Tech start-ups provide intelligent tools to unlock value in agriculture

SA innovators are adopting technologies that use artificial intelligence (AI) to make the farm of the future more productive. Using digital technologies, innovators could create as much as R671bn in value for SA agriculture in just five years.

This is according to a unique value-at-stake framework developed recently by Accenture and the World Economic Forum (WEF). The framework identifies the adoption of four digital agriculture technologies — precision agriculture, a connected supply chain, digital marketplace and autonomous operations — as central to securing this value.

Accenture and the WEF assert: “The adoption of these technologies could help SA create a thriving, sustainable, modern agriculture value chain built for digital.”

An excellent example of adopting digital agricultural technologies and hiring people to use AI to make sure the world has enough to eat is Aerobotics, SA’s subscriptionbased AI agritech (agricultural technology) business. It provides intelligent tools for the agricultural industry.

Earlier this year, Aerobotics hired agricultural industry leader and technical agronomist Liaan Janse van Vuuren. He was hired to train the AI team at Aerobotics in the field to equip growers and their advisers with an eye in the sky that sees everything and misses nothing when it comes to crop performance.

DEEP POCKETS

In no way does this imply that SA’s agricultural sector is abuzz with AI or tech jobs. However, it proves that agritech players can create more jobs if the industry continues to embrace digital transformation.

These jobs can be created only if investors with deep pockets see value in the industry. To some extent, SA’s agritech start-ups are already attracting local cash-flush investors that see value in them.

Naspers, Africa’s biggest tech investor, has taken a big bet on modernising the agricultural space. Over the past two years

Naspers, through its early-stage business funding initiative, Naspers Foundry, has invested R350m in Aerobotics.

“We’re committed to providing intelligent tools to optimise automation, minimise inputs and maximise production,” says James Paterson, CEO and cofounder of Aerobotics. “We look forward to further co-developing our products with the agricultural industry leaders.”

Aerobotics data is widely used to bring certainty to farming and food security. For example, Aerobotics can provide data that includes tree counts, their size and health, and the identification of missing trees. The company has progressed its technology to engineer fruit counts and provide data on fruit size and colour. Farmers can use AI to manage their farms, trees and fruit more efficiently.

“Food security is of paramount importance in SA, and the Aerobotics platform provides a positive contribution towards helping to sustain it,” Phuthi Mahanyele-Dabengwa, CEO of Naspers SA, explained last year when the investor initially pumped R100m into Aerobotics. “This importance has been highlighted further in the wake of the Covid-19 pandemic, with agriculture considered globally as critical infrastructure.”

Aerobotics can contribute more to SA’s smart farming tech and create much-needed tech jobs. As a global player, it can set trends in intelligent agriculture production.

Global warming affects farmers all over the world, resulting in unpredictable weather patterns that include droughts, more severe tropical storms and heatwaves.

SupPlant, an Israeli precision agriculture hardware-software solutions company, has raised R137m and plans to step up its growth in SA. This innovative farming company is helping farmers cope with climate change by making its “superior” water-saving technology more available in SA.

“The funds raised in this round will allow us to speed up implementation of our technology in SA with the support of our partners, AECI Plant Health. It is far superior to any common practice available,” says Ori Ben Ner, CEO of SupPlant. “We aim to reach as many SA farmers as possible and help them use less water and produce more and better fruit.”

This unique technology saves water, reduces costs and improves productivity and yield. SupPlant uses agronomic algorithms, AI and cloud-based technology to help farmers achieve these goals.

SA agritech start-up Khula has secured R20m in funding from AECI Plant Health, a subsidiary of JSE-listed chemicals group AECI. The start-up provides small-scale and commercial farmers with software and a marketplace to grow their businesses.

AECI Plant Health has acquired a minority interest in Khula, which secured funding in August. The Khula platform will enable greater access to the growing emerging farmer customer base, which is becoming increasingly important in the social, economic and political context of SA and the rest of the world.

“This is an exciting opportunity for AECI to digitally reposition itself in the agri-input market space while leveraging our product, technical and distribution capabilities,” says Quintin Cross, the MD of AECI Plant Health.

Old Mutual Insure teamed up with SwiftVee in May to launch VeeSure, a digital operation that allows users to buy animals via live-streaming virtual auctions and access insurance.

“As the innovators of online livestock auctions in SA, we pride ourselves on bridging the divide between traditional agricultural business and the benefits of cutting-edge technology,” says Russel Luck, CEO of SwiftVee.

“We are excited to partner with Old Mutual Insure and pioneer innovation in the agricultural insurance sector, which will add significant value to all stakeholders.”

Last month, Standard Bank bought a 25% stake in the online farm-produce marketplace HelloChoice, which aims to modernise the traditional buying and selling of products such as vegetables, fruits, meat, dried beans and grains.

“Standard Bank’s equity purchase in HelloChoice affirms the bank’s aspirations to play a broader role in the agriculture ecosystem,” says Standard Bank’s head of ecosystems, Wendy Pienaar.

Many SA start-ups use agritech innovations such as GPS-enabled tractors, solutions supported by drones, satellites and the internet of things. The use of these technologies creates an opportunity for more investment in the agriculture sector and job creation.

At a recent CEO Roundtable in Berlin, President Cyril Ramaphosa called for more investment in SA’s agritech space. He urged German CEOs to invest in SA’s agriculture and unlock new entrepreneurial activity and ventures in agritech.

Embracing smart agriculture and creating an investorfriendly environment has the potential to propel SA’s agritech industry to new heights.

However, there are many questions still to be answered — as posed by Accenture in its recent report titled “Unlocking Digital Value in SA’s Agricultural Sector”. How do we overcome inhibitors to the adoption of digital technologies? Will these technologies prosper? How do we sustainably fund the implementation of these technologies? The answers are not always apparent.

“But the future trajectory of agriculture in SA will, by and large, be determined by how the country ensures access to digital technologies for all farmers,” explains Accenture.

“This is critical if this sector is to remain a significant contributor to the SA economy and our food security.”