Agtech Action | Week of 09.23.23 - 09.29.23
Agtech Action is a weekly newsletter highlighting and commenting on current events in the world of agtech
A big joint venture in agtech, more states legalizing raw milk and 7 in 10 farmers say they have felt climate change. A record farmland purchase in Missouri, food tech VC deal sizes decline, and government shutdown could jeopardize USDA nutrition program.
An innovation conundrum: do I build it myself or buy it from someone else? It’s a question agtech needs to answer—build or buy—and is the theme of the agtech week. We discuss when you should build and when you should buy in this week’s newsletter.
Food and the World:
Russian air strikes on Ukraine kill four, damage grain and port facilities
Shutdown would jeopardize USDA nutrition program and crop reports
How Will A Looming Government Shutdown Impact Agriculture?
USDA Crop Progress report: Corn harvest 15% complete
More and More States are Legalizing Sales of Raw Milk
DOL opens child labor investigation into Tyson, Perdue facilities
Defense bill may be route for limiting foreign farmland ownership
Farm bill deliberations may stretch into 2024, analysts say
The One Factor That Could Make Or Break the Farm Economy Over the Next 12 Months
Farmers in 5 states have harvested at least 30% of their corn crop
$1.4 Billion In Federal Funds to Improve Rail Safety and Service
Mexico researchers show progress on drive to replace U.S. corn imports
Rampant Heatwaves Are A Growing Threat To Caribbean Food Security
'Many farmers are devastated': Fires cost South African farmers over R1B of livestock, says Agri SA
Brazil top court rejects time limit on Indigenous land claims
Agtech in the News:
Biofortification Meets Aeroponics
Chatbots Are Not People: Designed-In Dangers of Human-Like A.I. Systems
John Deere and DeLaval form milk production partnership
Above Food Corp Acquires AI-Based Genomic Assets from NRGene
Yield Lab Latam and AAPRESID Partner
BASF Agriculture Solutions Unveils Innovation & Sustainability Strategies in Egypt
Hershey expands executive ranks with first chief technology officer
Combining the best of regenerative and cellular agriculture
5 Ways AI Technology Will Improve Agriculture in 2024
Meet the Climate-Defying Fruits and Vegetables in Your Future
As farmers gray, Japan pins hopes on robots and smart agriculture
AGCO to acquire Trimble ag assets and technologies
SolAgra Partners with University of Delaware for Pioneering Agrivoltaics Research
Corteva Files Lawsuit Against Inari to Safeguard IP
Fun:
SOLD! 115 Acres of Missouri Farmland Just Sold For $34,800 Per Acre, Smashing the Previous Record
Is Broadband the Secret to Reviving Rural America?
One Ag Retailer Is Bringing Climate Smart Grant Work To the Fields
Pint-Size Dairy Farm Girl is a Big Inspiration
Iowa State Football Players Go Viral in 'Purchase Moore Hamann Bacon' Campaign
Helpful Resources:
Q3 2023: PitchBook Analyst Note: Introducing the Pre-Seed Dataset
Why PE industry consolidation is a double-edged sword
6 ways to stay safe while handling cattle
Q3 2023: Allocator Solutions: Timing Is Everything
2023: Internet of Things Overview
Interesting Reads:
Health needs of women in ag overlooked
Tearing down dams could save Western rivers — and also make climate change worse
A chicken gift to the dairy biz
Plants, Not People, May Fall Prey To The Next Global Pandemic
Ruto pitches Kenya's tech plans to Silicon Valley amid concerns
Exclusive: Nigerian fintech PayDay is looking to sell the company six months after $3M raise
7 global investors discuss African tech post-Kauffman Fellows’ first summit on the continent
The only way to guarantee startup success
Building a Better Agricultural Trucking Market
Adaptive Equipment for the Most Dangerous Profession
An Arizona malbec? How the arid state became America’s newest wine country
Research: 7 in 10 farmers say they have felt climate change
House defeats anti-checkoff amendment
Purdue to develop SARS-CoV-2 animal field test
Working harder than ever: the last remaining Japanese American farmers
Finance:
Ontario Teachers’ acquires KKR’s GreenCollar stake in A$600M deal
Food tech venture capital deal sizes decline for the first time in seven years
Four challenges stifle natural capital investment
Kern Tec Raises €12M in Series A Funding to Upcycle Food Waste
Sentinel Fertigation Secures $2.5M in Seed Funding
Harpe Bioherbicide Solutions Partners with Corteva Agriscience and Broad Institute
You can now get ‘more than $50’ for a carbon credit on the VCM
Paine Schwartz closes Fund VI on $1.7B
SLM Partners and Impact Ag Partners to launch agri carbon fund
New Canadian Investment Fund Will Drive Sustainable Biotechnology For Food And Ag
Biologicals Leader Biobest Raises €120M, Acquires Brazilian Biological Solutions Company Biotrop
Scentian Bio Closes $2.1M Seed Round for Insect-Based, Ultra Sensitive Taste And Smell Solutions
Generation IM offshoot Just Climate launches natural capital strategy
Theme of the Agtech Week: Build vs. Buy
Do I build or do I buy? It’s the theme of the agtech week and a great question that must be asked of, and answered by agtech. Let’s take a stab at it.
First, we have to remember that not all agtech is created equal. More specifically, that building a highly specific, and technical animal health product is not the same, nor does it have the same commercial path, as building an app that allows farmers to connect with agronomists for operational support. Highly technical products require a disciplined team, time to develop (regulatory and commercial), and typically large expenditures. An app, or software solution, requires a strong, technical team to build but can do so with less expenditures and a more predictable commercial timeline, especially if it does not require regulatory hurdles to overcome.
Second, you have to evaluate where you are in the market, money (or capital) and capacity (e.g. are you a team of one, or a team of ten). Let’s do a thought exercise. If you fall into this category:
You have a good reserve of capital, or you can raise a good reserve of capital
You have a strong team (technical and commercial) with bandwidth
You are targeting a developing market that is less competitive (> 5 incumbents) than other markets
I suggest you build your technology.
If you fall into the following category:
You have a limited pool of capital, or you do not have an extensive network of capital or investors
You are a team of one, or two
You are targeting a developed market that is moderately competitive (< 5 incumbents) than other markets
I suggest you buy your technology.
Remember, this is from the perspective of the innovator/entrepreneur. The criteria changes if you are an investor (angel, CVC, or other), multinational or someone else looking for a technology stack to bring to market.
Building takes time, will and perhaps most importantly an unknown amount of capital. Buying also takes time, but it can take less time and buying sets a minimum starting point for capital. Given the current agtech market, you may find a nice technology stack (or business model, or operation) at a marked down price versus recreating that and building it yourself. I suggest that entrepreneurs entering agtech consider this proposition before making any decisions.
Thanks for reading.
BD
Brandon Day is the Chief Operating Officer of The Yield Lab Institute, the global agtech think-tank, ecosystem builder, non-profit arm of The Yield Lab global network of venture capital funds. The views, opinions and commentary expressed are solely those of Brandon Day.