Agtech header
Insight

Is Agtech the Answer to Smarter Farming & Food Production?

Investment

Think agri-food investment and for most thoughts of old-fashioned fixed assets such as land, grain elevators, heavy processing plants or fleets of vehicles are conjured up. Agri-food and technology investment are seldom synonymous in investors’ minds. This perception defies the reality as the agri-food industry has long been at the forefront of developing and adopting new technologies. Now investors appear to be increasingly alive to the opportunities agtech offers.

Take for example ChemChina’s recent $43 billion bid for Syngenta, the world’s largest agrichemical company. The deal is reportedly motivated by the promise Syngenta’s seed and agrochemical technologies offer towards addressing Chinese food security fears.

Mega deals are not the sole focus of agtech investment. According to a recent AgFunder report the food and agriculture technology sector attracted US$4.6 billion in investment in 2015, almost doubling the previous year’s total (US$2.4 billion), and a staggering 920% increase on the 2012 figure. Average ticket size tracked by AgFunder amounted to just US$6.8 million.

Potential Bubble?

While investor’s appetite for the food & beverage sector shows no sign of abating, should we be concerned an investment bubble is forming?

According to KPMG, a record breaking US$128.5 was invested in venture capital backed companies in 2015. Despite growing by a factor of 9 in just three years, agtech still attracted just 3.6% of this investment – a disproportionately small share of investment, in our view, given the myriad of potential applications for technological innovation in the agri-food sector.

Make informed agtech investments

The agtech industry is booming, spurred on by promises of greater productivity, sustainability, and return on investment. As more and more investors engage with this growing sector, it is crucial that they do so with a comprehensive understanding of the agtech landscape to avoid potential investment pitfalls.

At Farrelly Mitchell, our agtech consultants deliver actionable data and recommendations on the most effective agtech investments within the industry. We have a deep understanding of the latest technology & innovation revolutionising the industry, and we can identify suitable agtech and digitalisation tools to maximise your productivity and efficiency. Contact us today to embrace change and transform your operations.

related-agribusiness-services

Related services and expertise

Download our Agtech & foodtech Insight

Is Agtech the Answer to Smarter Farming & Food Production?

Author

sean@initiate.ie

Trending insights

✎ Subscribe today

Stay up to date with the latest agribusiness publications.

More insights

Blog
7 min read
  • CEA
  • Agtech
Vertical farming systems promise to make massive changes to global food production, however challenges remain for investors and operators. . . .

Subscribe to our newsletter

Receive the latest updates from the agribusiness world, including fresh insights and more, directly in your inbox.

Get in touch

Our team are ready to help you on the pathway to achieving your goals in food or agribusiness.

This form collects your name, email address and contact number so that Farrelly Mitchell can communicate with you and provide assistance. Please check our privacy policy to see how we protect and manage your submitted data.

Speak with our food & agribusiness experts

Want to call us directly? We’d love to hear from you.
Here’s how you can reach us.