Is Israeli Agritech the Answer? 3 Startups Tackling Global Food Challenges

The acceleration of climate change, an outbreak of war, and supply chain woes caused by the pandemic have created immense uncertainty surrounding the future sustainability of global food supply and agricultural activities such as crop production and livestock farming.

Israel’s food supply chain has come under similar strain in recent years. The COVID-19 pandemic, the prolonged war between Israeli forces and Hamas which have led to the departure of thousands of foreign-born agricultural workers, the invasion of Ukraine, and an aging farming population have further created vulnerabilities for Israel’s food security.

Globally, at least 1 in 11 people were faced with hunger in 2023, according to the World Health Organization (WHO) and the State of Food Security and Nutrition in the World (SOFI). Regional trends regarding food insecurity vary, with the largest populations currently facing hunger located in Africa, followed by Asia and Latin America.

Based on current projections, about 583 million people will be considered chronically undernourished by 2030–with over half of those located in Africa, according to the Food and Agriculture Organization of the United Nations (FAO).

Being chronically undernourished implies that an individual is unable to acquire or attain enough food for them to meet daily nutritional and dietary energy requirements for more than a period of one year.

However, Israel’s agri and food-tech sector continues to remain a resilient sector that aims to provide innovative solutions to food security challenges and seeks to address threats that could hamper the long-term sustainability of global food supply chains.

A Booming Industry

Despite having to endure a series of challenges in recent years, the tech food startup ecosystem continues to build on its momentum, with approximately 750+ Israeli food tech startups currently operating, with 103 of these startups already funded and 34 having secured Series A funding.

Israeli food tech startups have pioneered the development of lab-grown alternatives that could become a more sustainable solution to various products that are both resource and labor-intensive.

Strong research along with robust private and public investment is helping drive the sector forward. By some estimates, analysts suggest that the alternative proteins market could generate an additional $2.5 billion for Israel’s economy by 2030. As of 2024, the alternative protein market accounted for 10 percent of the food tech sectors’ investments.

The development of the sector is not solely focused on digital technologies. Instead, Israel could see a wave of new startups coming to the surface, each developing unique solutions, products, and services that would help meet domestic food security needs and demand.

Several groundbreaking discoveries are helping farmers across the country, and in various pockets of the world better understand how to navigate climate-related challenges, improve production and manufacturing efficiency, lower cost, reduce resource requirements, and create more sustainable supply chains that align with global carbon reduction efforts.

However, Israel’s agri and food tech sectors have faced mounting challenges over the last couple of years. Funding peaked in the first half of 2022, with the agrifood tech sector raising more than $515 million in three months. However, this was short-lived, and by contrast, the last six months of 2022 saw funding drop to $36 million across 15 deals.

The attacks that occurred on October 7 had major implications for the sector. Funding in the last three months of 2023 totaled $7 million before surging to more than $114 million in the first quarter of 2024. While funding remains well below the post-pandemic hype, agrifood tech startups remain resilient as they navigate the dynamic marketplace changes.

Startups To Watch

There are plenty of noteworthy Israeli agri and food-tech startups that have helped to improve our supply chains, production, and manufacturing, and further deliver innovative solutions that could help tackle global food challenges. Here’s three that we’ve been following:

Platypus EcoDesign

Founded in 2021, Platypus EcoDesign addresses key challenges related to pest management by developing highly sustainable and environmentally conscious materials that are enabled to control the slow release of bioactive ingredients.

The aim is to extend the effectiveness of bioactive ingredients that are released in soil or sprayed on crops. These solutions could not only be more sustainable to groundwater and surrounding ecosystems but would likely help create more flexible alternatives that could help drive cost-effectiveness for farmers in Israel.

More than this, Platypus has developed a product that would not only be applicable in the agricultural sector but could likely be applied in different industries, including gardening, home care, food preservation, and eco-friendly packaging solutions.

Imagindairy

Dairy alternative startup Imagindairy has been around since 2020 and has raised more than $33.46 million in seed funding. The company develops sustainable animal-free dairy proteins that can carry the same properties of nutritional bovine. Substitutes to milk and dairy products have been on the rise in recent years, with more consumers looking to swap out for healthier and more sustainable alternatives.

Imagindairy aims to create animal-free proteins through bio-engineered fermentation. This process allows the startup to create a wider selection of dairy products, including cholesterol-free, lactose-free, and hormone-free dairy alternatives such as milk, cheese, and other dairy products.

Imagindairy is one of several companies looking to spearhead the development of dairy alternative products. Across the world, dairy production contributes around 2.9 percent of total human-induced greenhouse gas emissions. Between 2005 and 2015, dairy production increased by 30 percent, with dairy cow herds growing 11 percent during the same period, according to the UN FAO.

Bluewhite

Keeping up with rising demand, changing climate conditions, and political unrest have challenged agricultural labor conditions across Israel. For a long time, farmers relied on foreign-born workers to fulfill labor needs, however, the outbreak of the Hamas war has sent many returning to their home countries, leaving a major gap in the labor force.

Bluewhite is a startup that focuses on automating existing agricultural machines and systems through the use of artificial intelligence (AI), computer vision, and advanced navigational technology. Founder and CEO Ben Alfi formerly served for 25 years in the Israeli Air Force before turning to agri-technology as his next venture.

Instead of creating new equipment and machines, Bluewhite is simply an add-on to an existing tractor or machine which can then be fully automated and remote-controlled. Over the years, Bluewhite machines have already covered over 150,000 acres of land, and have endured more than 50,000 hours of work, according to Alfi.

A New Era In Food

Tackling domestic and international food challenges will require the collaboration of the tech industry and agricultural producers. Israel is poised to continue pushing the boundaries, having both the skills and knowledge to develop more innovative solutions that will help drive sustainability, and create more impactful changes to address food security needs.