Meet the Entrepreneurs
Arvus Tecnologia December 2013
Access to Markets
arvus tecnologia
CONTACT INFORMATION
Offering a complete precision farming system ideal for agrarian machines and activities
Florianopolis, Brazil
+55 4840092704 / +55 4899649444 bernardo.castro@arvus.com.br
http://www.arvus.com.br
Bernardo de Castro, Chief Executive Officer, Brazil
CHALLENGE Brazil’s agricultural production grew by 77% from 1985 to 2006, driving the country to be one of the world’s agriculture major exporters that it is today. Key factors that contributed to this success include a series of policy reforms, rural credit solutions, and improvement in research and technology for agricultural purposes. There has been a drastic boost in new technologies over the last few years, and it was crucial in this context to find new innovative technologies that could improve agricultural productivity while contributing to a significant income increase for farmers.
“INNOVATION IN AGRICULTURE IS FUNDAMENTAL IN ORDER TO BRING THE SECTOR TO THE NEXT LEVEL IN BRAZIL.”
IDEA
BUSINESS MODEL Arvus manufactures three main products: embedded electronics (on-board computers equipped with GPS designed specifically for machines used in agriculture), machine automation and control (design and integration of sensors and control devices installed in the machines), and Geographical Information Systems. A few months after its creation, the company settled down in an incubator for technology companies, the MIDI Tecnologic, in Florianopolis. The company started developing a number of partnerships with customers from grains and forestry markets. Key partnerships were developed with UFSC (Santa Catarina Federal University), SomaRC (a soya bean grower in Goiás State), and Votorantim Celulose e Papel (a cellulose plant and forest grower). This helped the company to develop technical and market know-how. Since then, the company has developed a number of projects through commercial partnerships with companies working in rice, soybean, corn, bean and cotton production. To date, Arvus Tecnologia is the only national company manufacturing products of this kind in Brazil.
Arvus’ goal is to improve crop productivity with a precision farming method that is based on observing, measuring, and responding to variability in crops. This method can save on inputs such as pesticides and fertilizers, which are normally up to 50% of the total production cost in large-scale agriculture. With this goal in mind, the company was formed in 2004 aiming to introduce precision farming techniques and spur related technology adoption throughout the agriculture industry in Brazil. Precision agriculture in Brazil, at the time of the company’s birth, was in its very early stages, but the innovative characteristics of the method for use within the Brazilian market were, and still are, key to the company’s growth and success.
“ARVUS TECNOLOGIA PRODUCTS AND SERVICES CAN INCREASE FARM PRODUCTIVITY.”
www.infodev.org
twitter: @infoDev
ENTREPRENEUR’S INSIGHTS
NEXT STEPS
• It is very important to have an overview of the business, from both the internal (product, human resources, financing, processes, etc.) and external (market, competitors, trends, portfolio management, etc.) points of view.
WORKING WITH infoDev
Raise a second round of investments for the next step in the growth cycle, mainly within the Brazilian agriculture market Expand sales network to the sugarcane market R&D on next-generation precision agriculture solutions comprising analytics software
• Show commitment to the customers and the results you offer them.
PROGRAM: Top 20 Co-Incubation Pilot SUPPORT PROVIDED: USD10,000 cash award; technical assistance in accessing markets. Participated in the A2M (access to market) program in 2011 MAIN BENEFITS FROM ENTREPRENEUR’S VIEW: • Communication and marketing strategies focused on the international market were improved.
• Find the right people for your company and place them in the right positions.
• Meeting international companies provided an opportunity to further develop commercial partnerships in line with their business. • Exposure to international investors during the event represented an opportunity to showcase the products and services provided by the company to a broader market.
KEY OUTCOMES VALUE FOR USERS Reduced costs in inputs, such as fertilizers and herbicides (up to 50%). Increased productivity from optimizing the inputs application on the farms (about 20%). Machine efficiency working as a complete management tool to detect production bottlenecks and work to improve them. Environmental benefits from rationalizing the inputs and machine efficiency.
BUSINESS FACTS JOBS CREATED
78
CLIENTS
working with 15 agro-businesses
SALES
USD2,435,000
(2011)
USD4,217,000
(2012)
USD5,218,000
(2013)
Supported by:
www.infodev.org
twitter: @infoDev