Australian fruit, vegetable, and nut growers are set to benefit from a $60 million investment into early-stage startups, announced today by Hort Innovation. The grower-owned not-for-profit research and development company aims to tackle economic pressures and declining consumption with this initiative.

Partnership to Drive Industry Transformation

The new Hort Innovation Venture Fund, established in partnership with leading impact investment firm Artesian, will support startups delivering innovative solutions in sustainability, affordability, and resilience. The goal is to improve productivity and elevate the accessibility and appeal of Australian-grown produce both locally and globally.

Hort Innovation CEO Brett Fifield highlighted the critical need for fresh approaches to safeguard Australia’s food security and ensure the industry remains competitive.

“Australian horticulture is world-class and therefore demands the best innovation. This world-first horticulture-specific venture capital fund is designed to attract local and international startups focused on prosperity and sustainability,” Fifield said.

Focus Areas for the Venture Fund

The fund will target three key areas:

• Productivity: Boosting grower adaptability, resilience, and profitability with technologies like AI, automation, and satellite-based decision-making tools.
• Sustainability: Advancing environmental practices by optimizing water usage, reducing carbon footprints, and exploring alternatives to traditional chemical use.
• Consumption: Meeting consumer demand for healthy, nutrient-dense produce with longer shelf lives and enhanced visual appeal.

Artesian’s Vision for Sustainable Growth

Artesian CEO Jeremy Colless described the partnership as a groundbreaking opportunity to drive innovation in the horticulture sector.

“Delivering the world’s first horticulture-specific venture capital fund with Hort Innovation is a significant milestone. This fund will foster resilience and advance Australia’s position as a global leader in sustainable horticulture,” Colless said.

Colless also emphasized the importance of collaboration between industry and investors to address innovation challenges effectively.

Backed by Long-Term Investment Strategy

The Hort Innovation Venture Fund marks the first rollout under the Hort Innovation Frontiers program, a $500 million, 10-year initiative aimed at solving the industry’s biggest challenges.

Artesian, which manages over $1.2 billion in assets, is leveraging its expertise in agrifood and natural capital investments to ensure the success of the venture fund.

With the launch of this fund, Hort Innovation aims to not only drive innovation but also secure the long-term sustainability and profitability of Australian horticulture in an increasingly competitive global market.

Case studies of  existing research and development programs

Case study no 1: Productivity – Drones impersonate bees

As the use of protected glasshouses to grow fruit and vegetables increases with climate change, it has been found that traditional pollinator bees are reluctant to pollinate in these environments. As a result, pollination by hand is often required.

In response, through Hort Innovation, Australian growers and researchers have partnered with Singaporean tech company, Polybee, to trial the use of ‘microdrones’ that pollinate plants using the wind from small inbuilt fans. These devices operate 24/7, automatically returning to a dock to recharge when required, significantly reducing labour costs and increasing efficiency.

Case study no 2: Consumption – Better looking fruit and veg

Data shows one bad eating experience can turn a consumer off buying a fruit or vegetable again.

To limit the chance of that happening, Australian scientists are collaborating with their global counterparts to develop new papaya, strawberries, mangoes, pineapples and passionfruit varieties that are based on consumer preference testing. Each of these naturally-bred varieties will be tailored to smell, taste, feel and appear in a way that is desirable to purchasers. These varieties could also be easier to grow for farmers, requiring less water and being more disease resistant.

Case study no 3: Sustainability – Doing more with less

Sustainable practices are critical to Australian farmers who are keen to maintain land quality for future generations. Investors, export markets and local consumers are also increasingly looking at the sustainability credentials of produce.

A banana grower in the Great Barrier Reef catchment, Gavin Devany, has worked with Hitachi through Hort Innovation to minimise the footprint of his business. Through a specially developed dashboard, he tracks advanced sensing, leachate monitoring and sediment analysis to ensure best management practices relating to irrigation, fertilisation and plant care.