Overview

Agriculture is what kickstarted started the development of human society itself. The ability of early humans to cultivate, harvest, and farm crops and livestock enabled us as a species to end nomadic hunter-gatherer lifestyles and settle in a location permanently.

Agriculture has gone through multiple stages of evolution alongside the humans which invented it. From hand-ploughs to combine harvesters, the agricultural journey is the human journey. However, as we approach what the Japanese government has dubbed ‘Society 5.0,’ digital inventions and tools are being integrated into every aspect of our society, and agriculture is no exception.

AgriTech is the use of technology in farming with the aim to improve efficiency and profitability. As the global human population approaches 8 billion, manpower and supply chains remain a bottleneck in food production and distribution. In order to solve these traditional challenges in agriculture, entrepreneurs are starting to integrate technology such as drones, Big Data, IoT, and genetic engineering into the production pipeline. These AgriTech startups will participate in a combined global market of 46 billion USD by 2030, at a CAGR of 17.3%.

Japan, as an island nation whose government places a strong emphasis on agricultural independence, has had both government and private interests looking for investments into “Smart Agriculture” in recent years. In this article, we will be sharing four AgriTech startups in Japan aiming to start the next stage of evolution in agriculture.

‍

Startups

1. 株式会社TOWING

Rotational farming was one of the first major revolutions in agriculture. It is through rotational farming that we are able to create an efficient and sustainable farming system. TOWING took rotational farming to the next level with their artificial “High-performance Soil.” Not only does this technology shorten the recovery time needed for good soil production, it also maximizes fertilizer absorption by crops. This highly productive and sustainable crop cultivation system allows Towing to have their own farm whilst also providing consulting services to other farms. With a Series A funding of 140 million USD, they are aiming to further expand their High-performance Soil into the market with more R&D towards their products and system.

‍

2. Sagri Co., Ltd

Utilizing abandoned farmland has been a major agricultural issue in Japan. Since it is hard for people to predict farmland conditions, most of the failed production comes from reusing infertile farmland. Sagri Co., Ltd utilizes satellite data in combination with AI to predict whether farmland has been rendered barren or not. By capturing the characteristics of the farmland, they are able to provide services to government agencies for farmland inspection and patrolling. This reduces wasted manpower and time invested in new farmland development, and hence maximizing productivity. Their services provide a novel solution to sustainable farmland utilization.

‍

3. Kisuitech Co., Ltd.

Automation using robots and AI technology has seen an increase in efficiency and productivity in various industries in recent years, and agriculture counted among them. Kisuitech, founded by foreign entrepreneur Tamir Blum in Japan in 2021, supports farmers with automated robots and AI technology.

Their services include an automated transport robot for harvesting, automated farm patrols for pest and tree surveys, and data analysis for condition monitoring. Selected by the Ministry of Agriculture, Forestry and Fisheries to be one of their supported startups in 2021, it shows the official commitment to foreign-owned startups within Japan.

‍

4. GRA&GREEN Inc.

Genetic engineering in agriculture is not uncommon these days. Nonetheless, with the conventional agrobacterium method, it is hard to predict the genetically modified outcome for the desired product. GRA&GREEN came out with a solution for precise genetic cutting and modification, giving a higher yield in the genetically-modified crop. This technology allows improvement for specific parameters such as flavor, stress resistance, and yield — enhancing the quality of the crops in a customizable way. Their recent Series B funding of 5 million USD proves that their services are in rising demand.

‍

Conclusion

Agriculture has been a big part in Japan’s economy since ancient times. With new technology being embedding into the production pipeline, it is not hard to imagine Japan will catch up to other big agricultural countries such as China and India. With the capital from both the public and private sector being poured into the Smart Agriculture movement, Japan can expect to not only meet domestic needs, but also create a surplus for export. It is safe to say that with the startups mentioned in this article, agriculture in Japan will have a bright future and is preparing Japan to move into Society 5.0.

‍