Smart agriculture, water resources management, food traceability, agroinformatics, and agricultural biotechnology are just some of the subsectors with the highest demand.
The Chilean market currently offers a range of opportunities for agritech companies, which are dedicated to combining digital and traditional tools to increase efficiency, productivity, and sustainability in agriculture. 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 which brings together Chilean agriculture companies—also highlighted the fact 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? The verticals with the highest demand in Chile’s agritech sector include smart agriculture, water resources management, food traceability, agroinformatics, and agricultural biotechnology, explained Astaburuaga.
“The agriculture industry is undergoing a process of major changes, which has required the use of more technologies and investment in innovation as a key factor in terms of competitiveness for producers and companies in the ecosystem. Companies that do not invest in technology and innovation rapidly become uncompetitive, given the demands of the agriculture market. This can be clearly seen in areas such as certifications, efficiency, and environmental requirements,” he said.
Initially, agritech companies in Chile focus on the local market to validate their products and services. Once they have consolidated their operations they expand to new markets, with the most frequent destinations including Peru, Colombia, and Mexico. According to Astaburuaga, the significant progress achieved by local agritech companies has positioned Chile as a regional leader, especially in terms of fruit production and water resources management.
“Many of our partner companies are seeking financing to drive growth, develop new products, or expand to new markets. A highly attractive alternative that has started to gain traction is corporate venture capitals (CVCs). This type of financing has proven effective to obtain a rapid product-market fit and drive significant initial sales growth,” he said.
When it comes to investing, Astaburuaga emphasized that the agriculture sector is a stable industry that is able to weather different types of crises, offering investors more reliable returns in the medium and long term. Chile offers 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 that demonstrate the benefits of doing so. Chilean agritech companies have major growth potential and offer exciting investment opportunities in a constantly evolving market,” he concluded.