🐢 Shaping the future of farming
Plus: NEOM launches sustainable food company Topian
Good morning! NEOM, Saudi Arabia's groundbreaking $500 billion mega-city project, has unveiled its latest initiative, Topian, a company dedicated to revolutionising sustainable food production and distribution.
This move forms a key part of the kingdom's ambitious plan to achieve food security and meet its 2060 net-zero environmental targets.
The new NEOM Food Company has already signed several strategic partnership agreements with KAUST, Tabuk University, Tabuk Fish Company, BlueNalu, Van der Hoeven Horticultural Projects, and Cargill.
Watch this space for more 👀
This week, we’re bringing the curtain down on the climatetech odyssey we’ve embarked on over the past number of weeks. We hope you’ve found it as fascinating as we have, and maybe even learned a thing or two along the way. We certainly have!
To sign-off, we’ll be outlining some of our key takeaways from the World Agri-Tech Innovation Summit that took place in Dubai last week, and drawing your attention to some of our favourite agri-tech start-ups that we had the pleasure of speaking to first-hand at the event.
Let’s dig in! 🌱
Today’s briefing is a 7 min read:
🌍 3 key takeaways from the World Agri-Tech Innovation Summit - Dubai
🤝 Pure Harvest acquires agriculture production facility in KSA from RedSea
🌱 7 agri-tech start-ups shaping the future of farming
📰 What we’re reading about COP28
On the 4th and 5th of December, World Agri-Tech brought together 300+ stakeholders and innovators focused on plant breeding for arid climates, regenerative agriculture, digital agronomy and energy-efficient CEA.
FWDstart was lucky enough to tag along, and gain critical insights into how agri-tech innovators are shaping the future of the MENA agriculture sector.
Our three key takeaways below 👇
1️⃣ Importance of getting the message right
While sustainability is gaining importance, taste, quality and price still reign supreme with consumers.
Shamal Abdulkhaliq Mohammed, Head of Agri-Tech at Innovation Oasis - Silal, highlighted the importance of consumer acceptance, particularly in the context of new technologies.
There’s simply no getting around it - consumers' concerns about novel agri-tech advancements need to be addressed - comprehensively.
Lessons need to be learned from the controversy over GM crops.
Science-based evidence will be key in influencing consumer behaviour.
Equally, if not more important, is tailoring messaging to local contexts, especially considering factors like food pricing and the balance between taste and sustainability.
Khadija Hasan from KRISPR and Sky Kurtz from Pure Harvest Smart Farms noted that while sustainability is becoming increasingly valued, taste currently dominates consumer preferences.
This is echoed in Pure Harvest Smart Farms' experience in competing with local low-quality produce, underscoring the appeal of high-quality, locally produced items.
Sum it up? For agri-tech companies to succeed, they must engage in effective communication, use science-based evidence, and understand local preferences to influence consumer behaviour and acceptance of new technologies.
"What is unique about this region is the brutal heterogeneity and diversity of the market. It's incredibly complex to go to market as people struggle to get the marketing messages. That could be a massive barrier to entry for new entrants, finding staying power, and the ability to make economic margins, which is tough to displace on the market."
2️⃣ Governments need to step up
Governments around the world are recognising the importance of leveraging agri-tech, but public expenditure on agricultural research remains surprisingly low, especially in comparison to the agricultural GDP.
This underinvestment is most notable in the MENA region, which is also the most vulnerable.
Despite the compelling returns that agri-tech can offer—a "triple win" of financial, environmental, and social benefits—its adoption by farmers is slow.
This reluctance is partly because these solutions are not one-size-fits-all; they need to be adapted to local problems and contexts.
What’s more, the benefits of agri-tech take time to materialise, leading farmers through a challenging transition period before they can profit.
Governments can play a crucial role in de-risking the adoption of climate-smart technologies.
By providing environmental insurance and facilitating access to markets and finance, governments can encourage more widespread adoption.
These efforts can significantly reduce CO2 emissions compared to conventional practices and are particularly beneficial for smallholder farmers.
Ryan Lefers of RedSea highlighted the need for government regulations, particularly in water management and emissions control, to create an equal playing field for businesses. Without such policies, companies taking the initiative in these areas face a first-mover penalty.
Khadija Hasan from KRISPR added that startups and businesses need appropriate pricing points to be sustainable and profitable, emphasising the role of consumers in driving these changes.
Sum it up? The success of agri-tech as a lasting solution depends on governmental support and policies that encourage equitable and sustainable practices in agriculture.
"As of right now, if a business decides to move and act on emissions, there’s no first-mover advantage but a first-mover penalty. Until the playing field becomes equal, that’s a penalty. At the end of the day, whether we like it or not, we report to shareholders who have a return. Having a policy in place to make an equal playing field is necessary."
3️⃣ Localisation
The need for agri-tech in the MENA region, heightened by its vulnerability to climate change, is deeply connected to the push for localisation in food production.
Martien van Nieuwkoop of the World Bank Group emphasised the region's severe food security challenges, which have been exacerbated by unexpected global events. Since 2006, there has been a significant increase in food price inflation, going from 11.8% in 2006 to 17.6% in 2023. This issue is particularly pressing in conflict areas like Yemen, Gaza, and Syria, where millions are in need of food assistance.
Shamal Abdulkhaliq Mohammed from Innovation Oasis - Silal highlighted the critical role of localisation in food production. By focusing on local production and reducing reliance on imports, the region can better manage its food security. This approach is crucial for supporting local farmers and is aligned with the global trend towards localising food sources.
The importance of technology in this localisation effort was further underscored by Hugo Hagen of Bayer. He pointed to the need for agri-tech innovations, such as improved seed varieties and efficient irrigation technologies, to support sustainable agriculture in a context where less farmable land is available and water scarcity is a growing concern. In the MENA region, 12 countries are already grappling with significant water scarcity issues.
Sum it up? By focusing on local resources and technology-driven agricultural practices, the region can build a more resilient and sustainable food system.
TL;DR
The path to a sustainable future in agriculture lies in embracing technology, localisation, and effective policy-making.
A holistic approach, which balances consumer preferences with environmental and economic considerations, is essential for the MENA region and beyond.
Collectively, the above takeaways underscore that a collaborative effort between governments, industry leaders, and communities will be needed to build resilient, efficient, and sustainable food systems for the future.
🤝 Pure Harvest acquires agriculture production facility in KSA from RedSea
Pure Harvest Smart Farms has announced its acquisition of a six-hectare controlled-environment agriculture production facility near Riyadh, operated by RedSea.
The transaction will enable Pure Harvest to expand its footprint in KSA.
RedSea’s decision to transfer control of the facility signals a transition from farm ‘operator’ to a pure play technology company.
World Agri-Tech Innovation Summit
From optimising insect farming to transforming smallholder farmers into successful entrepreneurs and advancing vertical farming technologies, the start-ups who were present at the World Agri-Tech Innovation Summit each offer a distinct approach to modernising agriculture, addressing challenges ranging from food security to environmental sustainability.
So, without further ado, let’s introduce you to the climate tech startups that caught FWDstart's attention at the World Agri-Tech Innovation Summit Dubai 2023!
Founders Ravi Kulkarni and Anoop Srikantaswamy launched Moonrider in 2023, introducing electric and autonomous tractors with on-the-go charging capabilities. This innovative approach aims to reduce carbon footprint and enhance efficiency in farming operations.
🌾 Agrilift
Jawwad Hasan and Qazafi Qayyum, the brains behind Agrilift, established this Singapore-based startup in 2021. The next-gen precision farming platform provides actionable insights on all stages of the seed to harvest cycle to help growers improve crop yield and profitability.
Ghanaian company Farmerline, founded by Alloysius Attah and Emmanuel O Addai, is on a mission to transform smallholder farmers into successful entrepreneurs. By delivering essential data and services, they're boosting productivity and livelihoods, contributing to food security and economic growth.
Founded in 2016 by Jamie Burrows, Vertical Future is a global player in vertical farming technology. The company designs and builds advanced vertical farms with proprietary hardware and software, paving the way for sustainable urban agriculture.
Keiran Olivares Whitaker, founder of Entocycle, envisions a sustainable future in insect farming. Established in 2016, Entocycle specialises in optimising black soldier fly farming with innovative equipment, promoting efficiency and sustainability.
🤖 RoboCare
Co-founded by Dr.-Ing. Imen Hbiri in 2020, Tunisian start-up RoboCare offers a digital monitoring system based on spectral technology and AI. This innovation aims to prevent late detection of plant diseases and reduce pesticide use, ensuring healthier crops and a safer environment.
🌱 Zayndu
Founded by Ralph Weir in 2020, the UK start-up manufactures a non-toxic seed sterilisation system designed to enable agricultural industries to produce clean and viable seeds without damaging the environment.
Extra FWDstart
📰 What we’re reading about COP28
Not just a phase. New COP28 draft text does not mention phase out of fossil fuels (Reuters)
🎧 The importance of reducing methane (The Economist)
Disconnect. Millions of green jobs are open to people with the right skills. The problem is many don’t have them (EuroNews)
Crochet. The coloured stripes that explain climate change
(BBC)
Next up. Azerbaijan wins regional backing to host COP29 climate summit (Reuters)
⏱️ Poll time!
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👋 Message from the team
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We’ll see you all again on Friday for our weekly MENA tech and start-up round-up!
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