We live in a time of incredible change, which exposes us to risks, it is true, but also opens up many opportunities. Since I started dedicating my time to analyzing the startup environment, mainly agtechs, I started to put together a list of those that I believe will have the most impact each year.
It is quite an exercise to foresee transformations, because these companies are the embryos of the future. The vision that its founders have, the speed with which they implement new businesses, how they take risks and how they seize opportunities are relevant signs of what awaits us, they are even a thermometer of the future.
I have not the slightest doubt that the great technological transformations in agribusiness are already coming, for the most part, from agtechs. Whether by simplifying and automating processes, encouraging the use of digital tools, mechanisms that generate greater assertiveness in decision-making. These startups contribute a lot to the sector, generating insights for large companies as well, in addition to collaboration opportunities.
Brazil is at the forefront of digital agriculture and I say this when I see the ground prepared for emerging technologies to find their place in the sun in crops. Today, agriculture 4.0 is already a reality in the countryside and is paving the way for the arrival of Web 3.0. ESG guidelines, in turn, move in line with technology to promote green finance. While the internet of things, artificial intelligence, augmented reality and autonomous vehicles promise to one day benefit from 5G. In this context, the blockchain also supports NFTs (operational tokens) and the necessary security for Big Data. 3D printing, nanotechnology, cellular agriculture and synthetic proteins are other examples of what is coming to expand our range of options in food production.
Companies like Seedz/Atomic Agro, Traive, Goflux, Bart Digital, Digifarmz, Aegro, Aliare, Solubio, Flex Interativa, Openeen, Biome4All, Agriacordo, among others, mentioned by me in previous articles, have impacted the life of the farmer in the last year. They generated value before, inside and after the gate, bringing innovative products, improving management and causing fiscal, tax and marketing changes in our production.
Renovation in the ecosystem
Today, Brazil has 1,703 agtechs, according to the AgTech Radar 2022 promoted by Embrapa, SP Ventures and Homo Ludens. There was a growth of 116 companies or 7.5% in one year, which shows the dynamism and genius of our entrepreneurs. Of these, 242 startups operate before the gate (14.2%), 705 inside (41.4%) and 756 after the gate (44.4%), with solutions that go from the field to the consumer's table, contemplating the ag and also the food techs.
According to the same study, 50% of our agtechs focus on five segments:
- innovative foods
- property management systems
- Marketplaces
- System integrator platforms
- Drones, machines and equipment
A good part of these startups are also involved with guidelines related to the UN Sustainable Development Goals (SDGs), such as Sustainable Agriculture, Zero Hunger, Impact on the use and management of inputs, Impact on food production and Sustainable consumption. They are always looking to the future!
On the other hand, the Brazilian farmer and rancher has four great needs, in my opinion, which are:
– Increase productivity
– Increase profitability
– Reduce risks
– Ensure Marketing
Brazil has a unique environment in the world, which challenges producers and entrepreneurs to innovate. We live in a time when the integration of crops, livestock and forestry is growing, when we have the need to do direct planting due to greater soil erosion and when we have the capacity to produce two or even three harvests per year. But this comes with a great demand for controlling weeds, pests and diseases and an environment of microclimate and unique soils, requiring high control and technology for the operation to be profitable.
As if all that wasn't enough, we have one of the most complex and cumbersome tax systems in the world, and a major challenge for the coming years, in terms of inflation, logistical costs, inputs and labor.
That is why I believe so much in the success of Brazilian agtechs and, for my 2023 list, I sought to indicate startups with well-established processes for managing products, processes and people, something that I consider essential for successful businesses.
Efficient management involves having innovative products and a clear value proposition; simple, structured and easy-to-adopt processes; and qualified and talented people to make the company grow sustainably.
Below is my personal list, which I have compiled as an agro scholar and executive for over 20 years. This list brings the agtechs that I, Renato Seraphim, believe will have the most impact on Brazilian agribusiness in 2023:
Auravant is the only agtech from outside the country that I mention in my bets. Originally from Argentina, with headquarters in Spain and an office in Brazil, it is an easy-to-use integrating platform. Its objective is to improve agronomic knowledge, democratizing access to data and incorporating advanced analysis models thanks to communication with precision agriculture machinery and equipment systems. The integration it allows can be carried out by players from the entire production chain, from the producer to input companies, machinery and the food industry, in this case, for production traceability purposes.
All this data integration, in my opinion, is the great strength of this agtech, since today we have a lot of data in the field that is still not talked about. Through the Auravant platform, crop monitoring can be done via satellite images or even drones and the information generated helps, among other things, in recommending inputs for exact application in the crop using agricultural machinery. To facilitate the user's daily life, the platform also allows taking notes and photographs on the farm, in addition to automatically obtaining reports and work orders.
With a global presence in around 100 countries, over 70,000 users and 10 million hectares monitored, Auravant has served a number of companies such as Syngenta, Adama, GDM etc.
Agrorobótica is a physical and chemical analysis agtech, which uses the LIBS technique (Laser-Induced Breakdown Spectroscopy) to carry out soil analyses. This technology is the same used by NASA robots to explore the planet Mars.
The technique requires a high-power laser that, when it interacts with the soil sample, causes the material to explode, generating a plasma – a cloud of protons, neutrons and free electrons. (I recommend reading the article by researcher Débora Milori, from Embrapa Instrumentation, about this technology on the Agrorobótica blog). Agrorobótica is a spin-off of Embrapa Instrumentation.
As the researcher explains, this plasma emits a light characteristic of the composition of matter, which is analyzed by a spectrometer to detect chemical elements, such as phosphorus, iron, zinc and carbon.
Today, with benchtop equipment, Agrorobótica is able to analyze more than 1,000 samples daily, providing customers with data on the amount of organic carbon, soil texture and pH. The data is digitized on a digital platform and made available via the app.
From there, it is possible to make more assertive agronomic recommendations and soil corrections, in addition to quantifying the carbon stock in the soil. So far, the company has analyzed over 80,000 samples, charging R$ 100 per hectare. In my opinion, the more accessible this type of technology becomes, the greater the chances of Brazilian producers obtaining an extra source of income in the carbon market.
In the area of legal certainty and digital contracts, so essential in agribusiness, the work of Agromatic, linked to the Laure Defini Advogados office, calls my attention. The startup came up with the idea of optimizing the digital operations of the agricultural sector, reducing the cost and bureaucracy for the actors in the chain.
With a digital platform, contracts and credit instruments, such as CPRs (Rural Product Bills), are digitized, certified, verified, notarized and electronically endorsed by the startup. This applies to the situation of financing operations, costing, purchase and sale of goods, agricultural inputs, among others.
Currently, Agromatic acts as a registrar authorized by B3 and has already carried out operations involving more than R$ 8 billion since 2020, having 70 active CNPJs as clients. The startup offers customizable dashboards and constant training and technical support at the end, which in my opinion is very relevant to grow in agribusiness.
Nanotechnology fascinates me and I strongly believe that this will be a widely used tool in agriculture, just as it is in medicine. I've already written several articles on this subject for AgTech Garage News (it's worth coming back to Brazilian startups exponents in nanotechnology and das Big Agtechs) and, this time, I highlight the startup Krilltech. This agtech really enchanted me and I believe it has everything to bring differentiated solutions to Brazilian agribusiness with the biological input that is its flagship.
Krilltech emerged from a partnership between the University of Brasília (UnB) and Embrapa, focused on the development of sustainable and high-productivity agriculture, and they arrived at a unique product in the Brazilian market: Arbolin Biogenesis.
Arbolin, the base of the product, is present in nature, but it is difficult to synthesize, needing to be manipulated in a controlled environment so that it can be produced. What the teams involved in this project have achieved is to bring the production of this nanoparticle to an industrial scale. According to its website, there are already more than 30,000 hectares of treated area, with 23 different cultures, and 210 clients served in 18 states.
A potent promoter of plant physiology, arbolin stimulates plant productivity even under conditions of water stress and, in addition to Arbolin Biogenesis, Krilltech has other solutions in its portfolio.
Promoting harmony between agricultural and beekeeping production, this is GeoApis' proposal, which facilitates communication between farmers and beekeepers to generate mutual benefits.
By cell phone, the beekeeper provides the rural owner, for example, the location of his bee boxes. While the farm manager shares the defensive application schedule, so that the beekeeper manages his apiary properly, avoiding contamination and also accidents with farm workers.
The solution has even been used by agroindustries, which carry out socio-environmental projects with surrounding communities. Another benefit generated for farmers is the possibility of producing wild honey in Legal Reserve areas within rural properties.
For the beekeeper, efficient communication guarantees better quality and food safety for his product. Through the app, this public also has access to an area management tool for recording the honey harvest, which indicates the average honey harvested per hive and the weighing of collections.
Considering the context of an increasingly sustainable production, such solutions must be increasingly demanded by the market. In the case of Geo Apis, one of the strengths to keep moving forward is the management and knowledge of the founder, Elaine Basso, in the beekeeping business, in addition to the networking that the startup does from its headquarters in the AgTech Garage.
In the field of education, my highlight goes to Cumbre, which helps solve one of the great challenges of agribusiness: training people. The sector that moves 28% of the Brazilian GDP may have a shortage of professionals with skills to work with digital agriculture.
According to data from the survey “Emerging professions in the Digital Era: opportunities and challenges in professional qualification for a green recovery”, published in 2021, in the period until 2030, Brazil should demand around 75 thousand agronomists with specialization in the area of technology and digitization, while the supply of qualified personnel, at the current training pace, does not tend to exceed 22,500. That is, a deficit of 84%.
Currently, Brazil has 23 specialization courses registered on the Ministry of Education's platform on digital, precision or digital agriculture, which together offer 2,250 vacancies per year.
From the objective of developing new talents with the capabilities demanded by the market, Cumbre was born. Founded in 2022 by agronomist and entrepreneur Felipe Treitinger, the startup now has renowned executive partners — Gerhard Bohne, Ivan Moreno and Fabio Guerra — who, like other market specialists, share their knowledge on the platform based on practical cases. . (It is worth pointing out that I am also a professor at Cumbre).
The startup's goal is to attract professionals who have been or are responsible for large billings and the development of successful teams in the largest agro companies and pass their knowledge on. This, in fact, is the great differential of this agtech: having professors with extensive experience in the sector and with extensive knowledge of the market, who offer a qualification of a marketing nature, focusing on behavioral, commercial and relationship aspects.
Tarvos is a company headquartered in Campinas (SP) that is a pioneer in the development of software solutions and electronic equipment for data collection for the digital management of agricultural pests and diseases.
Using the concept of edge computing (edge computing) and machine learning (machine learning), the company has developed intelligent traps that, thanks to data transmission via satellite, ensure that chemical and/or biological inputs are applied where and when necessary.
With a system with international protocols for phytosanitary control adapted to the main Brazilian crops, it is a partner of agro giants, such as Syngenta, FMC, Corteva and UPL.
Doroth is one of those startups that, when you look at it, you are sure it will grow quickly. So much so that, since 2018, it has been receiving significant contributions to reinforce the team and improve its technology for biomolecular analysis of microorganisms.
Strategically positioned in the fastest growing input market in Brazil, that of biological control, the bioengineering company provides solutions to identify, quantify and monitor microorganisms in the soil of farms.
Through molecular analyses, it measures the concentrations of microorganisms (both beneficial and pathogenic) in the soil, indicating a more assertive biological management, in addition to identifying patterns of biological interactions that contribute to crop productivity.
Doroth's biological monitoring can be performed for more than 30 species of soil microorganisms, including viruses, bacteria, fungi and nematodes. Another market that Doroth has been targeting is the evaluation of the quality and quantity of microorganisms at the output of biological industries “on farm”. This is a great opportunity, given that producers who produce their inputs on the farm still have the challenge of knowing which organisms they are actually applying, in what quantity, if they are viable or not and if they have contaminants.
The product sales cycle is simple, fast and the technology is accessible, which, in my opinion, is essential to change agriculture for the better. Serving both the B2B and B2C models, Dorth's biggest challenge will be gaining scale. With a base of 40 thousand hectares monitored, in a universe of more than 60 million productive hectares in Brazilian agriculture, it has plenty of room to grow.
If human capital was one of the main factors I considered in my choices this year, I could not leave Tarken out of this list, led by Luiz Tangari and Carlos Neto, co-founders of the pest management platform Strider, today Syngenta Digital .
With just 15 months, Tarken, headquartered in Belo Horizonte (MG), already has around 20 partner resellers and is working to digitally integrate agricultural input sales channels with its digital sales software, optimizing decision-making in the marketing and credit analysis. This can help shape the financial health of the channel, creating the ideal balance between leverage, default and growth.
In a market that grows between 6% and 10% per year and has revenue from inputs around US$ 80 billion/year, coupled with a credit market of US$ 90 billion — where 70% of this credit is still offered by distributors and industry, with an average leverage of 3 times and serious problems reconciling growth versus default, due to lack of guarantees and information from producers — the creation of integrating platforms is very important.
In my market experience, I saw many distributors invest fortunes in inefficient CRM systems. This platform, in turn, with a shared risk business model, manages to be simpler and more assertive.
Today, Tarken is also focused on serving agribusiness producers and distributors in facilitating access to credit and opportunities. In the case of resellers, it provides, for example, regional credit analysis for mapping business opportunities; a complete X-ray of the producer's profile from CPF/CNPJ and information related to the financial and operational health of the crop. For producers, it gives access to more accurate quotations with information by city; to an integrated shipping and tax calculator and an environment for bidding and finding buyers for your production.
Beeotec is a Brazilian “deep tech”, which invests in science and research in the field of biotechnology. In practice, it investigates organic and natural substances to convert them into innovative products, whether for the agricultural and veterinary field, health, personal care or beauty.
In agribusiness, the company has developed a systemic foliar resistance inducer and ripening retardant. The basis of the product is Beeocitrix, whose aqueous dilution technology generated unprecedented molecules from propolis and other natural ingredients. This active was patented in Brazil and other countries and has bactericidal and virucidal action, being soluble in water and of low toxicity.
In the veterinary context, Beeotec has an animal feed supplement for cattle, which promises to reduce methane emissions from animals.
The company's big challenge now, in my opinion, is the scalability of the products, since the main asset is a natural substance that requires industrial processing.
I close this article with the hope that the 10 startups mentioned above achieve success in the short and long term, driving the advancement of Brazilian agriculture. As a lover of the sector and a professional at the UPL, I open the doors for us to collaborate in this construction.
At UPL, our purpose of reimagining sustainability, always fostering open innovation, makes us great supporters of agtechs. For us, it is a pleasure to work with these agro entrepreneurs, visionary people.
From a personal point of view, I also register my commitment to contribute to startups willing to invest in the mindset of generating value for the producer. Count on me and UPL to grow together and scale solutions with all the potential to transform and positively impact the agro.
Renato Seraphim is an agronomist with a degree from Unesp in Jaboticabal (SP) and a postgraduate degree in Marketing from Fundação Getúlio Vargas (FGV). He currently holds the position of Chief Marketing Officer at UPL.
In agribusiness, he took specialization courses at the Agroindustrial Systems Studies Program (Pensa-USP), Fundação Dom Cabral (FDC), Insead Business School and Perdue University. With 25 years of experience in the sector, he has worked in agricultural pesticides and biotechnology companies.
