Insights Report Agritech NEW ZEALAND 2020 - LIC
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NEW ZEALAND
Agritech
Insights Report
2020
A WARM WELCOME TO THE TIN AGRITECH INSIGHTS
Thanks to our REPORT 2020 – THE SECOND PUBLICATION
IN TIN’S NEW SERIES OF NEW ZEALAND
Sponsors TECHNOLOGY SECTOR INSIGHTS REPORTS.
Readers who are familiar with TIN will know that the goal of the annual TIN
Report – which has tracked New Zealand’s most successful tech exporting
companies for the past 16 years – is not just to identify how big and successful
the sector is. It is also to understand what success looks like, and how the
companies achieved that success so that they can be an example and
inspiration for others to follow. That is what this Report is all about.
This is also why we were pleased to be approached by David Downs, in his
role as Lead for the NZ Government’s Industry Transformation Plan (ITP)
Taskforce, to produce this report. If New Zealand is to create a managed
plan to grow the Agritech sector, it must firstly look at data that will help
Te Taurapa Tūhono | New Zealand Trade and Enterprise (NZTE) is the New Zealand Government’s GREG SHANAHAN
understand which companies have already been successful and why. Managing Director,
international business development agency, supporting exporters in order to grow a productive, Technology Investment Network
sustainable, and inclusive economy. Agritech is one of the largest sub-sectors that we track, which is largely
because it’s also one of the most enduring. Historically, farming was the
NZTE works with all kinds of innovative businesses, including food producers, Māori land trusts and crucible for New Zealand’s early entrepreneurial and innovation spirit.
iwi, tech startups, service providers, manufacturers, and more. NZTE has around 600 employees Legendary figures such as Bill Gallagher, inventor of the electric fence; Bill
and 180 private sector advisors around the world who use their knowledge and connections to add Hamilton, inventor of the jetboat; Colin Murdoch, the pioneering inventor of
value to ambitious New Zealand businesses who want to go global, for the good of New Zealand. the disposable syringes and tranquilliser gun; and aviator Richard Pearse – all
came from farming backgrounds. This rich heritage of innovation shows New
NZTE operates under the Crown Entities Act 2004, the Public Finance Act 1989, and the NZTE Act 2003, Zealand’s agricultural and technological histories are inextricably linked.
governed by a board of seven directors and four crown ministers, and is fully committed to the
Some of the oldest companies in the TIN Report are Agritech firms, with histories
Treaty of Waitangi.
going back more than a century – and many of the 20 leading agritech companies
in the TIN200 are distinguishable for their maturity and reliable product delivery.
However, in an ever changing world that is facing an increased range of
challenges from surging populations and food production issues, to global
pandemics, land use and climate change, the Industry Transformation
Plan is needed to help primary industry evolve as one of the economic
pillars of New Zealand, and meet the challenges of this new world.
Today, we have an opportunity to leverage our primary industries even further
The Ministry of Business, Innovation and Employment (MBIE) is the Government’s lead business-facing with the disruption of modern technology. The world sees New Zealand
agency. Its contribution to improving the well-being of New Zealanders is summarised in its stated purpose: as a reliable producer of food, so if we can change the unit economics of
to grow New Zealand for all. food production and delivery, that’s transformational for the country.
‘For all’ means all people have an opportunity to participate in and benefit from the economy. What’s evident from this Report is that there are some very exciting opportunities
For MBIE, a successful New Zealand looks like: that now exist for Agritech to leverage the experience of the wider tech
sector to aid this transformation and harness global investment interest
• Prosperous and adaptable people, sectors, and regions
in NZ tech companies, while also moving the farming community towards
• People are skilled and engaged in safe and fulfilling work engaging more with this new technology to add value and reduce costs.
• Informed consumers and businesses interacting with confidence
I commend this report and the TIN team who prepared it. Our deep gratitude
• Value is sustainably derived from the natural environment also to our sponsors and their representatives for their input, assistance,
• A dynamic business environment fostering innovation and international connections. and support through the development of this Report, especially David Downs
from NZTE, Simon Yarrow and Nicky Molloy from Callaghan Innovation,
Arek Wojasz from MBIE, and Peter Wren-Hilton from Agritech NZ.
Finally, to the Agritech companies featured in this Report, congratulations
on being part of the long history of New Zealand innovation. We
wish you every success as you continue to grow and transform
your industry, New Zealand, and the world for the better.
Callaghan Innovation exists to activate innovation and help businesses grow faster for a better
Ngā mihi
New Zealand by partnering with ambitious businesses of all sizes, and providing a range of
innovation and research and development (R&D) services to suit each stage of growth.
& THE TIN TEAM
With a team including more than 200 of New Zealand’s leading scientists and engineers, Callaghan
Innovation empowers innovators by connecting people, opportunities, and networks, and providing
Welcome
tailored technical solutions, skills and capability development programmes, and grants co-funding.
Callaghan Innovation also enhances the operation of New Zealand’s innovation ecosystem,
working closely with government partners, Crown Research Institutes, and other
organisations that help increase business investment in R&D and innovation.
01
Contents RT HON Jacinda Ardern
01 Welcome Greg Shanahan 25 The Eco-System “NEW ZEALAND’S PLACE AT THE EDGE OF THE
WORLD HAS BRED A UNIQUE WAY OF LOOKING
Rt Hon Jacinda Ardern / Hon Damien O’Connor / 03 New Zealand Agritech Eco-System / 26
AT CHALLENGES. WE STRETCH OURSELVES,
Data Source and Key Terms / 04 Who is Investing in NZ Agritech? / 28
GO BEYOND THE ACCEPTED WISDOM AND
Investor Profile: Finistere Ventures / 29 FOLLOW GOOD IDEAS WHEREVER THEY LEAD,
05 New Zealand Agritech Sector Overview Game Changers: Where the Tech is Heading / 30 AND OFTEN WE END UP LEADING THE WORLD.
What is Agritech? / 06 Isolation has driven us to become innovators, and we’ve had to
The NZ Agritech Sector – The Big Picture / 07 31 TIN200 Agritech Company Profiles be creative, practical, and ready to challenge convention. We’re
carrying that approach forward in today’s connected world. The
Summary of TIN200 Agritech Companies / 08 TIN200 Agritech Company Profiles / 32 search for innovation, particularly in technology, never stops.
TIN200 Agritech Companies Cost Metrics Overview / 09 We are committed to the wellbeing of all New Zealanders by
supporting our export economy and it’s great to see our technology
2019 Key Markets for TIN200 Agritech Companies / 10 39 Early Stage Agritech Companies Directory companies playing a key role in this. I want to congratulate
Key Insights into the TIN200 Agritech Companies / 12 everyone helping put New Zealand at the cutting edge of
A Selection of Early Stage Agritech Companies
technology and shaping our nation’s story of innovation.”
in New Zealand / 40
12 Indepth: The Companies BioLumic / 40 RT HON JACINDA ARDERN,
Prime Minister of New Zealand
PICMI / Pastoral Robotics / 41
TIN200 Agritech Companies 2019 / 14 (TIN Report Launch, 31 October 2019)
Early Stage Agritech Companies Directory / 42
Agritech Companies in the Regions / 16
About TIN / 48
NZ’s Agritech Sector: A Plan for Industry Transformation / 17
The NZ Tech Sector:
Responding to the COVID-19 challenge / 18
19 Mavericks
People: Sir William Gallagher / 20
HON Damien O’Connor
Companies: Livestock Improvement Corporation / 22
People: Emma Parsons – Agrigate / 23
NEW ZEALAND’S LONG HISTORY OF INNOVATION
Companies: Bluelab / 24 IN THE PRIMARY SECTOR HAS ALWAYS BEEN
SUPPORTED BY HOME-GROWN TECHNOLOGY –
FROM REFRIGERATED SHIPPING TO ELECTRONIC
ON-FARM MONITORING, TO USING SATELLITE
IMAGERY TO IMPROVE PASTURE.
This excellent report highlights the contribution of the agritech sector to
our primary industries, and as a growing export industry in its own right.
The Government is pleased to continue supporting this work with an
$11.4m investment in the Agritech Industry Transformation Plan
as part of Budget 2020.
This work will enable our bold vision of $44 billion growth for the
food and fibres sector over the next decade – keeping us on the
cutting edge in how we grow, prepare and market quality products
fit for a better world, while actively protecting and enhancing
our natural environment and looking after our people.
HON. DAMIEN O’CONNOR,
Minister of Agriculture
02 NZ Agritech Insights Report 2020 03
Data Source and Key Terms
Published annually, the purpose of the TIN Report is to quantify performance of industries, high growth companies, region
the economic significance of New Zealand’s globally focused and ownership structure, helps facilitate commentary around
technology industry by capturing key data on the country’s top particular areas of growth.
200 high-tech exporting companies, known as the TIN200.
The data under analysis in this inaugural Agritech Insights Key Terms
Report focuses on the companies in the TIN200 that were TIN – Technology Investment Network.
categorised under the Agritech secondary sector in the 2019
TIN100 – The top 100 companies (1-100) ranked by revenue.
TIN Report, plus two companies that were categorised under
Agritech as their tertiary sector. TIN’s Next100 – The next 100 companies (101-200) ranked
by revenue.
Inclusion Criteria TIN200 – The combined TIN100 and Next100 (1-200)
To qualify for inclusion in the TIN200, companies must: companies ranked by revenue.
1. Originate in New Zealand* EBITDA – Earnings before Interest, Tax, Depreciation, and
Amortisation. It is an approximate measure of a company’s
2. Retain a meaningful presence in New Zealand
operating cash flow.
3. Operate in the ‘High-tech Manufacturing’, ‘ICT’, or
CAGR – Compound Annual Growth Rate. It is the mean annual
‘Biotech’ primary sectors
growth rate over a specified number of growth periods longer
4. Have developed their own technology-based than one year.
intellectual property
Investment-backed Private are firms that have received
5. Generate at least 10% of their revenues offshore investment from venture capital, private equity and/or
*Foreign acquired companies are included in the report only organised angel investor groups.
where they meet the above criteria, are not subsumed within Foreign-owned companies are firms that have 100%
the parent company, and still provide their own financial data. foreign-ownership.
05
Data Source Research Limitations
The Survey Tool Not all companies included in this report chose to
In 2019, TIN directly requested data from approximately 1,000 participate. Companies may choose to keep their revenue
companies. Data captured includes revenue and EBITDA [i], confidential during a commercially sensitive phase. TIN’s
expenditure details, best business decisions, employee reports provide an industry overview of New Zealand’s
numbers, sales, and company ownership. Data is aggregated top 200 export-focused high-tech companies, and do not
and trended to create an in-depth profile of the High-tech exclude non-participants. Instead, an estimated revenue
sector and its performance. Certain information is published in figure is published and overall analysis is carried out using
the TIN Report for each company [ii], while the rest [iii] is reported that estimate. TIN considers all information to be correct
in aggregate to protect commercial sensitivities. at the time of printing and accepts no liability for factual
errors. All companies mentioned in TIN publications
Data Collection may contact TIN to amend any incorrect information.
The NZ Agritech
TIN maintains a database of technology companies in New
Limitation of continuity: As the companies in the TIN200
Zealand, which is added to and updated on an ongoing basis.
rankings vary each year, the historical data in this report only
Annually, companies on this database are asked to submit
pertains to the 2019 companies, unless otherwise stated.
key information in an online survey. In addition, TIN collects
data from primary and secondary sources including business New Zealand Equivalents to International Financial
Sector Overview
media, our sponsors, and industry groups. Where surveys are Reporting Standards (NZ IFRS): Effective for reporting
not returned or are incomplete, publicly available figures are periods from 1 January 2019, IFRS 15 is a new accounting
used. If none are available, revenue is estimated[iv] based on standard that introduces the inclusion of useful information
staff numbers, revenue per employee ratios from comparable related to revenues and cash flows. This will change how a
companies, and data supplied in previous years. Once the data significant number of TIN companies recognise revenue going
gathering phase is complete, all companies are electronically forward. Within the TIN companies, some have adopted this
sent a pre-publication check to ensure data accuracy. All standard within FY19 reporting, whilst others will adopt this
companies are asked to confirm the information that is standard from FY20. This change limits historic comparisons
recorded, or to supply adjusted data. of the data and, where relevant, is noted in the text.
In the analysis of company data, a number of aggregations are
carried out. Primary and secondary sector analysis for relative
i. Financial year ends for the current report are almost exclusively: December 2018; March 2019; and June 2019. ii. Contact details, ownership structure, key products, highlights, and
total revenue. Ownership is current to 31 August 2019. iii. Expenses, research and development activities, company issues, sales and employee numbers by region. iv. As indicated by
an * in the company rankings and profile lists. PHOTO CREDIT: Paul Sutherland Photography
04 NZ Agritech Insights Report 2020 05
The NZ Agritech Sector
What is Agritech? The Big Picture
DEFINITION: Manufacturing, biotech, and digital based technology companies that are
creating product, service, and value chain solutions for the primary sector (agriculture,
horticulture, apiculture, and aquaculture), with the aim of improving yield, efficiency,
profitability, sustainability, and quality. 2
Gallagher
Group
Livestock
Improvement
Corporation
>$200m
TO
Robotics /
Aquaculture Drones
TA
Automation
5
L
IE S
AG
AN
R
ITE
Argenta Compac Sorting Equipment
MP
NDA Group Tru-Test Group
CH
CO
Internet of
Agriculture Horticulture Sensors
Waikato Milking Systems
RE
Things
20 0
VE
TI N
$50m - $200m
NU
E$
1.4
Earth Advanced
Precision Resource
B
13
Observation Machinery &
Irrigation Management
Data Equipment
Simcro BBC Technologies Lonza Wyma Engineering (NZ)
Dairy Technology Services Bluelab Trimax Mowing Systems
Figured South Pacific Sera Zee Tags TracMap
Processing Wildeye BioStart
Biotech Vertical for High
Farming Value $4m - $50m
Products
Genetics A sample of the 109 Early Stage Companies
Breeding
Agrigate Autogrow DataPhyll Ltd Farm IQ Halter Knode Ltd Lanaco Mastaplex
NuPoint Ltd PlusGroup Horticulture RH Innovation Ltd RipeTime RiverWatch Robotics Plus
Trackit Ltd Tagit Ubco Wine Grenade Woolchemy Zeddy
Pre-revenue - $4m
ICT High-Tech Manufacturing Biotech
06 NZ Agritech Insights Report 2020 The New Zealand Agritech Sector Overview 07
Summary of TIN200 TIN200 Agritech Companies
Agritech Companies Cost Metrics Overview
OF THE 200 COMPANIES IN THE 2019 TIN REPORT, 20 (OR 10%) ARE AGRITECH FIRMS. THE NZ AGRITECH SECTOR EMPLOYS NEARLY 5,000 PEOPLE GLOBALLY WITH
57.6% OF THOSE IN NEW ZEALAND (2,852 PEOPLE). 2019 SAW EMPLOYMENT
Number of TIN200 Together, these firms generated $1.4B benchmark of 7.1%, demonstrating IN THE SECTOR RISE BY 6.6% (308 WORKERS) OUTSTRIPPING REVENUE GROWTH
Agritech Companies in revenue in 2019, which is 11.6% of the the relative strength of ‘Agri-Biotech’
total TIN200 revenue and slightly higher as a sub-sector in New Zealand.
FOR THE SAME PERIOD (2.7%).
20
than some other sectors with a higher
ICT companies in the Agritech
number of companies. This reflects
sector are represented by just three
Employ: The 20 top Agritech firms’ investment in Sales & Marketing and R&D
4,956
both the size and the maturity of the is relatively low in comparison to the TIN200. This may be a reflection
companies (15%) in the TIN200. This
companies in the sector, with only two of the mature nature of the companies and their focus on existing
10.0% of TIN200 Companies is in stark contrast to the 47.5% of
companies aged less than 15 years-old, customers and fine-tuning of products.
all TIN200 companies that fall into
and six with revenues over $100m.
the ICT category, which generated Recent international acquisitions and consolidations in the sector
High-tech Manufacturing companies in 38.7% of TIN200 revenue. However, people globally were a contributing factor to the slower growth in 2019.
the Agritech sector generated just over it is worth noting that just under half
Total Agritech Revenue two-thirds of the sector’s revenue (47%) of the Early Stage companies
$1.4B
($964.6m), with large established (ie. those that fall below the TIN200
companies like Gallagher Group, NDA revenue threshold) in the Agritech Average sector wage: Average revenue per employee:
$91,020 $282,690
Group, Compaq Sorting, and Tru-Test sector are ICT companies – a clear
Group dominating the category. reflection of the evolving nature, and
11.6% of TIN200 Revenue continual modernisation of technology
Meanwhile, Biotech firms contributed
as it is used in agriculture today.
a further 29% of the sector’s revenue,
much higher than the TIN200 (higher than the TIN200 average annual (higher than the $235,133 average for TIN200 companies)
wage of $82,040)
Growth Revenue of TIN200 Agritech Firms by Category
$37.3m Biotech
$410.5m
High-tech
Manufacturing
$964.6m
$ Invested in wages and salary: Cost Metrics as a % of Revenue
$451.1m
3.3% of TIN200 Growth
34.9%
$1.4B
32.2%
Average Company Age
31years old
ICT
$25.9m
$ Invested in sales and marketing:
$171.4m
(TIN200 average company
age is 29 years)
16.1%
13.2%
Revenue Share and Number of TIN200 Agritech 12.2% 12.0%
11.1%
5-year CAGR Companies by Category
6.2%
% Companies 6.9%
$ Invested in research and development:
$97.3m
60.0% 15.0% 25.0%
(TIN200 5 year CAGR 8.9%)
% Revenue Wages Sales Research EBITDA
& Salary & Marketing & Development
68.8% 1.8% 29.3% TIN200 Agritech Firms
High-Tech Manufacturing ICT Biotech *Profitability is measured by EBITDA.
08 NZ Agritech Insights Report 2020 The New Zealand Agritech Sector Overview 09
2019 Key Markets for
TIN200 Agritech Companies NEW ZEALAND IS STILL A KEY MARKET FOR AGRITECH EXPORTERS, AS
COLLECTIVELY 42.7% OF THEIR REVENUE COMES FROM NEW ZEALAND.
This is unsurprising given the reliance of the New Zealand is most likely a reflection of the maturity of the
AGRITECH FIRMS TIN200 economy on agriculture, but also suggests that New distribution chains that companies have established
Zealand continues to be an excellent location from in North America and a stronger alignment of the
Total Exports $803.3m / 57.3% $8.7B / 71.9% which to develop, test, and monitor products in market. products with the technology-intensive approach
to agriculture that exists in North America.
Export Growth $22.9m / 2.9% $881.6m / 11.3% Unlike the wider TIN200, the second largest market
for Agritech companies is North America (24.4%), Export growth is also being driven by the North American
with Australia (12.6%) and Europe (10.2%) ranking market, with Europe also showing a notable degree of
a distant second and third respectively. This growth at 5.5%. This traction in the European market
has largely been driven by acquisitions in recent years
by Datamars (Simcro, Tru-Test Group) and Tomra
(BBC Technologies, Compac Sorting Equipment).
North America
% of Revenue Europe
24.4% Asia
% of Revenue
Revenue: $342.0m
Growth: 5.0%
10.2% Middle East % of Revenue
4.5%
Revenue: $142.2m % of Revenue
Growth: 5.5%
0.1% Revenue: $63.1m
Growth: -1.1%
Revenue: $1.9m
Growth: 12.0% Australia
TIN200 Export Revenues
Australia 25.7% New Zealand
% of Revenue
North America 22.6% 12.6% % of Revenue
Europe 12.1%
42.7%
Asia 7.4% Revenue: $176.8m
Growth: -1.5%
Rest of World 3.7% Revenue: $597.8m
Growth: 2.5%
New Zealand 28.5%
10 NZ Agritech Insights Report 2020 The New Zealand Agritech Sector Overview 11
Key Insights into the
TIN200 Agritech Sector
THE DATA IN THIS REPORT IS BASED ON RESPONSES COLLECTED BY TIN IN ITS 2019
SURVEY OF NEW ZEALAND TECH COMPANIES, FIRST PUBLISHED IN NOVEMBER OF
THAT YEAR, BEFORE THE DISEASE WE NOW KNOW AS COVID-19 EVEN HAD A NAME.
The unprecedented situation of the global pandemic that the COVID-19 is set to have a major impact on the
world now finds itself in only half a year since has created such Agritech sector, but clear opportunities exist
an upheaval in the world economy that any pre-2020 data
must be viewed through the lens of this current situation. Like every other technology sub-sector in the TIN200,
Agritech is grappling with the impacts of the global
Holding that in mind, we can still glean some vital insights COVID-19 pandemic on its day-to-day business and export
from the 2019 TIN survey data, which can provide a baseline prospects. However, with 42% of revenue already coming
for the New Zealand Agritech sector to use as a key point of from local sales in 2019, New Zealand Agritech companies
reference as it takes its next steps towards the challenges clearly have a strong base to work from in recalibrating and
of a new world economy impacted by COVID-19. refocusing their export efforts in 2020. What’s more, with
New Zealand’s strong global reputation as a reliable food
2019 was already a challenging year for the producer, opportunities exist for Agritech companies to
help the primary industries leverage this in ways that will
Agritech sector, but profitability remained strong
add more value and help earn more for our produce.
As revealed in the 2019 TIN Report, the combined growth
of Agritech companies in the TIN200 slowed to 2.3%, the
Agritech as a sector is ripe for transformation
slowest of any secondary sector in that year. Notably, this
was down from the 15.0% growth rate in 2018. Despite In 2019, the 20 top Agritech firms’ investment in Sales &
this slower growth, the profitability of the TIN200 Agritech Marketing and R&D was relatively low in comparison to
13
companies in 2019 was still strong, with a combined the rest of the TIN200. While this is likely a reflection of
EBITDA of 13.2%, up 10.2% from the previous year. the mature nature of the companies and their focus on
existing customers and fine-tuning of products, it does
also hint that the sector is ripe for transformation.
High-tech Manufacturing dominated
the sector, but shifts are evident
Now is the time for disruption
High-tech Manufacturing companies in the Agritech sector
generated just over two-thirds of the sector’s revenue As has been seen in comparable sectors like HealthTech,
($964.6m), with large, long-established companies like collaboration will be more crucial than ever if disruption is
Gallagher Group, NDA Group, Compaq Sorting, and Tru- to take place. There are promising signs with significant
Test Group dominating the category. The challenge for foreign investment interest in emerging companies such as
Robotics Plus and Halter. In addition, there is an extensive
the sector is how to rapidly scale these businesses.
pipeline of Agritech firms indicating we have an expanding
However, in this environment, it appears the general focus
In-Depth:
eco-system, with the skill set and capacity to nurture
for new tech companies is shifting towards ICT solutions,
them. We have also seen early stage companies attract
reflected in nearly half (47%) of Early Stage companies
the attention of both domestic and international investors,
represented in this Report focusing on this area.
a critical ingredient for growth. The path forward for the
Agritech sector may not be as clear at present, hence
Consolidation and acquisitions the importance of an Industry Transformation Plan to
The Companies
have slowed growth progress a clear forward vision for New Zealand agritech.
The Agritech sector has seen considerable changes in
company ownership over the past few years, with several
of the largest TIN200 Agritech companies being acquired The TIN survey in 2020 will include a range of
by large offshore interests, particularly from Europe. In the questions for NZ tech companies on how they are
past three years, Norwegian company Tomra has acquired dealing with the global pandemic. Results from this
two of NZ’s largest automated fruit sorting companies, survey will be published in the 2020 TIN Report,
Compac Sorting Equipment, and BBC technologies. As a available in November this year. For more information
result of Datamars’ partial acquisition of Tru-Test Group, on how your company can participate in this survey,
the company has now been split into two entities; Tru-Test visit www.tin100.com/faq/ and request a survey.
Group and Dairy Technology Services, the latter of which
remains privately owned. This considerable consolidation
and acquisition activity in the sector is a likely factor for the
slowing of this traditionally high-growth market in 2019. PHOTO CREDIT: Paul Sutherland Photography
12 NZ Agritech Insights Report 2020 13
TIN200 Agritech
Companies 2019
2019 NAME DESCRIPTION 2019 PRIMARY SECTOR FORMATION OWNERSHIP 2019 2018 GROWTH GROWTH 2019 PHYSICAL CITY WEBSITE
AGRITECH TIN200 REVENUE REVENUE (%) ($000) STAFF
RANK RANK ($000) ($000) EMPLOYED
TIN100 Companies
1 Gallagher Group Animal management, security, 5 High-tech Manufacturing 1938 Private $271,000 $250,000 8.4% $21,000 1029 Hamilton www.gallaghergroup.co.nz
and fuel systems.
2 Livestock Improvement Agricultural and software solutions. 6 Biotech 1988 Public $246,561 $236,400 4.3% $10,161 771 Hamilton www.lic.co.nz
Corporation
3 NDA Group Specialty manufacturing and servicing of 11 High-tech Manufacturing 1997 Investment-backed $174,000 $162,838 6.9% $11,162 525 Hamilton www.nda.co.nz
industrial storage and process vessels. Private
4 Compac Sorting Equipment Sorting and automation solutions 16 High-tech Manufacturing 1984 Foreign Owned $151,900 $145,400 4.5% $6,500 527 Auckland www.compacsort.com
for the produce industry.
5 Argenta Animal health products. 21 Biotech 2006 Private $114,226* $114,000 0.2% $226 420 Auckland www.argentaglobal.com
6 Tru-Test Group Agritech products and services. 24 High-tech Manufacturing 1964 Foreign Owned $107,032* $139,032 -23.0% -$32,000 548 Auckland www.tru-test.com
7 Waikato Milking Systems NZ Milking equipment manufacturer. 41 High-tech Manufacturing 1992 Investment-backed $67,640* $61,750* 9.5% $5,890 152 Hamilton www.waikatomilking.co.nz
Private
8 Simcro Design and manufacture animal 52 High-tech Manufacturing 1992 Foreign Owned $49,637* $49,176 0.9% $462 190 Hamilton www.simcro.com
health delivery systems.
9 BBC Technologies Advanced vision sorting and 58 High-tech Manufacturing 2000 Foreign Owned $44,110 $35,956 22.7% $8,154 141 Hamilton www.bbctechnologies.com
packing equipment.
10 Lonza Chemical company developing products 68 Biotech 1988 Foreign Owned $35,352 $35,966 -1.7% -$614 54 Central North Island www.lonza.co.nz
to meet specific agrichemical and
timber treatment requirements.
11 Wyma Engineering (NZ) Post-harvest vegetable handling 78 High-tech Manufacturing 1991 Private $31,000 $34,000 -8.8% -$3,000 145 Christchurch www.wymasolutions.com
equipment and solutions.
12 Dairy Technology Services Dairy technology services. 92 High-tech Manufacturing 1964 Private $25,000* $32,000* -21.9% -$7,000 75 Hamilton www.dairy.tru-test.com
Next100 Companies
13 Bluelab Monitoring and control systems for 106 High-tech Manufacturing 2004 Investment-backed $19,400 $13,900 39.6% $5,500 64 Central North Island www.bluelab.com
domestic and commercial plant growers. Private
14 Trimax Mowing Systems Manufacturer and marketer of 131 High-tech Manufacturing 1983 Private $14,364* $10,550* 36.1% $3,814 60 Central North Island www.trimaxmowers.com
agricultural mowing equipment.
15 Figured Online financial managment 138 ICT 2014 Investment-backed $12,554* $10,000* 25.5% $2,554 58 Auckland www.figured.com
software for farmers. Private
16 South Pacific Sera Animal-derived biologicals and 147 Biotech 1988 Private $10,462* $8,810* 18.8% $1,652 57 Canterbury / Upper www.southpacificsera.co.nz
pharmaceutical contract manufacturer. South Island
17 Zee Tags Livestock identification. 157 High-tech Manufacturing 1991 Foreign Owned $9,502* $9,238* 2.9% $264 40 Auckland www.zeetags.com
18 TracMap GPS guidance and mapping system. 174 ICT 2005 Private $6,800 $5,800 17.2% $1,000 50 Otago / Southland www.tracmap.com
19 Wildeye Internet of Things based technology 178 ICT 2002 Private $6533* $5000* 30.7% $1,533 35 Auckland www.mywildeye.com
for agriculture, environmental,
and water monitoring.
20 BioStart Biological fermentation products for 197 Biotech 1994 Private $3,934 $3,900 0.9% $34 15 Auckland www.biostart.co.nz
use in agriculture and horticulture.
*Estimated revenue.
14 NZ Agritech Insights Report 2020 In-Depth: The Companies 15
Agritech companies NZ’s Agritech Sector:
in the Regions A Plan for Industry Transformation
129
IN JULY 2020, THE GOVERNMENT WILL RELEASE ITS REFOCUSED
Auckland APPROACH TO INDUSTRY POLICY. THE CORE OF THIS NEW
Companies APPROACH IS THE DEVELOPMENT OF SECTOR PLANS OR INDUSTRY
Central North Island TRANSFORMATION PLANS (ITPs) FOR SELECTED SECTORS OF THE
37
(20 x TIN200 and 109 x Early Stage companies)
ECONOMY WHERE SIGNIFICANT GROWTH OPPORTUNITIES EXIST,
OR FOR SECTORS THAT ARE FACING SIGNIFICANT DISRUPTION AND
Locations of the
TIN200 Agritech Companies
Hamilton
24 NEED SUPPORT TO RESET AND TRANSITION, OR THOSE SECTORS
THAT MAY NOT BE AREAS OF STRONG GROWTH POTENTIAL, BUT
AUCKLAND NEED TO BECOME MORE RESILIENT AND/OR SUSTAINABLE.
Tru-Test Group
Compac Sorting Equipment
Argenta
Zee Tags
Wildeye
BioStart
20 An ITP is a long-term strategy developed with key stakeholders
across the wider sector eco-system that provides a clear
picture of the challenges and opportunities faced by each
sector, agrees on a long-term vision, and sets out an action
Figured plan that spans a wide range of areas, including research,
science and innovation, trade, education, and skills.
CENTRAL NORTH ISLAND New Plymouth Agritech was selected as a priority sector because of its
Lonza importance to New Zealand’s transition to a highly productive,
Bluelab low-emissions future, its adjacency to our strong food and
2
Trimax Mowing Systems fibre sector, and our existing expertise and investment in this
area. The emergence of Agritech New Zealand and their role
HAMILTON
in providing a cooperative partner for the Government in this
Gallagher Group sector was also an important factor.
Livestock Improvement Corporation
NDA Group Through the ITP document, the Government aims to provide
Waikato Milking Systems NZ
Simcro
BBC Technologies
Dairy Technology Services
2 the Agritech sector with support to accelerate its growth,
attract necessary investment, increase commercialisation of
New Zealand agritech intellectual property (IP), address global
opportunities and increase exports, develop needed skills and
address regulation, and data interoperability issues.
DAVID DOWNS, Agritech ITP Taskforce Lead
CANTERBURY /
UPPER SOUTH ISLAND
Wellington / Part 1 of the document will present the context, challenges and
South Pacific Sera Lower North Island opportunities for the sector. Part 2 will set out an agreed vision
for the sector, and outline a response to the issues presented
Wyma Engineering (NZ) in Part 1, focusing primarily on the factors that industry,
government, workers, and the broader Agritech eco-system “New Zealand has the
21
OTAGO / SOUTHLAND can collaborate on together. The final section, Part 3, will
TracMap opportunity to be a world
outline an action plan consisting of High Impact Projects and
leader in this area, and to
a broader eco-system development plan, to help the Agritech
sector achieve its vision. see significant economic
benefit from our activities,
We know that a ‘business as usual’ approach will not result in
while also using technology
Canterbury / transformation. Funding the activities and initiatives resulting
from this work will be a critical part of ensuring the actions to reduce our impact on the
Upper South Island lead to meaningful growth. Reflecting this, the Government land. Agritech is right at the
has committed $11.4m as part of Budget 2020 to implement nexus of New Zealand’s past and future.”
the action plan of this agritech ITP. This will allow us to now
proceed in earnest and in partnership with industry to make
9
HON PHIL TWYFORD
this plan a reality and start progressing towards our vision for Minister for Economic Development
New Zealand agritech.
DAVID DOWNS, Agritech ITP Taskforce Lead
Otago / Southland The above summary is adapted from the NZ Government’s Industry Transformation Plan for the Agritech sector, for which this TIN Agritech Insights Report
has provided supporting information. To access the full plan, go to: https://www.mbie.govt.nz/dmsdocument/10750-growing-innovative-industries-in-
new-zealand-agritech-in-new-zealand-industry-transformation-plan-
16 NZ Agritech Insights Report 2020 In-Depth: The Companies 17The NZ Tech Sector:
Responding to the COVID-19 Challenge
The Agritech New Zealand
THE CURRENT CHALLENGES THAT Insights Survey
THE GLOBAL ECONOMY IS FACING IN The Agritech New Zealand Insights
RELATION TO THE ONGOING IMPACT Survey took place between Tuesday,
31 March and Thursday, 9 April 2020 with the purpose of
OF THE COVID-19 PANDEMIC CANNOT
obtaining a better understanding of the New Zealand agritech
BE UNDERESTIMATED. sector’s resilience and business continuity planning, both
However, as difficult as they have been, I am during the COVID-19 lockdown and beyond. The results were
encouraged by the leadership and unity that has designed to help Agritech New Zealand identify new measures
been displayed in New Zealand in response, which that might assist kiwi agritech businesses navigate New
is a positive sign that NZ’s prosperity, growth, Zealand’s planned economic recovery.
and harmony will continue beyond this crisis. The respondents’ answers to the open and closed ended
I am also encouraged by the fact that 2019 saw the most questions highlighted several major areas of concern.
successful year on record for New Zealand’s technology These included, access to funding, access to customers,
export sector, reflected in the 2019 TIN Report. Over the and access to markets.
past 20 years, the technology sector has helped create
an exciting diversity in our export economy, and grown 50.53% *Total respondents 95
to the point that it is our third largest export earner.
35.8%
19
What’s more, many of the companies that have appeared 32.6%
and succeeded over that time – including a significant 28.4%
number operating in the agritech space – are strong, 18.9%
robust, innovative, and well placed to continue to
be so in an ever-changing, unpredictable world.
Tech has succeeded as an industry in New Zealand
because of the positive inclusive dialogue that is a Access to Access to Access to Access to Other
hallmark of our society, which in turn is imbued in customers funding supply chain staff
our companies. This translates to clarity of purpose
and focus in delivery of our technology solutions.
What are the biggest risks to your current business activity?
It’s why I’m confident that a post COVID-19 recovery
will not only deliver a resurgent tech sector but a Based on the results of the survey, Agritech New Zealand
believes that the closed borders will significantly impact
Mavericks
more confident, prosperous New Zealand that is
prepared to navigate new global realities. It will bring the ability of agritech businesses to grow their offshore
no end of challenges, yes – but in such a world, we sales in the short to medium term. To compensate for the
are increasingly the authors of our own destiny. inability of entrepreneurs to travel overseas, a novel set of
support mechanisms need to be put in place to ensure that
international markets remain open to New Zealand’s agritech
As companies focus on sector post the relaxation of border controls.
the reality of the current The technology sector in New Zealand has a long tradition of
It is clear that novel solutions also need to be considered to
global pandemic address the funding issue. The unprecedented nature of the
combining intellectual smarts with deep practical skills.
situation, we should COVID-19 pandemic means that many potentially high-growth As key contributors to this tradition, TIN’s Mavericks
not be afraid to look for New Zealand Agritech businesses have been exposed at the represent the Kiwi characteristics of commercial and
ways that we can harness most important part of their funding cycle. technical innovation, and pioneering leadership.
the ‘slingshot effect’ Agritech New Zealand is delighted
that technology offers as by the NZ Government’s Budget
we come out from under the rock of commitment of $11.4m to support
COVID-19. Though painful, it also presents the Agritech Industry Transformation
a unique opportunity for New Zealand tech Plan. We believe it can create
significant opportunity for New
businesses to emerge from this not only
Zealand’s agritech businesses,
intact, but on a healthy growth trajectory. both short-term and long-term.
GREG SHANAHAN PETER WREN-HILTON Executive Director, Agritech NZ
Managing Director, TIN
Full results of the Agritech NZ survey and can be viewed at
www.agritechnz.org.nz Photo courtesy of Livestock Improvement Group.
18 NZ Agritech Insights Report 2020 19People:
Sir William Gallagher
WHEN THINKING ABOUT THE GREATEST NZ AGRITECH ‘MAVERICKS’ – DEFINED
BY TIN AS REPRESENTING THE KIWI CHARACTERISTICS OF COMMERCIAL AND
TECHNICAL INNOVATION, AND PIONEERING LEADERSHIP – THE NAME THAT
INVARIABLY LEAPS TO MIND IS SIR WILLIAM GALLAGHER.
“Over the sixties when I joined the company, electric fencing
His company, Gallagher Group, appeared on the changed quite dramatically,” Gallagher says, “but it was
very first TIN company listing in the inaugural 1970 before we really got it commercial. I started looking
Report in 2005, and has ranked highly on the into exporting at that point and my father said to me, well
it’s never going to work but you’re welcome to try.”
TIN200 list every year since – often in the top
ten – and continues to be the most successful Following the start of their exports, between 1972 and
agritech exporting company in New Zealand, 1976, turnover doubled each year. By this time the fences
had around five or six orders of magnitude more energy,
with revenues in excess of $300m in 2020.
and this increase allowed the company to start eyeing
SIR WILLIAM GALLAGHER (KNZM, MBE, HonD.) CEO, Gallagher Group.
For this inaugural NZ Agritech Insights Report, up larger four-legged animals in the late seventies.
it is fitting that we revisit the first time we After spending $100m on physical palisade fence to keep
profiled Sir William as a TIN Maverick, as he elephants out of their palm oil plantations, only to have Sir William has now worked in the company for 65 years, His passion for the business is obvious, and it is this
continues to be a leading voice of advocacy for the fencing erode in monsoon season and be pushed over leading it for more than 45. Today the company sells into that has helped grow Gallagher Group from a small
the sector and an inspiring example of success. by the elephant’s Malaysia’s Federal Land Development 140 countries, and when not working, Sir William is travelling ten-person company in 1962 when he joined, to a
Corporation was looking for a second option. around the world meeting suppliers and customers. The global leader with more than 1000 staff today.
word is he’s visited 174 countries in his life, so far.
“Someone there had read about our electric fencing,” Gallagher His success in business also saw him knighted in 2010
Now famous, the tale of Joe the horse in the early says, “and so they called us up. We did about 5,000km of He may have the luxury of being able to travel and relax and awarded an MBE in 1987 followed by a Companion
1930s was where Gallagher Group began. electric fencing for them and that really got it rolling.” now, but says it was not always so. of New Zealand Order of Merit in 1998. He was also
Fed up with the horse scratching his rump on their Essex awarded the prestigious Excellence in Communication
This introduction into wildlife and game management quickly “We have our ups and downs, it’s not all great but we’re
car, William Gallagher senior decided to run a voltage Leadership award in 1996 – the first time in its history
escalated with contracts in Sri Lanka, Kenya, South Africa, like the duck – calm on top but paddling like hell underneath,”
across it so Joe would get a shock next time he tried that it had been awarded outside of North America.
Africa, and Nairobi to name a few. Gallagher’s systems have he laughs.
to scratch. Although they never saw it happen, one day Gallagher’s best piece of advice? Go around with eyes
since developed further with smart technology allowing When discussing good management, every point seems to be
the wire had been triggered and Joe the horse never and ears open.
sensors along the fence line to check integrity of the fence, pulled directly from the bible of business – good people, good
came near the car again. From this point on, Gallagher
from up to ten kilometers away. Gallagher says his next leadership, delegation not abdication – to name a few of his “Life is far too short to make all your own mistakes so
senior began his work making electric fences.
move into security for people in 1988, was a logical one. principles. Getting good people is his number one key point. learn from the others.”*
Born in Hamilton in 1941, Sir William Gallagher ( junior) was
the third child in a family of five. He always wanted to go The company’s security systems have since been When asked about advice for aspiring business
into the family business – Gallagher Engineering – making installed around the world, and are used in prisons, leaders he says, “Stick to a specialty and become *This profile has been adapted from a Mavericks profile that originally
electric fences, top dressers, and other agricultural border security, and politically important buildings. number one at it, and then take it to the world.” appeared in the 2015 TIN Report, written by Holly Ryan.
machinery. Throughout the 1950s he worked holidays
and weekends doing odd jobs at the company.
“I basically had ten years coming through [before I joined
the business] so I was a fitter and turner, a welder, an
electrician – you name it, I had done it,” he says.
The development of the electric fence changed the
agricultural industry completely, allowing farmers to strip-
graze and better manage their stock. It took a few years
for the business to take off however, with William Gallagher
senior being seconded to work in the ammunitions
factory as a maintenance engineer during World War II.
In 1962, age 21 and having studied mechanical engineering
at Auckland University, Sir William Gallagher joined
his father’s company full-time. Ten years later when
his parents went to England for six months two years
in a row, he managed the company, and says this was
when he began to take over as managing director.
20 NZ Agritech Insights Report 2020 Mavericks 21Companies: Livestock People:
Improvement Corporation Emma Parsons, CEO of Agrigate
LIC IS A FARMER-OWNED AGRITECH AND HERD IMPROVEMENT COOPERATIVE THAT GROWING UP ON A DAIRY FARM IN PATEA, SOUTH TARANAKI, WITH A FATHER
PROVIDES A RANGE OF SERVICES AND SOLUTIONS TO IMPROVE THE PRODUCTIVITY AND WHO WAS AN ECOLOGIST AS WELL AS A HIGHLY TECHNICALLY SKILLED FARMER,
PROSPERITY OF PASTORAL DAIRY FARMERS. THIS INCLUDES DAIRY GENETICS, SAAS HERD EMMA PARSONS LEARNED A KEY LESSON THAT SHE HAS APPLIED IN BOTH HER
MANAGEMENT SOFTWARE, MILK TESTING, DNA PARENTAGE VERIFICATION, DIAGNOSTIC LIFE AND CAREER: THE IMPORTANCE OF THINKING HOLISTICALLY.
TESTING, FARM AUTOMATION, AND FARM ADVISORY SERVICES.
With origins dating back to 1909, Livestock Improvement “Undoubtedly, my family and my home town have been my solutions for the wider
Corporation (LIC) has a long history of providing greatest influences,” she says. agritech sector – and it’s still
world-leading precision farming innovations for the very early days.”
“Thanks to them, I developed a very practical, holistic
dairy industry. For the past 100 years, LIC has made
approach to farm sustainability problems and the ways in While growing the Agrigate
breakthroughs in genetics, reproduction, software, and
which technology, in its broadest sense, helps and hinders team from an initial three
automation. As a result, New Zealand herds have some
those outcomes.” roles to thirteen over the
of the highest rates of genetic gain in the world.
last three years, Emma has
Emma has worked in the New Zealand dairy industry for nearly
LIC has ranked at sixth place on the TIN200 companies list also managed to grow her
two decades, beginning her career at Fonterra in the ingredients own family of two children,
for several years, and was the top exporter in the Biotech
sector of the business in 2002. one of whom was born just
sector in 2019. This success has depended on LIC keeping
its global edge in pastoral dairy farming information by In the years following, she took on a variety of company roles four months before her
developing a ‘startup culture’ mindset, while broadening access both in New Zealand and internationally including four years in appointment to the CEO role.
to new data sets to meet future needs and challenges. Latin America, all the while applying the same approach she had “My family definitely sustains
learned in South Taranaki to her work at the dairy giant. me … while also depleting
The company has developed an export strategy to become EMMA PARSONS,
the leading supplier of semen for grass-fed pastoral dairy On returning to New Zealand in 2010, Emma’s education in me!” she jokes. “Having two CEO, Agrigate
across the UK, Ireland, South Africa, and South America. both environmental science and commerce aligned well for small kids did mean those
WAYNE MCNEE, Chief Executive, LIC early days at Agrigate were
All of LIC’s high value semen products are now exported, her appointment to a new role responsible for setting up and
including sexed semen for the first time in 2020. managing Fonterra’s first ever sustainable dairying field team. kind of blur, but I have an amazing, supportive partner and with a
great team effort, we just made it happen.”
Described by CEO Wayne McNee as “the DNA of New Zealand’s We are currently implementing state of the art genomics The next seven years saw Emma move into increasingly senior
dairy industry”, LIC has played a key role in helping New Zealand roles at Fonterra, driving the broader sustainability goals of the Talking with Emma, one quickly gets the impression that her
assessment tools at our laboratories in Hamilton, which
retain its spot as the leader in the global pastoral dairy system. company and leading initiatives in responsible dairying. career as a leader in the Kiwi tech sector has only just begun,
will enable us to accelerate our research and offer new
and that she still has much to accomplish.
genomic testing services to farmers in New Zealand. With such experience, her appointment to the role of CEO for
What have been the key factors that have Agrigate was a natural next step up. “I want to continue to work to ensure that our farms are
Like all sectors, the dairy industry needs to keep evolving
sustainable and profitable, and that we can take that value to the
contributed to your company’s export success? to meet new challenges head-on and maximise new “My holistic approach to farming means I see agritech more world to create thriving communities back home. I’m also keen
opportunities. That is why New Zealand’s farmers are broadly than just apps and devices. For me it’s about systems, to continue to support collaboration within the agritech eco-
“LIC’s export success has been driven by our innovation-led
growth strategy and our ongoing commitment to pushing the sharpening their focus even more on improving cow processes, practical tasks, simplification, and connectivity, and system both in New Zealand and with our Australian neighbours.
technological boundaries to deliver genetic gain to our farmers. productivity and efficiency, and why our innovation-led my end-to-end view of the value chain is what I believe set me
growth strategy – built off a global understanding of the up well to lead Agrigate.” “The sector has big challenges ahead, particularly with the
Information has been, and always will be, critical to what factors driving change in global dairy markets, and here in impacts of climate change, water scarcity and quality decline,
we do as an agritech co-op. LIC is continually focused Agrigate is a joint venture of Fonterra Farm Source and and understanding our dependence on ecological systems – and
New Zealand – is helping keep farmers ahead of the game.”
on making its data work harder to drive better insights Livestock Improvement Corporation (LIC). It was built around agritech will play a critical role in addressing these challenges.”
to inform and evolve New Zealand’s dairy herds and the idea of harnessing the wealth of information that was being
What are the main challenges your company generated by an increasing variety of data sources connected Emma is also very clear about why she believes New Zealand is a
products and ensure we remain the best in the world.
great place to grow an Agritech business.
will face over the next 12 months? to Fonterra’s dairy network.
Farmers in our key export markets farm their cows on
After what had been nearly a decade of development, the “New Zealand farmers are highly engaged in farming as a
pasture, just like we do in New Zealand. As a leader in “Over the next 12 months, one of our biggest challenges
resulting tool aimed to enable farmers “to make faster and business as well as a lifestyle – this means that we are a great
breeding dairy cows for grazing systems, LIC is proud to will be continued uncertainty facing the global dairy
smarter decisions on one, easy-to-use online dashboard”. test ground for people who are willing to try new things, and I
provide these farmers with world-class genetics that enable industry due to COVID-19, particularly if there are
think that despite the increasing urban-rural divide, we have a
them to breed the best cows for their farming systems.” disruptions to export markets or any issues with supply “There was a lot of work to get Agrigate off the ground, and it ‘grounded-ness’ to our approach. But we have a long way to go
chain hold-ups for dairy products or our own exports. was launched initially to great interest. We learned very quickly in harnessing the diversity of our communities and channelling
What are the benefits of being based here Farmers are facing additional challenges with a lower though that farmers wanted to be able to share data with each that into our rural sector so we can grow the pie for all.”
other rather than simply view a dashboard,” says Emma.
in New Zealand? milk price looming and increasing climate and other So, what’s her advice for young entrepreneurs looking to
environmental considerations, which means getting more Under her guidance, the organisation dug deep into solving develop new agritech in New Zealand?
“Being based in New Zealand means LIC can quickly efficiency from less cows is more critical than ever. the problems that farmers wanted addressed, and pivoted the
develop, test, and commercialise products, such as our “Do everything you can to collaborate and find partners with
business accordingly.
SPACE™ pasture management system. Our cooperative We’re delivering on our strategy by providing leading whom you can work – and win. Focus on challenges that are
structure means that we are close to our customers, genetic options and management tools to enable “Agrigate today is a very different business to where we started. globally scalable, and leverage all the support, people and
who all contribute to innovation through data sharing farmers to meet their environmental and animal It’s now focused on the transfer of data between organisations resources that our amazing New Zealand technology eco-
and through use of our herd improvement services. care requirements – now and into the future.” and data integration with partners, which is unlocking new system has to offer.”
22 NZ Agritech Insights Report 2020 Mavericks 23Companies:
Bluelab
OPERATING FOR 30 YEARS, BLUELAB HAS BECOME KNOWN AS THE INDUSTRY
STANDARD FOR HIGH-PRECISION AND INNOVATIVE MEASUREMENT TECHNOLOGY.
THEIR AWARD-WINNING PRODUCTS MONITOR AND CONTROL THE FUNDAMENTAL
PARAMETERS OF GROWING SUCCESS – INCLUDING NUTRIENT, PH, MOISTURE, AND
TEMPERATURE – IN CONTROLLED ENVIRONMENT AGRICULTURE (CEA).
Following its first official appearance on the TIN200 list in
2017, Bluelab increased its revenue by $5.5m to $19.4m in
2019, earning its debut on the Absolute IT Supreme Scale-Ups
winners list in the TIN Report. This was fuelled by increased
production capabilities and sales within the USA. The company
was also acclaimed in that year with the NZ International
Business Award for Excellence in Innovation.
In June 2020, Bluelab launched its rebranding, revealing a
modern new look as well as a brand-new purpose: the art of
growing for a healthier world. One of Bluelab’s biggest goals
is to elevate the standard of growing through newly bolstered
education and innovation initiatives, ultimately bringing an end GREG JARVIS, Chief Executive, Bluelab
to unsustainable growing practices.
When CEO Greg Jarvis purchased the company known as
thinking and customer engagement, which enables us to
NZ Hydroponics in 2000, it wasn’t really a tech company. The
25
shape our products around understanding customer problems,
business only sold one electronic product amidst its inventory
and then helping them overcome them.”
of grower supplies, nutrients, and irrigation fittings.
Over the next four years, Jarvis divested the company of its
What do you see are the benefits of being based
hydroponics offerings to focus on the technology opportunity
in electronic meters – and fittingly renamed the company here in New Zealand?
Bluelab. Since then, the company has grown steadily to “Being based in New Zealand enables us to develop great
become the industry standard for highly accurate and robust relationships with growers to run trials for our products,
measurement tools. especially here in the Bay of Plenty. This close proximity means
R&D is much more affordable.
What have been the key factors that have We’ve also found that being based in New Zealand makes us a
contributed to your company’s export success? desirable place for international talent, attracting some of the
best minds from around the world. For example, every member
“The key factor has been people. Firstly, we built a team that
The Eco-System
of our software engineering team, is an immigrant – which
could help us realise our global ambitions, got people on the
shows how that opportunity to come to New Zealand
ground in our target export markets, set up our first service
is a real benefit for driving the company’s innovation forward.”
team in the US, and added sales staff in different states.
The next step was looking at where our innovation gaps were,
What are the main challenges your company will
then putting a team in place that could develop our products
around that approach. Appointing Jono Jones as Chief face over the next 12 months?
Product and Innovation Officer moves us forward in our design “COVID-19 is obviously the greatest challenge, as it means
we need to look at alternatives to traveling in person to
international markets for sales and marketing. As it could be
another year until we can even consider overseas, we are now
building up our capabilities in doing virtual training, remote
team meetings, and other things to maintain that all-important
direct contact with people.
At the same time, the cost savings that are apparent from
not having to travel is creating new opportunities. We will be
opening up more online channels, and participating in virtual
trade shows to engage with potential customers. While it will
definitely be a challenge, it will also be interesting to see how
these new ways of doing business translate into quality leads.” Photo courtesy of Bluelab.
24 NZ Agritech Insights Report 2020 25You can also read
