I watch with interest what investors consider to be hot in the world of agriculture and note how quickly that interest fades and moves to the next trend.
Precision agriculture technologies are the exception. They remain a popular investment choice, and for good reason.
In comparison, the alternative protein sector, particularly plant-based meats, is no longer as appealing, though interest hasn’t disappeared. Investors now seem more interested in putting dollars into cellular agriculture and fermentation technologies.
This is fascinating, given there are no commercially available food products created via cellular technologies, although more than 20 patent applications have been filed.
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What’s spurring this interest? It’s likely the sector’s scalability and its lower reliance on inputs. Plant-based meats require the use of pulses and other crops and require food chemistry magic to achieve a finished product that tastes good, looks good and has acceptable “mouth-feel.”
Crop prices and availability can swing wildly so growing “meat” from a few cells and culturing them to make masses of product makes more economic sense to investors in the long run.
But the technology is relatively new, making it a more expensive option, and there is concern over consumer acceptance and how Health Canada will regulate it. Venture capitalists can reduce costs in the long-term but consumer acceptance and the regulatory piece are wild cards.
Artificial Intelligence is another investment trend to watch in 2024. A report from Infopulse estimated the value of AI in agriculture in 2023 at US$1.7 billion, and predicts it will skyrocket to an estimated US$4.7 billion by 2028.
Precision agriculture technologies use multiple AI tools to gather, generate and analyze farm data and operate machinery and robotics autonomously. Further investment could improve and drive these tools forward, but there is a fear factor to consider, particularly around use of data.
At the recent GrowCanada Conference in Calgary, John Weigelt, national technology officer for Microsoft Canada, likened AI to the “monster under the bed.”
“We don’t know what’s there, we don’t know what it is, but we’re scared of it,” he told attendees after asking them how they felt about AI. Although many raised their hands when asked if they were excited about it, a healthy number also raised their hands when asked if they “were bloody terrified.”
I wasn’t terrified of ChatGPT when it became popular last year, but I definitely had some concerns. Yet I was still intrigued.
Could this AI chatbot take over my job, and the jobs of our contributors in the future? After using it, I wasn’t worried anymore. In fact, it’s been a useful tool for translating information in other languages, and for writing headlines and photo captions.
It works fairly well for background research, although it’s not thorough enough for my liking because it just pulls what it can from other sources. I think it could be a valuable tool for businesses or individuals who want to write simple blogs or create marketing content, but it can’t talk to someone in person and use experience to critically analyze information. At least, not yet.
AI tools need a continuous feed of data to improve accuracy and utility. In farming, I’ve heard talk at recent conferences from those who wonder who owns AI data and what will be done with it. These are valid concerns that AI companies must address as they continue to develop their tools.
Another factor is how data is measured and reported. When approaching the Protein Industries Cluster to talk about how AI can help drive market development, Weigelt discovered “the soybean people don’t talk to wheat people didn’t talk to corn people, and yet it’s the same soil that they’re using.”
Agriculture, like many industries, tends to operate in silos.
Investors will need to focus on how to break down barriers so data can be more useful, or the potential of AI will be lost.
Kristy Nudds is editor of Farmtario.
