As an industry, the Sustainable AgTech It is still in its initial stage, comprised mainly of SMEs and startups. The main characteristics of these types of companies are their innovation and dynamism within the vast agri-food system of Latin America and the Caribbean, and their high degree of heterogeneity across countries in terms of scale, sophistication, and contribution to the economy.
While much of the commercial agribusiness that dominates agricultural powerhouses like Brazil and Argentina is represented by large farms, more than half of the region's food production comes from small farmers. This means that, for the sustainable AgTech sector to succeed, the proposed solutions to drive its development must address sustainability issues at the appropriate level while ensuring that the benefits from the technology are shared by stakeholders at all levels..
The challenge for the political community is then produce an innovation ecosystem that allows the
Sustainable AgTech to have an impact at scaleTo achieve this, it is necessary to understand in depth what AgTech startups are doing, to what extent they are driving sustainability in the region, and what their needs are. Then, by understanding the role they play and taking ambitious policy measures, these startups can be encouraged to achieve the development necessary to promote sustainability within value chains.
The objective of this white paper is to inform policymakers about the state of sustainable AgTech in the LAC region and to suggest policy recommendations to support and enhance it.
When considering the methodology to be used to carry out the research, it was proposed to invite leading startups in the application of sustainable technology to participate in a Challenge entitled «Sustainable AgTech Challenge«.
Throughout the challenge, which lasted more than a month and a half, More than 80 companies in the region responded to a questionnaire that... Universidad Austral contributed to the developmentWith the responses received and, together with a series of interviews conducted with experts in AgTech, entrepreneurship and agribusiness, a diagnosis was drafted that took into account the global vision of entrepreneurship in Latin America within the agri-food chain.
The challenge:
The call for this challenge was aimed at innovative startups whose products, services and/or technologies are contributing to combating the causes and impacts of climate change, thus creating more regenerative, sustainable and inclusive agri-food systems.
The Challenge received 115 applications from around the world, 84 of which came from Latin American countries and another 31 from countries such as the United States, Spain, China, Japan, Canada, France and Tanzania, among others.
Throughout the challenge, in addition to the surveys, A further evaluation of innovative public policies was carried out to understand the food system problems that startups are trying to solve, the related market, and policy settings in the region..
This diagnosis was included in the final version of the White Paper, which aims to inform policymakers in the region about the gaps, barriers, limitations and opportunities to develop innovative AgTech solutions that help combat climate change and advance the Sustainable Development Goals relevant to meeting the targets of the 2030 Agenda.
More information about the challenge
This study allowed us to confirm that, over the last decade, dVarious technologies have gained importance, increased their use in agri-food systems, and enabled new business models that have offered opportunities to address the full range of challenges posed by sustainability..
Furthermore, we concluded that global technological applications and business models are growing in number and type across value chains, helping to reduce food loss and waste, making more efficient use of natural resources and agricultural inputs, mitigating climate change, contributing to the fossil fuel decarbonization of the agri-food system, promoting sustainable energy, fostering a shift towards healthier diets, and contributing to the creation of new value chains based on biomass waste. Undoubtedly, these technological applications can play a key role in large-scale ecosystem restoration, offering efficient solutions to societal challenges.
We saw that Among the ventures mapped in ALC, 55% of the startups offer solutions for the agriculture and food in general, while 45% of startups are targeting Specific verticals such as specialty crops, fruits and vegetables, fish farming, forestry and bioenergy. The focus of innovations in general terms has been on the farm, representing 87% of the total and particularly in the area of digitization of rural work - field, administrative and commercial - where it reaches 67% of the total of the companies.
Finally, we observe that the solutions developed by AgTech companies in Latin America and the Caribbean are mostly technologies supported by remote sensing, geolocation, and mobile technology; meanwhile, Technologies related to artificial intelligence, big data, blockchain, and robotics are still in the early stages of development.
Policy evaluation being the main objective of «Sustainable AgTech Challenge», Some of the government recommendations that have been reached were:
- Empowering agricultural producers in Latin America and the Caribbean to understand the dynamics of investment in startups
sustainable, and thus convert part of the surplus from their main activity into this type of
ventures. - Raising awareness among farmers about climate change and train them in practical skills
sustainability through producer organizations and agricultural institutions
governmental. - Provide tax benefits to agricultural producers who adopt sustainable practices
- Increase the visibility of local startups in global green capital markets,
generating more instances of valuable connection between international investors and companies
LAC, and supporting startups in the process of obtaining international certifications
sustainability. - Promote the development of green corporate investment in LAC through the creation and support
of agencies and innovation centers that promote connection and interaction between the
sustainable startups and leading companies in the agri-food value chain. - Boosting the expansion of green corporate investment in LAC through fiscal policies
nationals.
