Ioan Popa, TRANSAVIA SA: The industry is expected to start leveraging artificial intelligence, likely becoming a catalyst for boosting efficiency and innovation

In the insightful “Industries to watch in 2024” segment of Business Review Magazine, Ioan Popa of TRANSAVIA SA dissects the multifaceted challenges and opportunities facing the agri-food sector in the year ahead. Popa candidly speaks about the impact of geopolitical conflicts, inflationary pressures, and the imperative of digital transformation in agriculture. Highlighting TRANSAVIA’s commitment to innovation and sustainability, Popa elaborates on the integration of advanced technologies and digital controls across production processes, underscoring the importance of adaptability and efficiency in ensuring food security and maintaining competitive edge amidst ongoing uncertainties.

What are the main opportunities and challenges for your industry/sector in 2024?

The agri-food sector, much like the entire economy, will face numerous challenges stemming from the prolonged geo-political conflicts already underway, continued inflationary and logistical pressures, and shifts in consumer behavior. We also see a complex election year, marked by heightened social dynamics, akin to the significant protests from transporters and farmers. Most likely, there will be extreme weather phenomena caused by climate change, leading to fluctuations in agricultural production and more challenging management of natural resources. The removal of fiscal facilities for the agricultural sector, which has already led to a fall in nationwide real and nominal wages, adds additional pressure on entrepreneurs in the food industry who were already grappling with significant human resource challenges anyway. There is no news that the workforce increasingly prefers other industries with perceived easier work conditions. These are just a few of the easily anticipated challenges. Additionally, 2024 will undoubtedly bring unforeseen and complex risks. On the flip side, resilient companies with resources and vision can innovate to better respond to consumer demands and environmental challenges. They can capitalize on their products in new markets through business expansion and consumer segment diversification. Given the strength of our company, our managerial vision, and long-term strategy, TRANSAVIA is poised to navigate successfully through the challenges of this year. We will seize opportunities as they arise, continuing the trend of excellent results both domestically and in export markets.

How does the agricultural sector influence the transition to a more digitized agriculture?

Any technology, if used wisely, brings benefits. With the right investments and the adoption of relevant digital technologies, the agri-food sector becomes more efficient and sustainable. The TRANSAVIA team initiated this transition many years ago by implementing advanced technologies, automations, and sensors. We significantly enhance precision and efficiency across the entire production chain, from grain to fork.

Our facilities are equipped with state-of-the-art technology that controls optimal conditions for ventilation, feeding, watering, cooling, and humidification (during warm periods) and heating (during cold periods). Temperature, humidity, and gas sensors installed in our facilities enable strict, automated, and continuous control of microclimate conditions, as well as specific adjustments based on the age and needs of the chicks. This constant flow of data allows us to quickly make decisions for the proper management of animal welfare and resource consumption efficiency.

We employ automation and digital control in processing stages, both in our slaughterhouses and chicken meat processing factory, ensuring superior product quality due to strict adherence to all food safety standards. Additionally, we achieve higher productivity and increased production process efficiency, significantly reducing resource, energy, and time consumption. This optimization lowers operational costs and, furthermore, reduces our environmental footprint.

The industry is expected to start leveraging artificial intelligence, likely becoming a catalyst for boosting efficiency and innovation. Like any tool, this technology must be adopted wisely to minimize cybersecurity and/or reputation risks.

How do you think agri-food product prices will evolve amidst geopolitical uncertainty and persistently high inflation?

The factors that triggered the rise in food prices are not only still putting pressure on production, but even seem likely to increase as a result of deteriorating geo-political and macro-economic conditions. The new fiscal measures will, among other things, increase labour costs, which, along with other factors such as inflation, the cost of energy, fertilisers, fuel, etc., will influence the cost of converting raw materials, leading naturally to a prospect that price developments will not be able to stagnate.