EP2/7 : The road to successful development of an AgTech solution
How to Adapt Your Agricultural Machines to Market and Customer Needs?
In today’s rapidly evolving AgTech landscape, adapting your product to the specific needs of farmers and markets is crucial for success. In this episode, I’ll share a personal story about a viticulture robot manufacturer that aimed for international expansion, but after thorough market analysis, realized it wasn’t ready. We’ll also explore the key factors to consider before entering a new market and finally look at some products which evolved based on customer and market demands.
👀 Previous episode (Episode 1/7): How to Successfully Position Your Product in the Agricultural Market?
Why Expanding Too Early Can Harm Your AgTech Business
It’s essential to differentiate between the potential market size (based on general figures) and the real market opportunities, which depend on local working practices, environmental factors, and regulatory challenges. Only by addressing these can you align your product with the true needs of your target customers.
The Temptation of Expanding Too Quickly
When the viticulture robotics manufacturer approached me, the global market numbers looked promising—huge vineyard surfaces in California, Australia, New Zealand, and South Africa, combined with rising labor costs and growing demand for automation. At first glance, the data made international expansion seem like the logical next step. However, focusing solely on global figures without diving deeper into the specific needs of the local markets can lead to costly mistakes.
Market Potential vs. Market Reality
While the potential market size appeared massive, it became clear that there was a critical difference between the market potential and the real market opportunities. The numbers were appealing, but the reality on the ground painted a more complex picture.
To understand the real market, I had to analyze key aspects such as:
Growing systems: How vineyards are managed in each region varies widely. For example, vineyards in California often feature large rows, while European vineyards tend to be much more compact. This directly impacts the type of machinery that can be used.
Working methods: The local climate and soil often influence which tools and practices are most effective. In some regions, mechanical weeding is common due to the scarcity of herbicides, while in others, it’s practically non-existent. Similarly, some regions might rely more on automated pruning or harvesting tools, while others continue to prefer manual methods due to tradition, regulation, or terrain constraints.
Soil types and climates: From the dry, rugged conditions of Australia to the more temperate climate of New Zealand, each region’s unique environmental factors affect the suitability of certain types of machinery.
Regulatory standards: Local regulations on autonomy and safety differ from one country to another. What works in Europe may not comply with safety certifications required in California or the environmental restrictions in New Zealand.
Interviews with Local Experts & growers: A Game-Changer
To refine my analysis, I conducted interviews with local experts. They provided valuable insights into the current needs and challenges of the local vineyards. These interviews helped clarify what kind of autonomous vehicles growers in these regions were actually waiting for and expecting to integrate into their operations. It became evident that the product, initially designed for European markets, didn’t meet these unique requirements.
The Decision to Stay Local
After three months of in-depth research, it became clear that while the global numbers were attractive, the product wasn’t ready for international markets. It wasn’t aligned with the local working methods or regulatory demands in these regions. My recommendation was to focus on the local market, where the product was specifically designed to perform, and postpone international expansion until the necessary adjustments were made.
In the end, by investing just a few thousand euros in this pre-project research phase, the client saved an immense amount of time, energy, and money that would have been wasted trying to enter international markets with a product that wasn’t ready. Instead, they avoided costly mistakes and refocused on refining the product for future opportunities.
Adapting Your Product to Local Market Needs and Practices
Entering a new market means more than just introducing a product—it requires ensuring that the product can fit seamlessly into the new environment, with respect to local practices, conditions, and requirements. Here are five core areas to focus on to adapt effectively.
Understanding Local Farming Methods and Daily Use
An in-depth market analysis, combined with interviews and meetings with local stakeholders, often provides essential clues about what the end users need from the machine. Before entering a new market, evaluate if the product’s architecture, features, and technical capabilities align with the local market demands. This assessment involves analyzing whether the machine is equipped to meet the expectations of local farmers and identifying any necessary modifications to improve its relevance.
Key Questions: Start by examining the product’s readiness. Is the product’s design suited to local expectations? Are the technical specifications, such as power and productivity capacity, in line with regional demands?
Technical and Functional Readiness: Verify if the product’s current options and configurations match the needs of local users. Does the machine possess the flexibility to accommodate specific tasks in ways that align with local methods?
Cost and Timeline for Adjustments: Determine the financial and time investments required for necessary modifications. How long will it take to customize the product to local standards, and what will be the associated costs? Understanding these adaptation requirements allows you to assess the feasibility of timely market entry.
Projecting Market Entry Readiness: After analyzing the product’s requirements, assess if it’s market-ready or if further R&D is needed. This process helps clarify whether the product can be launched with minimal changes or if a longer development phase is needed to meet local standards. The goal is to enter the market with a product that sufficiently meets local needs, thereby protecting its reputation and reinforcing the brand’s credibility.
Evaluating Environmental and Operational Conditions
Once the product’s functionality aligns with local needs, evaluate whether it can withstand the physical and operational demands of the new market. Each region presents unique environmental and usage challenges that impact machine performance and reliability.
Adaptation to Environmental Factors: Different climates and terrains require specific product adaptations. Will the machine perform under local conditions, such as extreme temperatures, high dust levels, or intense humidity, Does the environment have connectivity? Some regions may also have rocky or sandy soils, steep slopes, or irregularly shaped fields, all of which demand a product that can handle rugged terrain and varying conditions without frequent breakdowns. Consider adjustments like dust-proofing, enhanced cooling systems, or reinforced structures to ensure resilience.
Usage Patterns and Maintenance Cycles: In some markets, agricultural machinery may be expected to operate continuously during peak seasons, affecting its wear rate and maintenance needs. Does the machine’s lifecycle align with the heavy usage demands, such as operating up to 20 hours a day? Analyze whether its parts, such as engines and transmissions, can sustain extended use and identify if enhanced durability or faster maintenance capabilities are necessary.
Productivity Requirements and Daily Output: Determine the level of productivity that farmers in this market expect from machinery. Does the machine have the autonomy, power, and fuel or battery life to achieve daily productivity goals? Farmers may need a machine that can cover extensive fields or perform intensive tasks without frequent stops. If adjustments to battery life or fuel capacity are needed, these should be factored into the design.
By thoroughly analyzing the environmental demands and usage requirements, you can make informed adjustments to ensure that the machine operates effectively in real-world conditions, achieving productivity targets and adapting seamlessly to local practices.
Meeting Local Regulatory and Safety Requirements
Compliance with local regulations is essential, especially in areas like safety standards, emissions, and certifications. Each country has specific criteria for agricultural equipment, and meeting these requirements ensures a smooth entry into the market. In certain cases, aligning the product with or exceeding these standards may even qualify the machine for government subsidies or incentives, making it a highly attractive investment for local farmers.
Key Considerations: Research required certifications, restrictions on autonomy, emissions standards, and environmental criteria specific to the region.
Product Adaptation: Modify the product’s features to align with these standards. For example, implementing advanced safety features or minimizing emissions beyond what is required can enhance eligibility for subsidies, offering both financial support and a competitive advantage in the market.
Localizing the User Interface and Experience
A product’s interface must be accessible and intuitive for local users. Translating human-machine interfaces, instruction manuals, and all communication into the local language is essential, but equally important is making sure that the product’s design resonates with regional expectations.
Key Questions: Are all human interfaces translated? Do local farmers understand the added value? Can users easily project the product’s use in their operations, or do they raise technical objections?
Product Adaptation: Fully localize the interface, incorporating both language and regional terminology. Conduct trials or demonstrations with potential clients to gather feedback, making adjustments based on user reactions and usability needs.
Ensuring Maintenance Accessibility and Support Readiness (Detailed EPISODE Coming Soon!)
Sustaining a product in a new market requires reliable after-sales support and maintenance. Local access to spare parts, trained technicians, and support networks significantly impacts a product’s long-term success.
Key Questions: Is local maintenance feasible? Are parts readily available? What alternative markets could benefit from this maintenance infrastructure?
Product Adaptation: Develop partnerships with local distributors for service and parts. Training local technicians and providing standardized components can create a solid foundation for ongoing support and user satisfaction.
Pricing and Offer Positioning (Detailed EPISODE Coming Soon!)
Adapting the product to a new market isn’t complete without understanding how to set an effective pricing and offer strategy. In many cases, aligning with the local purchasing power and ensuring the product’s value proposition resonates with farmers’ needs are crucial steps to facilitate adoption. Market research, including interviews and feedback, often provides early insights into what farmers are willing to invest in and the types of financial or performance guarantees they expect.
Note: We’ll dive into pricing strategies, positioning, and how to tailor offers to local expectations in an upcoming section, providing practical steps for making your product both competitive and accessible in the new market.
Study case : The evolution of weeding robots
The weeding robot market offers a perfect example of how AgTech companies must adapt their technology to better serve farmer needs. Companies like FarmWise, Ecorobotix, Carbon Robotics, and WeedSpider each began by introducing single-task, single-row weeding robots that could autonomously tackle specific tasks. However, as they entered the market, it quickly became apparent that these initial designs didn’t fully align with the real-world expectations of farmers, who required more flexibility and efficiency from such machines.
The initial concept of single-task robots was sound, but these companies found that farmers needed technology capable of handling larger areas, performing multiple tasks, and integrating into their existing workflows more effectively. This section will examine how these companies pivoted, refining their designs and evolving from specialized tools into intelligent, multi-functional solutions.
Initial Market Entry: Single-Task, Single-Row Weeding Robots
Each of these companies—FarmWise, Ecorobotix, Carbon Robotics, and WeedSpider—first introduced weeding robots designed for precision in limited scopes. Their machines could target weeds with impressive accuracy, often focusing on a bed at a time, and only working in few crops. However, while technically impressive, this approach didn’t align with the scale or operational needs of many farms in the world:
Key Insight: Farmers found that single-row robots created inefficiencies, as large-scale farms required more comprehensive, multi-row coverage to achieve a viable return on investment (ROI)
Challenge: These robots, while advanced, had limited flexibility and couldn’t handle the operational scope that farmers required for high-efficiency weeding across larger fields
Recognizing and Addressing Real Farmer Needs
Feedback from farmers and early adopters quickly highlighted gaps between these robots’ capabilities and the true demands of large-scale farming. Farmers needed tools that could cover multiple rows simultaneously, work faster, and integrate with their existing machinery.
Adaptation Phase: To stay relevant, these companies expanded their designs, transforming their robots into multi-row, multi-task systems. This required rethinking the product architecture and adding features to handle diverse field layouts, different crops, different soil conditions, and the increased demand for rapid weeding across wide areas.
Insight: By incorporating feedback from real-world use cases, these companies gained a better understanding of the productivity levels, autonomy requirements, and maintenance expectations farmers held for weeding solutions.
The Shift to Intelligent, Flexible Weeding Tools
In response, each company evolved its technology, creating robots that could cover more ground, adapt to various crops, and perform additional tasks beyond weeding. These upgrades allowed them to offer a more valuable product that reduced labor costs, saved time, and integrated easily with broader farming systems.
For example:
FarmWise developed a tool that could handle multiple rows simultaneously, reducing the number of passes needed across fields, and with a versatile configuration so the farmer can easily swap the weeding configuration
Ecorobotix, Carbon Robotics, and WeedSpider, as well as switching to an intelligent 3-bed tool, introduced multi-tasking capabilities, allowing their machine to be used throughout multiple stages of the farming cycle, from weeding to thinning and spraying.
Lessons Learned for Future Market Adaptation
The journey of these companies underscores the importance of listening to the real-world needs of farmers and remaining flexible with product designs. Instead of sticking to initial concepts, successful AgTech companies continue to iterate and adapt, using direct feedback to guide product evolution.
Future Applications: This pivot from single-task robots to adaptable, intelligent tools has opened doors for these companies in new markets. By broadening their capabilities, these solutions are could be applicable not just in row crops but also in other high value crops such as vineyards, orchards.
Anticipating Market Trends: This trend highlights the value of multi-functional, intelligent systems in AgTech—solutions that offer efficiency, adaptability, and enhanced usability
Key Takeaways from Episode 2
Avoid Premature Expansion: Expanding too early can be costly if your product isn’t market-ready. Conducting detailed market analysis ensures alignment with real-world conditions, saving time and resources.
Tailor the Product to Local Needs: Ensure the product’s design, functionality, and durability fit the specific demands and environmental conditions of the new market, from climate to everyday uses.
Case Study - Weeding Robots: Companies like FarmWise and Ecorobotix learned that adapting to farmer feedback—evolving single-task weeding robots into multi-functional carried tools—leads to stronger adoption and opens up new opportunities.
👀 Next Episode (Episode 3/7) : Making a success of your first pilot projects with farmers: a key stage in launching a new product
Stay tuned for practical tips and case studies on how to refine your offering based on real-world needs.
Are you struggling to develop your product in the AgTech market? Let’s talk! I can help you analyze your market and develop a clear strategy. Contact me on LinkedIn or organize a meeting here ⬇️
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