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The global Internet giants are in a row, why is wisdom agriculture so favored?

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(CCTV Finance “Transaction Time”) recently released the 2019 Central Document clearly stated that it is necessary to do a good job in the “three rural” work, implement key agricultural key technologies and strengthen innovation-driven development, with special emphasis on promoting biology. Independent innovation in the fields of seed industry and smart agriculture.

Recently, the big cake of smart agriculture has attracted the attention of many international giants, including Softbank, Amazon, Google and so on. In 2018, domestic Internet giants including Baidu, Ali, Tencent, and Jingdong also accelerated their layout in the field of smart agriculture.
So what is the wisdom agriculture mentioned here? Why do the giants come to grab a piece of cake?
Smart agriculture, in short, applies IoT technology to traditional agriculture, using sensors and software to control agricultural production through mobile platforms or computer platforms. In a broad sense, smart agriculture also includes agricultural e-commerce, food traceability and anti-counterfeiting, agricultural leisure tourism, and agricultural information services.
Fu Wei, an industry researcher at Rongtong Fund Management Co., Ltd.: Smart agriculture is actually applying modern information technology to traditional agriculture. If a company can target the production process of an agricultural product, have effective software, hardware, or have such a service plan as a whole, then it can greatly reduce the production cost of agricultural products, or improve its quality. There is a very good development prospect, and the entire industry is now in urgent need.
According to estimates by the China Business Research Institute, by 2020, the potential market size of China’s smart agriculture is expected to grow from US$13.7 billion in 2015 to US$26.8 billion, with a compound annual growth rate of 14.3%. The market prospect is very broad.
Cucumbers, health pigs, farms
The giants are gold rushing wisdom agriculture!
In fact, the big cake of smart agriculture has long attracted the attention of many international giants, including Softbank, Amazon, Google, etc. In 2018, domestic Internet giants including Baidu, Ali, Tencent, and Jingdong have also accelerated. The layout in the field of smart agriculture. What is the specific progress? What other interesting projects?
Lei Zongxiong has been working in Alibaba Cloud for four and a half years. He started his pig farm in February 2018.
Lei Zongxiong participated in the Ali AI pig raising project, which realized the “pig face recognition” by constructing the AI ​​algorithm, thus helping the farmers to manage the health status of the animals anytime and anywhere. Lei Zongxiong told reporters that the large-scale use of AI in the industry to assist pig raising is the first of its kind in the world. Seven sets of algorithms have been made today for use on farms of several thousand sizes. Ali has also become one of the earliest giants in China to deploy smart agriculture.
Alibaba Cloud senior algorithm engineer Lei Zongxiong: Aliyun enters the pig-raising enterprise, first, science and technology, to science, is based on science and technology benefits to agriculture; second, we can do something practical for farmers in China, at least pigs.
At the same time, another Internet giant in China, Tencent, has also participated in the competition of smart agriculture.
Luo Dijun is the head of the smart agricultural technology side of Tencent AI Lab. In 2018, their team achieved the first AI strategy and the second overall score in a cucumber greenhouse planting competition in the Netherlands. This is also Tencent’s wisdom in agriculture. A successful test of water.
In the process of planting cucumbers in the greenhouse, some of the main work is carried out remotely by artificial intelligence systems. For example, watering, ventilation, lighting and fertilization are all artificial intelligence based on the environment and growth data collected by the sensor. Through intensive learning and calculation, judgments and decisions are made, and then the equipment components in the greenhouse are automatically completed. And this set of agricultural artificial intelligence system can also automatically iteratively upgrade in continuous learning, and quickly migrate to other planting scenes at a lower cost, and the imagination space is huge in the future.
Luo Dijun, an expert researcher at Tencent AI Lab: The whole idea of ​​smart agriculture itself is to improve the efficiency of food production, that is, to produce as much food as possible with as few resources as possible, such as energy and water. Now that we are still in the basic research stage, I dare not say that this is the focus of a layout, but we should not be absent from the AI ​​agriculture side.
In fact, more and more technology companies, including Huawei, Ali, JD, Baidu, etc., are reaching into the fields. Some choose to directly enter agriculture, and some enterprises do not directly participate in agricultural planting, but use technology empowerment to help the agricultural and animal husbandry industry upgrade and development, in order to achieve the goal of reducing costs and increasing efficiency.
Fu Yi, an industry researcher at Rongtong Fund Management Co., Ltd.: The entry of giants is definitely a very good thing for the industry.
First of all, these giants are selling in the downstream, or in the circulation, their power of control and voice is very strong, and they will force these enterprises to do informationization;
Second, they are now involved in the production of some agricultural products. They have advantages in technology. After a period of accumulation, after the technology reaches a certain level, it can be used for horizontal replication, or technical output.
Third, they are a bit cheesy. They have money. For some of the industry’s good technologies, small companies that can look far away can give enough financial support.
China’s smart agriculture is still in the early stages of development
Market education becomes a top priority
The prospects of smart agriculture are very broad. Whether it is the enthusiasm of technology companies or the scale of the market, there is a lot of imagination. For now, what is the development stage of China’s smart agriculture? What other factors may affect the development of the industry?
Ma Junna’s company mainly provides automation solutions for farms, from intelligent monitoring systems, control systems to back-end software systems, to help companies achieve automated farm process automation. In 2018, their products were officially launched into the market, and in just a few months they won tens of millions of orders.
Ma Junna, founder of Shenzhen Agricultural Bo Innovation Technology Co., Ltd.: We are now monitoring and selling the best types of cooperative customers, mainly in the middle and high-end agricultural enterprises.
Cai Zhijie’s shrimp farm was equipped with a monitoring system like this last year. For a long time, the survival rate of shrimp culture is only 30% to 40%, mainly because the shrimp is very sensitive to the environment, and the water quality is slightly changed, it may be a group illness in a short time. For this reason, Cai Zhijie and the staff must check several times a day.
Cai Zhijie, deputy general manager of Haiyi Aquatic Products Co., Ltd., Zhangzhou City, Fujian Province: All of them were manually operated. They were fixed to the pond every day to pump water, and then use these titrated solutions to test the water quality of the pond. But since last year, we have introduced this 24-hour monitoring real-time device, so whether I have time or not, I can open the phone and see the data in the pond.
Ma Junna told reporters that customers like them have already accumulated a part of them, mainly some high-profit agricultural enterprises. In the future, the larger market increment has yet to be developed. At the same time, they found that the opening of overseas markets is relatively easy.
Ma Junna, founder of Shenzhen Agricultural Bo Innovation Technology Co., Ltd.: The reason why we have always attached importance to the export market is because the foreign acceptance of smart agriculture will be slightly higher.
The industry believes that this is one of the main problems facing the development of smart agriculture in China. Most of China’s agriculture still stays at the stage of traditional agriculture. In most areas, agricultural infrastructure is still lagging behind, and the acceptance of smart agriculture is relatively low and very scattered.
In addition to market education and data accumulation, China’s smart agricultural enterprises are also facing the problem of easy disconnection. Most of the technology enterprises do not have rich agricultural experience, and they need to gradually learn to accumulate. The inadequate understanding of information technology by agricultural enterprises also creates certain obstacles for the market opening.
Luo Dijun, an expert researcher at Tencent AI Lab: In fact, the greenhouse we are working on is actually a relatively small closed space, but the real agriculture is an open type, so if we want to promote the corresponding technologies a little bit, There are very big problems, for example, the sensor may not be as accurate.
Wu Li, chief analyst of Tianfeng Securities Agriculture Industry: The development stage of smart agriculture in our country is still relatively backward compared with developed countries, such as the United States and the European Union. At present, we believe that some difficulties have been encountered in the development of smart agriculture in China, such as the shortage of technical talents and the shortage of capital, as well as the relatively high cost of application promotion, and the acceptance of industry is generally relatively low.
Smart Agriculture Index continues to force in the near future
Concept stocks welcome policy
The A-share Wisdom Agriculture sector has a total of 20 targets, with a total market value of more than 170 billion yuan. Which types of enterprises are there? What is their profitability in the past year? Are there any investment opportunities in the near future?
According to Wind Data, the total market capitalization of the A-share Wisdom Agriculture sector exceeds 170 billion yuan, including 20 listed companies. Among them, 12 are from the materials industry, 4 are in the consumer industry, and 2 of the other 4 are industrial companies, and two are information technology companies.
As of February 26, the top five market capitalizations were Jinzhengda, Dabei Nong, Hebang Bio, Xinao and Xinyangfeng. Among them, Jinzhengda had a market value of more than 20 billion yuan, and other companies had a market value of more than 10 billion yuan.
According to the 2018 annual report, a total of 8 of the 20 companies in the sector achieved a year-on-year increase in net profit, accounting for 40% of the total, of which agricultural products, Xinao shares, and Yuntu Holdings had the largest increase in net profit.
Analysts believe that the transformation of agribusiness has inherent advantages, and it is expected to be the first to introduce smart agriculture-related technologies.
Wu Li, chief analyst of Tianfeng Securities Agriculture Industry: From the situation we know, from the procurement of agricultural materials, production management, brand marketing and channel marketing, including supply chain finance, there have been some Internet or things. Networked figure.
At present, from the past many cases, in the industrial chain of pigs and the fresh production chain, the unicorn of this industry has already emerged, which is also our two areas that are more optimistic.
The No. 1 Document issued in 2019 clearly pointed out that it is necessary to strengthen innovation-driven development, implement key agricultural key technology research initiatives, foster a number of agricultural strategic scientific and technological innovation forces, and promote the fields of biological seed industry, heavy agricultural machinery, smart agriculture, and green inputs. Innovation. Analysts believe that the policy is expected to promote the further development of smart agriculture, and the relevant targets are expected to receive more attention.
Wu Li, chief analyst of Tianfeng Securities Agriculture Industry: How to improve the operational efficiency of the agricultural industry? How to improve the quality of agricultural products and get a market premium? We believe that this is the two major industrial directions for the distribution of smart agriculture.
With the advancement of the rural revitalization policy, with the improvement of the agricultural industrial infrastructure, we believe that the relevant targets of the smart agricultural industrial chain will be more favored by the capital market.
In the whole year of 2018, the trend of the smart agriculture sector was similar to that of the broader market, but the decline exceeded the market by about 9 percentage points. Since 2019, the sector has seen a significant increase twice, with a cumulative increase of more than 21%. Some of the stocks are very eye-catching.
Fu Yi, an industry researcher at Rongtong Fund Management Co., Ltd.: The performance of agriculture is mainly due to price fluctuations.
Last year’s overall price situation, except for the chicken sector, the others were less than ideal, so the overall performance actually fell.
This year, I think the overall opportunity for the agricultural sector is still very large, as prices have already entered the rising channel, including pig prices, chicken prices, including the prices of other agricultural products, including sugar. The profitability of the overall agricultural sector this year will definitely be much better than the past year.

Tags : Cai ZhijieLei ZongxiongLuo DijunMa JunnaSmart agriculture