Kilimo, a startup focused on optimizing water usage in agriculture, has developed a method that not only conserves water but also financially rewards farmers who reduce their water consumption.
According to Jairo Trad, co-founder and CEO of Kilimo, the agriculture sector consumes up to 90% of water in low-income countries and about 70% globally, mainly for irrigation. This substantial usage highlights the critical need for efficient water management practices, especially given the water scarcity challenges various regions face.
Trad explains that many governments encourage farmers to use ample water for crop production to ensure food security, often resulting in over-irrigation. This approach, while aiming to avoid under-irrigation risks such as reduced crop yield and economic loss, leads to inefficiencies and water shortages for other needs.
In response, Kilimo offers a service where it collects soil samples and uses satellite imagery to analyze and monitor soil moisture across farm fields. This technology enables Kilimo to provide precise irrigation recommendations.
Farmers who adopt Kilimo’s advice and successfully reduce their water use can then sell the saved water. Kilimo facilitates the sale of this surplus water to companies in the same watershed that are experiencing water shortages, such as a hypothetical $200 million bottling plant at risk of halting operations due to a lack of water. By doing so, farmers typically gain an additional 20% to 40% over what they pay for Kilimo’s services. All transactions and savings are verified by third-party entities following the Volumetric Water Benefit Accounting standard, ensuring transparency and reliability.
As water scarcity becomes a more pressing concern for industries and governments worldwide, Kilimo’s relevance continues to grow. The company, which has been operational for about ten years and is headquartered in Argentina, serves various countries in South America and plans to expand into the Southwestern United States and Europe.
To support this growth, Kilimo has recently secured $7.5 million in Series A funding. The investment round was led by Emerald Technology Ventures, with participation from iThink VC, Kamay Ventures, Salkantay Ventures, and The Yield Lab Latam.
Moreover, Kilimo is collaborating with major global corporations like Microsoft, Intel, and Coca-Cola, which have significant water usage footprints and have committed to substantial water conservation efforts. Trad emphasizes the importance of collective action involving corporations, governments, and development banks in tackling global water challenges effectively.
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