Smart Farming and Precision Agriculture

Tech based farm equipment in the field

By James Baltz on Unsplash

Smart Farming and Precision Agriculture
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

Through the B2B and B2C models, companies can sell as a product or offer services to farmers in order to apply digital technology such as automation, enhancing data analytics, and forecasting in agricultural practices to address low income and productivity level for farmers.

This IOA will help increase income for farmers, help increase productivity in the agricultural sector for the government with direct implications on economic contributions from the sector, and help reduce the use of natural resources and negative impact on the environment. Investors can invest money in companies or start-ups that will develop the smart farming system and then sell products or offer services to farmers. Examples of companies active in this space are:

Gao Rai is a start-up company, started in 2019 and launched an application that connects drone pilots and farmers to help farmers increase efficiency and reduce costs. In 2020, Gao Rai has new Social Marketing strategy and aims to become a one stop service, crop and drone managements, for smart farmers (1).

Smart Farm DIY offers smart farming solutions to indoor and outdoor greenhouses that use sensors and equipments connected to the internet of things (IOT) system to automatically track data and operate the farms. Smart Farm DIY has operated by Smart AI Solution Co., Ltd. since 2017 (2).

Expected Impact

Improve agricultural productivity and farmer incomes, while also benefitting the environment from more resource efficient and sustainable agriculture.

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).
> 25% (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.
< USD 500,000
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
No Poverty (SDG 1) Good health and well-being (SDG 3) Gender Equality (SDG 5) Responsible Consumption and Production (SDG 12) Climate Action (SDG 13)
Sector Sources
  • 1) https://www.depa.or.th/storage/app/media/file/investment-bulletin.pdf 2) https://thailand.un.org/th/node/103307 3) https://www.boi.go.th/upload/content/Thailand,%20Taking%20off%20to%20new%20heights%20@%20belgium_5ab4e8042850e.pdf 4) https://www.ldd.go.th/PDF/DevelopmentPlanNo.13.pdf 5) http://stiic.sti.or.th/wp-content/uploads/2018/10/BCG_Final1.pdf 6) https://data.worldbank.org/indicator/NV.AGR.TOTL.ZS?locations=TH 7) https://www.moac.go.th/moaceng-magazine-files-422991791792 8) https://data.worldbank.org/indicator/SL.AGR.EMPL.ZS?locations=TH 9) https://www.opsmoac.go.th/nakhonsithammarat-dwl-files-421191791137 10) https://www.boi.go.th/upload/content/TIR7_Aw_Smart%20farming_5e5dc88fa8284.pdf
IOA Sources
  • 1) https://www.smeone.info/posts/view/4971 2) http://www.smartfarmdiys.com/aboutus 3) https://krungthai.com/Download/news/MediaFile_318Agritech14052020_final.pdf 4) https://www.opsmoac.go.th/nakhonsithammarat-dwl-files-421191791137, https://data.worldbank.org/indicator/NV.AGR.TOTL.KD?locations=TH 5) https://sustainabledevelopment.un.org/content/documents/279482021_VNR_Report_Thailand.pdf 6) https://www.bot.or.th/App/BTWS_STAT/statistics/ReportPage.aspx?reportID=638&language=eng 7) https://uk.practicallaw.thomsonreuters.com/3-602-5267?transitionType=Default&contextData=(sc.Default)&firstPage=true#co_anchor_a860206 8) https://www.depa.or.th/storage/app/media/file/depa-Promotion-Plan-Book61-65.pdf 9) https://thailand.un.org/th/node/103307 10) https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8291370/ 11) https://www.pier.or.th/abridged/2020/11/#fnref-1 12) https://www.moac.go.th/moaceng-magazine-files-422991791792 13) https://www.ldd.go.th/PDF/DevelopmentPlanNo.13.pdf 14) https://www.boi.go.th/upload/content/BOI-A%20Guide_EN.pdf 15) https://www.fao.org/3/ae538e/ae538e06.htm 16) https://foodinnopolis.or.th/th/home/service/