With Covid-19 impacting how work is done, 2020 has seen an increased use of technology, according to new research.
Genfitt has published its 2020 Knowledge Report, a survey of the company’s clients and various stakeholders in the agriculture industry.
As part of its research, the supplier of farm machinery parts, agricultural components and spare parts looked at the effects of Brexit, the ‘green agenda’ and technology on the work of agri-businesses in Ireland.
Brexit
Participants were asked to rank six factors based on the significance of the impact they have each had on their business: weather; pricing/credit; the green agenda; milk/beef and crop prices; changing regulations; and Brexit.
Image source: Genfitt
The report states: “Compared to 2019, surprisingly, Brexit and the weather were less of an issue.
“Perhaps this was because the weather was good and, while there is talk about the impact of Brexit, nothing has actually happened yet. Any impact will be speculative rather than real.”
However, despite only scoring 2.5 in terms of impact, the “big issue on everyone’s mind” is Brexit, according to the report.
“There is a strong sense that Brexit was sidelined in 2020. There is no consensus as to what it will look like, when it will take place or what the impacts will be – in the short, medium or long-term.
“The level of fear and anxiety over Brexit is the biggest issue in the sector at the moment.”
Image source: Genfitt
According to Genfitt, the impact of Brexit is yet to be felt, but is “expected by all”.
Just over 50% of respondents said that Brexit has affected their business or business plans in 2020. While trade is “not currently affected by Brexit, it is clear that businesses are looking to change the way they are working”.
According to Genfitt, many businesses are proactively looking to source products from other EU countries rather than the UK.
The big themes around Brexit are “massive uncertainty, increased costs through tariffs and taxes and much more red tape”.
The green agenda and increased use of technology
While the green agenda is seen as positive, the impact on farming can be negative, according to the report.
“Increased costs are reducing margin and overall income, coupled with more red tape and regulations to contend with.”
Along with this, as Covid-19 impacts how work is done, 2020 has seen an increased use of technology.
The survey found that more farmers are using mobile apps to check the weather and order products. In fact, mobile apps proved to be the most important technology for farmers.
Image source: Genfitt
“Due to the impact of social distancing on the livestock trade, many farmers are using online marts to purchase and sell cattle remotely,” the report stated.
“Overall, online marts have been very well received, with some mart managers even reporting an increase in customers – a positive to come out of the pandemic.”
Managing Director of Genfitt Ronan Egan told AgriLand that the ‘green agenda’ has not directly impacted most of the respondents.
“Most of them are selling machinery; parts for machinery; everyday items for the farm, so I suppose most of the impact this year has been things that we would expect like the pandemic; the weather; the general economy.
I just think the green agenda is a slower burn. It’s probably something that’s going to take longer to impact than in an individual year.
“Respondents tend to respond to what’s happening in the here and now, they look at a relatively short horizon; where we know the impact of the green agenda is a slower, more medium-term impact.”
The managing director said that people in the agriculture industry from the farmer, to the wholesaler, up through the supply chain – are using more and more technology.
“Online is having a much bigger impact and it’s accelerating,” concluded Egan.