San Francisco Summit Report
The recent annual meeting of investors, ag producers,
food processors, entrepreneurs and curiosity seekers, like myself, yielded some very interesting
insights into an exciting market sector.
Let me just say that I am of the opinion that every
challenge that we face in achieving our goal of feeding the projected 9 billion
people on the planet in 2050 can be solved with technology. Most of it is
available even today. I did not say that it would be accomplished in a
sustainable manner, just that it is possible. The meeting confirmed my understanding
of this truth .
I Left My Heart….
Perhaps the best way to describe what took place in The City
by the Bay last week is that there were two events scheduled simultaneously
that were at exact opposite ends of the technology spectrum. The Game Developers
Conference was being held at the Moscone Center with thousands of exhibitors
and attendees roaming the lobby of the luxurious Marriott Hotel where our
meetings were held. They could be
spotted by their casual attire, colored hair, large ear adornments, metal bit
piercings, tattoos and youth. It is obvious that this market had infinitely
more interest and excitement than the agri-food technology sector.
Computer gaming, however, is lost on those of us who feel
that technology is a tool to be used to assist in achieving something of value.
And what is more valuable than food?
Best and the Brightest
I was impressed with the fact that incredibly brilliant
people are addressing the problems that ag and food production faces throughout
the supply chain. Biotechnology, robotics, information technology, sensors and
imagery are just some of the tech solutions that were discussed at the
conference.
It was encouraging listening to the investment community’s
view of the market growth and opportunity during the course of the sessions.
It was evident that they have resigned themselves to a number of facts that those of us who have
been watching the “evolution” and not the “revolution” have been all-too-aware
for many years. Adoption is slow.
Butcher, Baker and Candlestick Maker
Speakers included growers, farm managers, venture
capitalists, fund managers, ag product manufacturers, seed companies, bankers,
ag retailers, food processors and, of course, the technologists. We heard about
RNAi, CRSPRS, IoT and IT, to name just few of the acronyms.
Innovative Innovators
I spoke to interesting people at every turn. One gentleman
had developed an insecticide made from the poisonous venom of rare spiders in
Australia. Another was using a patented UV light process to grow bigger and
better lettuce. The removal of heavy metals from soils was of interest to a
woman from China who talked about the results of unsustainable practices in
that country that had left thousands of acres of land sterile. And a scientist
from Madison WI who said he had developed just such a product. There was even a
young man who worked for a vertically integrated enterprise (from crop inputs
to food) that understood the value in creating a “value chain” with free
flowing data up and down that chain. Oh, and my British cousin (same surname) talked to me about the development of rapid animal genetics mapping that can predict "best" results for dairy and beef farmers.
Investors included representatives from Google, Bill and
Melinda Gates Foundation, Rabobank, Kleiner Perkins and Accenture. From the ag
manufacturing world there were people from Deere, AGCO, Bayer, Syngenta,
Monsanto, Dow, DuPont and BASF. The list of attendees and the companies that
they represented was impressive, to say the least. And it truly was a global
gathering with folks from Brazil, Mexico, India, all over Europe, Baltic States, China and,
obviously, the USA in the audience.
Virtual vs Reality
I would say that while gaming might seem to be a great
investment now, in the near future it will be the challenges associated with eating
that will change our perception of agri-food technology and the crucial role that it will play in producing and delivering food to the masses. Portfolio managers understand this fact and are investing in our future.
