Advantages of investing in agrotechnology in Chile

There is a high demand for smart agriculture, water resource management, food traceability, agroinformatics, and agricultural biotechnology.

Current Chilean agrotech companies are dedicated to enhancing agriculture efficiency, productivity, and sustainability by combining digital and traditional tools. Chile offers a dynamic business ecosystem, access to diverse natural resources, a favorable innovation climate, and a solid agricultural base.

Francisco Astaburuaga, President of AgroTech Chile—an association that brings together Chilean agriculture companies—also highlighted that the Chilean government “has implemented policies that promote foreign investment and technology adoption in the agriculture sector.”

AgroTech Chile is currently composed of more than 70 companies, from consolidated businesses to startups, in the initial stages of development, all with a focus on innovative products and services for agriculture, incorporating issues such as digital operations, irrigation management, IoT machinery, and artificial intelligence, among others.

Where are the opportunities? According to Astaburuaga, Chile’s agrotech sector is most in demand in smart agriculture, water resources management, food traceability, agroinformatics, and agricultural biotechnology.

Agriculture is undergoing major changes to ensure the competitiveness of producers and companies in the ecosystem. These changes have required the use of more technologies and investment in innovation. Without technology and innovation, agricultural companies quickly become uncompetitive. This can be clearly seen in areas such as certifications, efficiency, and environmental requirements,” he said.

The business model

Initially, agrotech companies in Chile focused on the local market to validate their products and services. As soon as their operations were consolidated, they expanded to new markets, with Peru, Colombia, and Mexico being the most frequent destinations. Astaburuaga attributes Chile’s position as a regional leader in fruit production and water management to the significant progress made by local agrotech companies.

“Many partner companies seek financing to drive growth, develop new products, or expand to new markets. An attractive alternative that has started to gain traction is corporate venture capital (CVC). This type of financing has proven effective in obtaining a rapid product-market fit and driving significant initial sales growth,” he said.

When it comes to investing, Astaburuaga emphasized that the agriculture sector is a stable industry that can weather different types of crises, offering investors more reliable returns in the medium and long term. Chile provides a vibrant and growing ecosystem with robust government support, a diversified agricultural base, and an innovative business community.

“Compared to other markets in Latin America, Chilean agriculture companies are willing to invest in innovation, with tangible success cases demonstrating the benefits of doing so. Chilean agrotech companies have major growth potential and offer exciting investment opportunities in a constantly evolving market,” he concluded.

Source: InvestChile

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