AgTech key to prosperous ag future

Recent research undertaken by start-up advocacy group StartupAUS has emphasised the importance of digital agricultural technology (or AgTech) in helping Australia to become a global food bowl.

It outlines key insights on AgTech and the agricultural sector in general and makes recommendations to put AgTech in a better position to serve the Australian agricultural industry.

It draws on detailed discussions with more than 60 stakeholders – including AgTech start-ups, farmers and agribusinesses, research bodies, government, and investors.

According to the report, the ag-sector is the largest employer in rural communities, generates four per cent of Australia's total employment, provides 93 per cent of the nation's domestic food supply, and contributes approximately 13 per cent (AU$42 billion) of Australia's export revenue.

"Agriculture is a key driver of Australian exports, and technology has always played an important role in increasing agricultural output," says StartupAUS CEO, Alex McCauley.

"We have an extremely valuable opportunity here to develop technologies that make a real difference to the economy's bottom line, while also helping rural Australia realise the economic benefits of the digital technology revolution," he says.

"If Australia is to realise its ambition to be the food bowl for a rapidly growing middle class in Asia and Africa, we will need to become a leader in AgTech."

A key statistic from the report shows global venture capital investments across AgTech reached US$1.5 billion, up 336 per cent compared to the previous year.

"Technologies such as autonomous vehicles, precision sprayers, virtual fencing, smart gates, sensing devices and robotics are already transforming how we farm," says KPMG AgTech Leader & Head of Markets, Ben van Delden.

"The Internet of Things will draw consumers closer to growers and integrate supply chains to improve yield and reduce wastage."

Some key recommendations made by StartupAUS include:

"In countries such as Canada, England, Israel and New Zealand, government is already playing a key role bringing together researchers, producers, technology providers, start-ups and investors," adds van Delden.

"It is our hope that this report can form a go-to-market strategy for Australian governments and corporates to work alongside each other to build and grow a vibrant, world-leading AgTech ecosystem."