Food processing presentation for bsc agriculture hons
Supra Sensor NSF Final Presentation
1. NO3-
Macronutrient sensors
enabling precision
agriculture
Darren Johnson Calden Carroll Bruce Branchaud
Contact Counter: 103 Principal Investigator Entrepreneurial Lead Mentor
Group 6
2. Nitrate Monitoring
Tiling or
vaporization
Fertilized zone
(3-12 inches)
Drivers:
• Feed 7 billion people
Groundwater seepage
• Double production by 2050
• Decrease environmental damage
Scientific American, Nov 2011
3. What’s Being Done?
• All farmers do soil sampling and lab analysis
– 1-2 week turn around
• Fertilized through irrigation: “fertigation”
• U.S. average lost N: 30% of applied
*Real-time soil moisture
monitoring increased yields =
$43-$81/acre with 25%
reduction in irrigation frequency
4. The Ecosystem
Gov’t
subsidies Water
systems
Planting/tilling/harvest
Farmers Heavy
equipment
Hungry
folks or Seed
cars banks,
Ag-Bio
$$
Current Generation
5. IT The Ecosystem
Gov’t
subsidies Water
systems
Planting/tilling/harvest
Farmers Heavy
equipment
Hungry
folks or Seed
cars banks,
Ag-Bio
Regulatory
fees $$
Next Generation
6. IT The Ecosystem
Gov’t
subsidies Water
systems
Nutrient
management
Planting/tilling/harvest
Farmers Heavy
equipment
Hungry
folks or Seed
cars banks,
Ag-Bio
Regulatory
fees $$
Mitigate fines
11. Research!
Hermiston
Growers Riverpoint Farms
Blue River
12. Our First Experiment
• Hypothesis: Science shows that precision
agriculture increases yields/profits. Farmers
care.
Hesitant “yes”; restricted to large farms, precision
farms or low cost to small farmers
13. Our Delineation By Automation
Automation
Yield over small savings Small savings over yield
Garden 100 acres 1000 acres 10,000 acres
15. Nitrate Market: High-tech Farms
SAM: $1.5B/yr
TAM: $6 B/yr Assumptions: Target Market: $50-75M/yr
>100K systems 25K pivots w/ Assumptions: 3-5% licensing
worldwide 1 sensor/acre Recurring consumable costs
(125 sensors/pivot) would add to revenue
This seemed small….
16. Experiment 2
• Hypothesis: Both large, precision farms and
small, high-value farms would benefit from
macronutrient management.
– False. Keywords: biodynamics, economy of scale
18. Experiment 2
• Hypothesis: Both large, precision farms and
small, high-value farms would benefit from
macronutrient management.
– False. Keywords: biodynamics, economy of scale
• True! Blueberry farms pay way, way more for
fertilizer than do corn farms.
– $6.50/acre suddenly becomes >$24/acre
19. Our Delineation by Size and Automation
Automation
Yield AND savings Small savings over yield
Garden 100 acres 1000 acres 10,000 acres
21. What We Learned
• Hypothesis: Farmers buy equipment to
improve efficiency and manage farm activities
– Farmers don’t buy things.
• Why are the successful companies service-
oriented?
– It competes with an upfront cost of only 100s of
dollars.
22. Our Delineation by Management Practice
Automation
Yield AND savings Small savings over yield
Garden 100 acres 1000 acres 10,000 acres
Small, high-value = invest time Large, automated = need
in management assistance in management
23. New (Confusing) Model: Service Provider
Product
Money
OEM Nutrient
Data
Large farm
Us
Small farm
USDA/EPA Licensing/sales
24. New (Confusing) Model: Service Provider
Product
Money
OEM Nutrient
Data
Large farm
Product
Us
Small farm Service
USDA/EPA Licensing/sales
25. SupraSensor Technologies Iteration: 8
Key Key Value Customer Customer
Partners Activities Propositions Relationships Segments
• Agricultural • Design & • Improve • Exclusive or
technology development profits through • High-density,
semi-exclusive
distributors • Manufacture resource high value
devices leasing
optimization crop farmers
• Data analysis agreements
• Engineering • Service
• Facilitate • Large row crop
partners incentives • Lower contracts farmers
operating
• Process Key Resources costs Channels • Wastewater
chemistry • Composition of • OEM equipment treatment
matter • Lower DEQ manufacturers companies
• Sensor device protection costs and
manufacturers associated • Direct sales
• Relationships penalties
• Extension
• Extension with regulatory Services
agents agencies
Cost Structures Revenue Streams
• Manufacturing of sensor components • Patent royalties
(physical device and membrane) • Leasing and installation contracts
• Assembly of sensor devices • Regulatory incentives
• Licensing of other sensor technology
26. Macronutrient Solution Market
SAM: $4.5B/yr
TAM: $79 B/yr All direct nitrate fertigated Target Market: $2.1B/yr
US Ag data crops Farms >150 acres
Assumptions: (40% of irrigated US farmland)
NOT in nitrate capped
zones
27. Extension Agents: Key Partners for Growth
Who? County agricultural resource officers (USDA)
Why? Overwhelmingly positive response from agents
Also, they act as marketers and advocates.
Cost? With agents, nothing.
Barriers? Exclusivity in community, tech adoption fears (we
need test beds)
28. Extension Agents: Key Partners for Growth
Who? County agricultural resource officers (USDA)
Why? Overwhelmingly positive response from agents
Also, they act as marketers and advocates.
Cost? With agents, nothing.
Barriers? Exclusivity in community, tech adoption fears (we
need test beds)
29. Pivot Timeline
• Automated HUGE farms and biotech
Product – Gillette model
• Automated farms and high value farms
– Tractor model
• Farmers don’t buy things.
• DEQ regulators and USDA incentives
Service – ESCO model
– Farmers aren’t fans of regulators
30. SupraSensor Technologies Iteration: 9
Key Key Value Customer Customer
Partners Activities Propositions Relationships Segments
• Design & • Improve • Exclusive or
• Engineering development profits through • High-density,
semi-exclusive
partners • Manufacture resource high value
devices leasing
optimization crop farmers
• Data analysis agreements
• Sensor device • Service
• Facilitate • Large row crop
manufacturers incentives • Lower contracts farmers
operating
• Extension Key Resources costs Channels • Wastewater
agents • Composition of • OEM equipment treatment
matter • Lower DEQ manufacturers companies
protection costs and
associated • Direct sales
• Relationships penalties
• Extension
with regulatory Services
agencies
Cost Structures Revenue Streams
• Manufacturing of sensor components • Patent royalties
(physical device and membrane) • Leasing and installation contracts
• Assembly of sensor devices • Regulatory incentives
• Licensing of other sensor technology
31. Economics of TSP Operation
Incentives: Best case scenario $45.89/acre
Worst case: $9.65/acre or state dependent 25% cost coverage
Install sensors, provide service
400 acres, 4 soil
Us
Pay for 2-3 year contract service monthly types: 8 sensors
Small farm
$3860 for 400 acre Average $10.40 in N-
nutrient management fertilizer lost to
groundwater per acre
$1K/sensor less
incentive = $4140 to USDA/EPA
recover in contract
32. Economics of TSP Operation
Incentives: Best case scenario $45.89/acre
Worst case: $9.65/acre or state dependent 25% cost coverage
Install sensors, provide service
400 acres, 4 soil
Us
Pay for 2-3 year contract service monthly types: 8 sensors
Small farm
Onion Case Study (44K acres):
$3860 for 400 acre Cost: DAP - $700/ton + $25/a
nutrient management Rate: 280lb/a for 400a farm
$1K/sensor less = $39K
incentive = $4140 to USDA/EPA
recover in contract 30% Improvement: $13K saved
Charge: $6K/season
= $660K/yr contract revenue
33. First: To Do
- Finalize MOU with earlyvangelist, develop robust prototypes
Then:
- Build county extension agent relationships
- Use federal incentives to expand to new farms
- Extend data to new agents
34.
35. SupraSensor Technologies Split: Agriculture Iteration: 2
Key Key Value Customer Customer
Partners Activities Propositions Relationships Segments
• Agricultural • Design & • Improve yield • Exclusive or • Distributors of
technology development through semi-exclusive large-scale,
distributors resource licensing high-tech
• Manufacture optimization agreements agricultural
• Electronic devices with equipment
device • Lower runoff distributors
manufacturers and associated
Key Resources costs Channels • Electronic
• Engineering • OEM device
• Engineering
partners
partners • Automation distributors of manufacturers
Real-time devices
• Process monitoring • Catalog sales
• Composition of
chemistry and remote of sensor
matter
protection management molecules via
manufacturers
Cost Structures Revenue Streams
• Manufacturing of sensor components • Patent royalties
(physical device and membrane) • 1x sales of sensor devices
• Assembly of sensor devices • Recurring sales of disposable sensor
membrane components
36. SupraSensor Technologies Split: Agriculture Iteration: 3
Key Key Value Customer Customer
Partners Activities Propositions Relationships Segments
• Agricultural • Design & • Improve yield • Exclusive or • Distributors of
technology development profits through semi-exclusive large-scale,
distributors resource licensing high-tech
• Manufacture optimization agreements agricultural
• Engineering devices with equipment
partners • Lower runoff distributors
and associated
• Process Key Resources costs Channels • Electronic
chemistry • Composition of • OEM device
matter • Real-time equipment manufacturers
• Electronic protection monitoring • Catalog sales
device and remote of sensor
manufacturers management molecules via
manufacturers
Cost Structures Revenue Streams
• Manufacturing of sensor components • Patent royalties
(physical device and membrane) • 1x sales of sensor devices
• Assembly of sensor devices • Recurring sales of disposable sensor
membrane components
37. SupraSensor Technologies Split: Agriculture Iteration: 4
Key Key Value Customer Customer
Partners Activities Propositions Relationships Segments
• Agricultural • Design & • Improve • Exclusive or • Distributors
technology development profits through semi-exclusive of large-scale,
distributors resource licensing high-tech
• Manufacture optimization agreements agricultural
• Engineering devices equipment
partners • Lower runoff
and associated
• Process Key Resources costs Channels • High-density,
chemistry • Composition of • OEM high value
matter • Real-time equipment crop farmers
• Electronic protection monitoring manufacturers
Sensor device and remote • Piggyback on • Water QA
manufacturers management existing sensor facilities?
companies
Cost Structures Revenue Streams
• Manufacturing of sensor components • Patent royalties
(physical device and membrane) • 1x sales of sensor devices
• Assembly of sensor devices • Recurring sales of disposable sensor
• Licensing of other sensor technology membrane components
38. SupraSensor Technologies Split: Agriculture Iteration: 5
Key Key Value Customer Customer
Partners Activities Propositions Relationships Segments
• Agricultural • Design & • Improve • Exclusive or • Distributors
technology development profits through semi-exclusive of large-scale,
distributors resource licensing high-tech
• Manufacture optimization agreements agricultural
• Engineering devices equipment
partners • Lower runoff
and associated
• Process Key Resources costs Channels • High-density,
chemistry • Composition of • OEM high value
matter • Real-time equipment crop farmers
• Sensor device protection monitoring manufacturers
manufacturers and remote • Piggyback on • Water QA
management existing sensor facilities?
• Regulatory companies
agencies
Cost Structures Revenue Streams
• Manufacturing of sensor components • Patent royalties
(physical device and membrane) • 1x sales of sensor devices
• Assembly of sensor devices • Recurring sales of disposable sensor
• Licensing of other sensor technology membrane components
39. SupraSensor Technologies Iteration: 6
Key Key Value Customer Customer
Partners Activities Propositions Relationships Segments
• Agricultural • Design & • Improve • Exclusive or • Distributors
technology development profits through semi-exclusive of large-scale,
distributors resource licensing high-tech
• Manufacture optimization agreements agricultural
• Engineering devices equipment
partners • Data mining • Lower runoff
costs and
• Process Key Resources associated Channels • High-density,
chemistry • Composition of hassle • OEM high value
matter equipment crop farmers
• Sensor device protection manufacturers
manufacturers • Piggyback on
existing sensor
• Regulatory companies
agencies
Cost Structures Revenue Streams
• Manufacturing of sensor components • Patent royalties
(physical device and membrane) • 1x sales of sensor devices
• Assembly of sensor devices • Recurring sales of disposable sensor
• Licensing of other sensor technology membrane components
40. SupraSensor Technologies Iteration: 7
Key Key Value Customer Customer
Partners Activities Propositions Relationships Segments
• Agricultural • Design & • Improve • Exclusive or • Distributors of
technology development profits through large-scale,
semi-exclusive
distributors • Manufacture resource high-tech
devices licensing
optimization agricultural
• Data mining leasing equipment
• Engineering agreements
• Facilitate
partners incentives • Lower
• High-density,
operating
high value
• Process Key Resources costs Channels crop farmers
chemistry • Composition of • OEM equipment
matter • Lower DEQ manufacturers • Large row crop
• Sensor device protection costs and • Licensing to farmers
manufacturers associated existing sensor
companies
• Relationships hassle • Ag wastewater
• Regulatory with regulatory treatment
agencies agencies companies
Cost Structures Revenue Streams
• Manufacturing of sensor components • Patent royalties
(physical device and membrane) • 1x sales of sensor devices
• Assembly of sensor devices • Recurring sales of disposable sensor
• Licensing of other sensor technology membrane components
• Leasing and installation contracts
41. SupraSensor Technologies Iteration: 8
Key Key Value Customer Customer
Partners Activities Propositions Relationships Segments
• Agricultural • Design & • Improve • Exclusive or
technology development profits through • High-density,
semi-exclusive
distributors • Manufacture resource high value
devices leasing
optimization crop farmers
• Data analysis agreements
• Engineering • Service
• Facilitate • Large row crop
partners incentives • Lower contracts farmers
operating
• Process Key Resources costs Channels • Wastewater
chemistry • Composition of • OEM equipment treatment
matter • Lower DEQ manufacturers companies
• Sensor device protection costs and
manufacturers associated • Direct sales
• Relationships penalties
• Extension with regulatory
agents agencies
Cost Structures Revenue Streams
• Manufacturing of sensor components • Patent royalties
(physical device and membrane) • Leasing and installation contracts
• Assembly of sensor devices • Regulatory incentives
• Licensing of other sensor technology
42. SupraSensor Technologies Iteration: 9
Key Key Value Customer Customer
Partners Activities Propositions Relationships Segments
• Agricultural • Design & • Improve • Exclusive or
technology development profits through • High-density,
semi-exclusive
distributors • Manufacture resource high value
devices leasing
optimization crop farmers
• Data analysis agreements
• Engineering • Service
• Facilitate • Large row crop
partners incentives • Lower contracts farmers
operating
• Process Key Resources costs Channels • Wastewater
chemistry • Composition of • OEM equipment treatment
matter • Lower DEQ manufacturers companies
• Sensor device protection costs and
manufacturers associated • Direct sales
• Relationships penalties
• Extension
• Extension with regulatory Services
agents agencies
Cost Structures Revenue Streams
• Manufacturing of sensor components • Patent royalties
(physical device and membrane) • Leasing and installation contracts
• Assembly of sensor devices • Regulatory incentives
• Licensing of other sensor technology