innovating in the “messy middle” where areas such as logistics, business process, packaging and post-harvest monitoring are still big challenges. “I’ve been tracking this sector since the early days, and the thing that has surprised me the most is how difficult it is to align the real needs of the ag industry with the interest and risk-tolerance of the capital providers,” said Day. The recent boom in downstream technology interest proves that agtech startups are no longer setting their sights on farmers. They are now targeting consumers. “Six years ago, we saw startups trying to sell directly to farmers,” said Leclerc. “Now we see them going to the retailers and offering solutions that give the retailer more visibility into their supply chain or the ability to track key sustainability metrics that they can report back to the consumer.” Retailers upping game in both ag and tech Retailers are now getting more involved in the agtech and food production game. Understanding that consumers crave more information about where their food comes from, retail giants have recently taken steps to act as the direct line of communication between consumers and their food. This includes applying for a range of patents using drones to automate farming, creating technology that can help improve online food shopping and even taking food production in house. “I think retailers are becoming increasingly aware of the importance of fresh produce as their key differentiator because it’s something much harder for online retailers to compete against,” said Leclerc. “I see most of the continued push coming from Walmart, Amazon, and Target, and specifically focusing on areas of health, nutrition, sustainability, and food safety as consumers look to distributors with aligned values.” Amazon rolled out AmazonFresh, a grocery delivery service, nearly a decade ago and kicked it up a notch in 2017 when it acquired Whole Foods Market to provide more options for customers. To compete with Amazon in the battle to be a one-stop shop, Walmart is now growing foods from seeds—including its “Sweet Spark” cantaloupe that stays sweet year- round and its fruit-punch-flavored pickles called “Tropickles”—and has also applied for a series of patents targeting farm
is rapidly changing the dynamics of the agriculture. To meet their needs, all stakeholders must work together— everyone from farmers and retailers to agtech startups and regulators. Western Growers (WG) is leading the charge in uniting all players to achieve this common goal. WG recently partnered with agtech startup iFoodDecisionSciences and tech leader HarvestMark to roll out the Supply Chain Risk Management Solution, an industry-driven solution to take control of supply chain food safety and traceability issues as identified by the U.S. Food and Drug Administration. The program uses technology to advance food safety in three ways: 1) digitalize food safety paperwork; 2) provide item level traceability through the entire supply chain using blockchain- enabled technology; and 3) offer financial protection in the case of a contamination event. The anonymized data from this new program will benefit the entire industry, and ultimately consumers, and improve the supply chain reliability, transparency and responsiveness. “The industry is desperate for breakthrough technology in not only food safety, but also mechanization,” said Giclas. “In response, our Center for Innovation & Technology is rolling up its sleeves and starting to do the fundamental work necessary to speed solutions in these areas.” This year, WG’s Center for Innovation & Technology (the Center)—an agtech incubator located in Salinas, Calif.— launched a Crop Collaborative Initiative to increase the adoption of automation in agriculture. Under the initiative, nearly 30 growers, agtech entrepreneurs, venture capitalists, academic professionals, and leaders from technology companies are collaborating on innovative strategies accelerate field automation progress with a primary focus on field harvesting. The Center is also hosting numerous Grower Trial Networks meetings throughout California and Arizona, where growers have the first look at cutting- edge innovations and can provide direct feedback to the startups creating those technologies. The Grower Trial Network is an organized group of WG members who will be trialing and evaluating technology coming out of the Center. The group is led by WG’s Future Volunteer Leaders and supported by WG board members and the Center’s sponsors. “We provide an access point for the industry and I think people now recognize
Jocelyn Bridson of Rio Farms with Chris Terrell of Wexus
automation. Just last year, it announced a partnership with IBM to launch a blockchain-based, global food tracking network. Costco plans to venture into production and processing by bringing its poultry supply in-house, making it the first U.S. retailer to integrate its meat supply to the farm level. WG playing role in revolutionizing food supply chain Customer demand for more convenience, greater transparency throughout the food supply chain and an increase in local and organic food
Anthony Reade of Bonipak Produce with Connor Cunningham of WaterBit.
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JULY | AUGUST 2019
Western Grower & Shipper | www.wga.com
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