The Talking AgTech podcast launches in October 2022 - follow us on your favourite podcast player so you don't miss an episode. What is AgTech?AgTech, also known as Agricultural Technology or Agrotechnology, is the application of technology to agriculture, horticulture, and aquaculture to help increase yield, efficiency, and profitability. AgTech can refer to products, services, or applications derived from agriculture and improve different input/output processes. AgTech adoption and development are critical to Australia's agricultural supply chain's profitability and responsiveness. Primary producers are some of the most efficient on the globe and have a long history of innovating to feed, clothe, and protect the growing population. For agriculture to be competitive and productive, it must adopt transformational strategies to keep up with the changing economic, natural, and social environment. Is there an opportunity within the AgTech industry?AgTech is a global opportunity and is expected to be worth up to US$189 billion between 2013-2022. The National Farmers Federation predicts that this figure will almost double the sector's value by 2030. So it begs the question: What will drive growth within Australia's agriculture industry? The global food demand is expected to rise by 60% by 2060, with a rising middle class, especially in the Asia Pacific, moving from a simple diet to one that's much higher in the kind of agriculturally-intensive foods in which Australia specialises. The domestic market is also growing in demand for locally-grown, sustainable food. Australia is a well-known brand with strong trade relations with these emerging markets. It presents an excellent opportunity to create technologies that will make a difference in the economy's bottom line and help rural Australia reap the economic benefits from the digital technology revolution. These changing demands are being met by the challenge of decreasing natural resources and rising costs of energy, labour, fertiliser, seeds, and herbicide costs. These shifting demands and increasing challenges present an opportunity for Agtech adoption and growth. Society is at a point where technology adoption in agriculture is not just a nice to have, it’s a necessity. It is not possible to double the amount of farmland; Australia's landmass is already utilised for agriculture in just half of it, with much of the remainder being inhospitable or barren. The predicted 85% of sector growth would require increased yields and higher cropping intensity. This kind of production growth is impossible without technology. AgTech investment opportunities in Australia:AgTech leadershipAgTech is a potential leading source in technological manufacturing, exporting high-tech products to a global market hungry for innovative solutions to meet the growing demand for food. Australia's high-tech exports grew by 44.3%, which equates to USD 1.44 billion between 2009 and 2014. The percentage of high-tech exports as a whole rose from 11.9% up to 13.6% during the same time. Eliminating food wastageAgTech can play a crucial role in reducing Australia's food waste by ensuring fresh produce is available. We currently waste four million tonnes, or $8 billion of produce, each year. AgTech can reduce the impact of herbicides on farms and waterways by allowing Farmers to work out the best ways to take a regenerative approach. The Australian agricultural industry is stung with around $1.5 billion per year using industrialised methods. Weeds also account for $2.5 Billion in lost production. What are some of the current technologies driving AgTech?Artificial Intelligence (AI) Artificial Intelligence refers to various technologies that enable machines to perform tasks that typically require human intelligence. This...
