WEBVTT - Farming’s New Frontier: AI Steers Path to Green Future

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<v Speaker 1>This is Dana Perkins and you're listening to Switched on

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<v Speaker 1>the BNF podcast. Pesticides are considered an indispensable part of

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<v Speaker 1>modern agriculture for many farmers. They're used to prevent weeds, insects,

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<v Speaker 1>and fungus from attacking crops and decreasing yields. But the

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<v Speaker 1>use of these chemicals comes at a cost because pesticides

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<v Speaker 1>are a driver of environmental damage and soil pollution, and

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<v Speaker 1>they have been linked to declines in bird and insect

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<v Speaker 1>populations and aquatic biodiversity on today's modern farms. The most

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<v Speaker 1>common way to apply pesticides involves broadcast spraying. This is

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<v Speaker 1>where chemicals are sprayed uniformly over crops, but this method

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<v Speaker 1>is exceptionally inefficient, with ninety five percent of herbicides and

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<v Speaker 1>ninety eight percent of insecticides not actually reaching their intended pest. However,

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<v Speaker 1>new precision delivery technologies could change all of this through

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<v Speaker 1>the use of cameras and artificial intelligence, and it would

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<v Speaker 1>enable green on green sensors to detect and target individual

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<v Speaker 1>weed with pesticides, leaving the other green crops untouched. How

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<v Speaker 1>does this technology work and just how efficient is it?

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<v Speaker 1>And beyond environmental protection, what other benefits does it offer

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<v Speaker 1>to farmers? To find out more, today, I am joined

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<v Speaker 1>by Alexander Littington, an analyst from bnaf's Sustainable Agriculture team. Together,

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<v Speaker 1>we discuss the significance of green on green technology, the

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<v Speaker 1>positive environmental impact it promises, and the potential cost savings

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<v Speaker 1>for farmers. We also discuss the conditions required to use

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<v Speaker 1>these new sensors and whether drones are a viable option,

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<v Speaker 1>And finally, we discuss whether pesticide manufacturers are embracing this

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<v Speaker 1>technological revolution. To access associated BNF research highlighted on today's show,

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<v Speaker 1>including Alex's research note with a terrific title, Precision Pesticide

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<v Speaker 1>Delivery Booming to Spray the Least, you can find it

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<v Speaker 1>on BNF dot com or at BNF go on the

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<v Speaker 1>Bloomberg terminal. If you like this podcast, make sure to

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<v Speaker 1>subscribe or give us a review. But right now, let's

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<v Speaker 1>jump into our conversation with Alex about precision agriculture. Alex,

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<v Speaker 1>thank you very much for joining the show today morning.

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<v Speaker 2>Thank you for having me well.

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<v Speaker 1>Alex is very kindly saying good morning to me, But

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<v Speaker 1>it's actually evening where you are, so I'm located in London,

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<v Speaker 1>you're located in Australia, and we're here to discuss pesticides.

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<v Speaker 1>It would be great if you could give us a

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<v Speaker 1>little bit of context as we head into this regarding

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<v Speaker 1>why we think there might be the opportunity to have

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<v Speaker 1>a breakthrough on being motivated to actually fix the pesticide problem. Because,

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<v Speaker 1>as many people know, in the agriculture space, farming is

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<v Speaker 1>incredibly distributed and so trying to rally behind organized common

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<v Speaker 1>solutions that are centrally managed can be somewhat difficult to do.

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<v Speaker 1>And I think you can give us a little bit

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<v Speaker 1>of context around some of those central sources of motivation

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<v Speaker 1>that are just starting to emerge now.

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<v Speaker 3>So we've got all these new policies emerging, like the

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<v Speaker 3>Global Biodiversity Framework, these big supernational targets to reduce the

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<v Speaker 3>amount of chemical pesticide that we need to apply. And

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<v Speaker 3>this is pretty much the best solution for that, and

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<v Speaker 3>that is to protect nature because obviously all these chemicals

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<v Speaker 3>that leach out and leave the cropping system, they then

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<v Speaker 3>enter the natural environment, They enter organisms, they cause reproductive distress,

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<v Speaker 3>They cause trofic cascade, which is when one species essentially

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<v Speaker 3>falls out of the food web and the whole food

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<v Speaker 3>chain then collapses.

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<v Speaker 1>So it would be great if you could give us

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<v Speaker 1>a little bit of color on the current way we

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<v Speaker 1>are using pesticides in most places in the world so

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<v Speaker 1>that we can understand what it is that actually needs

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<v Speaker 1>to be fixed.

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<v Speaker 3>So agriculture has a trilemma. We need to feed ten

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<v Speaker 3>billion people by twenty fifty on potentially less land as

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<v Speaker 3>it's protected by nature, and to halt the biodiversity crisis

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<v Speaker 3>which we're currently experiencing. As I said, we need to

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<v Speaker 3>feed ten billion people by twenty to fifty. Unfortunately, that

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<v Speaker 3>does mean that we still need to rely on a

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<v Speaker 3>portion of chemical crop inputs as well as implementing integrated

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<v Speaker 3>pest management systems, which are a methodology of reducing the

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<v Speaker 3>amount of chemical pesticide that is used.

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<v Speaker 2>So currently we spray.

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<v Speaker 3>Chemical pesticides at very high volumes, very indiscriminately, and that

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<v Speaker 3>can either be via aerial with a crop duster, which

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<v Speaker 3>is a small plane with a payload that just drops

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<v Speaker 3>the chemical onto the field, or we do it via.

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<v Speaker 2>A big boom spread which is.

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<v Speaker 3>An effect attractor with a tank attached to it with

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<v Speaker 3>two large wings which then deliver that pesticide along the

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<v Speaker 3>rows of crops. Now, what this means is that the

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<v Speaker 3>chemical can actually then either blow away in spray drift

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<v Speaker 3>as the air picks up, or more chemical is released

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<v Speaker 3>then is actually necessary to kill the pest. And that

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<v Speaker 3>pest can either be a weed, it can be a fungus,

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<v Speaker 3>it can be an insect or something even more obscure

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<v Speaker 3>like a nematode which exists in the soil and can

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<v Speaker 3>harm the plant's growth. And eventually what that means is

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<v Speaker 3>the yield that we obtain from the crops.

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<v Speaker 1>So why don't you give me a little bit of

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<v Speaker 1>context around just how bad the problem is in terms

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<v Speaker 1>of the overuse or inefficient use of pesticides, be those

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<v Speaker 1>insecticides or herbicides.

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<v Speaker 3>Absolutely so when we spray these chemicals in these big

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<v Speaker 3>broadcast methods, ninety eight percent of insecticides and ninety five

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<v Speaker 3>percent of herbicides don't even reach their target pests.

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<v Speaker 2>So what that means is.

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<v Speaker 3>It that chemical can then leave the cropping zone and

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<v Speaker 3>the cropping system or the farm and then cause knock

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<v Speaker 3>on consequences to nature and ecology, whether that be disrupting

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<v Speaker 3>breeding cycles of aquatic organisms, killing native plants, affecting the

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<v Speaker 3>behavior of large animals, that neurotoxicity as we call it,

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<v Speaker 3>and even up to the human level. There was traces

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<v Speaker 3>of glyphosate found in human urine at very, very shocking

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<v Speaker 3>levels recently in the United States.

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<v Speaker 1>I think there is a general understanding that for overall

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<v Speaker 1>health of organisms, we want to reduce pesticide use. I mean,

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<v Speaker 1>these are micals designed to kill things, including insects, which

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<v Speaker 1>we do need for biodiversity. So the urgency is so

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<v Speaker 1>well laid out by the fact that ninety eight percent

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<v Speaker 1>I mean, I'm just going to repeat that, because that

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<v Speaker 1>is such a huge amount of overall pesticides not reaching

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<v Speaker 1>their desired location. But Aha, we are here to discuss

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<v Speaker 1>solutions as we always do, and I find this. We're

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<v Speaker 1>going to launch into a conversation around how AI can

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<v Speaker 1>actually address this, which going to be learning a lot

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<v Speaker 1>on this show, because when I think about the natural

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<v Speaker 1>world and I think about plants in particular, the interventions

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<v Speaker 1>that immediately come to mind are not ones that I

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<v Speaker 1>would think involve computers sitting in a lab somewhere and

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<v Speaker 1>a technology fix. So explain to us how AI has

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<v Speaker 1>an application in reducing pesticides.

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<v Speaker 3>Absolutely, so there's a leading technology which is emerging that

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<v Speaker 3>we call as a blanket variable right technology, and it

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<v Speaker 3>kind of does what it says on the tin. It

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<v Speaker 3>varies the right in which we apply these chemical pesticides. Now,

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<v Speaker 3>the pinnacle of that the best performing technology is green

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<v Speaker 3>on green optical spot spray and that essentially is cameras

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<v Speaker 3>that amounted to a conventional broadcast boom spray that then

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<v Speaker 3>uses artificial intelligence algorithms to detect the weeds in the

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<v Speaker 3>row of the crops. As this machine is working down

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<v Speaker 3>the field and it chooses to turn on and off

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<v Speaker 3>the nozzles to only spray the weed that is present.

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<v Speaker 3>So the reason we call it green on green as

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<v Speaker 3>opposed to green on brown was the previous technology was

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<v Speaker 3>a green on brown, meaning that it can sense green

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<v Speaker 3>plants on brown soil. Now we're talking about green on

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<v Speaker 3>green technologies. This means that we can sense green weeds

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<v Speaker 3>amongst green crops. So it's selecting green within green to

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<v Speaker 3>then deliver that precise dose of herbicide.

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<v Speaker 1>So, if I'm understanding this correctly, this is basically a

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<v Speaker 1>very advanced facial recognition technology but for weeds, so it

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<v Speaker 1>can tell the difference between the plant that you want

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<v Speaker 1>to have there and the plant that you don't want

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<v Speaker 1>to have there.

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<v Speaker 2>In essence, yes, okay.

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<v Speaker 1>So this is interesting. I wonder if there'll be any

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<v Speaker 1>mistaken identity moments there. But the point is that this

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<v Speaker 1>seems like a technology solution to detecting the pests that

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<v Speaker 1>are within the desired crops. But why is this considered

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<v Speaker 1>an artificial intelligence application? What about it makes it AI?

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<v Speaker 3>So what they do is they feed a model, a

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<v Speaker 3>computer model, annotated images of weeds thousands of thousands of times,

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<v Speaker 3>and the model begins to learn the shape of the weed,

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<v Speaker 3>the color of the leaf compared to a crop, and

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<v Speaker 3>it can eventually manage to do that at speed and

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<v Speaker 3>make the decision by itself which is the weed and

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<v Speaker 3>which is the crop. Now a lot of this is

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<v Speaker 3>done in house by the big machinery manufacturers, but there's

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<v Speaker 3>also a push to make this open source so that

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<v Speaker 3>it can be used globally free to use, and that's

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<v Speaker 3>by actually a chap working over here in Sydney at

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<v Speaker 3>the Sydney University called the University of Sydney Weed AI.

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<v Speaker 1>So also to simplify this, it enables precision application, so

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<v Speaker 1>it's able to really make the location of the pesticide

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<v Speaker 1>that's being used quite specific to address the specific weed. Now,

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<v Speaker 1>how much of an improvement would this lead to, because

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<v Speaker 1>it's all going into the soil in this general area.

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<v Speaker 1>Is this actually going to dramatically reduce the amount of

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<v Speaker 1>pesticides that are used in a commercial farm?

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<v Speaker 3>Absolutely, the best available technologies are promising an up to

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<v Speaker 3>ninety seven point five percent production in the amount of

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<v Speaker 3>chemical that is used.

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<v Speaker 1>Wow, So that's a huge improvement. And then that begs

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<v Speaker 1>the question does this then have a net economic benefit

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<v Speaker 1>for the farmer? What are the financial savings for the

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<v Speaker 1>farm in terms of reducing pesticides and pesticides essentially a

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<v Speaker 1>really expensive part of farming.

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<v Speaker 3>So yeah, with our modeling that we've done here at

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<v Speaker 3>Bloomberg NIA, we've found that this employing this green on

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<v Speaker 3>green technology can be up to sixty percent cheaper.

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<v Speaker 2>Than current broadcast methods.

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<v Speaker 3>So that takes into account the fuel, all the changes

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<v Speaker 3>in cost of labor, the chemical itself, the herbicide, and

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<v Speaker 3>the cost of the actually implementing and fitting one of

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<v Speaker 3>these new green on green machines.

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<v Speaker 1>So presumably the machines themselves have a pretty substantial capital

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<v Speaker 1>outlaid the beginning, and then the savings that you make

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<v Speaker 1>on reducing your pesticide use is going to help you

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<v Speaker 1>pay for that over time. But let's get into that

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<v Speaker 1>to begin with. How expensive is it? How much cost

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<v Speaker 1>is it going to be for the farmer to start

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<v Speaker 1>using this technology to begin with.

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<v Speaker 3>So there's two models that you can go for here.

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<v Speaker 3>You can either buy a new sprayer which is equipped

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<v Speaker 3>with this technology, or you can be buying a retrofit part,

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<v Speaker 3>which is where a secondary manufacturer will fit this to

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<v Speaker 3>your current existing sprayre Now, most farmers already own a spray,

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<v Speaker 3>they've already outlaid that capsule expenditure. Most of these models

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<v Speaker 3>sit around one hundred and twenty thousand dollars.

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<v Speaker 1>And are these sprayers stationary? Are you capable of moving

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<v Speaker 1>them around? And the real question I'm getting at is

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<v Speaker 1>whether or not you need to have a lot out

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<v Speaker 1>of them on a farm or you'd be able to

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<v Speaker 1>invest in a smaller number and actually move them around.

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<v Speaker 3>Typically a farmer will have one sprayer and that'll be

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<v Speaker 3>the one spread that they use. Now, obviously, in the

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<v Speaker 3>really really large operations, when we get up to the

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<v Speaker 3>thousands upon thousands of hectors. You may need to have

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<v Speaker 3>a couple of machines, but for the most part, one

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<v Speaker 3>machine will definitely take care of all of the land

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<v Speaker 3>that you have.

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<v Speaker 1>So where in the world are these being adopted right now?

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<v Speaker 1>Are there more technology friendly farming communities that we should

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<v Speaker 1>know about somewhere between where you live and I live

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<v Speaker 1>on this beautiful blue planet?

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<v Speaker 2>There certainly are there, certainly are.

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<v Speaker 3>Actually Australia, where we're sitting right now, has had the

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<v Speaker 3>greatest adoption of variable rate technology or precision application. In

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<v Speaker 3>the earlier stages, there was a technology called green on Brown,

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<v Speaker 3>not quite as advanced and can only be used under

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<v Speaker 3>certain applications. It just so happened that those applications fitted

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<v Speaker 3>Australia's agronomy and in geography perfectly, so we had a

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<v Speaker 3>great uptake of the technology and that equates to around

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<v Speaker 3>seventy percent of grain along the eastern parts of Australia

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<v Speaker 3>being sprayed with variable rate technology. Now looking at the

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<v Speaker 3>green on green technology which are starting to become really

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<v Speaker 3>popular here in Australia, but they also will be able

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<v Speaker 3>to provide savings to farmers in the US, in Brazil

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<v Speaker 3>and in the EU. Are the key cropping areas.

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<v Speaker 1>So you mentioned the conditions being right in Australia for

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<v Speaker 1>early adoption of some of these technologies. What are the

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<v Speaker 1>conditions that need to be in place in order for

0:12:27.800 --> 0:12:28.360
<v Speaker 1>this to work.

0:12:28.600 --> 0:12:32.640
<v Speaker 3>Older technologies were only able to spray when they sensed

0:12:32.800 --> 0:12:35.880
<v Speaker 3>a plant and not use AI to detect the difference

0:12:35.880 --> 0:12:38.520
<v Speaker 3>between a plant, a crop and a weed. So that

0:12:38.559 --> 0:12:40.640
<v Speaker 3>means they could only be used when the field was

0:12:40.679 --> 0:12:42.960
<v Speaker 3>being fallowed and that is when the field is empty

0:12:42.960 --> 0:12:45.800
<v Speaker 3>of any crops. So we were only spraying during that

0:12:45.880 --> 0:12:51.240
<v Speaker 3>period between harvest and sewing, again to avoid the cost

0:12:51.440 --> 0:12:55.400
<v Speaker 3>of accidentally spraying your crops. Now with the newer technology,

0:12:55.480 --> 0:12:57.760
<v Speaker 3>we can use it year round because it's able to

0:12:57.840 --> 0:13:02.080
<v Speaker 3>detect the weed in crop. Means whilst the field bears crops,

0:13:02.200 --> 0:13:05.200
<v Speaker 3>we can use this technology to spray throughout the full

0:13:05.280 --> 0:13:06.040
<v Speaker 3>cropping cycle.

0:13:06.679 --> 0:13:09.240
<v Speaker 1>When we're thinking about the sort of crops that this

0:13:09.320 --> 0:13:13.480
<v Speaker 1>would be most used for, whether they're the economically beneficial

0:13:13.520 --> 0:13:16.160
<v Speaker 1>ones because certainly some of them make more money than others,

0:13:16.360 --> 0:13:19.160
<v Speaker 1>or the way that they're harvested does it make a difference.

0:13:19.280 --> 0:13:22.120
<v Speaker 1>I mean, I'm from Napa Valley, which is well known

0:13:22.280 --> 0:13:25.200
<v Speaker 1>as a wine growing region, and there's multiple different ways

0:13:25.240 --> 0:13:28.120
<v Speaker 1>to go about growing grapes, and some of them are

0:13:28.400 --> 0:13:30.760
<v Speaker 1>dry farmed, but most of them are in rows with

0:13:30.760 --> 0:13:33.120
<v Speaker 1>some sort of irrigation. Is this something that would be

0:13:33.200 --> 0:13:35.800
<v Speaker 1>used for the wine industry perhaps, or does it have

0:13:35.960 --> 0:13:39.240
<v Speaker 1>more applicability in let's say corn or even I'm thinking

0:13:39.320 --> 0:13:42.679
<v Speaker 1>about really fast rotation crops near the equator, like bananas.

0:13:43.520 --> 0:13:45.600
<v Speaker 3>So the most gains that we're going to see here

0:13:45.760 --> 0:13:49.040
<v Speaker 3>are typically in row crops. Now, these are big, broad

0:13:49.080 --> 0:13:55.240
<v Speaker 3>acre operations that are growing grains, oil seeds, things like corn, wheat, canola.

0:13:55.600 --> 0:13:57.520
<v Speaker 3>Now that's not to say that it can't be used

0:13:57.520 --> 0:14:01.000
<v Speaker 3>and it isn't used in tree crops. The amount of

0:14:01.000 --> 0:14:02.480
<v Speaker 3>gains that we're going to see are going to be

0:14:02.480 --> 0:14:06.040
<v Speaker 3>best from these larger row crops, big operations. We think

0:14:06.080 --> 0:14:08.200
<v Speaker 3>here in Australia there's some farmers who can go for

0:14:08.240 --> 0:14:10.760
<v Speaker 3>ten kilometers without having to turn their vehicle around. And

0:14:10.800 --> 0:14:13.520
<v Speaker 3>then in terms of frequency of use in the US

0:14:13.600 --> 0:14:17.400
<v Speaker 3>and in THEEU, there's typically one crop per year in

0:14:17.520 --> 0:14:19.960
<v Speaker 3>each field. Now, if we move down close to the equator,

0:14:20.080 --> 0:14:22.280
<v Speaker 3>take Brazil for example, Brazil, you can have up to

0:14:22.480 --> 0:14:25.080
<v Speaker 3>three crops per year being taken out of the field.

0:14:25.160 --> 0:14:27.880
<v Speaker 3>So that really equates to a lot of savings on

0:14:27.960 --> 0:14:29.520
<v Speaker 3>the amount of pesticide that we're spraying.

0:14:29.960 --> 0:14:32.760
<v Speaker 1>So you've painted a picture in my mind of fairly

0:14:32.960 --> 0:14:36.840
<v Speaker 1>large farms monocropping, and you know, the things that are

0:14:36.880 --> 0:14:40.240
<v Speaker 1>actually reaching most people on their dinner plate. And there

0:14:40.280 --> 0:14:43.640
<v Speaker 1>have been concerns not just regarding pesticides, but actually the

0:14:43.680 --> 0:14:47.040
<v Speaker 1>vulnerabilities of monocropping and also what it does to the

0:14:47.080 --> 0:14:50.600
<v Speaker 1>soil to constantly be rotating the same crops on the

0:14:50.640 --> 0:14:53.600
<v Speaker 1>same space. Is there a benefit to soil health when

0:14:53.600 --> 0:14:56.120
<v Speaker 1>it comes to reducing the amount of pesticides And is

0:14:56.120 --> 0:14:58.040
<v Speaker 1>this going to make that plot of land that the

0:14:58.080 --> 0:15:00.400
<v Speaker 1>farmer is working on something they're going to be able

0:15:00.440 --> 0:15:03.120
<v Speaker 1>to be on for longer and maybe even reduce their

0:15:03.280 --> 0:15:04.480
<v Speaker 1>need for fertilizers.

0:15:04.840 --> 0:15:05.280
<v Speaker 2>Certainly.

0:15:05.360 --> 0:15:08.360
<v Speaker 3>So, a lot of these chemicals reduce the health of

0:15:08.400 --> 0:15:12.600
<v Speaker 3>the soils, not only in the microorganisms, but also those

0:15:12.840 --> 0:15:17.360
<v Speaker 3>larger organisms that are existing, the beneficial insects and invertebrates.

0:15:17.640 --> 0:15:20.520
<v Speaker 3>So by reducing the amount of damage that we're causing

0:15:20.680 --> 0:15:24.440
<v Speaker 3>to the soil by overspraying pesticides, we actually stop the

0:15:24.520 --> 0:15:28.440
<v Speaker 3>vicious cycle, which is damage soil less beneficial insects and

0:15:28.480 --> 0:15:30.520
<v Speaker 3>therefore more chemical needing to be sprayed.

0:15:32.160 --> 0:15:36.240
<v Speaker 1>The pesticide business is a big business. By reducing the

0:15:36.240 --> 0:15:38.840
<v Speaker 1>amount that are actually being used, there could potentially be

0:15:39.120 --> 0:15:41.280
<v Speaker 1>a lot of money at stake. What is the current

0:15:41.400 --> 0:15:44.160
<v Speaker 1>market size for this and how much are they doing?

0:15:44.360 --> 0:15:47.240
<v Speaker 1>I guess annually in terms of how many pesticides are

0:15:47.280 --> 0:15:48.960
<v Speaker 1>being sold around the world.

0:15:49.280 --> 0:15:53.160
<v Speaker 3>So the global pesticide industry or crop protection industries is

0:15:53.200 --> 0:15:56.000
<v Speaker 3>also known, is around forty three billion dollars a year.

0:15:56.120 --> 0:15:58.920
<v Speaker 3>Now that's completely under threat at the moment, both due

0:15:58.960 --> 0:16:01.680
<v Speaker 3>to legislative pressures but also due to the farmer being

0:16:01.760 --> 0:16:04.400
<v Speaker 3>very squeezed. The farmer doesn't receive very much of the

0:16:04.400 --> 0:16:08.200
<v Speaker 3>share of the dollar, so wherever they can reasonably cut costs,

0:16:08.320 --> 0:16:11.560
<v Speaker 3>they will. Now this technology is allowing them to reduce

0:16:11.760 --> 0:16:14.800
<v Speaker 3>both their cost base but also to improve the productivity

0:16:14.840 --> 0:16:15.840
<v Speaker 3>of their farm.

0:16:15.960 --> 0:16:19.840
<v Speaker 1>How are the pesticide companies viewing this new technology that's

0:16:19.880 --> 0:16:22.240
<v Speaker 1>emerging and is it something that they're interested in and

0:16:22.280 --> 0:16:25.960
<v Speaker 1>potentially developing a house or even acquiring, or is it

0:16:26.000 --> 0:16:29.800
<v Speaker 1>something that they're threatened by and trying to figure out

0:16:29.880 --> 0:16:33.040
<v Speaker 1>how long they can avoid it becoming mainstream.

0:16:33.320 --> 0:16:36.840
<v Speaker 3>The crop protection industry has been able to move very agile,

0:16:36.880 --> 0:16:42.040
<v Speaker 3>and they've learned from previous legislative knocks such as in

0:16:42.120 --> 0:16:45.360
<v Speaker 3>the EU the amount of pesticides that are being restricted

0:16:45.360 --> 0:16:47.400
<v Speaker 3>for use on a yearly basis. So they've really grabbed

0:16:47.440 --> 0:16:49.440
<v Speaker 3>the ball by the horns and they've jumped in at

0:16:49.440 --> 0:16:52.360
<v Speaker 3>the deep end. For instance, there's a startup called the

0:16:52.440 --> 0:16:56.440
<v Speaker 3>Eco Robotics ARA, which is a precision delivery unit which

0:16:56.480 --> 0:16:59.680
<v Speaker 3>promises to reduce crop inputs from herbicide insect side and

0:16:59.680 --> 0:17:02.760
<v Speaker 3>funger side as well as fertilizer. Now that's had investment

0:17:02.960 --> 0:17:07.280
<v Speaker 3>from notable investors, both the ASF, the German crop protection company,

0:17:07.320 --> 0:17:10.400
<v Speaker 3>but also Yara, the global fertilizer company.

0:17:10.880 --> 0:17:13.600
<v Speaker 1>So when you're talking about this AI technology being used

0:17:13.640 --> 0:17:18.400
<v Speaker 1>to spot those pesky pests, you specifically referenced it being

0:17:18.560 --> 0:17:22.880
<v Speaker 1>put onto a boom and kind of coming across the

0:17:23.080 --> 0:17:27.040
<v Speaker 1>entire field. But I'm thinking now of drones that are

0:17:27.080 --> 0:17:30.679
<v Speaker 1>not actually connected to the ground flying over. That is

0:17:30.720 --> 0:17:34.159
<v Speaker 1>something that has been i think excitedly talked about. And

0:17:34.200 --> 0:17:36.439
<v Speaker 1>the question for you, is someone who's looked at this

0:17:36.560 --> 0:17:40.040
<v Speaker 1>in more detail, is whether or not you think that

0:17:40.040 --> 0:17:42.200
<v Speaker 1>that's got legs No pun intended.

0:17:42.720 --> 0:17:48.000
<v Speaker 3>So there absolutely is an application for drones in agriculture. However,

0:17:48.160 --> 0:17:52.440
<v Speaker 3>the spraying of large sways of cropping land is probably

0:17:52.480 --> 0:17:54.879
<v Speaker 3>not it. The payloads are just too small at the

0:17:54.920 --> 0:17:58.440
<v Speaker 3>moment and we haven't really seen advances in swarming technology,

0:17:58.440 --> 0:18:01.399
<v Speaker 3>and that's when we deploy multiple drones. So I think

0:18:01.480 --> 0:18:05.080
<v Speaker 3>the largest drone which is currently available is the Guardian

0:18:05.119 --> 0:18:09.040
<v Speaker 3>Agriculture sc one, which has around seventy to eighty liters

0:18:09.280 --> 0:18:12.600
<v Speaker 3>of payload capacity. It has also been invested by big

0:18:12.720 --> 0:18:15.800
<v Speaker 3>names in the industry like leaps by Buyer. Now, the

0:18:15.920 --> 0:18:19.720
<v Speaker 3>case for drones is that we can apply chemical to

0:18:19.960 --> 0:18:22.400
<v Speaker 3>hard to reach areas, which will mean that the use

0:18:22.400 --> 0:18:25.399
<v Speaker 3>of the chemical is more efficient, so such as the

0:18:25.600 --> 0:18:28.720
<v Speaker 3>tops of tree crops, which previously we haven't been able

0:18:28.760 --> 0:18:32.280
<v Speaker 3>to apply to very efficiently we've therefore lost yield. It

0:18:32.320 --> 0:18:35.520
<v Speaker 3>also can be used on areas such as boundaries where

0:18:35.720 --> 0:18:36.720
<v Speaker 3>the spray is.

0:18:36.640 --> 0:18:38.280
<v Speaker 2>Not able to get to as easily.

0:18:38.640 --> 0:18:43.480
<v Speaker 3>Alternatively, and areas of sprayer can't enter, like greenhouse agriculture

0:18:43.520 --> 0:18:45.879
<v Speaker 3>or glasshouse agriculture. So there certainly is a case for

0:18:45.920 --> 0:18:48.720
<v Speaker 3>spray drones. The technology is just not there yet at

0:18:48.760 --> 0:18:53.359
<v Speaker 3>the moment to spray big swathes of agricultural arable land.

0:18:53.760 --> 0:18:57.120
<v Speaker 3>Another application of the use of drones will be in

0:18:57.240 --> 0:19:00.520
<v Speaker 3>mapping and surveillance of fields. So that is something that

0:19:00.640 --> 0:19:03.280
<v Speaker 3>currently takes a lot of time and effort and also

0:19:03.280 --> 0:19:05.520
<v Speaker 3>a lot of money to get a satellite map done

0:19:05.680 --> 0:19:08.959
<v Speaker 3>of the characteristics of your farm land, which are very

0:19:09.000 --> 0:19:12.240
<v Speaker 3>useful in applying inputs. So that may be the yields,

0:19:12.320 --> 0:19:15.200
<v Speaker 3>that may be the presence of pests, that may be

0:19:15.480 --> 0:19:16.680
<v Speaker 3>the availability of.

0:19:16.760 --> 0:19:18.199
<v Speaker 2>Water for your cropping.

0:19:18.240 --> 0:19:22.320
<v Speaker 3>So this will enable us to work smarter using imagery

0:19:22.440 --> 0:19:25.400
<v Speaker 3>mapping software that then can be loaded up to farm

0:19:25.400 --> 0:19:29.159
<v Speaker 3>management software to deploy chemicals smarter. So the case for

0:19:29.240 --> 0:19:34.280
<v Speaker 3>drones is either as surveillance and mapping imagery technology or

0:19:34.400 --> 0:19:37.520
<v Speaker 3>as in small payloads in areas that we can't get

0:19:37.520 --> 0:19:38.280
<v Speaker 3>a boom spread to.

0:19:38.760 --> 0:19:41.560
<v Speaker 1>So the drone technology is actually a compliment to the

0:19:41.560 --> 0:19:44.760
<v Speaker 1>boomsprayer as opposed to an alternative to it, at least

0:19:44.760 --> 0:19:47.040
<v Speaker 1>in the picture that you've painted of the future, where

0:19:47.080 --> 0:19:49.800
<v Speaker 1>we're looking at the field and being strategic and then

0:19:49.800 --> 0:19:53.280
<v Speaker 1>the boom sprayer has that ability to actually do the

0:19:53.440 --> 0:19:56.840
<v Speaker 1>end application in that quite precision way. This seems like

0:19:56.880 --> 0:19:59.399
<v Speaker 1>a great solution. You've got me very excited about what

0:19:59.440 --> 0:20:02.360
<v Speaker 1>this technology could accomplish. So let's pivot a little bit

0:20:02.480 --> 0:20:06.360
<v Speaker 1>to what parts of the pest world that it could

0:20:06.400 --> 0:20:09.120
<v Speaker 1>actually be applied to. A lot of our conversation thus

0:20:09.160 --> 0:20:14.439
<v Speaker 1>far has really focused on weeds and the plant based

0:20:14.560 --> 0:20:17.240
<v Speaker 1>problems that we have there, but invariably there are also

0:20:17.560 --> 0:20:23.480
<v Speaker 1>fungus and insects. Is that the next frontier for this technology?

0:20:23.560 --> 0:20:26.560
<v Speaker 1>And I guess, without asking you to predict the future,

0:20:26.760 --> 0:20:30.040
<v Speaker 1>how soon do you think it'll be applicable to a

0:20:30.200 --> 0:20:32.200
<v Speaker 1>wider range of pests?

0:20:32.600 --> 0:20:36.639
<v Speaker 3>Absolutely so, we already have companies offering drone surveillance to

0:20:36.840 --> 0:20:39.840
<v Speaker 3>be able to detect other types of pests, such as

0:20:40.400 --> 0:20:44.080
<v Speaker 3>Xavio for instance. However, what we haven't yet seen is

0:20:44.440 --> 0:20:47.960
<v Speaker 3>a machine that is actually capable of seeing and detecting

0:20:48.040 --> 0:20:51.160
<v Speaker 3>the other types of pests in real time and then

0:20:51.280 --> 0:20:55.320
<v Speaker 3>therefore delivering the precise dose of required pesticide, whether it

0:20:55.400 --> 0:20:58.280
<v Speaker 3>be a herbicide, insecticide, or fungicide. Now we've put a

0:20:58.400 --> 0:21:01.200
<v Speaker 3>rough estimate there together that we think by at least

0:21:01.240 --> 0:21:04.320
<v Speaker 3>twenty thirty we'll have this detection available for fungicide, so

0:21:04.359 --> 0:21:08.080
<v Speaker 3>that disease will be detectable by a machine in real time,

0:21:08.280 --> 0:21:11.280
<v Speaker 3>and then for insects, we think that should come land

0:21:11.440 --> 0:21:14.920
<v Speaker 3>somewhere between now and twenty fifty. The problem with insects

0:21:15.040 --> 0:21:18.400
<v Speaker 3>is that they are mobile, they're fast, and they're cryptic.

0:21:18.680 --> 0:21:21.040
<v Speaker 3>That means that they can hide, so actually spotting them

0:21:21.040 --> 0:21:23.760
<v Speaker 3>in a crop is a particularly difficult endeavor.

0:21:24.160 --> 0:21:26.919
<v Speaker 1>So when I'm imagining the future, I should not be

0:21:27.000 --> 0:21:30.120
<v Speaker 1>imagining some sort of robot, whether on a boom or

0:21:30.160 --> 0:21:33.240
<v Speaker 1>as a drone, flying around chasing insects in some sort

0:21:33.240 --> 0:21:35.400
<v Speaker 1>of a field. But who is coming up with these

0:21:35.400 --> 0:21:39.880
<v Speaker 1>technology solutions. Are they Silicon valley tech companies, Are they

0:21:40.119 --> 0:21:44.480
<v Speaker 1>smaller startups or are they the pesticide companies themselves thinking

0:21:44.520 --> 0:21:49.040
<v Speaker 1>about these new and innovative ways to essentially make farming better.

0:21:49.200 --> 0:21:50.440
<v Speaker 2>So it's actually a mixture.

0:21:50.640 --> 0:21:53.959
<v Speaker 3>What we've seen is we've seen two roots to market,

0:21:54.280 --> 0:21:57.359
<v Speaker 3>and that is from either in house R and D

0:21:57.600 --> 0:22:00.600
<v Speaker 3>and bolt on acquisitions, or it's from parts ships with

0:22:00.880 --> 0:22:04.880
<v Speaker 3>larger companies and smaller startups. So John Deere has gone

0:22:05.000 --> 0:22:07.840
<v Speaker 3>the complete in house route. It's kept its doors shut,

0:22:07.880 --> 0:22:10.400
<v Speaker 3>It's acquired a couple of interesting companies along the way,

0:22:10.520 --> 0:22:14.439
<v Speaker 3>such as Blue River Technology and bear Flag Robotics. On

0:22:14.480 --> 0:22:18.000
<v Speaker 3>the flip side, we've seen companies like CNCH Industrial and

0:22:18.040 --> 0:22:22.400
<v Speaker 3>Agco who have entered into partnerships with spot spray startups

0:22:22.480 --> 0:22:26.000
<v Speaker 3>like Zavio and one smart Spray now there. Recently, there's

0:22:26.040 --> 0:22:28.320
<v Speaker 3>been a joint venture between Agco and one of the

0:22:28.359 --> 0:22:32.520
<v Speaker 3>world's biggest technology companies, Trimble. This acquisition has enabled ADCO

0:22:32.880 --> 0:22:38.439
<v Speaker 3>to really take control of the retrofit precision agriculture suite.

0:22:38.520 --> 0:22:42.399
<v Speaker 3>This is across both spraying, harvesting, delivery of fertilizers. But

0:22:42.520 --> 0:22:45.960
<v Speaker 3>one key part of that joint venture is Bilbury. Now,

0:22:46.000 --> 0:22:50.119
<v Speaker 3>Bilbury is the best performing green on green sprayer on paper.

0:22:50.240 --> 0:22:52.639
<v Speaker 3>What this means is they have the best promises to

0:22:52.720 --> 0:22:55.439
<v Speaker 3>reduce the most amount of chemical pesticide and that is

0:22:55.440 --> 0:22:57.199
<v Speaker 3>sitting at ninety seven point five percent.

0:22:57.480 --> 0:23:00.679
<v Speaker 1>Now let's just pivot again to adaption. Going back to

0:23:00.720 --> 0:23:03.199
<v Speaker 1>what you were saying earlier about some of these units

0:23:03.240 --> 0:23:06.199
<v Speaker 1>being over one hundred thousand US dollars to install. This

0:23:06.359 --> 0:23:09.640
<v Speaker 1>is a big capital outlay, and we know that farming

0:23:09.920 --> 0:23:12.040
<v Speaker 1>is a tough business to be in and the margins

0:23:12.040 --> 0:23:15.280
<v Speaker 1>are not amazingly great, so this may be a fairly

0:23:15.320 --> 0:23:18.640
<v Speaker 1>big hurdle for some farms to actually cross. What are

0:23:18.720 --> 0:23:21.280
<v Speaker 1>governments doing and maybe we can use the case of

0:23:21.280 --> 0:23:25.400
<v Speaker 1>Australia where we've seen good farmer uptake. What it's driven that.

0:23:25.480 --> 0:23:28.920
<v Speaker 1>Has it been entirely the market or have there been

0:23:29.000 --> 0:23:32.200
<v Speaker 1>in government incentives and schemes that have facilitated it.

0:23:32.440 --> 0:23:33.280
<v Speaker 2>That's a great question.

0:23:33.400 --> 0:23:36.240
<v Speaker 3>And actually the geography with the highest adoption in Australia

0:23:36.280 --> 0:23:38.480
<v Speaker 3>has seen most of its adoption of infact all of

0:23:38.520 --> 0:23:41.679
<v Speaker 3>its adoption driven by savings to the farmer. Now, with

0:23:41.800 --> 0:23:44.720
<v Speaker 3>nineteen percent of the variable costs for a grower in

0:23:44.760 --> 0:23:48.440
<v Speaker 3>each year being comprised of crop protection reducing that can

0:23:48.480 --> 0:23:50.960
<v Speaker 3>really cause a benefit to the bottom line for the

0:23:50.960 --> 0:23:54.040
<v Speaker 3>grower themselves. Now, with our modeling, what we've seen is

0:23:54.240 --> 0:23:57.439
<v Speaker 3>the cost of spraying one hecta employing this green on

0:23:57.520 --> 0:24:00.439
<v Speaker 3>green optical spot spraying is about sixty percent saving.

0:24:00.760 --> 0:24:04.600
<v Speaker 1>So really the farmers are very much motivated by how

0:24:04.680 --> 0:24:07.240
<v Speaker 1>much money they're going to save and the payback period

0:24:07.520 --> 0:24:10.040
<v Speaker 1>in terms of money saved on pesticides. It's going to

0:24:10.080 --> 0:24:14.920
<v Speaker 1>make it worthwhile pretty quickly to buy these machines. They

0:24:14.920 --> 0:24:17.160
<v Speaker 1>may even be able to get loans for them.

0:24:17.440 --> 0:24:19.760
<v Speaker 3>Absolutely, So now that does bring a little bit of

0:24:19.800 --> 0:24:22.560
<v Speaker 3>a question into it, and the limitations are that in

0:24:22.920 --> 0:24:25.880
<v Speaker 3>countries where or with a grow who is not large

0:24:25.960 --> 0:24:29.760
<v Speaker 3>enough to be able to outlay the capital expenditure to

0:24:29.800 --> 0:24:33.040
<v Speaker 3>actually obtain the chemical, then what does that mean for them?

0:24:33.200 --> 0:24:36.840
<v Speaker 3>But we are hearing certain calls, whether it be tax

0:24:36.840 --> 0:24:41.280
<v Speaker 3>breaks or tax incentives or subsidies for purchase of precision

0:24:41.320 --> 0:24:42.280
<v Speaker 3>agriculture equipment.

0:24:42.640 --> 0:24:44.960
<v Speaker 1>So we're thinking about the future of farming here, and

0:24:45.119 --> 0:24:48.520
<v Speaker 1>this AI application is certainly one important way for us

0:24:48.560 --> 0:24:51.680
<v Speaker 1>to think about tackling a problem pesticide use. So tell

0:24:51.680 --> 0:24:54.680
<v Speaker 1>me a bit about the future. How soon and what

0:24:54.760 --> 0:24:58.080
<v Speaker 1>does it look like in these modern farms that are

0:24:58.119 --> 0:25:00.640
<v Speaker 1>going to be much more efficient.

0:25:01.200 --> 0:25:04.000
<v Speaker 3>So what we'll see in the future is we'll see fungicide,

0:25:04.280 --> 0:25:07.240
<v Speaker 3>herbicide and insecticide all being able to be delivered from

0:25:07.240 --> 0:25:09.520
<v Speaker 3>the same machine. But not only that, the machine will

0:25:09.760 --> 0:25:12.640
<v Speaker 3>be able to make decisions in real time to detect

0:25:12.720 --> 0:25:15.280
<v Speaker 3>all types of pests, but also be able to learn

0:25:15.600 --> 0:25:18.200
<v Speaker 3>year on year what the trends are, what does the

0:25:18.920 --> 0:25:21.919
<v Speaker 3>local area look like, what does the agronomy request or

0:25:21.960 --> 0:25:24.760
<v Speaker 3>require to be applied, and so essentially what we're doing

0:25:24.800 --> 0:25:27.960
<v Speaker 3>is we're building a large data model of the farm.

0:25:28.080 --> 0:25:31.199
<v Speaker 3>So as the machine goes through the farm, it learns

0:25:31.200 --> 0:25:33.680
<v Speaker 3>the farm, and that's from both we're talking earlier about

0:25:33.760 --> 0:25:37.080
<v Speaker 3>drone surveillance and drone surveying, but also from the.

0:25:37.080 --> 0:25:38.000
<v Speaker 2>On farm cameras.

0:25:38.080 --> 0:25:40.600
<v Speaker 3>So as they learn, the machines get better and they

0:25:40.640 --> 0:25:42.160
<v Speaker 3>get better and more precise.

0:25:42.880 --> 0:25:49.720
<v Speaker 1>So in this increasingly technology reliant agriculture future, what are

0:25:49.840 --> 0:25:52.639
<v Speaker 1>the potential downsides? You know, with the exception of the

0:25:52.680 --> 0:25:56.320
<v Speaker 1>obvious ones, which are that there is required energy use

0:25:56.480 --> 0:25:59.480
<v Speaker 1>for operating any sort of machine, as well as energy

0:25:59.560 --> 0:26:02.520
<v Speaker 1>use for the servers that will very much be required

0:26:02.560 --> 0:26:06.000
<v Speaker 1>in order to facilitate this AI technology the energy transition.

0:26:06.400 --> 0:26:10.280
<v Speaker 1>This makes it intrinsically linked to the changes that may

0:26:10.280 --> 0:26:13.160
<v Speaker 1>be required in the agriculture space. But are there any

0:26:13.240 --> 0:26:16.360
<v Speaker 1>other downsides to this that maybe I haven't considered.

0:26:16.800 --> 0:26:19.240
<v Speaker 3>We haven't spoken at all about autonomy on these machines,

0:26:19.280 --> 0:26:21.399
<v Speaker 3>and actually what we're moving to as a smart vehicle

0:26:21.440 --> 0:26:24.080
<v Speaker 3>that can actually work and operate without the requirement of

0:26:24.119 --> 0:26:25.879
<v Speaker 3>a human. But what that means is then the farmer

0:26:26.040 --> 0:26:29.120
<v Speaker 3>can spend more time monitoring their crops and actually paying

0:26:29.119 --> 0:26:33.359
<v Speaker 3>attention to the local agronomy. Even if these machines moved

0:26:33.400 --> 0:26:37.040
<v Speaker 3>to being fully autonomous, being able to operate by themselves.

0:26:37.320 --> 0:26:39.000
<v Speaker 3>That will mean that we'll free up time on the

0:26:39.040 --> 0:26:43.040
<v Speaker 3>farm for growers who conventionally quite time poor, to be

0:26:43.080 --> 0:26:45.240
<v Speaker 3>able to pay more attention to their crops, to be

0:26:45.240 --> 0:26:47.680
<v Speaker 3>able to monitor for pests, monifor the presence of pests,

0:26:47.800 --> 0:26:50.560
<v Speaker 3>monitor the health and monitorf really for their plant need

0:26:50.600 --> 0:26:52.200
<v Speaker 3>as opposed to spending a lot of the time in

0:26:52.280 --> 0:26:55.640
<v Speaker 3>the cab actually applying these products. Now there's a startup

0:26:55.720 --> 0:26:59.920
<v Speaker 3>also based here in Australia called swarm Farm Robotics. Now,

0:27:00.119 --> 0:27:03.479
<v Speaker 3>what swarm Farm does is they operate a driverless vehicle

0:27:03.560 --> 0:27:06.520
<v Speaker 3>that is capable of towing a sprayer. However, this vehicle

0:27:06.640 --> 0:27:10.040
<v Speaker 3>can choose or has the smarts to operate only when

0:27:10.080 --> 0:27:12.959
<v Speaker 3>the timing is perfect for the chemical to be applied,

0:27:13.000 --> 0:27:15.920
<v Speaker 3>and that is when there is low rain and low wind.

0:27:16.000 --> 0:27:18.000
<v Speaker 3>That means that the chemical is less likely to be

0:27:18.119 --> 0:27:21.960
<v Speaker 3>pulled off of the cropping system or escape the cropping system.

0:27:22.480 --> 0:27:25.159
<v Speaker 1>So, Alex, my final question really comes down to the

0:27:25.200 --> 0:27:27.400
<v Speaker 1>fact that when I think of technology now, I think

0:27:27.440 --> 0:27:30.760
<v Speaker 1>about all of these subscription models that we all subscribe to.

0:27:31.119 --> 0:27:34.320
<v Speaker 1>Will this apply to this technology and will there essentially

0:27:34.359 --> 0:27:37.560
<v Speaker 1>be software updates to the AI technology where it becomes

0:27:37.680 --> 0:27:40.880
<v Speaker 1>more sophisticated and can do a better job of figuring

0:27:40.920 --> 0:27:44.280
<v Speaker 1>out what the precision sprayer needs to do. And as

0:27:44.320 --> 0:27:48.000
<v Speaker 1>a result, is this both a hardware and software conversation?

0:27:48.760 --> 0:27:49.760
<v Speaker 2>It absolutely is.

0:27:50.000 --> 0:27:55.440
<v Speaker 3>So there's essentially three models that the machinery manufacturers are employing. Firstly,

0:27:55.560 --> 0:27:59.240
<v Speaker 3>is a one off fee to purchase both the software

0:27:59.320 --> 0:28:02.000
<v Speaker 3>and the hardware. Then we have a second where you

0:28:02.000 --> 0:28:04.760
<v Speaker 3>would purchase the hardware and then choose to turn on

0:28:04.840 --> 0:28:07.399
<v Speaker 3>the software for a year, and that would enable you

0:28:07.440 --> 0:28:10.480
<v Speaker 3>to spray the amount of hectares per year paying for

0:28:10.680 --> 0:28:15.160
<v Speaker 3>the algorithm that actually detects these pests in field. Now,

0:28:15.160 --> 0:28:18.360
<v Speaker 3>the third option is paying per use, So every time

0:28:18.400 --> 0:28:20.800
<v Speaker 3>you turn on your tractor and choose to use that function,

0:28:20.960 --> 0:28:23.639
<v Speaker 3>you'll pay a fee. So what this means essentially is

0:28:23.640 --> 0:28:26.680
<v Speaker 3>that the current quotes that we're currently seeing are around

0:28:26.760 --> 0:28:31.280
<v Speaker 3>five to seven dollars per hecta to use the technology.

0:28:31.760 --> 0:28:34.000
<v Speaker 1>So this is really interesting because not only is this

0:28:34.080 --> 0:28:37.119
<v Speaker 1>technology going to help save the farmer money on its

0:28:37.160 --> 0:28:39.920
<v Speaker 1>pesticide use, but there actually is a long term revenue

0:28:39.920 --> 0:28:42.920
<v Speaker 1>stream for the companies that are actually selling the technology.

0:28:43.120 --> 0:28:46.120
<v Speaker 1>So I am very interested to see how these business

0:28:46.120 --> 0:28:49.280
<v Speaker 1>models evolve and invariably where it ends up in the world,

0:28:49.360 --> 0:28:52.320
<v Speaker 1>because Australia great first place to start. But I am

0:28:52.760 --> 0:28:54.920
<v Speaker 1>seeing a lot of potential here for other parts of

0:28:54.920 --> 0:28:57.360
<v Speaker 1>the world which you've already identified, such as parts of

0:28:57.360 --> 0:29:00.480
<v Speaker 1>Europe and Brazil and North America. So we will wait

0:29:00.480 --> 0:29:02.280
<v Speaker 1>and see. We look forward to having you back on

0:29:02.320 --> 0:29:06.120
<v Speaker 1>the show telling us about more developments in the agriculture space.

0:29:06.240 --> 0:29:07.720
<v Speaker 1>Thank you for sharing your thoughts.

0:29:07.680 --> 0:29:09.000
<v Speaker 2>Thanks for having me, It's been great.

0:29:17.960 --> 0:29:21.280
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0:29:21.440 --> 0:29:24.880
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0:29:24.880 --> 0:29:28.920
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