Accelerating agri-tech: Rabobank launches SustainableAg Asia Challenge
23 Sep 2019 --- As investment in grassroots businesses gathers pace across industry, a shortlist of 15 innovative agri-tech start-ups and innovators across China, India and Southeast Asia lead the field in Rabobank’s initiative towards a sustainable agri-food supply chain. Coined the SustainableAg Asia Challenge, this platform by the Dutch multinational bank aims to “promote integrity and interconnectivity” across the region’s vital agriculture and food supply chains. Five shortlisted companies will be eligible to win a cash prize from a pool of US$20,000 at the initiative’s Pitch Day to be held on October 10, 2019.
“Asian agriculture is characterized by smallholder farmers, and fragmentation remains the biggest challenge in building up robust agri-supply chains,” Alaïs Faucon, Sustainable Solutions Development Manager at Rabobank, tells FoodIngredientsFirst. “New generation agri-tech companies are now using the best in class technology to address the upstream and midstream issues of virtually integrating farmers and facilitating sustainable business relationships with agriculture markets and financial institutions.”
With Asia’s population expected to increase from 4.6 billion to 5.3 billion in 2050 and with limited arable land and natural resources available for increased food production, Rabobank believes data and innovation are key to feeding this growing population sustainably.
The top three companies at the awards ceremony will receive cash prizes as follows: 1st prize – US$10,000; 2nd prize – US$5,000; and 3rd prize – US$3,000. Two merit prizes of US$1,000 each will also be awarded.
Rabobank believes data and innovation are key to feeding a growing population sustainably.Evaluated based on factors such as technology innovation, market readiness, scalability and extent of addressing integrity in the agri-food value chain in Asia, the shortlist of 15 entries cover wide-ranging solutions, from helping smallholders with their crops to financing options, and the creation of technology platforms across the agricultural supply chain that will boost productivity, efficiency and income for the farmers.
“All the five companies will then receive exclusive invitations to present their innovations at Rabobank Asia’s annual Food & Agribusiness Advisory Board Meeting in Shanghai on October 31, 2019. This meeting is Rabobank’s annual premier event bringing together chairmen and CEOs of leading food and agribusiness companies and commodity traders from the Asia Pacific region,” says Faucon.
The adoption of agri-tech solutions will empower farmers, as well as food and agriculture companies to make better informed decisions for smart farming, processing techniques and food distribution, as highlighted by Rabobank. In addition, benefits trickle down to the region’s vast number of smallholder farmers, enabling them to improve crop production and access to markets for increased incomes.
The Rabobank SustainableAg Asia Challenge is supported by Rabo Foundation, and in partnership with prominent industry players such as Archer Daniels Midland (ADM) Company, DSM, Olam International, Bayer, ADB Ventures, Bits & Bites, COFCO International, Future Group and Temasek who are acting as judges.
In July, Rabobank linked up with ScaleUpNation and Foodvalley to launch ScaleUpFood, a comprehensive invite-only support program targeting Dutch upstream scale-up businesses – agritech, agribiotech and novel food – with the offer of providing guidance in specific areas such as strategic selling, specialized finance and data-driven business model extensions. Following the program, qualified ventures will be invited for longer-term tailored support, collaboration opportunities and access to series-B level funding.
Invigorating industry
Global investment in start-ups is heating up, with the space attracting large and established industry players. Incubator programs have seen a rise over the past year in particular, fueled by heightened interest in disruptive ideas that benefit consumers in new ways and innovate exciting NPD. Overall, investing in the future of food has become an increasingly competitive and crowded field.
In Europe, Dutch multinational DSM has initiated its own startup program. DSM Venturing has been investing in many different start-ups in Europe, North America and Israel for almost two decades. European food tech and agri-tech start-ups last year raised US$1.6 billion in funding across 421 deals, according to the inaugural report from global Venture Capital platform AgFunder, in collaboration with F&A Next.
Another example of an established player entering the start-up investment space is the Chobani Incubator, created in 2016 by the US Greek yogurt manufacturer to provide promising food and beverage start-up businesses with access to support, community and mentorship, an equity-free US$25,000 grant and further assistance after the program has ended.
Last July, it was announced that Cargill and Ecolab are supporting a second class of start-ups through the Techstars Farm to Fork Accelerator.
By Benjamin Ferrer
