A global refiner and processor in the food and beverage industry minimizes financial risk by proactively adjusting sourcing and pricing strategies. Earth observation data from EarthDaily Agro equips growers, producers and processors with the intelligence to help make more informed, confident business decisions.
Food and beverage manufacturers source crops worldwide—corn, wheat, barley, coffee, sugarcane, oilseeds, apples, to name a few—for the ingredients that go into their products. Timing is critical. Processors must constantly balance global supply and demand to ensure product is available when and where needed and at a suitable price. Yield, availability and price are affected by climate, the pandemic, supply chain issues and political instability. One global refiner and processor in the food and beverage industry is able to act quickly and reduce risk associated with global food and beverage production with the use of earth observation data.
Protecting supply and generating demand are crucial for the refiner. Both supply protection and demand generation can be highly volatile due to even minor fluctuations in the interconnected global value chain. How quickly the rener responds to global market conditions for supply directly affects the bottom line. To stay on top of—and ahead of—these conditions, the refiner relies on satellite imaging and advanced analytics from EarthDaily Agro to mitigate risk and increase efficiencies.
“To be successful, we must understand and act on the issues affecting our crops worldwide. Time is of the essence for making decisions on contracted production and pricing. EarthDaily Agro helps us make those decisions.”
Challenge: Make the best decisions for production and pricing
The refiner, one of the world’s largest, produces a full line of grocery and e-commerce, industrial, food service and specialty products, with a strong focus on innovation and product development. Global production requires understanding where issues are affecting local crops and how that impacts overall contracted production as well as costs. For example, if production in India is impacted due to poor weather and crop health, the refiner must identify a different region, such as Brazil, for sourcing and purchasing crops. If there is a notable difference in price, then the refiner must make the decision whether to sell, hold or buy.
Solution: A virtual tour of global production
Correct and timely data is crucial to make the most informed decisions for production and pricing. The refiner partners with EarthDaily Agro for Earth Observation data that forecasts and analyzes global crop production. A combination of powerful app, robust data stream and expert analytical services provides the information needed to help mitigate risk and ensure profitability. Called geosys Platform, the cloud-based platform includes vegetation indexes, agronomic analytics, weather data, and notifications and warnings. The data is a virtual tour of crop production all over the world and features the ability to mask, or layer, only those regions growing the crop. But more than providing a suite of data, EarthDaily Agro specializes in expert analytical services. EarthDaily Agro’s professional agronomists meet with the refiner as often as weekly, providing both local expertise and subject matter expertise to help the refiner put the data to best possible use.
Results: Minimize financial risk
With EarthDaily Agro’s data and analysis, the refiner anticipates the global market for crop production and pivots quickly in response to market conditions. As a result, the refiner obtains the necessary data faster and earlier than other sources.
Benefit: Proactivity benefits the bottom line
This enables the company to be proactive by taking action on crop conditions and then adjust sources and pricing strategy. With Earth Daily’s information, the refiner minimizesfinancial risk and delivers the most cost-efficient product to its customers.
Next up: Daily observation
Coming soon, EarthDaily Analytics will launch The EarthDaily Constellation, the world’s most powerful global change detection and analysis system. In a unique combination of 22 spectral bands, the satellites will collect scientific-grade and analytics-ready imagery of the Earth’s land mass captured every day, at the same time of day, and made available within hours through a cloud-based platform.