Indigo, the agricultural unicorn who "hackers" crops with microbes and plans to charge $ 1 billion

The idea seems simple: use natural plant microorganisms to improve crops and make them "invincible". And, incidentally, disfigure and revolutionize the agricultural sector. This is the idea behind Indigo, a startup of the new segment of AgTech – A company combining agriculture and technology – born in Boston, USA, four years ago under the hand of the biologist and entrepreneur Geoffrey Von Maltzahn.

It has raised $ 400 million and, in addition, became the fastest-growing "unicorn"; that is, he has reached a market value of more than 1,000 million USD (1,400 USD in his case). In its process of internalisation, it has chosen Argentina as the first country with activities outside the United States (today, it is also in Brazil and Australia).

Carlos BeccoAn agronomist, he has spent most of his career in traditional farming businesses, such as Monsanto and Syngneta, but he wanted "something different", a new challenge, different from what he defines as an "exhausted model". In this search, he began to "harbad the media" of this young company and, when they announced their intention to land in the country, he called them. So, he became CEO of Indigo Argentina, the subsidiary that already has, in a year and a half, 140 customers and more than 100,000 hectares planted with its seeds "improved" with microbiome, or all of the natural microorganisms of plants.

"We are trying, in a way, to lead a profound transformation of agriculture", Says Becco Infobae.

A few days ago at Expoagro, he met the President Mauricio Macri and the global CEO of the company, David Perry. "I was impressed by the community of agtech startups in Argentina. It is clear that many innovators across the country recognize the economic, environmental and social importance of agriculture. Farmers, large and small, are the backbone of the country's economy and we see an opportunity to support them with advanced microbial tools, advice and data-based support for greater profitability ", said Perry.

"We have the opportunity to make a different agriculture and change the way food is produced by linking technology to the end consumer," added Becco.

– How do you feel about being part of this transformation?

– The beginning of the journey begins with helping the plants to produce better. We are exploring microbiology, the small world of microorganisms. Surprisingly, despite all the years of working in agriculture, it's an unexplored world. There is nothing more diverse in nature than microorganisms: it is estimated that there is a trillion species. And each has the potential to generate a positive impact on plants. This is not born of agronomy, but of medicine. Today, the pharmaceutical industry is working on the development of probiotics, which is a bang. Indigo focuses on the microorganisms that live in crops: we identify the good, the beneficial, the ones that are already in the wild and we incorporate them into the cultures. This is how plants that support stress and drought are generated.

– At what stage of development are they?

– It's a new world. One billion microorganisms is an impressive number. We have 70,000 identified products and 10 products already registered in Argentina.

– Which, for example?

– Everyone is a species, a living being, different. They have a good correlation, for example, with soy and improve the performance of the plant. Everyone works in a culture in a certain situation. This is the first step of a permanent process. All the time we are looking for microorganisms, it's a fierce selection, and all the time new ones appear that correlate better with a culture, a species or an environment. That's why we are a digital company: instead of thinking about a product blockbuster, which works in as many alternatives as possible, we are looking for specific solutions. It's a good digital concept.

– Does it have nothing to do with transgenic crops?

– No nothing. It's all natural. These are natural microorganisms already present in plants. Sometimes, during a major drought, some crops appear in the middle of many deaths. Well, he survived because of something that he has inside. The current government, through Senasa, is asking us not to incorporate microorganisms that do not exist in Argentina.

– Is the positive piracy for crops made on the seeds or the plant?

– The most effective moment to bring this improvement, this intervention, is the birth of the plant. First because it is when one can be more precise in applying it. In addition, a few milliliters of microbial solution are used for hundreds of kilos of seeds. It's very accurate. This is the moment of more control over the system.

– Do they sell seeds, then?

– Our material is seed, but we are not nurseries. We take seeds from third parties and we promote them. On the other hand, nobody wants more fumigations or sprays in the environment. It's a risk.

– How did this American start-up come so fast in Argentina?

– Argentina is an eminently agricultural country, with great potential. It has highly technological producers and is open to opportunities; and agriculture that is done in dry conditions, with a lot of stress. In addition, I was attentive and I "harbaded" the company since she called herself Symbiota. Agriculture is an industry that must change: we are about to undergo an extraordinary transformation. When they said that I was coming to Argentina, I raised my hand quickly and took the risk of leaving a large multinational company. This environment needs innovation.

Is Indigo an anti-herbicide company?

– No, we are not anti-nothing. But we understand that the solution does not go through all that, but thinking differently.

– How much do they charge?

– This year, 20 million USD. And we plan to reach 1 billion USD in 2024. For this we need to have a digital platform on which at least 5% of the volume of agriculture is marketed, which would have a real impact on improving producer profitability, with less impact on the market. environment and with a better traceability of this production for the final consumer. I imagine entering into agreements with food production companies that are willing to pay more to produce healthier foods.

– How do they work with local producers?

– We started from scratch in August 2017. We played stamps with an innovative proposal: value sharing. We give them technology, improved seeds; they taste it; they give us the data; if it works, half and half; if it does not work, "thank you for participating." We started with 30 ABC1 customers, which is less in an environment where producers have solved everything. The farmer knows that he needs help, that what he has done all his life is questioned. Their children ask them if they are spraying. They know that the pounds alone can not reach.

– How did you do with this initial test?

– First year, very few months: 30 customers on 10,000 hectares. We have about 16,000 bags. All the soy.

– Is it a good performance?

– This is an ambitious number and we have had good results, beyond that we have been attacked by the worst drought. It was not a comparative model, we had no time. They tested the technology as a whole and we did very well. The following year, in the campaign that took place, we go to 100,000 hectares, multiply by ten; we expanded our activities to four crops: soybean, corn, wheat and cotton; and we went from 30 to 140 clients, a lot. We have accurate data on December wheat, with information on producers. On 5,000 hectares, we have increased the yield by 3%, about $ 20 per hectare, which is a significant number. Ten for them, ten for us.

– does he talk about attacking crop stress, but for what other things could this technique be used?

– in the future, to achieve more efficiency in the use of nitrogen and water; and, why not, to fight diseases and repel insects. The potential is huge. We started with the most common: "headache". Our gateway is to report stress, which is always there and makes the factory produce less, or stops producing. With this internal microorganism capable of continuing to produce, it is not magic: the plant develops more roots and is better prepared for a bad climatic year, for example. Is it still equal to more pounds? No, but it is safe. The world consumes huge amounts of fertilizer, which is a lot of energy, carbon and water pollution. This attack helps to make agriculture more sustainable. If we can get the plants to absorb the nitrogen from the environment instead of taking fertilizer … wow. And it's something that already exists, it's in nature. It can help transform food and add value, but what is the point if the entire farming system is designed to generate volumes, basic products. This is why Indigo is launching a market, a digital platform for marketing cereals, on the badumption that each producer can produce something different and that each buyer may need different things.

– Decommodify agriculture.

– Yes democratize agriculture, deconvert it and ensure its traceability. The entelechy of commodity, that everyone needs soy, is a mistake. Today, the world needs a lot of options and the market has to give them. There are several variations to choose a hotel in Cancun, you enter and you decide up to the size of the pillow, that when tons of grain are sold on the phone without knowing who is on the other side or where that grain goes. We need to be able to buy food where we know who produces it.

– The government needs dollars and is waiting for a record harvest and liquidation of exports. How do you see this moment for a sector crossed by retentions?

– First of all a reflection. This year, in tons, there will be 52% more soy than last year. This is a guasada. Last year was a disaster, it's true, But which industry has the resilience to survive with 52% less soy and 48% less corn and continues to bet? That said, this farming system gives obvious signs of exhaustion. And this is not a problem of Argentina. Producers have more and more restricted figures (here with more tax pressure). Social and food demands are increasing. Today, the only solution is to increase concentration. It is good that Mauricio Macri, at Expoagro, met first and only AgTech. Argentina has a unique opportunity to focus on an innovation segment that we can be leaders in with digital technologies to improve productivity and with potential disruptive factors to change the way we do business.