Periodic Reporting for period 1 - ControlledScaleUp (Controlled irrigation technology scale-up in high potential farming segments.)
Reporting period: 2023-06-01 to 2024-01-31
Agurotech is a technology start-up that develops hardware and software solutions for the agricultural industry. The global climate crisis causes regions in the world to face more frequent, severe, and longer lasting extreme weather events. This leads to water scarcity, which has destabilizing effects on the farming industry and our society’s food security. Agriculture uses 70% of the global water supply. In the EU, agriculture represents 31% of total water use, and this percentage can reach up to 80% in regions of Southern Europe use. Agricultural practices are highly dependent on irrigation in many countries and this is expected to grow even more with increased global warming. Farmers encounter increased costs of irrigation due to the elevated energy prices. Irrigation is becoming increasingly necessary and more expensive. Farmers are looking for ways to maximize their crop yield, while using as few resources as possible. However, currently farmers base most of their decisions on intuition and experience. Less than 5% of farmers in the EU use their data to make fact-based decisions on irrigation to optimize their yield based on use of resources. Agurotech's first product is an irrigation management solution that advises farmers exactly on the right moment and amount of irrigation specific to their soil- and crop type. This helps farmers to increase their yield by at least 20% and reduces use of resources, water, fuel, fertilizers and pesticides anywhere between 30% to 85%. One of Agurotech's key priorities is to scale up sales and marketing within targeted key farming segments. Scaling up too quickly is a pitfall that is familiar amongst (Tech) start-ups and has shown to have disastrous consequences for some start-ups in our specific industry. The challenges that may arise from premature scaling include: failing to identify target market segments due to too much focus on new customer acquisition, not reaching product-market fit, burning out your team and logistical and funding issues.
Agurotech’s strategy is to focus on offering products and services in selected niche segments before expanding to other segments. The goal of the project that is presented in this proposal is to start penetrating these prioritized segments in order to:
1. Validate the potential of these segments;
2. Realize a better product-market fit and;
3. Start realizing sales in these segments.
This project involves a controlled and fact-driven scale up of sales of Agurotech’s products and services in selected segments. As Agurotech has already realized an MVP and sales on a small scale within scattered market segments this is a logical next step to grow our business with more focus and to further validate market segments and execute on our business plan.
Agurotech’s strategy is to focus on offering products and services in selected niche segments before expanding to other segments. The goal of the project that is presented in this proposal is to start penetrating these prioritized segments in order to:
1. Validate the potential of these segments;
2. Realize a better product-market fit and;
3. Start realizing sales in these segments.
This project involves a controlled and fact-driven scale up of sales of Agurotech’s products and services in selected segments. As Agurotech has already realized an MVP and sales on a small scale within scattered market segments this is a logical next step to grow our business with more focus and to further validate market segments and execute on our business plan.
1. Hardware development:
In this project we have prepared (procured components, assembled and tested) a batch of 200 sensors measuring every 30 minutes:
- VWC (Volumetric water content) on 15 and 30 cm depth
- EC (Electrical conductivity) and temperature measurements on 15 and 30cm depth
The choice of sensor depth is made to accommodate the root system of the crops we are targeting. Within our selected segments the root systems rarely are longer than 30 cm.
The overall success of the hardware development was high. Our testing process showed an 8% error rate before sensors were delivered to customers. We encountered a 1% (2 sensors) error rate after sensors were already delivered to the field. This was mainly driven by sensitivity of the flat cable, which we have improved in a next alteration of the design process.
2. Firmware (connectivity) development:
We have developed a module of OTA (Over the Air) updates that allows our sensors' firmware to update anywhere over the world from a distance. This means that our sensor fleet can be controlled and can benefit from the latest firmware / connectivity updates. Over time we have worked on several versions of this OTA protocol, e.g. initially we faced examples where updated wouldn't go through. Until we finally realized a stable version that is reliable and has the ability to successfully update our fleet without draining the battery.
3. Agricultural models
In order to cater to the crop- and soil needs for our targeted farmer segments extensive scientific research had to be conducted to interpret all data measurements gathered. We specifically researched 10 different crop varieties and their water needs during different stages of growth and depending on the soil in which they are cultivated. This involved researching 50 different variables per crop segment. We have used our own historic sensor data to train these models and make them perform better. We have also ensured that irrigation advices are compatible with different irrigation systems.
4. Product alterations based on farmers' feedback
We have collected feedback from end-users to adapt our solution to their needs. This included several firmware improvements, a different way of visualizing and sharing data and addition of new features to our solution.
In this project we have prepared (procured components, assembled and tested) a batch of 200 sensors measuring every 30 minutes:
- VWC (Volumetric water content) on 15 and 30 cm depth
- EC (Electrical conductivity) and temperature measurements on 15 and 30cm depth
The choice of sensor depth is made to accommodate the root system of the crops we are targeting. Within our selected segments the root systems rarely are longer than 30 cm.
The overall success of the hardware development was high. Our testing process showed an 8% error rate before sensors were delivered to customers. We encountered a 1% (2 sensors) error rate after sensors were already delivered to the field. This was mainly driven by sensitivity of the flat cable, which we have improved in a next alteration of the design process.
2. Firmware (connectivity) development:
We have developed a module of OTA (Over the Air) updates that allows our sensors' firmware to update anywhere over the world from a distance. This means that our sensor fleet can be controlled and can benefit from the latest firmware / connectivity updates. Over time we have worked on several versions of this OTA protocol, e.g. initially we faced examples where updated wouldn't go through. Until we finally realized a stable version that is reliable and has the ability to successfully update our fleet without draining the battery.
3. Agricultural models
In order to cater to the crop- and soil needs for our targeted farmer segments extensive scientific research had to be conducted to interpret all data measurements gathered. We specifically researched 10 different crop varieties and their water needs during different stages of growth and depending on the soil in which they are cultivated. This involved researching 50 different variables per crop segment. We have used our own historic sensor data to train these models and make them perform better. We have also ensured that irrigation advices are compatible with different irrigation systems.
4. Product alterations based on farmers' feedback
We have collected feedback from end-users to adapt our solution to their needs. This included several firmware improvements, a different way of visualizing and sharing data and addition of new features to our solution.
Several results beyond the states of the arts have been realized through this project:
- The solution has allowed farmers to identify the best timings of applying their irrigation by comparing the effectiveness of water application during night and day times. Based on the measurements in fields we found that irrigating at night is 50% more effective than during the day.
- Additionally, we have identified that farmers significantly change their current irrigation schedules by using our technology by interviewing them and asking whether they changed their strategies compared to their usual irrigation methods.
- We also identified the relationship between irrigation and yield; allowing us to make a fact based cost-benefit analysis w.r.t. our irrigation recommendations.
- The solution has allowed farmers to identify the best timings of applying their irrigation by comparing the effectiveness of water application during night and day times. Based on the measurements in fields we found that irrigating at night is 50% more effective than during the day.
- Additionally, we have identified that farmers significantly change their current irrigation schedules by using our technology by interviewing them and asking whether they changed their strategies compared to their usual irrigation methods.
- We also identified the relationship between irrigation and yield; allowing us to make a fact based cost-benefit analysis w.r.t. our irrigation recommendations.