Erik Guttulsröd

Sustainable productivity growth in management

With its concept of sustainable productivity growth, the DLG has formulated a guiding principle that consistently integrates environmental, economic and social objectives. What does this approach mean in concrete terms for day-to-day farm operations? What role do technological innovations, digitalisation and management expertise play? 

In this interview, Erik Guttulsröd, Head of Farm Management at the DLG’s Centre for Agriculture & Food, explains the technical opportunities opened up by the mission statement on sustainable productivity growth, where the greatest levers for farms currently lie, and what his vision of a future-proof, high-performing and, at the same time, sustainable agricultural and food industry looks like.

DLG Newsroom: What technical prospects does the DLG’s vision of sustainable productivity growth open up for farm management in agriculture?

Erik Guttulsröd: For me, sustainable productivity growth is first and foremost a modern management approach. It consistently combines ecological objectives with economic performance. From a farm management perspective, this means one thing above all: optimisation – across the entire value chain of a farm. Another important aspect is the professionalisation of management. Sustainable productivity growth does not necessarily mean introducing new technologies immediately. Rather, farms should first analyse their own processes, decision-making procedures and data foundations. In many cases, there are still untapped reserves to be found there – these vary from farm to farm, but are almost always present.

Is it all a question of management competence or can technology also help?

At the same time, this approach opens up the possibility of going beyond the mere self-optimisation of the individual farm manager. Digitalisation, smart farming, robotics and, increasingly, artificial intelligence can help farm managers gain a better overview of complex interrelationships. Time-consuming data collection and calculation processes can be automated, information is available in real time, and decisions can be made more quickly and on a sounder basis. This strengthens both the environmental and economic aspects of the farms. 

Erik Guttulsröd is Head of Farm Management at the DLG Centre for Agriculture & Food. Photo: DLG

Innovation, digitalisation and system integration

Which of these technological innovations are particularly groundbreaking for farm management?

In my view, technologies that simultaneously improve resource use and productivity are particularly groundbreaking. Examples of this also include precise application techniques such as spot spraying or camera-assisted plant protection methods, where inputs are no longer applied across the entire area but in a targeted manner. The same applies to systems for animal monitoring in the barn, for instance using sound or image recognition for early disease detection. This allows diseases to be identified earlier, treatments to be carried out in a more targeted manner and losses in performance to be avoided – a clear benefit for animal welfare, the environment and economic efficiency. Innovations in the field of artificial intelligence also offer enormous potential for sustainable productivity gains, as they can support administrative processes and management decisions. 

Good management requires a comprehensive calculation of both market-based and sustainable KPIs. Photo: Gert Altmann on Pixabay

How could these barriers be overcome?

If we succeed in integrating these systems more closely, significant productivity gains can be realised – not least through the reduction of bureaucratic burdens. Tasks such as documentation, verification or inspections could be made significantly more efficient. This would provide a noticeable relief for farms whilst simultaneously improving the quality of data for sustainability assessments. A unified data space – with optimal data protection, transparent data management mechanisms and barrier-free interfaces between different documentation and management systems – could provide a solution here. 

Technology-friendly approach and the future of agriculture 

A key element of the vision for sustainable productivity growth is the call for a society-wide openness to technology. For which innovations is this particularly crucial?

In my view, openness to technology in agriculture in general is a key prerequisite for even being able to address the challenges of climate change, scarce resources and high societal expectations. This is particularly evident when it comes to breeding and genetics. New breeding techniques such as CRISPR-Cas open up the possibility of responding much more quickly to changing climatic conditions – for example, in terms of drought resistance or heat tolerance.

Given that climate change is already a reality, we can hardly afford to wait ten or fifteen years for traditional breeding advances. At the same time, it is clear that these technologies require an objective, transparent and scientifically sound public debate. An open approach to technology does not mean ignoring risks, but rather weighing up opportunities and risks objectively and shaping them responsibly.

Barriers to the widespread adoption of  technology: Data is entered multiple times, interfaces are lacking, and digital processes often come to a halt at system boundaries. 

Erik Guttulsröd

What does innovation-friendliness look like in practice when it comes to farm management?

The same applies to artificial intelligence and data-driven systems used in farm management tools. Issues such as data protection, data sovereignty and acceptance play a major role here. At the same time, we use digital services as a matter of course in many areas of life. These contradictions must be addressed openly. Education, clear-cut practical examples and credible storytelling are crucial for building trust and reducing fears. 

AI has enormous theoretical potential to simplify management processes. Photo: Gert Altmann on Pixabay

What is your vision for a successfully established, sustainable increase in productivity?

My vision is of an agricultural sector that maintains – and ideally even increases – its production output whilst using fewer resources. In such a sector, animals are healthier, yields are more stable, and farms are economically resilient. Digital systems help farm managers make decisions continuously and on the basis of data, rather than only analysing what went well or badly in retrospect at the end of the year.

A well-managed dairy farm is a clear example of this: healthy, high-performing cows lead to higher milk yields, better feed conversion and an improved greenhouse gas balance. Fewer losses, fewer diseases and better use of available resources go hand in hand with animal welfare and climate protection.

There is often a perception in public debate that commercial enterprises – such as agricultural businesses – will not invest in resource conservation without regulation and requirements…

Farmers think in terms of generations and have an intrinsic motivation to preserve the foundations of their livelihoods. But it is true that, in order to accelerate the transformation in the areas of innovation and technology, external support from the political sphere and society is often also required. 

It is therefore crucial that sustainability achievements are valued more highly in future. We are already seeing the first steps in this direction – for example, through bonus schemes, differentiated milk price components or improved financing terms for proven climate achievements. If environmental improvements are also rewarded economically, this will significantly accelerate the transformation.

Sustainable productivity gains thus replace one-sided debates about sacrifice or reduction. They represent a shift towards a holistic understanding of ESG – that is, environmental, social and corporate governance – as a sound foundation for a sustainable agricultural and food industry. 

 

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