It may look strange that SNC's CEO mentioned money, technologies, and entrepreneurs but focused on something other than those. Mr. Hasson focused on the importance of building an appropriate Ecosystem. Because as he emphasized, it is the Ecosystem that enables continuous, sustainable, innovative industry and economic prosperity in Israel. Do you think an advanced Ecosystem is needed only to develop an advanced "innovation industry," or is it a general characteristic required to advance any industry, including the agro-industry? LEARNING FROM THE BEST I am not trying to brag, but Israel is second to none when it comes to innovation. So if you want to learn or copy anything that has to do with innovation, listen to the best. Therefore when Mr. Avi Hasson says that the Ecosystem is the secret and beating heart of the Israeli Innovation Industry – take it as a fact with proven results. The Ecosystem is the secret behind any thriving sector, including the Israeli agro-industry. In some of my previous columns, I spoke extensively about the Israeli Agro Sector Model and its three pillars: * Ecosystem. * Business Models. * Technologies and services. Of the three pillars, the most difficult to describe and bring reason, but the basic one is the Ecosystem. Developing economies must work to develop their own dedicated Ecosystem, even if it is not rewarding in the short term. The Dream Valley initiative will help you do precisely that. When I work in developed countries, almost unnoticeably, I bring with me part of the Israeli agro-ecosystem spirit, experience, culture, order, connections, and success. I want to build continuous and sustainable - local - agro success and legacy. From experience, I know that the Ecosystem, even when applied at a micro-scale, will enable continuous and sustainable success. This has a lot of value, though most people in developed economies wouldn’t notice or pay attention to it. ECOSYSTEM IS A TWO-WAY DOOR To this point, in this column, we established how critical the Ecosystem is to developing an advanced industry. It is time to emphasize that per industry Ecosystem has two doors, not one. THE FIRST DOOR – IS TO DEVELOP YOURSELF BY YOURSELF. That is the door everyone is talking about, including this column up to here. But wait, if the first ecosystem door is looking inward, the second will blow your mind, for it is looking outward, and its impact is unbelievable. THE SECOND DOOR – IS TO FURTHER DEVELOP YOURSELF BY DEVELOPING OTHERS. To explain this, I will use the telecommunication example. THE TELECOM EXAMPLE At first, those companies established themselves in advanced economies, thinking there was no market in developing economies, e.g., Africa, Asia, and LATAM. Slowly they began working in developing economies. They did it by using the same business models used in developed economies. But, in developing economies, that strategy offered safety but left most of the population outside their business. What they did next was something to learn in business schools; they designed new business models dedicated to the economic abilities of people in developing economies, including smallholders making $ 1.5 per day. They completed this by building an ecosystem to suit the new business model and their new customers’ needs, which required more activities and opened new business opportunities. For example, extensive deployment of antennas to improve reception in remote villages, payment stands (e.g., Orange Money) to enable consumers to buy airtime in small packages, or Friends and Family one "bucket" of value. It didn’t take long before those companies experienced rapid business growth with increasing profitability. With better service and prices, the early adopters who paid more at the beginning moved to companies that offered better coverage, service, and prices. In a relatively short time, telecommunication companies developed an ecosystem for emerging economies and developed novel business models so they could introduce and sell their technology and services. Can we learn from this about Israel’s agrotech industry and how it can prosper by serving dedicated tailor-made Packages to 97% of farmers, which happened to be small-hold farmers? Can small-hold farmers benefit from Israeli agrotech companies making themselves available and accessible? The answer to both questions is – Sure, BIG YES. What from this do we see today? Nothing!! What can and should we see tomorrow? Everything! Why? Israeli entrepreneurs develop advanced agro technologies and services, which they sell to professional farmers that can pay for premium agrotech. Doing so, they address 3% of the farmers, those who are advanced/professionals. Meanwhile, they miss 97% of farmers (550 million), those in developing economies. This is like the telecom industry’s business behavior in its early days. The telecom companies were sure there was no business working with “poor” Africans, Indians, etc. But now, thanks to developing and introducing novel dedicated ecosystems and business models, they can’t do without those subscribers. Furthermore, telecom companies that didn't adapt and change in time were left behind and didn't flourish in those markets. The telecom example is a win-win; for the companies and the people. Israeli agrotech companies are not as big as telecom companies, but they still need to follow the same route to unlock the Blue Ocean of 97% of farmers in developing economies. It takes years, $ millions, and tremendous collective effort before you get your agrotech solution ready to market and use. How awful it is to find that 97% of your company's potential market is inaccessible after all this. No entrepreneur, company, or industry is too successful in giving up on 97% of its potential market. I remember, as a young entrepreneur with an ambitious goal of developing an alternative to pesticide sprays. The experts explained that I should focus on the organic markets, which constituted 3% of the total market at that time. I rejected the idea outright, first because why should I give up 97% of the markets, and second, why spray-free produce should not reach all possible consumers. Instead, I said that the new technology would suit all farmers and the higher quality produce would sell to all supermarkets and consumers. Twenty-five years later, Biofeed’s spray-free technology solution is integral to a Package offered by Dream Valley Company. “The Package” is designed to help small-hold farmers rapidly increase the yield and quality and then sell it in premium markets for a premium price. How is it done? By using state-of-the-art technologies, services, and protocols within the framework of a dedicated tailor-made minimal, yet sophisticated, Ecosystem energized by a dedicated novel Business Model. In short, the three pillars of the Israeli Model are re-designed and applied as a tailor-made Package for local usage. Can it work? In 2021 this powerful Package was field tested by hundreds of mango growers on a national-scale pilot in Senegal, over 2,500 hectares. As a result, Senegal doubled its mango export to the EU with an additional 12M kg free of sprays (valued at $ 12M), and small-hold farmers doubled their income. A year later, in 2022, without the Dream Valley package/pilot, Senegal's mango export plunged to its baseline, and farmers returned to poverty. |