Technology is reshaping industries worldwide - and the agri-food sector is no exception. Foods Connected’s Helena Scott explores how the Northern Irish food industry can harness digitalisation and automation for enhanced efficiency and growth.
We are living in an era defined by technological innovation, which makes working in the agri-food sector very exciting. But different regions are approaching the advancements at varying speeds. So, as part of my MSc in Business for Agri-Food and Rural Enterprise from Queen’s University Belfast, I conducted a study, which asked a specific question: how can the Northern Irish agri-food industry fully leverage technologies to enhance efficiency and sustainability?
So, why Northern Ireland? Recent studies from the Department of Agriculture, Environment and Rural Affairs (DAERA) have revealed that agri-food processors in Northern Ireland are struggling to effectively manage their processes. Productivity has significantly declined, with the gross value added (GVA) to the UK economy falling 17% below the UK average.
In addition, the continued use of paper in the industry is slowing down progress and growth, often preventing accurate version control and valuable team collaboration. They are also less secure than a paperless approach, with an increased likelihood of data breaches and unauthorised access occurring due to human error.
Tech in agri-food - assessing the knowledge base
My study focused on how food processors in Northern Ireland are integrating automation and digital technologies into their operations. I assessed their existing knowledge and attitudes to the topic, as well as their current adoption techniques and behaviours.
The study maintained a qualitative approach. I gathered the data through a series of 1:1 interviews with food industry representatives in a variety of roles at varying expertise levels from a wide range of firms with different product offerings. I aimed to identify potential barriers to adoption, highlight opportunities for growth, and ultimately contribute to the sector's evolution in an increasingly digital world.
"I aimed to identify potential barriers to adoption, highlight opportunities for growth and ultimately contribute to the sector's evolution in an increasingly digital world."
My research was not just about technology, but also about empowering the industry to embrace change and enhance its resilience for the future.
A positive starting point
The overall findings promisingly highlighted that 80% of the firms interviewed were already implementing and using technology in business operations. They also had an awareness of the benefits and opportunities that technology adoption can bring in the food industry.
Participants cited "increased visibility", "ability to make informed decisions" and "time-saving capabilities" as key benefits of technology use.
"The overall findings of the study promisingly highlighted that 80% were already using technology"
However, the remaining 20% and non-adopters highlighted barriers hindering adoption of digitalisation and automation in the food manufacturing process, whereby issues such as "insufficient resources", "affordability" and "negative employee culture" served as significant barriers to conversations.
There was also found to be a significant gap in "innovation appetite". Some firms appeared to be more enterprising than others, seeking innovation as a higher priority.
But it is also important to note that there were a number of independent factors at play as to a firm’s ability to innovate. Significant investment was required as well as resource allocation to implement and maintain innovation across a firm.
"There was found to be a significant gap in 'innovation appetite'"
I also recognised that while digital transformation is needed to improve transparency, it is also dependent on rectifying negative pre-dispositions and business attitudes, increased adaptability of employees and culture alike and ensuring the technology adopted is the ‘best fit’ for the business.
By the end of the study, I was able to identify a number of recommendations for firms interested in adopting digital transformation:
1. Leverage government & industry initiatives
Processors in the NI food industry should endeavour to get involved in ongoing schemes, and take better advantage of government-led initiatives which provide resources, funding and support to improve productivity and efficiency.
For example, the Agri Food Investment Initiative launched by InvestNI provides funding to firms of up to £1 million (depending on business size) to aid with the purchase of computer software, machinery & equipment, and patents, licenses and trademarks.
2. Take a ‘top-down’ approach to knowledge sharing & networking
Employee resistance to change was noted as a substantial barrier to uptake and adoption of tech. Combatting this resistance to change needs to start with management. Senior management teams should host more frequent discussions and encourage a more positive outlook on technological innovation down the chain of command.
This will in turn promote a better company culture, and gain employee trust and enthusiasm in the movement.
3. Ongoing support and training for employees with better emphasis on lifelong learning
I found age and a lack of skills to be compounding factors in the likelihood of successful technology adoption, whereby more specialist training and support could be offered to encourage better uptake. In the Northern Irish Food Industry, there are ample opportunities for firms to promote lifelong learning to the workforce in this way, through events and memberships.
These events are held with the purpose of supporting firms in their technological transformations and can provide opportunity for laggard firms to learn from early adopters and industry leaders who have successfully implemented new technologies.
Notable industry players include McColgans Quality Foods, Dale Farm, Tayto Group, Deli Lites and White's Oats - all strong examples of how the Northern Irish food industry can revolutionise and adapt to current technologies.
These firms have stepped up production efficiency and currently capture metrics through the implementation of advanced automation systems and data analytics. This investment has allowed for more effective monitoring of production processes in real-time, with the ability to identify bottlenecks and optimise workflows.
My key takeaways
In terms of what this means for the wider agri-food sector in NI - embracing automation and digitalisation is not merely a trend; it is essential for ensuring long-term viability. Through promotion of adequate investment in the necessary infrastructure and training programmes, we can empower our food processors to navigate the complexities of modern production.
"Embracing automation and digitalisation is not merely a trend; it is essential for ensuring long-term viability."
The potential for improved productivity and cost-effectiveness is enormous, but achieving this requires a collaborative effort from industry stakeholders, government, and educational institutions.
Moreover, the benefits of digitalisation extend beyond operational efficiency. Enhanced data analytics can lead to better decision-making, greater transparency in supply chains, and improved traceability of food products — all critical factors in today’s market. By adopting these technologies, Northern Ireland’s food processors can position themselves as leaders in sustainable practices and meet the growing demand for responsibly sourced products.
In terms of exploring why the UK and US food sector remains conflicted about integrating supply chain transparency into its daily operations, my research draws parallels to the Foods Connected Whitepaper on Traceability: A Global Snapshot of the Food Industry’s Digital Evolution. This study examined the barriers that companies face in adopting traceability technologies, and assessed both firms’ perceived readiness and actual preparedness for such integration in the UK and US.
Interestingly, I found that while many businesses acknowledge the importance of transparency, but cite challenges like cost, complexity, and a lack of clear guidelines as significant obstacles. These insights highlight the urgent need for tailored support and resources to help the industry navigate these hurdles and embrace a more transparent supply chain.
Although a great deal of creative thinking goes into agile product lifecycle management, access to up-to-date analytics is key to your success. With Foods Connected, you gain access to award-winning software solutions that help you forecast market demand and evaluate supply chain impacts. Request a demo today, or contact us to discover how we can keep your food business agile in an ever-changing market.
