Agriculture

The funding will enable IBISA to build more pioneering products and expand further into emerging markets. (Image source: IBISA)

Climate Insurtech company, IBISA recently closed a US$3mn funding round to scale its parametric insurance solutions for weather-related risks in Asia and Africa

The strategic investment aims to empower IBISA to make parametric insurance more accessible. As reported by the Food and Agriculture Organisation of the United Nations (FAO), IBISA is providing simple and efficient parametric insurance products to help those affected by the climate crisis.

The company leverages innovative satellite and actuarial technologies to design and operate parametric insurance products that promote financial resilience in regions where communities are the most vulnerable to the impacts of extreme weather events. Since establishing a local presence in India in 2023, IBISA is placing a special emphasis on the country.

A number of innovative climate coverages offered by the company include agricultural-focused insurance products, as well as typhoon insurance, and loan protection for financial institutions. In addition, IBISA has also developed a groundbreaking heat stress product insurance initially designed for dairy farmers. Although being used primarily in India, the product is currently being expanded in other countries, such as Bangladesh. 

"Since the beginning at IBISA, we have functioned with great agility as product innovators and bringing these products to market efficiently. This is what drives us. This is our DNA," explained CEO of IBISA, Maria Mateo. "Now, we are entering the industrialisation phase of our journey. With the backing of this fundraising effort and the support of both existing and new investors, our goal is to amplify our product offerings, expand within our current markets, and explore new markets."

Managing director of the Acumen Resilient Agriculture Fund (ARAF), Tamer El-Raghy who was one of the investors of the funding round, expressed his excitement to partner with a world-class entrepreneur like Maria, while emphasising the importance of low-cost parametric insurance products for African farmers.

"African farmers are among the most negatively impacted by climate change and the need for low-cost parametric insurance products is a must-to-have for those farmers to be able to absorb a climate shock and IBISA's cutting-edge technology helps developing low-cost insurance products for those farmers," El-Raghy said. "This investment is an invaluable addition to ARAF's portfolio and we look forward to supporting IBISA's regional growth.

By elaborating the business case for banks and policy-makers, the projects helps to reorient policy and financial resources towards farmers. (Image source: Adobe Stock)

In April this year, a US$379mn initiative was launched to combat the devastating impacts of pesticides and plastics in agriculture

The project which involves a collaboration between the govenments of Ecuador, India, Kenya, Laos, Philippines, Uruguay, and Vietnam aims to address the significant risks that these chemicals pose both to human health and the environment. Highly hazardous pesticides and mismanaged agricultural plastics release toxic persistent organic pollutants (POPs) – chemicals which don’t break down in the environment and contaminate air, water, and food. These inputs being cheaper than sustainable alternatives, gives farmers little incentive to adopt better practices.

However, the five-year Financing Agrochemical Reduction and Management (FARM) programme led by the UN Environment Programme (UNEP) with financial support from the Global Environment Facility (GEF) is projected to prevent over 51,000 tons of hazardous pesticides and over 20,000 tons of plastic waste from being released, while avoiding 35,000 tons of carbon dioxide emissions and protecting over three million hectares of land from degradation as farms and farmers convert to low-chemical and non-chemical alternatives.

By elaborating the business case for banks and policy-makers, the projects helps to reorient policy and financial resources towards farmers, thus helping them to choose low- and non-chemical alternatives over toxic agrochemicals, in turn facilitating a transition towards better practices. The FARM programme will support government regulation to phase out POPs-containing agrochemicals and agri-plastics and adopt better management standards, while strengthening banking, insurance and investment criteria to improve the availability of effective pest control, production alternatives and trade in sustainable produce.

“Food productivity and safety is reliant on identifying better practices and safer alternatives to highly hazardous pesticides,” said director of UNEP’s Industry and Economy division, Sheila Aggarwal-Khan. “Adoption is key to scaling these alternatives. There is no real option other than a strong, coordinated response to the pollution crisis.”

Wrinkle-lipped bats hunt insects which include serious agricultural pests like plant-hoppers that can destroy up to 60% of the rice harvest. (Image source: Merlin Tuttle and Conor Wall)

The Asian wrinkle-lipped bat also known as Chaerephon plicatus resides in colonies within the caves of Phnom Sampeau and constitutes an important agricultural asset to Cambodia

The cave located close to the infamous Killing Cave, is one of three at Phnom Sampeau that house colonies of more than one million Asian wrinkle-lipped bats. Only 13 colonies of the species are known in Cambodia, with the colonies at Sampeu being among the largest in the country.

Wrinkle-lipped bats fly up to 50 km from their roosts each night to hunt insects, some of which include serious agricultural pests like plant-hoppers that can destroy up to 60% of the rice harvest. With each bat eating 50-100% of its own weight every night, the large colonies in Cambodia likely prevent the loss of over 2,000 tonnes of rice each year. This equals enough rice to feed over 21,000 Cambodians annually.

Besides being an important asset to Cambodia’s agriculture sector, large colonies of wrinkle-lipped bats are increasingly rare in Southeast Asia, which is why hunting or harming these bats is illegal under Cambodian law.  

The main reasons for the decline of this species include the destruction of their habitat through hunting and mining of the limestone hills where they live. Moreover, with Phnom Sampeau being a popular tourist spot, hundreds of tourists and locals gather at the foot of the bat caves every evening to observe the millions of these bats exiting the caves to hunt. Owing to the major ecological services that they provide, visitors are therefore advised to not make loud noises, use flash photography or throw objects at the bats.

Participants at the Asia Soy Excellence and Food Summit 2024. (Image source: USSEC)

Soy’s significance in Asia's rich cultural and culinary tapestry was emphasised at the  recent Asia Soy Excellence and Food Summit 2024 which took place from 20-22 March in Bangkok, Thailand

Organised by the US Soybean Export Council (USSEC), the summit themed ‘Eating Tomorrow – Future of Food Redefined with Soy,’ highlighted soy's role in future foods and its contribution to a circular economy. The event also acted as a meeting point for industry stakeholders, thought leaders, researchers, US soy farmers and suppliers to come together to discuss and collaborate. 

Among the wide range of topics covered during the event, the spotlight was on emerging trends such as the demand for plant-based protein alternatives and the utilisation of soy by-products like okara to combat food waste.

The pivotal role of collaboration and trust-building in the industry was also underscored during the summit, with engagement facilitated across the soy supply chain, ranging from US soy farmers to exporters and allied industry members. This ensured the provision of high-quality, sustainable US Soy to meet the region's dietary and nutritional needs.

Moreover, culinary demonstrations showcasing soy's versatility in Southeast Asian cuisine were also featured at the summit.