Walmart Introduces Crop Monitoring Technology to Revolutionize Produce Purchasing
Key Takeaways:
- On Thursday, Walmart revealed plans to test agriculture technology that will provide real-time insights into crop conditions and enhance decision-making for produce sourcing.
- The collaboration with Agritask, a crop supply intelligence firm, will utilize remote sensing and data analytics across various locations in the U.S. and Mexico, specifically focusing on blackberry and cherry crops from selected Walmart suppliers.
- This pilot initiative is occurring as the grocery sector explores improved methods for optimizing supply chains and addressing rapidly changing climate conditions that can influence prices and product availability.
Insights:
Walmart’s Agritask project aims to minimize food waste, deliver fresher produce to consumers, and enhance supply chain management by equipping sourcing managers with critical information on seasonal crop factors.
Climate conditions are significantly impacting supply chain functionality. A recent analysis by Everstream Analytics highlighted that extreme weather is the foremost risk for supply chains anticipated in 2024.
The USDA has reported that approximately 30% of food loss occurs during agricultural production and harvesting. Their findings indicate that weather, diseases, and pests are key contributors to food loss and quality issues in the food supply chain, with unpredictable weather being a major cause of food wastage.
“This pilot presents innovative approaches to tackle climate change and enhance sustainability within the industry,” stated Kyle Carlyle, Walmart’s vice president of sourcing innovation and supply assurance. “In light of fluctuating weather patterns, these technologies will assist us in adapting our sourcing strategies to ensure product availability and quality despite climate-related challenges.”
Walmart and Agritask opted to focus on cherries and blackberries for this pilot, given that these fruits are particularly sensitive to changes in temperature and moisture, which can affect their growth and overall quality. The data collected by both companies could alert managers regarding unexpected frost events that could damage cherry crops or delays in harvesting that could result in inventory adjustments.
“Navigating the challenges of purchasing accuracy and planning in agriculture amid data inconsistencies and environmental uncertainties can be complicated,” Carlyle added. “Agritask’s solutions could effectively bridge critical information gaps that sourcing managers face when forecasting yields.”
Based in Israel, Agritask promotes its technology as a scalable, “climate-smart” solution, drawing on 15 years of agricultural supply chain insights.
The pilot is being conducted in partnership with Walmart Global Tech’s Sparkubate program, which fosters innovative startups. Depending on the pilot’s success, Walmart may consider expanding the use of Agritask’s solutions and insights for a second season, as mentioned in their press release.
This collaboration with Agritask is part of Walmart’s broader strategy to integrate technology into its supply chain operations. Previous initiatives have included a 3D weaving technology pilot in collaboration with fashion company Unspun, and a carbon capture pilot with Rubi Laboratories.
Maria Sanchez completed her Bachelor’s degree in Plant Sciences from the University of California, Davis, in the USA. Her studies focused on plant genetics and biotechnology, with an emphasis on developing disease-resistant crop varieties. Maria has contributed to several research projects aimed at improving crop resilience to climate change and is now pursuing her Master’s degree in Plant Breeding.