The future of agriculture: the resilient farm

Published on November 18, 2021

COP26 ended this weekend on a bitter note and some tears due to a weaker than planned agreement. While this is somehow unsurprising, it is nonetheless a disappointment. As was the fact that farming was not on the agenda. For example, if a deal has been struck on methane reduction, the goals mainly mention the emissions linked to fossil fuel extraction and transport, not those due to animal farming (which alone represents 18% of the global greenhouse gas emissions).

And beyond global warming, the pandemic has shown all over the globe how stretched and fragile the food supply chains were. That’s why in our recent report on FoodTech Trends we identified The resilient farm as one of our top megatrends. Multiple trends are driving us toward a more sustainable and resilient farm: the growing appetite for proximity, climate change concerns notably in terms of arable land, and the convergence of technology and farming.

This trend is going in two very different directions:

  • First, we observe a trend toward making the current farm smarter and more efficient, notably with precision fermentation and new crops (with higher yields and protein content) and new animal feed. It is also becoming more resilient with robots to perform repetitive and arduous tasks (for example, weeding performed by startups such as Naïo).
  • Second is the space comprising urban, indoor, next-generation farms. These startups are bridging the gap between the point of production and the consumer and reducing the space needed to grow food. And again, they offer cities a chance to become more resilient by growing food inside their limits.

It is always interesting to see the difference between the “hype” and what entrepreneurs do (and what investors finance). If sustainability is key (and regenerative agriculture discussed), it seems that resilience (and hence autonomy) is a much more suitable word to discuss the future of agriculture.

Finally, a precision: it has always been DigitalFoodLab’s conviction that AgTech is a part of the FoodTech ecosystem and not a standalone ecosystem. Indeed, we see more and more convergence and integration in the farm-to-fork value chain. For example, without a more resilient farm, there is no future for most of the alternative protein technologies without innovation in new crops (to feed cultivated meat startups’ cells or precision fermentation companies’ bacteria).

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Use case: project for a global F&B company looking to map its AgTech innovation ecosystem and the best startups to partner with

What we did:

  • Mapping of the AgTech ecosystem: startups, research regulators, and other leading companies.
  • Discussion to select areas to focus on.
  • Analysis of the information to reveal the trends and a model to analyse eventual partners.
  • A workshop to validate the opportunities based on our recommendations.
  • Scouting of relevant partners followed by introductions.

Results:

  • Mapping the different categories of innovations in AgTech that should be considered now to create long-term benefits for the business.
  • Identification of key partners (an incubator and a couple of startups).

Use case: project for a CPG company on the healthy ageing ecosystem

What we did:

  • Education of the board through a couple of workshops to define the perimeter
  • Identification of key opportunities and threats created by long-term evolutions (technologies, business models, behavioural changes).
  • Deep dives on each of the priority categories.
  • Co-construction of a vision on how the company should address these challenges.
  • Identification of partners (startups, incubators, funds) to move forward.

Results:

  • Creating a consensus on which categories to prioritise and how to address them.
  • Implementation of an open innovation strategy through the development of partnerships.

Use case: project for a global CPG company to develop a strategy on the healthy ageing ecosystem

What we do (ongoing mission on a subscription model):

  • Kick-off where we present an overview of the AgriFoodTech ecosystem to select with the client the categories to cover and for each, the level of information required.
  • Monthly newsletter: each month we send a newsletter with the articles that we have gathered ranked by relevance, their summaries, and a layer of analysis.
  • Database: we set up a personalised database that will be filled month after month with the information gathered on the companies identified for the watch.
  • Workshops: twice a year with the client’s innovation team and other “innovation curious” team members, we present an overview of the evolutions, key trends and a dashboard of the topics followed by the watch.

Results:

  • A clear, regular and evolutive tool to follow what is happening in terms of innovation on key topics.
  • A forum (through the workshops) to discuss innovation trends and new opportunities.

Use case: opportunity screening for an ingredient company

What we did:

  • Kick-off to define the perimeter of the ecosystem studied.
  • Mapping of the different trends shaping the innovation ecosystem of the client.
  • Analysis of the trends on DigitalFoodLab’s trend curve and other relevant frameworks.
  • Workshop to discuss DigitalFoodLab’s recommendations on key trends to prioritise

Results:

  • Shared view of the innovation ecosystem for the client with a view of the trends to prioritize.
  • Clear document (personalised trend curve) that can be easily shared internaly to explain the company’s innovation choices and which can be then updated each year.

Use case: scouting for an agriculture coop

What we did:

  • Kick-off to define the perimeter of the client, the goals of the scouting (partnerships) and the criteria on which startups should be evaluated.
  • Set-up scouting: we selected the first batch of 20+ key startups following the criteria of the client.
  • On-going scouting: then we set up a quarterly scouting of about ten startups.
  • For each scouted startup, we created an ID card with key information such as the business and technological maturity, funding, and corporate partnerships. We also added an explanation of why we selected this startup.

Results:

  • An ongoing and evolutive scouting are matching the client's criteria and its capabilities in terms of deal flow.

Use case: working on an acquisition process for a CPG company

What we did:

  • Kick-off to define what the client is seeking, notably in terms of maturity.
  • Workshop with the client based on a mapping of the different innovation ecosystems adjacent to its activities to select some priorities and discuss inspiring examples of startup acquisition stories.
  • Identification of 20+ targets.
  • Workshop to select the most relevant to engage with.
  • DigitalFoodLab worked as a sparing partner during the acquisition process, notably to help design how the acquired startup could be integrated into the overall company’s strategy.

Results:

  • Different results from traditional M&A processes with a focus on the client’s innovation strategy.
  • Identification of a good match for an acquisition.

Use case: market due diligence on sugar alternatives

What we did:

  • Kick-off with the client to discuss its interest on this category, its expectations and existing level of information (notably on the target company).
  • Mapping of the ecosystem to analyse the different existing alternatives and technologies to compare them.
  • Interview (calls) with relevant startups made by our internal biotechnology expert.
  • Recommendation on whether to invest or not.

Results:

  • Clear view of the ecosystem and of the reasons to believe (or not) in each sub-category.
  • Enforceable recommendations based on facts and expertise.