Why digital transformation is crucial for food processors and packagers

Digital transformation means the use of digital technologies in changing means of doing business.

Digital technologies are electronics tools or automated systems that generate, store and process data.

These technologies develop so quickly that a “second wave” of digital transformation is currently sweeping through industries, bringing robots, big data, artificial intelligence, etc.

They are transformational as they can change business processes, agility, customer relationships and immediate value to processors and pack houses’ production efficiency.

The quality of products is of most interest to food processors because this is where their greatest operational challenges are.

They also face headaches caused by significant quality variations from one batch of infeed product to another, there can also be variations within the same batch.

Manual sampling methods can misread true batch quality because they only examine a tiny part of the product flow, therefore, sometimes, missing imperfections and defects clustered in hotspots.

Speaking to the The Citizen, technology experts underscored significance of digital transformation to food processing and pack houses, opportunities and challenges as well as recommendations aimed at streamlining the revolution.

A JBRI director, Ms Hadija Jabiri said digital transformation in food processing and packaging was important because of the sector’s contribution in the country’s economy and job creation.

She said agriculture employ the majority of Tanzanians, adding that digital transformation will significantly bring revolution to the country’s economy.

She said, however, that technology uptake in Tanzania remains at the minimal level compared to neighbouring and developed countries, therefore bringing revolution challenges to the sector.

“The country should focus on technology investment in the value chain in order to benefit in available opportunities because it is the area which is interested by the youth as compared to engagement in primary agricultural production,” she said over the phone.

“Digital transformation in the two areas are important in the job creation and accelerating the sector’s development. Once people are assured of reliable technology they bring development to the sector,” she added.

According to her, the assurance enables citizens to do things that provide direct and anticipated outcome, noting that the use of technology in the value addition will provide the country with better solutions.

Her views were echoed by Paul Schreilechner from Biotan Group Limited who said digital transformation provides room for traceability in case there are market challenges.

He said digital transformation demands documentation and transparency, which are the avenue for problem resolution due to stakeholders’ connectivity in the digital system.

Mr Schreilechner who has invested in production, processing, packaging and export of organic cashews said over 1,000 farmers have been technologically connected, enabling the company to get farmer’s details.

“We are able to know where the farms are located, the number of cashew trees and daily practices taking place in the farm through the Global Positioning System (GPS) connections,” he said.

“Collected data are important when there is need to trace the origin of certain reported problems in the value chain. Through these data, traceability could be done downwards to individual farmers,” he added.

According to him, claims could include sampling done in containers before export to establish conformity with the International Organization for Standardization (ISO).

“Traceability through collected data will enable us to establish the origin of problems from lot numbers to farms where the consignment belong,” he said.

Furthermore, he said traceability makes the produce competitive in the market, recommending that the product’s competitiveness in the digital era.

Opportunities, challenges

Ms Jabiri said poor infrastructure development in the country hinders citizens’ seizure of available opportunities in the agriculture value chain.

She said there are huge value addition opportunities in rural areas for farmers to engage in large scale farming and trading after incorporating technology in food processing and packaging.

“However, those areas are facing serious challenges of internet connectivity. Therefore, infrastructure reasons remain an issue of concern,” she said.

According to her, digital penetration and their subsequent uptake in the sector remains low as compared to neighbouring countries such as Kenya and developed countries where the uptake is extremely high.

Furthermore, she said the Bwana Shamba App hardly helped Tanzania farmers and that those coming up with innovations face serious challenges in the area of commercialization.

Mr Schreilechner said internet costs are too high in the country coupled with low speed and that availability of technicians such as programmers or technician remains a huge challenge.

Furthermore, he said finding software developers from colleges and universities was another challenge, noting that investors are forced to train people intended to become professionals in their firms.

What should be done?

Ms Jabiri suggested that the government should create enabling environment for investors to bring in technology in the agriculture value addition that are in line with availability of raw materials.

“Enabling environment include policies, tax measures as well as improving budgetary allocations that will attract both domestic and foreign investment in the area,” she said.

She added that innovators should actively learn from neighbours and what was happening globally on technology advancement and that development partners should focus on the area of technology instead of primary agricultural production.

Mr Schreilechner said education and practical training should be provided to the youth, saying the youngsters are ready to receive instructions.

“Strategies should be put in place to build internet infrastructures, reduce costs and attract more people whose use will increase government’s revenue collections,” he said.

“Tanzania has a huge strength due to the presence of the youth who are ready to make better use of technology, the area that attract huge investment from different stakeholders across the world,” he added.

What the government says

The director general of the Tanzania Commission for Science and Technology (Costech), Dr Amos Nungu said the government has been supporting different institutions in transforming their areas of technology.

He said, for instance, the Tanzania Industrial Research and Development Organisation (Tirdo) was provided with Sh400 million for building a certified agro-processing laboratory.

“The intention was to use the infrastructure in assisting Tanzanians to get international accreditation and packaging facilities for agricultural produce to be exported to foreign markets,” he said.

Furthermore, he said a similar amount was dished to the Tanzania Agriculture Research Institute (Tari) at the Makutopora Centre in order to strengthen laboratory and packaging services to grapes farmers exporting wine abroad.

According to him, Costech was also working closely with sectorial ministries including the ministry of Agriculture in ensuring innovated technologies are used to increase efficiency in production, processing and packaging of agriculture produce.

Food processing, packaging projects

Data from Costech shows some projects whose start-ups have received funding include; cooking oil mini refinery plant; sweet potato processing equipment; cassava peeler and processor; spices bottling equipment; maize processor and grinding machine as well as sunflower seeds processing machine.

Others are peanut processors; multi-crop thresher, development and commercialization of sunflower oil mini-refinery technology, development and commercialization of a suitable avocado oil mini-extraction plant and a plant for improving yield and quality of meat from slaughtered cattle.