The BIG picture: why Automate?

On the flipside, automation enables older people to stay on farms longer. “In Canada, for example, older dairy farmers have come back to the industry because the work is now less physically demanding,” Laird says. 

  Ross Paterson, Partner, RSM Australia points to one of his clients, a dairy farmer who recently invested $6 million in an automated milking system. 

“They could have patched up the old dairy for less money, but instead, they built a new, fully automated dairy,” he says. 

Semi-automated dairies, for instance, allow farmers to manage herds remotely while maintaining a hands-on connection with their animals. “It’s a lifestyle choice as well as a business decision,” he says. “The farmer can still be involved but without the same physical strain or injury risk.”

The technology monitors each animal’s health and milk output, automatically diverting milk if an issue is detected. 

Feed is customised for each cow, and the entire process, from milking to waste collection, is logged and analysed in real time. 

“From a productivity perspective, it’s impressive, but it’s also a great social licence story,” Paterson says. “The cows choose to be milked; they’re calmer, they get a feed and even a back scratch before milking – it’s a good-news story for animal welfare and for how we communicate the value of automation to the public.” 

The sustainability loop within the dairy is also compelling, with recycled water used to clean the facility, effluent redistributed as fertiliser, and brewing by-products reused as nutrient-rich feed.

“That’s the sort of cross-industry connection we’re seeing more of,” he says. “A brewery’s waste becomes a dairy’s feed supplement – it’s sustainability in action.” 

 “Agribusiness stands to benefit from technological investment more than any other sector not because labour is cheap or plentiful, but because it isn’t,” she says.  

While automation reduces demand for lower-skilled, task-repetitive roles, this does not necessarily mean job losses, especially in regions battling labour shortages.

“The bigger shift is in job composition,” she says. “There is growing demand for people who can maintain systems, interpret data, troubleshoot equipment and manage technology.”

 AusAgritech represents more than 220 agritech companies across the agri-food supply chain, including food production, fisheries and upstream technology providers. 

“With technology you can engage people who may never have considered agriculture before; developers, engineers, data analysts – these are all skillsets the sector didn’t traditionally attract,” Lovegrove says.  

“Even something as simple as reliable internet makes a difference. Young people are more likely to come to farms and stay longer if they can stay connected.”

Despite the excitement around robotics and AI, Laird says semi-automation remains the preferred approach for most producers.

“Fully automated systems, where there’s no human involvement, are rare,” he says. “Farmers like to stay in control. They want to be able to change settings, fix things, and not be completely dependent on the machine.”

Semi-automated dairies, for instance, allow farmers to manage herds remotely while maintaining a hands-on connection with their animals. “It’s a lifestyle choice as well as a business decision,” he says. “The farmer can still be involved but without the same physical strain or injury risk.”
 

Targeted spraying technology is a prime example of efficiency and environmental benefits coming together. 

“Spot-spraying systems use a fraction of the chemical that traditional boom sprays would,” Laird says. “They only hit the weeds, not the whole paddock. That saves money, protects the soil and improves yields. Healthier soil means healthier crops.”

Paterson says the benefits to both the bottom line and the environment from this level of precision are significant, cutting the use of chemicals by about 70%; reducing emissions as fewer chemicals are manufactured, transported and applied; as well as supporting soil health.

“Drones can carry a couple of hundred kilos, apply only where needed, and keep people away from the chemicals,” he says. “You’ve got one operator sitting in a shed sending drones out across the farm. It’s efficient, safer, and it saves labour.”

Even global agrochemical companies are diversifying as these technologies reduce chemical use. 

“They can see their markets shrinking, so they’re moving into data and equipment,” Laird says. 
 

She points to international benchmarks such as Agritechnica in Germany, where Australia recently hosted its first national pavilion.  

“It was very clear that Australian agritech stands shoulder to shoulder with the best globally,” Lovegrove says. 

“The technology is there, the ideas are there, what we need is more producers feeling confident enough to adopt it.”

Some forms of automation, such as GPS guidance and auto-steer, are now mirroring global trends, but more advanced automation is still adopted cautiously.

  “There is still a level of distrust around software and automation,” Lovegrove says. “If you tell a farmer that an app can control their water pump, they will look at you like you’re mad. But once you walk them through the return on investment, and trial it in practice, attitudes change.” 

“Cost and risk are the biggest barriers,” Laird says. “No one wants to be the first mover, because tech is evolving fast. You buy something today and the next model might be around the corner. So, you’ve got to ask: What’s the payback period? What’s the risk?”

He recommends every agribusiness prepare a structured automation business case, assessing capital cost and financing options, expected operational savings and productivity gains, and payback periods, as well as eligibility for grants or R&D Tax Incentives. It’s also important not to forget training and implementation planning of the new technology. “Otherwise, it’ll sit in a shed for six months.” 

A decision framework that examines what the business will look like with automation and what it will look like without it, three to five years hence is essential.

Laird argues more government support is required to help early adopters manage the risk of being first movers. “If everyone waits, nothing happens,” he says. 

Paterson agrees, saying early adopters are critical. 

“Someone has to go first, take the hits, make it work, and prove it up,” he says. “What’s different about agriculture is that farmers are happy to share; they’ll say, ‘Don’t do this, do that’. That’s why progress happens so fast once something’s proven.”

“What we’re seeing is farmers becoming better business operators because automation frees them from the daily grind,” he explains. “When you’re no longer the backstop every time someone doesn’t turn up for a shift, you can finally focus on growth and reinvention.”

Lovegrove concurs. “Automation is not about replacing people; it’s about filling gaps where labour is absent and enabling farmers to maintain production without over-reliance on temporary or casual workers,” she says. 

“In sectors like dairy, producers have been under pressure for a long time – milk prices haven’t shifted much but overheads have increased dramatically. Automation can be a game changer; it allows people to stay on farms longer and lifts productivity without increasing overheads.”

 There is some disquiet, however, about the potential for automation to remove intensive agriculture from rural and regional areas. 
“Once you can grow something entirely inside a shed, why does that shed have to be in the country,” Laird says. “Urban mushroom farms already proved the model. While city-based production cuts freight and emissions, it also risks drawing economic activity away from regional communities.” 

With the right investment, Shivadekar believes automation and AI could have the opposite effect, encouraging decentralisation in favour of regional development. 

“Regional Australia is an untapped opportunity for advanced operations, if infrastructure investment keeps pace,” she says. “Remote operation happens in cities because the infrastructure is there, but capital cities are expensive. As margins compress, firms will look to regional Australia for lower land costs, stronger workforce attachment and better long-term economics.” ose componen

Australia invests more than $3 billion annually in agricultural research and development but funding for extension and advisory services has fallen over the past two decades.  

“That’s a real risk – we have strong innovation pipelines, but weaker diffusion capacity,” Shivadekar says. Targeted micro-credentials, locally delivered training and region-specific adoption pathways will be critical, particularly in thin labour markets where displacement risks are amplified.

Global research by the United Nations Food and Agriculture Organization (FAO) and the Organisation for Economic Co-operation and Development (OECD) shows a consistent pattern: automation lowers routine labour demand while increasing the premium on technical and analytical skills.  ose component ose component

AusAgritech is developing a National Agritech Strategic Plan built around three pillars: 

• Accelerating commercialisation and adoption – bridging capital, capability and connection gaps
• Strengthening collaboration across innovation, industry and government – promoting a more connected system where research priorities, public funding and market needs align
• Embedding agritech into the future of Australian agriculture – investing in regional capability, a skilled workforce and domestic production that retains value and intellectual property 

 “Agritech isn’t separate from agriculture – you can’t have innovation without farmers and farmers need innovation to stay viable,” Lovegrove says. 

Government awareness is improving, with dedicated agritech and innovation teams emerging within State departments. 

“We’ve come a long way; now the challenge is ensuring that the technology we build actually solves real problems on the farm,” Lovegrove says. “If you’re building agritech and you’re not solving a producer problem, you’re not building the right thing.