A PUSH is on to grasp emerging opportunities in global agricultural, but Australia will need to lift its game to tap the AgTech opportunity.
Technology companies and investors across the world are eyeing opportunities in the new solutions to the productivity challenges, such as profit crunch, pesticide resistance or booming global populations, that confront modern farming.
Venture capital is flowing into AgTech, with $1.5 billion invested in 2015 globally, up more than 300 per cent on the previous year according to the report Powering growth – realising the potential of AgTech for Australia, which was commissioned by industry body StartupAus and written by KPMG. But of the 526 deals done across the world, just five went Down Under.
“Start-ups are a nationally impactful economic force,” said StartupAus cheif executive Alex McCauley who said regional Australia could be boosted by AgTech companies that partner with tech-savvy Aussie producers during product development.
Of the 526 AgTech deals done in 2015, just five happened Down Under
- KPMG - Powering growth – realising the potential of AgTech for Australia
New farm products coming to the global market focus on machinery automation, communication systems, data management and so on.
StartupAus said government should spend more to encourage international investment in local research and development by establishing a joint funding mechanism with large corporations, increasing R and D tax incentives and creating a public project fund like the Australian Renewable Energy Agency (ARENA).
The Turnbull government already created incentives for ‘angel investors’ to fund new businesses with a 20pc tax write-off capped at $200,000 and a 10 year tax holiday on capital gains and a 10pc instant tax write-off for venture capital.
The resources sector provides a benchmark. Revolutionary technology sprouted from the mining boom with Australia reaping benefits. Everything from rubbish bins to exploration kit to heavy haul trains, ports and entire mine sites were beefed-up and automated.
Even as the shine came off the sector In 2013, the mining equipment, technology and services (METS) sector comprised more than 1200 companies, generated $27b in export revenue and invested $1.5b in research and development.
KPMG’s head of AgTech Ben van Delden said the report’s call for a digital marketplace as a key opportunity for producers. The online portal would link producers with on-farm problems to AgTech developers, luring business to the bush and harnessing know-how to target the best products.
“Foolhardy spending can have a major cost burden throughout value chain. Spending one dollar on R and D means you need to spend three on extension and 10 on commercialisation,” Mr van Delden said.
