3 key takeaways from the World Agri-Tech Innovation Summit - Dubai

On the 4th and 5th of December, World Agri-Tech brought together 300+ stakeholders and innovators focused on plant breeding for arid climates, regenerative agriculture, digital agronomy and energy-efficient CEA.

FWDstart was privileged to attend the gathering, which highlighted critical insights and innovations shaping the MENA agriculture sector.

Our three key takeaways below 👇

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1. Importance of getting the message right

While sustainability is gaining importance, taste, quality and price still reign supreme with consumers.

Shamal Abdulkhaliq Mohammed, Head of Agri-Tech at Innovation Oasis - Silal, highlighted the importance of consumer acceptance, particularly in the context of new technologies.

There’s simply no getting around it - consumers' concerns about novel agri-tech advancements need to be addressed - comprehensively.

Over the past two decades, consumer attitudes have shifted significantly. Previously, technology in agriculture wasn't a major consideration for shoppers. However, the new generation is more environmentally conscious, factoring in climate change when making purchasing decisions.

Lessons need to be learned from the controversy over GM crops.

There’s a need for science-based evidence in informing consumers to influence consumer behaviour.

Equally, if not more important, is tailoring messaging to local contexts, especially considering factors like food pricing and the balance between taste and sustainability.

Khadija Hasan from KRISPR and Sky Kurtz from Pure Harvest Smart Farms noted that while sustainability is becoming increasingly valued, taste currently dominates consumer preferences.

This is echoed in Pure Harvest Smart Farms' experience in competing with local low-quality produce, underscoring the appeal of high-quality, locally produced items.

Sum it up? For agri-tech companies to succeed, they must engage in effective communication, use science-based evidence, and understand local preferences to influence consumer behaviour and acceptance of new technologies.

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"What is unique about this region is the brutal heterogeneity and diversity of the market. It's incredibly complex to go to market as people struggle to get the marketing messages. That could be a massive barrier to entry for new entrants, finding staying power, and the ability to make economic margins, which is tough to displace on the market."

Sky Kurtz, Founder - Pure Harvest Smart Farms

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2. Governments need to step up

Governments around the world are recognising the importance of leveraging agri-tech, but public expenditure on agricultural research remains surprisingly low, especially in comparison to the agricultural GDP.

This underinvestment is most notable in the MENA region, which is also the most vulnerable.

Despite the compelling returns that agri-tech can offer—a "triple win" of financial, environmental, and social benefits—its adoption by farmers is slow.

This reluctance is partly because these solutions are not one-size-fits-all; they need to be adapted to local problems and contexts.

What’s more, the benefits of agri-tech take time to materialise, leading farmers through a challenging transition period before they can profit.

Governments can play a crucial role in de-risking the adoption of climate-smart technologies.

By providing environmental insurance and facilitating access to markets and finance, governments can encourage more widespread adoption.

These efforts can significantly reduce CO2 emissions compared to conventional practices and are particularly beneficial for smallholder farmers.

Ryan Lefers of RedSea highlighted the need for government regulations, particularly in water management and emissions control, to create an equal playing field for businesses. Without such policies, companies taking the initiative in these areas face a first-mover penalty.

Khadija Hasan from KRISPR added that startups and businesses need appropriate pricing points to be sustainable and profitable, emphasising the role of consumers in driving these changes.

Sum it up? The success of agri-tech as a lasting solution depends on governmental support and policies that encourage equitable and sustainable practices in agriculture.

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"As of right now, if a business decides to move and act on emissions, there’s no first-mover advantage but a first-mover penalty. Until the playing field becomes equal, that’s a penalty. At the end of the day, whether we like it or not, we report to shareholders who have a return. Having a policy in place to make an equal playing field is necessary."

Ryan Lefers, Co-Founder & CEO of RedSea

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3. Localisation

The need for agri-tech in the MENA region, heightened by its vulnerability to climate change, is deeply connected to the push for localisation in food production.

Martien van Nieuwkoop of the World Bank Group emphasised the region's severe food security challenges, which have been exacerbated by unexpected global events. Since 2006, there has been a significant increase in food price inflation, going from 11.8% in 2006 to 17.6% in 2023. This issue is particularly pressing in conflict areas like Yemen, Gaza, and Syria, where millions are in need of food assistance.

Shamal Abdulkhaliq Mohammed from Innovation Oasis - Silal highlighted the critical role of localisation in food production. By focusing on local production and reducing reliance on imports, the region can better manage its food security. This approach is crucial for supporting local farmers and is aligned with the global trend towards localising food sources.

The importance of technology in this localisation effort was underscored by Hugo Hagen of Bayer. He pointed to the need for agri-tech innovations, such as improved seed varieties and efficient irrigation technologies, to support sustainable agriculture in a context where less farmable land is available and water scarcity is a growing concern. In the MENA region, 12 countries are already grappling with significant water scarcity issues.

Sum it up? By focusing on local resources and technology-driven agricultural practices, the region can build a more resilient and sustainable food system.

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TL;DR

The path to a sustainable future in agriculture lies in embracing technology, localisation, and effective policy-making.

A holistic approach, which balances consumer preferences with environmental and economic considerations, is essential for the MENA region and beyond.

Collectively, the above takeaways underscore that a collaborative effort between governments, industry leaders, and communities will be needed to build resilient, efficient, and sustainable food systems for the future.