Soil Scout's technology helps save irrigation water 

The soil measurement and monitoring system developed by Soil Scout is a unique product worldwide. Wireless soil sensors and data transfer software provide real-time data on soil temperature, moisture, and salinity. Based on this information, it is easier to make decisions related to, for example, irrigation or other soil management. 
 
Soil Scout’s story began in Ulvila in the early 2000s, says Soil Scout’s CEO Jalmari Talola: 
 
“Farmer Johannes Tiusanen – at that time an agrotechnology student, now a docent in agriculture and forestry and one of the founders of the company – paid attention to the water management of his family farm and the lack of precise means for monitoring humidity. Tiusanen decided to write his doctoral thesis on the topic and developed a radio antenna that works better underground than in the air and always stays tuned. His friend, technology wizard Jussi Sirkiä, manufactured the first prototypes. 

The international market potential for a system measuring and reporting soil conditions is promising. Fresh-water sufficiency is a major sustainability challenge globally, and agriculture is one of the largest water users in the world. 
 
Business Finland and Team Finland have helped the company significantly along the way. Soil Scout has received Business Finland’s support typically provided for growth companies, such as advice on international growth as well as funding. This has been leveraged for product development and international business development. 
 
"We aimed towards exports from early on, as our markets are abroad. But the export markets are not easy without networks. Business Finland has introduced us to its contacts and sought partners for us in different countries,” Talola says. 
 
A team of about ten people is currently responsible for the operations of the fully Finnish company. The company has 30 sales partners and 1 000 customers in 52 countries – including agriculture, golf and sports fields, and green spaces. 

Golf course customers boosted international growth  

The turning point came in 2019, when Soil Scout sought investor money through a funding round to support the growth of its international operations. 
 
“Before the funding round, we refined the business model together with Business Finland. We focused on agriculture, but received inquiries from golf courses already early on. Previously, we applied sensor technology to the golf environment with the support of a product development loan. We attracted famous golf courses and sports fields as our customers through our partners,” Talola recalls. 
 
Golf and sports field customers enabled Soil Scout to grow. Turnover of the company increased significantly, especially in 2021. The operations turned profitable two years later. Agriculture currently accounts for about a quarter of the company’s business, golf courses and sports fields account for a third each, and the rest consists of green spaces such as parks and cemeteries. 
 
Soil Scout’s main objective is agriculture, for which it develops attractively priced solutions. It also plans to differentiate product families for the agricultural and sports segments.  
 
“North America is our number one market, and Europe is, so to speak, our home market. Our agricultural customers are especially in the Nordic countries. Emerging and developing markets also have potential, and in the future, we want to support farming and food production around the world," Talola notes. 

Emerging and developing markets have been on Soil Scout’s radar for years because of their enormous potential. Their economy and population are growing rapidly, and they attract international attention and investments.  
 
“Developing markets need sustainable innovative solutions that responsible Finnish companies can develop and offer,” says Kiira Kärkkäinen who leads Developing Markets Platform at Business Finland. 
 
The challenge for Soil Scout has been to break into new markets without local knowledge or resources to conduct market research. The top-up funding provided by Developing Markets Platform and linked to a Business Finland funded research and development (R&D) -project has helped the company move forward. The purpose of the top-up funding is to enable co-development of sustainable innovative solutions with local partners in developing markets – in Africa, Asia, Latin America, or South-East Europe.  
 
“We encourage companies to internationalize together with local partners. In addition, the representatives of the Team Finland network in target countries support and advise companies,” says Petri Tulensalo, Account Manager at Business Finland. 
 
Soil Scout selected first Turkey and then South Africa as its target countries of more than one hundred potential developing markets. Extensive market research was carried out with local partners in both countries, and the projects helped to understand the potential of the company’s solution in both countries. 
 
“We gained understanding, for example, of network traffic and acquired information about local legislation,” Talola says. 
 
In Turkey, the partner was IDT Teknoloji, a local technology company focusing on irrigation systems and home automation systems. Turkish legislation turned out to be unexpectedly complex. 
 
“The aim was to develop the integrability of the solution with local irrigation systems. The encountered challenge was that the irrigation controls in use were very old and based on analog thinking. It also came as a complete surprise to us that all test equipment should have been registered already atin the piloting phase, which is very expensive. This information was very important for risk management. In developing markets, the legislation can be quite a jungle,” Talola says. 
 
South Africa, on the other hand, turned out to be more technologically advanced. After piloting and identifying its partners, Soil Scout has refined its business model to suit the local market. The partner of choice was a South African technology company AutomateNow, which focuses on automation systems.  
 
“We got a strong partner from South Africa. The business has kicked off nicely there, one half of the turnover coming from agriculture and the other half from golf and sports fields. The aim is to find local agricultural management and irrigation systems that would enable integration of Soil Scout’s technology. While our pilot customers were satisfied, it turned out that the farms were not ready to integrate our system yet.  

Efficient water use supports sustainable development

Developing Markets Platform is a joint initiative of Business Finland and the Ministry for Foreign Affairs of Finland (MFA), and the top-up funding provided has derived also from the official development assistance by the MFA.  
 
“Solutions developed with the top-up funding can help the funded company grow, while promoting sustainable development in developing markets from the perspectives of, for example, the environment, social development, good governance or cost-efficiency, explains Kärkkäinen. 
 
Soil Scout’s solution directly contributes to clean water sufficiency and sustainable local food production. 
 
“In South Africa, for instance, clean water sufficiency is a big concern. Overirrigation is a standard procedure, but our system enables the optimization of water usage, explains Talola. 

When Soil Scout focused on the golf market, Business Finland’s R&D loan enabled the product development. The company would not have targeted South Africa and Turkey without the top-up funding provided by Developing Markets Platform. The company intends to use Business Finland’s services also in the future. 
 
“Business Finland has been a strategic partner for us since 2014. If I were to go back in time and have all the information that I have now, it would all be easy. If a Finnish company pursues export markets, the first step is to approach Business Finland. They have tremendous experience, for example, on building a partner network, and it would be foolish not to take advantage of it,” Talola sums up.