International partnership announces new edition of sustainable soy for the cerrado program
Program’s US$600,000 will support initiatives to innovate through regulatory solutions, less deforestation and revenue generation to conserve native vegetation.
The 2023 Edition of the Sustainable Soy for the Cerrado Program (PSSC) is open for applications as of July 26. After four cycles and 21 startups selected to join its portfolio, the program will now expand both its thematic breadth and strategic support with a new $600,000 contribution from the Startup Finance Facility for up to twenty innovative projects in climate-smart and deforestation-free agriculture, with the possibility of further funding from new partners interested in joining this innovation ecosystem. Based on a partnership between AgTech Garage – part of the PwC network – and the Land Innovation Fund, with strategic support from Embrapii, CPDQ, and Embrapa, in partnership with Cargill, this year's PSSC will work with one-year cycles in which newly-selected startups immediately receive up to US$50,000 to design, develop and deliver innovative solutions for a sustainable soy supply chain, free of both deforestation and conversion of native vegetation.
More than 50% of the soy produced in the country comes from the Cerrado biome, which occupies 22% of Brazil's territory. The region contains some of the world's largest river basins and plays a key role in the planet's biodiversity. The combination of fertile land, water availability and flat terrain also makes the Cerrado a region with a high potential for agribusiness, particularly for grain crops. Proposing solutions to contain the advance of the agricultural frontier, either by recovering degraded areas or by increasing revenue from standing forests, is the goal of the Sustainable Soy for the Cerrado Program.
"We’re looking for entrepreneurs willing to help us build a landscape of innovation for sustainability and develop technological solutions or financial mechanisms that help maintain native vegetation and recover degraded areas," explains Ashley Valle, director of the Land Innovation Fund. "The PSSC was designed to offer participating companies the financial, technological and knowledge support they need to develop innovative solutions for sustainable agricultural development, free from deforestation and conversion of native vegetation," she adds.
"We’re looking for entrepreneurs willing to help us build a landscape of innovation for sustainability and develop technological solutions or financial mechanisms that help maintain native vegetation and recover degraded areas," explains Ashley Valle, director of the Land Innovation Fund. "The PSSC was designed to offer participating companies the financial, technological and knowledge support they need to develop innovative solutions for sustainable agricultural development, free from deforestation and conversion of native vegetation," she adds.
Up to ten startups will be selected in each of the two cycles planned for the Program’s new edition. Priority will go to farm-focused initiatives addressing three thematic areas on the sustainability agenda: technical and regulatory solutions for sustainable production, such as regenerative agriculture, traceability and environmental compliance; reduction of deforestation and degradation of native forests, including conservation of water resources, biodiversity and fire prevention; and revenue generation from the conservation of native vegetation, such as environmental service payment solutions, the bioeconomy and the carbon market.
Among the criteria guiding the selection process are the maturity of the solution, its potential to contribute to the program, clarity in the use of resources, and its capacity to innovate and have impacts for sustainable and low-carbon agricultural ecosystems, aligned with international environmental and climate agendas.
PSSC - 2023 Edition
Starting with this cycle, startups selected to join the Program's portfolio will be eligible for up to US$50,000 in support from the Startup Finance Facility to develop their solutions, in addition to ongoing strategic support from program partners. In two one-year cycles, the selected companies will also participate in an Experience Day, with access to mentoring, connections with executives and knowledge exchange with entrepreneurs, led by the AgTech Garage, as well as thematic classes and technical-scientific support from a team of researchers selected by the Cerrado Fellowship Program. They will also be in direct contact with farmers in the For Farmers Program, to exchange knowledge and test their solutions.
"The Sustainable Soy for the Cerrado Program connects farmers, researchers, experts and the market, enabling entrepreneurs to access a wealth of expertise to develop, test and scale up their solutions," explains José Tomé, CEO at AgTech Garage and a partner at PwC. The unprecedented junction of For Farmers with the Cerrado Fellowship, funded by the SFF, plus the participation of three of Brazil's benchmark research and development institutions – Embrapii, CPQD and now Embrapa – backed by a trading company like Cargill, are factors that put the Program and its entire entrepreneurial ecosystem on the frontiers of innovation," he adds.
In this new edition of the Program, Cargill will be responsible for raising the solutions’ market value through their validation and evaluation, for providing support at events and workshops, engaging with farmers, and bringing entrepreneurs and growers closer together. Embrapa will be responsible for the ongoing support of experts who develop solutions, participate in the analysis of proposals, and conduct mentoring and masterclasses.
The Brazilian Company for Industrial Research and Innovation (Embrapii) will be responsible for bridging startups and entrepreneurs with research centers to develop the selected projects, in addition to co-funding specific initiatives with grants. One of the Embrapii units, the Telecommunications Research and Development Center (CPQD) will support entrepreneurs working with Artificial Intelligence, Blockchain, Connectivity, IoT and other technologies in the CPQD’s area of expertise.
Results achieved:
The four cycles to date of the Sustainable Soy for the Cerrado Program received 210 applications from 17 states in Brazil, in addition to the Federal District. Of this total, 21 startups were selected to be part of the program portfolio, with solutions spanning the whole farm, from crop production areas to standing forests. During those four cycles, 11 projects implemented by 15 startups were selected for financial support from the Startup Finance Facility. Moreover, startups selected to join the portfolio received other financial contributions from partner institutions worth more than R$ 2.4 million to improve their solutions.
In the past two years, the PSSC has brought unique features into the initiative's portfolio of services, to meet the need for a complete innovation ecosystem to address agribusiness challenges and enhance the reach of solutions in the field. Twenty researchers from the Cerrado Fellowship and ten farmers from For Farmers took part in the Experience Day. There was also a financial contribution by the Startup Finance Facility and strategic support from new partners.
"The innovations proposed throughout the four cycles of the PSSC show our commitment to integrating innovation into our core business and putting it into practice to manage and implement our processes and programs," explains Ashley Valle. "The PSSC itself innovates by integrating all the links in the agricultural supply chain, while supporting and connecting key partners to generate positive impacts through solutions developed to address the demands of worldwide agricultural, climate and environmental agendas," she adds.