Agri-Tech
The commercial benefits of innovating in the UK
Agri-Tech - The commercial benefits of innovating in the UK
Janet Bainbridge ATO CEO
The UK Agri tech strategy 2 years on…………………..
For us in UKTI it is all about business support (Trade support for UK companies and
helping overseas companies invest and add value to the UK)
FOR COMPANIES:
We can now easily articulate to you the benefits of investment in the UK
FOR RESEARCHERS/RESEARCH PROVIDERS:
We can help you find commercial partners and support any commercialisation of your
work
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Agri-Tech - The commercial benefits of innovating in the UK
UK Industry Overview – still critical for world food security
UK agri-food supply chain
• Agriculture and fishing to final retailing
and catering
• Worth £96 billion (7% of GVA)
• Employs 3.8 million people
UK agriculture
• Employs 450,000
• Contributes £9 billion to economy
UK exports
• £22 billion of food, feed and drink in 2013
• One of the top 12 food and drink exporters
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Agri-Tech - The commercial benefits of innovating in the UK
UK Industry Overview
UK - gateway to Europe
The EU is a major market
• Combined agricultural GVA of €145
billion in 2010
The EU is a large investor in R&D
• Combined spend on agricultural R&D
by 13 western European economies is
$4 billion (the USA spends $7 billion).
• The European Commission is a
significant funder of research
• The new European Innovation
Partnership on Agricultural Productivity
and Sustainability supports closer links
between researchers and farmers
UK Government funded bodies (e.g.
Innovate UK and BBSRC)
• Spent £480 million on R&D (2012-
2013)
Key Industry Sectors
• The UK Agri-Tech industry comprises
four key sectors:
- Precision Agriculture
- Plant Science
- Animal Health
- Aquaculture
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Agri-Tech - The commercial benefits of innovating in the UK
THE UK Agri-Tech Strategy - a reminder
Public sector research
There is increased significant public
sector investment in agricultural
research
• Over £480 million each year from
Government agencies
• £90 million investment in world-class
Centers for Agricultural Innovation
– Part of the Government’s UK Strategy for
Agricultural Technologies
– Innovation Centers will support the wide-
scale adoption of innovation and
technology across key sectors,
technologies and skills in the food and
farming supply chain
– This includes up to £10 million for a
Centre for Agricultural Informatics and
Metrics of Sustainability which will use
data from farms, laboratories and retailers
to drive innovation, helping the UK exploit
the potential of big data and informatics
• Creating a £70 million Agri-Tech
Catalyst
– Will improve the translation of research
into practice
– Includes £10 million to support the
transfer of technology and new products
to developing countries
– Now 77 confirmed catalyst projects
funded
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Agri-Tech - The commercial benefits of innovating in the UK
Where are we now?
Leadership Council Established
Government teams in BIS and UKTI –
soon to be joined as a ‘hub’
UKTI AGRI Tech Organisation (ATO)
set up with 13 staff including specialists
2 in the US (A key market for us)
We are building on strengths
Innovate UK catalysts very successful:
https://connect.innovateuk.org/web/bioscienc
esktn/agri-tech-catalyst
Government has launched first of the 4
Centres of Excellence:
Agri Metrics Centre Launched October
2015 by Ministers
Other centres subject to business plan
clarification but will be formally
announced soon
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Agri-Tech - The commercial benefits of innovating in the UK
UK Advantage
Opportunities for growth
Key sectors are:
• Plant breeding
• Plant nutrition
• Plant health
• Animal breeding
• Animal health
• Agri-engineering
• Animal health
• Aquaculture
• Sensor technologies for field mapping,
disease mapping, yield mapping
• Water management
Sector Strengths - overview
The UK boasts three specific strengths
• The science base
• The food and farming supply chain
• Access to global markets
The Government’s UK Strategy for
Agricultural Technologies will ensure these
elements work together to enhance the
UK’s world-leading position
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Agri-Tech - The commercial benefits of innovating in the UK
UK Advantage (Continued)
Benefits for overseas companies and investors
The UK offers overseas investors in the Agri-Tech sector the opportunity to partner
with world-class researchers to:
• Respond to consumer pressures and
give credibility to products
• Gain status for the business and
credibility for its products
• Gain support from and access to
solutions from other sectors and
technologies
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• Improve existing and devise new
innovative products and services
• Provide solutions to technical problems
• De-risk research projects by accessing
government funding
• Meet regulatory requirements
• Develop staff
Agri-Tech - The commercial benefits of innovating in the UK
UK Advantage (Continued)
The UK offers overseas agri-tech
venture capital investors:
• Greater access to new technologies
• Greater access to investment
opportunities
• Easier environment to establish proof-
of-concept studies
• More Government support to de-risk
early stage investment
• Various Investment funds to take
projects forward from proof of concept
towards commercialisation
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Agri-Tech - The commercial benefits of innovating in the UK
UK Government Support - Funding and Programmes still in place
UK tax allowances for R&D expenditure
• A generous environment for
businesses investing in R&D
• Corporation tax rate (currently 23%,
falling to 20% by 2015) can be halved
for businesses investing in, and
commercialising, new intellectual
property under ‘R&D tax credit’ and
‘Patent Box’ allowances.
• Capital spent on R&D equipment
also allowable usually at the full rate
of 100%
Robust IP Protection
• UK is the second strongest nation on
IP protection globally
Patent Box
• Reduces corporation tax to 10% on
profits attributable to qualifying patents
• Specialist support from within ATO in
all aspects of investment (not just
technology)
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Agri-Tech - The commercial benefits of innovating in the UK
UK Government Support - Funding and Programmes
Innovate UK and the Biotechnology and Biological Sciences Research Council (BBSRC)
Significant research funding adds to the R & D strengths of the UK sector, including:
• £60 million catalyst fund to support ‘proof of concept’ of near-market agricultural innovations
• £10 million earmarked for supporting the transfer of technology and new products to developing
countries
• £90 million (over 5 years) to establish a small number of Centres of agricultural innovation
• The recent £20m SCPRID initiative, funded by BBSRC, the Bill and Melinda Gates Foundation
and the Indian Government, supports high quality research to improve sustainable production of
major food crops in developing countries
• Defra 25 year Food and Farming Plan
Regional Growth fund
Worth £2.4 billion (2011-2015) to create economic growth and sustainable employment in
eligible locations no current rounds but awaiting CSR !!
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Agri-Tech - The commercial benefits of innovating in the UK
UK innovation – Food and Farming Supply Chain
Rapid commercialisation of research
• Case study: Beneforté broccoli - from
laboratory to UK supermarket shelves
– A collaboration between the Institute of
Food Research, the John Innes Centre
and Plant Bioscience Ltd
– Developed by crossing standard
cultivated broccoli and its wild-growing
relative from Sicily
– Extensive field trials at 50 sites across
Europe, the USA and Mexico has found
the broccoli consistently produces up to
three times the amount of glucoraphanin
(a compound believed to improve
cardiovascular health and reduce the risk
of cancers)
– The Institute of Food Research and
partners on the Norwich Research Park
are continuing to study the health benefits
of glucoraphanin and Beneforté broccoli
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Agri-Tech - The commercial benefits of innovating in the UK
UK Innovation – Food and Farming Supply Chain (Continued)
Infomatics and Big Data
• UK Government funding now in place
for Centre for Agricultural Informatics
and Metrics of Sustainability
– The first of the Centres of Agricultural
Innovation
– UK expertise will make Centre a global
hub of excellence
– UK also hosts the European
Bioinformatics Institute - one of the
world’s repositories of new genetic data
– Will aid development of agricultural
products, new therapeutics and vaccines
– Big Data from laboratory to farm will drive
agri-tech innovation
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Agri-Tech - The commercial benefits of innovating in the UK
UK Innovation – Food and Farming Supply Chain (Continued)
Case Studies:
• PepsiCo crop management tool
– PepsiCo is the parent company of
Walker’s crisps
– They worked with Cambridge University
and selected farmers to develop a
revolutionary web-based crop
management tool
– Rolled out to farmers in 2011, the tool
provides precision information about
crops; helps farmers reduce their water
use and carbon emissions, boost harvests
and increase efficiency
• MySoil App
– A free smart phone app from the Natural
Environment Research Council’s British
Geological Survey and Centre for Ecology
& Hydrology
– Allows people to view and upload
information about soils in their area
and explore vegetation habitat data
across Britain
– Since its launch in June 2012, it has
attracted more than 2.6 million web hits
and 12,500 users. More than 500 people
have contributed to the databank to build
even greater knowledge of soil properties
across the UK
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Agri-Tech - The commercial benefits of innovating in the UK
UK Innovation – Food and Farming Supply Chain (Continued)
Agricultural Mechanisation
The UK boasts world-leading Agri-Engineering
Case Study
• Robocrop
– Robocrop was developed and brought
to market in the UK by the R&D
company, Tillett and Hague, and
Garford Farm Machinery
– It uses video image analysis techniques
to identify and locate individual plants to
remove weeds mechanically on crops
planted with regular spacing
– The technology relieves the driver of the
need to concentrate on very accurate
steering and removes the need to employ
gang work force to do the weeding
– As a result, it is leading to better quality
work maintained for longer periods and at
higher speeds
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Agri-Tech - The commercial benefits of innovating in the UK
UK Innovation – Access to Global Markets (Continued)
• Exosect
– Exosect was established in 2001
– A spin-out from the University of
Southampton to develop products for the
protection of food from pests and disease
– In 2005 it launched the first of its
innovative crop protection products
– Recently it led a UK consortium to
develop a novel biopesticide for the
protection of stored grain
– This fills the gap in the market for
sustainable grain protectants following
the phased withdrawal of methyl bromide
and increasing insect resistance to
remaining insecticides
– Exosect has now gained more than
60 patents and 30 national product
registrations
– It is actively outlicensing its grain
protectants and seed treatment platform
technologies to multi-national companies
throughout Europe, North America and
the Far East
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Agri-Tech - The commercial benefits of innovating in the UK
THE ATO
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The Agri-Tech Organisation is the centre of
excellence and first port of call for
overseas companies looking for trade and
investment opportunities in the UK and for
UK-based companies seeking to expand
their international business. Help is
provided to large scale businesses, SMEs
and institutions to entice foreign investment
and encourage sales of UK products
abroad. Key areas of focus are primarily:
• Plant sciences
• Animal health
• Aquaculture
• Precision agriculture
Other requirements for agricultural
technologies are supported upon request
Agri-Tech - The commercial benefits of innovating in the UK
What have we achieved
• Supported the Leadership Council
• Worked with all the new Centres of Excellence
• Identified a our key markets
• Trained our staff in those overseas markets
• Helped UK companies bring in £ 120 Million Trade in agri
tech
• Secured major Inward Investments and an active pipeline
from US, Switzerland, Portugal, Germany, Turkey, Nre
Zealand and many other countries
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Agri-Tech - The commercial benefits of innovating in the UK
UK Agri Tech - Key Commercial Investors
The UK has globally leading agri-tech investors, such as:
DuPont Solae
World leader in developing soy-based ingredients
Dow AgroSciences
Provides agricultural chemicals and employs 100
people in the UK
Vivergo
Invested £350 million in a bioethanol plant and
currently supports more than 1,000 jobs
Zoetis
Animal health company (formerly Pfizer
Animal Health)
Merck Animal Health
Employs 400 people in the UK
Novartis Animal Health
Recently invested in a £15 million expansion and
upgrade of their Dundee liquid fill plant
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Syngenta
Global agri-business with £164 million
investment and 960 people employed in the UK
Bayer Crop Science
Leading innovative company operating in the
area of seeds, crop protection, and non-
agricultural pest control with 320 employees in
the UK
Dupont Pioneer
US-based producer of hybrid seeds for
agriculture - a leading developer and supplier of
advanced plant genetics and provider of
agronomic support and services
Agri-Tech - The commercial benefits of innovating in the UK
UK Agri tech - Key Commercial Investors (Continued)
IDEXX Laboratories
There are a number of collaborations between
IDEXX and UK universities.
Genus
World leader in applying biotechnology to
advance the science of animal breeding and
genetic improvement. HQ in Basingstoke.
Phillips
Horticultural division is researching the effects of
different LED lighting recipes on crops including;
herbs, leafy salads, strawberries and flowers.
Claas
A leading German agricultural engineering
company with a presence in the UK.
Syngenta
European operations centre transferred from
Basle to Manchester with creation of over 200
new jobs
Unilever
Two R&D centres in the UK (in Merseyside and
Northampton) with over 50 years of scientific
excellence.
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Agri-Tech - The commercial benefits of innovating in the UK
This is just the start
Working with our colleagues overseas, in the regions and in HQ:
We are ready to deliver our pipeline of over 40 new investment
projects into the UK and to support UK companies generating £120
million new trade next year and beyond …………………….
We have everything in place to deliver over 50 new projects that are in
our pipeline and support the commercial and international strategies
of the new Innovation Centres
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Agri-Tech - The commercial benefits of innovating in the UK
Please talk to us and thank you for listening!!
Tel mobile 07767 006 458
If we cannot help you we will try to find someone who can !
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