This sponsored post has been published in partnership with AgriFutures growAG. The author is Casey Dunn, a writer and corporate affairs consultant based in Orange, New South Wales.
A survey of New Zealand agritech innovators shows they have a strong appetite for global expansion, but most are looking across the Tasman to find collaborators and new markets in Australia first.
At this year’s E Tipu Boma Agri Summit in Palmerston North, a survey of 85 delegates revealed that 64% had considered launching or had launched in an overseas market, and 68% said they would consider launching in Australia first.
The survey, conducted during AgriFutures Australia’s growAG session, asked five key questions regarding market expansion and perceptions of the agrifood and technology innovation ecosystem in both countries.
The key challenges for agritech startups and scaleups in Australia and New Zealand were identified by delegates as climate volatility, capital investment, finding collaborators for farm trials, and sustaining business for the long term.
To read the full report, visit: NZ Market Research – growAG
Where else but Australia?
New Zealand delegates described Australia’s innovation ecosystem as “well-funded, forward-thinking, and more accepting of new technologies,” with a higher tolerance for risk and “untapped” potential.
This came as no surprise to Brendan O’Connell, CEO of Agritech NZ.
“It makes absolute sense that New Zealand entities launch in Australia as our closest neighbour – it’s a natural space for companies to innovate in, people know about its food production and ag practices, and they get a warm welcome,” he said.
“But there’s always the challenge that farming is a local activity, so NZ innovators need to translate solutions for functionality and presentation, assess how that fits within a value chain in a market, and adapt. Our startups are aware of that.”
The factors identified by E Tipu delegates as making international markets attractive to land innovation were scale, access to capital, market opportunities, connections and networks, and policy and regulatory environments.
Of those who had considered launching or launched in an overseas market:
- 24% had launched in Australia
- 10% in the USA
- 6% in Singapore
- 5% each in China and the UK
Just over a third, 35%, had not considered expanding into international markets.
To read the full report, visit: NZ Market Research – growAG
Enticing with strong agricultural size and industries
New Zealand agtech’s appetite for launching in Australia reinforced the strength of Team ANZ, according to Harriet Mellish, AgriFutures Australia’s General Manager, Global Innovation Networks.
“Sixty-eight percent is a significant number, and it shows that Australia is doing well in offering attractive incentives for overseas innovators and tech firms to establish themselves in several states, and that was reinforced in a number of conversations we had at E Tipu Boma Agri Summit,” Ms Mellish said.
“It’s a similar environment to New Zealand but our population size and agricultural industries offer startups and scaleups the opportunity to grow their market and customer base. In terms of economics and trade we’re both net exporters, so it’s critical that we maintain and grow our markets. Agritech plays a key role in supporting that.
“The climate and sustainability issues are global but it’s a common area of focus for both nations. Workforce and skills gaps are also areas we’re really keen to find solutions for, as are rising input costs and productivity – areas that every ag producer sees as a challenge.”
Ms Mellish hopes to ensure a continuing dialogue between New Zealand and Australian agritech entities and supports collaboration between the two to address common challenges.
“For us it’s really important to partner with and support Agritech NZ or to highlight opportunities we have in ag research, to show that we could be one market,” she said.
Two countries united by one vision
Brendan O’Connell agreed, saying the two counties are aligned in their agricultural visions.
“Even though New Zealand and Australia understand what’s the same and what’s different, the rest of the world looks in this direction and they see us as one entity, one region, so it makes a lot of sense to collaborate to go further afield,” he said.
“Overseas investors will very often make sure they visit both countries, so it’s a case of doing what we learn together in terms of the first market approach locally, then presenting as one internationally.
“Both countries have been exporting agritech solutions for a long time, so it makes good sense for us to be presenting shared views. There are also differences in government policy in each region, and collaborations help to buffer that.”
For more information, visit growAG.
Read the orginal article: https://agfundernews.com/new-zealand-agritech-innovators-focus-on-global-expansion-starting-in-australia
