As we begin a new year, it’s crucial to anticipate the challenges and opportunities that the future may bring. In this blog, DIT AgTech CEO Mark Peart shares his thoughts on the top five trends and potential roadblocks for the coming year.
1. Tech solutions will help farmers weather the storm of rising interest rates and softening cattle prices
As interest rates rise and the sell-off of the US beef herd continues, cattle prices will soften. This can be a tough time for farmers. Agtech products and services that can make exponential cost savings and productivity increases will help lessen the impact of these challenges.
2. AgTech businesses that offer solutions to skills shortages will thrive in 2023
Labour supply continues to be a challenge for farmers across Australia. AgTech businesses that can offer solutions to this problem will be in high demand and have a chance to get ahead of the competition.
There’s been a slow start to adoption of automation and robotics because of the high costs, unreliability and effort needed to implement these. So businesses need to focus on offering new or next-gen automation technology that’s affordable and reliable.
3. AgTech businesses with strong revenues and a clear path to profitability will attract investment in 2023
Capital market corrections and contractions due to inflationary pressures will continue to impact the amount of investment that AgTech businesses can secure. This means that investors will be more selective, looking for businesses that are growing revenues and are either EBITDA positive or have a clear pathway to EBITDA positive.
If your AgTech business fits this description, now is the time to showcase your strengths and attract investment.
4. AgTech hardware businesses need to plan for supply chain delays and restrictions in 2023
AgTech businesses that deal in hardware will need to be prepared for supply chain delays and restrictions in the coming year. To mitigate the impact of these challenges, it’s important to have funding in place to carry inventory and manage inventory delays.
5. AgTech businesses must address ESG requirements to meet consumer demands in 2023
Environmental, social, and governance (ESG) requirements are becoming increasingly important in the AgTech industry. Consumers are demanding more transparency and accountability from farmers.
AgTech businesses must shape their offerings and services to assist farmers in meeting these demands. This includes addressing animal welfare, GHG emissions, and food and fibre provenance.