Most people associate water usage with drinking and showering, but a staggering 70% of global water consumption is dedicated to agriculture, reaching up to 90% in low-income countries.
This poses a significant challenge in allocating water for other essential uses.
Rethinking Irrigation Practices
In many regions, farmers are encouraged to use as much water as they deem necessary, often exceeding actual requirements to ensure a bountiful harvest.
Jairo Trad, co-founder and CEO of Kilimo, explains that governments prioritize food production and affordable water, but this approach can lead to over-irrigation and unnecessary risks for farmers.
Balancing Risk and Water Conservation
While cheap irrigation has transformed many areas into fertile breadbaskets, it often leaves little water available for other purposes. Water shortages can pose an existential threat to businesses, prompting Kilimo to develop a solution that addresses this challenge.
Kilimo’s approach involves collecting extensive soil samples and analyzing them to establish a correlation between soil moisture and satellite imagery of farm fields. This enables the company to remotely monitor farms and provide farmers with tailored advice on optimizing water usage.
Financial Incentives for Water Conservation
Kilimo charges farmers a fee for their services, but if farmers successfully reduce their water consumption, Kilimo can sell the surplus water to companies in need within the same watershed.
This creates a win-win situation, as farmers receive a share of the proceeds, typically netting 20% to 40% more than their initial investment in Kilimo’s services.
The entire process is meticulously verified by third parties adhering to the Volumetric Water Benefit Accounting standard.
Having operated for a decade, Kilimo is now expanding its reach as water scarcity becomes a top concern for businesses and governments.
The company currently operates across South America, including Argentina (its home base) and Mexico, with plans to expand into the Southwestern United States and Europe.
Strategic Partnerships and Funding
Kilimo recently secured a $7.5 million Series A funding round to support its growth. Led by Emerald Technology Ventures, the round also saw participation from iThink VC, Kamay Ventures, Salkantay Ventures, and The Yield Lab Latam.
The company is collaborating with Microsoft, Intel, and Coca-Cola, all of which have made significant water conservation pledges. Trad envisions forging more partnerships, recognizing the collective impact that can be achieved through collaboration among corporations, governments, and development banks.