AI Gives Growers Predictability Superpowers: Source.ag
STORY INLINE POST
Q: How do Source's AI solutions improve efficiency for fruit and vegetable growers?
A: By enabling more growers to operate more facilities more efficiently through tech, Source.ag is making covered greenhouse agriculture accessible, profitable, and globally scalable.
We integrate a layer of intelligent software into growing, providing numerous support systems to help growers. We prioritize increasing visibility for growers, allowing them to monitor their greenhouse facilities effectively. Growers often manage multiple systems, such as irrigation and climate control in high-tech greenhouses. Source.ag adds a layer of intelligence by integrating all these systems into one platform. We provide visibility by consolidating data, integrating with various sensors to centralize information and using this data to predict, optimize, and autonomously execute strategies. For example, with tomato cultivation, Source.ag solutions help track new flower development and assess plant strength and health throughout the season. Our AI provides real-time insights into the progress of cultivation, enabling growers to make informed decisions at any moment.
Source.ag solutions also forecast the entire growing season. As new information about the weather or crop growth becomes available, we help the grower adjust their operations and strategy accordingly. A grower makes hundreds of decisions daily, ranging from irrigation to pruning, to logistics planning, and labor planning. These decisions need constant readjustment. We focus on both visibility and predictability, forecasting yields and how the crop will grow.
For growers, this tool is like gaining superpowers because previously, they had limited visibility. In the past, most of the decisions were made using Excel sheets, and most of the actions had to be done manually. Growers need these superpowers to be successful in a world that is becoming more volatile and more demanding, with fluctuating prices, resource shortages, and a more extreme climate.
Q: What metrics do Source's solutions measure and what percentage of savings do they represent for growers?
A: Each grower has different priorities and, ultimately, it all comes down to keeping the cost per kilogram low while maximizing margins. The key factors are yield per square meter, cost per kilogram, and the price per kilogram. The impact of our solutions varies among growers. For example, some Dutch growers excel at maximizing yield per square meter but still need improvements in CO2 emissions, electricity use, and labor efficiency. By using our tools, these growers enhance cost-efficiency and improve yield predictions, enabling them to plan ahead and secure better prices.
In other regions, some growers might produce 20%-40% less yield than others. With them, we focus on increasing yield. On average, we believe we can boost a grower’s bottom line by 5% to 10%.
Q: How extensive is Source's coverage in terms of hectares and regions, and how does it showcase the scalability of its AI solutions?
A: Source.ag is, to our knowledge, the only AI-driven data company that has experienced such rapid growth. In just three and a half years, we have expanded from two people to over 100, focusing solely on AI and software, without any involvement in hardware or sensors. We now work with nearly 2,000ha of high-tech greenhouses, including tomato, pepper, and cucumber growers across more than 16 countries.
For a young company like us, this represents significant growth and demonstrates that we have developed scalable AI and software solutions that benefit growers worldwide. We are active in many regions, from Mexico to Canada, Kazakhstan to North Africa, and in the European Union. This global scalability and the value we provide growers are crucial in this market.
Q: What opportunities make the North American market attractive for Source.ag?
A: There is a massive global demand for fresh produce, with about 3 billion people lacking sufficient access. Even developed markets like Mexico, Canada, and the United States have a significant need for fresh, healthy food, presenting a substantial opportunity for North American growers.
Fresh produce markets are largely regional, with limited intercontinental shipping for perishable items such as lettuce, tomatoes, and peppers. This creates considerable potential opportunities for North American growers, and we aim to help them capitalize on them. To support growers effectively, we need to be present on the ground, integrating with their daily operations rather than operating from abroad. This commitment is why we established a North American office earlier this year, with teams in Canada, the United States, and Mexico.
Q: What specific opportunities do Source’s products bring to the Mexican market?
A: Mexico is an interesting market for several reasons. It is one of the few places in the world with a combination of highly advanced high-tech greenhouses growing alongside a significant amount of mid and low-tech greenhouse cultivation. There is also a large portion of open-field fresh produce. While Mexico has a strong domestic market, demand from the United States is immense. There are thus numerous opportunities for Mexican growers both within the country and across North America.
A major challenge in Mexico is the increasingly extreme weather, which causes problems like tomatoes cracking due to temperature fluctuations between summer and winter. This has driven a shift from open-field farming to protected agriculture. For example, one grower that we talked to has transitioned most of their open-field operations to mid and low-tech greenhouses over the past five years. Farmers are also adopting more advanced technology, which could involve adding sensors or adopting more complex seed varieties. Mexican growers are highly ambitious and constantly strive to innovate. Source can play a crucial role in this innovation. Our software platform makes it easier to integrate new sensors, successfully grow new seed varieties from the first year, and predict yields more accurately, leading to better trading positions in the market.
Q: How did the Mexican public receive your products at Greentech Americas?
A: The reception has been overwhelmingly positive. Our approach, which combines extensive knowledge and experience from EU and Dutch markets with a strong local focus, has been particularly well-received. For example, we collaborate with Mexican growers to ensure that our translations use accurate local terminology. We also have local teams on the ground to support our Mexican partners directly.
Growers face challenges like extreme climate conditions, pricing pressures, and complex planning for new seed varieties. We are well-positioned to provide valuable solutions to these issues.
Q: Why is greenhouse cultivation the best option for North American farmers?
A: Greenhouses come in a broad range of types, from glass structures with advanced climate and CO2 control to midtech and low-tech greenhouses made of plastic. While glass greenhouses cover about 60,000ha to 70,000ha globally, plastic and lower-tech options span millions of hectares. The advantage of greenhouse agriculture, regardless of the technology level, is the increased control over crop growth compared to open-field farming.
In high-tech greenhouses, growers can optimize irrigation, nutrient delivery, pruning, and climate control. Even in midtech or low-tech greenhouses, where climate control might be limited, significant gains can be achieved by focusing on irrigation and nutrient management. The appeal of greenhouse growing lies in its protection against extreme weather, resource efficiency, and the ability to produce high-quality fresh produce locally. As water scarcity becomes more pressing, greenhouse growing presents a solution that uses fewer resources.
In the next five to 10 years, there will be rapid growth in covered agriculture across all levels as this method becomes increasingly vital for sustainable food production. Climate adaptation is an immediate concern, not a future one. This increasing complexity challenges growers, making it essential to equip them with advanced technology, seeds, hardware, and software to manage this volatile environment.
Q: What are the company’s plans for 2024 and 2025 in Mexico and North America?
A: The core of our work revolves around real-world AI, which directly impacts tangible outcomes in agriculture. We began by focusing on high-tech greenhouses, particularly for tomatoes, peppers, and cucumbers. Our AI models now accurately simulate how specific seed varieties will react to different conditions, allowing growers to predict outcomes and optimize their strategies.
In 2024 and 2025, we aim to broaden our AI's scope to cover more seed varieties and extend our technology to mid-tech and low-tech greenhouses. We are already working with growers in Morocco, Egypt, and Mexico. While there are synergies between different types of greenhouse growing, we know that significant adaptation is needed and we are committed to investing in this tailored approach over the next two years.
Q: What key partners has Source.ag identified in Mexico to support its growth?
A: We prioritize working directly with growers. We partner with highly innovative, forward-thinking growers. We recognize that while we excel in AI, growing expertise is crucial, so we collaborate closely with those who excel in cultivation.
In Mexico, we follow the same model: We engage with a select group of innovative growers, listen to their needs, and jointly develop and test our tools. Once we have refined our solutions to meet their requirements, we expand our efforts. This method has proven successful, and we are now intensifying our focus based on these validated solutions.
Source.ag is a software company that specializes in providing AI solutions for vegetable growerrs to maximize profit and scale.








By Fernando Mares | Journalist & Industry Analyst -
Tue, 08/20/2024 - 09:22








