Recently we’ve seen a glut of new agricultural startups looking to take on the might of established players, like Monsanto. They’re relying on the very latest technology to see them through and to defeat the competition. But ag startups face some enormous challenges. Most of the people behind them don’t actually have an awful lot of experience in agriculture. They tend to be software/entrepreneurs types focusing their talents on a particular industry. For that reason, new entrants to the market often suffer from the same common pitfalls. Here are some wise words for startups looking to do battle with the big players.
Go Big On Tech
A few years ago, a trio of Stanford grads set up their new ag startup, Solum. They used their knowledge as geologists to design a new type of soil testing kit. The kit itself was very high tech, and it made use of some of the latest sensors and technology. And what was more, it was backed up by some pretty sophisticated software designed to help farmers manage their soil.
The system was way beyond anything that the industry had seen thus far. And when the grads sold the company to Monsanto, they made a killing. The moral of the story was that tech is just as useful in agriculture as it is anywhere else. If you’re going for high value added, the best way to do it is to leverage new technology. Just like technology revolutionized farming before, it looks set to transform it once again.
Consider The Mechanical Side Of Your Business
As discussed, many new ag startups don’t have people with mechanical expertise. Recent startups have all been about pursuing the latest tech disruptions in order to change the face of farming. And as a result, they don’t fully understand how to maintain and take care of their equipment. But no matter how good the technology gets, businesses are always going to need machinery to replace human labor.
That’s why it’s so important to make sure that your machinery is properly maintained. If you have purchased heavy machinery, design a maintenance and repair timetable. Make sure you focus the majority of your attention on the moving parts. And ensure source replacement parts from quality suppliers, like Statewide Bearings.
Think “Broad Acre”
We’ve seen a wave of ethical ag startups over the last few years. Startups like BrightFarms and Gotham Greens have brought us herbs and greens. And they’ve made an impact in the sectors in which they operate. The problem is that the sectors in which they operate are small. The herbs market, for instance, makes up less than 1 percent of the total US agricultural sector. For ethical firms to actually make a difference on a grand scale, they have to get into “broad acre” crops. These include things like wheat and corn; things, in other words, that take up a lot of space. In the past, they would have struggled to do this. But recently, we’ve seen a spate of new technologies and trends. Today, there may be opportunities to raise insect-derived meat substitutes. And these comprise a far greater share of the US diet than herbs and lettuce.
This article was provided by ellie jo