“In the last decade the agricultural sector witnessed a radical change from the growing use of technologies digitally based. This global trend is replicated in the case of Argentina”, mentions a paper from the Inter-American Development Bank (IDB) that aims to boost growth in the country of “agtech”, the techno applications designed for the field.
“In addition to making the tasks carried out in various links of the chain more efficient, from field production, through industrialization, to marketing, this pemergent paradigmusually known as agtech, led to new opportunities for scaling in global value chains. Startups in this sector often use disruptive technologies such as big data and artificial intelligence to provide their services”, explains the report.
The IDB points out that Argentina, in “interaction with other actors in the ecosystem such as incubators and accelerators, investment funds and science and technology organizations”, finds opportunities for expansion and business in the agtech industry. For which it is imperative to obtain financing, develop and validate technologies, as well as, in some cases, find ways to scale companies internationally.
Precisely on the global stage, agtech has become a key sector for venture capital, with high-profile investors such as the Bill Gates, Google, and the universities of Stanford and Texas. And big agribusiness corporations like Monsanto and Syngenta are also leading the way.
Until the end of 2013, when Monsanto acquired Climate Corporation for $1 billion, few investors thought of technological innovations in agriculture. Most of the innovation in agriculture was concentrated in the “traditional players in the sector”: biotechnology and genetics for seeds.
However, the following year, according to CrunchBase, investment in agricultural technologies exceeded 2.36 billion dollars. And in 2015, the amount of investment in technology start-ups for food and agriculture reached 4.6 billion, doubling the figure in just two years. In tune, two years ago, the IDB announced that it would allocate 3 million dollars through the MIF (Multilateral Investment Fund, the innovation laboratory of the multilateral organization) to the development of technology-based enterprises in Argentina.
And a series of projects and companies were awarded. “From Kilimo we announce this support from IDB Lab that is part of the Emergency Financing Line for Startups and Scaleups (LIFESS) and will improve the capacity of small and medium farmers in Latin America and the Caribbean (LAC) to access a solution innovative of water use efficiency”, marked in a statement the agtech startup based in Argentina that seeks to transform irrigation management and water efficiency in agriculture in the region.
“Kilimo provides services to more than 200 farmers in 8 countries, saving more than 30 billion liters of water per year, with cost reduction and a significant improvement in the general sustainability of agricultural activities”, says the company.
Another of those recognized in the field by the Inter-American Development Bank was CREALab. And also agreethe agro fintech highlighted by the (IDB) as one of the ten most innovative agtech startups in Latin America for “adapting to the new requirements of users and consolidating itself as an agile and safe option.”
“The Argentine field needs more than U$D 20,000 million per year to produce. At Agree we achieve a virtuous circle: we accompany the growth of the producer by giving them access to sustainable financing. We use technology to provide the credits and we seek that the producer in turn can access inputs, services and insurance to improve the margins of his business”, explains Nicolás Mayer Wolf, CEO of the company.
In its expansion plan, it went from granting $1,000 million pesos in credits in the 21/22 campaign to $30,000 million pesos for the 22/23 campaign. Operate with more than 3,000 companies in the sector and seeks to continue growing in markets such as Mexico: it has more than 3 million producers and 90% are not banked.
A case not so distant from the Argentine. According to a survey carried out by INTA, 90% of producers use apps and digital platforms in their work, but 7 out of 10 have connectivity problems: Although the adoption of AgTech is massive, for many producers the lack of internet in rural areas limits its impact.
“The agricultural sector had digitization needs very strong”, endorses Blas Briceño, president of Finnegans, a company focused on the sale of management software for agriculture and construction with more than 4,000 clients in Latin America and the United States. “Now there is a set of agtech and new developments digital networks that function as an ecosystem that continues to grow”, says Briceño.
“Digitalisation is not only about speeding up times and making communication more efficient, it is, above all, Create a safe and trustworthy environment to help everyone make more informed decisions, understanding what is relevant for each of the parties”, says Sebastián Miret, CPO of Agree, who counts among his investors the Sancor Group Insurance Y The Yield Lab, the Venture Capital firm belonging to Agri Food Tech, the technology project accelerator with a strong presence in Latin America.
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