Innovation is crucial in most sectors – but especially so to ensure sustainable and resilient agricultural production. Yet despite the advances over the past few decades to improve yields and strengthen resilience and adaptability, the global agchem companies have not been able to develop enough new agrochemicals to sustain agricultural production against nature’s challenges.
A major consequence of this is increased resistance to insecticides and herbicides as current chemistry no longer proves effective, with potentially catastrophic impacts for food security and human health.
Without new chemistry, we will fail to protect crops and control mosquitos carrying vector borne diseases.
Following industry consolidation, big agrochemical companies with depleted product pipelines and growing consumer concerns regarding sustainability, are looking to smaller agtechs like Bio-Gene for new product options. The agrochemical sector needs to do four things differently to better harness innovation.
First, partner with smaller agtech companies that are more willing to take risks, experiment with unconventional methods, and adapt quickly to changing market demands. Unlike large agchem companies, agtechs are more nimble innovators.
Second, we need the bigger companies to invest more resources in the commercialisation of new products. This can involve many challenges, requiring careful management and clear communication to navigate the different practices of large and small companies.
Third, create more partnerships and options. Having led a few startups over my career, I’ve gained insights into how Australian agtechs can successfully navigate these symbiotic relationships. Long-term planning is essential, especially in agro-chemistry which has complex regulatory processes for new product registration. Companies, investors and stakeholders need to understand the time it takes to take a product from the lab to market.
Fourth, harness each other’s strengths to navigate regulation. Operating in an international marketplace requires an understanding of diverse regulatory dynamics. For instance, the EU places greater emphasis on environmental considerations, such as residual limits, compared to countries like Australia, the US, and Canada, which prioritize core data submissions. Costs between partners can be shared over jurisdictions and market segments to increase the application of a product.
The intersection of innovation and agriculture holds immense potential. Still, it requires a holistic understanding of the industry’s dynamics, a long-term vision, and the need to address global challenges.
The good news is Australian agtechs, already known for their agility and creative thinking, are now positioned to bring innovation to the sector – if harnessed the right way.
If Australia’s ag sector can learn from the network of symbiotic relationships occurring in the pharma/biotech sector, not only will we increase our rates of success, but also showcase the next level of agriculture innovation to markets across the world struggling to deal with food security and on the growing challenges to public health from mosquito-borne diseases.
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