Over nearly two decades, innovative German farmers have managed to squeeze nearly 2,000kg of extra milk annually from each of their cows. Roland Magunia / AFP
Over nearly two decades, innovative German farmers have managed to squeeze nearly 2,000kg of extra milk annually from each of their cows. Roland Magunia / AFP

Where there’s much farm output there’s technology



When it comes to camel farming, there is a limit to the labour-saving benefits of machinery.

The beasts are so sensitive that when they are being automatically milked, they each still need humans standing next to them to keep them calm.

It is a different story with cattle. Milking machines have been a standard feature on dairy farms in developed economies for decades, and digital technology is enabling businesses to enhance productivity even further.

Here is an example. To maximise the output of a dairy cow, it must calve as regularly as possible, once every 400 days. But the window for artificially inseminating cows is quite narrow, because they are only in heat for four to eight hours every three weeks. Farmers need to spot the signs – the cows become more active, hold their heads differently and tend to jump on others. Ulrich Westrup, who runs a farm with 600 dairy cows in the village of Bissendorf in north-western Germany, was tired of spending days and nights keeping an eye on each animal.

So he decided to let the cows tell him when they’re ready – via text message. He attached radio chip collars to each of them to register the physical movements of the animals and send the data to a computer centre in France.

Whenever a cow becomes agitated the centre sends Mr Westrup a message. “It’s a liberation for me,” says Mr Westrup.

“I save labour time and I can be sure I’m not missing animals in heat even though I don’t have to conduct any intense supervision at night.”

Technical innovations have enabled German farmers to boost the annual milk production per cow to 7,200 kilos from 5,400 kilos in 1995, according to the German farming federation.

There are few industries where technical innovation is more crucial than in agriculture. The world’s population will grow to eight billion people by 2025 from 7.1 billion now, according to a United Nations projection. By 2050, it could be nine billion. Humankind needs to use its limited arable land not just to feed people but to grow bio-energy crops to help combat global warming. And at present, crop yields worldwide are not increasing quickly enough to meet global needs by 2050, according to research published this year by the University of Minnesota.

For crop yields to be sufficient, agricultural productivity will have to rise by at least 60 per cent, and may need to more than double, the researchers wrote. They found that the yields of four key staple crops – maize, rice, wheat and soybeans – were increasing by only about 0.9 per cent to 1.6 per cent per year.

That would lead to an overall increase of about 38 per cent to 67 per cent by 2050, which would only be enough to feed the population if the lower end of the estimate of yields needed and the maximum yield rise materialise. The report does not take into account climate change, which the World Bank said could lead to serious food shortages in many areas as soon as the 2030s.

Increased mechanisation could help to tackle the problem. In developed economies, machinery enabling “precision farming” is already well established. Tractor cabins these days resemble cockpits in which farmers can, and should, switch to autopilot because the machines themselves can plough, fertilise and harvest land far more efficiently if guided by GPS than if steered by human hand.

Even in good weather and with years of experience a tractor driver can only drive in precise rows for one or two hours at most, say experts. Machines do not tire or lose concentration, and hence do not miss patches of ground or waste expensive seed, fertilizer or pesticide.

“With the help of very precise GPS technology, automatic steering systems are already available, in fact they’re almost standard features in big tractors and combine harvesters,“ says Stefan Böttinger, a professor of agricultural engineering at the University of Hohenheim in south-western Germany.

For more than a century, productivity in agricultural engineering has gone hand-in-hand with size. The bigger the machine, the more quickly it could work the land. If you walk around farm equipment trade fairs today you will be awed by rows of mechanical monsters on show.

To reach the cabin of the S690i, a combine harvester made by the US company John Deere, you have to climb a 14-rung aluminium ladder. Some of these behemoths have engines with up to 1,100 horsepower under the bonnet.

“We’ve reached the limits of size now, so we need to make the machines more intelligent to enhance their productivity,” says Professor Thomas Herlitzius, a specialist in farm engineering at the Dresden Technical University.

The new buzzwords are “smart farming”, in which machines communicate with each other. They can also pass the data they obtain via sensors and cameras, such as soil moisture, nutrient levels and crop yield, into a cloud-based data collection system, a kind of agricultural internet.

All the data gathered can be transmitted for analysis to specialist companies which then provide advice on planting, crop treatment, pest control and the best time to harvest. Last month, DuPont Pioneer, an agricultural seed firm, said it had joined forces with Deere to provide farmers with “precision agriculture” analyses.

“These modern tools help the farmer to achieve the same output with fewer resources or in some cases to increase their output,“ says Prof Böttinger.

There are many other applications of smart farming. Engineers have developed software that monitors the grain tank of a combine harvester and calls over a tractor-trailer before it gets full, thereby eliminating waiting times.

Fendt, a German firm, has created paired tractors in which the driver sits in one and the other automatically copies its actions in another row, halving the time it takes to work the field.

GPS technology allows harvesting machines to precisely map the land they pass over and to store data on the quality of the soil. That permits fine-tuning when it comes to spraying fertilizer and pesticide and offers huge cost-savings, as well as benefiting the environment.

For example, if the crop yield in one 10-by-10 metre patch of field is found to be lower than elsewhere in the field, that patch can be identified as needing more fertilizer when the field is next planted.

“We must use land, water, fertilizer and energy more efficiently so that we can produce the output volumes that a growing world population needs,” says Hermann Garbers, the head of research and technology at the German equipment maker Claas.

The new technology is needed to keep farms profitable in developed economies, where just 1 to 3 per cent of the population still works in agriculture. There is also a market for it in the Bric countries of Brazil, Russia, India and China, where a steady labour migration from the countryside into cities has cut the manpower available for cultivation.

But it is unsuited to many countries of Asia and Africa, where farm technology is decades behind, fields tend to be much smaller than in Europe and America and farmers cannot afford sophisticated machinery.

“The technology drivers and the big markets are North and South America and Europe, and new technology will always be introduced in these markets first,” says Prof Hitzelius.

That begs the question of how crop yields can be enhanced in the poorest developing countries where population growth is often highest. There is a danger that large areas of land – including forests – could be cleared for agriculture to compensate for the slow growth in yields, potentially harming the climate and ecosystems.

“In developing nations it’s important to raise mechanisation to a good level,” says Prof Böttinger.

But, he concedes, “The move from manual labour and animals to machinery is a long road.”

business@thenational.ae

COMPANY PROFILE

Company name: Revibe
Started: 2022
Founders: Hamza Iraqui and Abdessamad Ben Zakour
Based: UAE
Industry: Refurbished electronics
Funds raised so far: $10m
Investors: Flat6Labs, Resonance and various others

A QUIET PLACE

Starring: Lupita Nyong'o, Joseph Quinn, Djimon Hounsou

Director: Michael Sarnoski

Rating: 4/5

The Specs

Engine: 1.6-litre 4-cylinder petrol
Power: 118hp
Torque: 149Nm
Transmission: Six-speed automatic
Price: From Dh61,500
On sale: Now

Alan Wake Remastered

Developer: Remedy Entertainment
Publisher: Microsoft Game Studios
Consoles: PlayStation 4 & 5, Xbox: 360 & One & Series X/S and Nintendo Switch
Rating: 4/5

Company Profile

Company name: Yeepeey

Started: Soft launch in November, 2020

Founders: Sagar Chandiramani, Jatin Sharma and Monish Chandiramani

Based: Dubai

Industry: E-grocery

Initial investment: $150,000

Future plan: Raise $1.5m and enter Saudi Arabia next year

Sun jukebox

Rufus Thomas, Bear Cat (The Answer to Hound Dog) (1953)

This rip-off of Leiber/Stoller’s early rock stomper brought a lawsuit against Phillips and necessitated Presley’s premature sale to RCA.

Elvis Presley, Mystery Train (1955)

The B-side of Presley’s final single for Sun bops with a drummer-less groove.

Johnny Cash and the Tennessee Two, Folsom Prison Blues (1955)

Originally recorded for Sun, Cash’s signature tune was performed for inmates of the titular prison 13 years later.

Carl Perkins, Blue Suede Shoes (1956)

Within a month of Sun’s February release Elvis had his version out on RCA.

Roy Orbison, Ooby Dooby (1956)

An essential piece of irreverent juvenilia from Orbison.

Jerry Lee Lewis, Great Balls of Fire (1957)

Lee’s trademark anthem is one of the era’s best-remembered – and best-selling – songs.

Herc's Adventures

Developer: Big Ape Productions
Publisher: LucasArts
Console: PlayStation 1 & 5, Sega Saturn
Rating: 4/5

On the menu

First course

▶ Emirati sea bass tartare Yuzu and labneh mayo, avocado, green herbs, fermented tomato water  

▶ The Tale of the Oyster Oyster tartare, Bahraini gum berry pickle

Second course

▶ Local mackerel Sourdough crouton, baharat oil, red radish, zaatar mayo

▶ One Flew Over the Cuckoo’s Nest Quail, smoked freekeh, cinnamon cocoa

Third course

▶ Bahraini bouillabaisse Venus clams, local prawns, fishfarm seabream, farro

▶ Lamb 2 ways Braised lamb, crispy lamb chop, bulgur, physalis

Dessert

▶ Lumi Black lemon ice cream, pistachio, pomegranate

▶ Black chocolate bar Dark chocolate, dates, caramel, camel milk ice cream
 

COMPANY PROFILE

Company name: Almouneer
Started: 2017
Founders: Dr Noha Khater and Rania Kadry
Based: Egypt
Number of staff: 120
Investment: Bootstrapped, with support from Insead and Egyptian government, seed round of
$3.6 million led by Global Ventures

Company Profile

Name: Direct Debit System
Started: Sept 2017
Based: UAE with a subsidiary in the UK
Industry: FinTech
Funding: Undisclosed
Investors: Elaine Jones
Number of employees: 8

RESULTS

Men
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2 Abraham Kiptum (KEN) 2:04:16
3 Dejene Debela Gonfra (ETH) 2:07:06
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Women
1 Ababel Yeshaneh (ETH) 2:20:16
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Spider-Man: No Way Home

Director: Jon Watts

Stars: Tom Holland, Zendaya, Jacob Batalon 

Rating:*****

Afcon 2019

SEMI-FINALS

Senegal v Tunisia, 8pm

Algeria v Nigeria, 11pm

Matches are live on BeIN Sports

Guardians of the Galaxy Vol 3

Director: James Gunn

Stars: Chris Pratt, Zoe Saldana, Dave Bautista, Vin Diesel, Bradley Cooper

Rating: 4/5

When Umm Kulthum performed in Abu Dhabi

Known as The Lady of Arabic Song, Umm Kulthum performed in Abu Dhabi on November 28, 1971, as part of celebrations for the fifth anniversary of the accession of Sheikh Zayed bin Sultan Al Nahyan as Ruler of Abu Dhabi. A concert hall was constructed for the event on land that is now Al Nahyan Stadium, behind Al Wahda Mall. The audience were treated to many of Kulthum's most well-known songs as part of the sold-out show, including Aghadan Alqak and Enta Omri.

UAE currency: the story behind the money in your pockets

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Transmission: 10-speed auto

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The specs: 2018 Mazda CX-5

Price, base / as tested: Dh89,000 / Dh130,000
Engine: 2.5-litre four-cylinder
Power: 188hp @ 6,000rpm
Torque: 251Nm @ 4,000rpm
Transmission: Six-speed automatic
​​​​​​​Fuel consumption, combined: 7.1L / 100km

The Lowdown

Us

Director: Jordan Peele

Starring: Lupita Nyong'o, Winston Duke, Shahadi Wright Joseqph, Evan Alex and Elisabeth Moss

Rating: 4/5

Scoreline

Arsenal 0 Manchester City 3

  • Agüero 18'
  • Kompany 58'
  • Silva 65'