Kiwi firms ride crest of global boom
TECHNOLOGY: Investment in the agritech sector is growing fast and it’s helping futureproof our biggest industry.
From the electric fence to the tranquiliser gun, Kiwis have long excelled not just at farming but the technology that goes alongside it. Also known as agritech, this lesserknown sector is going through a global boom period with the advent of internet-enabled technologies such as AI, Internet of Things, and digital twins.
Physical technology in agritech, like automation, biologicals and climate tech, is also at the forefront of this trend, with the impact of AI in hardware creating waves nationwide.
The local agritech sector is no different. According to the TIN Report, the New Zealand agritech sector has grown from a million-dollar ($0.6 billion) industry to a billiondollar ($1.6b) one in just five years, currently growing by 22 per cent year on year.
Group manager at Callaghan Innovation’s agritech activator, Simon Yarrow, says it is one of the ‘natural’ fits to contribute to New Zealand transforming into a tech-driven, highly productive economy.
“New Zealand is a world leader in agriculture. Thanks to our varied climates and terrains, we make a great testing ground for agritech, and brand New Zealand is fantastically strong globally. Basically, we have all the right ingredients for a successful agritech sector.
“Especially as demand increases for solutions to the challenges that global agriculture is facing, New Zealand is poised to be a world leader in agritech, too.”
The global opportunity for agritech is massive (and growing), with the current $46b industry estimated to grow to $126b in 2032.
Yarrow says the backing of agritech is integral for the futureproofing of New Zealand’s entire agriculture sector.
“The agritech solutions we’re seeing come out of New Zealand are world-class, particularly in the dairy,
viticulture and horticulture sectors. But they can’t just be lumped into the tech bucket, they need support from agriculture-specific networks,” Yarrow says.
Some of our most innovative minds occupy the rapidly growing agritech sector, with innovators and farmers meeting at the intersection of technology.
Managing director and founder of mapping and software company GPSIT, Matt Flowerday, has been at the coalface for 25 years.
Flowerday said the agritech sector
Thanks to our varied climates and terrains, we make a great testing ground for agritech, and brand New Zealand is fantastically strong globally.
— Simon Yarrow, Callaghan Innovation
could be slow moving at times but, in recent years, the sector had gained impressive momentum.
“It certainly is an exciting time for agritech at the moment,” he said. “Over the last couple of years, it feels like we’ve been in a breakout period, and it’s gaining momentum every year.”
Having worked with leading Kiwi businesses such as Zespri and Fonterra, Flowerday believes it’s essential for agritech companies to collaborate — a viewpoint he promotes via his role on Agritechnz.
“Technology should empower people and make their lives easier in an increasingly complex world,” Flowerday says.
“We aim to deliver value back to New Zealand growers via our technology solutions to help them continue their mission on the most important industry in the world — agriculture, agriculture touches every single person because we’ve all got to eat.”
Rhys Roberts, chief executive officer of Align Farms, a farming group focused on the future of farming in South Canterbury, has used agritech on his farms for over a decade.
Investing in innovation from an early stage, Roberts said he couldn’t think of any part of the business that hadn’t had an impact from the agritech sector.
“I think that there are some tech advances in the industry right now that will literally be a game changer,” Roberts said.
“Any technology that helps us optimise our business, that’s what we are trying to do.”
Ten years ago, the industry was looking to get more from less, and now it was about getting even more from even less, Roberts said.
He believes a collaborative and symbiotic relationship between innovators and farmers is key to developing technology that works, and thrives, for years to come.
Gustavo Garza, founder of Milktechnz, a leader in the dairy industry for its innovative automatic cup removers, said he and his team came into the industry with fresh ideas.
These fresh ideas, and the willingness to adapt and work alongside farmers and their needs, have meant Milktech has found success by being adaptable in the agritech sector.
“We came with fresh ideas, new product, New Zealand made for a New Zealand market and took the sector by storm,” he said.
“We have a lot of experience in the marketplace, and we always try to find what our customers need, and we design the product around their necessities and their requirements.”
Developing technology that works for Kiwi farmers in an area with constantly growing pressures, particularly financial ones, is essential to future proofing an industry at a crucial growth period. ■