Marcelo Subarzo, Commercial Director of ProChile

According to ProChile, the concept of internationalization responds to a company’s ability to expand its sales, operations and/or installations in other markets and countries. The trade results it can obtain will affect the level of its exports.

but, The level of internationalization of startups is still relatively low It needs the help of different actors from the public and private sectors to enhance its growth.

Therefore, different programs in different countries seek to address this gap and support Internationalization of startupsWhich affects its transformation and improves its levels of competitiveness and degree of differentiation, thus achieving the desired economic development.

In this sense, how can a business model be defined to foster the growth of startups in the food sector and thus achieve greater impact abroad?

“The models that are advancing today are about synergies with other countries and creating chains in services. For example, Chile, which has a large food industry, produces services and technological solutions. Marcelo Subarzo, Commercial Director of ProChile in Mexico, in an exclusive interview with The Food Tech.

Therefore, agribusiness or agritech goes hand in hand with the ability to diversify the exportable offer from the traditional one to something more innovative. “Agrotech combines digital and traditional tools to take agriculture to another level,” says Subarzo.

This increases efficiency, productivity and sustainability. In other words, the mission of agritech is to digitalize the countryside. This progress will be determined by companies providing technology services to achieve said digitalization.

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What aspects should technological solutions focus on?

Market consulting firm McKinsey indicates that global population growth will reach approximately 9.7 billion people by 2050. This means increased demand for food, which is why it is important to solve problems such as:

• Addressing climate change
• Addressing food loss and waste
• Promote ethical and sustainable agricultural practices
• Reducing the use of chemicals and water

“In the field of food production, precision agriculture, resource efficiency, clean energy, solutions in logistical issues and flexible supply chains will help optimize processes, structure and costs,” highlights the director.

Likewise, to meet these challenges, where should technological innovation go? Subarzo explains that innovation is very difficult to define, as it can be addressed at the product level, structure, cost, efficiency, increased production with smaller quantities of natural resources, etc.

“However, for ProChile Innovation aims to make sure that companies or startups are aware of what is happening around the world.And consider achieving greater trade openness as this makes you more competitive.

“Therefore, by having broader openness, a connection is created with the needs or barriers that a market such as Europe or the United States may have that requires certain processes that respond to certain needs, conceptually stated at the business level,” he adds.

Internationalization strategies for startups

“Every market is a world. Everything will depend on the market you are targeting, and this makes the regulatory issue more complex, but it is an essential point for market access,” says Subarzo.

The legal framework in international markets is an important factor for the success of a business. Therefore, it is important to create export strategies. Some of what ProChile’s Commercial Director shares that SMEs or startups can take into consideration are:

• Many companies or projects have something already manufactured that they believe is ready for consumption. But the recommendation is Listen, identify and recognize what is needed If it can be generated.
• Solutions typically consist of three steps, but a startup’s solution may only require step 1, because it doesn’t have the structure to progress to steps 2 and 3. Therefore, it is essential that we learn as companies Adapt the service or solution.
• Proximity plays an important role. Being distant doesn’t work. When you can enter your target market, everything flows.
• Find a partner or business partner So you can provide support with the organizational and financial part so you can move faster.
• Addressing or studying states or localities State to identify opportunities and not focus on one place. It’s about focusing on generating business at strategic points. When you want to cover a lot, you don’t cover anything!

In conclusion, during the process of growing a startup towards the desired “scale-up” level or unicorn status, it is essential to look outward. In countries with smaller domestic markets like Uruguay or Chile, startups see the light with their focus already abroad.