Corporate-startup collaboration is vital for the growth of Latin American agrifoodtech, say GLOCAL panelists

Date:07-31-2023

By Andrés Engler

Strong growth in the Latin American agrifoodtech sector presents a lucrative opportunity right now when it comes to startups and corporates working together to advance food systems.

While the region still represents just 5% global agrifoodtech VC investment, that number grows each year, with Latin American startups raking in $7.3 billion since 2018, according to AgFunder’s recent report in collaboration with SP Ventures, Alianza Team, BASF, and Cibersons.

This represents a unique chance for corporations, startups, and global and regional funds to collaborate, said participants in a recent online panel organized by GLOCAL, a Latin American agrifoodtech startup investor and accelerator platform.

Above all, agrifoodtech startups and corporates need to learn to work together, Hernán Castro, chief financial officer at GLOCAL, said on the panel. ″Without a doubt, they both have to learn together because that’s where the most powerful innovation comes from. There is a lot of value in that kind of connection.″

Latin America: ‘A spectacular source of innovation’
Just as the Latin American agrifoodtech ecosystem has grown over the past five years, Louis Dreyfus Company’s interaction with accelerators, incubators, and universities has also expanded, said Juan José Blanchard, head of Latin America at LDC. ″The region is a spectacular source of innovation. Crises in Latin America force people to look for disruptive solutions. We partner with them, whether through a pilot test, a commercial agreement, or a direct investment.″

In its citrus plantations in Brazil, LDC has been collaborating with Kilimo, an Argentine startup that optimizes irrigation systems. LDC also works with another Argentine startup called Beeflow to improve crop pollination through the latter’s proprietary tech platform.

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