Brazil AgTech Report: Satellite Expansion, Rural Connectivity, Tarken Funding, Farm Credit Reinvented
#24 BAR Brief
In this week’s Brazil AgTech Report, the country`s Space Agency (AEB) is enhancing satellite technology for precision agriculture, while internet connectivity in rural areas has surged from 22% in 2015 to 74% in 2024, boosting communication and productivity. Additionally, Inmetro has partnered with Sollytch to use blockchain for tracking agricultural chemicals, enhancing transparency and compliance.
Meanwhile, in the agtech space, Solinftec is expanding across the region, opening a new facility in Mexico to produce agricultural robots. Tarken secured its second funding round to scale its grain financing platform, while Bom Futuro acquired 43,000 hectares in Mato Grosso for $330 million.
On the environmental front, re.green aims to restore 1 million hectares of native forests with $70 million in funding. FS plans to double corn ethanol’s share of Brazil’s market to 40% within four years, aided by biogas and carbon capture technologies.
Additionally, Paraná’s Fiagro initiative aims to leverage $360 million in rural credit, attracting investment from firms like Kinea and C-Vale and support from Agroforte, a Yield Lab Latam portfolio company . Brazil also retained its position as the world’s leading beef exporter, generating $12.8 billion in 2024.
AgTech
🚀 Brazil Space Agency Aims to Boost Satellite Use in Ag
🌐 Rural Connectivity Surges in Brazil
🔗 Inmetro and Sollytch to Enhance Ag Chemical Tracking
🤖 Solinftec Expands to Mexico with Manufacturing Facility
Climate
🌱 Re.green Targets 1 Million Hectares of Forest Restoration
🌍 Brazil's Ag Sector Drives Global Shift Towards Bioeconomy
🌽 FS Sees Corn Ethanol Capturing 40% of Market in 4 Years
Funding Round
💰 Tarken Secures Funding to Boost Ag Credit
M&A
🌾 Bom Futuro Acquires Two Proterra Farms in Mato Grosso
Misc
🇺🇸 U.S. Tariff Hikes: Pros and Cons for Brazil Ag
🚜 Parana State Reinventing Rural Credit
🥩 Brazil Leads Global Beef Exports; JBS Expands to Vietnam
💼 AgroGalaxy Advances in Debt Restructuring Negotiations
AgTech
🚀 Brazil Space Agency Aims to Boost Satellite Use in Ag
The Brazilian Space Agency (AEB) is spearheading initiatives to enhance satellite applications in the nation's agribusiness sector. By utilizing high-resolution satellite imagery, the goal is to detect soil anomalies, monitor pests and diseases, and improve land management practices. Feroz Sheikh of Syngenta highlights the importance of prioritizing satellite coverage over Brazil to drive agricultural transformation. The AEB is fostering collaboration between governmental bodies and private enterprises to secure funding and develop advanced technological solutions, aiming to bolster Brazil's agribusiness through space technology. read more
🌐 Rural Connectivity Surges in Brazil
Over the past decade, internet access in Brazil's rural areas has more than tripled, soaring from 22% of households in 2015 to 74% in 2024. This significant growth enhances communication and plays a crucial role in retaining younger generations in agriculture. Despite this progress, the 2017 Agricultural Census revealed a decline in rural youth aged 25 to 35, dropping from 13.5% in 2006 to 9.5% in 2017. Improved connectivity is vital for sustaining Brazil's agricultural competitiveness and supporting its substantial contribution to the national economy. read more
🔗 Inmetro and Sollytch to Enhance Ag Chemical Tracking
The National Institute of Metrology, Quality, and Technology (Inmetro) has collaborated with blockchain startup Sollytch to develop a digital platform aimed at monitoring chemical substances used in agriculture. This initiative seeks to provide real-time tracking of agricultural chemicals, ensuring transparency, authenticity, and data integrity. Leveraging blockchain technology, the platform will document each stage of the chemicals' lifecycle—from production to field application—thereby reducing fraud risks and aiding compliance with both national and international standards. read more
🤖 Solinftec Expands to Mexico with Manufacturing Facility
Brazilian agtech company Solinftec has inaugurated a new assembly and distribution facility in Ciudad Juárez, Mexico, to produce its agricultural robots, including the Solix model. This strategic move aims to enhance global logistics and better serve Latin American markets. Since 2017, Solinftec has raised R$1.3 billion ($250m), with the latest $50 million investment from YvY Capital in November 2024. The company also operates facilities in Shenzhen, China; Araçatuba, Brazil; and Indiana, USA. read more
Climate
🌱 Re.green Targets 1 Million Hectares of Forest Restoration
Founded in 2022 with R$380 million (US$80 million) from Gávea Investimentos, BW (Moreira Salles family office), Armínio Fraga, and Guilherme Leal, re.green aims to restore 1 million hectares in the Amazon and Atlantic Forest regions within 15 years. The company currently owns 28,000 hectares across Bahia, Maranhão, Pará, and Mato Grosso. Its strategy includes partnerships with farmers and public land concessions, with Agro Penido restoring 600 hectares in Querência, Mato Grosso. Microsoft has committed to purchasing 3.5 million carbon credits, supporting 33,000 hectares of restoration. read more
🌍 Brazil's Ag Sector Drives Global Shift Towards Bioeconomy
With the global population projected to reach 10 billion by 2050, ensuring food and energy security is paramount. Brazil stands at the forefront of this challenge, leveraging its agro-food, agro-energy, and natural product chains to facilitate the transition from a fossil-based economy to a green bioeconomy. Currently, the world produces approximately 10 billion tons of agricultural products annually, including 6 billion tons of food and 4 billion tons of non-food items like cellulose, cotton, and rubber. Brazil's tropical climate enhances photosynthesis efficiency, positioning the nation as a leader in agricultural production and biofuels. Investments in sustainable aviation fuel (SAF) production exemplify Brazil's commitment to innovative, eco-friendly solutions. read more
🌽 FS Sees Corn Ethanol Capturing 40% of Market in 4 Years
FS, a leading Brazilian corn ethanol producer, aims to increase its Carbon Credit (CBios) emissions by 25% in 2025, reaching 3 million CBios, up from 2.4 million in 2024. This represents approximately $45 million in revenue. The company anticipates corn-based ethanol will constitute 40% of Brazil's ethanol market within four years, doubling the current 20% share. FS attributes this growth to corn's competitiveness and plans to enhance carbon footprint reduction through investments in biogas, biomethane, and carbon capture technologies. read more
Funding Round
💰 Tarken Secures Funding to Boost Ag Credit
Brazilian agtech startup Tarken has successfully completed its second funding round, securing an undisclosed amount from investors Monashees, Mandi Ventures, and MAYA Capital. This follows their initial seed round in October 2021, where they raised $3.5 million to enhance their grain trading platform. The new capital infusion aims to bolster Tarken's cash reserves, support international expansion, and introduce new financial products to their platform. Founded by Luiz Tângari (ex-Strider founder) and Carlos Neto, Tarken focuses on financing grain sellers, utilizing AI tools for commodity pricing, and streamlining transactions to reduce the traditional 12-week process to just days. read more
M&A
🌾 Bom Futuro Acquires Two Proterra Farms in Mato Grosso
The Bom Futuro Group, led by Eraí Maggi (Blairo`s cousin), has acquired two farms from Proterra in Mato Grosso for approximately R$ 1.8 billion (US$330m). The properties, totaling 43,000 hectares, include Fazenda Itaipu in São José do Rio Claro and Fazenda Tupi Barão in Ipiranga do Norte, suitable for cultivating soy, corn, and cotton. This acquisition enhances Bom Futuro's extensive operations, which already encompass over 600,000 hectares of crops and an annual production of nearly 2 million tons of grains and 360,000 tons of cotton lint. read more
Misc
🇺🇸 U.S. Tariff Hikes: Pros and Cons for Brazil Ag
The recent U.S. tariff hikes pose both risks and opportunities for Brazil's agricultural sector. On the downside, Brazilian exports like orange juice, meat, and ethanol may face barriers in the U.S. market, which imported $12 billion worth of agribusiness products from Brazil in 2024. However, Brazil also stands to benefit as China shifts away from U.S. agricultural imports amid escalating trade tensions. China now sources 71% of its soybean imports from Brazil, up from 62% in 2017/18. Additionally, Brazil’s beef exports to China surpassed 1 million tons in 2024, a 12.7% increase year-over-year. With U.S. commodities facing higher tariffs in China, Brazil could strengthen its position as a preferred supplier of grains and meat. read more
🚜 Parana State Reinventing Rural Credit
The government of Paraná, under Governor Ratinho Jr., has launched an innovative fund structure (Fiagro) to revolutionize rural credit by creating a sustainable financing source without relying on annual Treasury resources (Plano Safra). With an initial state investment of $65 million, this initiative aims to leverage up to $400 million in credit, addressing pent-up demand for investments in areas like poultry farming, irrigation, and agricultural machinery. The financial structure combines public funds at subsidized interest rates with private investments at market rates, attracting major investors such as Kinea, the private wealth arm of Itau, and C.Vale, a major cooperative in western Paraná. Agroforte, a Yield Lab portfolio company, will participate in the project by originating and deploying all the capital to small and medium-sized farmers. read more
🥩 Brazil Leads Global Beef Exports; JBS Expands to Vietnam
In 2024, Brazil solidified its position as the world's leading beef exporter, shipping a record 2.89 million tonnes—a 26% increase from the previous year—and generating $12.8 billion in revenue. China remained the top destination, importing 1.33 million tonnes valued at $6 billion, while the United States followed with 229,000 tonnes worth $1.35 billion. Other significant markets included the United Arab Emirates, European Union, Chile, and Hong Kong. Building on this momentum, Brazilian meat processing giant JBS announced a $100 million investment to construct two factories in Vietnam to produce beef, pork, and poultry, primarily using raw materials imported from Brazil . read more
💼 AgroGalaxy Advances in Debt Restructuring Negotiations
AgroGalaxy is making significant progress in negotiations with creditors to approve its judicial recovery plan and sell its credit portfolio. The company has received a binding proposal for the sale of $125 million in credits from agricultural input sales, aiming to inject approximately $55 million into its cash flow. The proposal comes from two newly established funds: Agro Fundo de Investimento em Direitos Creditórios, created by Jive Investments, and Carteira Futuro Fundo de Investimento em Direitos Creditórios, formed by financial creditors including XP Asset and JGP. Additionally, a major input supplier, listed among AgroGalaxy's creditors, has settled a deal involving $20 million in nominal value, with payment made in products already received and set for commercialization. These developments are pivotal as the company approaches the creditors' assembly scheduled for April 9, which will determine the approval of the recovery plan. read more
Thats all for this week, thanks for reading,
KFG
Kieran Finbar Gartlan is an Irish native with over 30 years of experience living and working in Brazil. He is Managing Partner at The Yield Lab Latam, a leading venture capital firm investing in Agrifood and Climate Tech startups. All views, opinions, and commentary expressed are strictly his own.