AgTechs arrived to facilitate farmers’ exports

By Alvaro Nunes, who has been working with Brazilian exports and entrepreneurship for over 12 years. He is currently founder and CEO of agTech Karavel

22.01.2020 | 20:59 (UTC -3)

The advancement of digital mechanisms has greatly influenced the world economy. No wonder, in fact, many companies are trying to ensure greater efficiency in both production and financial gains through these innovations, which are increasingly present in the most diverse segments. This movement also occurs in the rural sector through agtechs, which combine technology in agribusiness to bring important impacts. This is already possible in monitoring to reduce losses in the field, in the use of drones to control planting and, above all, by promoting changes in the way negotiations for the purchase and sale of agricultural products are carried out.

For those who don't know, this movement began to gain strength in the United States in 2013, when the startup Climate Corporation was acquired by agricultural giant Monsanto for almost US$1 billion. The company was a pioneer in examining climate, soil and field data to help farmers determine possible production limiting factors in their fields. The transaction caught the attention of the global market. Consequently, it also started to promote the market for agTechs.

Five years later, agribusiness technologies have become one of the main disruptive waves in the global economy. Last year alone, companies of this kind – also known as agritechs and agrotechs – received a record investment of US$16,9 billion. The amount is 43% higher than in 2017, according to a survey by Agfunder with 1,6 startups in the sector. The United States dominates this market. The Americans are followed by China, India and, of course, Brazil, where experts estimate that the sector has a lot of room for growth. And the country is already showing proof in this regard, as 182 agTechs in 2018, according to the Brazilian Startup Association (Abstartups).

In the midst of this important movement, agribusiness has gained technologies capable of facilitating Brazilian farmers' access to direct negotiations with buyers from various parts of the world. In practice, it is a platform that allows these producers to export their goods without intermediaries. Among the most sold products are beans, cottonseed, corn and popcorn.

Using these tools, farmers register their products so that all costs are automatically included. This list includes road freight, port expenses, documentation, preparation of goods and maritime transport. From there, the use of digital technology turns all of this into an international offering to be offered to global buyers. Furthermore, the potential customer can make counter-offers to purchase the products. Values ​​are always converted into reais for the Brazilian producer and into the buyer's currency of origin. All this digitally.

And the facilities go further. Neither side needs to worry about transportation or payment methods, after all, the intelligence system of this type of platform was programmed to identify the best options for production flow. Something unimaginable some time ago, before the advancement of agTechs. Who could have imagined that all of this would be possible so easily for Brazilian producers?

For these and other reasons, it is possible to say that platforms connecting Brazilian farmers to buyers abroad are here to stay, not only to facilitate this access but also to further stimulate exports in agribusiness, the importance of which is indisputable for Brazil. The sector represents 25% of the national Gross Domestic Product (GDP). And the expectation of the Brazilian Agriculture and Livestock Confederation (CNA) is that the segment's GDP will grow 2% this year, compared to 2018. Who knows, perhaps the arrival of these new technologies will boost this result even further? I really hope this happens.

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