What will the farms of the future look like? And what trends and technologies will shape them? goes in search of some answers
Xxxx, writes Emma Kennedy
BIGGER FARMS
Farms are getting bigger — and the number of farms is reducing.
“There has been a steady reduction in the number of farms and an increase in average farm size over a century or more,” explains Trinity College professor Alan Matthews.
“In 1915, we had almost 360,000 farms in the state, with an average farm size of 14ha. By 2016, the number of farms had dropped to 137,500 and average size has increased to 32ha. There is no reason to think that this trend will change.”
According to Matthews, smaller farms “do not offer sufficient possibilities for a viable income to attract successors, even if many do survive through off-farm employment”.
Many factors, such as greater economies of scale, encourage greater concentration and a shift towards bigger farms, he said.
“The CAP does allow policy to try to slow down this process, by providing higher direct payments to smaller farms in the form of the redistributive payment, but Ireland has chosen not to make use of this option,” Matthews said.
A WAVE OF INNOVATION
“This new agricultural revolution is fascinating,” says Menno Axt, programme manager at Dublin-based Dogpatch Labs. “Agriculture is one of the least digitised major industries but one of the most rapidly changing.”
A couple of years ago agri giant Alltech and Dublin startup hub Dogpatch Labs joined forces to create an ag-tech accelerator (business support programme) in Dublin. The third year of the programme will launch this month, with up to 10 ag-tech start-ups likely to participate.
Already 15 companies have completed the programme.
One of the participants in the Alltech/Dogpatch ag-tech accelerator was Moocall. The company has developed a wearable calving sensor to help farmers monitor pregnant cows. The sensor monitors the cow’s contractions and then sends texts, emails and notifications to the farmer.
According to Axt, Ireland has an opportunity to become a leader in the ag-tech space. Others agree.
In September 2017, Agriculture Minister Michael Creed announced the launch of a €20m Ireland AgTech Fund, a partnership between the Ireland Strategic Investment Fund and Finistere Ventures, a company that invests in ag-tech start-ups.
Kieran Furlong, who heads Finistere’s Dublin office, believes that Ireland can become an ag-tech hub.
“Ag-tech is still at an early stage, but there’s a bright future ahead,” he says.
Ireland’s strong agribusiness track record, the continued importance of agriculture to the Irish economy and the level of “start-up enthusiasm directed towards agri” are just some of the factors that make Ireland a potential ag-tech leader, ac- cording to Furlong.
He does believe that there will still be a place for smaller farms in the future — if they can “decommoditise”, move towards a premium product and connect with consumers.
“Consumers are turning towards authenticity, and a desire to connect,” he says.
PROTEIN PERMUTATIONS
The demand for meat is growing globally, but falling in some developed markets. And other sources of protein are showing more rapid growth, according to research published earlier this year by Bord Bia.
Globally, meat and dairy producers are getting to grips with a shift in consumer appetite, and investing in new protein sources.
Last year US meat processing giant Tyson Foods upped its stake in plant-based protein company Beyond Meat. Another agricultural industry giant, Cargill, last year invested in Memphis Meats, a food technology company that produces lab-grown meat.
But it’s not just plant-based protein and lab-grown meat that look likely to see growth. Insects could play a bigger role in the protein market in the years to come, experts say.
A 2013 report by the UN’s Food and Agriculture Organisation indicated that more than two billion people worldwide already eat insects, and pointed to the health and environmental benefits of increased entomophagy (eating insects).
“One of our investments is in a company that produces insect protein to replace fish meal. It is much more sustainable,” explains Nicky Deasy, director of operations at the Yield Lab Europe, the Galway-based European arm of a US accelerator, which took on its first four portfolio companies last year.
THE ROBOTS ARE COMING
Experts say that one of the big challenges for farmers today is a lack of labour.
“Farmers are looking for ways to automate,” Kieran Furlong says. “It’s not always about cost-cutting, but about the availability of labour. So you see an increase in the adoption of milking robots, for example.”
According to Nicky Deasy, the next five to ten years will likely see a big increase in automation on farms.
“There are some very interesting products being developed, but it’s not the mainstream yet,” she says.
“I don’t think the average farmer runs their farm that way yet. But in the next few years, larger farms will drive the need for automation.”
IN THE NEXT FEW YEARS, LARGER FARMS WILL DRIVE THE NEED FOR AUTOMATION
LEANER FARMING
EU agriculture commissioner Phil Hogan recently warned