Addressing the Global Water Crisis: Kilimo’s Innovative Solution
Water scarcity is a pressing issue that affects not only our daily lives but also our food production systems. While most people associate water usage with drinking and personal hygiene, a staggering 70% of our water consumption goes towards growing the crops that feed us. In low-income countries, this percentage can reach as high as 90%. The need for water in agriculture is undeniable, but the challenge lies in finding a balance between ensuring successful crop production and preserving water for other essential uses.
Farmers are often encouraged to use as much water as they see fit to guarantee a bountiful harvest. Governments prioritize food self-sufficiency and aim to keep water affordable for farmers. However, this approach can result in an overuse of water resources. Under-irrigation poses a significant risk to crop production, leading to financial losses and potential food shortages. There is a clear imbalance in the risk involved.
This issue extends beyond agriculture, as water shortages can pose existential threats to companies as well. Bottling plants, for example, require a substantial amount of water to operate. The potential loss of water supply could jeopardize their entire operations. Recognizing the urgent need for a solution, Jairo Trad, co-founder and CEO of Kilimo, set out to address this issue by assigning a value to water.
Kilimo has developed an innovative risk management tool to tackle the challenges posed by water scarcity. The company has collected around 100,000 soil samples across 45 different crop types in various countries, primarily in South America. By linking soil moisture data from these samples to satellite imagery of farm fields, Kilimo can remotely monitor and advise farmers on their water usage.
The service provided by Kilimo comes at a fee for farmers, but the potential benefits far outweigh the costs. By effectively reducing their water consumption, farmers can sell the surplus water to other companies in the same watershed. Kilimo shares a portion of the proceeds with the farmer, ensuring that they not only save money but also earn a profit. On average, farmers who reduce their water use see a net increase in income ranging from 20% to 40%. To ensure transparency and accuracy, all transactions are verified by third parties following the Volumetric Water Benefit Accounting standard.
While Kilimo has been operating for a decade, it is now expanding its operations due to the growing concern over water scarcity. Currently, the company operates in South America, including Argentina and Mexico. However, its next target regions are the Southwestern United States and Europe. To support this expansion, Kilimo recently raised a $7.5 million Series A funding round led by Emerald Technology Ventures, with participation from iThink VC, Kamay Ventures, Salkantay Ventures, and The Yield Lab Latam.
In addition to its funding success, Kilimo has secured partnerships with major companies such as Microsoft, Intel, and Coca-Cola. These corporations have all made water pledges, recognizing the importance of sustainable water management. As data centers and beverage companies are significant water consumers, their involvement in Kilimo’s efforts is crucial. Trad emphasizes the need for collaboration between corporations, governments, and development bank entities to make a substantial impact on addressing the global water crisis.
Kilimo’s innovative approach to water management provides hope for a sustainable future. By empowering farmers to optimize their water usage and creating a market for surplus water, Kilimo not only addresses the risks posed by water scarcity but also helps farmers increase their income. With partnerships and expansion plans in place, Kilimo is poised to make a significant difference in regions facing water shortages. Their work serves as a compelling example of how technology and collaboration can drive positive change in tackling pressing global challenges.