Agtech Action | Week of 06.18.22 - 06.24.22
Agtech Action is a weekly newsletter highlighting current events in the world of agtech, and some light-hearted commentary
Americans are buying less gas, Costco is facing a lawsuit and cheese-scented nail polish (thanks Velveeta). Grain terminals attacked in the Ukraine, John Deere CEO to address CES 2023 and the agtech impact in Africa.
The theme of the agtech week is maintenance. More broadly, with uncertain times in the financial, agriculture and global markets, it’s perhaps a time to maintain what you have. We discuss this and more in this week’s newsletter.
Food and the World:
Democrats force House passage of ag bill they claim will cut prices
40 Seasons: How it pays to be an Unconventional Rancher
EPA instructed to take another look at glyphosate (0:00 mark)
Hot And Dry Conditions Increasing Drought Concerns in The Corn Belt
Ukraine Soon to Receive First Temporary Storage for 2022 Grain Harvest
Biden to Call on Congress to Suspend Gas and Diesel Tax This Summer
U.S. Supreme Court Rejects Bayer’s Appeal in Roundup-Cancer Case
Brazil Corn Exports Soar as Ukrainian Supplies Blocked - Port Authority
WTO breaks negotiating slump with package of deals
Senate Committee Approves Two Livestock Marketing Reform Bills
Turkey Says it is Investigating Claims of Russia Shipping Stolen Ukrainian Grain
As Bird Flu Outbreaks Slow, USDA Urges Readiness for Autumn
Americans buying less gas (0:00 mark)
Bipartisan support for ‘Keep kids fed act’ (0:00 mark)
Costco facing lawsuit accusing of violating state laws against livestock neglect (0:35 mark)
Restaurants adding surcharges, offset higher costs for food, fuel and wages (1:00 mark)
Texas Has the Worst Corn in the Country, Drought Largely To Blame
Agtech in the News:
John Deere CEO to Address Technology's Role In Feeding The World At CES 2023
U.S. EPA Ordered to Reassess Glyphosate's Impact on Health, Environment
Agtech can have an outsized impact in Africa (we agree!)
GMO Wheat Searches for a Spot on the World's Table
Russian Forces Attack Two North-American Owned Grain Terminals in Ukraine
Fun:
Want to have lunch with Warren Buffett? It will cost you $19M (0:30 mark)
Cheese-scented nail polish (1:00 mark); by Velveeta
Helpful Resources:
Crypto meltdown, Celsius crash deepen rift between Web3 fans and skeptics
Quantitative Perspectives: US PE Enters a New Regime
US could target tech investors' favored sectors in move to limit capital flow to China
Interesting Reads:
The unsolved problem: water (great newsletter by Janette Barnard)
Opinion: Time to Take Animal Rights Harassment More Seriously
Raise like an Egyptian (funding raised by startups in North Africa since 2019)
Walmart installs intuitive tablets in freight trucks for more communication
U.S. Recession Probability Soars as Inflation Pains Worsen
Private Equity’s Opportunity in Supply Chain Technology
Kroger to expand fresh delivery with new fulfillment center
Will a Fuel Boycott Lead to Decreased Prices at the Pump?
Did VC Fly Too Close to the Sun?
Black New Yorkers twice as likely to die from heat stress
House Committee Votes to Ban Sale Of U.S. Farmland to Russia and China
The Oyster Shuckers Turned Oyster Farmers
Meet the Peecyclers. Their Idea to Help Farmers Is No. 1.
Cognitive Dissonance in America’s Dairy Land
Finance:
Adaverse Supports AfriBlocks To Launch its Pan-African Freelance Marketplace
New Zealand’s livestock emissions tax is a sound idea (no it’s not)
Power Sustainable secures C$210M first close on Lios Fund
Australian farmland returns top 14% on annualized basis – ANREV
Symbrosia raises $7 million to reduce livestock methane emissions
CAP exits Gabon forestry asset to TotalEnergies
Theme of the Agtech Week: Maintenance
Maintenance is the theme of the agtech week, inspired by the growing fears of a lingering recession, inflation abound among many other external factors affecting food and agriculture. While we traditionally think of maintenance within the context of an industrial operation, your car or other more personal examples, I would like for us to frame maintenance within the context of an agtech startup or founder.
As a startup, founder or innovator, the challenges are well-known: lack of capital, market/customer fit, cash flows, trusted and strategic partners, talent sourcing among others. Compound that with a global recession, poor performing traditional asset classes, and the cost of borrowing money increasing and you have yourselves a tough environment for agtech. This is not meant to be a talk about the problems edition of our newsletter; let’s talk about what to do about it.
In spite of these conditions, investors view agtech as a potentially high performing asset class with food shortages, procurement and inputs becoming increasingly global issues. If you are one of those agtech startups that gets funding, the next task is what to do with it. With this newfound, or existing cash, you may be tempted to aggresively chase growth (e.g. new markets, customers, team expansion or other). What if you used your cash to further refine your offerings, add new services to existing customers, or give your current team more tools to do their job. This could yield you the 2x to 5x return that other paths would have but with more investment. Or what if that extra cash bought you a few more months of runway so you can wait out this tough market and begin planning for your aggressive strategy for the future. Investors can view your ability to get more use out of your cash, i.e. maintenance, as a great sign of your growth potential.
Sometimes staying put is the best course. Stay safe and have a great weekend.
BD
Brandon Day is the Chief Operating Officer of The Yield Lab Institute, the global agtech think-tank, non-profit arm of The Yield Lab global network of venture capital funds and accelerator programs. The views, opinions and commentary expressed are solely those of Brandon Day.