Building a growing animal agtech company with Stefan Scherer, SmaXtec
54 min
Sustainability in dairy is usually talked about in ecological terms. But a farm has to be economically sustainable. As my guest puts it: “I can have the best farm in the world. If it goes out of business, it’s not sustainable. And the best methods don’t help if they don’t survive the everyday operation.” Today I am joined by Stefan Scherer, former CEO and now a board member of smaXtec, the Austrian company behind an intraruminal bolus that monitors dairy cow health around the clock. Stefan grew up in the Alps. His grandparents ran a small dairy farm and his father sold cheese. But he came to agriculture as a physicist and computer scientist. His first startup taught him a hard lesson. He built 3D measurement technology for electron microscopes, convinced people would love it, “just to realize that nobody really needs it.” Since then he has started with the customer: “Where is the value at the farmer? What’s their pain?… and then you can match your technological offers to solve those pains… but not the other way around.” That philosophy runs through our conversation. “Money is a necessity, but money doesn’t solve the problem. It’s always the people executing.” People buy from people, and after the product itself, support is what customers value most. “You cannot dump technology into an industry without really providing the support and guidance on how to turn it into actual value.” At its simplest, Stefan says, “you need a happy and healthy cow. That one will give you the best milk in the long term.” The bolus can warn a farmer that a cow is likely to get sick within four days, which lets farms move from treating sick cows to preventing illness. That shift depends on trust. The biggest lever, Stefan argues, is longevity. Cows only become truly profitable from their third lactation. Despite whether a cow is in a housed system in Wisconsin or grazing in New Zealand, “a mastitis is a mastitis.” We also discuss why investment in agtech has been so difficult. Stefan poin...