Agtech Action | Week of 03.30.24 - 04.05.24
Agtech Action is a weekly newsletter highlighting and commenting on current events in the world of agtech
Bird flu found in dairy herds in 5 states, plant-based protein from microalgae and a Wisconsin organic farm sells for over $16k per acre. Gene-edited pork is here, first sugarcane hybrid genome sequencing is complete, and lady carnivores are taking over TikTok.
Success for agtech can be achieved many ways and one way is choosing the appropriate business model. The right business model can set up agtech for a clearer path to success. We’ll explore some business models and share a video update on the Soy Innovation Challenge in this week’s newsletter.
Food and the World:
Port of Baltimore Shuttered: What Does It Mean for Farm Equipment?
Bird flu found in dairy herds in five states
Changes are coming to food safety and traceability regulations — are retailers ready?
Cherries from Quebec restricted from entering U.S.
Farmers are ready to plant as soon as the weather cooperates
New Regulation: Dairy Cattle Entry into Nebraska Now Requires Permit Amid HPAI Bird Flu Concerns
USDA confirms bird flu in 12th dairy herd, is testing more
Winter wheat heading has started in three states
Farmers in six states have started planting corn, USDA says
CDC: Bird flu virus lacks changes to make it a greater threat to people
Dairy and beef cattle operations should review their biosecurity plans
Congress approves $15 million for EID tagging of cattle
Animal-rights groups sue FDA over allowable feed additive
Farm bill odds growing longer, says analyst
Texas-Sized Problems Hit the Lone Star State, but Ag Commissioner says ‘Things are Getting Better’
USDA allocates $1.5B for climate-smart farming
HPAI Now Detected on Ohio Dairy: Strange Bird Flu Concerns See Growth
99 Cents Only Stores to shutter all 371 locations, sell real estate assets
Agtech in the News:
dsm-firmenich and Interstellar Lab Forge Partnership to Advance Botanical Ingredient Production
Could your ranch go fenceless? (Agtech in action!)
From Farm to Fire: First Soy-based Fire Suppressant Hits the Market (this is the type of technology our Soy Innovation Challenge aims to scale!)
Carbon injection discussions involve many farmers
Rare Human Case of Bird Flu Confirmed. Officials Believe it Began on Texas Dairy
EU Approval of NGTs Will Be a Vote in Favor of Sound Science
Costa Rica joins countries that allow commercial production of genetically edited crops
Complete sugarcane genome sequence opens up new era in breeding
Danish scientists unlock plant-based protein source from microalgae
US farms are making an urgent push into AI. It could help feed the world
Vaccine protects cattle from bovine tuberculosis, may eliminate disease
Fun:
Murals in rural Iowa county showcase its history and culture
5 treats for your Easter dessert table
Wisconsin organic farm goes for $16,250 per acre
Helpful Resources:
2024 Emerging Space Brief: Trust & Safety Tech
Your board should protect you!
Q1 2024 PitchBook-NVCA Venture Monitor First Look
Are You Disposing Pesticides Properly? Here’s How to Know
Q1 2024 IPO Pipeline: Identifying Potential VC-Backed IPO Candidates in 2024
Interesting Reads:
What do Chick-Fil-A and Panera's supply decisions indicate?
Gates Ag One Opens New Headquarters in St. Louis’ Cortex Innovation District (great news for the STL agtech ecosystem!)
The Black Farmers Growing Rice
Soiled Again: The Organic Transition Is Underfoot
Genetically Edited Pork Has Entered the Food Supply
Cracking innovations: The premiumisation of Easter confectionery
The Brutality of Sugar: Debt, Child Marriage and Hysterectomies
Meet the Lady Carnivores Taking Over TikTok with Butter and Raw Meat
Surgeons Transplant Pig Kidney into a Patient, a Medical Milestone
Why the infant formula shortage is still a concern
Q1 2024 in a nutshell for startup funding in Africa
Can mRNA vaccines help boost livestock production?
Managing canola pests using beneficial insects, spiders and mites
Upcoming solar eclipse brings concerns, opportunities to farmers
Finance:
Are the fundamentals of natural capital and infrastructure getting closer?
Irish startup MyGug raises €900K to convert food waste into renewable energy (Congratulations to MyGug, a Yield Lab Europe portfolio startup)
Stockholm-based Agteria Biotech secures €1.4M from Norrsken Launcher to combat methane emissions
Time-Travelling Milkman Raises €850K to “Cream” Plant-Based Dairy with Sustainable Sunflower Fat
Climate fundraising tops $9.4B with World Fund’s latest effort
Australian wine back on the menu in China as tariffs lifted
‘Timing is perfect’ for Australia debt expansion – PGIM
Aqua Capital closes Fund III on $450M
Onego Bio Closes $40M Series A For Animal-Free Egg Protein
Orchard Robotics Gains $3.8M to Build Robots and AI To Power Precision Crop Management
Clean Food Group Raises Another £2.5M for Sustainable Fats and Oils Tech
AAM sells seed asset from Diversified Agriculture Fund
REDUCED Secures €6M to Transform Food Industry Side Streams into Sustainable Ingredients
Soy Innovation Challenge 2023 - Commodity Classic Press Conference
A video wrap up of the Soy Innovation Challenge’s exciting press conference at Commodity Classic. The four finalists talk about their soy innovations and the partnerships they are looking for and United Soybean Board’s Mac Marshall talks about the importance of the Challenge and these innovators to develop new markets for soy farmers.
Theme of the Agtech Week: Business Model
Agtech must be profitable, that is a given. But how does agtech get there? I believe that selecting the right business model upfront can set agtech up for success. How do we do that? Let’s categorize different business models for agtech.
In my limited experience, I see the following business models:
Asset heavy vs. asset-lite: think large, capitalized facilities and operations (crush plants, equipment, grow facilities, etc.); and on the asset-lite side software, e-marketplace, digital app or service.
Sales cycle: does your technology require you to make only one sale (once they are brought on, you don’t have to re-sell them, for example software, equipment or product that they continuously buy); or does your technology require you to sell and re-sell to the same customer (e.g. a technology-enabled service, one-time transaction).
Product vs. Service: is it a product (e.g. physical, digital) or is it a service that allows more efficient, better use of products, operations, etc. Agtech can be both but it is best to understand which one allows you to differentiate better in the market.
User-dependent or user-independent: I’ve seen a lot of user-dependent agtech, which includes marketplaces, or apps that depend upon the number of users increasing in order to get traction and market share. And I’ve seen the converse where agtech does not need the volume of users but rather the right users to gain traction or it’s being in the right place in the market (you’re a need to an operation).
It’s important to think about how each of these models affects agtech’s path to profitability and success. Do you want to be an asset heavy or asset-lite technology? What about your sales cycle? Do you want to have the make the sale once or more than once? To be a product or a service? How about depending upon the user or not depending upon the user to get market traction? The answer to these questions can either shorten or lengthen your path, make it easier or harder, attract sales more efficiently or less efficiently, and so on. Perhaps I’ll dive into these more in-depth in a future newsletter.
What is your business model? Did I miss any other models? I’d love to hear your thoughts. As always, 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.