“You never learn everything you need to know” - Alicia Alonso (Cuban prima ballerina)

MARKETS

August 1, End Of Day

• Argentina
  • S&P MERVAL Index = 1,500,216.56 (YTD = 61.36%)
• Brazil
  • BOVESPA Index = 127,395.10 (YTD = -5.06%)
• Chile
  • S&P IPSA Chile = 3,479.53 (YTD = 0.35%)
• Colombia
  • MSCI COLCAP = 1,341.77 (YTD = 12.26%)
• Mexico
  • IPC Mexico BMV = 52,417.48 (YTD = -8.66%)
• Peru
  • S&P/BVL Peru = 29,037.97 (YTD = 11.86%)

BUSINESS

Farming the Future - Bioinputs in Latin America

The LatAm bioinputs market is rapidly growing, driven by environmental and economic benefits. Bioinputs, derived from natural sources like plants, animals, and microorganisms, improve crop productivity, quality, and health. They reduce reliance on chemical inputs, promoting biodiversity, enhancing soil health, and increasing agricultural resilience, essential for sustainable farming practices.

The FAO views bioinputs as a prime investment opportunity by analyzing their development, adoption, and impact on sustainable agriculture. Here are the key points from the report on FAO's analysis of bioinputs as an investment in LatiAm:

Market Overview

• Market Growth: The bioinputs market in LatAm has seen a significant increase in sales from 2017 to 2021. In 2021, biopesticides sales reached USD 683 million, while biostimulants and biofertilizers sales were USD 418 million. This growth indicates a rising adoption of sustainable agricultural practices in the region.
• Sales Distribution: The sales value of bioinputs in LatAm has consistently increased from 2017 to 2021. Biopesticides dominate the market, accounting for about 62% of the total bioinputs sales.

Adoption and Usage

• Motivations for Adoption: The primary motivations for adopting bioinputs among LatAm farmers include preserving soil fertility, promoting environmentally friendly production methods, and reducing production costs. Approximately 79.5% of adopters highlighted soil fertility preservation as a critical reason, while 65.8% aimed for environmentally friendly production.
• Crops Treated: Bioinputs are used extensively on various crops. For instance, in Brazil, bioinputs are predominantly applied to soybeans, maize, and sugar cane. The use of biopesticides is more common in fruit and vegetable crops, aligning with the global trend where these crops have stricter residue requirements.

Country-Specific Insights

• Brazil: Brazil is a leading country in the region for bioinputs, with a significant number of registered products and companies. In the 2021–2022 season, 28% of the soybean area was treated with bioinputs. Brazil's market for biopesticides grew annually by 42% between 2019 and 2020, outpacing the global average.
• Argentina: Argentina has registered 60 bioinputs for pest control and over 1,000 bioinputs for fertilization, with 283 companies holding valid registrations. The primary crops treated with biofertilizers include soybeans, wheat, maize, peanuts, clover, and alfalfa.
• Colombia and Costa Rica: Colombia has 375 registered bioinputs, applied to 94 different crops. Costa Rica has registered 217 biostimulants, 47 botanical pesticides, and 47 microbiological pesticides.

Challenges and Opportunities

• Challenges: Key challenges include the initial high costs, the need for technical expertise, and the variability in product quality. There is also a need for more information and understanding of bioinputs among farmers and suppliers.
• Opportunities: There are significant opportunities for growth in the bioinputs market in LatAm, especially in scaling up production and improving regulatory frameworks. Internationally funded projects and national initiatives are starting to focus more on bioinputs, providing technical assistance and support for their development and adoption.

Fundraising picks of the week

Copper3D: Utilizing antimicrobial nanotechnology, Copper3D aims to eliminate microorganisms from devices manufactured through additive processes. In 2024, the company expanded into two new international markets, India and the US, and is developing antimicrobial and recyclable materials for NASA. Get to know the case here.

Fiweex: Fiweex is revolutionizing business operations in LatAm by digitizing processes and leveraging data analytics to fuel growth. With a robust subscription base of over 2,500 businesses across Colombia, Chile, and Paraguay, Fiweex has established a strong MRR of $65,000.  Dive deeper into the case here.

Superfrutti: Superfrutti is connecting farmers with business owners through technology.  Superfrutti maintains an average margin of 17% and growing. They have served over 1000 customers and fulfilled more than 30,000 orders, all within Bogota.  Dive deeper into the case here.

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Dive deeper into other fundraising firms in LatAm here.

CURRENT AFFAIRS

Barbados: Barbados is set to launch a "debt-for-climate" swap, with the European Investment Bank (EIB) and Inter-American Development Bank (IDB) finalizing a $300 million guarantee. This will enable the island to issue $295 million in sustainability-linked debt. Savings will fund sewage treatment upgrades to boost water supplies and reduce pollution. Prime Minister Mia Mottley called it a "historic moment." The EIB's involvement is part of the EU's Global Gateway project.

Venezuela: Pressure mounts on President Nicolás Maduro after the National Electoral Council declared his victory with 51.2% of votes against Edmundo González's 44.2%. Delayed results, blamed on alleged sabotage, contradict pre-election polls favoring González. The US and EU questioned the results' legitimacy. Opposition leader María Corina Machado, barred from running, declared González the legitimate president-elect. Protests emerged in Caracas, with Maduro blaming the US for election interference and cyber attacks.

Brazil: Brazil has unveiled a $4 billion AI investment plan to develop sustainable and socially-oriented technologies, aiming for technological autonomy and competitiveness. The plan, spanning from 2024 to 2028, allocates most funds for business innovation and AI infrastructure, with the rest for training, public services, and regulatory support. President Luiz Inacio Lula da Silva emphasized the importance of developing homegrown AI technologies to create income and employment.

FURTHER READING

Check our recently published insights here. Recent post:

🧬 Biotech Latin America - Sustainable Future Outlook

Latin America is rapidly becoming a powerhouse in the biotechnology field, with countries like Brazil, Argentina, and Mexico leading advancements in agriculture, healthcare, and environmental sustainability.

Emerging Trends and Future Outlook:

1. 🔬 Increased R&D Investment: Anticipated surges in both public and private funding are set to propel advancements across the biotech spectrum.
2. 🤝 Collaboration and Partnerships: Strategic alliances across academia, industry, and government are accelerating innovation and speeding up biotech product commercialization.
3. 🌱 Focus on Eco-friendly Technologies: Emphasis on sustainability is steering the sector toward eco-friendly technologies, including biofuels and biodegradable materials.
4. ⚖️ Regulatory Reforms: Efforts to streamline regulatory frameworks will facilitate cross-border operations and foster a conducive environment for biotech development.

🔍 Read more here.