During its Golden Age, Argentina was well known as the “World's Breadbasket”. After receiving foreign investment in essential technological facilities (railways, ports and cattle cold storage plants), the agricultural exportation grew almost 6 times from 1875-1879 to 1910-1913 (information registered by the National General Agency for Statistics’ Yearbook - Anuarios de la Dirección General de Estadística de la Nación). Our country took its first steps into the global industrialization showing its capabilities to satisfy the old continent’s food demands.
An investigation made by the Food and Agriculture Organization of the United Nations (FAO) has shown that Argentina is one of the top 10 countries with the biggest amount of agricultural land in the world (140,500 thousand ha). Almost 23% is used to grow crops and the remaining 77% is used to grow pasture to feed animals. We have large areas of food production but, how can we leverage this?
Just like we did during the Golden Age but with a slight difference: this time we’ll invest in local technological facilities. We are not only the “world’s breadbaskets”, we are also experienced technological entrepreneurs innovating and disrupting in verticals such as Agtech (technology for the agricultural sector) backed by local investors (angel investors, VCs and accelerators). This whole new scenario plus a favorable public policy and a growing local and international network show us why are all eyes on Agtech.
This is the reason why at Xpand Ventures we have decided to focus on finding potential companies innovating in Agtech. Our investment thesis is based on the idea that the world will need to produce more food and in a more efficient way, and Argentina is in the best situation to take up this challenge. A research made by FAO confirms that global food demand is expected to grow by 1.1% per year (expectations until 2050).
We believe that the best way to meet this demand is by locally concentrating the whole production proposal. This means that we must promote local technological innovations that help optimize each and every part of the production chain. That is why, at Xpand Ventures, we are searching for Argentinean-based companies innovating in Agtech by applying technologies such as data science, Internet of Things and mobile high-speed internet. Learn more about our value proposition at www.xpand.ventures