Farming tech yield needs shared risk

To use simple language, real innovation demands hurt money - a shared commitment with consequences both good and bad.

A record $44b export year for Australian agribusiness has generated a lot of interest and hype, particularly when overlaid with the often quoted need to feed a growing world population, and the rising middle class demand for higher quality food.

Now Australia needs partnerships between farming businesses, investors, technologists, banks, researchers and regulators that are robust enough to both provide and attract capital with an appetite for taking on the risks of implementing innovation.

KPMG has been a leading proponent of the advantages of AgTech, smart fibre Internet of Things, and agribusiness innovation.

Now we have put mud on the boots and sweat on the brow as the firm goes farming after investing in prominent Australian AgTech startup, The Yield.

It is an investment that promises to deliver first hand insight into the challenges of implementing innovation, not just on farm, but with the manufacturers, technology companies, telecommunications and government regulators that all contribute to food and fibre production.

You cannot underestimate the value of getting involved at the operational frontline, be that on the farm, in the logistics supply chain, or sharing the customer experience, because the best innovation only comes from doing.  

Daily reported investment activity, not only from traditional investors in the sector, but from the rapidly expanding technology, information and innovation sector, overlooks the reality that real innovation risk is still sitting heavily on the shoulders of those that grow, transport, process and sell food.

At the big end, corporate farming operations are bringing rapid innovation and investment in new practices.

But for the majority of farming and food processing businesses in Australia, already stretched finances are struggling to invest at scale or to decipher what innovation represents the best investment now.

If Australia is to compete globally rapid uptake of technology and data driven operations is essential, but it will require a commitment to invest from a range of stakeholders not traditionally associated with direct investment in the sector.

Shifting from farming to smart food and fibre means applying technology that often has its origin well away from the farm.

Robotics, digitised landscapes, dynamic management platforms, complex data analytics and a host of other rapidly evolving technologies are part of a growing suite of technologies that can transform the whole supply chain.

It will take vision, bravery and real investment on farm and in factories, in logistics and points of sale, to deliver the industry wide digital transformation required.