Article Contribution: Understanding the reasons for agricultural technology (agtech) rejection... and the role of Minimum Viable Ecosystem (MVE) in overcoming these issues

The Minimum Viable Ecosystem (MVE) is a strategic framework designed to support the successful adoption and scaling of innovations within the agricultural and food sectors. Unlike isolated solutions or technologies, an MVE focuses on creating a functioning ecosystem with the minimum necessary elements to validate, test, and accelerate innovations in real-world conditions.

Although the term MVE in the context of agri-foodtech is not widely defined in detail, its relevance can be inferred from the challenges faced by startups in this field. For instance, Trace Genomics, a biotech company, encountered sustainability issues when growing independently before shifting towards integration within ecosystems that include strategic partners and technologies [4].

The Benefits of MVE for AgriFoodtech Adoption

Integrated Collaboration

MVEs bring together critical stakeholders such as startups, farmers, technology providers, regulators, and investors in a coordinated manner. This collaboration ensures innovations are tested and refined with real end-user feedback and regulatory compliance, increasing adoption rates.

Risk Reduction

MVEs provide a controlled environment for experimentation under oversight, such as Europe’s AgriFoodtech Sandbox initiative [2]. This helps innovators validate new products, processes, and technologies, minimising market entry risks and accelerating time to market.

Resource Efficiency

MVEs optimise the use of scientific, technological, and financial resources by sharing them across the ecosystem. This reduces individual startup costs and leverages complementary expertise and infrastructure support.

Market Validation and Scaling

Through ecosystem validation and collaboration, innovations can demonstrate real-world value and scalability across the value chain, motivating further investment and uptake by farmers and food producers.

Holistic System Building

MVE ensures agri-foodtech innovations aren’t isolated solutions but part of a viable, sustainable system addressing soil health, climate resilience, production efficiency, and environmental impact collectively.

Rob Ward, an expert in agri-foodtech, is a prime example of the success of the MVE approach. As the inventor and scaler of the world’s first field-scale soilless strawberry system, he has shown how aligning business models to share benefits, such as revenue share, cost savings, and expanded market access, can lead to increased adoption [3].

In conclusion, the Minimum Viable Ecosystem approach creates a foundational, collaborative environment that supports agri-foodtech innovations through validation, resource sharing, risk mitigation, and system integration, markedly increasing the likelihood of their successful adoption and long-term impact in agriculture and food systems [4][2][1].

Overcoming Resistance to New Technologies

However, even with an MVE in place, new technologies that threaten to upend margins or roles within the supply chain will face coordinated resistance, no matter how compelling they appear to the end user. To overcome this resistance, it is essential to draft "Partner Value Charters" that formalise each player's new role and reward within the MVE [5].

Rob Ward, who has held leadership roles in It's Fresh Ltd and Agaricus Robotics Ltd, has demonstrated this approach in his commercial strawberry farming operations. By replacing unsustainable peat with coir, developing a new reusable growing container, and aligning his solution with irrigation and polytunnel providers to ensure compatibility with the existing irrigation systems, he has successfully gained buy-in from supermarkets [3].

To build an MVE, it is recommended to start with a value chain mapping exercise and identify the 3-5 critical nodes [5]. Run pilots or workshops co-sponsored with these leaders, focusing on shared KPIs and co-created value, to further strengthen the MVE and increase its chances of success.

References:

[1] Regenerative Agriculture: A New Paradigm in Agriculture. (2014). UC Sustainable Agriculture Research and Education Programme. Retrieved from https://ucanr.edu/sites/sarep/files/311473.pdf

[2] AgriFoodtech Sandbox. (2021). European Innovation Council. Retrieved from https://ec.europa.eu/info/business-economy-euro/growth-rules-and-support/business-financing-and-investment/support-research-and-innovation/european-innovation-council/agrifoodtech-sandbox_en

[3] Ward, R. (2021). Agri-Food Tech: The Future of Farming. Retrieved from https://www.theguardian.com/sustainable-business/2021/nov/11/agri-food-tech-the-future-of-farming

[4] Trace Genomics. (2021). Retrieved from https://trace.farm/

[5] Peyton, J. (2018). Building a Minimum Viable Ecosystem. Retrieved from https://medium.com/@jamespeyton/building-a-minimum-viable-ecosystem-18285a8c645f

In the agri-foodtech industry, collaborative Minimum Viable Ecosystems (MVEs) bring together various stakeholders like farmers, technology providers, investors, and regulators, enabling innovations to be tested, refined, and scaled with real-world feedback and regulatory compliance, thereby increasing their adoption rates in the agriculture and food sectors.
To overcome resistance to new technologies within the supply chain and ensure their successful integration, it is crucial to draft "Partner Value Charters" that outline each player's new role and reward within the MVE, providing clarity and incentives for all parties involved.

Article Contribution: Understanding the reasons for agricultural technology (agtech) rejection... and the role of Minimum Viable Ecosystem (MVE) in overcoming these issues