06 Dec Harvesting Innovations: CNH’s Groundbreaking Approach to Sustainable Palm Oil
Snapshot
- CNH, the world’s second-largest farm machinery manufacturer, embarked on creating the world’s first automated oil palm harvester to address sustainability, labour, and efficiency challenges in the palm oil sector.
- In 2022, SAIL worked with CNH to refine the project’s Challenge Statement and connected the company with top innovators through the Sustainability Open Innovation Challenge (SOIC)
- The challenge attracted submissions from five global teams, with Sofien ultimately selected as the winning partner for their expertise in automation and agro-industrial machinery.
- SAIL remains a valuable partner in CNH’s innovation journey, facilitating collaboration and access to expertise for sustainable agricultural solutions, especially in the Asia-Pacific (APAC) region.
The Sustainability Imperative in Palm Oil Production
Palm oil is a major global agri-commodity, found in about 50% of all packaged products, ranging from pizza and donuts to chocolate and even deodorant. It is particularly vital for Southeast Asia, with Indonesia and Malaysia producing nearly 85% of the world’s palm oil.
However, harvesting this fruit poses significant challenges. It is labour-intensive, with costs for independent smallholders in Malaysia accounting for up to one-third of all expenses, and for estates, up to one-fifth. This significantly impacts profits.
Currently, harvesting relies heavily on manual labour and basic tools. Workers walk through plantations, scanning for harvestable oil palm fruit bunches and use pole-mounted knives to cut down the fruit bunches, which then fall and split open. Other workers gather the thorny bunches and loose fruits from the ground, loading them into sacks for transportation. This method puts workers at risk of musculoskeletal conditions and injuries, such as back and hand injuries.
Malaysia’s palm oil industry depends on low-cost migrant labour, primarily from Indonesia. This dependency is vulnerable to disruptions, such as geopolitical crises or pandemics, which can halt labour supply chains and leave plantations unharvested. For instance, the COVID-19 pandemic led to $2.4 billion in losses in Malaysia due to unharvested oil palm.
Environmental degradation is also a critical issue for the industry. According to the Food and Agricultural Organization of the United Nations (FAO), oil palm cultivation was responsible for 7% of global deforestation between 2000 and 2018. Producers often clear land for oil palm plantations through deforestation and forest fires. In 2023, over 267,900 hectares of forest were burned in Indonesia alone, a 30% increase from the previous year, despite government moratoriums. Additionally, the burning of peatlands, which are the largest natural store of carbon on land, releases substantial amounts of carbon dioxide and other greenhouse gases.
Despite these issues, palm oil is not inherently unsustainable. In fact, it uses up to 10 times less land per tonne of oil produced compared to alternatives like sunflower oil and requires less fertiliser and pesticides. With sustainable practices, palm oil could be one of the most resource-efficient oils to produce.
Addressing the challenges facing the palm oil industry requires innovation. Advances in automation, sustainable farming practices, and alternative harvesting technologies can reduce labour dependence, minimise environmental impacts, and enhance efficiency, contributing the industry’s long-term viability and global sustainability goals.
CNH: Driving Innovation in Agricultural Machinery
CNH, a leading global player in agricultural machinery and construction equipment company, recognised the potential of automation to address the palm oil industry’s sustainability challenges. As the world’s second-largest farm machinery manufacturer, CNH boasts globally renowned brands like Case IH and New Holland in agriculture, CASE and New Holland Construction in construction, as well as several regional and technology brands including Steyer, Raven, Flexi-Coil, Miller, Eurocomach, and Hemisphere. With a vast global footprint, comprising 42 manufacturing facilities and 49 research and development (R&D) centres worldwide, CNH is at the forefront of agricultural innovation.
“Large-scale palm oil farming can present social and environmental challenges, but it’s a crop that is very important globally. We aimed to find a solution that could make production efficient, sustainable, and safe,” said Mark Brinn, Managing Director for Southeast Asia and Japan at CNH.
CNH’s innovation strategy is anchored in its commitment to productivity and sustainability, emphasising partnerships and investments that drive forward-thinking and disruptive solutions in agriculture and construction. While strengthening its in-house innovation capabilities, CNH also actively seeks external collaborations to address business and sustainability challenges. This dual approach aligns with the principles of open innovation, which advocate for the strategic use of both internal and external knowledge to accelerate innovation and expand market opportunities. For CNH, this involves partnering with startups, researchers, and external experts to tackle key industry challenges.
Through its investment arm, CNH Ventures, the company strategically invests in early-stage startups specialising in alternative propulsion, artificial intelligence (AI), robotics, automation, and autonomy. This not only provides startups with capital but also leverages CNH’s extensive global network, technological resources, and market reach to accelerate their growth and development.
CNH Ventures exemplifies the company’s dedication to advancing its technology portfolio and enhancing customer productivity. Notable collaborations include Bennamann, which focuses on capturing and repurposing methane emissions into alternative fuel; Earth Optics, a leader in precise soil diagnostics; and Stout, which develops AI-powered smart implements for agriculture. Additionally, CNH has integrated advanced machine vision solutions from Augmenta and chemical-free weeding technology from Zasso into its product offerings. These investments and partnerships underscore CNH’s proactive approach to innovation while supporting its environmental, social, and governance (ESG) goals, driving transformation in the agriculture and construction sectors.
In line with its commitment to open innovation, CNH collaborates with the Singapore Agri-Food Innovation Lab (SAIL) as one of its two ‘International Innovation Partners’. This partnership aims to explore and identify cutting-edge solution providers, including startups, institutes of higher learning (IHLs), and research institutes, both within Singapore and globally.
“Our partnership with SAIL enhances CNH’s ability to source cutting-edge technologies and innovative solutions, furthering our efforts to tackle pressing agricultural challenges, such as those in the palm oil industry. SAIL’s network and expertise allow us to strengthen our innovation ecosystem, supporting our mission to sustainably advance the noble work of agricultural workers,” remarked Daniele Maggiolini, Managing Director at CNH Ventures.
Technical Hurdles in Developing the World’s First Automated Oil Palm Harvester
Developing the world’s first automated oil palm harvester was a bold endeavour that CNH undertook, recognising the transformative potential of automation in the palm oil industry. This effort aligned with CNH’s innovation strategy, which emphasises leveraging advanced technology to address complex agricultural challenges. The goal was to create a harvester that not only boosts operational efficiency but also promotes sustainability in a sector facing significant environmental and labour-related issues.
One of the foremost technical challenges was the accurate detection and classification of ripe oil palm fruit bunches. The harvester needed to be equipped with sophisticated image recognition systems capable of distinguishing ripe fruit from unripe ones, even in dense and variable plantation conditions. This required an exceptional ability to handle variations in lighting, weather, and the complex visual environment of the plantation.
Another critical technical hurdle was developing a reliable and effective harvesting mechanism. The harvester required a cutting system that could precisely detach fruit bunches without causing damage to the trees or the fruit itself. Designing a mechanism capable of reaching and harvesting bunches from various heights and angles while withstanding the harsh conditions of palm plantations presented a significant engineering challenge.
Navigation and mobility posed additional obstacles. The harvester needed to be able to traverse uneven, muddy terrain and navigate around obstacles autonomously. This involved integrating advanced GPS systems and sensors to enable precise and safe movement within the plantation. Ensuring that the harvester could operate efficiently across large areas for prolonged periods while maintaining stability and avoiding damage were essential for its success.
The technical challenges described above highlight why CNH opted for an open innovation approach. By collaborating with a diverse range of experts, startups, and research institutions, CNH aimed to harness multidisciplinary solutions essential for overcoming the complexities of developing an automated oil palm harvester.
Collaborating for Innovation: SAIL’s Role
In 2022, CNH enlisted the expertise of SAIL to advance its ambitious project. “We reached out to SAIL and Nanyang Technological University (NTU) due to their exceptional talent and expertise, which we believed were crucial in pioneering automation for the palm oil sector,” said Brinn.
SAIL played a pivotal role in refining CNH’s challenge by developing a comprehensive Challenge Statement. This involved collaborating with CNH’s internal experts to articulate the problem, define the value proposition for both the company and the palm oil industry, outline key technical requirements, and establish resource commitments. The result was a well-defined challenge designed to attract innovative solutions.
To elevate the Challenge Statement and generate global interest, SAIL identified the Sustainability Open Innovation Challenge (SOIC) 2022 as the ideal platform. Organised annually by Enterprise Singapore, SOIC is a prestigious forum for connecting corporates with top innovators and entrepreneurs worldwide. The challenge has a proven track record of attracting diverse submissions from startups and ensuring a broad spectrum of expertise. Additionally, through SOIC, Enterprise Singapore provides economic incentives to winners, further encouraging co-innovation between startups and large corporations.
CNH demonstrated its commitment by allocating substantial financial resources for prototyping and trialling the proposed solutions. The company also offered in-kind support, including project management and engineering resources from its India Technology Centre, which employs over 700 engineers and technical experts. Furthermore, CNH offered potential joint development support and equity investment for successful startups.
Once the opportunity was announced through SOIC 2022, SAIL extensively promoted it across its network of potential solution providers both within Singapore and internationally. Importantly, SAIL encouraged innovators from other industries to apply their technological expertise in new ways. For example, a startup specialising in autonomous mobility was inspired to submit a proposal, leveraging its core competencies in computer vision, autonomous navigation, and robotics.
SOIC 2022 generated significant interest, attracting promising submissions from five startup teams based in Singapore, Japan, Malaysia, and Brazil. This diverse array of proposals highlighted the potential for innovative solutions to tackle the challenge of automating oil palm harvesting.
From Challenge to Solution
SAIL played a crucial role in supporting CNH throughout the evaluation of the submissions. The assessment criteria for SOIC were meticulously crafted to include technical feasibility, the novelty of the proposed solutions, business viability, and the capacity and expertise of the teams to execute the project. CNH’s experts participated in pitches and clarificatory meetings with the startups to ensure a thorough understanding of each proposal.
From the five submissions, CNH shortlisted two teams before selecting Sofien to co-develop the oil palm harvester. Sofien, a pioneering Brazilian startup in agro-industrial machinery, stood out with its extensive expertise in hydraulic and pneumatic automation, physical prototyping, and field experimentation. Notably, Sofien had previously developed a mechanical eucalyptus pruning arm with omnidirectional movement, which significantly improved efficiency and safety—a key advantage for the oil palm harvester project. Sofien’s proven ability to integrate advanced automation into practical machinery was a decisive factor in CNH’s choice to collaborate with them for this innovative development.
“Our experience with the mechanical pruning arm for eucalyptus, which significantly improved efficiency and safety, directly informed our approach to this oil palm harvester. The integration of advanced automation and precision engineering aimed to ensure both operational excellence and worker safety,” said Jorge Neves, Executive Director at Sofien. Sofien’s proposed prototype, which resembled a conventional tractor, incorporated a hydraulic mechanical arm for cutting fruit bunches, computer vision to identify ripe fruit, and a reception apparatus equipped with a mechanism to track the number and weight of harvested bunches.
Worker safety was also a key consideration in the design, with safety modules integrated to ensure safe operation for users and nearby workers. “Safety is paramount, as is affordability, for an innovation to benefit smallholder farmers. The winning solution submission was very compelling and met the key criteria,” said Brinn.
Paving the Way for Future Collaboration
Developing the world’s first automated oil palm harvester is an ambitious endeavour, one that has demonstrated the transformative potential of open innovation. By leveraging the Sustainability Open Innovation Challenge (SOIC) platform and SAIL’s expertise in agricultural innovation, CNH was able to engage with global innovators and advance progress on this complex technological undertaking. The collaboration with Sofien has laid essential groundwork, showcasing how cutting-edge solutions can be co-created to address pressing challenges in agricultural sustainability.
The experience has underscored the potential of key technologies, such as advanced computer vision for detecting ripe fruit bunches amid dense foliage and a precision cutting mechanism designed to ensure clean detachment with minimal damage.
“This project exemplifies the use of advanced technologies in agriculture,” remarked Dr. Garv Modwel, Head of Advanced Technology and Innovation at CNH’s India Technology Centre in Gurgaon. “It brings together a powerful combination of artificial intelligence, machine learning, robotics, autonomous vehicles, and sophisticated mechanisation.”
While these advancements represent promising strides, achieving the full vision for an automated harvester will require ongoing collaboration and a shared commitment to mobilising resources and expertise. There remain additional technical and operational hurdles to overcome as the project progresses from prototyping to broader field applications.
“The collaboration with SAIL and the SOIC has been invaluable in moving our project forward. The solutions explored through this partnership have shown great promise in contributing to the mechanisation of the palm oil industry, aiming to reduce manual labour, enhance worker safety, and support environmental sustainability,” said Maggiolini.
CNH and SAIL now invite like-minded innovators, palm oil companies, and investors to join this journey. By building on the progress and insights gained so far, there is an opportunity to further co-develop technologies that could revolutionise palm oil harvesting and set new benchmarks for sustainable agricultural practices. To learn more about the oil palm harvester project or discuss collaboration opportunities, write to us at sail@ntu.edu.sg.
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SAIL is a national platform operated by Nanyang Technological University (NTU) Singapore, in partnership with Enterprise Singapore, that seeds partnerships between SAIL’s Corporate Partners, startups, small- and medium-sized enterprises (SMEs), research institutes, and institutes of higher learning (IHLs) to drive agri-food innovations.
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