Hort Frontiers announcement good news for mushroom growers
This week’s announcement of the world’s first horticulture-focused venture capital fund is a significant boost for the mushroom industry, offering new opportunities to tackle key challenges and enhance growth.
The world’s first horticulture-focused venture capital fund has been launched to help combat the rising costs of farming and declining fruit and vegetable consumption in Australia.
Led by Hort Innovation, the grower-owned not-for-profit research and development corporation in partnership with Australian-headquartered investment firm Artesian, a non-levy co-investment fund of up to $60 million is on offer to high-growth, early-stage startups. The aim is to fast-track innovative products and services from inception to market readiness.
Hort Innovation chief executive officer Brett Fifield said now more than ever, the need to diversify investment approaches and bring onboard new thinking to benefit industry is critical.
“The Australian horticulture industry is facing unprecedented challenges - high production costs, labour issues, extreme weather impacts to name a few,” he said.
“On top of that, Australian fruit and vegetable consumption dropped by up to 8 per cent to June 2023, compared to the year before.
“To address these challenges head on, Hort Innovation has partnered with Artesian to build bigger, bolder investments in innovation and create a flexible investment framework to accelerate research and development.
“By investing in startups, we are enabling fresh ideas, never-before-seen technologies, and new ways of thinking to make growing easier, more sustainable and cost-effective, and lift consumption.”
Artesian will manage the Hort Innovation Venture Fund, with initial investments in eligible businesses to be made over the next five years.
Key Hort Innovation Venture Fund focus areas include:
Increasing productivity: Helping Australian growers to become more adaptable, resilient and financially sustainable. This may be in the use of AI to predict what to do and when to do it, new automation options, or the use of satellite technology to guide decision-making.
Sustainability: to deliver new innovations Australian growers of fruit, vegetables, nuts, turf and nursery plants can employ. For example, enhancing monitoring capabilities to optimise water use and viable options to reduce chemical use.
Consumption: to drive demand and meet changing consumer preferences and encourage healthy living. For example, naturally breeding produce that is nutrient dense, with a long shelf life while being aesthetically pleasing.
Workforce: Opportunities to upskill existing industry participants and expand local career opportunities in horticulture, particularly in the science and technology arenas.
Artesian CEO Jeremy Colless said the firm was excited about the partnership with Hort Innovation, emphasising its potential to drive impactful investments in cutting-edge technologies that will deliver sustainable, long-term benefits for Australian produce farmers and consumers.
“Delivering the world’s first horticulture-specific venture capital fund with Hort Innovation is a significant milestone and an example of how Artesian works with leading industry, corporate, government and institutional investors to develop tailor made solutions that address innovation challenges,” he said.
Mr Colless highlighted the collaboration as a unique opportunity to elevate productivity and innovation across the agriculture sector, fostering resilience and advancing Australia's position as a leader in sustainable horticulture.
Artesian currently has more than $1.2 billion in assets under management including through technology and venture capital investments across energy transformation, agrifood and natural capital, healthcare and emerging technology segments.
Mushroom grower Georgia Beattie, founder, Bulla Park Mushrooms, praised the programs focus on real outcomes for growers.
"Frontiers has an unapologetic focus on commercial outcomes and impact for Australian growers. Its approach is inherently open-ended, which is essential for fostering true innovation," she said.
Macadamia grower Henrik Christiansen said the new structure is really valuable for growers to provide feedback on what solutions can be ramped up for commercialisation.
"The industry can choose what we back, and the tech developers we partner with are going to get quality feedback to integrate into solutions. That’s the value Hort Innovation can bring to the equation."
Mushroom grower Georgia Beattie