Article by InterSearch USA – Charles Aris.
The world’s eighth billionth baby was born in 2022. That event marked a turning point in human history.
There are now more people living on Earth at one time than ever before, and it’s our responsibility to invest in a future where everyone has their basic needs met – the most important of these needs being food and water.
Agriculture technology, or AgTech, is an industry with big promises. Every advancement made in farming has the potential to improve our food production capabilities and usher in a more prosperous future. Savvy investors are picking up on this reality, but there are several crucial components to the agriculture world they should be aware of.
AgTech investors must understand the end user.
Even the most groundbreaking agricultural products will fail to make a difference if their intended customers aren’t incentivized to use them; this is the mindset you must have when investing in AgTech.
Farmers have been met with a variety of new tech products over the past few decades, promising to improve operations, increase efficiency and raise their bottom line, but very few of these products turn out to be the “next big thing.” Because of this relationship, many farmers have grown to be naturally guarded against emerging products from tech companies.
If you’re thinking about joining the world of AgTech, you must be willing to familiarize yourself with its consumer base on a more personal level. In many cases, this means working with executives who have a history in agriculture. Having a team that can earnestly connect with farmers while standing behind your company is incredibly meaningful as you take products to market. Also, on a more personal level, getting to know people from agriculture will help you gain a more dynamic understanding of the world you’re now a part of.
Having a strong business development team is essential for success.
In the same realm of connecting AgTech companies and farmers, your business development team must be highly skilled in communicating the right message to the right people. The onus is on AgTech firms to thoroughly, and honestly, explain their products to their industry partners, but they must also take this message to the public.
Building a strong marketing and communications team should be a top priority for anyone in this field. New and innovative products create healthy skepticism from consumers and the public, so it’s important to be transparent about who you are and what your company does. Having a trusted medium between your scientists, the public, and farmers is critical to increase understanding from all perspectives.
There’s a high potential for inorganic growth.
The AgTech market is piquing interest across the investing spectrum in 2023, and we’re seeing a high number of transactions taking place between industry leaders. This is partly because the industry has been growing for decades, and few investors are attempting to reinvent existing products. Major players are instead looking to join forces with established organizations.
Unlike other markets, AgTech is also a worldwide industry that will continue to be in high demand. With climate change having a greater impact on food production systems across the globe, farmers need sophisticated AgTech to continue feeding the population. This has created a stronger appetite for collaboration in the AgTech world, and we expect large organizations to continue joining forces as their products are viewed as more of a necessity in the coming years.
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