Driving efficiency through digitalisation
The integration of precision farming, data analytics and automation into Southeast Europe’s agricultural sector is highlighted as a game-changer. Key technologies like IoT, satellite and drone imaging, sensor networks, GPS systems and dedicated mobile apps improve decision-making and resource management while addressing challenges such as labour shortages and environmental concerns.
Digital transformation has a long way to go in most of the countries within the study’s focus. According to the EU’s Digital Economy and Society Index (DESI), all four nations still fall below the EU average in overall digitalisation. Connectivity issues in rural areas are a common barrier to the adoption of advanced farming tools, making infrastructure upgrades and training essential for sustaining productivity.
Employment declining and productivity challenges
While agriculture absorbed only 4.3% of the EU’s workforce in 2022, the sector remained a major employer in SEE accounting for 15.2% of employment in Bulgaria, 14.3% in Serbia and 20.8% in Romania. However, employment in agriculture is steadily declining, compounded by an ageing workforce as the share of farm managers over 65 years old exceeds 30% in most of these countries. In Romania, nearly 40% of agricultural managers are aged 65 or older, emphasising the need for generational renewal.
Labour productivity, measured as GVA per annual working unit (AWU), is also trailing behind most European countries. Boosting productivity per AWU requires immediate action, including investments in digital technologies and skills development.
Policy focus and diverging ambitions in digital adoption
The digitalisation strategies of Bulgaria, Romania, Croatia and Serbia focus on modernising agriculture through precision technologies, while also tackling connectivity and digital literacy challenges. Key policy priorities include enhancing competitiveness, accelerating the adoption of smart farming and precision agriculture and improving digital skills among the workforce. All of these efforts are designed to boost productivity and sustainability.
While digital transformation is a shared goal across the region, ambitions vary widely. The EU’s Common Agricultural Policy (CAP) tracks digitalisation ambitions in agriculture through the “Digitalising Agriculture” (R3) indicator, measuring the share of farms supported for adopting digital technologies. Of the countries under review, Bulgaria leads with an ambitious target of 12.8% by 2029. Croatia plans modest growth, reaching 0.82% by 2029, while Romania ranks the lowest in the EU, targeting only 0.03%. This minimal goal is largely due to Romania’s highly fragmented farm structure, with its significant share of small farms under 1 hectare.
The findings in this comprehensive analysis by SeeNext serve as a useful resource for industry stakeholders, policymakers and investors seeking to understand and capitalise on the agriculture and digitalisation opportunities in these markets.
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Publish date : 2024-11-22 06:13:00
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