Agtech companies are the driving forces to a more sustainable farming practices, as their missions are aligned with the fundamental principles of sustainable agriculture.
Agritech presents an unprecedented opportunity for transformative change across the agricultural value chain, numerous studies have confirmed. However, strategic private sector investments and enabling policy framework are needed to make that happen. This is where Agritech companies come into play. Developing countries, often with limited resources and infrastructure, need to create a safe haven for a dynamic and vibrant AgriTech ecosystem that supports careers in agronomy for young generations and harness the opportunities in the agricultural sector for all stakeholders in the value chain.
Sustainable farming will be driven by profit-for-purpose agritech companies because their missions are aligned with the fundamental principles of sustainable agriculture. And more importantly, they develop innovative technologies and solutions that address common challenges faced by farmers, particularly in developing countries, with a focus on enhancing productivity, and improving farmers’ welfare and preserving natural resources.
The potential of Agritech to help us realize sustainable agriculture is noticeable in the growing investments in the sector. AgFunder's AgriFoodTech Investment Report reports that Agritech funding surged 85% in 2021, reaching a record $51.7 billion. As Fintechs revolutionized financial services, AgriTech startups in emerging markets like India and Indonesia poised to usher in a new era of efficiency and innovation in the agricultural sector.
Agritech companies are at the forefront of the sustainable agriculture revolution, using innovative technologies to address the challenges of feeding a growing population while preserving the environment. Here are four key ways agritech is contributing to a more sustainable future for farming:
The global demand and supply for precision farming are growing steadily, thanks to Agritech companies breaking into new markets and developing innovative solutions. These companies recognise that precision farming is a key enabler for sustainable agriculture. As such, they harness the power of advanced technologies, such as sensors, IoT, drones, and satellites, to assist farmers in collecting and analyzing real-time data on crop health, soil conditions, and weather patterns. This information is then used to make informed decisions about irrigation, fertilization, and pest control, leading to more precise and targeted resources.
Vertical farming offers two significant sustainability advantages: reduced water usage and energy consumption. The number of Agritech companies focusing on these farming practices is increasing, with companies like AeroFarms, Plenty, and Gotham Greens leading the way.IAG, a British company and a pioneer in vertical aeroponic farming technology, is collaborating with commercial partners across the world to address the world's growing food needs in a sustainable manner.
Driven by investment from Agritech companies, the agricultural biotech industry has witnessed a remarkable surge in growth. From a value of $3 billion in 2017, the industry doubled in size to reach $6.2 billion in 2020. Solutions in this industry often focus on developing crop varieties that can withstand adverse weather conditions, resist pests and diseases, and produce more yields. To further combat food loss, Agritech companies are pioneering innovative solutions like modified atmosphere packaging (MAP), which uses controlled gas environments to extend the shelf life of fruits and vegetables, minimizing post-harvest waste.
These technologies not only optimize water use but also ensure energy and land use efficiency. Some AgriTech companies build pumps that are powered by solar energy and water sensors that can be strategically placed in the fields to monitor soil moisture levels, ensuring that only the necessary amount of water is applied to each plant. Tracxn, a data platform has created a list of over 80 smart irrigation startups across the world from, aiming to address the challenges of water scarcity and ensure sustainable agricultural practices
EdenFarm is an Indonesian B2B food supply chain platform that connects local farmers directly with restaurants and cafes.
Innovation: EdenFarm connects farmers and culinary businesses through a suite of technological solutions that streamline the ordering, supply, and demand processes. This include:
Impact on Sustainability: Since 2017, EdenFarm has been bridging the gap between farmers and culinary businesses, bringing fresh produce directly from farms to over 50,000 restaurants and food stalls across Java. Its solution wants to reduce food waste and loss, improve farmers' welfare and bring stability to food prices in the region. By directly connecting farmers to restaurants and cafes, EdenFarm eliminates the need for multiple intermediaries. This streamlined approach helps to stabilize food prices, providing farmers with a more predictable income and reducing restaurants' raw material costs.
Jiva is a platform that provides a complete set of services to improve the lives of smallholder farmers. Launched in 2021, Jiva now supports farmers across three crops in Indonesia and offers advisory services to millions in India.
Innovation: Jiva supports smallholder farmers by providing them with essential services.
Impact on Sustainability: Empowering farmers with increased income and tools for efficient resource usage, Jiva paves the way for a more sustainable agricultural future. Their microinsurance products offer a safety net against climate change, ensuring long-term prosperity and a resilient food system.
3. Eratani
Eratani is an Indonesian agritech company that provides end-to-end support to farmers throughout the entire growing cycle, from securing financing and supplies to marketing their crops. Its mission is to “prosper Indonesian farmers by building a strong agricultural ecosystem.”
Innovation: The VC-backed startup registers farmers into an agricultural assistance programme vai a mobile app. Through these app, Eratani provides:
Impact on Sustainability: Eratani's comprehensive approach to agricultural support is fostering a more sustainable and equitable agricultural sector in Indonesia. By empowering farmers with financial resources, sustainable input usage practices, and fair market access, Eratani is contributing to a future where Indonesian agriculture can thrive in harmony with the environment.
Agritech companies face a constant struggle to balance profitability with their social mission. Ensuring financial sustainability is crucial for long-term viability, but it can conflict with the need to invest in initiatives with delayed financial returns. This often poses a high risk of service closures, layoffs, or even complete shutdowns. For example, some of the Agritech industry-wide layoffs reported in India in the last one year are due to financial constraints.
Investment in agricultural data assets is challenging and costly due to the inherent nature of agricultural data and the limited resources available to farmers. Agtech startups often encounter difficulties in developing and deploying solutions due to inconsistencies and non-standardized data practices within the agricultural sector. Besides, rural areas lack access to reliable and affordable internet connectivity, which is essential for transmitting data from farms to cloud-based AI platforms.
The slow adoption of agtech solutions among farmers is hindering the growth of agtech startups.
A 2023 report by McKinsey shows that most funding for agtech startups in the last decade doesn't progress beyond the initial funding stages, attributing this failure to challenges in building a substantial customer base. Despite affordable farm software, the high cost of agricultural hardware and the lack of perceived return on investment remain significant barriers to adoption for farmers.
From volatile market prices and unpredictable weather patterns to evolving consumer preferences and a dynamic regulatory landscape, the agri-sector needs all the support it can get from profit-for-purpose agritech companies to adapt, innovate, and thrive. Successful agritech adoption can pave the way for a more inclusive and sustainable agricultural ecosystem, benefiting farmers, consumers, and investors who seek ethical and environmentally responsible food production in the long term.
December 12, 2023
Agritech presents an unprecedented opportunity for transformative change across the agricultural value chain, numerous studies have confirmed. However, strategic private sector investments and enabling policy framework are needed to make that happen. This is where Agritech companies come into play. Developing countries, often with limited resources and infrastructure, need to create a safe haven for a dynamic and vibrant AgriTech ecosystem that supports careers in agronomy for young generations and harness the opportunities in the agricultural sector for all stakeholders in the value chain.
Sustainable farming will be driven by profit-for-purpose agritech companies because their missions are aligned with the fundamental principles of sustainable agriculture. And more importantly, they develop innovative technologies and solutions that address common challenges faced by farmers, particularly in developing countries, with a focus on enhancing productivity, and improving farmers’ welfare and preserving natural resources.
The potential of Agritech to help us realize sustainable agriculture is noticeable in the growing investments in the sector. AgFunder's AgriFoodTech Investment Report reports that Agritech funding surged 85% in 2021, reaching a record $51.7 billion. As Fintechs revolutionized financial services, AgriTech startups in emerging markets like India and Indonesia poised to usher in a new era of efficiency and innovation in the agricultural sector.
Agritech companies are at the forefront of the sustainable agriculture revolution, using innovative technologies to address the challenges of feeding a growing population while preserving the environment. Here are four key ways agritech is contributing to a more sustainable future for farming:
The global demand and supply for precision farming are growing steadily, thanks to Agritech companies breaking into new markets and developing innovative solutions. These companies recognise that precision farming is a key enabler for sustainable agriculture. As such, they harness the power of advanced technologies, such as sensors, IoT, drones, and satellites, to assist farmers in collecting and analyzing real-time data on crop health, soil conditions, and weather patterns. This information is then used to make informed decisions about irrigation, fertilization, and pest control, leading to more precise and targeted resources.
Vertical farming offers two significant sustainability advantages: reduced water usage and energy consumption. The number of Agritech companies focusing on these farming practices is increasing, with companies like AeroFarms, Plenty, and Gotham Greens leading the way.IAG, a British company and a pioneer in vertical aeroponic farming technology, is collaborating with commercial partners across the world to address the world's growing food needs in a sustainable manner.
Driven by investment from Agritech companies, the agricultural biotech industry has witnessed a remarkable surge in growth. From a value of $3 billion in 2017, the industry doubled in size to reach $6.2 billion in 2020. Solutions in this industry often focus on developing crop varieties that can withstand adverse weather conditions, resist pests and diseases, and produce more yields. To further combat food loss, Agritech companies are pioneering innovative solutions like modified atmosphere packaging (MAP), which uses controlled gas environments to extend the shelf life of fruits and vegetables, minimizing post-harvest waste.
These technologies not only optimize water use but also ensure energy and land use efficiency. Some AgriTech companies build pumps that are powered by solar energy and water sensors that can be strategically placed in the fields to monitor soil moisture levels, ensuring that only the necessary amount of water is applied to each plant. Tracxn, a data platform has created a list of over 80 smart irrigation startups across the world from, aiming to address the challenges of water scarcity and ensure sustainable agricultural practices
EdenFarm is an Indonesian B2B food supply chain platform that connects local farmers directly with restaurants and cafes.
Innovation: EdenFarm connects farmers and culinary businesses through a suite of technological solutions that streamline the ordering, supply, and demand processes. This include:
Impact on Sustainability: Since 2017, EdenFarm has been bridging the gap between farmers and culinary businesses, bringing fresh produce directly from farms to over 50,000 restaurants and food stalls across Java. Its solution wants to reduce food waste and loss, improve farmers' welfare and bring stability to food prices in the region. By directly connecting farmers to restaurants and cafes, EdenFarm eliminates the need for multiple intermediaries. This streamlined approach helps to stabilize food prices, providing farmers with a more predictable income and reducing restaurants' raw material costs.
Jiva is a platform that provides a complete set of services to improve the lives of smallholder farmers. Launched in 2021, Jiva now supports farmers across three crops in Indonesia and offers advisory services to millions in India.
Innovation: Jiva supports smallholder farmers by providing them with essential services.
Impact on Sustainability: Empowering farmers with increased income and tools for efficient resource usage, Jiva paves the way for a more sustainable agricultural future. Their microinsurance products offer a safety net against climate change, ensuring long-term prosperity and a resilient food system.
3. Eratani
Eratani is an Indonesian agritech company that provides end-to-end support to farmers throughout the entire growing cycle, from securing financing and supplies to marketing their crops. Its mission is to “prosper Indonesian farmers by building a strong agricultural ecosystem.”
Innovation: The VC-backed startup registers farmers into an agricultural assistance programme vai a mobile app. Through these app, Eratani provides:
Impact on Sustainability: Eratani's comprehensive approach to agricultural support is fostering a more sustainable and equitable agricultural sector in Indonesia. By empowering farmers with financial resources, sustainable input usage practices, and fair market access, Eratani is contributing to a future where Indonesian agriculture can thrive in harmony with the environment.
Agritech companies face a constant struggle to balance profitability with their social mission. Ensuring financial sustainability is crucial for long-term viability, but it can conflict with the need to invest in initiatives with delayed financial returns. This often poses a high risk of service closures, layoffs, or even complete shutdowns. For example, some of the Agritech industry-wide layoffs reported in India in the last one year are due to financial constraints.
Investment in agricultural data assets is challenging and costly due to the inherent nature of agricultural data and the limited resources available to farmers. Agtech startups often encounter difficulties in developing and deploying solutions due to inconsistencies and non-standardized data practices within the agricultural sector. Besides, rural areas lack access to reliable and affordable internet connectivity, which is essential for transmitting data from farms to cloud-based AI platforms.
The slow adoption of agtech solutions among farmers is hindering the growth of agtech startups.
A 2023 report by McKinsey shows that most funding for agtech startups in the last decade doesn't progress beyond the initial funding stages, attributing this failure to challenges in building a substantial customer base. Despite affordable farm software, the high cost of agricultural hardware and the lack of perceived return on investment remain significant barriers to adoption for farmers.
From volatile market prices and unpredictable weather patterns to evolving consumer preferences and a dynamic regulatory landscape, the agri-sector needs all the support it can get from profit-for-purpose agritech companies to adapt, innovate, and thrive. Successful agritech adoption can pave the way for a more inclusive and sustainable agricultural ecosystem, benefiting farmers, consumers, and investors who seek ethical and environmentally responsible food production in the long term.
