Export Development Canada (EDC) is making an investment of $7 million in Quebec-based precision irrigation management systems company, Hortau.
Since its founding in 2002 in San Luis Obispo, California, Hortau has become a leader in web-based irrigation management systems that help farmers reduce plant stress, reduce water and energy use and costs, and lessen the overall environmental impact of agricultural production. The company’s proprietary platform measures plant stress using real-time soil tension data, reporting the health status of crops back to operators in real time, giving growers the ability to address issues such as drought, or lack of aeration, before they can have a lasting negative impact on yields.
“We see a lot of potential in Hortau and know there is a demand for their technology around the world as the need to better manage water resources becomes increasingly important,” said Carl Burlock, senior vice president of financing and international growth capital at Export Development Canada. “Global demand is growing across the cleantech sector, and EDC is committed to helping Canadian exporters gain a bigger foothold in the world market.”
This investment follows a $10 million round for Hortau in early 2016 that was led by Advantage Capital Agribusiness Partners (ACAP) and which included BDC Capital Inc., Avrio Ventures LP II, and Capital régional et coopératif Desjardins to support the company’s expansion into the High Plains and Southwest regions of the U.S. Hortau had already marked out its presence in the Pacific northwest.
Water issues in the region have historically been top of mind as the depletion of the Ogallala Aquifer threatens agricultural production. The Ogallala supports 20 percent of U.S. agricultural output, extending under eight U.S. states from South Dakota to Texas totaling 174,000 square miles of surface area, or almost double the surface area of all five Great Lakes combined, according to Bloomberg. However, 30 percent of the aquifer had been pumped out as of 2015, and another 39 percent is expected to be pumped out within the next 50 years.
Commenting on the investment made by EDC, Jocelyn Boudreau, chief executive officer and co-founder of Hortau, said, “The reality is, our farmers are facing tougher challenges than ever before as they work to feed a growing population with fewer resources. We know our products make a difference, reducing water use by 25 percent while increasing yields and this investment will help us bring our solutions to more customers.”
Earlier this year, Sustainable Development Technology Canada (SDTC) also committed $5.9 million in funding to Hortau in support of the development of the company’s technology,with the goal of building strong, globally competitive, Canadian cleantech players.
-Lynda Kiernan