September/October 2022 - 4

EDITOR'S LETTER
The robots are coming!! The
robots are coming!!
It's not easy being an " early adopter " when the livelihood of
your family is on the line, and it's understandable that many
operations take the " wait and see " approach to ag-tech equipment
designed to make it easier to plant,
tend and harvest crops.
In many cases, farmers see a lot of the
technology designed to automate work
in the field and packinghouses for the
first time at field days. Take, for example,
the harvester and pest control equipment
being tested in California strawberry
fields (page 12). Robotic/autonomous
equipment that decreases the need for
labor is of particular interest.
When it comes to investors, however,
they continue to see value in funding
areas that are more established, such as
the e-grocery sector. According to the recently released AgFunder
2022 AgriFoodTech Investment report (agfunder.com/research/),
global investment in the eGrocery sector saw 188% year-on-year
growth from 2020-2021, including a $3 billion deal with
China's Furong Xingsheng. With COVID lighting the fire under
the eGrocery segment, it's ingrained in consumer preference by
now and promises to be a continued focus of investments across
the globe.
Chris Koger
Managing Editor
eGrocery led global investment with $18.5 billion; the next
category was innovative foods, with $4.8 billion. Farm robotics,
mechanization and equipment, while turning heads at field day
demonstrations, is low on the priorities of global investors, with
$900 million.
Novel farming systems, which include indoor/urban/vertical farms,
was the eighth-highest draw of ag-tech investing, with $2.3 billion
in 2021. Midstream technologies, which encompass food safety and
traceability, logistics and transport, and processing tech, received
$3.8 billion in 2021.
" Novel farming systems was neither among the biggest nor
highest-growth sectors, but investors showed renewed interest in
indoor farming tech, " according to an AgFunder summary of the
annual report. " Notably, greenhouse grower Local Bounti went
public via (a special purpose acquisition company) SPAC deal in in
November. We expect to see investment in various indoor farming
formats accelerate during 2022. "
SPACs have become a preferred way for experienced
management teams and sponsors to take companies public,
raising capital through an initial public offering for the purpose of
acquiring an existing operating company.
Most of the investment rounds tracked by AgFunder in 2021 were
in the U.S., which dominates as the world's biggest agrifoodtech
investment market, at 41% of funding and 34% of all deals for
the year.
While ag robotics isn't a leading draw for investors, the market
segment is expected to see continued growth, according to
London-based Brandessence Market Research and Consulting Pvt.
Ltd. A recent study of the agriculture robots market by the firm
valued the 2020 market at $4.56 billion, with expectations of it
increasing to $26.68 billion by 2027.
Growing labor costs, rising number of technological
advancements and a better efficiency of processing in ag sectors
are driving the growth of the global agricultural robots market,
according to Brandessence.
Although it's just one segment of the growing ag technology
space, we'll be sure to keep an eye on developments in robotics.
Vegetable
Growers
News.com
WATCH. READ. SHARE
VEGETABLEGROWERSNEWS.COM
Virginia Tech receives $80 million for climate
change
Virginia Tech has received an $80 million grant
from the U.S. Department of Agriculture to
pilot a program that will pay producers to
implement climate-smart practices on farms
of all sizes and commodities, an initiative that
could have significant impacts on curbing
climate-changing gases.
NRCS accepting bids for $40 million in grants
focused on smart farming, soil health
The USDA's National Resource Conservation
Service (NRCS) released two National
Conservation Innovation Grant (CIG) Notices
of Funding Opportunity. Both are accepting
applications.
Organic Produce Association taps Crisantes as
inaugural chair
The Organic Produce Association (OPA) has elected
Theojary " Theo " Crisantes Jr., chief operations
officer for Wholesum, as chairman.
House Ag Committee holds hearing on soil health,
regenerative agriculture practices
The U.S. House Agriculture Committee held
a hearing on soil health and regenerative ag
practices Sept. 14.
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September/October 2022

Table of Contents for the Digital Edition of September/October 2022
