However, the region is also home to a wealth of potential solutions that when implemented can reduce food waste along the supply chain. We divide these solutions into four main verticals: upcycling; preventing waste; increasing shelf life; and avoiding waste.

Around Latin America and the Caribbean, startups are using technology to develop food waste solutions that fall into one or more of these categories.

The numbers: food loss and waste in Latin America

Latin America is home to more than 650 million people and is rich in both natural resources and food. But as mentioned above, the region wastes about 15% of its food annually, and the Pan American Health Organization estimates that hunger will impact 67 million people in the region by 2030.

The main causes of food waste in Latin America are overproduction, inadequate storage and transportation systems, lack of education and awareness, and inefficient distribution networks. According to FAO sources, the total losses and waste in the region occur at every stage of the food chain: 27% in production; 22% during handling and storage; 6% at the processing level; 17% in marketing and distribution; and 28% at the consumer level.

Worldwide, approximately 1.3 billion tonnes of food is lost or wasted each year, including about 45% of all fruit and vegetables, 35% of fish and seafood, 30% of cereals, 20% of dairy products, and 20% of meat. All of this translates to about $940 billion of economic losses annually.

The losses are even greater when we consider the amount of scarce resources such as land, water, and energy used to produce food. Agriculture accounts for over a third of global land area and over 70% of freshwater withdrawals. Food waste is also responsible for 8% of global greenhouse gas emissions, deforestation, and soil degradation, and also exacerbates food insecurity and poverty in many parts of the world, including Latam.

Innovative food waste solutions in Latin America

There are many potential solutions that can be implemented to reduce food waste along the supply chain in four main verticals:

Upcycling

Upcycling is the process of repurposing food waste or by-products into new and valuable items. There are several upcycling approaches companies can use with food waste materials, including:

Examples of companies tackling this challenge in Latin America: Geo Biogas, Auma Energia and Fotortec.

Preventing waste

Food companies that generate better planning and quality controls tend to waste less. Some technology gaining momentum can be seen below:

Examples of companies tackling this challenge in Latin America: Clicampo, ZoomAgri, Suflex, Aravita, Ucrop.It, Ecotrace and Agtrace.

Increasing shelf life

This approach can reduce food waste at the consumption stage by allowing perishable foods to last longer. There are several technologies that can be used to increase the shelf life of food products, including:

Examples of companies tackling this challenge in Latin America: Polynatural, Save Fruit, Nanox, Bio Natural Solutions and BeeTechnology.

Avoiding Waste

Avoiding waste means repurposing products that would normally go to waste into sales or donations. Some initiatives include:

Examples of companies tackling this challenge in Latin America: Food to Save, B4Waste, Cheaf, GoodMeal, Perfekto, Mercado Diferente, Gooxy and Infineat.

Argentina-based ZoomAgri is another interesting example. It has digitized the food inspection process for grain, leading to improved real-time controls over this commodity. Being able to quickly diagnose the states of grains allows companies to quickly decide when to distribute grain to avoid spoilage and when to keep storing it.

A ‘multifaceted challenge’

In Latin America as in the rest of the world, reducing food loss and waste is a complex and multifaceted challenge. It is also a growing issue in the food and beverage industry. As sustainability becomes more of a priority for CPG companies and consumers, many businesses are looking for ways to reduce their waste. However, CPGs alone will not be able to change the full picture. It is necessary to work across sectors, to significantly reduce the amount of food that goes to waste and create a more sustainable and equitable food system.

The challenges of combating food waste in Latin America demands coordination and solutions from a wide range of stakeholders, such as entrepreneurs, governments, CPGs, investors and consumers. We see a fertile investment market for the future within the ag and food sectors and we will continue to nurture the local ecosystem towards this goal.

Alexandre Stephan (post: Agfunder)

Alexandre Stephan is a partner at SP Ventures, an early-stage fund investing in agrifoodtech across Latin America.

In this context, we find ourselves with a sector that in our opinion will be a major player in the solution but is often seen as part of the problem: agribusiness.

Contrary to what many think, agribusiness has evolved a lot in recent decades, and this evolution has accelerated with the collaboration of agrifoodtech.

Through agrifood innovation, six major trends are repositioning the sector and unlocking its game-changing potential: on-farm technology, bio-alternatives, access to credit, more efficient supply chains, avoiding food waste and the increase of carbon markets.

Technology in the field

Historically the agrifood chain has already been replete with technological innovations that have improved the lives of farmers, increased productivity and elevated management to a new level.

The management systems themselves are a clear example of how technology is already present in the sector. Through SaaS models, these systems have been gaining more and more relevance and expanding their presence in the operation of small and medium-sized farmers, which allows them to be more efficient, reduce waste and increase their productivity. Startups that offer management technologies already represent more than 24% of agritech in Brazil that operate “on the farm,” with the highest adoption rates by farmers.

However, the Saas model goes beyond management systems. Agritech offers a set of services and tools that allow the producer to optimize routes during harvest, implement precision agriculture and even have access to remote soil analysis. Through these and other new technologies, increased productivity is achieved without the need for new land. It is accompanied by a reduction in the use of inputs, resulting in a more sustainable agriculture with lower emissions.

Examples of companies tackling this challenge in our portfolio: Aegro, Verge and Leaf.

Bio-alternatives

Along with reducing the use of inputs (fertilizers, chemicals) and increasing efficiency, alternative inputs appear. In an era where we seek productivity in parallel with conserving soil, water and biodiversity, biological inputs are gaining momentum. In 2021, according to Radar Agritech 2022, this category raised $ 2.6 billion, an increase of more than 30% in the volume invested over the previous year.

Biopesticides have been an innovative and effective solution to combat pests for small, medium and large farmers as a way to reduce chemical products. By replacing chemicals, even partially, the sector reduces significantly its potential negative impacts, eliminating the risk of soil and water contamination and often contributing to climate resilience.

Along with biologics that act as alternatives, the sector has seen the raise of complementary solutions, such as microbes. Innovation in this area may be key to restoring degraded areas (making production possible where it was not possible), as well as in adapting to climate change and increasing the resilience of food production in the coming decades.

Examples of companies tackling this challenge in our portfolio: Gênica, Decoy and PunaBio.

Access to credit

There is no point in having technology and alternatives if the farmer is unable to access them. Agrifintech has played a relevant role in the transition of the sector. The empowerment of small and medium-sized farmers allows not only greater professionalization and greater governance in the chain, but also the long-awaited increase in productivity and reduction of the carbon footprint.

The reduction of bureaucracy, the increase in speed and the inclusion provided by agrifintech have placed small and medium-sized farmers, so present in the Brazilian reality, closer to the big players in the sector. Agribusiness is intensive in working capital and activities should become more uncertain with the intensification of adverse weather events. The use of technologies combined with new business models is essential to finance agriculture that is resilient to climate change.

Reaching new levels of efficiency and productivity using technology, alternative inputs and greater intelligence in the field is essential to meet future demands and ensure a more sustainable agribusiness.

By implementing these best practices in the field and aligning them with ESG criteria, we achieve greater transparency and traceability of the chain and greater resilience of the sector. This new scenario with reduced risks enables most affordable credits for the farmers, feeding back a cycle of responsible evolution.

Examples of companies tackling this challenge: Agrolend, Traive and Verqor.

More efficient supply chains

In addition to innovations in the field and in the life of the farmers, the evolution of the sector expands throughout its chain. The search for efficient and shorter chains has intensified over the last few years and the appearance of solutions that connect the farmer with the final consumer has been key in this process.

The reduction and even elimination of intermediaries allows greater traceability of the products, in addition to reducing logistical costs and waste throughout the chain. As a result of this new way of operating, the final consumer has access to higher quality, more accessible products with a lower carbon footprint.

Along with the various advantages for the consumer, the reduction of links in the chain also contributes to a fairer remuneration for the farmer (fair supply), empowering him as well.

Examples of companies tackling this challenge: Agrofy, E-Rural and ZoomAgri.

Food waste avoidance

Going one step further in the chain, we need to take a deeper look at the issue of food waste. It is useless to produce more, reducing the carbon footprint of these foods and not enabling them to reach their destination.

We are currently in a reality where 30% of all food produced in the world is wasted. In addition to this problem going directly against the challenge of feeding an growing population, it still has a significant impact on fight against climate change, given that all this food waste leads to emissions in landfills and dumps.

Looking for solutions, foodtech companies have gained strength, not only disintermediating chains and collaborating with their efficiency, but also contributing technology as a partner in food management.

Examples of companies tackling this challenge: Frizata and Clicampo.

Carbon markets

Along with actions to reduce emissions, companies and farmers rely on a new market that has been gaining more and more strength: the carbon market.

Carbon credits, currently much discussed, are an important part of the solution to combat climate change. Through preservation, conservation, reforestation, carbon capture and even by efficiency of processes, it is possible to reduce concentrations of greenhouse gas and collaborate with the goals established by the Paris agreement.

However, it is important to remember that this market alone is not the solution. To fight climate change, we need to work with a set of actions, including climate change mitigation through emission reduction, process efficiency and investment in new ways of producing. In addition, the constant search for best practices and the focus on resilience and climate adaptation are essential.

Examples of companies tackling this challenge: Moss and GoFlux.

Different ways of contribution in the fight against climate change

The trends described above contribute to the fight against climate change in three different ways:

SP Ventures, in its most recent fund, AGVII, has a portfolio of agri companies that play an important role in against climate change. The image below illustrates the capillarity of impact of this portfolio and highlights the potential of startups in the face of current challenges.

SP Ventures Portfolio acting in the main verticals follow by the fund

Conclusion

These are some of the market solutions that have gained strength in the current context and that have positioned agrifoodtech as protagonists in the transition towards low-carbon agribusiness and a more efficient food chain.

However, the challenges of combating climate change and the increasing demand for food are far from resolved. We see a very fertile market for the future, especially within the ag and food sectors, but to ensure a positive impact and to move towards solving these challenges, it is necessary to evolve in the way of identifying, measuring, and monitoring the impact, providing transparency to the market.

The new report from S&P Global Sustainable brings data showing that less than 10% of climate funds are aligned with the global decarbonization goals, which emphasizes the need for consistent, comparable, and transparent methodologies with the market:

Given the relevance of startups on this journey, VC investors and funds play an important role not only in selecting their investments aligned towards these goals, but also in being part of this evolution, working with their portfolios to develop measurement methodologies and ensuring the quality and veracity of the data. This partnership is essential for the market and for the development of these solutions and those to come.

Ariadne Caballero and Juliana De Podestá (post: Agfunder)

Ariadne Caballero is a partner at SP Ventures, an early-stage fund investing in agrifoodtech across Latin America. Juliana De Podesta is head of ESG & Impact at SP Ventures.

In the realm of agriculture, this evolution has been particularly transformative. This article embarks on a journey through the agricultural eras of technological development, from the relentless manual labor of yesteryears to the cutting-edge artificial intelligence (AI)-driven practices of today. Join us as we explore how these technological advancements have shaped the past, present, and future of farming, optimizing processes, enhancing efficiency, and securing a more sustainable food future for humanity.

Farming prior to the second agricultural revolution

In the eras preceding the second agricultural revolution, farming was a Herculean challenge that demanded strength, resilience, and a significant dose of hope. Farmers faced the relentless majesty of the sun, submitting to unending physical exertion that encompassed numerous manual tasks. Each action, as listed below, called for tireless dedication:

In the illustration below, we have a depiction of how harvesting was done during the Neolithic period.

Harvesting in the Neolithic period. Image credit: Wikimedia Commons

Each callus on the hand told the story of spilled sweat, honorable effort, and weather-resistant determination. The limited access to information and data wove a web of uncertainties around the farmers, who mostly relied on their personal observations and the wisdom passed down by the elders of the farming community.

The absence of real-time insights and weather forecasts left plans at the mercy of unpredictable nature. Storms, excessive heat, or sudden outbreaks of diseases could annihilate months of hard work, throwing the farmers into a game of uncertain chance.

In response to these challenges and with the aim of alleviating the burden on the workers, various technological advancements and innovations emerged in the 19 th , 20th and 21 st centuries to assist farmers and enhance agricultural practices.

Farming in the 20th and 21st centuries: the evolution of technology

From the second agricultural revolution in the mid-20th century to the contemporary embrace of artificial intelligence (AI), the agricultural narrative unfolds as a remarkable testament to human perseverance and adaptability. In an era marked by burgeoning global populations, visionary farmers embarked on a journey of innovation to satiate the ever-growing demand for sustenance.

This journey yielded a host of innovative technologies, some of which include:

During the past 7 years, I have viewed the venture capital industry as an opportunity for creation, opening new markets, and reinventing businesses. After navigating the region for several years, I met the SP Ventures´ team and identified the following highlights: a passion for impact investing, depth of analysis of their investments, and a collaborative spirit. Today, I recognize that they are the most experienced agribusiness fund in LATAM.

I decided to join the team’s vision because SP Ventures sees beyond any financial return. They are committed to investing in the most innovative startups that are truly revolutionizing the economy around agriculture as we have known it traditionally. Through their investing they  are generating a positive impact on technological transition, adapting to risks such as climate change, and striving to ensure food security in Latin America.

I was inspired to learn that the investments made over the past 10 years are now the most relevant success stories in the region. Knowing that Brazil has made significant advancements over the last 40 years, transforming its food deficit into a surplus. Pioneering new agricultural techniques, and becoming a major reference in terms of adaptation. I see the potential to replicate this success with my integration into the team for Mexico and the rest of Spanish-speaking Latin America.

I decided to take this leap because I am convinced that LATAM is a very prosperous region and that by being able to invest in the biologicals, food security and climatech, we can achieve to have a more productive region. 

How do you view the opportunities in Agfood and climatech in LATAM? 

Human activity began altering the climate in the mid-19th century when the Industrial Revolution started releasing unprecedented amounts of carbon into the atmosphere. SP Ventures is working to mitigate some of the ensuing catastrophic climate change by investing in biologicals, food security, and sustainability startups capable of reducing carbon emissions in the region.

LATAM is one of the few regions left in the world with significant and unexplored agricultural territory. According to the world bank, agricultural and food exports from the region represent 16% of the world’s total. Considering food imports, net foreign sales are 4%, and are projected to increase to 19% between 2018-2020 and 2030.

We face several challenges:

The market is fragmented among large, medium, and small farmers. Latin America’s agricultural sector is unique because small farmers play a crucial role. The mix of small and large-scale farming varies greatly between countries, resulting in disparities in capacity, sophistication, and contribution to economic production. Currently, 50% of total production comes from 14 million small farmers, while large-scale farms play a vital role in Argentina, Brazil, and Uruguay. Other countries like Colombia, Mexico, and Nicaragua also contribute significantly.

The opportunity we are building aims to streamline cultivation processes, provide access to sophisticated and more competitive markets, and offer greater access to financial services. This will help small and medium-sized farmers in the region increase their crop productivity with more sustainable and environmentally friendly methods.

The region is privileged by its extensive territory, and it is crucial how venture capital funds allocate resources to meet the growing food demand while seeking to reduce the negative impact on the environment. 

In your opinion, how is the ecosystem of agfoodtech and climatech in countries other than Brazil?

Brazil is a country that has proven to be resilient and progressive. Today, it serves as a clear example that with capital, cooperation among farmers, public institutions,  private companies , economic cooperation agencies, education, and technological development, it is possible to transform a country’s economic activity.

Today, Spanish-speaking Latin America represents a growing opportunity for innovation, access to new technologies, financial services, and more sustainable practices in all economic activities of the primary and secondary sectors. Due to its geographical location, altitude variation, and proximity to the tropics, the region offers a significant opportunity to continue innovating and contributing to global food security.

For Mexico, nearshoring presents an increasing opportunity to continue supplying the international demand for horticultural products, cereals, and tropical crops. Prominent Mexican industries are globally recognized, and it is essential to keep investing in new alternatives and innovative foods, as well as more efficient production processes with lower carbon footprints. Another major challenge for the region is increasing access to financial services and contributing to the Sustainable Development Goals (SDGs).** 

Do you have a personal quote that guides your life?

A true leader acts with integrity, leads with compassion, and stays humble. Let these principles guide your decisions and inspire your team every day.

Do you have any hobbies that bring you joy?

I enjoy living life to the fullest. Since I was very young, I started running, and it remains one of my favorite activities today. I enjoy running marathons and triathlons, and I am currently preparing for an upcoming Ironman and an ultramarathon.  I enjoy scuba diving and getting to admire our natural resources. 

I find joy in the small and simple things that nature offers. I love taking advantage of the mornings to run and enjoy a sunrise, admire a sunset, and, above all, marvel at a starry sky.*

Interview conducted with Vaness Bello

Vanessa Belo is a Principal at SP Ventures, São Paulo, Brazil.

My passion for the ag & food sectors is deeply rooted in my personal and professional background. Coming from a family that has been involved in agriculture for generations, particularly my grandfather who is a rural producer, I have always been close to the land and the agricultural community. This lifelong connection with the ag sector naturally led me to focus my career in this field. Professionally, my journey began with a consultancy dedicated entirely to the agriculture sector (Markestrat), where I gained invaluable insights and experience. This path ultimately brought me to SP Ventures, where I can merge my personal passion with professional expertise to invest in and support innovative startups across the entire agribusiness value chain in Latin America.

How do you view the opportunities in agriculture technology companies to transform the sector?

I see tremendous potential in Ag & Food Tech Space to revolutionize the sector. The integration of advanced technologies can address some of the most pressing challenges in agriculture, such as sustainability, productivity, and efficiency. Innovations in areas like precision farming, biotechnology, Ag Fintechs, supply chain optimization, and digital farming platforms can significantly enhance crop yields, reduce environmental impact, and improve the overall profitability of farming operations. These technologies also empower farmers with data-driven insights and tools to make better-informed decisions, ultimately transforming traditional agricultural practices into more modern, efficient, and sustainable operations.

In your opinion, what is the most important factor for an early-stage startup to achieve success?

In my opinion, the principal factor an early-stage startup needs to achieve success is the strength of its team. I firmly believe that having a dedicated, skilled, and passionate team is crucial because we need to be 100% confident that this team will be capable of realizing the ambitious vision they aspire to achieve. The right team can navigate challenges, pivot when necessary, and drive the company forward with relentless determination and innovative thinking. Without a strong team, even the best ideas can falter, but with the right people, almost any challenge can be overcome.

Do you have a personal quote that guides your life?

“Passion drives purpose, and purpose drives success.” This motto reflects my belief that being deeply passionate about what you do leads to a strong sense of purpose, which in turn drives you towards achieving success.

Do you have any hobbies that bring you joy?

Yes, I have several hobbies that bring me immense joy. I love spending time in the countryside, which keeps me connected to my roots and the agricultural world. Additionally, I enjoy outdoor activities like hiking and fishing, which allow me to appreciate nature and the environment I’m so passionate about.

Interview conducted with Pedro Jábali

Pedro Jábali is an Analyst at SP Ventures, São Paulo, Brazil.

Since the decision of which undergraduate course to pursue to the choice of the places I’ve worked, I have always made very intentional decisions based on what matters most to me. Due to everything I experienced in my childhood, one of my main life goals is to make an impact on the lives of thousands of people. I see entrepreneurship and the agri-food sector as a means to achieve this goal. I believe we are facing a delicate situation regarding food security, and as the population continues to grow, we need to find ways to increase productivity in food production. I believe that agfoodtechs play, and will increasingly play, a crucial role in this regard. Furthermore, we cannot deny the contribution that the agricultural sector, especially in Latin America, makes in combating climate change, which I also consider to be a very important cause that will impact the lives of thousands of people.

What is your perspective on professional development opportunities through agribusiness education?

I believe that the agribusiness education market is highly promising and is poised for even further growth in the coming years. This is primarily due to the current shortage of qualified professionals in the market, a lack of technical and behavioral skills, and the challenges that companies face when expanding their teams. Looking ahead, we anticipate a significant number of job opportunities emerging, but at the same time, there remains a shortage of qualified professionals to fill these positions. Additionally, we are witnessing a growing demand for continued education courses among agronomists who seek to enhance their knowledge after graduating.

How do the companies in SP Ventures’ portfolio assist professionals in the agricultural sector in their development?

To seize this opportunity, we’ve invested in Agroadvance. This company is offering a variety of course models designed to serve both corporations (B2B) and individual consumers (B2C).

We believe that Agroadvance has been doing an excellent job in assembling a team of highly qualified professionals who have developed products that are capturing a diverse market segment, ranging from agronomists to the emerging generation of agribusiness industry managers. The growth in their course sales has been nothing short of surprising to us.

Do you have a personal quote that guides your life?

I have a quote that I rely on for many of the decisions I need to make, both in my professional and personal life: ‘You are the average of the five people you spend the most time with.

Do you have any hobbies that bring you joy?

For me, it’s running and reading. I’ve been dedicated to both for years, and I can honestly say they’re like therapy to me. I also value my sessions with a psychologist, which I practice and highly recommend.

Interview conducted with Rebecca Aguiar

Rebecca Aguiar is an Associate at SP Ventures, São Paulo, Brazil.

Growing up in a city surrounded by agribusiness and having a family deeply involved in the sector, I’ve always had exposure to it. However, my genuine interest in understanding and delving deeper into this field only emerged during college when I joined a student league focused on studying and developing projects with agribusiness companies. Since then, I’ve discovered my enthusiasm for agro and how to enhance it in various ways: farm management, productivity, input distribution, credit access, traceability, industry processes, and all the other existing procedures, especially those currently being developed!

2. How do you view the AI revolution in the Agtech sector?

AI’s potential applications are poised to offer farmers tools that can optimize resource utilization, increase productivity, and mitigate vulnerabilities associated with climate change and pests. This wave of AI-powered technologies will significantly impact small-scale farmers, streamlining their daily tasks and expanding their access to credit. As a result, this will instigate a transformation in supply chain logistics efficiency, ensuring food product traceability and safety. With AI’s continuous evolution alongside advancements in robotics and data analytics, it will mark the dawn of a fresh agricultural era. This era will address global food security challenges while also mitigating environmental consequences and ensuring equitable access to agricultural innovations.

3. Can you explain the companies in SP Ventures’ portfolio that utilize AI in their models?

SP Ventures has companies in its portfolio that incorporate AI into their business models, including Zoomagri and Traive.

The first one is a hardware-operated system that employs computer vision and machine learning, utilizing AI as a core component to revolutionize the agricultural supply chain by analyzing the quality and varieties of crops such as barley, wheat, soy, and corn.

Traive, on the other hand, is an AI-based risk analysis platform that aids decision-making in selecting the best partners and strategies for the credit application process. Both of these companies are striving to transform agribusiness reality into something simpler, more accurate, and productive.

4. Do you have a personal quote that you live by?

My favorite quote is, in my opinion, both simple and intricate:”We are the results of our own contradictions.”

5. Are there any hobbies that make you feel good?

To make the most of my free time, I genuinely enjoy hanging out with my friends, going for a run on a beautiful day, or indulging in a movie session with my family.

Interview conducted with Ana Soffiatti

Ana Soffiatti is Analyst at SP Ventures, São Paulo, Brazil.

In 2022, Latin America’s agrifoodtech startups managed to raise $1.7 billion, which represented a 39% decrease compared to the record-breaking funding of 2021, both within the region and globally. This investment pullback was observed worldwide in 2022. Since 2018, the total funding secured by agrifoodtech startups in the Latin American region has reached an impressive $7.3 billion.

There were categories of agrifoodtech where funding increases bucked the global decline, particularly those focused on bringing farmers and retailers online in an increasing digitization of the region’s food and agriculture industries.

Agribusiness Marketplaces & FinTech startups raised $191 million in 2022, up 73% on 2021; In-store Restaurant & Retail Tech experienced the biggest jump in funding activity, reaching nearly $70 million, a 171% jump compared to 2021; and Conservation/Carbon Tech was a newly-created category that’s notable for four large deals helping the region to protect its rainforests.

For more information, download the report here.

The Latin America AgriFood Tech Investment report was done in partnership with AgFunder, Alianza Team, BASF, and Cibersons.

I never intended to specialize in agriculture. I always believed my true calling was in the financial sector. But a small experience before graduating changed everything. I started working at an SME incubator, and I was thrown by chance in the ag sector. I had the opportunity to work with dairy cooperatives, cactus growers, cacao growers, and I just loved it! I even assisted Carrefour in selecting their first organic product in Mexico—enters cactus, of course!

Seeing firsthand the extent of the problems in the food supply chain was a real eye-opening experience. And It really bothered me that those responsible for growing our food were sometimes on the wrong side of the story.

So, a few years later after working in capital markets, I switched industries with the goal of driving some kind of change from within. Today, I have the chance to combine my passion for agriculture and VC… hopefully making a positive impact.

2. How do you view Climate Ag Tech Investing?

Investing in Climate Ag Tech is crucial for addressing climate change. And the agricultural system, as one of the main contributors, is full of flaws and inefficiencies that need to be addressed.

So By investing in sustainable practices and efficiencies along the full value chain, we can tackle these challenges directly. It improves agricultural productivity and promotes eco-friendly practices.

I see Climate Ag investing as a win-win-win. It supports sustainable agriculture, brings better economic returns, and has a huge impact on communities. This is great news for investors, as it creates a healthier value chain and great financial returns.

3. How does MOSS approach the climate industry?

Companies globally strive for zero carbon emissions. MOSS addresses uncertainties in the unregulated sector using technology to bring clarity and bridge gaps. They are creating a more fair and transparent carbon credit system. MOSS is an important piece of a more responsible approach to carbon mitigation, specially with all the challenges that the industry is facing now.

4. What readings do you recommend to understand more about the climate industry?

I loved “Windfall: The Booming Business of Global Warming” by Mckenzie Funk. It takes a look at greenwashing and the economic aspects of climate change. I think is important for entrepreneurs, companies and investors to be aware and learn to separate real from story telling.

Also, I loved the documentary “The Year Earth Changed,” it is very interesting to watch the environmental benefits during the global lockdown. It really makes you think about our power to change things.

5. A quote that you live by.

I’m not much for quotes, but I appreciate the simplicity of physics: “Every action has an equal and opposite reaction.” It reminds me to work hard, enjoy the journey, and treat others with respect. Oh! And my grandmother always tells me “slow down that you need to go fast” … something about Napoleon.. but I always remember this when I have something important to tackle.

Interview conducted with Ariadne Caballero

Ariadne Caballero is Partner at SP Ventures, São Paulo, Brazil.

“The combination of two major factors motivated me to follow this path, the power of Brazilian agribusiness (around 25% of Brazil’s GDP) combined with the potential to create a more efficient and sustainable supply chain. Although I had previously been exposed to the sector in my career, my 100% focus on this industry began in 2013, shortly after returning from my MBA abroad when I started working at a private equity fund focused exclusively on this segment (Aqua Capital).”

2. How do you view the food waste thesis?

Food waste thesis refers to the argument that the current level of food waste in our society is unacceptable and that we need to take steps to reduce it. This thesis is supported by evidence that shows a significant amount of food is wasted every year, both at the production and consumption stages, while millions of people worldwide suffer from hunger and malnutrition. To address the issue of food waste, there are various strategies, such as reducing food waste at the source, improving food distribution systems, and promoting more sustainable consumption patterns. Reducing food waste can benefit society by improving food security, reducing environmental impacts, and saving resources.

3. What readings do you recommend for those who want to understand more about the thesis?

I would start with the brilliant book from Tristam Stuart, called “Waste: Uncovering the Global Food Scandal”.

The book explores the issue of food waste and its impact on society, the environment, and the global economy. It discusses the root causes of food waste, including cultural attitudes towards food, the industrialization of food production, and inefficient distribution systems. Stuart also highlights the environmental impact of food waste, including the greenhouse gases produced by decomposing food in landfills. In addition, it explores the economic and social implications of food waste. Stuart argues that reducing food waste can help alleviate poverty and hunger, reduce the strain on natural resources, and create new business opportunities. Last but not least, Stuart presents several solutions to the problem of food waste, including changing cultural attitudes towards food, improving distribution systems, and implementing better food waste management practices. He also highlights the role of individuals, businesses, and governments in addressing the issue of food waste.

4. How does Arado approach the issue of food waste?

Arado tackles one of the toughest operational pain points in agribusiness: the specialty crop supply chain. By connecting small & medium growers with restaurants and retailers, Arado drives food systems towards greater efficiency and climate resiliency. They transform small landholder farming, traditionally the most vulnerable and exposed activity in agriculture, into a more profitable and less risky business. Arado has been investing heavily in technology (proprietary WMS, OMS, Pricing and Demand Predicting algorithms, Fulfillment-as-a-Service platform, integration of OpenAI/ChatGPT features for customer service and conversational commerce, automation of product lists and checkout, among many other innovations) and in a unique business model to streamline and disrupt the $20B USD Fresh Food market in Brazil.

5. A quote that you live by.

Success is 10% inspiration and 90% perspiration – Thomas Edison

Interview conducted with Alexandre Stephan

Alexandre Stephan is Partner at SP Ventures, São Paulo, Brazil.