Impact of digital technologies on farm operational activities: A case study analysis between Germany and Finland

Abstract

Digitalization is a fundamental component of the European Commission's (EC) initiative to modernize agriculture, its associated activities, and rural areas within the European Union (EU). Advancements in digitalization, including robots, sensors, drones, global positioning systems (GPS), and online platforms, have created new activities, products, and services, significantly impacting farm operational activities. This study explores the potential future implications of digitalization in livestock farming in Baden-Württemberg (Germany) and North Savonia (Finland). The focus will be on examining how digital technologies transform livestock farming practices. The findings highlight the potential benefits of digitalization in improving animal welfare, efficiency, and sustainability, and addressing challenges in the livestock sector. Quantitative instruments were used to assess how implemented digital technologies impact farm activities. In addition, a structured questionnaire with specific questions was created and distributed online to farmers involved in livestock farming. Farmers in both countries reported that the use of digital technologies improved their working conditions, safety and health standards, decision-making processes, and product quality. Farmers in Finland and Germany had different opinions regarding the influence of digitalization on several aspects of farming. Finnish farmers noted a significant impact of digitalization on improving cooperation with other chain actors and access to new markets and financial resources, contrary to farmers in Germany. Digital adoption on farms has a significant impact beyond the farm since it influences decision-making and sustainability outcomes as the food chain becomes more vertically integrated.