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Creating and Capturing Business Value in Agricultural Supply Chain Management using Location Based Technologies Raymond De Lai (presenter) Michael Sefton;

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Presentation on theme: "Creating and Capturing Business Value in Agricultural Supply Chain Management using Location Based Technologies Raymond De Lai (presenter) Michael Sefton;"— Presentation transcript:

1 Creating and Capturing Business Value in Agricultural Supply Chain Management using Location Based Technologies Raymond De Lai (presenter) Michael Sefton; Gioia Small; and Sam Brooke (contributors)

2 Herbert Resource Information Centre Presentation structure 1.Australian Sugar Industry Agricultural farming systems/PA Location based business solution Data Mining 2.Australian Wine Grape Industry Location based business solution 3.Conclusion

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4 Herbert Sugar Industry – Growing Cane About 560 growers supplying cane from 600 farms Farms vary in production from 2000 tonnes to >100,000 tonnes ha under cultivation. 10,000 ha fallow GPS guidance is being increasingly used for planting, cultivation and harvesting Normally 85t/ha; about 4.5 million tonnes; average sugar 13.5 CCs. About $400/tonne. Value $243 million (if 4.5 million and 13.5 CCS)

5 Herbert Sugar Industry – Harvesting Cane All cane is harvested mechanically. Almost none is burnt We have 58 harvesting groups. The largest supplies around 85,000 tonnes Each harvester has an on-board computer, a GPS for tracking where cane has been harvested and a modem for transmitting data Some have yield monitors for mapping cane yields We can observe at the mill which harvesters are operating and where they are

6 Herbert Sugar Industry – Transporting Cane Sucrogen has 26 Locomotives and more than 8000 cane bins Sucrogen has it’s own loco tracking program – RailSafe They can view HRIC system in RailSafe but not the other way around There is about 350 Km’s of track and about 240 sidings Sucrogen traffic officers reliant on Harvest Management System.

7 Herbert Sugar Industry – Milling Cane Two sugar mills – Victoria and Macknade Victoria is the biggest mill in Australia. Rates up to 1200t/hr Macknade can crush up to 600t/hr Capacity of crushing to tonnes/week Victoria Mill putting in 20Megawatt co-generation plant

8 High level of interdependence – but not vertically integrated (except for milling and transport) Sao Martinho Brazil (St Martin Mill) – completely vertically integrated.  5-6 million tonne (80-90 tonne p ha average)  (also two 9 million tonne farms in other regions).  45 harvesters (7 groups)  2 tractors – 3 haul – outs  cane transported by 350 trucks  own planters and fertilising We have:  Herbert (5 million tonne)  2 mills (one owner) who owns transport  58 harvesters (separate businesses)  c. 560 growers  15 Planters and fertiliser contractors Virtual Integration

9 EM Soil Mapping

10 GPS base station network Community GPS base station program to allow cheaper entry to PA by the industry. Led to greater adoption. Economies of scale. Sub-2cm accuracy

11 M Sefton 2011

12 Yield Monitoring System ha under yield monitoring New farming systems 1.Cane growers being more profitable 2.Increased cane for mill 3.Turns whole area into a variety trial Real time pour rate data for Harvest Performany

13 HCPSL Soil Mapping E D F   < Site at Lannercost, 2008 Photos taken by L Di Bella

14 Sugar Cane Estimate

15 Strategic Project: 2009 Flood Damage

16 Cane Mapping Foundation and mission critical dataset Enables: crop estimate at sub-block level cane consignment productivity initiatives and reporting cane transport plans environmental compliance

17 Real-Time Harvest Management System And Cane Consignment Error Trapping

18 HRIC Web Portal

19 Harvest Performance Report

20 Cost Comparison – BKN vs HBT HMS Comparing: cane mapping, estimating, harvest monitoring and cane consignment Burdekin Cane AreaHerbert Cane Area (all Parties) Cultivated area: Cultivated area: ha 11,000 cane blocks19,000 cane blocks 13 staff2 staff Total cost: $ Total cost: $ $11.80ha $5.09 ha $75.35 per block$15.69 per block Burdekin Herbert

21 Greensheet – Fertiliser Application

22 M Sefton & G Holzberger 2013

23 Cane Productivity Loss Increasing harvesting speeds in Herbert are costing A$20-$30 million per year. Can’t do this analysis without location based data (Harvest speeds from GPS and Productivity data over multiple years)

24 2013 Vintage Project Sweet opportunities to improve wine grape harvest, transport and intake

25 Business Opportunities Identified Vineyard Activities: Provide relevant, timely, an accurate information to the Winery More effectively manage vineyard operations Winery Operation Activities: Improvement in estimate Improvement of scheduling and booking processes Harvesting and Transport Improved efficiencies in harvesting Improved efficiencies in transport Winery Activities More effective and efficient winery Other Opportunities Provision of data to external agencies Traceability for sustainability and consumer marketing Improved availability to data

26 Location – McLaren Vale, South Australia

27 Improved Profitability and Efficiency No clear visibility – reliant on communication “Too late, too early, under tonnes or over tonnes” “We despatched the load with plenty of time to get to the winery at its booked time – it still turned up late and we don’t know why” “There’s a load due in 5 minutes – 45 minutes later we’re still waiting” Transport complexity adds costs Untimely delivery adds to costs

28 Business Management System

29 Key Points: Structural complexity in Australian sugar and wine grape industries – vertical interdependency Single business system focus – enterprise GIS solution for ‘virtual’ business integration Enterprise GIS for whole supply chain management system and business management: - farming; harvesting, transport, milling, shipping, marketing, RD&E HRIC enables this through focus on four components: institutional arrangements, data, people, and technology More times data used – more valuable it becomes

30 Contact Raymond De Lai Centre Manager Herbert Resource Information Centre Ph: Mob:


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