SLC Agrícola is one of the largest Brazilian agricultural producers founded in 1977 by the SLC Group and reportedly invested in vertical farming startup Pink Farms according to AgFunder News. Headquartered in Sao Paulo and considered one of the largest urban vertical farms in Latin America Pink Farms has witnessed important growth in recent months. The organization anticipates 10x growth in the upcoming year, according to CEO Geraldo Maia. Pink Farms is completing its Series A round, which Maia anticipates will hit its $3 million ($15 million) goal. We are aware that another significant advancement in lighting efficiency is necessary.
Latin America An Upcoming Powerhouse?
According to Statista, the vertical farming market in Latin America is estimated to reach USD 1.93Bn with a compound annual growth rate of 21% during the period. Driven by several trends, the urbanization of the population, decreasing farmland, exponential population, impact of climate change, the need to ensure a food-secure future, and the need to reduce food deserts among other points, leads the market to expand rapidly and potentially become a leading powerhouse in the near future.
Certain companies such as AgroUrbana or, Pink Farms are bringing vertical farming solutions to the continent. The first company AgroUrbana, launched the continent’s first large-scale vertical farm according to agfundernews, closing a USD 4M Series A funding round to fuel their expansion in the region and in their country, Chile. The company aims to be affordable and adapted to the region’s characteristics.
In Brasil, another vertical farm is arising, Pink Farms based in Sao Paulo, which recently opened another facility of up to 24 floors for cultivation, up to 120 tons of production at a 35% cheaper OPEX than their precedent facilities. The company now envisions expanding to other cities and eventually throughout the region.
Heavy competition with the agro-industry
The agro-industry is a prominent part of the region’s economy accounting for over 10% of the different countries’ GDP according to the world economic forum. Most of their produce is retailed at cheaper prices than that of vertical farms which hamper the sector’s growth and restricts the scope of growth to higher social classes, restaurants, hotels, and other high-end places.
Read the rest of the AgFunder News article here. To read the rest of our report on emerging markets in indoor farming, click here.
Image provided by Pink Farms
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