Agri-tech in the UK: investment opportunities
Updated 16 March 2016
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1. Overview
Global food production challenges and breakthroughs in science and technology are helping to change the agriculture industry.
The UK has traditionally been a leader in agricultural science and is developing new approaches to food and farming systems through agricultural research. There have been big advances in areas such as:
- plant and animal breeding
- remote sensing
- weather prediction
- use of data
The UK welcomes businesses from outside the UK to participate in various research and development (R&D) opportunities.
2. Why invest in UK agri-tech
The UK is a global centre of excellence for agri-tech R&D and innovation. Overseas companies have:
- support from government to improve the competitiveness of the agri-tech sector, as part of the £160 million UK Strategy for Agricultural Technologies
- access to world leading researchers across all disciplines relevant to agri-tech with a track record of delivering for business
- an academic environment that has a track record of working with business and delivering for it
- access to a fully integrated agricultural food supply chain worth £96 billion annually
- a business environment that encourages and rewards R&D and innovation through tax credits, tax relief for patents developed in the UK and strong Intellectual Property (IP) protection
- government financial support
View our interactive infographic on UK science and innovation and the 8 GREAT technologies which includes agri-tech.
Farmer and vet talking in milking parlor
3. Strengths of the UK agri-tech sector
Knowledge and insight from UK’s science base helps support the UK as a world leader in agricultural technology, innovation and sustainability. Strengths include:
- diagnostics
- genetics
- disease management
- nutrition
- use of technological applications
Sectoral strengths include:
3.1 Plant science
Research and development (R&D) in plants is important for understanding:
- their economic use
- how breeding and crop protection controls can improve yield and quality, and their cultivation in farm management systems so they are fit for purpose, and meet customer needs
The UK is internationally recognised for its excellence in plant science. Its world-leading plant science research underpins a diverse range of industries including:
- agriculture
- food
- pharmaceuticals
- forestry
- bioenergy
- industrial biotechnology
3.2 Animal health
The animal health market involves anything that relates to the breeding, management, treatment and care of livestock, companion animals and aquaculture.
The UK is world leading in animal health research and has more international reference centres in animal diseases than any other country.
3.3 Precision agriculture
Precision agriculture is the use of modern technologies to improve the precision and efficiency of agricultural management practices.
3.4 Aquaculture
Aquaculture plays an important role in UK and worldwide food security. It’s the fastest growing food-producing sector in the world, growing at a rate faster than the growth of the human population.
Development of this very diverse sector has been facilitated largely by the application of science and the introduction of new technologies across almost every activity.
4. Government help
The UK Strategy for Agricultural Technologies was developed by government in partnership with industry and academia to identify and develop the opportunities and strengths of the agri-tech sector. It aims to aid the transfer of world-leading research into commercial applications.
The strategy builds on the strengths of the UK’s science base and the agri-food supply chain. It offers exciting R&D opportunities for both UK and overseas businesses:
- £70 million Agri-Tech Catalyst fund to help new agricultural technologies get to market quicker with £10 million of this supporting the transfer of technology and new products to developing countries
- £90 million investment in Centres for Agricultural Innovation with additional investment from industry which will help translate our world-leading agricultural innovation into commercial opportunities for UK businesses
4.1 Agri-tech Investment Organisation
The Agri-Tech Organisation at the Department for International Trade (DIT) combines the expertise and knowledge of business, academia and government and helps:
- overseas companies look for investment opportunities in the UK
- UK-based companies seek assistance to expand their international business.
- champion the role of agri-tech in strengthening agri-business success in both UK exports and investment
- contribute to sustainable intensification of agriculture to provide global access to sufficient, safe, healthy food
5. Investment locations
There are different locations across the UK known as Enterprise Zones that offer investors incentives to locate themselves there including:
- reduced taxes
- simpler planning rules
- financial benefits
Many Enterprise Zones have employment clusters, where businesses from the same sector are co-located within the zones.
6. Why overseas companies locate to the UK
The UK is the number 1 destination for inward investment (FDI) in Europe.
There are a number of reasons why international companies locate to the UK. This includes being able to access:
- new or existing customers
- closer proximity to product innovation and development
- support for finding new suppliers and partners
7. Contacting the Department for International Trade (DIT) for help
DIT’s Agri-Tech Organisation can provide further information about the UK agri-tech sector, including opportunities for trade, investment or collaboration.
Email agritech@trade.gov.uk