Mila Valcárcel, managing partner at agrifoodtech accelerator Eatable Adventures, believes the agrifoodtech ecosystem in Colombia is at a key stage of transformation.
“In 2024 the sector continued to evolve, with notable diversification, reflecting the adaptability of an ecosystem that relies on local talent, unique biodiversity, and a growing culture of innovation,” writes Valcárcel in a new report, The State of Agrifoodtech in Colombia.
She also notes that Colombia still faces significant challenges including low technological adoption, difficulties in internationalizing startups and the need to attract higher levels of investment. In this context, she suggests open innovation as a key solution, where collaboration between startups, corporations, universities and investors can overcome barriers and foster the development of sustainable and globally competitive business models.
Colombia is positioned as the second best country in Latin America for startup development, surpassing Chile and Mexico, and 38th in the world, according to the Startup Blink 2024 annual report.
But if we zoom in into agrifoodtech, however, the numbers are different. Total investment in the Colombian agrifoodtech sector in 2024 was just $40.4 million, while in 2023 only 5% of the investment in agrifoodtech in Latin America went to Colombia, according to Forbes Colombia.
Brazilian market research firm TTR Data recorded 43 venture capital transactions in Colombia in the first three quarters of 2024, for a cumulative amount of $372 million. This represents a 25% drop in the number of deals and a 2% decrease in the total amount compared to the same period in 2023.
Infographic credit: Eatable Adventures
ANDI, the National Association of Entrepreneurs of Colombia, counts 163 startups presently active in the agrifoodtech sector. Camilo Montes, executive director at ANDI’s Food Industry Chamber, believes the country has the potential to become a leading force in the agrifood technology sector.
In the Eatable Adventures report, he expresses his future vision for Colombia: “The country has everything in its favor: a large agricultural frontier to develop, a business density of all sizes, access to a relevant local market (50 million consumers) and a global market of more than 1.2 billion thanks to free trade agreements, and, above all, an ideal natural environment to prototype new products.”
To achieve this, he believes it is essential to make strategic decisions, take risks and challenge business models. “At ANDI’s Food Chamber, we are convinced that technology will be the differentiating factor that will allow us to fully integrate into this revolution. Colombia has a unique opportunity we cannot afford to miss. It is time to act with vision and determination to achieve our rightful place on the global stage.”
Opportunities and challenges for Colombia’s agrifoodtech sector
As noted in Eatables Adventure’s report, factors that can favor Colombian startups include a resource-rich region and many entrepreneurs actively working to solve logistical inefficiencies that hinder food distribution, in order to improve sustainability. This is a key priority for a country that presents a unique wealth of natural ecosystems. According to the report, less than a third of the nutritional potential of Colombia’s vast biodiversity has been explored so far. Some startups are already innovating in food production, developing new categories that not only diversify food options, but also strengthen food security locally and globally.
Colombian foodtech startups are still facing multiple challenges, mainly due to the lack of capital due to the recent economic recession and ongoing political factors that have dampened confidence in the region on the part of global investors.
One important factor listed by the report as holding back the Colombian agricultural sector and reducing its productivity is the slow adoption of technological innovation, where Colombia is performing poorly even at regional level. According to Colombian tech publication Impacto TIC, in Colombia only 30% of small farmers use technology on a regular basis, while in countries such as Argentina, Brazil and Chile, the rate of adoption is at least 50%.
Colombia has seen an increase in the number of startups and projects driven by key alliances in agrotechnology, however. Some examples include Agrapp , a platform offering data analysis tools to help farmers optimize crop yields, Waruwa, a logistics startup focusing on the digital distribution of fresh produce, and SiembraCo, an agtech company supporting small farmers with virtual planting solutions to improve their productivity.
Institutional support can be a game changer
An important recent development that according to Eatable Adventures could be of great advantage for agrifoodtech startups is the growing involvement of the Colombian government in policies that can support the sector, Impacto TIC claims that the regulatory framework in Colombia is adapting to include emerging technologies operating in the agrifoodtech sector. In an effort to focus on sustainability, the Colombian government is promoting practices for responsible production and innovation in agrifood systems.
“To achieve greater impact, we need support on several fronts. In addition to funding for innovations in Latin America and strategic alliances with international organizations, it is also crucial that local environments adopt new policies to support entrepreneurs, integrating proven models of law in other contexts with more developed ecosystems. We also need more initiatives that promote the adoption of efficient technologies among small and medium farmers for the impact to be tangible”, cofounder and CMO at agtech startup Siembra Vertica Hans Maldonado notes in the Eatable Adventures report.
Still, according to the report, another promising factor is that across Colombia, and Latin America in general, consumers are increasingly gravitating toward healthier, more sustainable, and functional food options. In tune with global trends, the market is also seeing increased demand for products supporting digestive health and microbiome wellness, alongside rising interest in food freshness technologies, particularly for delivery services.
This market evolution can favor emerging tech solutions that enhance food storage, traceability, and consumption personalization, fostering a startup ecosystem that can create a new range of local products and services to better serve modern consumer needs.
Infographic credit: Eatable Adventures
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Publish date : 2025-01-07 23:00:00
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