As the world population continues to grow—recent estimates say there could be almost 10 billion people by 2050, causing a 70% increase in global caloric needs, which will require a 70% jump in food, feed and fibre production—Latin America is actively preparing to lead the way to meet future demand. Brazil, particularly, is already a regional agricultural leader, and next week the Pavo team heads to the country’s Blockspot Conference in São Paolo to introduce their blockchain and IoT technology solution that aims to revolutionize the world of food production and distribution.
A recent Global Harvest Initiative report about the future of Latin American and Caribbean (LAC) food production points out that the LAC region is the ideal future bread basket for the world. It is already a global leader in food production, as well as being home to a third of the world’s fresh water resources and a quarter of the world’s medium- to high-potential fertile land.
In the report, Inter-American Development Bank (IDB) president, Luis Alberto Moreno, argues:
The region’s export prowess is already being demonstrated in real terms, from the vast rain farms of Brazil to the meat packing plants of Argentina and Uruguay, and on to the small coffee plantations of Central America, the asparagus fields of Peru, and the maize fields of Mexico. Despite all this, LAC has merely scratched the surface of its ability to produce food for its own people and for the world at large.
Population growth puts strains on land use and the environment overall, so countries like Brazil are turning to AgTech solutions to address environmental concerns as they seek to become the world’s top food producers. Brazil is presently a top world exporter of food products like sugar, coffee, cashews, soya, and chicken, but they also want to be global frontrunners in environmental and social sustainability. The country is ready to take the lead when it comes to innovative technology adoption, and Pavo believes they have the ideal solution that will catapult the Brazilian agriculture industry well into the future.
The company has already deployed its solution at hazelnut and almond farms in Europe, and is expanding to tree nut farms in California, a state that imposes restrictive irrigation regulations. Tree nuts are notoriously sensitive to when they get watered and even to precise harvest conditions. Getting these wrong can be costly for growers, so, advanced analytics capabilities, such as those integrated within Pavo’s software, can have a positive impact on increasing yields. Pavo’s initial product collects data directly from the field and processes it, to guide farmers’ decisions for optimal growing conditions, from seed to irrigation to ideal harvesting conditions.
They have even developed a method using software to predict total hazelnut yield by modeling each individual tree’s responses to its local environmental conditions. Model predictions are compared to historical yield values collected over a period of 10 years. These predictions offer an alternative to using retrospective analysis alone and provide a method of crop estimation that incorporates the impact of current weather conditions. For LAC countries like Brazil, which have drastically different regional growing and weather conditions, this type of precise analysis could prove to be a game changer.
What makes Pavo different from other farm management systems is that their platform integrates blockchain technology, which means that they can now offer a complete solution for the entire growing and distribution supply chain.
Jesse Martinez, co-founder of Latino Startup Alliance, a non-profit organization that supports global Latino Tech Entrepreneurs and startups, says that Pavo has developed the type of platform that Brazil’s agricultural sector is looking for at this time:
AgTech represents a global market opportunity, with Brazil being Latin America’s largest food exporter after the United States. By taking Pavo to Brazil, this will help energize the startup culture which is flourishing in the country, in addition to providing much welcomed tools and financial capabilities for in-country agriculture.
Another challenge faced by modern food producers is climate change, and LAC policy researchers are seeking to address how it will affect food security and environmental sustainability.
This is where traditional farming techniques can intersect with AgTech solutions that support smaller farmers, giving them the opportunity to continue to work cooperatively and still produce higher-value crops, Pavo’s CEO and Co-founder, Erhan Cakmak, argues:
Our platform tracks the information and uses it to optimize the whole growing cycle by ensuring that vital crop measurements stay within optimal ranges. Our data scientists have done predictive modeling that shows significant yield increases can be achieved, regardless of crop, through the implementation of Pavo in agricultural epicenters such as Brazil.
This means that local farmers can share and analyze data in time to make adjustments to optimize the growing conditions for their crops, while also playing a role in helping to shape best practices for their region and perhaps even beyond. This technology is dynamic, and it allows growers to share knowledge that sustains land rather than depleting it.
Pavo’s system is pushing AgTech to the next level, but it’s also a system that can address social needs, to allow smaller family farms to succeed rather than being absorbed by large industrial agribusinesses. Because it integrates blockchain and IoT technology into its platform, it can deliver everything the agricultural ecosystem requires within a single app. It is driven by smart contracts that ensure compliance with product quality, transportation and distribution requirements, while providing for smooth, secure, cashless transactions.
For smaller producers, this means immediate payment once contract conditions have been fulfilled. The platform reduces the need for regional procurement brokers, since the smart contract also ensures that jurisdictional regulations are met before payments are made.
In fact, Pavo tracks every step of the seed-to-delivery process, including spraying protocols, labor costs, as well as shipping conditions. Any changes from the original contracts are tracked, and all this information can be analyzed by growers who can then calibrate for any conditions throughout each process. It’s the type of technology that has the potential to help farmers intensify food production without expanding land use or destroying the livelihoods of small famers, which is vital for Brazil and other LAC countries.
The Pavo team will be participating in the Blockspot Blockchain and Cryptoeconomic Conference in São Paolo on May 28 and 29. Mr. Cakmak will be presenting at the conference on May 28 at 14:30.
Pavo is currently in the second phase of their public presale, which continues until August 6, 2018, featuring a 33% bonus. Their main ICO begins on August 7 and will continue until September 15, with decreasing bonuses available.
You can learn more about Pavo at pavocoin.com