Drone-based agriculture and plant protection unmanned aerial vehicles (UAV)

Agriculture drone

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Drone-based agriculture and plant protection unmanned aerial vehicles (UAV)
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Food and Agriculture
Business Model Description

Scale-up plant protection unmanned aerial vehicles. Drones are developed and used for plant protection by sowing, pesticide and fertilizer spraying, and crop and field monitoring. In particular, drones used for cash crops over mountains and forests that address the real pain points for farmers are very attractive. A drone can be purchased or leased through a shared economy.

DJI and XAG provide universal tech and solutions that can be applied in many scenarios (platform-driven drone solutions). Usually, a drone will fly around to assess and monitor the site routes then will be analyzed and designed for the second drone to implement certain tasks (e.g. spraying pesticides or fertilizers). (An investment professional in agriculture)

Expected Impact

Its positive impact includes increasing productivity and saving cost with higher efficient use of pesticides and fertilisers.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
15% - 20% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
A drone manufacturer in Shenzhen has a profit margin of 50% in 2015 and 10% in 2018 due to the price competition by DJI and XAG.
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Industry, Innovation and Infrastructure (SDG 9) Life on Land (SDG 15) Decent Work and Economic Growth (SDG 8)
Sector Sources
IOA Sources
  • 21) Sohu.com, 2019, https://www.sohu.com/a/324617865_821386 "22) Stanford University, 2018, https://earth.stanford.edu/news/overuse-fertilizers-and-pesticides-china-linked-farm-size#gs.qmzwci" 23) Uav.huanqiu.com, 2017, https://uav.huanqiu.com/article/9CaKrnK66po 24) Askci.com, 2019, https://www.askci.com/news/chanye/20191016/1057321153800_2.shtml 25) Yuchen360.com, 2020, http://www.yuchen360.com/news/23944-1-0.html 26) Mohrss.gov.cn, 2019, http://www.mohrss.gov.cn/SYrlzyhshbzb/dongtaixinwen/buneiyaowen/201906/t20190621_321343.html 27) State Council, 2014, http://www.moa.gov.cn/gk/zcfg/qnhnzc/201401/t20140121_3743917.htm 28) Ministry of Agriculture and Rural Affairs, 2015, http://www.moa.gov.cn/nybgb/2015/san/201711/t20171129_5923401.htm 29) the National Development and Reform Commission (NDRC), Ministry of Agriculture and Rural Affairs, etc., 2017, https://www.cahec.cn/detail/31612.html 30) Ministry of Agriculture, Ministry of Finance, 2018, moa.gov.cn/gk/tzgg_1/tfw/201803/t20180319_6138603.htm