Sustainability remains the focus for Australian agritech investment
A new report, “mapping the Australian agritech investment landscape” shows the surge is driven by a strong focus on innovative sustainability and climate solutions, aligning with global trends in the sector.
Australia's growing agritech sector is building momentum, with over 550 agrifood tech businesses driving innovation. In 2023, 87% of agrifood tech funding focused on sustainability solutions, reflecting the industry's growing commitment to tackling global challenges.
The Ag Biotechnology category saw the greatest investment of US$86m, followed by Novel Farming Systems at US$33m, Innovative Food at US$24M and then Farm Robotics, Mechanisation and Equipment at US$9m.
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Funding opportunities
General Manager of AgriFutures Australia Global Innovation Networks, Harriet Mellish, said Australia’s agritech sector offers substantial growth potential and that its funding gaps present an opportunity for strategic investment.
“There are a number of sectors where Australian agritech is receiving significant funding, most notably in the Ag Biotechnology space, but there are many other worthy innovations that deserve additional funding and require further investment,” Ms Mellish said.
“While some areas like climate-focused technologies are receiving significant attention, other important areas like resource optimisation and autonomous solutions need greater funding to reach their full potential.
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Sectors poised for growth
But while the future appears bright, Australia’s emerging agritech sectors still require further support.
“Australian agritech startups demonstrate early traction, driving breakthroughs, but they need resources. The goal is for local or international investors to acquire or scale innovations with strong growth potential, leading to long-term returns in comparison to other markets,” Ms Mellish said.
Climate-resilient agritech, biotechnology & advanced genetics, automation & robotics, data-driven agriculture, and alternative proteins & food systems innovations are named in the report as specific areas for future focus for Australian agritech innovation and investment.
“Australia’s rural industries will face transformative change in the coming decade, driven by technology, environment and geopolitics. This creates ongoing opportunities for investors to fuel innovation in Australian agritech.”