As fruit, vegetable and nut growers face challenging economic conditions and a drop in consumption, grower-owned not-for-profit research and development company Hort Innovation today announced it will activate $60M of investment into early-stage startups to drive positive change.
Through a partnership with Artesian, a leading alternative and impact investing firm, the new Hort Innovation Venture Fund will back promising startups whose innovative products and services have the potential to make a tangible impact in areas such as sustainability, affordability and resilience. The aim is to improve productivity and elevate the profile and accessibility of Australian-grown fruits and vegetables locally, and worldwide.
Hort Innovation chief executive officer Brett Fifield said now more than ever, the need to diversify investment approaches and partner with innovative change-makers is critical to retain Australia’s food security.
“Australian horticulture is world-class and therefore demands the best innovation,” he said.
“We are creating this world-first horticulture-specific venture capital fund to attract local and international startups who are focused on prosperity and sustainability.”
“By investing in startups, we are enabling fresh ideas, never-before-seen technologies, and new ways of thinking to make growing easier, more sustainable and cost-effective, and lift consumption.”
Key Hort Innovation Venture Fund focus areas include:
- Increasing productivity: Helping Australian growers to become more adaptable, resilient and financially sustainable. This may be in the use of AI to predict what to do and when to do it, new automation options, or the use of satellite technology to guide decision-making.
- Sustainability: Delivering new innovations to align Australian growers of fruit, vegetables, nuts, turf and nursery plants with world-leading environmental sustainability. For example, enhancing monitoring capabilities to optimise water use, track and reduce carbon and expand chemical use alternatives.
- Consumption: Supporting healthy living by meeting changing consumer preferences. For example, naturally breeding produce that is nutrient dense, with a long shelf life while being aesthetically pleasing.
Artesian CEO Jeremy Colless said the firm was excited about the partnership with Hort Innovation, emphasising its potential to drive impactful investments in cutting-edge technologies that will deliver sustainable, long-term benefits for Australian produce farmers and consumers.
“Delivering the world’s first horticulture-specific venture capital fund with Hort Innovation is a significant milestone and an example of how Artesian works with leading industry, corporate, government and institutional investors to develop tailor made solutions that address innovation challenges,” he said.
Mr Colless highlighted the collaboration as a unique opportunity to elevate productivity and innovation across the agriculture sector, fostering resilience and advancing Australia’s position as a leader in sustainable horticulture.
“The approach the Hort Innovation Venture Fund is taking is proven, and well suited to address the needs of Australia’s horticulture production industry.”
Artesian currently has more than $1.2 billion in assets under management including through technology and venture capital investments across energy transformation, agrifood and natural capital, healthcare and emerging technology segments.
The Hort Innovation Venture Fund is the first new fund to be rolled out through Hort Innovation Frontiers. Launched in June, the Hort Innovation Frontiers investment program will invest up to $500M over the next 10 years to seize big opportunities and develop solutions to horticulture’s major challenges.
Examples of existing research and development programs
• Case study no 1: Productivity – Getting drones to do the job of bees
As the use of protected glasshouses to grow fruit and vegetables increases with climate change, it has been found that traditional pollinator bees are reluctant to pollinate in these environments. As a result, pollination by hand is often required.
In response, through Hort Innovation, Australian growers and researchers have partnered with Singaporean tech company, Polybee, to trial the use of ‘microdrones’ that pollinate plants using the wind from small inbuilt fans. These devices operate 24/7, automatically returning to a dock to recharge when required, significantly reducing labour costs and increasing efficiency.
• Case study no 2: Sustainability – Doing more with less
Sustainable practices are critical to Australian farmers who are keen to maintain land quality for future generations. Investors, export markets and local consumers are also increasingly looking at the sustainability credentials of produce.
A banana grower in the Great Barrier Reef catchment, Gavin Devany, has worked with Hitachi through Hort Innovation to minimise the footprint of his business. Through a specially developed dashboard, he tracks advanced sensing, leachate monitoring and sediment analysis to ensure best management practices relating to irrigation, fertilisation and plant care.
• Case study no 3: Consumption – More consistent produce
Data shows one bad eating experience can turn a consumer off buying a fruit or vegetable again.
To limit the chance of that happening, Australian scientists are collaborating with their global counterparts to develop new papaya, strawberries, mangoes, pineapples and passionfruit varieties that are based on consumer preference testing. Each of these naturally-bred varieties will be tailored to smell, taste, feel and appear in a way that is desirable to purchasers. These varieties could also be easier to grow for farmers, requiring less water and being more disease resistant.
For more, go to the Frontiers website.