The UK’s agritech sector is at a pivotal juncture, with the potential to revolutionise agriculture both domestically and globally. However, a recent report by the Innovation and Research Caucus (IRC) highlights significant barriers hindering this progress, including infrastructure gaps, funding challenges, and the need for enhanced collaboration among stakeholders.
The report identifies a “funding cliff” that many businesses encounter during the commercialisation and scaling-up phases. An industry expert noted that securing the substantial investment required for later-stage developments becomes “very, very difficult in the UK.” Echoing this sentiment, a business leader emphasised the scarcity of a robust investment community within the country, stating, “Finance, finance, finance, and the lack of a good investment community inside the United Kingdom.”
Infrastructure deficits further impede the sector’s growth. A respondent from a crop gene editing company highlighted the prohibitive costs associated with establishing necessary facilities:
“Well, we have a huge issue in the gene editing space… there’s a huge initial cost required to start working in this area… So anybody who wants to enter into this market… needs to recreate all of the facilities themselves and that’s incredibly expensive… you need 10 million and that’s a huge ask for investors… there’s a huge need in the UK… for this centralisation of facilities that companies would be able to lease.”
The report also underscores misaligned expectations among technology developers, farmers, and funders, which often impede progress. An expert observed, “There’s misaligned expectations… what can be delivered, the pace at which it can be delivered, and the return on investment for the farmers.” Additionally, the high costs and limited awareness of new technologies among farmers slow the adoption of innovations. A business respondent from an agritech project development company expressed scepticism about the market’s ability to afford expensive technologies, even if they improve efficiency and productivity.
To overcome these challenges, the report outlines several strategic investment areas, including developing high-TRL infrastructure, fostering collaborative funding models, and introducing tiered funding schemes. One interviewee emphasised the importance of Innovate UK’s role, stating, “Innovate UK provided us with the essential funding that allowed us to develop our prototype. Without their support, we would have struggled to move forward.” However, there remains a need for greater funding support for technologies closer to the market.
The report advocates for the development of a national agritech roadmap to provide clear guidance for stakeholders, inspire investor confidence, and accelerate technology adoption. This comprehensive strategy could include a directory of recommended technologies tailored to specific crops and conditions, addressing the confusion many farmers face when navigating the diverse agritech landscape.
By addressing its current shortcomings and leveraging its innovative capabilities, the UK’s agritech sector has the potential to become a global leader in sustainable agriculture, driving significant advancements in productivity and promoting environmental sustainability. The road ahead requires coordinated and collaborative efforts from policymakers, funders, farmers, and industry leaders, but the rewards—economic, environmental, and societal—are well worth the investment.
