The world is increasingly aware of sustainability and efficiency. The agricultural sector finds itself caught between tradition and innovation. Chile, a country with a rich agricultural history, emerges as a leader in adopting technologies to transform its agriculture. This movement, known as "Agrotech", redefines the cultivation, production, and distribution of food, with implications for food security, the environment, and the global economy. Agrotech Chile, the recently established trade association, of which Tierraverde is a part, is a clear example of this.
The rise of agrotechnology in Chile is set against a global backdrop where technology is reshaping industries. In agriculture, the impact extends beyond efficiency. It is an urgent response to challenges such as climate change, resource scarcity, and the need to feed a growing global population.
What Agrotech Means
Agrotech, or agrotechnology, encapsulates technological innovations applied to the agricultural sector. From drones monitoring crops to automated irrigation systems, agrotechnology fuses traditional agriculture with advanced tools. In Chile, this approach is being adopted at an accelerated pace, driven by the need to modernize a sector crucial to the national economy.
Agrotechnology offers benefits that transform agricultural practice. Resource savings are significant. In Chile, where water is limited, automated irrigation systems and moisture sensors allow for efficient use of this vital resource, reducing waste and contributing to agricultural sustainability.
Increased productivity is another key benefit. Technologies like drones and remote sensors enable precise monitoring of crops and livestock, facilitating timely interventions. In Chile's diverse geography, the ability to adapt agricultural practices to local conditions is crucial.
Improved decision-making is an aspect that has changed the game. The use of data analysis and artificial intelligence allows farmers to make informed decisions regarding crop and resource management, optimizing production and mitigating risks associated with market fluctuations and adverse weather conditions.
The reduction of environmental impact is another important benefit. Techniques such as precision agriculture minimize the use of pesticides and fertilizers, reducing pollution and promoting sustainable farming practices. In Chile, where climate change significantly impacts agricultural production, these innovations are key to maintaining competitiveness.
Agrotechnology enhances efficiency at every stage, benefiting producers, consumers, and the environment. In a world with growing food demand, these innovations are essential to ensuring a secure and sustainable supply.
Chile stands on the threshold of agriculture 4.0, with agrotechnology at its core. The adoption of these technologies will transform Chilean agriculture and position it as a model in Latin America and the world.
Global Agrotech Context
The history of agriculture is a narrative of continuous evolution, marked by technological advances that have transformed the way food is cultivated, harvested, and distributed. From manual plowing to the green revolution of the 20th century, each era has increased productivity and efficiency, also presenting new challenges.
In the current era, known as "Agriculture 4.0", digital technology is completely reshaping the agricultural landscape. This new chapter is characterized by the integration of advanced technologies like artificial intelligence, the Internet of Things (IoT), and big data, focused on optimizing every aspect of agricultural production. Agrotechnology is a necessity to face global challenges, from climate change to feeding a growing world population.
Globally, agriculture is an interdependent and globalized industry. Approximately 70% of a nation's food supplies come from foreign sources, underscoring the need for resilient and adaptable agricultural systems. This evolution has brought challenges such as the environmental impact of intensive agricultural practices, contributing to climate change and the degradation of natural resources.
Agriculture globally is amidst a profound transformation, driven by technology and the need for sustainability. Nations are seeking to balance agricultural production with environmental protection, and agrotechnology is presenting itself as the key to a more resilient and efficient agricultural future.
Chilean Agrotech Movement
The Chilean agricultural landscape is being transformed by an ecosystem of innovative companies driving the adoption of advanced technologies in agriculture. These organizations develop novel technological solutions and tackle specific challenges of the Chilean agricultural sector, such as water management and climate change adaptation. Recently, they have gathered around Agrotech Chile, a trade association created in 2023, which has over 98 member companies, 200 members of whom 39% trade internationally.
Kran, Wiseconn, Miido, and Agromach are vivid examples of successful agrotech companies that have skillfully combined these elements of innovation to transform the Chilean agricultural innovation ecosystem.
Tierraverde: Efficient Climate Control
Tierraverde is a Chilean company with over 30 years of experience, which started as a company dedicated to hydraulic engineering projects and the design of technical irrigation systems, but in recent years has specialized in climate control solutions for the agricultural sector. At Tierraverde, we focus on developing technologies for efficient use of water and energy resources, also adapting our solutions to the specific needs of each producer.
Our evolution towards an agrotech approach has been realized through the integration of data platforms and advanced technologies to address the challenges of climate change in agricultural production. This transformation allows us to offer more precise and efficient solutions to our clients.
Challenges of the Agrotech Industry in Chile
The agrotech sector in Chile faces challenges that could limit its growth and sustainability. These obstacles reflect the particularities of the Chilean agricultural environment and global tensions in implementing advanced technologies in traditional sectors.
Rural digital divide: Limited connectivity in rural areas hinders the implementation of advanced technological solutions, such as the Internet of Things (IoT) and cloud-based platforms.
Climate change: Prolonged droughts and adverse weather events impact agricultural production. Agrotechnology companies develop adaptive solutions, but the magnitude of the problem requires a coordinated response involving technology companies, government, and academic institutions.
Access to financing: Agrotech startups and small companies face difficulties in accessing venture capital and financing. Developing accessible financing mechanisms will be essential to drive innovation and ensure the sector's sustainability.
Technological adoption: Resistance to change among farmers, especially in small and medium-sized farms, is a challenge. Overcoming this barrier requires education, demonstration of benefits, and ongoing support in implementation.
Regulations and policies: The current regulatory framework may not be adapted to agrotech innovations, creating legal uncertainty. A flexible regulatory environment that responds to the emerging needs of the industry without stifling innovation is needed.
Shortage of specialized talent: Agrotechnology requires professionals with skills in agriculture, technology, and data science. Talent formation must be a priority, and educational institutions must adapt their programs to meet the demands of this industry.
Systems integration: The diversity of agrotech solutions can lead to interoperability issues. It is crucial to develop protocols and standards that allow efficient integration of available technologies.
Data security: Protecting agricultural data is crucial to prevent misuse or loss. Developing security protocols and ensuring farmers' privacy is fundamental to maintaining trust in agrotech technologies.
The agrotech sector in Chile faces significant but surmountable challenges. Collaboration between government, industry, and academic institutions, along with a focus on talent formation and the creation of common standards, will position Chile as a leader in agrotechnology. The country's ability to address these issues will determine the success of the agrotech sector and the future of its agriculture.
This is the first in a series of articles about the AgroTech industry in Chile, our region, and the world. To receive more information, join our newsletter.
