Global agri-food markets are undergoing profound changes. The growing need for food security, the impact of climate change, and technological advancements are forcing countries to look for new approaches to the production and processing of agricultural products. From IoT solutions for soil monitoring to the use of artificial intelligence in farm management, technology is shaping the future of the agribusiness industry.
Global agri-food markets are undergoing profound changes. The growing need for food security, the impact of climate change, and technological advancements are forcing countries to look for new approaches to the production and processing of agricultural products. From IoT solutions for soil monitoring to the use of artificial intelligence in farm management, technology is shaping the future of the agribusiness industry.
Ukraine, as one of the world’s leading agricultural countries, cannot remain aloof from these processes. The government recently approved the Strategy for the Digital Development of Innovative Activities of Ukraine (WINWIN) until 2030, which recognizes AgriFood Tech as one of the key sectors for economic development. At the same time, Ukraine’s agricultural sector faces serious challenges. According to the data provided, by 2021, agriculture accounted for more than 10% of the country’s GDP and provided 41% of exports. However, the war significantly complicated export logistics, led to a surplus of products within the country and created additional risks, such as mining of fields and destruction of infrastructure.
The introduction of innovative agricultural technologies is not only an opportunity to overcome these challenges, but also a chance to strengthen the country’s economic potential, ensuring the stability of the food system and increasing the added value of products.
As Andriy Starzhynsky, co-founder and CEO of a-Gnostics, notes: «Farmers implement new technologies if they allow them to do work faster than before, and if they can be done from a mobile phone. If a new technology allows you to work in a few clicks, saves money, increases productivity, or allows you to earn more, its implementation will not be a problem. Investors, particularly in agritech, have much more confidence in products with a monthly recurring revenue (MRR). Therefore, interest in scalable solutions that are constantly paid for is growing.»
Despite its potential, the technological sector of the agribusiness in Ukraine is developing unevenly. According to the results of the strategic session of the Techosystem AgriFood Tech cluster, held by Techosystem within the framework of the Good Governance Fund project «Innovation Ecosystem», the main barriers are:
As Vasyl Kundryk, co-founder and CEO of GAPPO, notes: «Farmers take a long look — not all of them are so-called early adopters. Word of mouth and the technology being proven by someone else play a big role. If they have trust in the technology, it is easily implemented. At the same time, farmers will not implement innovations solely for the sake of an image of progressiveness. The main motivating factor is the economic effect.»
Ukraine is becoming a regional leader in the field of agri-tech thanks to active investment attraction and public-private partnership. There is a large-scale implementation of digital technologies, development of R&D centers, opening of accelerators for startups that create solutions to increase productivity and environmental sustainability of the agricultural sector.
The industry is developing gradually, with key initiatives being partially implemented. The state and business are beginning to cooperate, but barriers to financing innovation remain. Investors are cautiously entering the sector, given the risks, but there is growing interest in technologies for automation and precision farming.
The lack of reforms and systematic support from the state leads to the decline of AgriFood Tech. Business is forced to use outdated technologies, international investors avoid investing in the sector, and the country remains an exporter of raw materials, without the ability to create products with high added value.
One of the effective mechanisms for the development of AgriFood Tech is the cluster approach. With the support of the Ministry of Digital Transformation of Ukraine and the UK government, a cluster development program has been initiated, which involves the development of the innovation ecosystem of Ukraine, including technological clusters as an important component of the ecosystem. Clusters are not just communities of companies, but strategic alliances that form an environment for the accelerated implementation of innovations and interaction between business, investors, scientific institutions and government agencies.
Techosystem initiated the creation of the AgriFood Tech cluster as a tool that will help consolidate the efforts of all market participants for systemic changes in the industry. By establishing cooperation between agricultural enterprises, startups, research centers and authorities, the cluster will form an infrastructure for the sustainable development of innovations and scaling of technologies.
This approach allows for more effective coordination of actions of different market players, providing a comprehensive approach to solving industry challenges. In this context, it is important to identify priority steps that the cluster, business and the state can implement for the development of AgriFood Tech.
The development of AgriFood Tech in Ukraine is possible only under conditions of systematic interaction of the state, business, scientific institutions and investors. The introduction of effective support programs, simplification of access to analytical data and creation of favorable conditions for innovations will help to realize the potential of the industry. Access to international markets and introduction of modern technologies will give Ukraine the opportunity not only to increase the production of agricultural products, but also to become a competitive player in the field of agricultural technologies.
Techosystem is a public association of participants in the Ukrainian technological ecosystem for startups, scaleups, and investors.
The cluster operates within the Techosystem union, and you can join by submitting an application for membership via the link .
The initiative is part of the cluster development program, created with the support of the Ministry of Digital Transformation of Ukraine within the framework of the Good Governance Fund project «Innovation Ecosystem», funded by UK International Development from the UK government. The project implementers are Abt Global and KPMG in Ukraine in partnership with Techosystem.
