Digital technologies in the grain sector of Ukraine
Adoption and opportunities assessment report
Description
The report assesses the extent to which Ukrainian farmers have adopted digital technologies, the many barriers preventing them from doing so, and the considerable opportunities these technologies present. The report further offers sharp insights into their potential contributions and how best they can be sustained. It showcases the results of a research that included extensive interviews with the administrators of different sized farms in Ukraine, and considers the level of interest among larger farmers in the adoption of precision agriculture technologies, and their benefits in terms of improved productivity, lower costs and reduced greenhouse gas emissions, despite the relatively high initial investment costs. It concludes with a list of recommended actions, calling on four specific groups to embrace digital technologies and thus contribute to the development and transformation of Ukraine’s grain sector: the private sector, financial institutions, the public sector and international organizations.
Technology
The report focuses on three technological areas: precision agricultural technologies, remote sensing technologies and distributed ledger technologies, with particular focus on blockchain. Precision agriculture technologies are a set of data-driven geographical information system (GIS) technologies that are designed to support the optimal use of land parcels, the management of soil productivity and the optimization of costs. GIS, based on spatial location technologies, makes use of many different data layers, including imagery, features and base maps. Remote sensing technologies, which use multispectral and hyperspectral aerial and satellite imagery to create Normalized Difference Vegetation Index (NDVI) maps, can be leveraged for the monitoring, measurement and dissemination of information on crop and soil conditions. A blockchain is a digital database that uses cryptography to link and secure transactions and data entries, and disintermediates data processing and storage within a peer to-peer network of computers to validate and store transaction history and information The technology can be used to ensure transparency and traceability in the trade of grain.
Target
The report identifies significant differences between smaller and larger farms in terms of their human, financial and digital capacities, as well as their willingness to innovate and adopt digital technologies. Small farmers are likely to face greater challenges in accessing finance, restricting their investments into improvements. The main targets of the report are the private sector, financial institutions, the public sector and international organizations. The report aims to support the private sector, financial institutions, the public sector and international organizations in their efforts to transform Ukraine's grain sector, and to encourage smallholder farmers to embrace digital technologies.
Impact
The report aims to support stakeholders in the Ukrainian grain sector through its analysis of the institutional support for digital technologies, and the potential for increased competitiveness and productivity through the use of precision agricultural technologies (PATs), remote sensing technologies and distributed ledger technologies (DLT) by Ukrainian farmers. The report recommends a series of measures to support the uptake of particular technologies at farm level, but also institutionally, shedding light on how the adoption of technologies can be supported financially.
Partners
European Bank for Reconstruction and Development (EBRD)
Four Betters
Better production
Better environment
Better life
