TL;DR:
- The food industry in the European Union and Spain faces challenges in terms of innovation and regeneration.
- Artificial intelligence (AI) in the food industry addresses these challenges and provides solutions.
- AI ensures food safety and quality through monitoring systems and risk analysis.
- It optimizes the food supply chain by enhancing efficiency, profitability, and customer experience.
- AI technology reduces food waste and improves accessibility to food for the general population.
- Dynamic pricing algorithms help mitigate rising prices and promote sustainability.
Main AI News:
The food industry plays a vital role in the European Union, accounting for 14.2% of production and surpassing 1,093 billion euros in value. In Spain, it stands as the leading manufacturing branch within the industrial sector, generating a turnover of 126,354.1 M€, according to the Annual Report of the Spanish Food Industry 2021-2022 from the Ministry of Agriculture, Fisheries, and Food. This industry represents 25.4% of the manufacturing sector and employs 22.5% of the Spanish workforce. With 30,260 companies contributing to the industry, it comprises 15.7% of the country’s entire manufacturing sector, as per the latest data collected by the INE’s Central Business Directory.
Despite its significant presence in the country’s productive fabric, the food industry faces critical challenges that hinder its ability to innovate and regenerate. However, these obstacles can be overcome through the utilization of artificial intelligence (AI) solutions specifically designed for the food industry.
One of the primary areas where AI proves beneficial is ensuring food safety and quality. The Food and Agriculture Organisation of the United Nations (FAO) has long emphasized the importance of food security, particularly in light of the ongoing pandemic. In their latest report, ‘The State of Food Security and Nutrition in the World 2021,’ it was revealed that the situation worsened, with approximately 2.37 billion people, about one-third of the world’s population, unable to access safe food in 2020—a staggering increase of 320 million from the previous year.
AI technology plays a crucial role in promoting food safety by reducing the risk of contamination and unhealthy conditions. Monitoring systems equipped with AI can identify and analyze production patterns, promptly alerting producers to any detected issues. These systems also assess risks and critical points in the production process while combating consumer health fraud.
Another pressing challenge faced by the food industry is supply shortages caused by various factors, such as the ongoing Covid-19 pandemic, the war in Ukraine, and the impact of climate change. To address this, AI can enhance the efficiency and profitability of the food supply chain at every stage of production. By employing AI-driven demand forecasting and optimizing transport routes through algorithms, fuel costs can be reduced. Furthermore, intelligent real-time inventory management streamlines warehousing, thus reducing expenses and ensuring food availability, ultimately enhancing the overall customer experience.
The issue of food waste also requires urgent attention, as approximately 1.7 billion tonnes of food are wasted globally each year, according to FAO data. In the European Union alone, 57 million tonnes of food were wasted in 2020 across processing, distribution, and catering. Although Spain demonstrates relatively lower levels of food wastage compared to other countries, it still discards a significant 90 kilograms of food per person annually.
Fortunately, AI technology within the food industry not only combats food waste but also facilitates increased accessibility to food for the general population. Intelligent machines equipped with AI can meticulously track inventory, collecting images that are transformed into valuable data. By incorporating pre-defined parameters such as weather conditions, food freshness, and demand predictions, algorithms can generate a precise estimation of the required amount of food, minimizing waste effectively.
Rising prices pose yet another challenge, exacerbated by the war in Ukraine, which has disrupted the global order of food trade, production, and consumption. The World Bank’s report, ‘Commodity Markets Outlook,’ warns that prices will continue to rise until the end of 2024, amplifying issues such as food insecurity, unhealthy conditions, and inflation. This predicament heightens the risks of extreme poverty, hunger, and malnutrition, thereby threatening global population development.
AI offers a solution to this predicament through the implementation of algorithms designed for the dynamic pricing of perishable goods. By precisely matching prices to expiry dates, products with shorter shelf lives can be offered at discounted rates. This process requires advanced sensor systems capable of learning to detect product conditions, predict spoilage and quality, and subsequently determine an appropriate price.
Conclusion:
The integration of artificial intelligence in the food industry holds significant implications for the market. By leveraging AI solutions, companies can enhance food safety, optimize supply chains, reduce waste, and effectively manage rising prices. This not only improves operational efficiency and profitability but also enables companies to meet consumer demands for quality, safety, and sustainability. Embracing AI-driven technologies will be crucial for food industry players to stay competitive in a rapidly evolving market and contribute to a more resilient and efficient food ecosystem.
