Businesses have become evolutionary right before our eyes. Wealth generation used to be capitalized in slavery at about two centuries ago. The revolution changed its course to industrialization. Life travels beyond that in the late 20th century as the world embraced technology.
And, right before our cognizance, the transition has surged into Artificial Intelligence (AI). Meanwhile, the approach to agriculture revolves through these cycles. Advanced countries in the world invest in their research programs to boost easy farming mechanism.
Biotechnology has improved outcome by 1000% even more than we were accustomed to before now. In fact, Agri-tech was valued at $19.5 billion in 2021 and is projected to reach $46.4 billion by 2030, growing at a solid CAGR of 17.3%, per Spherical Research’s market insights.
Researches are now carried out periodically to ensure that as human existence stretches, food insecurity doesn’t overshadow the existence of men.
Why Investing in Agriculture is Super Essential:
1. Climate Change Effect
Lives are constantly exposed to danger as the ecosystem falls under the threat of nature. The sand texture and qualities are declining in their potency, exposing our farm products to unforeseen damages.
Besides, researches show that there’s an 11 gigaton GHG mitigation gap between the anticipated agricultural emissions by the mid-century, and the target level required to hold temperatures from rising above 2°C.
2. Proficiencies in Fresh Water
Availability of fresh water is essential in farming. Pew Trusts notes that by 2025, more than half of the global population would be residing in water stressed regions. Meanwhile, fresh water is running out of its existence as human population seem grossly growing so wide.
Technology has to be introduced to ensure plants gain perpetual flawless access to fresh water always. With the current survey in the Harvard University, the human population is projected to reach 10 billion by 2050 according to UN estimates. With that, the food demand is expected to increase by 59% to 98%, as noted by Harvard Business Review.
3. Buoyancy in Food Supply
Technology is boosting food supply as climate changes now feast on the global weather. food production will have to increase based on increase in human existence.
Food supply would have to be on the high side of increase by over 50% but pushing that rate with the present conditions is too far out in the overshoot zone to be sustainable, all other things constant. Shortage in food supply could spur chaos and civil unrest around the globe.
It might turn to an inevitable man-made famine. Therefore, that’s why logics such as indoor farming was introduced to defy all odds.
1. New Zealand
Number of Agri-Tech Startups: 185
Agriculture made up 5.65% of New Zealand’s GDP in 2019, per Statista figures. New Zealand has a healthy agritech sector that contributes $1.5 billion to the country’s export economy, according to the official numbers from the government.
Some startups include BioLumic and Opo Bio. The former manufactures and supplies ultraviolet equipment as well as treatment solutions to enhance crops’ pest/disease resistance, yield and hardiness. The latter develops cell-culture-based meat products, to offset the impact of cattle farming on the planet.
2. Israel
Number of Agri-Tech Startups: 225
Israel is an important country when it comes to the most advanced countries in agriculture technology. It is home to Simcha Blass, the inventor of Drip Irrigation, a highly efficient irrigation method that requires 20-50% less water than other irrigation methods.
Further, Professor Uri Shani, a prominent Israeli water expert, is credited with the development of the N-Drip micro-irrigation system, which further cuts costs for expensive pumps and water filters and reduces 50% of water usage.
All this is thanks to an atmosphere of innovation, with the country drawing 28 times more venture capital per capita than the United States in 2021, despite the US having some of the biggest companies in the world like Lindsay Corporation (NYSE:LNN), The Toro Company (NYSE:TTC) and Microsoft Corporation (NASDAQ:MSFT)
3. Germany
Number of Agri-Tech Startups: 297
Germany has the second highest agricultural output behind France but the country has a slightly higher number of agritech startups than the latter. As of 2022, 297 agritech startups are operating in Germany.
The EU leader has a strong economy and according to Global Data, the agritech industry is valued at nearly $0.6 billion in the country in 2021, with an YoY increase of 14%. Its top startups include Infarm and FarmInsect. While agritech has the smallest share in the overall number of startups in Germany, the R&D done in the country is highly impactful. According to the National Science Foundation, Germany’s share in the global Knowledge and Technology Intensive (KTI) industries output is 6%, one of the highest in the world.
4. South Korea
Number of Agri-Tech Startups: 72
South Korea is one of the wealthiest and most scientifically advanced countries in East Asia, with a GDP size of $1.8 trillion as of 2021. In the same year, its agriculture sector accounted for 1.84% of its GDP. The main crop in the country is rice.
Smart-agriculture ecosystem has been taking root in the country. In 2014, only 405 hectares of land and 23 households were dedicated to smart farms and smart livestock respectively. In 2021, these figures have jumped to 6,485 hectares of land and 4,743 livestock households respectively.
South Korea has some notable startups that are trying to disrupt the industry and solve problems relating to agricultural sustainability. Prominent companies include Green Labs, G+ Flas Life Sciences and EGG Tube.
5. Japan
Number of Agri-Tech Startups: 76
Japan is another East Asian country on the list of most advanced countries in agriculture technology. Agricultural sector has made up 1% of its GDP in 2022 according to the World Bank. Japan wants to more than double its agriculture exports from 2019, when they amounted to $9 billion. The country aims to export $19 billion worth agricultural products by 2025, sensing the market need. The agritech sector in Japan is valued at $1.66 billion.
In that order, the far East Asian nation is transforming its agricultural industry through technology. Spread and Routerek are two examples of highly innovative companies that are disrupting the industry. The former produces hydroponically grown lettuce while the latter has developed sensor-based systems for drip irrigation.
Routerek's business model is roughly similar to those of Lindsay Corporation (NYSE:LNN), The Toro Company (NYSE:TTC) and Microsoft Corporation (NASDAQ:MSFT) when it comes to irrigation efficiency.