![Robotti with mounted potato ridger - [Credit AGROINTELLI]](/sites/default/files/styles/article_main/public/Robotti%20with%20mounted%20potato%20ridger%20-%20%5BCredit%20AGROINTELLI%5D%20%28CamNet%29.jpg?itok=Q5MUJ8dZ)
As more major pensions funds agree to invest into British VC firms and start-ups as part of the government’s Mansion House Compact* to encourage investment in UK innovation, Dr Belinda Clarke, Director of Agri-TechE, highlights the urgent need for scale-up support for agri-tech. These technologies, aimed at improving food security and the resilience of agriculture, also support corporate sustainability goals.
Dr Clarke says: “While government support has been instrumental in getting a diverse array of agri-tech to proof-of-concept and early commercialisation stage, agri-tech companies need to go global early to achieve the economies of scale.
“However, to bridge the gap between seed funding and institutional finance requires informed investors who understand that there are many variables in agricultural production, many beyond our control.
“We are calling for more specialist agri-tech advisors to be included in the development of private equity investment vehicles, such as those being considered by the finance sector to support the Mansion House Compact.”
Dr Clarke makes her comments ahead of Agri-TechE’s 2023 REAP Conference (on 8th November), which showcases the agri-tech innovation ecosystem and features a carefully curated Start-Up Showcase of early-stage companies. 14 of the companies previously featured have raised over £120M in the last three years.
Dr Clarke comments that the rate of agri-tech innovation is accelerating. She attributes this to greater collaboration between farmers, technologists, and researchers on co-development of farm-ready technologies, as well as advances in enablers such as space-tech, and the Precision Breeding Act (2023), which will shorten development time of new climate-smart crop varieties.
To illustrate the speed of adoption, she gives the example of a robotic root vegetable cultivator and harvester displayed at the REAP Conference last year that has been in commercial use this season by producers keen to automate their operations.
A recent Bloomberg survey of ‘Top 25 UK Start-ups to Watch 2023’** featured two Agri-TechE members (Nature Metrics and BigSis), but Dr Clarke says this is just scratching the surface and there needs to be more awareness of the strategic importance of the technologies.
“Precision farming, improved monitoring and increased automation are vital if the world is to future-proof its food and environment,” she says. “Agri-food value-chains are under pressure, creating incentives to digitise the industry at all stages from field to plate. The market is huge.
“The new Task Force for Climate Related Financial Disclosures are mandatory in the UK for the first time this year. To fulfil their legal requirements multinationals, need to measure and support the reduction of Greenhouse Gas emissions in their supply chain. Agri-Tech is key to reducing consumption of fossil fuels and mitigating environmental impacts.”
Agri-TechE was established in 2014 as an independent membership organisation to facilitate the growth of an innovation ecosystem. It now has a thriving community of progressive growers, entrepreneurial technologists and leading-edge scientists with its core in the East of England and strong national and international links.
Government commitment to the sector was evidenced with the recent announcement of the ‘Agri-Tech and Food-Tech Launchpad’, one of nine launched recently by the government. It offers a share of £2m for collaborative projects led by an organisation based in Cambridgeshire, Norfolk, Suffolk or Lincolnshire.
Against this backdrop, the REAP conference, located at the Launchpad’s epicentre, is an ideal networking opportunity for potential investors, collaborators and users of agri-tech.
“Agri-tech has the potential to be a great export story for the UK and enable value to be within the UK and returned to benefit us all – including those with pensions invested in these funds,” comments Dr Clarke.
Find out more about Agri-TechE at agri-tech-e.co.uk and the REAP Conference at reapconference.co.uk
[The main image shows Robotti, which was showcased at REAP 2022, with a mounted potato ridger - Image credit: AGROINTELLI]
* Mansion House Compact https://www.pensions-expert.com/Investment/Private-equity-or-bust-Why-the-Mansion-House-pension-compact-needs-detail-and-circumspection?ct=true
** https://www.bloomberg.com/features/2023-UK-startups-to-watch/
