Most Active Large Agribusiness Corporations In The AgTech Domain
For this post, we conducted a thorough analysis of the entire agricultural value chain to identify the largest agribusiness corporations who are most active in the AgTech domain. Our list includes 1 to 2 of the most involved companies for each category in the agribusiness industry.
Agriculture Machinery Producers
John Deere. John Deere is one of the most recognizable corporations within the agribusiness industry, so it makes sense that they would be one of the most active companies in the AgTech domain. John Deere started all the way back in 1837 and provided simple tools like shovels and plows. Now, they are a company making several billions in revenues each year.
In terms of their AgTech activity, they recently acquired Blue River Robotics for $305 million so that they can focus on integrating machine learning into their agricultural solutions. Machine learning is a subset of artificial intelligence that focuses on a computer’s ability to learn by itself. It does this through algorithms that dictate how the computer should process information and ultimately leads to an AI that can learn without explicit directions.
Machine learning is key for several of John Deere’s AgTech solutions like variable rate application, data management, automated guidance systems for tractors, and field/water management. All of these solutions are made available through the John Deere Operations Center, which is found at www.MyJohnDeere.com. Here, you can connect your machinery, manage your fields and operations, and view analytics and reports. Another added benefit of working with John Deere is that you know they are handling your data responsibly, considering they just received their AgData Transparent seal of approval.
Agrochemical Producers
Monsanto + Bayer
In September of 2016, Monsanto and Bayer announced that they signed a merger agreement where Bayer would acquire all of Monsanto’s shares in cash. The deal, which is set to close sometime this year, is worth a staggering $66 billion. The goal for these companies is to provide enhanced solutions in seeds and traits, digital agriculture, and crop protection. Together, this newly formed partnership will account for more than 25% of the world market for seeds and pesticides in the farm supplies industry.
Outside of this merger, Monsanto and Bayer were already quite active in the AgTech industry. The Climate Corporation, which is a subsidiary of Monsanto, has been providing the Climate FieldView platform to help farmers centralize their data, gain insights about their operations, and optimize their work. Monsanto also has a venture capital wing, the Monsanto Growth Network, where they have been funding a diverse range of businesses from pharmaceutical to agricultural software/hardware companies.
Bayer has also been involved in the AgTech industry, with one of their most recent ventures, Xarvio. Xarvio is a digital farming platform that allows farmers to optimize their fields, increase efficiency and production, save time, and produce healthier crops.
Syngenta
Syngenta was established in 2000 when Novartis, a crop protection and seed agribusiness, merged with Zeneca Agrochemicals. The result was a company that became the world’s biggest crop chemical producer, with a very strong presence in Europe.
Syngenta Ventures, their venture capital fund, is one of the most active global investors in agricultural businesses and have injected capital into many companies from pest and weed management platforms to satellite imaging solutions. Additionally, Syngenta acquired two AgTech companies (Ag Connections and Farmshots) to continue to develop their precision farming solutions.
Fertilizer Producers
Yara
Yara is the world’s leading supplier of mineral fertilizers for the agricultural industry. Their products and services are not just limited to crop nutrition however, and also include numerous precision farming technologies like variable rate application, sensors, hand-held testers, and more.
Their N sensor, for example, is a tool that allows farmers to make use of variable rate application. The N Sensor is mounted to a tractor and measures the nitrogen requirements of the crops that it passes over. This data influences the rate and quantity of fertilizer applied to the crops.
As with most industry leaders, Yara is very active in investments and acquisitions. One notable agribusiness acquisition was their takeover of Agronomic Technology Corp (ATC), which was completed in November of 2017. Agronomic Technology Corp had a nutrient recommendation platform, Adapt-N, which Yara plans to use to strengthen their digital farming offerings within the AgTech domain.
Commodity Traders
Cargill
Cargill is an American company that was founded in 1865. It is now the largest US privately owned corporation in terms of revenue and focuses on providing end-to-end solutions for agricultural businesses. They recently became much more active in the AgTech domain and launched a digital suite equipped with farm analysis and data management products. Cargill has made several investments through their venture capital fund in agribusinesses like Descartes Labs, Cainthus and more.
Descartes Labs is an imagery and intelligence platform that analyzes and makes meaning out of satellite and drone imagery, and Cainthus provides facial recognition software for monitoring the wellbeing of livestock. Overall, Cargill is putting a large emphasis on high tech, digital solutions for their agribusiness offerings.
Ag Retailers
Wilbur Ellis
Wilbur Ellis is a multibillion-dollar corporation that consists of three main businesses: the Agribusiness division, Connell Brothers Specialty Chemicals and Ingredients division, and the Feed division. Although their main focus is on selling agricultural retail products like chemicals, seeds, nutrients, etc., they also have been stepping up their activity within the AgTech domain. This is evident through the investment history of their venture capital fund, Cavallo Ventures.
Specifically, their investments in AgCode and AgVerdict show clear signs of their interest in this domain. AgCode is a software management platform for vineyards and other types of crops. It includes tracking systems and also integrates features for billing and payroll. AgVerdict is another software solution that is focused on more general farm management and optimization tools.
Land O’Lakes
Although more commonly known for their butter, Land O’Lakes is an agricultural cooperative with a membership of over 4,500 farm owners. They pool resources together to ensure that their crop production can be maximized, and this is why they are also focusing on the integration of precision agriculture technologies.
Some of the AgTech solutions that they offer include Answer Plot, AnswerTech, and their own ATLAS web portal where their customers can easily access these tools and more. Their activity in the AgTech domain is funneled through their own venture capital fund, Thrive AgTech, and through WinField® United, which is their seed and crop protection products business.
Inspection and Testing Services
SGS
SGS is the global leader for inspections, verifications, testing and certifications. They provide solutions that help businesses improve their product quality and safety while at the same time reducing risks. Their business covers a huge variety of industries, but for the agricultural industry, they provide an end-to-end range of services for the entire supply chain.
They are also active in their AgTech investments and acquisitions. Less than two years ago, SGS acquired a 75% share of Unigeo, which is software platform that helps with crop production and overall productivity. Another AgTech initiative that SGS is involved with is drone-based inspection services. They recently entered a partnership with BAFA to focus on this initiative.
AgFlow is another interesting platform that SGS invested in. AgFlow provides trade intelligence for the grains, oilseeds/proteins and edible oils markets, and generates transparency and insight for these markets.
Food Producers
General Mills
General Mills is famous for their brands like Cheerios, Häagen-Dazs, Yoplait, and countless others, but what they are less famous for is their venture fund, 301 Inc. Through this fund, they have invested in numerous startups and businesses alike. These investments have all been focused towards food producers. The type of technology used in food production can be quite different than the traditional software platforms that you expect to see in precision agriculture, but this sector of the industry is just as important.
One such company is Kite Hill, who produces cheese from nuts. The types of technology used in this production process are important because they can pave the way for increased sustainability for food production in general. Their other investments also can help influence how crops are used after the harvest.
Kellogg
Kellogg is another company with a handful of iconic brands. They also have a venture fund that is dedicated to investing in food startups. Their first investment was in the company Kuli Kuli, who produces moringa-based products. Moringa is a type of plant-based protein that is found in the leaves, pods and oils of certain plants and trees. Overall, Moringa can provide a new source of non-animal protein, which is always important for environmental sustainability.
What is important to note about the investments into food production is that they have an indirect effect on the supply chain for farmers who are involved in producing those crops. For example, because Kuli Kuli received this funding, they are now able to pay the crop producers more money and help develop this measure further.
The Entire Value Chain
From the beginning stages of field analysis to the final stages of food production, the entire agribusiness value chain is covered by some of the largest companies in the industry. The capital and man-hours that these companies are contributing will continue to change the AgTech domain for the future.
