NEWSROOM

Driving agritech innovation from Auckland to the world

With Field Days behind us, it’s an excellent time to reflect on New Zealand’s agricultural sector’s critical productivity challenge and how entrepreneurial students and researchers can help. According to a recent Westpac report, productivity growth in our farming industry has significantly slowed, from an annual growth rate of 5.6% between 1985 and 1999 to just 1.7% between 2010 and 2023. Despite our best efforts, the sector is struggling to keep up with its historical performance and the productivity of our OECD counterparts.

This slowdown is alarming for a country where agriculture plays a pivotal role in the economy. With the government setting ambitious goals to double exports over the next decade, it’s clear that innovative solutions are urgently needed to boost productivity. Amidst these challenges, innovative agritech start-ups, including those emerging from Waipapa Taumata Rua, the University of Auckland (UoA), provide a glimpse of the future of technology-driven farming.

Despite being located in NZ’s largest city, UoA significantly engages with the agricultural sector through its research and education programmes. The Business School’s Centre for Innovation and Entrepreneurship (CIE) and UniServices, the University’s knowledge mobilisation and commercialisation company, have supported talented individuals in creating agritech start-ups that enhance productivity in agriculture through technology. This university-industry collaboration is crucial to the next wave of innovation in farming, demonstrating how the needed innovation can emerge from universities to benefit rural communities and our economy.

Here are three examples of agritech start-ups whose founders got their start at the University of Auckland:

Hectre: Pioneering AI in Orchard Management

Hectre was founded in 2017 by Matty Blomfield, Menilik Dyer, and Nico Gabarra. This was Matty’s second venture, following his studies at the University of Auckland, where he participated in CIE’s Velocity programme.

Hectre rapidly evolved into a global leader in orchard management software. Initially focusing on apples and pears, Hectre has broadened its scope to include cherries, citrus, and stone fruits. Their innovative use of artificial intelligence (AI) technology allows growers to manage data across every aspect of their orchards, from assessing fruit size and colour to estimating crop yields.

Hectre’s flagship product, Spectre, uses AI to provide detailed data on fruit size and colour, revolutionising fruit packing and storage decision-making. This technology enhances efficiency and reduces waste, showcasing the potential impact of AI on sustainable farming practices. Hectre caught the attention of deep-tech investor Nuance Connected Capital, which led to a $5m convertible note investment in the company.

Cropsy Technologies: Revolutionising Viticulture with AI.

Another standout example is Cropsy Technologies, co-founded in 2019 by Leila Deljkovic and Ali Alomari during their Engineering degrees at the University of Auckland, with their idea supported by CIE’s programmes. Cropsy Technologies focuses on viticulture, addressing the need for precise monitoring and data-driven vineyard decision-making. Their proprietary vision system, attached to tractors, scans crops and uses AI to detect issues, providing growers with detailed, real-time information on each plant.

Cropsy’s technology can potentially transform the viticulture industry, valued at over $2 billion in exports annually. Their recent successful capital raise, totalling $1.7 million and supported by US investor Seraph Group, positions Cropsy for significant global expansion.

Halter: Bridging the Gap Between Human and Animal Understanding

Halter, founded by Craig Piggott in 2017, is another excellent example of agritech innovation. Growing up on a dairy farm in Waikato, Craig developed a keen interest in automation. After graduating with a Bachelor of Mechanical Engineering from the University of Auckland and gaining experience at Rocket Lab, Craig launched Halter to simplify farm operations.

Halter’s innovative system uses ergonomically designed smart collars fitted on cows and an app that translates human intentions into signals that animals can understand. These patented algorithms, known as “Cowgorithm”, enable proactive monitoring of cow health and behaviour. This system improves animal welfare without compromising their agency, utilising sound and vibration cues to guide cows within virtual fences. The collars can even deliver a low-energy pulse if a cow ignores the cues, ensuring they remain within the designated area.

Halter’s approach enhances animal welfare and reduces the need for traditional farming equipment like fences and motorbikes, offering a sustainable and efficient alternative. The company’s rapid growth and innovative solutions highlight the potential for agritech to revolutionise dairy farming in NZ. So far, Halter has raised over $200 million in investment and expanded operations into the US.

Barriers to growth and opportunities

Despite these successful examples, NZ’s agritech sector faces hurdles, including:

Access to connected capital: Despite notable investment deals, including Halter’s large investment round led from the US, a significant gap remains between early seed funding and later-stage venture capital to fund scaling and international growth.
Cost of technology adoption: The high initial costs of adopting new technologies can be prohibitive. Financial incentives and clear demonstrations of return on investment are essential to encourage widespread adoption.
Regulatory hurdles: Streamlining regulations and ensuring they keep pace with technological advancements is vital. The government’s rapid establishment of a Space Agency shows emerging technology sectors can be supported effectively.

The sector would also benefit from:

Strengthening collaborations between farmers, technologists, and investors to drive innovation and efficiency.
Establishing beachhead locations in key markets such as the United States, Europe, and Asia to help agritech firms access customer and investor networks, accelerating their global reach.
Government investment in R&D and responsive regulatory frameworks that support agritech startups.
Policies aimed at reducing the emissions profile of agriculture in NZ and globally to drive the adoption of sustainable technologies.
Innovative thinking about how emerging technologies like blockchain for supply chain transparency or IoT for precision farming can open new opportunities and enhance productivity.
Training programmes developed with industry leaders to ensure farmers are prepared to adopt and benefit from new technologies.

Conclusion

The innovative spirit of agritech start-ups offers hope in confronting the pressing challenge of slowing productivity growth in our agricultural sector. Companies like Hectre, Cropsy Technologies, and Halter exemplify how cutting-edge technology can enhance productivity, sustainability, and profitability in farming. The University of Auckland has played a role in launching these and other ventures by developing talent and capability, demonstrating the power of university-industry collaboration in driving agricultural innovation.

By addressing the barriers to growth and capitalising on opportunities for collaboration and global expansion, NZ can lead the world in agritech innovation. Support from government, industry, and universities will be essential in fostering an environment where these groundbreaking technologies can thrive, ensuring a sustainable and prosperous future for agriculture in NZ and beyond.

Rod McNaughton

Rod is Professor of Entrepreneurship and Academic Director of the University of Auckland Business School’s Centre for Innovation and Entrepreneurship

Woman with brown, shoulder length hair, wearing a green shirt, smiling and folding her arms.

Professor Rod McNaughton – CIE Academic Director

With Field Days behind us, it’s an excellent time to reflect on New Zealand’s agricultural sector’s critical productivity challenge and how entrepreneurial students and researchers can help. According to a recent Westpac report, productivity growth in our farming industry has significantly slowed, from an annual growth rate of 5.6% between 1985 and 1999 to just 1.7% between 2010 and 2023. Despite our best efforts, the sector is struggling to keep up with its historical performance and the productivity of our OECD counterparts.

This slowdown is alarming for a country where agriculture plays a pivotal role in the economy. With the government setting ambitious goals to double exports over the next decade, it’s clear that innovative solutions are urgently needed to boost productivity. Amidst these challenges, innovative agritech startups, including those emerging from Waipapa Taumata Rua, the University of Auckland (UoA), provide a glimpse of the future of technology-driven farming.

Despite being located in NZ’s largest city, UoA significantly engages with the agricultural sector through its research and education programmes. The Business School’s Centre for Innovation and Entrepreneurship (CIE) and UniServices, the University’s research application and commercialisation company, have supported talented individuals in creating agritech start-ups that enhance productivity in agriculture through technology. This university-industry collaboration is crucial to the next wave of innovation in farming, demonstrating how the needed innovation can emerge from universities to benefit rural communities and our economy.

Here are three examples of agritech startups whose founders got their start at the University of Auckland:

Hectre: Pioneering AI in Orchard Management

Hectre was founded in 2017 by Matty Blomfield, Menilik Dyer, and Nico Gabarra. This was Matty’s second venture, following his studies at the University of Auckland, where he participated in CIE’s Velocity programme.

Hectre rapidly evolved into a global leader in orchard management software. Initially focusing on apples and pears, Hectre has broadened its scope to include cherries, citrus, and stone fruits. Their innovative use of artificial intelligence (AI) technology allows growers to manage data across every aspect of their orchards, from assessing fruit size and colour to estimating crop yields.