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You’d think that given the campaigns advocating for a reduction in meat consumption and promotion of plant-based diets, the meat market might have suffered.
Demand, however, shows no signs of slowing. The Mexican meat industry is expected to grow annually by 5.92% from 2024 to 2028, reaching a market volume of $71.7 billion dollars.
Let's dive in.
- You own a livestock business.
- Over the past decade, you've built a loyal client base, maintaining strong relationships with them.
- While your profit margins are reasonable, you believe there’s room to negotiate higher prices for your cattle.
- Your current strategic goal is to break into the US market, which could significantly elevate your profits.
- To achieve this, you try a new platform that allows you to showcase your livestock to a broader audience of buyers.
Explain it like I'm five
In Mexico, the cattle industry is extensive, with about 35 million heads of cattle; it ranks as the 12th largest producer on the global stage. Over half the country harbors livestock. Yet, despite its nearly 2 million producers, most only own around 20 to 25 animals each. Therefore, the Mexican meat market is mainly controlled by just 20,000 big producers.
- By leveraging data, Fincadi’s algorithm can quickly value cattle, considering their location, quality, and optimal end customer.
- They have been offering “Finacadi Food Service” a B2B2C vertical that offers their meat products to social clubs, restaurants, and weddings.
- Fincadi is “close” to launching its direct-to-consumer products for the national market and offering a subscription-based program for quality meat delivered straight to client’s homes.
Information is very limited in this industry, from best quality meat - to top producers in the country. This allows retail stores to control the market, often leading to cattle being sold multiple times before reaching the final consumer.
Fincadi is focused on helping cattle farmers sell their livestock to businesses in Mexico and the US, promoting a healthier supply chain.
- Industries: Livestock, Foodservice
- Headquarters: Monterrey, Mexico
- Year Operations Started: 2023
- Team Size: 8
- Raised: Undisclosed
- Business Model: B2B2C
What we like:
- Consumption: A report by the Mexican Meat Council revealed that meat consumption in Mexican households increased by 3.1% in 2022, reaching 9.8 million tons despite high inflation.
- Data: Capturing livestock producers’ information can become a moat for Fincadi. With a clear map of high-quality livestock producers in the country, they could leverage the data collected to offer premium products for their food service, trade, and consumer business.
- Tech: They are developing a machine learning-based facial recognition system for cows, enabling quick and accurate identification of each animal. This technology allows tracking a cow's breed, origin, and value, enhancing transparency and efficiency in livestock management.
- Farmers: The livestock business hasn’t changed much with technology. Many processes are still being done the same as four decades ago. With Finacdi, farmers can increase margins and find more verified buyers for their cattle.
- Privacy: Owners of this industry tend to keep their businesses under the radar. Fincadi has reached more than 250 livestock owners, but there are around 2 million producers in Mexico alone. Convincing owners to join their platform is one of the biggest challenges the founders are currently facing since it’s a very traditional and standardized industry.
- Imports: Mexico still brings large quantities of meat from around the globe. Consumers in the country identify Mexican meat as lower quality than those abroad, taking the market share of local producers. The top-quality meat in Mexico gets exported to the United States, and what is known as “lower quality” stays in Mexico.
- Sustainability: While demand for meat products grows, livestock farming remains an issue among climate change activists. Fincadi must balance meeting consumer demand and addressing environmental sustainability, a challenge many in this industry must navigate carefully.
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- 500 Global launched its fourth startup investment fund in Latin America (500Latam).
- Bioeutectics, an Argentine biotech startup specializing in developing environmentally friendly solvents, raised $2.1 million in funding (Syensqo).
- Genial Care, a Brazilian health tech specializing in services for children with Autistic Spectrum Disorder (ASD) and their families, secured $10 million dollars in funding (Latin American Reports).
- Approbe, a Colombian fintech connecting individuals seeking credit with lenders, secured $2.3 million dollars in funding (Latamlist).
The best tools and resources we came across this week.
- How board members set themselves apart.
- Why founders should not prioritize networking events.
- Monthly investor update template for early-stage companies.
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