Sow the seeds of innovation and you will reap productivity: the agrotech revolution
Agriculture is the largest global employer of people, providing a livelihood for 40% of the world’s population. But it faces increasing challenges, from high water consumption to the need to deliver products to an expanding population in a more efficient way. Innovation plays a key role in overcoming these challenges, and agrotech start-ups are already reaping the rewards.
A sector full of obstacles 🚧
Traditional agriculture, a poorly digitised sector, at the same time faces the scarcity of natural resources…
- 40% | Wasted irrigation water
- 73% | Global deforestation is a result of agriculture
… And a growing demand for food
People suffering from hunger:
- 828 million | 2022
- 2.000 million | 2050
With a growing population, a race against time against climate change, lack of resources and crises such as the war in Ukraine threatening supplies, the agricultural sector has to accelerate change.
A glimmer of light: agrotech ☀️
Technology applied to agriculture is one of 2022’s innovation trends for BBVA Open Inovation.
The sector’s start-ups offer innovative technological solutions to add value, contribute to digitisation and improve the performance of agri-food industries throughout the entire chain.
There are also start-ups specifically focused on combating food waste.
All this is the countryside: agrotech at a glance
- + 10.500 | agrotech start-ups in the world
Country rankings by number of agrotech companies
- USA – 2,896
- India – 1,338
- Spain – 757
- United Kingdom – 595
- Canada – 542
- Australia – 474
- China – 294
- The Netherlands – 273
- France – 254
- Germany – 242
- Brazil – 219.
The trends and start-ups that are thriving 🌱
Cutting-edge technologies
The application of the latest technologies makes it possible to optimise farm management.
Big data. Analysis of large amounts of data to draw conclusions and increase efficiency.
- Kilimo. Argentina. A platform which uses satellite, weather and field data to optimise irrigation.
IoT | Connected devices and networks for remote monitoring and management.
- Ixorigue. Spain. GPS collars for digital livestock tracking and monitoring.
AI | Optimised crop and livestock management.
- BrioAgro. Spain. Algorithm for intelligent watering, which can be automated remotely
Blockchain | Technology for the secure storage and transfer of data.
- ucrop.it. Argentina. A cooperative farming system that uses blockchain for the confidential traceability of information.
Key applications
Agrotech start-ups innovate to provide solutions for different purposes…
Saving water | ‘ Software to reduce consumption of this precious resource.
- Groots. Spain. Vertical agriculture to increase production and avoid water waste.
Optimising business planning | ERP systems in the cloud.
- Trinity AgTech. United Kingdom. Virtual assistant to manage data, calculate natural capital and certify carbon footprint. Participants in BBVA’s Fast Track initiative.
New sales channels | Digital agri-food marketplaces.
- ProducePay. United States. Access to finance, sales channels and market data analysis.
Increased pest resistance | Genetic engineering and research.
- Phage Lab. Chile. Bacteriophage viruses that help fight bacteria affecting plants
Improved plant health | Development of bio-fertilisers, beneficial micro-organisms.
- Nostoc Biotech. Spain. Fertilisation and crop protection solutions derived from earthworm humus.
Partners to water the new projects 💧
Agrotech start-ups attract increasing investment worldwide
- 2020: 3,300 M USD | 422 operations
- 2021: 5,000 M USD | 440 operations
- In Latin America, investment is lagging behind: $35.4 million in 2021 – 3% of total investment rounds.
Public and private bodies provide capital and help to boost the sector
- Investment funds | AgFunder, AgVentures II, S2G Ventures
- Associations | EIT Food (UE), AgroTech España, World Agri-Tech
BBVA does its bit
- Microfinances to adapt to climate change
- Agro-loans for Ecological Conversion
Nurturing sustainability 🌳
For agriculture, a sector that is as fundamental to our survival as it is damaged by our way of life, agrotech innovation is a revolution.
- Environmental: reduces pollutant emissions and water waste.
- Social: creating new jobs and improving conditions for existing workers.
- Economic: increases productivity and reduces costs.
An increasingly green and efficient agriculture is an imperative to ensure food security and environmental conservation, for us and for future generations.
