Innovation, Agrotech, & Agriculture 4.0

The Polish Ministry of Funds and Regional Policy (MFiPR) announced a funding award of ~€2.7m EUR to a Polish consortium that will undertake research and development of an intelligent, ‘precision farming’, field robot for maize cultivation.

Comprised of leading agricultural equipment manufacturer ‘UNIA’, the Industrial Institute of Agricultural Engineering, and the Institute of Aviation, the consortium will undertake research involving onboard sensor systems, a data processing system and a precise agrotechnical process control system.

The funding is part of the EU’s Smart Growth program managed through a subsidiary scheme called the Intelligent Development Program which is aimed at boosting innovation in Poland. Specialist consulting firm Bosetti Global Consulting, summarises the purpose of the intelligent development program as being to:

“…support implementation of the entire innovation process, from conception of an idea, through the R&D stage, and on to commercialization of R&D results i.e. launching a product or service.”

In their excellent report on ‘Agriculture 4.0’, Oliver Wyman states that:

“Agriculture 4.0 will no longer depend on applying water, fertilizers, and pesticides uniformly across entire fields. Instead, farmers will use the minimum quantities required and target very specific areas.”

In their announcement, MFiPR stated that the precise nature of the field robot will:

  • Significantly reduce the consumption of fertilizers and plant protection products.
  • Sow, heal, and monitor the condition of the crop.
  • Conduct selective spraying.

The Secretary of State at MFiPR, Anna Gembicka provided some additional commentary about the project and how it fits with the EU strategy of more intelligent farming:  

“Precision farming is the industry of the future, especially when it comes to Poland. Innovations in agriculture, including those related to the automation of machines and processes, are a priority area supported by European Funds, which thus accelerate qualitative change in the countryside.”

Days later the MFiPR announced that a further ~€22.4m EUR will be made available as part of an IDP backed ‘Agrotech’ fund. The funds can be used for industrial research, experimental development and pre-implementation work.

As part of the additional funding announcement, Secretary of State Anna Gembicka recognised the importance of the program to both Poland and Europe by stating:

“European Funds support innovation in all sectors of the economy, including the agri-food sector. Thanks to this, Poland can strengthen its high position in the production of healthy and valued food in the world and export high technologies for its production. These technologies can contribute to the modernization of agriculture in many countries”

As we’ve previously written, the food industry in Poland is a significant contributor to the Polish economy (valued at over €57b EUR) and a highly important part of long term food security within the EU.

AI drives small format convenience store growth.

The WNP.pl portal reported that Poland’s largest chain of small format convenience stores called ‘Żabka’ – which means ‘Frog’ in English – is using machine learning and AI to determine what inventory to stock at each of its locations (“hyper-personalization”).

WNP.pl quoted Tomasz Blicharski, VP of Finance & Development at Żabka Polska, as saying that machine learning plays a crucial role in determining which locations to open new outlets of the convenience store. The Żabka network already comprises 6,443 stores with 4,800 franchisees however it continues to add outlets to its portfolio.

We were not provided with many details on the exact AI & machine learning methodology but it’s clear there is a digital transformation underway at Żabka as they recently launched a home delivery service using Uber Eats and are pushing a consumer focused loyalty and discounts app.

Original article in Polishhttps://www.wnp.pl/tech/zabka-dzieki-sztucznej-inteligencji-otwiera-wiecej-sklepow,416368.html

‘Buy Polish’ campaign nets sales €186m EUR in one week.

According to ISB News, one of Poland’s largest supermarket stores, Biedronka sold 830m PLN (€186m EUR) of Polish products during its first week of a campaign loosely translated to ‘Buy Polish’.

The largest single day of trading registered 150m PLN (€33.66m) of sales for ‘Polish’ products either belonging to Polish brands, or items produced, processed, or packaged in Poland. There is a certain irony Biedronka’s campaign given the chain of no-frills supermarket is owned by the Portuguese group Jeronimo Martins (JM).

At the end of June 2020, Biedronka operated over 3,030 outlets across Poland. In its 2019 annual report JM showed annual revenues for Biedronka reaching €12.6b with EBITDA of €0.92b.

For comparison, Coles supermarkets in Australia operated 821 outlets, achieved €19.06b revenues,  and generated an EBIT of €0.73b in 2019.

Original article (in Polish): https://www.money.pl/gielda/biedronka-sprzedaz-w-akcji-wspierania-polskich-produktow-830-mln-zl-w-tydzien-6550104406447745a.html