February 19, 2019

Austrade, Australia’s national promotion agency for trade and investment, has launched Australia for Agriculture 4.0 – a new initiative with the goal of transforming overseas interest in agtech and food tech into capital investment in the country’s startups.

“Australian agricultural and food producers are quick to harness cutting-edge technologies to deliver high-quality, traceable raw materials and products to export markets,” said Karen Caston, senior investment specialist at Austrade. “Our agtech and foodtech solutions are turning heads around the world, and we are seeing increasing interest from foreign investors and research partners who see Australia as a testing ground or regional base for further development.”

Although Australian innovators have been developing solutions to a variety of challenges facing the country’s growers, including drought, animal management, and disease and pest control, the Australian government notes that an existing lack of capital is hobbling the advancement of these developments. As recently as 2017, 80 percent of all agtech investments made in Australia were less than $1 million, according to Australian Financial Review, and of these investments, most were in the form of government grants or through accelerators.  

“Australian farmers and food producers are recognized globally for their innovation, using technology to drive consistent productivity growth, develop better quality products and build globally competitive businesses,” said Caston. “Despite facing some of the harshest environmental and climate conditions on the planet, they have made the country a top five producer of barley, oats, chickpeas, almonds, beef, sheep and wool.”

The launch of Australia for Agriculture 4.0 is one form of answer to the findings of a report commissioned in 2016 by StartupAUS, KPMG Commonwealth Bank, and the Queensland government called Powering Growth: Realizing the Potential of AgTech for Australia. The report determined that agtech is a critical factor if Australia’s agricultural sector will reach the goal set by the National Farmers’ Federation of becoming a $100 billion industry by 2030. However, the report went on to state that there exists a dire lack of investment, national strategy, and domestic opportunity.

Australia for Agriculture 4.0 aims to establish Australia as a global hub for both agricultural and food tech innovation, acting as a platform to place focus on the country’s ag and food tech capabilities, its excellence in research, its strong record of innovation, its strong government support, its robust export channels, and its technological advances.

“Australia has the potential to be a powerhouse in agrifood tech and we want to help the sector reach its full potential,” said Simon Birmingham, Minister for Trade, Tourism and Investment.“Our farmers are some of the most innovative in the world but we’re behind the pack when it comes to commercialising [sic] our food and farming technologies.”

Given its variety of climates, its stable business environment, and its proximity to some of the fastest growing Asian markets in the world, the platform will highlight insights and developments from the country’s agtech players, and will serve to connect investors, researchers, and exporters with Australia’s government, private sector, academic leaders, and its ag and food tech stakeholders.

“This initiative is about connecting investors with Australian farmers and AgTech start-ups as well as creating more collaborative research and development opportunities,” noted Birmingham.

Austrade marks how Australia is gaining global prominence on the ag and food tech stage, noting how some of the largest companies in the world – including Cisco and Bosch – have chosen Australia as a hub from which to expand.

“Bosch is investing in Australia as an Agriculture 4.0 development hub for three major reasons: its rich history as a world-leading producer of agricultural commodities; the strength of its agricultural research and scientific capabilities; and the food and agriculture industry’s willingness to trial and adopt new solutions,” said Gavin Smith, president of Bosch Australia, adding,“Our investments in and partnerships with Australian institutions is testament to Australia’s strengths in technologies that will lead the next revolution in agriculture.”

-Lynda Kiernan