“Precision agriculture” and the incorporation of advanced technology offer significant investment opportunities in a country like Chile, which exported more than US$23 billion in food in 2024. In this expert blog, we will tell you more.
The introduction of precision agriculture in the 1980s profoundly revolutionized agricultural production worldwide. In its early days, it harnessed technology like remote sensing, geographic information systems (GIS) and global positioning (GPS) for more detailed, accurate agricultural management.
Today, precision agriculture is an essential part of the Agriculture 4.0 technological evolution, which takes another leap and integrates robotics, automation, the Internet of Things (IoT), artificial intelligence (AI) and advanced big data platforms to drive significant improvements in production efficiency and agricultural decision-making.
The available technology ranges from using satellite images and drones for early pest detection to advanced predictive models that optimize water use, considerably reducing water consumption and making managing agricultural inputs more efficient.
Countries such as the United States, China, Canada, Australia and some European Union member states are leading the adoption of Agriculture 4.0, allocating significant resources for its development.
According to Cervicorn Consulting, the North American market totaled US$19.91 billion in 2023 and is estimated to reach about US$63.97 billion by 2033 thanks to advanced practices, high technology adoption rates and an emphasis on agricultural sustainability.
For its part, Germany has made Agriculture 4.0 a core strategy of its national agricultural policy, promoting advanced digital solutions and automation to modernize the sector.
What are the main types of technology used in Agriculture 4.0 applications?
- Smart sensors and big data: Sensors collect real-time data on soil conditions, moisture, nutrients, temperature and air quality. Agriculture 4.0 uses big data to process and analyze this information in order to optimize fertilizer, agrochemical and water use.
- Satellite monitoring and agricultural drones: Satellite images and drones make it possible to monitor large agricultural areas in real-time, facilitating the early detection of problems like pests, diseases or water stress, thus optimizing productivity and profitability.
- Agricultural automation and robotics: Using autonomous tractors and robots for specific activities like planting, pruning, weeding and harvesting fragile crops (e.g., blueberries and cherries) has increased productivity and cut operating costs.
- Predictive models and smart irrigation: AI-based irrigation systems automatically adjust the water each crop receives depending on climate and soil conditions, thereby reducing water consumption and maximizing yields.
Chile: an attractive market for foreign investment in agricultural technology
Chile is renowned as a food exporter to the world. According to Central Bank data, 2024 food exports exceeded US$23 billion, 9% higher than the previous year.
This strong performance and a dynamic agribusiness technology (Agtech) innovation ecosystem create an ideal environment for adopting and investing in Agriculture 4.0.
Factors that make Chile a strategic destination:
- Geographic and territorial diversity: Chile’s geographic and territorial diversity allows for testing and scaling digital solutions in various conditions, making the country a unique experimental platform for agricultural production.
- Highly technological agrifood sector: The sector, focused on efficiency and international competitiveness, is open to adopting advanced technology.
- Extensive network of trade agreements: Chile’s 34 trade agreements and consequent access to 65 economies facilitate exports with high international standards.
- Institutional support: Public financing and innovation programs, including those offered by the Chilean State Development Corporation (CORFO), Foundation for Agricultural Innovation (FIA) and Agriculture Ministry, promote sector modernization and competitiveness.
- High digital connectivity: The most extensive fiber optic capacity in Latin America and a robust 5G network facilitate the implementation of advanced technology.
- Regional digital hub: Chile’s world-class data center infrastructure for data storage and processing offers benefits in terms of low latency.
- Access to tech talent: According to CBRE Research (2024), Santiago’s 135,601 IT experts make it the city with the third-highest concentration of IT professionals in Latin America.
These advantages and public-private initiatives to strengthen Chile’s position as a global food supplier with sustainable production systems make the country a strategic destination for technology companies and foreign investors interested in developing and scaling digital technology in Chilean agriculture.
Chile’s Foreign Investment Promotion Agency, InvestChile, offers comprehensive, strategic support to foreign investors interested in exploring and developing digital technology in Chilean agribusiness.
Interested in investing in Agriculture 4.0 in Chile?
To learn more about investment opportunities in Chile, check out our website or contact us to be part of developing more efficient, sustainable agribusiness.
