The agrifood sector entails the entire food production chain: from agriculture to food industry. It embraces the new generation technological innovations: new food and alternative products (for example, insects market, cultivated meat, meat and dairy alternatives), online restaurants and e-food shops, new farming systems, agrobiotechnologies, farm management software and internet of things.
The Innovation Agency experts prepared comprehensive agrifood sector overview with the latest global trends of this sector introduced and the sector in Lithuania analysed.
The value of agrifood enterprises in Europe is estimated to be USD 185 billion in 2022, while by public and private financing, the leading position in the continent is held by the United Kingdom (USD 1.4 billion) and France (USD 1.3 billion).
According to the priority areas approved in Lithuania, safe food and sustainable agro-biological resources are the priority in the field of life sciences. The overview prepared by the Innovation Agency experts shows that the agrifood sector in Lithuania accounts for a significant part of this area, the GDP share developed by it in 2022 accounted for 8 per cent and generated EUR 3.7 billion, i.e., around 2 per cent from the turnover of all Lithuanian companies.
“Despite a significant part held by the agrifood sector in the turnover and export of the priority of the whole field of life sciences, however, its growth is slower. It is determined by a number of reasons. Despite the big size of the sector, it lacks experience and knowledge how to sell its products to foreign countries and join the global supply chain. Some projects get stuck at the prototype stage because of the shortage of financing and infrastructure to pilot the prototypes. Gaps in regulatory and shortage of qualified staff are also contributing factors,” said Head of Innovation Agency Biotech Lab Jekaterina Kalinienė.
In the period 2023-2027, a total of 34 financing measures are planned in Lithuania for promoting innovations in the agrifood sector. The total investment of EUR 700 million into application of research and development and agrifood sector of Lithuania is planned.
“Our analysis shows that seven out of the above-mentioned financing measures are intentionally focused on agrifood sector innovations with EUR 52 million assigned. 22 measures are general, open to agrifood sector enterprises in competition with other businesses. The remaining financing mechanisms are intended to promote science and business cooperation,” said Ms. Kalinienė.
According to the Head of Innovation Agency Biotech Lab, Lithuania is committed to transform the agrifood sector into sustainable food systems. It means that the entire food chain – from food production, transportation, distribution to sale and consumption – should have neutral or positive impact on the environment, preserve and restore natural resources, on which the food system depends.
“We believe Lithuania should focus more on innovations aimed at reducing carbon footprint, preserving biological diversity of soil, ensuring nutritious and safe food, helping to reduce or recycle more food waste. Various technologies can come to help here. For example, artificial intelligence, internet of things, or digitalisation increase effectiveness of the sector production, while biotechnologies enhance effectiveness of foodstuff production and resistance of plant harvest and crops, improve the quality of fruits and vegetables and animal health, reduce the use of chemicals. Smart engineering solutions can help in applying such new raw material processing, foodstuff processing and production modes as 3D printing, lyophilisation or robotisation,” said Ms. Kalinienė.
According to the Startup Lithuanian Division’s database of startups of the Innovation Agency, 28 startups are registered in the agrifood sector at present. According to Ms. Kalinienė, the largest vertical farm in Europe – Leafood – which attracted EUR 6.45 million investment last year, Divaks company developing solutions of insect protein ingredients for food industry, BioGNR company specialising in microprotein production, Supergarden that made a breakthrough on the market of freeze dried products, and others can be named as the good examples.
The overview of the global trends of the agrifood sector and assessment of the Lithuanian potential is available here.
Short main insights of the global trends of the agrifood sector are available here.
Attention! Agrifood sector’s companies are invited to take part in a poll aimed at determining the needs of companies operating in this sector. Your insights are highly valuable for the Innovation Agency in order to provide targeted services promoting introduction of innovations into Lithuanian business. You can complete the poll here.
The document is part of the EU-funded project “Promoting the development of the life sciences industry”.
