Deep Tech: A New Opportunity to Improve the Brazilian Agribusiness

Date:11-22-2024

″A deep tech innovation is impossible yesterday, barely viable today, and will soon become so present and impactful that it’s hard to imagine life without it.″

— Siegel and Krishnan, 2020

A Transformational Opportunity for Brazilian Agribusiness

Brazilian agribusiness, a pillar of the national economy and a strategic player in global food production, faces critical challenges: improving productivity, ensuring environmental sustainability, and adapting to climate change. In this context, deep tech emerges as transformative forces, offering cutting-edge solutions grounded in science and disruptive technologies to address these complex issues.

What Are Deep Techs?

Deep techs refer to innovations rooted in advanced scientific and engineering breakthroughs, designed to make profound societal, economic, and environmental impacts. Unlike conventional startups, deep techs are built on fields like biotechnology, artificial intelligence (AI), nanotechnology, robotics, and quantum computing.

Key Characteristics:

1. Strong Scientific Foundations: Developed from rigorous, high-level research.

   
   

2. Complex Problem-Solving: Focused on global challenges like climate change, public health, and food security.

   
   

3. Extended Development Cycles: Require significant time and resources to reach market maturity.

   
   

4. Transformational Impact: Potential to revolutionize entire industries.

The Birthplace of Deep Techs

Deep tech innovations thrive in ecosystems that foster interdisciplinary collaboration, cutting-edge research, and substantial financial support.

Key Contributors:

• Universities and Research Institutions: Institutions like Brazil’s USP, ITA, and Unicamp, or MIT and Stanford in the U.S., serve as innovation hubs.

• Example: Moderna's mRNA vaccine technology originated from academic partnerships.

  
  

• Innovation Centers and Startups: Tech hubs like Piracicaba’s AgTech Valley link researchers, businesses, and investors.

• Example: Brazil’s ″Agtech Garage″ is a model for agricultural innovation.

  
  

• Public-Private Collaborations: Government programs and private investment, exemplified by Embrapa, accelerate development in agriculture.

  
  

• Accelerators and Venture Builders: Initiatives like Y Combinator (U.S.) and Emerge (Brazil) transform research into viable businesses.

  
  

• Corporate Labs: Companies like Google and IBM drive disruptive innovations with global reach.

Challenges for Deep Techs in Brazil

Despite their potential, deep techs face unique barriers:

• High R&D Costs: Require substantial upfront investment.

  
  

• Long Development Cycles: Often years before commercialization.

  
  

• Scalability and Regulation: Meeting regulatory standards and achieving market scalability demand significant effort.

According to Emerge, 70% of Brazilian deep techs are in the validation stage, striving to demonstrate their feasibility. Yet, the country leads in Latin America with 875 registered deep techs, many incubated in São Paulo-based institutions like USP, UNICAMP and ITA

Strategic Applications of Deep Tech in Agribusiness

Brazil's agribusiness sector stands as a prime candidate to harness the benefits of deep tech, with 202 companies already working on groundbreaking solutions.

Prominent Applications:

1. Improving Productivity:

• Example: Solinftec, an AI-based system founded by engineers from Cuba, optimizes machinery operations, reducing waste and boosting yields.

  
  

2. Sustainability and Regenerative Agriculture:

• Example: Symbiomics uses microbiology to enhance soil health and productivity while minimizing environmental impact.

  
  

3. Biotechnology and Genomics:

• Example: AgBiome, in partnership with Brazilian firms, develops biological pest control solutions.

  
  

4. IoT and Data Analytics:

• Example: Aegro provides digital tools to help small and medium farmers make data-driven decisions.

  
  

5. Carbon-Neutral Production:

• Example: Optioline develops biotech solutions for zero-carbon soybean production.

  
  

6. Nanotechnology:

• Example: Small Nano, founded by USP researchers, creates nanosensors and formulations to enhance product efficacy and shelf life.

  
  

7. Natural Biotechnology:

• Example: BEEOTEC harnesses Brazil's unique biodiversity to create agricultural solutions using propolis and phytoextracts.

Strategic Impact on Brazilian Agribusiness

Beyond addressing specific challenges, deep techs offer broader strategic benefits:

• Tailored Solutions: Address regional realities and individual producer needs.

  
  

• Global Competitiveness: Position Brazil as a leader in innovation, attracting investments and expanding markets.

  
  

• Public-Private Synergy: Collaborations with entities like Embrapa fast-track disruptive advancements.

A Necessary Reflection

Deep techs transcend mere technological innovation. They are reshaping agribusiness into a more efficient, sustainable, and competitive industry. Companies like Solinftec, Symbiomics, and Optioline exemplify how science and technology can tackle historical challenges while elevating Brazil’s position on the global stage.

To fully realize this potential, it is imperative for businesses, governments, and startups to join forces, integrating these innovations into the agricultural sector. The true agribusiness revolution lies in the deep roots of science, and Brazil holds all the elements to lead this global movement.