As fruit, vegetable and nut growers face challenging economic conditions and a drop in consumption, grower-owned not-for-profit research and development company, Hort Innovation, today announced it will activate $60M of investment into early-stage startups to drive positive change.
Through a partnership with Artesian, a leading alternative and impact investing firm, the new Hort Innovation Venture Fund will back promising startups whose concepts and prototypes have the potential to make a tangible impact for industry.
Hort Innovation chief executive officer Brett Fifield said now more than ever, it is important to improve productivity and elevate the profile and accessibility of Australian-grown fruits, vegetables, nuts, nursery products and turf locally, and worldwide.
"The Australian horticulture industry is facing unprecedented challenges - high production costs, labour issues, extreme weather impacts to name a few," he said.
"On top of that, Australian fruit and vegetable consumption dropped by up to eight per cent to June 2023, compared to the year before.
"To address these challenges head on, Hort Innovation has partnered with Artesian to build bigger, bolder investments in innovation and create a flexible investment framework to accelerate research and development.
"By investing in startups, we are enabling fresh ideas, never-before-seen technologies, and new ways of thinking to make growing easier, more sustainable and cost-effective, and lift consumption."
Key Hort Innovation Venture Fund focus areas include:
- Increasing productivity: Helping Australian growers to become more adaptable, resilient and financially sustainable. This may be in the use of AI to predict what to do and when to do it, new automation options, or the use of satellite technology to guide decision-making.
- Sustainability: to deliver new innovations Australian growers of fruit, vegetables, nuts, turf and nursery plants can employ. For example, enhancing monitoring capabilities to optimise water use and viable options to reduce chemical use.
- Consumption: to drive demand and meet changing consumer preferences and encourage healthy living. For example, naturally breeding produce that is nutrient dense, with a long shelf life while being aesthetically pleasing.
- Workforce: Opportunities to upskill existing industry participants and expand local career opportunities in horticulture, particularly in the science and technology arenas.
Artesian CEO Jeremy Colless said the firm was excited about the partnership with Hort Innovation, emphasising its potential to drive impactful investments in cutting-edge technologies that will deliver sustainable, long-term benefits for Australian produce farmers and consumers.
"Delivering the world's first horticulture-specific venture capital fund with Hort Innovation is a significant milestone and an example of how Artesian works with leading industry, corporate, government and institutional investors to develop tailor made solutions that address innovation challenges," he said.
Mr Colless said the collaboration was a unique opportunity to elevate productivity and innovation across the agriculture sector, fostering resilience and advancing Australia's position as a leader in sustainable horticulture.
"The approach the Hort Innovation Venture Fund is taking is proven, and well suited to address the needs of Australia's horticulture production industry."
Artesian currently has more than $1.2 billion in assets under management including through technology and venture capital investments across energy transformation, agrifood and natural capital, healthcare and emerging technology segments.
The Hort Innovation Venture Fund is the first new fund to be rolled out through Hort Innovation Frontiers. Launched in June, the Hort Innovation Frontiers investment program will invest up to $500M over the next 10 years to seize big opportunities and develop solutions to horticulture's major challenges.
Macadamia grower Henrik Christiansen said the new structure is valuable for growers to provide feedback on what solutions can be ramped up for commercialisation.
"The Venture Fund partner model is a great initiative from a grower perspective because there will be a multiplier effect," he said.
"The industry can choose what we back, and the tech developers we partner with are going to get quality feedback to integrate into solutions. That's the value Hort Innovation can bring to the equation."
The Hort Innovation Venture Fund is the first new fund to be rolled out through Hort Innovation Frontiers. Launched in June, the dedicated co-investment program will invest up to $500M over the next 10 years to seize big opportunities and develop solutions to horticulture's major challenges.
For more, go to the Frontiers website at www.frontiers.au.
