– Smart agriculture (智慧农业) is the most important future innovation vision

– Comprehensive digital management application system that combines field and IOT drives efficient smart agriculture

'Smart agriculture (smart farm)' is a generic term for a form in which IT technology is grafted onto the traditional farming, livestock, and fishery industry. As a solution to problems such as a decrease in efficiency and a decrease in the rural labor force due to aging, an active smart agriculture policy is being introduced. Globally, China ranks first (1%) in global agricultural production, followed by the United States, Turkey, India, Brazil, Chile, Russia, and Iran, accounting for about 63%. It is the most important means of economic revitalization and it can be seen that it is recognized as important.

Accordingly, the 2015 "Internet Plus" policy and the 2016 "2016-2020 National Agricultural Modernization Plan (全國农业现代化规划)" were announced, emphasizing "smart agriculture" as part of agricultural modernization. During the report, it was revealed that 'we will actively promote Internet agriculture for supply-side reform in the agricultural sector'. Therefore, we will look at the overall status of China's smart agriculture and forecast the policy and direction of smart agriculture development centered on Sichuan and Yunnan provinces in western China, which emphasize modern agriculture as the most important innovation for the next 2018 years.

China's Smart Agriculture Status

Smart agriculture represents the smart economy in agriculture and its overall form, and it can be said to be a major innovation factor leading to the agricultural and rural economy and the efficient modern agricultural system. In terms of the overall industrial chain of smart agriculture, the upper part is classified into 'fields' such as feed, fertilizer, drones, environmental monitoring, and automation, and the middle class is divided into 'applicable targets' such as smart seedlings, smart farms, smart livestock, and smart fishing. , is comprised of 'related services' such as agricultural product processing, rural e-commerce, frozen logistics, fresh e-commerce, and agricultural finance.

China's smart agriculture is still at a rudimentary stage, and the application rate in the field is less than 1%, but as the social environment is supported and technology is advanced, the relevant market size has been growing year after year since 2016, from 2020 billion yuan in 622 to 2022 billion yuan in 743 It is expected to grow to XNUMX billion yuan in XNUMX.

<2016-2022 China Smart Agriculture Market Size and Trend>

(Unit: billion yuan)

[Source: Zhongsang Industrial Research Institute]

In the field of field application of smart agriculture, the local government is actively involved in data platform service that collects and utilizes overall big data considering the characteristics of each region, the use of unmanned aerial vehicles that can be put to practical use in the field, precision farming, and automation of agricultural machinery. have.

<Main application of smart agriculture in China>

[Source: Zhongsang Industrial Research Institute]

Agriculture is a key industry that supports the development of the national economy, and the industrialization of smart agriculture in this regard is reconstructed by new technologies such as the Internet, big data, and artificial intelligence, and the central government's rural promotion strategy and the national digital agriculture strategy serve as various opportunity factors. As a new blue ocean has emerged in the field, giant platform companies such as Alibaba, Jingdong, Baidu, and Tencent are also jumping into the smart farming platform service, and Representative companies are also taking the lead in developing new business models.

<Status of Listing of Leading Smart Agricultural Companies in China>

[Source: Zhongsang Industrial Research Institute]

The related service industry is also booming due to the development of smart agriculture. In particular, the food safety awareness of middle-class consumers is constantly getting more demanding, so the 'online agricultural direct trade service' and the 'frozen logistics' market related to fresh food purchase is growing rapidly. have.

<2016-2021 (Q3) Rural Internet Retail Amount in China>

(Unit: trillion yuan)

[Source: Ministry of Agriculture and Rural Affairs of China]

<2016-2022 China Refrigeration Logistics Market Size and Trend>

(Unit: billion yuan)

[Source: China Logistics Frozen Animals Committee]

Smart Agriculture Development Policy of Sichuan Province (Chengdu City)

Sichuan Province, located in the inland of western China, is a representative agricultural region in China. As the Sichuan government announced the Then, in the ‘Sichuan Province 2012 ‘Internet + Key Business Plan’ (“互联网 + Heavy点工作方案)” in 2015, the Sichuan Provincial Rural and Agriculture Administration led by the Sichuan Provincial Rural Development Administration and held regular meetings and academic conferences every year to promote “Internet + Agriculture”. By using cutting-edge technologies such as big data, cloud computing, think tanks, the Internet, e-commerce, and logistics networks, the agricultural enterprises, production bases, cooperatives, and ecological farms in Sichuan Province will be smartly upgraded. He expressed his will to radically change smart agriculture in the southwestern region of China.

<View of the 2021 Sichuan Smart Agricultural Village Promotion Report Conference>

[Source: Sichuan Provincial Rural Agricultural Administration]

Accordingly, from 2019, the Sichuan government has designated 13 national-level modern agricultural demonstration bases and 230 modern agricultural convergence demonstration centers to carry out pilot projects such as public information platforms, corporate digitalization, and smart agricultural complexes one after another. ), 久鑫电子 (Jiuxin Electronics), 曙光集团 (Sichuan Shuguang Group), 久远银海 (Jiuyuan Yinhai), 五丰科技 (Sichuan Wufeng Technology) and Sichuan Academy of Agricultural Sciences Together with research institutes such as the Agricultural University, it is developing various systems that are the basis of modern agricultural innovation, such as an herbal medicine information platform and a smart agricultural management system.

In February 2021, the 2th Five-Year Plan for National Economic and Social Development of Sichuan Province and the 14 Long-term Development Guideline were announced. In the development of Sichuan's agricultural industry, it was announced that it would set up a national-level agricultural science and technology center, improve related platforms, and build the most representative agricultural cluster by specializing modern agricultural systems and agricultural organizations. The Cebu Guidelines include focus clusters that consider regional characteristics such as vegetables (Southwest), tea (雅安,乐山,宜宾,广元,巴中), lemon herbs (安岳), kiwi (绵竹,蒲江), and special medicinal materials (Northwest Highlands). At the center, the plan to combine modern agriculture and smart agriculture at the same time was specified.

In addition, in November 2021, the Sichuan Provincial Village Promotion Ordinance was announced and Chengdu City was designated as a pilot reform model. , and revitalization of rural e-commerce. In particular, county-level administrative districts such as Pujiang City, Chongzhou City, Chonglai City, Dai County, and Wenjiang District located in the outskirts of Chengdu are the opinion leaders of modern agricultural innovation. Taking responsibility, it is putting the most policy effort into improving the rural environment, increasing farmer services in connection with rural tourism, modernizing agriculture, and designating agricultural IoT pilot companies (70 companies including 金堂正鑫, 邛崃微牧, 温江惠美).

Smart Agriculture Development Policy of Yunnan Province (Kunming City)

Yunnan Province is an area where highland agriculture such as tea, medicinal herbs, tobacco, and flowers utilizing the natural ecological environment is established as the main industry even in inland western China. +农业行动方案), and established policy directions and action plans for the development of “digital agriculture” in Kunming as a whole.

In addition, by establishing a cooperative system of 'government + university + state-owned platform' jointly established by the Yunnan Provincial Government, the Kunming Municipal Agricultural and Rural Affairs Bureau, Yunnan Agricultural University (Big Data), and Kunming Agricultural Development Investment Co., Ltd. jointly promoting development. The three organizations have already established the Yunnan Agricultural Big Data Kunming Branch Center to manage data management systems in three areas: agricultural resources, climate, soil, and market information, and establish mid- to long-term development policies for Kunming City. It provides the relevant basis for decision-making and the development of 'Agricultural Market Big Data Analysis Software', a cloud platform using smart agricultural IoT, is being developed and operated in the market.

In addition, by establishing a cooperative system of 'government + university + state-owned platform' jointly established by the Yunnan Provincial Government, the Kunming Municipal Agricultural and Rural Affairs Bureau, Yunnan Agricultural University (Big Data), and Kunming Agricultural Development Investment Co., Ltd. jointly promoting development. The three organizations have already established the Yunnan Agricultural Big Data Kunming Branch Center to manage data management systems in three areas: agricultural resources, climate, soil, and market information, and establish mid- to long-term development policies for Kunming City. It provides the relevant basis for decision-making and the development of 'Agricultural Market Big Data Analysis Software', a cloud platform using smart agricultural IoT, is being developed and operated in the market.

Currently, Kunming City has built and utilized six application systems such as 'Digital Cloud Flower' and 'Agricultural Product Quality Supply and Demand System' at related industrial sites. Basic data on the cultivated area and production volume of 6 specialized industries, the basic conditions of 74 villages, cooperatives, leading companies, and rural environment maintenance status, etc. It provides a solid foundation for

<Recent Changes in Agricultural Development Policy in Yunnan Province>

[Source: Yunnan Provincial Rural Agriculture Administration, KOTRA Chengdu Trade Center Organized]

In conclusion, Yunnan Province encourages field enterprises to test and nurture key technologies, smart equipment and solutions for agricultural IoT in each field such as tea, flowers, vegetables, fruits, and herbal medicines in the development of smart agriculture. The aim is to increase the agricultural production rate, labor production rate, and resource utilization rate by widely disseminating efficient digital agricultural application models. In facility agriculture, it is accelerating the spread and utilization of a water + fertilizer integrated smart irrigation system, and on-site companies are encouraged to actively apply technologies such as Internet of Things (IoT) control, remote monitoring, and intelligent precision work. In the livestock industry, 'digital pig farms' and 'smart poultry farms' are being expanded by focusing on aquaculture environment monitoring, precision breeding, automatic waste treatment, and Internet-linked equipment. In the fishery industry, technologies and equipment such as monitoring of water quality, precise monitoring, early warning, remote diagnosis, control of circulating water equipment, and automatic control of aquaculture equipment are mainly introduced.

implication

Smart agriculture has brought a trend of overall technology that introduces eco-friendly precision farming methods, the problem of rural labor in modern society entering a super-aging society, and a new concept distribution for safe food. Future food business in which the government, schools, and businesses are cooperating as mid- to long-term tasks, such as not only solving the problems of production sites, but also crop consumption patterns according to regional climate change and income level, and the development of sustainable agricultural policies. infrastructure can be considered.

Accordingly, Sichuan and Yunnan provinces, both agricultural provincial provinces located in the inland of western China, are currently implementing the major policy tasks of 'promoting rural (rural) villages' in response to the changing demands of the times, such as 'modern agricultural innovation', 'reorganization of related infrastructure', ' It is drawing detailed action plans such as 'rural tourism' and 'increasing rural income' from a mid- to long-term perspective. In particular, in terms of improving public service infrastructure for consumers (rural), it is focusing on 'data precision management and collection' and 'opening and utilizing big data to the outside world', and in terms of efficient on-site innovation, 'precision monitoring technology', ' It can be seen that efforts are being made to preferentially introduce a system that considers cost reduction and labor efficiency' and 'online marketing directly related to sales'.

From the point of view of Korean companies considering entering into the Chinese smart agriculture market, organic fertilizers and smart and differentiated applied agricultural machines can also get a lot of response in the local market, but from a long-term perspective, smart greenhouses linked with IOT, precise monitoring and early warning, Technology-intensive new business models such as comprehensive smart cultivation (management) solutions considering regional environmental characteristics are also worthy of active review.

The security aspect of the source technology and applied technology of the model developed by the company may also be a concern when entering the local market of this business model. An active local marketing method through joint technology development with a local large company (mid-sized company) or academia is a necessary choice in discovering a company's profit model through new market development.

☞Source: KORTA Overseas Market News