investigating in the right agriculture technology and innovation?

ARE WE INVESTIGATING IN THE RIGHT AGRICULTURE TECHNOLOGY AND INNOVATION?

ROYAL WELSH AGRICULTURAL SOCIETY

EDWARD JONES 2020 NUFFIELD SCHOLAR

With the global population set to rise from 7.9 billion to 9.8 billion between now and 2050, world governments are faced with an overwhelming dilemma: how to feed the future without putting irreparable strain on our planet’s already overburdened soils and oceans?

Our food system needs to be part of the solution to climate change while also meeting the challenge of feeding a growing population in a way that is sustainable for the planet. This can only be achieved through the adoption of new technologies and changes in business practices. Global investment in AgriTech was $51.7bn in 2021; an 85% increase over 2020. Investors are continuing to invest in this sector because it represents a new approach to tackling climate change and the market potential is nearly limitless precisely because our appetites are too. This allows entrepreneurs to have a profound impact on agriculture and the food system by ensuring they have the necessary finance to develop new business models and reshape production, consumption, transportation and delivery systems.

This project explores and evaluate the AgriTech vision of investors (the providers of finance), entrepreneurs (those who seek-and-solve), and policymakers (those who guide and regulate the industry) and considers:

Are we all heading in the same direction?

Because of its expertise in a cross-section of technologies and disciplines, from sensors, AI and big data, to robotics, the USA has found itself to be at the forefront of AgriTech and the home to many start-ups in this field. Europe can also claim to have AgriTech champions. For example, the Italy has successfully incorporated blockchain into its agricultural system. Because of this. the countries visited included USA, United Kingdom, Republic of Ireland, France, Italy, and Spain. The investment argument for AgriTech is multifaceted. It is anticipated that 7 out of 10 people will live in cities by 2050, with an increased middle-class society. Middle-class people generally have healthier diets with greater demand for fresh fruits and vegetables. This trend helps explain investors interest in controlled farming systems, that uses technology within a controlled environment to maximise output while also minimising inputs. The cost of traditional agriculture is becoming more expensive (when taking into account, for example, climate change, soil health, complex supply chains, water consumption). Despite this, only 4% of $51.7bn was invested in technologies that could have a direct impact on traditional farming methods and help tackle these costs. Outputs of this study showed that alternative metrics are required, such as “return on energy” or “environmental efficiency”, for technology investment decisions in traditional agriculture. Such measures will ensure the allocation of finance to support those technologies that will allow farmers to reduce their impact on the planet. The development of such technologies will need to be supported by the government who has the capacity to make investment decisions not based on financial returns alone. Further, traditional agriculture needs to learn and adopt the technologies from farming in controlled environment systems. While it is not possible to control all the elements of traditional agriculture, it is possible to measure each aspect and modify farming practices accordingly.