The country has been making strides in the ag-tech industry, with its focus on precision agriculture leading to developments such as the incorporation of drones and sensors for more efficient farming. There have also been efforts in data analytics to optimise decision-making on farms, as well as developments in robotic farming and sustainable practices.
Sustainable farming practices in particular have gained traction, with a focus on minimising the ecological footprint of agriculture. New Zealand has been exploring ways to enhance soil health, reduce chemical usage and adopt more sustainable livestock management practices.
To further these advancements, the New Zealand Labour Party set out in its economic plan an ambitious vision for the country's agriculture sector, focusing on transforming the industry into a centre of excellence for sustainable agriculture and agricultural technology.
However, it was removed from government in the General Election of October 14.
Advancements and investments
The plan had highlighted different aspects of the Kiwi agriculture industry that must be further developed. These include environmental strategies and climate change, technological advancements, a skilled workforce, ag-tech sector growth, a test bed for ag-tech development and industry transformation.
It wanted the government to collaborate with businesses to grow the ag-tech sector from between NZ$2 billion and NZ$3 billion to NZ$8 billion by 2030. In fact, there were plans to inject NZ$100 million into the Venture Capital Fund to invest in ag-tech businesses, invest NZ$29.9 million in the Horticulture Technology Catalyst to support growers in adopting innovative technology, and fund on-farm incentives to reduce methane emissions through an effective pricing system from 2025.
It also planned to leverage New Zealand's advantageous position as a 'test bed' for ag-tech development (thanks to its counter-seasonal position) by accelerating R&D and commercialisation of tools and technology to reduce agricultural emissions.
National objectives
The victorious party in the election, National, has said it would focus on giving farmers the tools and technology they need to cut emissions.
It stated it would:
- Give farmers the tools they need to reduce emissions, including recognising on-farm sequestration, measuring farm level emissions by 2025 and updating biotech rules which will help farmers reduce methane emissions using gene edited crops, feed, and livestock.
- Implement a fair and sustainable pricing system for on-farm agricultural emissions by 2030 at the latest. An independent board – with a power of veto retained by the Ministers of Climate Change and Agriculture – will be established in 2024 to implement the pricing system.
“National will target the key drivers of emissions - agriculture, energy, transport, and industry. National will embrace new technology and will ensure we have the infrastructure New Zealand needs to double renewable energy generation," said the party,
“New Zealand is in a recession and has the worst current account deficit in the developed world. A strong agriculture sector means a strong New Zealand economy which will help us to reduce the cost of living, lift incomes and deliver the public services New Zealanders deserve.
Transformation 2.0
Away from the election, the Agritech Industry Transformation Plan (ITP) in July 2020, outlined a strategic roadmap for accelerating the growth of the country's agtech sector. Positioned as a key contributor to the sustainability and productivity of food and fibre industries, the Agritech ITP aims to establish the ag-tech sector as an independent economic driver.
Notable achievements in the past two years include the growth of the country’s ag-tech sector, with 22 leading firms generating NZ$1.6 billion in revenues and a 14.6% compound annual growth rate. The sector employs over 5,000 people, with investments having increased significantly.
A key initiative is Farm 2050, a global network addressing nutrient management challenges in agriculture and aiming to provide scientifically validated data for companies, attract international technologies and contribute solutions to global challenges. The Agritech ITP has also funded trials for disruptive technologies in nutrient management and water contamination, involving collaboration with ag-tech investors, farmers, researchers and start-ups.
At the same time, the Finistere Aotearoa Fund — with a value of up to NZ$40 million — has been launched to further invest in the ag-tech sector, while efforts are being made to improve the measurement of the ag-tech sector’s impact on the economy. These include sponsoring Agritech Insights Reports, publishing a sector taxonomy and conducting surveys to establish a consistent and robust measurement framework.
Enabling company growth are initiatives like the Scale for Global Growth programme, international immersion programmes and the Agritech Support Explorer, a digital guide by Kiwi innovation agency Callaghan Innovation that helps Kiwi ag-tech businesses find the necessary support by providing information on various resources, programmes and services available to them. This online resource simplifies the navigation of funding and support options, offering tailored information based on specific business needs.
Furthermore, the Agritech ITP seeks to ensure inclusive growth by involving Māori in the Kiwi ag-tech sector. It aims to do so through the co-design of initiatives with a Māori Advisory Group to support Māori agribusinesses and a focus on partnerships, skills development and excellence in the ag-tech sector for Māori.
Beyond New Zealand
The country’s ag-tech sector has been strengthening its presence overseas as well. In May this year, the New Zealand Trade Enterprise (NZTE) — using the theme Powered by Place — spotlighted innovative Kiwi ag-tech companies in the UK, with a focus on sustainability, efficiency, measurement and animal productivity.
This campaign successfully increased awareness and preference for Kiwi ag-tech solutions in the UK, with a 43% growth in the farmer contact database. Notably, 57% of UK farmers acknowledged the efficiency of Kiwi products, reflecting a substantial 40% increase.
More recently, there has been significant collaboration and a knowledge exchange between New Zealand's ag-tech sector and Ireland, highlighted by a meeting held at Munster Technological University (MTU) in County Kerry. The visit signified a global recognition of the innovative work being carried out at MTU, creating a platform for strategic networking and partnerships between Kiwi and Irish ag-tech associations.
The emphasis on collaborative partnerships and commercial opportunities in areas such as data solutions for sustainable agriculture, regenerative soils and low-emission livestock showcased a shared interest in addressing common challenges faced by both countries in the realm of food supply and farm adaptation.
Last month, Fiji’s Deputy PM and Minister for Finance, Professor Biman Prasad, acknowledged that Fiji wanted New Zealand to be “part of the story of building food security”. As it is, Fiji’s agricultural sector is poised to take on Kiwi technology and investments to meet the latter’s demands for a variety of agricultural products.
