The agricultural industry stays caught up in a world increasingly reliant on technology. Evidence of this is the recent investment of USD $1.5 million that the argentine agtech, SiloReal, has managed to secure. This investment promises to be the springboard to propel the company’s expansion, strengthen its team, and refine its technology.
The Digital Age of Crop Storage
SiloReal is not a traditional agricultural company. It positions itself in the Latin American market as a revolutionary solution in silobag storage, large bags designed for crop preservation. But what makes SiloReal so unique?
The startup ventures into the vast agricultural world with a bold proposal: to use technology to provide identity and tangible evidence of the existence and condition of the silobags. This translates into multiple advantages for producers, such as traceability of their products, increased storage security, and the ability to access credit using their silobags as collateral.
Brazil and Argentina, two of Latin America’s agricultural giants, already have a well-established culture around silobags for temporary grain storage. However, this practice, while common, is challenging.
By relying on this method, producers face limitations such as the need for clear visibility of the quantity and quality of the stored assets. Moreover, silobags outdoors are exposed to adverse weather conditions that can jeopardize their contents. One of the most significant challenges is the inability to use these silobags as credit collateral due to the absence of a reliable way to verify their contents.
In the face of these challenges, SiloReal has developed an adequate response. The company can monitor silobags using advanced sensors and specialized software. This monitoring provides crucial information about the condition and amount of stored grain and serves as a trusted tool for producers. Armed with this data, farmers gain peace of mind and can use this verifiable information to access credit opportunities.
With the recently acquired capital injection, SiloReal has big plans. It’s about improving its existing technology and expanding its market presence. The company has an ambitious goal: in the next five years, it aims to monitor 40 million tons of grains in Brazil and Argentina.
According to a study by the IDB titled Agtech Innovation Map in Latin America and the Caribbean, Argentina accounts for 23% of the tech-focused startups in the region. In comparison, Brazil accounts for 50%, thereby solidifying themselves as the two agricultural giants in an area where 14.1% of its workforce is agriculture.