The National Innovation Agency (Public Organisation) (NIA) focusing on deep technology adoption to spur growth and address entrenched issues in the agricultural sector where agriculturists need to shift from the traditional agriculture to technology-driven.
Thailand currently has only 81 agricultural startups, with less than 15 categorised as deep tech. Furthermore, the investment value in the agricultural startup market exceeds 51 billion USD (approximately 1.7 trillion baht). This year, NIA continues to drive agricultural startup initiatives through the AGROWTH programme, inviting potential startups utilising deep agricultural technology to join the initiative.
The programme aims to develop products or services, conduct real-world testing, and transform business models to align with agricultural sector needs, in collaboration with leading agricultural companies. Applications are open from today until 10 May 2024.
Dr. Krithpaka Boonfueng, Executive Director of National Innovation Agency (Public Organisation) (NIA), commented that the agricultural sector is crucial for Thailand’s economy and society, yet its growth rate lags behind other countries due to predominantly traditional farming practices.
Therefore, NIA is striving to modernise Thailand’s agricultural sector to compete and meet the increasing global food demand which is projected to rise by 70% by 2050. One key approach is to increase the number of technology developers and innovators, starting from the existing 81 startups, to align with agricultural business needs, creating opportunities for Thai agriculture to add value and offer competitive products and services in the market.
Furthermore, it was revealed that the investment value in the agricultural startup market exceeds 51 billion USD or about 1.7 trillion baht, and NIA is accelerating efforts to provide Thai startups access to such funding, particularly focusing on three technologies with growth potential and investment opportunities: Artificial Intelligence (AI), robotics and automation, and agricultural biotechnology.
“Agricultural startups utilising deep technology play a crucial role in driving Thailand’s agricultural sector forward, serving as game-changers that enhance productivity, reduce production costs, and streamline processes from cultivation to harvesting, as well as creating new breeds or products that differentiate from the market. This results in increased income for farmers. Hence, NIA is expediting startup development under the AGROWTH programme to rapidly address the complex challenges of the agricultural sector with deep technology, catering to user needs and aligning with investment interests. By engaging large-scale agricultural businesses to assist in refining business models and providing targeted advice, the programme creates opportunities for hands-on solution development to tackle the challenging issues in the agricultural sector,” Dr Krithpaka added.
3 emerging deep technology trends
Moreover, from studying data in Thailand’s agricultural startup market, it was found that there has been continuous capital raising activity to date, totalling approximately 2.5 billion baht from both domestic and international investors. This amount is considered modest and growing gradually. There are three emerging deep technology trends globally that are worth noting and serve as future directions for Thai startups. These trends are:
- Artificial Intelligence (AI): Leveraging big data in agriculture for forecasting and prediction, AI is revolutionising farming practices by enhancing accuracy and establishing new scientific standards. Algorithms such as Easy Rice aid agronomists in optimising water and fertiliser usage, thereby significantly reducing greenhouse gas emissions. With an anticipated market growth of 4.7 billion USD by 2028 globally, Thailand has embraced this technology, exemplified by startups like Easy Rice, which collaborates with the NIA to improve rice quality assessment. They have had the opportunity to collaborate with a group of rice producers, enabling them to understand the real challenges in rice quality inspection. By harnessing artificial intelligence directly, this has instilled more confidence in users across over 250 facilities nationwide. Their success is evidenced by over 300,000 inspections covering 6 million tonnes of rice, with plans to expand into ASEAN rice-growing nations like Cambodia and Vietnam. This initiative secured over 2 million USD in Pre-Series A funding from AI and Robotics Ventures (ARV), Yip In Tsoi & Jacks, and Innospace (Thailand).
- Robotics and Automation: Addressing agricultural labour shortages, the demand for robotics and automation continues to rise, aiming to boost efficiency, reduce chemical usage which help to minimise costs and maximise yield. Drones, for instance, are employed for pesticide and fertiliser spraying, replacing manual labour and projected to reach a market value of approximately 265.97 billion USD from 2023 to 2032. Collaborative efforts in developing agricultural robotics between the public and private sectors, along with substantial investments from giant conglomerates, have propelled startups like HG Robotics, which produces drones meeting global standards and develops software for autonomous flight. Their innovation, Tiger Drone, equipped with Thai-language software and interface, which securely and accurately collects data, exemplifies Thailand’s prowess in agricultural robotics, especially in terms of part designs, assembly, and delivery, attracting investments from True Digital Group for drone and robotics manufacturing, paving the way for smart agriculture.
- Biotechnology in Agriculture: With a focus on environmental protection and consumer demand for safe food, advanced biotechnology plays a pivotal role in enhancing agricultural value and addressing various challenges such as pest, drought, and the need of new breeds. Investments in biotech startups globally amount to 85.80 billion baht, indicating significant potential in the agricultural sector. Currently, there are Thai agricultural startups that have received investment by leveraging the aforementioned innovations. One such example is UniFahs, with their product SalmoGuard, which destroys salmonella bacteria in the gut and digestive systems of poultry. This serves as an alternative to antibiotic and chemical treatments. Drawing from over 15 years of experience and expertise in phage technology, they’ve been able to swiftly design technology to address issues in the poultry farming industry, suitable for users in both domestic and international markets. Their rapid innovation earned them the prestigious title of BioTech Innovation Champions at the world’s largest startup competition, the ‘Global Finalists 2022’.
Additionally, they emerged as champions in the incubation program with NIA in 2022. With the opportunity to collaborate with companies in the aquaculture business, they’ve expanded their technology to other agricultural products, such as aquatic animal cultivation. This venture has received investments from ADB Ventures, InnoSpace (Thailand), and the Innovation One Fund, amounting to 1.6 million USD or 53 million baht.
“Agri-tech startups have a vast market awaiting them. Therefore, the attention and funding received by Thai startups underscore a success story, demonstrating how technology can swiftly address user needs and scale up rapidly. However, the challenge for agriculturalists lies in embracing new technologies and being ready to transition from traditional farming practices to smart agriculture. This presents a challenge for agri-tech startups to develop technologies that resonate with real users in Thailand, showcasing the value of investing in technology and innovation for agricultural businesses. This will help agricultural startups realise their potential to make a difference and establish sustainability in the market,” said Dr Krithpaka in conclusion.
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