“We’re seeing both domestic and international investors”
Investment in German agtech and agribusiness has skyrocketed in the past two years. Markets Germany spoke with Christian Janze, EY’s expert on agtech start-ups, to get the inside scoop.
What makes the German agtech market unique?
We have a lot of very interesting start-ups in Germany in the agribusiness sector. As established agriculture and food companies try to strengthen their positions on sustainability, they’re investing in these start-ups. Many ‘hidden champions’ in manufacturing have a lot of interest in new technology and are looking to start-ups for innovation.
Why has investment in agtech grown so much?
Three or four years ago there was a phase of new start-ups sprouting, and ever since there has been extreme growth in agtech. We’re seeing both domestic and international investors. Increased discussion in society about climate change and alternative meat options are also spurring interest in start-ups that focus on decreasing farmers’ carbon footprints or reducing water consumption.
Why should international investors be interested in Germany’s agtech market in 2020 and beyond?
In the coming years, agtech will be a booming sector with a lot of potential profit. The trend toward urban living will change how we do farming. Supplying a big city with fresh food is a challenge already, and supply chains and logistics will have to adapt. But German business is innovative, and solutions from Germany will be implemented globally.