The future of farming in Australia: a growth opportunity for global agtech firms

Rolf Karst , Austrade Investment Director in the Netherlands, discusses what makes Australia such an attractive market for Dutch agtech companies?in the lead-up to AgriFutures evokeAG , Asia-Pacific's premier agrifood event taking place in Perth, Australia from 20-21 February 2024.

Australia is a compelling destination to develop, commercialise and scale the next generation of agtech and foodtech.

Since 2019, Australia has committed over A$6 billion to help farmers and food producers build production and supply chain resilience, as well as access new markets across the world.

Australia currently produces enough food to feed 80 million people and is a major exporter of agricultural products. Australia exports around 72% of its agrifood production overseas. In 2021-22, the export value rose to more than A$64 billion.

Australia's goal is ambitious: to generate A$100 billion in agricultural production by 2030 through its Ag2030 plan.

This creates a diverse range of opportunities for international companies looking to invest in Australia.

There are already over 2,500 agtech and foodtech enterprises in Australia, boosting industry innovation. There are 15 agritech incubators and accelerators supporting sector growth. ?

Australia’s free trade agreements with the Asia-Pacific region provide international businesses with preferential access to these high-growth markets.

Our strong R&D ecosystem and diverse growing conditions allow businesses to develop new crops and capitalise on counter-seasonal harvests to provide year-round supply.

International food producers looking to trial and develop solutions in a varied environment will find cutting-edge capabilities and investment opportunities.

Major companies such as Nestlé, Fonterra and Goodman Fielder are just some of the international food producers already doing business in Australia.

Dutch-headquartered NewCold are helping Australia address its current shortage of #coldstorage capacity and efficiency, which has been a significant barrier to the growth of local agriculture production.

NewCold’s cold storage facilities are helping Australian food producers store produce safely, efficiently and sustainably using automation and robotics. ‘Australia is unique for us,’ says Abhy Maharaj , NewCold’s Chief Commercial Officer. ‘We have large facilities in the UK, but nothing on the same scale as our Melbourne facility. There’s probably nowhere in the world where there's so much automated technology in one region.’

Investing in tech to boost yield and productivity

Australia's sometimes challenging physical environment means that to achieve the A$100 billion target, growers must adopt new technologies and practices to drive consistent productivity growth.

This is further supported by the Australian Government through its National Agricultural Innovation Policy Statement. ?

A well-established legislative and regulatory regime provides assurance that IP developed through R&D and innovation activities will be protected. Extensive R&D tax and VC tax incentives are available.

However, Australia has identified that further investment from venture and seed funds is crucial to growing the depth and quality of Australia's agtech sector.

Australia's agrifood community are seeking the latest tech solutions to address key climate-related challenges, and respond to ever-changing consumer demand for food that is healthy, convenient, and traceable.

Innovative solutions help drive sustainability in Australia's agrifood sector

Australia has enshired its target to achieve #netzero emissions by 2050. Prior to this, Australia's peak organisations and businesses had already started implementing ambitious industry-wide sustainability and emissions reduction strategies.

• Australia's wine industry is working towards net zero direct emissions by 2035
• Australia's red meat industry has set a target to be carbon neutral by 2030
• The dairy industry aims to reduce GHG emissions intensity by 30% by 2030.

These initiatives are self-propelled by the industry but are also increasingly being demanded by consumers.

Promising growth areas for global companies

Australia's agtech innovation has traditionally been weighted towards management software, but that is changing. International companies will now find opportunities in:

• Farm robotics, mechanisation, and equipment
• Food safety and supply chain traceability technology
• Novel ingredients, functional food, nutraceuticals, plant-based meat, and cultured meat and dairy
• Novel farming systems: indoor farms, aquaculture, and insect, algae, and microbe production
• Biotechnology: on-farm inputs for crop and animal agriculture, such as genetics, microbiome, breeding, and animal health.

A?McKinsey?study found that these new technologies will lead to a significant increase in productivity and yield, enhance climate resilience, reduce supply chain waste, create more healthy, nutritious foods, and provide consumers with food transparency.

This is not only important for Australia to reach its sustainability and production targets, but will help meet the global challenge faced by the agricultural community to produce more while reducing emissions.

Here is a major opportunity for Dutch agtech firms to collaborate with Australia's farming and agricultural community as they look to sustainably grow their production output to A$100 billion by 2030.

In partnership with Embassy and Consulate-General of the Kingdom of the Netherlands in Australia and Export Partner , the Australian Trade and Investment Commission (Austrade) is hosting a Dutch business delegation at the upcoming #evokeAG Conference in Perth, Australia from 20-21 February 2024. For more information, contact?[email protected]?directly.

Austrade Investment Director Israel Shiri Fisher is also at evokeAG with some of Israel's most innovative agtech companies. Contact her at [email protected] to connect with these global irrigation and agritech leaders.

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The original article was published by Hortidaily in December 2022.

#agtech #foodtech #agritech