Digitalization and the use of technology has become the norm in every segment of production, and the agricultural sector is no exception. With the
forecast to reach nearly 10 billion by 2050, the use of digital and connected systems to boost agricultural productivity may become fundamental to guarantee a sufficient food supply. In Latin American countries – where the agricultural sector can represent up to 20 percent of the
The Latin American agritech business landscape
The
number of agricultural technology enterprises in Latin America has more than quadrupled in the past decade, reaching over 540 businesses as of 2019. At that point in time, Brazil and Argentina were the
countries with the largest share of enterprises, concentrating nearly three quarters of the region’s companies. And this trend shows no sign of slowing down, with new ventures being developed throughout Latin America. In Brazil alone, 13 new
AgTech venture capital deals were reported in the first semester of 2020, the fourth most popular sector for investments in the period.
Precision agriculture market
One of the
main segments of smart farming enterprises in Latin America is the precision agriculture market. This approach to crop production makes use of specialized equipment, such as satellites and drones, as well as sensor data in order to monitor the field conditions in real time and guide the decision making process, resulting in an increase of productivity combined with a more sustainable use of resources. In Latin America, the
precision agriculture market was forecast to surpass one billion U.S. dollars by 2021, with Argentina reporting the
largest growth rate in the region in upcoming years.
Rising demand for monitoring devices
As the smart agriculture sector expands in Latin America, reaching a larger number of farmers, so does the demand for monitoring devices. The
market value of drones for agricultural use in the region is forecast to more than triple between 2018 and 2023. In half a decade, the
livestock monitoring system market is expected to double in value, a trend also projected for the
revenue of navigation satellites systems for agricultural use. One thing is certain, the digitalization of the Latin American agricultural sector is only just beginning.
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