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Smart Agriculture in Russia’s Digital Economy national program

Smart Agriculture is a new initiative in Russia’s Digital Economy national program. The market volume for the digital transformation of agriculture is approximately 360 billion rubles (EUR 5 billion).
The purpose of the national program is to provide a technological breakthrough in the agricultural sector through implementing digital technologies. This will increase agricultural labor productivity by 200% over the next two years.

Russia has one of the world’s largest fertile land areas, but occupies 15th place in the digitalization of agriculture. Precision farming solutions are used in only 3% of Russian farms (in the USA this figure is 60%; in the EU it is 80%).

ICT investment in agriculture accounts for only 0.2% of all ICT investments in all sectors of the Russian economy. This is the lowest indicator by industry. This indicates that agriculture has the greatest potential for ICT investment.

The digitalization of Russia’s agriculture sector is well overdue, isolated and mainly funded by the large agro-corporations. But, leading players have commenced using ICT solutions and have started pilot projects on their farms.

The main barrier in the digitalization of the agricultural sector is poor development of communication and infrastructure networks. In order for the Russian agricultural sector to thrive, investment will occur in the digital transformation of the sector.

Key drivers for smart agriculture are:

  • Reduction in cultivated areas per capita due to climate change – it will be necessary to provide food for about 9 billion people by 2050.
  • Increased meat consumption in developing countries.
  • Development of production standards and requirements e.g. preserving water, stricter regulations for fertilizers.
  • Growing consumer demand for organic food.

The Digital Economy national program will address the following issues related to Russia’s agricultural digitalization:

  • The need for modern agricultural technologies and equipment
  • The exchange of M2M (Machine to Machine) information
  • The legal requirements for data gathering
  • Digital transformation
  • The need for qualified agricultural IT specialists
  • Automated management processes
  • Improved attractiveness to investors
  • Big data and database management

For more information please contact:

Evgeniy Korobkin
Senior Advisor
Finnish-Russian Chamber of Commerce
evgeniy.korobkin@svkk.ru
+7 903 245 8165

 


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