May 29, 2013

On May 29, the Brazilian Development Bank (BNDES) and Finep, supported by the Ministry of Agriculture, Cattle-Raising  and Food Supply, released the Inova Agro call-to-bid, a federal government plan that will allocate R$ 1 billion for innovation in the cattle-raising and agriculture sector.

The program will support domestic companies to develop and consolidate production chains of inputs for the cattle-raising and agriculture sector, foster the development of products and processes in the food industry, and stimulate the production of machinery and equipment for industry, as well as fostering the use of new technologies.

 Inova Agro is part of Inova-Empresa, a federal government initiative that will allocate R$ 32.9 billion for innovation over the next two years. The resources can be used for all cattle-raising and agriculture sectors and agro-industrial sectors, except for the sugar and ethanol sector, which already has its own program to foster innovation, namely PAISS.

Inova Agro has initial resources of R$ 1 billion, divided between the BNDES and Finep, and it its budget may also be expanded, depending on demand. Brazilian companies that are interested in undertaking innovation activities related to specific lines, as well as producing and trading the products and services resulting from their activity, may participate in the selection process. The three specific lines are inputs, machinery and equipment for processing, and agribusiness.

Companies interested in receiving resources from the program will have to submit business plans, as leading companies, or enter into partnerships with leading companies to act as partner companies. Scientific and Technological Institutions (ICTs) can also register, and they can enroll through partnerships with leading companies.

 Inova Agro’s public selection will be conducted by an Assessment Committee formed by BNDES and FINEP representatives, and will be held in five stages, namely: Expression of Interest, Selection of Descricaoing Companies, Submission of Business Plans, Selection of Business Plans, and Joint Support Plan Structuring (PSC).

The support limit for projects will be 90% of the total amount, and the company or group of companies will have to contribute with minimum financial support of 10%.

Projects can be supported through funding, non-reimbursable credit, shares or a combination of these instruments. The deadline for companies and ICTs to submit letters of expression of interest is July 15.

For Inova Agro details click here.