. ” In addition, the Chief Digital Quality Manager Pascual said the Netherlands “as other European countries to which we must look from Spain”. Joseph did not want to close his speech without remark that “Spain has natural talent for ideas, it is a hotbed of creativity; we just need all mature and become a huge opportunity.

“Valentin Fernandez, Global Director of Business Development and Alliances of Telefónica Open Future_, also supported the idea of ​​Israel “as a reference country” and recalled that it is the second country in the world that more companies “placed” on the Nasdaq. And he wanted to support the theory Michael Joseph, “certainly in Spain there is much creativity in the agro sector. Of the more than 600 companies in which Telefónica Open Future_, more than 10% are in the food sector. ”

Another participant startup, DelSuper, through its founder Juan Rivero, said that “US It is the great paradigm in innovation in product distribution, with a high number of early-adopters “. Rivero also encouraged to look at the examples of France or UK: “These countries have a digital distribution rate of 6%. It is difficult in Spain have targeted that figure today, we are at 0.6%; but as DelSuper projects we are working to allow the consumer to choose when, how and where to purchase “with a single click.

Technology as key to give value to the product

Inefficiencies in the sector were also protagonists in the debate. In this sense Santiago Alvarez, Fruitbull, said that “the most important thing is to have access to food at a price that corresponds with reality and this is not happening. If we market products that do not know why its price; we end up with a total lack of definition throughout the chain. ”

In this line the rapporteur positioned IBM: “It is necessary to align production with consumption and enhance the product and this technology can help tremendously.”

Michael Joseph wanted to put an optimistic note and inefficiencies rather than declined to discuss opportunities: “In Calidad Pascual believe there is a clear opportunity between food and medicine and we are beginning to explore hand Laboratorios Esteve”. Quality Pascual representative spoke of the ability of the company “to cover an untapped niche to date, food for people with diabetes, through the DiaBalance range. We have been able to create products that, in theory, a person with diabetes may not take as chocolate custard, pasta or bread. ” The key to Michael Joseph has been “create adequate food from the medical point of view, while very rich and appealing from the sensory part.”

The importance of support from the government

The role of government was in the mouth of the speakers at several of the questions. Thus, IBM Luis Perez said “it is important that the Administration facilitate the creation of innovative companies and help speed up the process.” In this sense, Michael Joseph recalled that the Ministry of Agriculture, Environment and Food “provides full cooperation, and has been involved in the Pascual Startup project, whose awards are given on Friday 17 June at the headquarters of MAGRAMA “.

Eugenio Fernandez de Cropti, bring up the role of authorities and legislation, he noted that “we need to see the roles and regulation as an opportunity to better understand our industry.”

Where is the industry going? The consumer can decide

It also challenges the food industry will face in the near future to modernize and stand out as one of the catalysts of economic growth in Spain were also discussed.

Luis Perez called for “the ability to integrate. We have a successful model where the value chain is connected through ecosystems “; while recalled is fundamental “work on water use. 70% of water is consumed by the sector and the agro industry. I would like to see projects focused on how you can reduce water consumption, achieving more efficient crops. ”

Michael Joseph supported this idea: “You can be green and profitable and where we should go.” Along with this idea said another major challenge “that the consumer has the ability and opportunity to decide, based on real-time information, what you want, when and where.”

In this regard, Valentin Fernandez, said that “the consumer is going to demand this and this is where it becomes important to be transparent.”

Eugenio Fernandez, Cropti said that “we can not compete in quantity but we can and must do in quality.”

For his part, Juan Rivero, of DelSuper, “we are fighting for the consumer to have the power of decision and are working to achieve reach 3% digital penetration in the distribution in the coming years.” Hard work, as he said, “because in Spain we must redouble efforts every time we take a new product and service, for the early-adopters are still scarce.”

Santiago Alvarez, Fruitbull, placed the emphasis on the information: “Information is a key factor and therefore has to be specialized, we need to know what we are talking about, have independent information and, above all, in real time “.

The conference ended with the appeal of Michael Joseph, Calidad Pascual, to “go for the collaboration.” As he recalled, “it becomes essential to bet on an open and collaborative innovation, as we are doing in our company. There are many ideas and projects that are not known for lack of support and it is this reality that we are trying to change. Large companies have a duty to support and give value to all small initiatives focused on improving the entire chain of the food industry. Alone, we will not go.”

Source: Calidad Pascual