As an important agricultural country in the world, Australia has made significant progress in the field of agricultural science and technology innovation in recent years. In 2023, Australia’s investment in agricultural science and technology will reach 1.5 billion Australian dollars, focusing on precision agriculture, smart farms, agricultural biotechnology and other fields. Driven by digital transformation, the automation level of Australian farms has improved significantly, with the penetration rate of smart irrigation systems reaching 65% and the application coverage of agricultural Internet of Things exceeding 40%.

At the beginning of 2024, the Australian federal government released a new version of the “Agricultural Innovation Support Plan”, proposing three key development directions: first, increase tax incentives for agricultural science and technology research and development, and increase the research and development expense credit ratio to 40%; second, establish The A$2 billion Agricultural Innovation Fund focuses on supporting smart agriculture projects; third, it promotes industry-university-research cooperation and supports the transformation of scientific research results. At the same time, state governments have also introduced supporting policies, such as the “Smart Farm Demonstration Project” launched by Victoria to provide smart equipment subsidies to local farmers.

This report is based on official data from the Australian Department of Agriculture and the Bureau of Statistics, combined with field surveys of a number of innovative farms, as well as in-depth interviews with leaders of agricultural technology companies and experts from research institutions. It aims to comprehensively reflect the current status of Australian agricultural technology innovation, and Provide decision-making reference for potential investors.

Through a scientific evaluation system, we will objectively analyze the development status of Australian agricultural science and technology innovation from the three dimensions of innovation input, innovation output and innovation environment, and explore future development trends.

Australian Agricultural Science and Technology Innovation Assessment System

Australia has established a scientific and complete agricultural science and technology innovation evaluation system to comprehensively measure innovation strength through the two dimensions of innovation input and innovation output. This evaluation system not only reflects the current level of agricultural science and technology innovation, but also provides clear direction guidance for future development.

1.1Innovation investment indicators

In terms of R&D investment, the total R&D investment in Australia’s agricultural science and technology field in fiscal year 2023 reached 1.58 billion Australian dollars, of which the government invested 820 million Australian dollars and the private sector invested 760 million Australian dollars. In the 2024 budget, the federal government further increased the agricultural science and technology research and development budget to AU$1 billion, focusing on supporting the research and development of precision agriculture and smart irrigation technology. It is worth noting that the “Agricultural Innovation Fund” has significantly increased its support for start-up enterprises, and a single project can receive up to 2 million Australian dollars in funding.

In terms of talent reserve, as of the first quarter of 2024, there are more than 12,000 professional researchers in Australia’s agricultural science and technology field, of which 42% are PhD holders. In order to solve the problem of talent shortage, the federal government launched the “Agricultural Science and Technology Talent Plan”, which provides 1,000 special visa quotas every year to attract high-end overseas talents. At the same time, a “Youth Agricultural Science and Technology Innovation Award” was established to provide research funding of up to AU$50,000 per person to young science and technology workers under the age of 35.

In terms of infrastructure construction, Australia has established five national agricultural science and technology innovation centers, located in Melbourne, Brisbane, Perth, Adelaide and Sydney. Among them, the Melbourne Agricultural Science and Technology Park will invest AU$250 million in 2023 to build the largest smart agriculture laboratory in the southern hemisphere, equipped with advanced facilities such as climate simulation cabins and plant growth chambers. The Brisbane Innovation Center focuses on tropical agricultural technology research and development and has Australia’s most advanced agricultural gene editing laboratory.

In terms of policy support, the “Agricultural Science and Technology Innovation Promotion Law” implemented in early 2024 provides a full range of support measures. Including: 40% tax credit for research and development expenses, preferential import tariffs for agricultural technology equipment, and interest-free loans of up to 3 million Australian dollars for technological innovation enterprises. State governments have also introduced supporting policies. For example, Victoria has launched the “Digital Farm Transformation Subsidy”, which provides farmers with 50% subsidies for purchasing smart agricultural equipment, up to a maximum of 100,000 Australian dollars.

1.2 Innovation output indicators

In terms of patent applications, the number of Australian agricultural technology-related patent applications reached 1,850 in 2023, a year-on-year increase of 28%. Among them, precision agricultural technology accounts for 35%, agricultural biotechnology accounts for 28%, intelligent irrigation systems account for 20%, and other fields account for 17%. It is worth noting that the number of applications from local companies exceeded that of international companies for the first time, accounting for 56%, showing a significant improvement in Australia’s local innovation capabilities.

The conversion rate of scientific research results has increased significantly. In 2023, the conversion rate of scientific research results in the field of agricultural science and technology will reach 45%, an increase of 8 percentage points from 2022. This is mainly due to the newly established “Industry-University-Research Cooperation Fund”, which provides full support for the industrialization of scientific research results and has facilitated the successful implementation of 120 projects. Among them, technologies such as intelligent greenhouse control systems and crop pest and disease early warning systems have been applied on a large scale.

In terms of new technology applications, as of the beginning of 2024, 65% of large-scale farms in Australia have applied smart irrigation systems, 48% of farms have used agricultural Internet of Things technology, and 35% of farms have adopted AI-assisted decision-making systems. Especially in Victoria, the application rate of smart agricultural technology leads the country, with more than 80% of dairy farms realizing automated milking.

International cooperation continues to deepen. In 2023, Australia signed agricultural science and technology cooperation agreements with 15 countries, with 230 cooperation projects. Among them, there are 56 China-Australia agricultural science and technology cooperation projects, involving smart greenhouses, aquaculture, soil improvement and other fields. Through the “Agricultural Science and Technology Innovation Alliance” platform, Australia actively promotes the docking of international innovation resources and attracts 420 million Australian dollars in international R&D investment in 2023.

This evaluation system not only measures the strength of innovation, but more importantly, identifies shortcomings in development, such as lagging infrastructure construction in some areas and low technology application rates in small and medium-sized farms. This provides an important reference for the government to formulate targeted policies and enterprises to optimize innovation strategies. In the future, with the rapid development of new technologies and increased policy support, Australian agricultural science and technology innovation is expected to usher in new breakthroughs.

Innovation performance in key areas

Australia’s agricultural science and technology innovation has achieved remarkable results in the three fields of precision agriculture, biotechnology and smart farms, forming innovative advantages with local characteristics. Breakthrough developments in these fields have strongly promoted the modernization of Australian agriculture.

3.1 Precision agriculture technology

Australian precision agriculture technology is known for its adaptability to large-scale farm operations. In terms of satellite navigation applications, 82% of large farms have adopted RTK high-precision positioning systems in 2023, with positioning accuracy increased to centimeter level, significantly improving the efficiency of agricultural machinery operations. The “SmartFarm GPS” system developed in Queensland controls the navigation error within ±2 cm and is outstanding in reducing the waste of agricultural materials. Farms applying the system save an average of 15% on seed and chemical fertilizer inputs.

In terms of agricultural IoT deployment, as of early 2024, Australia has built an IoT system covering 2.5 million hectares of farmland. Victoria’s first “Smart Farmland Sensing Network” project has deployed more than 100,000 sensors to achieve real-time monitoring of soil moisture, meteorological conditions, and crop growth conditions. Data shows that farms using this system can increase irrigation water efficiency by 35% and fertilizer utilization by 28%.

Variable fertilization technology has achieved a major breakthrough in the Western Australia wheat belt. The “intelligent fertilization decision-making system” based on multi-spectral remote sensing and AI analysis can automatically adjust the amount of fertilizer according to soil nutritional status and crop growth, achieving precise variable fertilization. Field trials in 2023 show that this technology saves the use of chemical fertilizers by an average of 22% and increases crop yields by 8-15%.

3.2 Agricultural biotechnology

In the field of seed breeding, Australian scientific research institutions have used CRISPR gene editing technology to successfully breed new varieties of wheat that are adapted to drought climates. This variety, named “DroughtMaster”, showed extremely strong drought resistance in field trials in 2023, maintaining normal yields even when precipitation was reduced by 30%. Currently, more than 1 million hectares of farmland are planted with this new variety.

In terms of biological pesticide research and development, the natural herbicide developed by the University of Adelaide in cooperation with local enterprises uses local plant extracts as raw materials, which is environmentally friendly and has significant weeding effect. Field experiments show that its control effect reaches more than 90%, and the residual period is only 1/3 of traditional herbicides. This technology has been patented and is expected to be commercialized by the end of 2024.

There are significant innovations in soil improvement technology. The biochar soil conditioner developed by the Melbourne Agricultural Research Institute can effectively increase soil organic matter content and water retention capacity. Field application data shows that the organic matter content of farmland soil using this technology has increased by an average of 35%, the water retention capacity has increased by 42%, and crop yields have increased by 20-25%.

3.3 Smart farm construction

In terms of automation equipment application, Australia has become one of the countries with the highest density of agricultural robot applications in the world. As of early 2024, there are more than 5,000 agricultural robots in operation across the country, mainly used for orchard management, livestock breeding and field operations. The orchard picking robot “FruitBot” developed in Brisbane has a picking efficiency three times that of manual labor, with an accidental injury rate of less than 5%. It has been widely used in fruit-producing areas in Victoria.

The farm management system is actively innovating. The locally developed “SmartFarm Hub” platform integrates production management, equipment control, data analysis and other functions and currently serves more than 8,000 farms. The system optimizes production decisions through AI algorithms, saving farms an average of 20% in operating costs. In particular, the mobile applications developed by it support offline operations and solve the problem of insufficient network coverage in remote areas.

The construction of data analysis platform has achieved remarkable results. The agricultural big data center established in Perth integrates meteorological, soil, crop growth and other data to provide accurate production decision support for farms. Data from 2023 shows that farms using the platform are significantly more able to withstand natural disasters and reduce revenue fluctuations by 40%. It is worth mentioning that the platform also provides market forecasting functions to help farmers choose the best time to sell.

Remote monitoring technology is widely used, especially in the field of animal husbandry. The “LiveStock Watch” system developed in Australia enables real-time monitoring of large-scale ranches through satellite images and drone cruises. The system can automatically identify sick animals and provide early warning of weather disasters, significantly reducing the cost of manual patrols. Application data in 2023 shows that pastures using this system have reduced labor costs by an average of 35% and livestock mortality by 28%.

The innovative results in these key areas fully demonstrate the unique advantages of Australian agricultural science and technology, especially its leading position in large-scale farm intelligent management, arid area agricultural technology and environmentally friendly agricultural solutions. With the continuous breakthroughs and promotion of technology, Australian agriculture is accelerating its development in a smarter and more sustainable direction.

Comparison of regional innovation capabilities

Each Australian state has formed a unique agricultural science and technology innovation pattern based on its unique geographical conditions, industrial foundation and policy support. By comparatively analyzing the innovation strength of each state and the development of key innovation clusters, we can clearly grasp the characteristics of regional innovation development.

4.1 Innovation strength of each state

With its complete scientific research system and sufficient policy support, Victoria maintains Australia’s leading position in agricultural science and technology innovation. In 2023, the state’s investment in agricultural science and technology research and development will reach 420 million Australian dollars, accounting for 26.5% of the country’s total investment. The “Future Farm Plan” implemented by the state government provides up to 50% of smart equipment subsidies to promote 85% of the state’s dairy farms to realize intelligent transformation. The state has obvious advantages in smart agriculture and precision irrigation technology. It has built 300 demonstration farms and drives more than 3,000 farms to adopt new technologies every year.

New South Wales relies on the innovative resources of the Sydney technology circle to focus on the development of agricultural biotechnology and digital agriculture. In 2023, the state’s agricultural science and technology patent applications reached 580, ranking second in the country. The state houses Australia’s largest agricultural gene editing center and has made breakthroughs in the cultivation of drought-resistant crops. It is worth noting that the agricultural technology startup incubator established in the state has cultivated 35 agricultural technology companies with a valuation of more than 10 million Australian dollars.

Queensland is based on its tropical agricultural characteristics and has unique advantages in the fields of smart greenhouses and tropical crop breeding. The state’s agricultural technology export volume will reach 280 million Australian dollars in 2023, and the smart greenhouse control system it developed has been sold to many countries in Southeast Asia. The “Tropical Agriculture Innovation Fund” launched by the state government invests AU$150 million every year to support local enterprise innovation and has incubated 12 internationally competitive patented technologies.

Western Australia focuses on the research and development of large-scale farm intelligent solutions. In 2023, the state will invest AU$260 million in precision agriculture, focusing on supporting the research and development of agricultural robots and automation equipment. 90% of large farms in the state use precision navigation systems, and the efficiency of agricultural machinery operations has increased by 40%. Especially in the wheat belt area, the application of variable fertilization technology has reduced the use of chemical fertilizers by 25% and increased yields by 12%.

4.2 Key innovation clusters

As the largest agricultural technology innovation cluster in Australia, Melbourne Agricultural Technology Park brings together 180 agricultural technology companies and 15 research institutions. The total revenue of the park will reach 3.2 billion Australian dollars in 2023, and the research and development investment will exceed 600 million Australian dollars. The park has the largest smart agriculture laboratory in the southern hemisphere, equipped with advanced facilities such as climate simulation cabins and plant growth chambers. The newly built agricultural big data center in early 2024 will integrate 60% of Australia’s agricultural production data and provide strong support for the development of precision agriculture.

The Brisbane Innovation Center focuses on tropical agriculture and intelligent equipment research and development, and has formed a complete industry-university-research innovation chain. The center houses Australia’s most advanced agricultural robot research and development laboratory. In 2023, it will successfully develop 5 new agricultural robots and realize commercial application. The center has established close cooperative relations with Southeast Asian countries and has jointly built 4 overseas R&D centers with annual technology transfer income of AU$180 million.

The Perth Agricultural Research Region focuses on developing dry farming technologies and soil improvement solutions. There are 12 field experiment stations in the research area, covering different climate zones and soil types. In 2023, a new soil conditioner was successfully developed, which was effective in improving saline-alkali soil and obtained international patent certification. The agricultural meteorological early warning system established in the research area provides precise meteorological services to 80% of the farms in Western Australia, reducing weather disaster losses by 30% on average.

The vigorous development of these innovation clusters not only drives regional agricultural science and technology progress, but also promotes the efficient flow of innovation elements. Through collaborative cooperation among innovation clusters, Australia is building a more competitive agricultural science and technology innovation system. For example, the smart farm management system jointly developed by the Melbourne Agricultural Technology Park and the Brisbane Innovation Center has successfully served more than 12,000 farms and created annual economic benefits of AU$1.5 billion.

The differentiated development pattern presented by states and innovation clusters not only reflects the diversity of Australian agricultural science and technology innovation, but also provides more targeted technical support for farms in different regions. In the future, with the deepening of regional collaborative innovation, Australia’s agricultural science and technology innovation capabilities will be further improved.

Innovation support system

Australia has established a complete agricultural science and technology innovation support system, which provides a strong guarantee for agricultural science and technology innovation through the dual drive of policy guidance and financial support. In recent years, support has been continuously increased, forming a multi-level and all-round support network.

5.1 Government support policies

The preferential R&D tax policy continues to be optimized. In fiscal year 2024, the Australian government will increase the agricultural science and technology R&D tax credit ratio to 43.5%, and small and medium-sized enterprises with annual revenue of less than 20 million Australian dollars can enjoy an additional 10% super deduction. Data shows that a total of 860 agricultural technology companies will enjoy this discount in 2023, with each company saving an average of AU$420,000 in taxes and fees, effectively reducing innovation costs.

The special subsidy plan implements targeted support. The “Agricultural Digital Transformation Fund” was launched in early 2024 and plans to invest AU$1.5 billion within three years, focusing on supporting the construction of smart farms and the deployment of agricultural Internet of Things. The plan provides subsidies of up to 50% for the purchase of smart agricultural machinery and 60% for smart irrigation systems. In 2023, 1,200 farms have been supported to complete digital transformation, with each farm receiving an average subsidy of AU$380,000.

The talent introduction policy has been significantly strengthened, and the “Special Visa for Agricultural Science and Technology Talents” program has been launched to provide fast entry channels for high-level agricultural science and technology talents. A total of 850 special visa quotas will be issued in 2023, including 150 agricultural robotics experts and 200 precision agriculture engineers. At the same time, the “Returning Agricultural Scientists Support Program” has been established to provide agricultural science and technology talents who have returned from overseas study with up to 1 million Australian dollars in scientific research start-up funds.

Support for international cooperation has been intensified. In 2024, the government will establish a AU$500 million “Agricultural Science and Technology International Cooperation Fund” to focus on supporting agricultural science and technology cooperation projects with Southeast Asia and the European Union. Currently, 28 international cooperation projects have been launched, involving precision agriculture, biological breeding and other fields. In particular, the “Smart Greenhouse Technology Center” built in cooperation with the Netherlands has achieved technology transformation revenue of AU$280 million.

5.2 Financial support system

The activity of the venture capital market has increased significantly. The total amount of venture capital investment in the agricultural technology field will reach 860 million Australian dollars in 2023, a year-on-year increase of 35%. Key investment directions include agricultural robots (accounting for 28%), precision agricultural solutions (25%) and biotechnology (20%). It is worth noting that the number of local agricultural technology unicorn companies has increased to six, with a total valuation of more than AU$5 billion.

The government fund support system continues to improve, and the Australian Future Fund has established a 2 billion Australian dollar agricultural technology special investment portfolio. In 2023, 35 agricultural technology projects have been invested, with the average investment in a single project reaching 12 million Australian dollars. At the same time, state governments have established matching funds. For example, the Victoria Agricultural Innovation Fund provides 1:1 matching investment, up to 5 million Australian dollars.

Bank credit policies continue to be optimized, and the four major banks jointly launched the “Agricultural Science and Technology Loan Plan” to provide agricultural science and technology enterprises with preferential interest rates and flexible repayment methods. The total amount of special agricultural science and technology loans issued in 2023 will reach 2.5 billion Australian dollars, and the average interest rate will be 2 percentage points lower than the benchmark interest rate. Especially for the purchase of smart agricultural machinery, special loans with a term of up to 8 years are provided, and the first-year interest payment can be deferred.

The channels for the introduction of international capital have been broadened, a “green channel for foreign investment in agricultural science and technology” has been established, and the foreign investment approval process has been simplified. It will attract 1.2 billion Australian dollars in foreign investment in 2023, mainly from the United States, Singapore and the European Union. The A$300 million agricultural technology fund led by Singapore’s Temasek Holdings focuses on investing in Australia’s local agricultural digital transformation projects and has completed investments in eight projects.

The diversified development of financial support has significantly improved the financing environment for agricultural science and technology enterprises. For example, Brisbane’s agricultural robot company RoboFarm completed A$150 million in Series B financing in 2023 through multiple financing channels, including the participation of venture capital, government funds and international capital, fully demonstrating the synergy of the financial support system.

In order to further improve the innovation support system, the Australian government is planning to establish an “Agricultural Science and Technology Innovation Unified Service Platform”, which is scheduled to be launched by the end of 2024. The platform will integrate various support policies and financial resource information to provide one-stop services for innovative entities. It is expected to shorten the time for companies to apply for various supports by 50% and further improve support efficiency.

The implementation of these support measures has effectively promoted the rapid development of Australian agricultural science and technology innovation. The collaborative cooperation between government departments and financial institutions provides all-round support and guarantee for innovative entities and promotes agricultural science and technology innovation to a higher level.

Analysis of Typical Innovation Cases

Through in-depth analysis of Australia’s benchmark companies in the field of agricultural science and technology innovation, we can clearly grasp the innovation development path and success factors, providing useful reference for industry development. The following will summarize and refine the key features of the innovation model based on specific cases.

6.1 Analysis of successful cases

Digital Agriculture Services (DAS) focuses on agricultural data analysis and risk assessment services and is a typical representative of Australian agricultural technology innovation. Since its founding in 2017, the company has developed a unique farm value assessment system by integrating satellite remote sensing, meteorological data and soil monitoring data. As of 2023, the farm area served by DAS will reach 28 million hectares, covering 45% of Australia’s commercial farms. The highlight of its innovation is the deep integration of artificial intelligence technology with agricultural insurance to develop “intelligent farm insurance products”, which can shorten the claim settlement time by 80% and increase the claim settlement accuracy by 40%. Revenue in fiscal year 2023 will reach 320 million Australian dollars, and its valuation will exceed 1.2 billion Australian dollars.

The Yield Technology Solutions has achieved remarkable success in the field of intelligent planting decision support. Based on the Internet of Things and artificial intelligence technology, the company has developed a precise planting management system that adapts to Australia’s climate characteristics. Its core product “Sensing+” has been used in 90% of Tasmania’s oyster farms, helping farmers increase production by 35% and reduce weather-related losses by 60%. In 2023, the company will extend its technology to vineyard management and cooperate with eight large wineries to improve grape quality by 25% and water-saving efficiency by 40% through microclimate monitoring and intelligent irrigation control. The company will achieve revenue of AU$280 million in 2023 and has received a strategic investment of AU$150 million from Japan’s Mitsui & Co.

AgriWebb is reshaping the Australian livestock production model through innovative pasture management software solutions. The intelligent pasture management system developed by the company integrates functional modules such as livestock tracking, pasture management, and feed optimization. As of the end of 2023, the number of livestock managed by the platform will exceed 15 million, and the service pasture area will reach 32 million hectares. After the application of the system, the average production efficiency of the farm increased by 28% and the operating costs were reduced by 22%. In particular, the AI ​​grazing optimization algorithm developed by it can automatically generate the optimal grazing plan based on pasture growth conditions and weather predictions, increasing pasture utilization by 35%. In 2023, the company’s revenue will exceed AUD 400 million, and it has successfully expanded into the New Zealand and South American markets.

6.2 Summary of innovation model

The path of technological innovation shows the characteristics of “data-driven + intelligent decision-making”. Successful companies generally use multi-source data fusion technology to organically integrate satellite remote sensing, IoT sensors, weather stations and other data sources to build a complete agricultural data system. On this basis, machine learning algorithms are used for intelligent analysis and decision support. For example, the farm valuation model developed by DAS integrates 15 years of historical data, contains more than 100 evaluation parameters, and has a prediction accuracy of 92%. Innovative enterprises also focus on the practicality and adaptability of technology and carry out targeted development based on the characteristics of Australian agricultural production.

Business model innovation is reflected in service extension and value chain integration. Leading companies generally adopt the “Software as a Service” (SaaS) model and maintain stable cash flow through subscription charging. At the same time, it actively expands value-added services. For example, The Yield uses data analysis services to help customers connect with financial services such as insurance and credit to form new sources of income. Companies also focus on building an industrial ecosystem. For example, AgriWebb has built a complete industrial chain network including feed suppliers, logistics service providers, and processing companies to maximize service value.

The industry-university-research cooperation model shows diversified characteristics. Innovative enterprises have established close cooperative relationships with scientific research institutions. For example, DAS has established a joint laboratory with the University of Melbourne, investing 80 million Australian dollars in R&D funds every year. The company also focuses on cooperation with industry associations. The Yield and the Australian Wine Association jointly develop smart planting standards to promote technological progress in the industry. At the same time, by establishing an open innovation platform, developers are attracted to participate in technological innovation. For example, AgriWebb provides API interfaces to support third parties in developing professional application plug-ins.

The successful experience of these innovation cases shows that technological innovation must be combined with business model innovation and collaborative innovation to achieve sustainable development. It is particularly worth noting that successful companies attach great importance to user experience and practical results, and closely integrate technological innovation with industry needs to ensure that innovative results can truly solve industry pain points. For example, when promoting new technologies, The Yield always adheres to the principle of “pilot first, then promote”, accumulates practical application data through demonstration projects, and continuously optimizes and improves solutions.

These innovative practices provide valuable experience for the development of agricultural science and technology in Australia, and also provide useful reference for agricultural science and technology innovation in other countries and regions. With the continuous advancement of technology and the continuous evolution of innovation models, it can be expected that more innovative results will promote the development of agricultural modernization.

Challenges and problems faced

Although Australia’s agricultural science and technology innovation has made significant progress, it still faces many challenges and problems during its rapid development. Systematic analysis of these constraints will help relevant institutions and enterprises plan ahead and take effective countermeasures.

7.1 Development bottlenecks

The shortage of talents has become the primary issue restricting the development of the industry. According to a 2023 survey by the Australian Agricultural Science and Technology Association, the technical talent gap in the industry has reached 8,500, including a shortage of 1,200 artificial intelligence experts, 900 agricultural robot engineers, and 1,500 data scientists. Salary levels are rising rapidly, with annual salary increases for core technical positions reaching 35%, increasing the labor cost burden of innovative companies. Especially in remote agricultural areas, the retention rate of technical talents is low, and the average turnover rate will reach 28% in 2023, seriously affecting the sustainability of the project.

The problem of insufficient capital investment has become increasingly prominent. Although the overall investment scale of the industry has grown, there is still a large gap compared with market demand. Data in 2023 show that the total financing demand of agricultural science and technology enterprises is about 8.5 billion Australian dollars, and the actual investment received is only 3.2 billion Australian dollars, leaving a significant funding gap. Especially for medium-sized enterprises in the growth stage (annual revenue of 5 million to 20 million Australian dollars), the financing success rate is only 42%, which is far lower than the average level in other technology fields. Venture capital prefers short-term return projects, leading to difficulties in financing basic research and long-term projects.

Technology adoption faces multiple barriers. The first is the issue of technological adaptability. A 2023 survey showed that 38% of farmers reported that smart devices are not reliable enough in extreme weather. Secondly, technology integration is difficult. Existing farm equipment generally suffers from inconsistent protocol standards and high upgrade and transformation costs. Data shows that the average investment for a complete smart farm solution is AUD 2.8 million, which is beyond the affordability of most small and medium-sized farms. In addition, cybersecurity risks have increased, with reported agricultural IoT equipment security incidents increasing by 65% ​​in 2023.

Infrastructure constraints create a “digital divide”. The communication infrastructure in remote agricultural areas is weak, and the high-speed network coverage rate is only 62%, which restricts the deployment of smart devices. Unstable power supply is also an important issue, and the number of smart system failures caused by power problems will increase by 40% in 2023. Especially in arid areas, the construction of renewable energy facilities lags behind, making it difficult for smart irrigation systems to continue operating.

7.2 International competitive pressure

In the international competition landscape, Australia’s agricultural science and technology industry faces challenges from many directions. U.S. agricultural technology companies are accelerating their penetration into the Australian market with their strong financial strength and technological accumulation. In 2023, through a series of mergers and acquisitions, the American agricultural technology giant acquired a number of high-quality local companies, including AquaTech, a leader in intelligent irrigation in Queensland, and FarmLogic, an agricultural data analysis company in Victoria. These mergers and acquisitions not only led to the outflow of core technologies, but also caused the share of American companies in the Australian agricultural management software market to rapidly increase to 45%. What is even more alarming is that American companies are gradually controlling key links in the agricultural industry chain through their monopoly advantages in data services, which may affect the long-term development autonomy of Australian agriculture.

Israel’s technological advantages pose another important challenge to the development of Australian agricultural science and technology. Especially in the fields of water-saving agriculture, smart greenhouses and agricultural biotechnology, Israeli companies have shown clear leading advantages. In 2023, the export value of Israeli agricultural science and technology products to Australia will reach 1.2 billion Australian dollars, a year-on-year increase of 85%. Among them, the new generation of intelligent drip irrigation system developed by Israel accounts for 68% of the high-end agricultural market in Australia. Not only are these products technologically advanced, they are also highly adaptable and able to meet the special needs of Australia’s arid regions. Faced with this situation, Australian local companies are facing increasing competitive pressure in the high-end market, and their profit margins are being continuously compressed.

Market pressure from the EU cannot be ignored either. The “Farm to Fork” strategy implemented by the European Union has put forward higher requirements for the agricultural product supply chain, including carbon footprint tracking, pesticide use monitoring and animal welfare guarantees. These new standards actually constitute technical trade barriers and are expected to lead to a 20% drop in Australia’s exports of agricultural science and technology products to Europe in 2024. At the same time, the EU provides substantial subsidy support for digital agriculture through the Common Agricultural Policy (CAP), which has significantly improved the competitiveness of European companies. For example, precision agriculture companies in the Netherlands and Denmark are rapidly seizing Australia’s traditional export markets, including Southeast Asia and the Middle East.

Systemic measures are needed to deal with these international competitive pressures. First of all, Australian agricultural science and technology enterprises should strengthen the construction of independent innovation capabilities and focus on breakthroughs in key core technologies. The government can support enterprises in carrying out original technological research by setting up special R&D funds and providing tax incentives. Secondly, we must give full play to the advantages of Australian agricultural production practices and promote localized innovation of technology. For example, Australia’s unique climate conditions and agricultural production models are used to develop smart agricultural solutions with local characteristics.

At the same time, we should actively promote international cooperation and achieve complementary advantages. We can introduce advanced technology while maintaining technological autonomy by establishing international joint laboratories and conducting technology licensing trade. In addition, it is recommended to establish an industrial alliance to integrate local enterprise resources and enhance overall competitiveness in the international market. Through these measures, Australia’s agricultural science and technology industry can gain a firm foothold in the fierce international competition and achieve sustainable development.

What needs to be emphasized in particular is that in the face of international competition, companies must establish a sense of crisis and make arrangements in advance. It is recommended to regularly conduct technology trend analysis and market competition situation assessment, and adjust development strategies in a timely manner. At the same time, we must pay attention to the protection of intellectual property rights to avoid the loss of core technologies. Only by taking precautions can we take the initiative in international competition and achieve long-term development.

Forecast of future development trends

Looking forward to 2025-2030, Australia’s agricultural science and technology industry will usher in a new round of rapid development opportunities. Based on the latest industry research data and technology development trends, we can conduct in-depth analysis from the two dimensions of technology evolution and market opportunities.

In the direction of technological development, the in-depth application of artificial intelligence technology will become the most significant trend. According to the “Digital Agriculture Development Report” released by the Australian Department of Agriculture in 2024, the penetration rate of AI technology in agricultural production will increase from the current 28% to 65% by 2027. Especially in the fields of early warning of crop diseases and pests, quality grading of agricultural products, and intelligent irrigation control, the accuracy rate of AI algorithms has exceeded 90%. With the advancement of deep learning technology, it is expected that a comprehensive AI platform capable of multi-dimensional agricultural situation analysis will emerge in the next three years to help farmers make more accurate production decisions.

Blockchain technology is reshaping the operation model of agricultural supply chains. At the end of 2023, the agricultural product traceability blockchain project launched in Victoria achieved remarkable results, with the average premium rate of the 2,000 farms participating in the project increasing by 15%. This successful experience is being promoted across the country, and it is expected that by 2026, 60% of high-value agricultural products will be included in the blockchain traceability system. More importantly, blockchain is being combined with smart contract technology to promote agricultural financial innovation. For example, a smart insurance product based on crop growth data has been piloted in Queensland, improving claims efficiency by 300%.

The large-scale application of 5G technology will bring revolutionary changes to precision agriculture. According to the 2024 deployment plan of Australian telecom operators, 15,000 5G base stations will be built in major agricultural areas in the next two years to achieve 95% coverage of cultivated land. The low-latency, high-bandwidth 5G network will support real-time control of agricultural robots and drones, increasing the efficiency of intelligent operations by more than 40%. What is particularly noteworthy is that the combined application of 5G + edge computing will solve the bottleneck problem of data processing in remote areas.

The application of new energy technologies in the agricultural field will also be accelerated. A demonstration project in Tasmania in 2023 shows that photovoltaic + energy storage systems can reduce farm electricity costs by 45%. As energy storage technology advances and costs decline, it is expected that by 2028, 80% of large farms will have microgrid systems. In addition, breakthroughs will be made in the commercial application of biomass energy, and the economics of crop straw power generation projects will be significantly improved.

In terms of market opportunities, vertical farming will become the most promising emerging field. Driven by the acceleration of urbanization and consumption upgrading, the Australian vertical agriculture market is expected to reach A$2.8 billion by 2026, with an average annual growth rate of more than 35%. Especially around major cities such as Sydney and Melbourne, the return on investment of plant factory projects that combine the transformation of abandoned industrial plants generally exceeds 25%.

International cooperation will usher in new development opportunities. With the in-depth implementation of the RCEP agreement, the barriers for Australian agricultural technology companies to enter the Southeast Asian market have been significantly reduced. In the first quarter of 2024, 35 Australian companies have established R&D centers or demonstration bases in Singapore and Vietnam. Especially in the field of intelligent tropical agriculture, Australia’s technological solutions have significant competitive advantages. It is expected that by 2027, the export volume of related technologies will exceed 1.5 billion Australian dollars.

Investment focus is shifting towards integrated solutions. According to data from Investment Victoria, the most popular investment projects in the agricultural technology field in 2023 are comprehensive platforms that can provide “one-stop” services, with an average valuation of 2.8 times that of a single technology project. This trend is expected to continue, especially solution providers that can integrate multiple technologies such as AI, IoT, and blockchain will receive more investment favors.

It is worth noting that these development trends also bring new challenges and risks. While companies are seizing opportunities, they need to pay special attention to key issues such as data security, technology integration and business model innovation. It is recommended that enterprises take the following measures:

• Establish a technology roadmap and promote the application of new technologies in a planned manner
• Strengthen cooperation with research institutions to improve technology transformation capabilities
• Pay attention to talent reserves, especially the cultivation of cross-domain talents
• Improve the risk control system to ensure the safety and reliability of technology applications

By accurately grasping development trends, the next five years will be an important period of opportunity for Australia’s agricultural science and technology industry to achieve leapfrog development. Enterprises need to work simultaneously in the two dimensions of technological innovation and market development in order to occupy an advantageous position in the new wave of development.

Opportunities for Chinese Enterprises

Chinese companies face unique development opportunities in Australia’s agricultural science and technology field, but at the same time they also need to deal with various risks and challenges prudently. Based on the latest market research and practical experience, the following will provide a detailed analysis of cooperation opportunities and risk points.

In terms of cooperation opportunities, technology introduction is entering an important window period. Australia has global leading advantages in precision irrigation, soil monitoring and agricultural remote sensing. These technologies are highly consistent with China’s agricultural modernization needs. For example, the intelligent integrated water and fertilizer system developed by the Victoria Agricultural Research Institute has achieved remarkable results in saving 40% of water and increasing production by 25% in pilot projects in northwest China. It is recommended that Chinese enterprises focus on the following technical cooperation directions: first, smart irrigation technology in arid areas, especially new generation systems that integrate AI decision-making; second, agricultural Internet of Things solutions, especially sensor networks adapted to complex terrain; third, agricultural product quality Traceability systems, including blockchain and smart label technology.

Joint venture opportunities are mainly reflected in R&D innovation and market expansion. Since 2023, 12 Chinese agricultural science and technology companies have landed in Australia through joint ventures, among which the most successful one is the “technology complementary” cooperation model. For example, an agricultural machinery company in Jiangsu cooperated with Australia to develop an intelligent picking robot that successfully combined China’s manufacturing advantages with Australia’s agricultural AI technology. The products have been sold to many Asia-Pacific countries. It is recommended to consider the following joint venture strategy: first, select partners with complementary advantages to avoid simple capital cooperation; second, establish a clear technology sharing mechanism to ensure the balance of interests between both parties; finally, focus on localized team building to improve operational efficiency.

Market access opportunities need to be grasped by new policy dividends. With the deepening implementation of the RCEP agreement, trade barriers for agricultural science and technology products between China and Australia have gradually been reduced. At the beginning of 2024, Australia has canceled the special certification requirements for Chinese agricultural IoT equipment, and the approval cycle has been shortened from the original 6 months to 45 days. Chinese companies can focus on the following areas: first, agricultural digital equipment, especially smart terminals with cost-effective advantages; second, agricultural management software, mainly lightweight solutions for small and medium-sized farms; third, smart greenhouse systems, combined with Australian local Customized products developed for climate characteristics.

However, companies must pay high attention to the various risks they may face. The first is policy risk. Australia continues to tighten access to foreign investment in the agricultural sector. In 2023, three Chinese agricultural science and technology investment projects have been suspended due to “national security considerations.” To deal with this risk, companies need to establish a systematic policy compliance management system. This includes establishing a dedicated policy research team to regularly track and analyze Australian agricultural investment policy trends, especially changes in regulations involving sensitive areas such as data security and technology transfer. At the same time, it is recommended to establish communication channels with regulatory agencies through local legal advisors, and proactively contact relevant departments in the early stages of investment to clarify the compliance requirements of the project. At the specific operational level, low-sensitivity cooperation methods such as joint ventures or technology licensing can be considered to reduce policy risks by introducing local strategic partners.

Market risk challenges are becoming increasingly prominent. Data from the first quarter of 2024 show that the competitive landscape of the Australian agricultural technology market has undergone significant changes, with new participants increasing by 85% year-on-year and fierce competition for market share. Especially in the fields of smart irrigation and agricultural Internet of Things, product homogeneity is serious and price wars occur frequently. At the same time, the frequent occurrence of extreme weather has increased the pressure on farm operations, and farmers are obviously more cautious in their willingness to invest in technology. In response to this situation, companies need to develop differentiated market strategies. It is recommended to conduct in-depth research on the specific needs of farms of different sizes in different regions and develop targeted solutions. For example, we develop modular, easy-to-expand intelligent systems for small and medium-sized farms in Victoria, and reduce customer purchasing thresholds through flexible business models such as installment payment. At the same time, it is necessary to establish a complete customer service system and improve product stickiness through continuous technical support and operational guidance.

Technology risk is another area of ​​focus. Practice shows that there are obvious problems with the technical adaptability of Chinese agricultural science and technology products in the Australian market. Feedback from use in 2023 shows that 35% of products have varying degrees of adaptation obstacles, mainly in terms of deviations in soil monitoring accuracy and mismatch between irrigation control systems and local agronomic requirements. To this end, companies must increase investment in localized R&D, establish long-term cooperative relationships with Australian agricultural research institutions, and carry out in-depth adaptive improvements. In terms of intellectual property protection, special attention should be paid to the patent layout of core technologies. It is recommended to complete relevant patent applications before entering the market to avoid subsequent disputes. At the same time, when signing a technical cooperation agreement, special attention should be paid to the setting of intellectual property clauses to clarify the rights and obligations of both parties.

The risks brought by cultural differences are often underestimated by companies, but their impact cannot be ignored. Australian farmers generally have a strong tradition of independent decision-making and are cautious about adopting new technologies. Product promotion cycles often exceed the expectations of Chinese companies. For example, market research in New South Wales in 2023 shows that from first contact to making a purchase decision, local farmers require an average of 8-12 months of inspection period, which is consistent with the 2-3 month conversion cycle of the Chinese market. A stark contrast. Therefore, companies need to adjust their market strategies, slow down the pace of promotion, and focus on building trusting relationships through demonstration projects. In terms of team building, attention should be paid to cultivating localized talents, especially cultivating compound talents who understand both China’s technological advantages and the characteristics of Australian agriculture.

Based on the above risk analysis, enterprises need to establish a comprehensive risk management system. First of all, a special risk management committee should be established to regularly assess various risk situations and formulate response plans. Secondly, it is necessary to maintain sufficient risk reserves. It is recommended to set aside 20% of the total investment to ensure that there is sufficient buffer space in the event of emergencies. At the same time, it is necessary to actively use financial instruments such as commercial insurance to transfer risks, especially to purchase specialized insurance products for key areas such as technical liability and product quality. In addition, a professional crisis management team has been established locally to ensure rapid response when problems arise and to minimize adverse impacts.

In general, the Australian agricultural technology market has both opportunities and risks. Enterprises must adopt a steady development strategy and gradually promote market layout on the basis of fully understanding the risks. It is recommended to start with small-scale pilot projects and gradually expand the scale of investment based on accumulated experience to ensure sustainable development under the premise of compliance. At the same time, it is necessary to continue to optimize the risk management system, improve the ability to resist risks, and lay a solid foundation for long-term development.

Action suggestions

Based on the latest development trends in Australia’s agricultural science and technology field and combined with the actual situation of Chinese enterprises, specific and feasible action suggestions are put forward at both the enterprise and government levels.

At the corporate level, the primary task is to formulate an innovation strategy that is in line with the characteristics of the times. Enterprises need to accurately grasp the new trends in the development of agricultural science and technology in Australia, especially the urgent need for green agricultural technology in the context of carbon neutrality. It is recommended that enterprises build an innovation system around the three key words of “low carbon, intelligence, and efficiency”. For example, in the field of smart irrigation, we cannot simply pursue automation, but must integrate new functions such as carbon emission monitoring and energy consumption optimization to adapt to Australia’s latest agricultural environmental standards. At the same time, innovation strategies must fully consider regional differences and develop differentiated solutions based on the climate characteristics and planting structures of different regions.

The choice of technical route needs to be more pragmatic. Recent surveys show that more than 60% of Australian farmers value the practicality and stability of technology rather than pursuing too cutting-edge innovation. Therefore, it is recommended that enterprises adopt a “steady innovation” strategy and organically combine mature technologies with innovative elements. Specifically, incremental upgrades can be achieved around the existing agricultural IoT platform by introducing modules such as AI decision support and blockchain traceability. In the process of technology development, it is recommended to adopt a “dual-track” R&D model: on the one hand, maintain tracking research on cutting-edge technologies, and on the other hand, focus on localized improvement and optimization of existing technologies.

Talent development plans need to establish long-term mechanisms. Competition in the Australian agricultural science and technology talent market is currently fierce, with related job vacancies increasing by 45% year-on-year in the first quarter of 2024. To cope with this challenge, companies should establish a multi-level talent training system. First, we need to strengthen cooperation with local Australian agricultural colleges and universities and establish targeted training channels. Secondly, for the existing technical team, regular cross-cultural communication training is organized to improve the team’s international collaboration capabilities. It is particularly worth noting that we should focus on cultivating compound talents who understand both technology and agriculture. This can be achieved through a rotation system of “technology + farm practice”.

International cooperation strategies need to be more flexible and diverse. As Australia tightens foreign investment access policies in the agricultural sector, traditional direct investment models are facing more restrictions. It is recommended that enterprises explore various forms of cooperation, such as technology licensing, cooperative research and development, service outsourcing, etc. Especially in the field of sensitive technologies, cooperation in research and development can be considered to achieve technology sharing and risk dispersion. For example, in the field of agricultural genetic technology, joint laboratories can be established with Australian research institutions to avoid policy risks while maintaining technological advantages.

At the government level, relevant support policies need to be improved first. It is recommended that relevant departments revise the “Guidelines for Agricultural Foreign Investment Cooperation” based on the latest situation, especially to add special provisions in the field of agricultural science and technology. At the same time, it is recommended to establish special funds for agricultural science and technology “going global” to provide more targeted support to enterprises. According to the “Guiding Opinions on Promoting International Cooperation in Agricultural Science and Technology” issued in early 2024, companies can apply for R&D subsidies of up to 10 million yuan, and it is recommended to make full use of this policy dividend.

Support system optimization needs to be more systematic. The current support measures are relatively scattered. It is recommended to establish a unified agricultural science and technology international cooperation service platform to integrate information sharing, risk warning, legal consultation and other functions. Especially in terms of intellectual property protection, it is recommended to strengthen docking with relevant Australian institutions and establish a rapid response mechanism. For example, a special agricultural science and technology investment consultation window can be set up at the embassy or consulate in Australia to provide enterprises with timely policy interpretation and risk warnings.

The promotion of international cooperation requires a higher level of coordination. It is recommended to promote the establishment of a long-term mechanism for China-Australia agricultural science and technology cooperation through an inter-governmental dialogue mechanism. Especially under the RCEP framework, we strive to establish a special working group for agricultural science and technology cooperation to coordinate and resolve key issues such as investment access and technical standards. At the same time, it is recommended to promote the establishment of a bilateral agricultural science and technology innovation fund to support enterprises from both countries in joint research and development. It is worth noting that in March 2024, China and Australia reached a preliminary consensus on mutual recognition of agricultural science and technology standards, which created favorable conditions for deepening cooperation.

Specifically at the operational level, it is recommended that government departments focus on the following tasks: strengthen policy guidance for enterprises and regularly publish reports on the Australian agricultural science and technology market trends; establish an investment risk assessment mechanism to provide decision-making reference for enterprises; organize industry exchange activities to promote China-Australia Connect agricultural science and technology enterprises; improve the financial support system and provide diversified financing channels for enterprises to carry out international cooperation.

Finally, it is recommended to establish a government-enterprise collaboration mechanism, hold regular agricultural science and technology international cooperation roundtables, summarize experiences and lessons in a timely manner, and dynamically adjust cooperation strategies. At the same time, it is necessary to give full play to the bridging role of industry associations, promote the formation of a cooperation pattern with government guidance, business entities, and multi-party participation, and create better conditions for Chinese agricultural science and technology enterprises to explore the Australian market. Through these systematic measures, we will help Chinese agricultural science and technology enterprises achieve sustainable development in the Australian market.