Agtech for the future
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A major turning point for agricultural technology was the Industrial Revolution with the seed drill, the Dutch plough, and the threshing machine. Times have progressed and now we see the deployment of drones, satellite photography, and sensors, IoT- based sensor networks, automated irrigation, etc.
Projections show that there will be 9 billion people in the world by 2050. The Food and Agriculture Organization (FAO) estimates say we need a 70% increase in food production from 2005 levels to feed all those people, and we have to grow, harvest, distribute, and consume our food more efficiently. For Africa, which is projected to be home to about 2 billion people by then, farm productivity must accelerate at a faster rate than the global average to avoid continued mass hunger.
Our growing population is becoming increasingly urban: the World Health Organization (WHO) estimates that 7 out of 10 people will live in a city by 2050 and we’re not gaining additional resources like land or water, nor are we gaining more farmers. As our growing population becomes increasingly urban, the entry-barrier for agriculture increases and a declining percentage of farmers have to produce for a growing population. What this means is that we need to move past drones and connecting farmers to people quickly.
The possibilities in Agtech are diverse but it seems African Agtech startups have chosen to focus on drones mostly. This is not a bad thing, in fact, it is progress but this progress is not broad in scope.
For example, there’s a family farm in Marcellaz-Albanais, France where their 60 dairy cows are left to their own devices with no one milking them. The owners built an automated milking system two years ago with €140k. The results? Each cow has increased its milk production from 6000 liters/year to 7000 liters.
This system can also detect an infection 24–72 hours before it shows up. The quality of milk has improved as it now sells for €450/ton versus the €300 average.
Not too far from this farm, There’s a winery using a camera to test out AI to monitor their vineyards for signs of disease.
The future of agritech will focus on more sustainable methods of production, moving away from the chemical heavy methods of today. We will see policies that hinder the use of most pesticides.
For instance, from 2022, the EU is going to ban glyphosate — a broad-spectrum systemic herbicide and crop desiccant because it is harmful to animals and human beings (there are concerns that it can cause cancer).
Supply chain efficiency is one more possibility. In Sub-Saharan Africa, the agricultural supply chain is marked by inefficiencies at all levels and is exploitative as well. Food is wasted before it even reaches the consumer. Whatever way you look at it; the supply chain needs to become more efficient.
Also, Irrigation facilities are still falling short of the mark, and there is a significant amount of work to be done here. With the shortage of irrigation facilities in most parts of the continent, Agtech startups should be making strides on how to reduce farmers’ dependence on rainfall.
If the aim of agtech is to improve yield, efficiency, and profitability, we need to quickly utilize other technology areas to create total improvement, large-scale business opportunities and have food available for our projected 2 billion.
We have invested in ThriveAgric, a platform that crowdsources resources to enable farmers to access better inputs and scale their outputs. We are still keeping our eyes open for opportunities in the agtech space.
We’re looking for startups offering technologies that can increase farmer profitability, productivity, and efficiency, improve farmer, animal, and consumer livelihood with better work environments, food safety, and food security, and protect the planet and its finite resources.Talk to us
What we’re reading
- Where’s all of Amazon’s money going? Benedict Evans breaks down why Amazon has no profits (And why it works) — Link
- Stripe Atlas has worked with experienced entrepreneurs and industry experts to give you authoritative, actionable guidance on how to run the business side of your company. — Link
- Each year, Stack Overflow asks the developer community about everything from their favourite technologies to their job preferences.See this year’s 2018 developer survey — Link
- Bill Gurley on 10 factors to consider when evaluating digital marketplaces. “Great marketplace execution is more nuanced and less systematic than other venture-backed categories, and for every successful marketplace, you will find an amazing entrepreneur that out-executed the many others that had chosen to attack the same market.” — Link
- “When startups raise big rounds, they’ve convinced investors their company will continue to grow very quickly and very predictably far into the future”. Tomasz Tunguz on the implications of raising a high-priced round. — Link
Please share and have a terrific day,
V.
