Week 11, 2023 - Find The Way Newsletter

“It is the mark of an educated mind to be able to entertain a thought without accepting it.” - Aristotle

MARKETS?

March 17, End Of Day

• Argentina S&P MERVAL Index = 221,740.26 (1 Year = 148.99%)
• Brazil BOVESPA Index = 101,981.53 (1 Year = -11.56%)
• Chile S&P IPSA Chile = 3,080.23 (1 Year = -2.49%)
• Colombia MSCI COLCAP = 1,110.39 (1 Year = -28.04%)
• Mexico IPC Mexico BMV = 51,925.61 (1 Year = -6.38%)
• Peru S&P/BVL Peru = 21,376.31 (1 Year = -13.04%)

CURRENT AFFAIRS

• Honduras: Honduras' decision to sever diplomatic ties with Taiwan and establish relations with China is driven by economic interests, according to Honduran foreign minister Eduardo Enrique Reina. The move is motivated by the need for investment and cooperation as Honduras faces economic hardships, and highlights the dilemma faced by countries seeking strong economic ties with both the US and China, which have competing interests in the region.
• Mexico: Bank of Mexico Governor, Victoria Rodriguez, has declared that Mexico's banking system is robust and has sufficient liquidity to fuel growth going forward, adding that the banking crisis hitting the US and Europe is not expected to impact Mexican banks. Rodriguez also stated that Mexico has clear advantages for nearshoring, as the country has been identified as a prime location for companies moving production closer to North American buyers due to recent supply chain bottlenecks.
• Colombia: The government has presented a labor reform bill to Congress aimed at reducing working hours and increasing overtime pay, as part of a set of reforms being proposed by President Gustavo Petro to tackle poverty. However, critics of the bill argue that the proposed measures could harm job creation in the country.
• Argentina: The International Monetary Fund (IMF) has agreed to modify the economic targets of Argentina's debt programme in response to economic challenges and a severe drought. The decision paves the way for a new disbursement of around $5.3 billion and is subject to approval by the IMF's executive board.

TECH

A year after Russia's invasion of Ukraine caused a disruption in agricultural commodity markets, global food prices remain elevated, with many vulnerable countries still facing heightened food insecurity. The Food and Agriculture Organization of the United Nations reported that although food prices have declined for 11 straight months, they remain above average levels for recent years. International organizations have called for rapid action on food and nutrition security, urging governments and donors to step up support for the most vulnerable and facilitate trade and market functioning while abandoning harmful subsidies. Latin American countries with their fast-growing Agriculture Tech ecosystems can play a major role in reducing food insecurity.

Agtech startups to keep an eye on in LATAM

• Brazil: Agrosmart . Offers smart farming software that allows remote monitoring of agroeconomic data for managerial automation. Total Funding = $15.5M.
• Argentina: Kilimo . A Big Data solution for water management in agriculture. Total Funding = $1.4M.
• Mexico: Rising Farms . They operate and develop tech-enabled, large-scale indoor farms. Total Funding = $4.6M.
• Chile: AgroUrbana . The first vertical farming company in LATAM. Total Funding = $5.8M.

Active VC funds focused on Agtech in LATAM

• The Yield Lab LATAM
• SP Ventures

FURTHER READING?

Want to know more about the #agtech markets of the major food-producing nations, Brazil and Argentina? Download the comprehensive reports in English:

• Radar Agtech Brazil maps the Brazilian Agtech ecosystem.
• ARCAP & Deloitte on Venture Capital and Agtech sector in Argentina.

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