Investing in food sector technologies and practices to tackle climate change

Building resilience in the food sector against climate change is a global priority. To tackle these growing challenges, investing in innovative technologies and sustainable practices is becoming increasingly essential.

According to the Food and Agriculture Organization of the United Nations (FAO), about one-third of all food produced for human consumption is lost or wasted each year, significantly affecting the economy, the environment, and food security.

Climate change is one of the biggest challenges facing agriculture worldwide. According to the report "The economics of climate change in Latin America and the Caribbean" by the Economic Commission for Latin America and the Caribbean (ECLAC), climate change impacts a country’s economic growth, especially in agriculture, where production is closely tied to weather conditions.

In this context, reducing food waste amid climate change is a global priority for enhancing both planetary sustainability and national economies. With that in mind, we will explore key technologies that help combat this global challenge.

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ZERO-WASTE GASTRONOMY

This culinary approach aims to reduce or completely eliminate food waste during preparation, cooking, and consumption. It involves using every part of an ingredient — including peels, stems, leaves, bones, and meat scraps — to create innovative and sustainable dishes.

Zero-waste gastronomy is rooted in sustainability, circular economy principles, and respect for the environment. Its goal is to maximize the use of every resource while minimizing the waste that ends up in landfills.

 

REGENERATIVE AGRICULTURE

The goal is to restore and enhance soil health, biodiversity, and ecosystems while promoting sustainable practices to help mitigate climate change.

Unlike conventional farming methods that prioritize short-term yields, regenerative agriculture focuses on restoring natural resources and building sustainable farming systems for the long term.

 

4.0 TECHNOLOGIES

While the World Resources Institute (WRI) classifies Peru as experiencing medium-high water stress, the country’s growing agribusiness sector has embraced technological innovations to optimize water use, agricultural inputs, and energy consumption by up to 20%.

Industry 4.0 technologies include drone and satellite applications, digital sensors, mobile apps, cloud computing, big data, and artificial intelligence (AI). These tools enable full monitoring of the agricultural production chain — from cultivation and harvest to post-harvest, production, and delivery.

 

THE MIRACLE BLUEBERRY

Technology has enabled the development of new crops in Peru, generating significant revenue in export markets. One example is the blueberry — a fruit that was not cultivated in the country until about 15 years ago.

Taking it a step further, biotechnology is becoming a crucial pillar for agribusiness, driving progress through its contributions to six key trends:

• Agricultural bioinputs
• Sustainable plant-based protein production
• Nutraceutical products,
• Biomaterials, industrial enzymes,
• Energy from waste biomass
• Development of new species for crop adaptation.

To strengthen Peru's agroindustrial chains, CITEagroindustrial Ica — part of the Instituto Tecnologico de la Producción (ITP) under the Ministry of Production (PRODUCE) — has upgraded its facilities. Improvements include demonstration plots, a high-tech laboratory, a process lab, a school warehouse, a training center, and administrative areas.

 

WHAT'S NEXT

According to specialists in fruit selection and packing mechanization, the future of Peruvian agribusiness looks promising, with automation set to be a key ally in the years to come.

From this perspective, a trend known as cosmetic external fruit grading has emerged. This process uses sensors, cameras, and vision systems to assess and sort fruit based on ideal visual standards. The next step involves classifying external defects and evaluating flavor.

 

Peruvian Agriculture 4.0

In the coming years, national agriculture will face new digital challenges, requiring advanced IT tools to optimize processes, enhance agility, and improve efficiency.

With this in mind, adopting new technologies becomes essential, including:

Migrating to the cloud: Companies are increasingly adopting hybrid solutions to protect their processes and safeguard sensitive information.

 

Artificial intelligence (AI) and sustainable agricultura

Today, artificial intelligence (AI) plays a crucial role in monitoring soil conditions, climate, and crop phenology. Drones, sensors, and data analysis tools help detect issues in real time, enabling faster decision-making.

One of AI’s key contributions to agricultural sustainability is resource optimization. For example, AI-powered irrigation systems monitor soil conditions and plant water needs in real time. Similarly, AI algorithms can predict the best timing and locations for applying fertilizers and pesticides, reducing environmental pollution and minimizing impacts on human health.

 

The future of food

Organized by the Ministry of Production, the fourth edition of the INNAGRO fair — held in 2023 — aimed to showcase emerging trends in the agroindustrial sector. The event brought together over 300 participants and 15 speakers from Chile, Spain, Colombia, Peru, and other countries.

The Peruvian company Nutri Co showcased its innovations at the fair, highlighting its use of artificial intelligence (AI) to develop plant-based products that replace meat and its derivatives with ingredients of equal or greater nutritional value.

 

IMPACT INVESTMENT

According to the Ministry of Environment’s technical manual, "Minimum criteria defining business models suitable for mobilizing impact investments," private sector interest in addressing global challenges like climate change has been growing steadily.

One of the most powerful tools in this field is impact investing, which seeks to combine the efficiency and discipline of capital markets with solutions to the world’s most pressing social and environmental challenges. According to a 2020 survey by the Global Impact Investing Network (GIIN) of 294 impact investors, the global impact investing market is valued at USD 715 billion, with 10 % of that amount directed toward Latin America and the Caribbean.

Meanwhile, 41 % of investors plan to increase their allocations in the region, with key investment sectors including housing, financial inclusion, energy, health, agriculture, and food.

Notably, 57 % of respondents indicated that the agriculture and food sectors are especially appealing to impact investors, many of whom plan to increase their allocations over the next five years.

Impact investments have significant potential to drive biodiversity-friendly business models in Peru, with agriculture (45 %) and the food industry (22 %) as the most representative sectors.

Ultimately, adapting to climate change requires a comprehensive approach that blends technological innovation with sustainable practices. Investing in these areas will not only enhance the resilience of the food sector but also help secure global food security.