Capturing 128M Tonnes CO2/eq via Precision Livestock

The cattle production industry is one of the most inefficient and environmentally damaging, yet it also has significant potential to rapidly and meaningfully impact climate change. This is because methane, which cattle produce, has a much shorter atmospheric lifetime than carbon dioxide, 12 years vs hundreads years. By reducing methane emissions from cattle production, we can quickly generate substantial environmental benefits.

Over 2 gigatons of CO2-equivalent losses are associated with nutrition-related issues in cattle production, including:

1. A 30%+ gap between the theoretical diet formulation and what the animals actually consume, due to factors like feeding instructions, mixing systems, feeder conditions, and uneven consumption by competing animals.
2. Lack of systems to monitor losses between the formulated diet and the animal's intake.
3. Challenges in synchronizing energy and protein in the animal's rumen to optimize the nitrogen cycle and reduce nitrous oxide emissions.
4. Difficulty in managing individual animal supplementation and energy-protein synchronization.
5. Operational challenges in monitoring individual animal performance through weighing.
6. Lack of incentives for producers to adopt methane-reducing additives if there is no direct impact on animal performance that can be measured.

Feedvax has developed a smart cattle feeder called Vetkiosk that can individually identify each animal and provide customized feed and health treatments to improve production efficiency through the following capabilities:

Continuous 365-day control:

1. It can be programmed to deliver the desired amount of feed to each animal at specific times and rates to adapt them to the new diet.
2. The device feeds the animals 365 days a year without interruptions and reports any issues immediately.
3. It records the consumption of each animal in real-time.
4. Sensors in the feed hopper monitor fill levels to prevent run-outs.
5. An AI-powered adaptive algorithm adjusts the feeding program.
6. Future integration of a machine vision camera will enable automated weight and body condition monitoring to further optimize diets.
7. Early detection of behavior changes can alert to potential health issues before visual symptoms appear.
8. It can monitor the consumption of feed additives like methane-reducing supplements.

Cost Savings:

1. The sealed hopper prevents feed waste from weather exposure.
2. Each animal receives the planned optimal ration.
3. Labor is reduced by automating repetitive feeding tasks.

Performance Improvements:

1. The gradual feed adaptation algorithm has achieved 25% better feed efficiency in weaned Holstein calves.
2. Weight gains in finishing steers have increased by 300g/day compared to free-choice feeding (1,5kg/day Vetkiosk vs 1,2kg/day control)
3. These feed efficiency and growth benefits also translate to improved fertility, animal turnover, and milk production, while early disease detection reduces mortality and morbidity.

In summary, this solution aims to drive over 40% improvements in cattle production efficiency and environmental impact. If deployed to 7% of the global cattle population, it could reduce emissions by 128 million tons of CO2-equivalent annually.

Our solution is primarily aimed at beef and dairy cattle producers, both large and small, who are receptive to adopting new technologies. We have initially focused on dairy farmers in the Córdoba province, as they are in close proximity for the necessary technical support in the early stages.

The solution was designed with producers in developing countries in mind, where access to credit can be a barrier. Our "pay-per-use" business model, rather than requiring upfront purchase of the hardware, helps make the technology more accessible.

As we started to have the first prototypes, we tested them on producers' farms. It took us a lot of time to fine-tune the value proposition and find the pricing according to the payback

The key unmet needs that this solution addresses for cattle producers include:

1. Lack of practical, feasible, and affordable systems to monitor daily farm operations.
2. Lack of reliable ways to supplement individual animals with feed and treatments.
3. Shortage of qualified and responsible farm labor.
4. Lack of available bank financing for purchasing new equipment.
5. Absence of more accessible business models to acquire technologies and improve production.

By providing the smart Vetkiosk feeder system, we are addressing these critical gaps that have traditionally prevented cattle producers, especially smaller-scale ones, from optimizing their operations and achieving better productivity and efficiency. The continuous monitoring, individualized feeding, early health detection, and streamlined labor requirements of the Vetkiosk solution directly serve to improve the lives and livelihoods of this target farmer population.

Luis Barletta is a veterinarian who has worked as a veterinary advisor in different regions like Patagonia, the Pampas, and the Amazon. He was also a cattle producer for over 10 years. He has intimate knowledge of the needs, culture, and potential of cattle production. The drive to start Feedvax came from having experienced many of those pain points firsthand and seeing them as an opportunity.

Feedvax is the fifth company that Luis has founded. He is passionate about science, animals, and wildlife.

Franco Masnyj, the project manager for Vetkiosk, is also a veterinarian who previously worked in that role before taking on a demanding job as the veterinarian for a 30,000-head feedlot. He experienced first-hand the challenges of implementing all the recommended nutritional and health practices in a production setting.

With the goal of generating value through precision livestock farming, we started working on the initial prototypes together with producers in Río Cuarto, Córdoba province. While the early prototypes were quite poor, they allowed us to have regular conversations with producers to drive continuous improvements. We later also incorporated a local technical college, getting feedback from both teachers and students.

Today, we have 14 devices installed on different farms. Much of the management and monitoring is now done remotely, complemented by periodic in-person meetings with the on-site operators, technical advisors, and farm owners.

This deep experience and close collaboration with the target cattle producer community, both through the founders' backgrounds and the iterative prototype development process, well positions the Feedvax team to design and deliver a solution that is closely aligned with the needs, culture, and agenda of the farmers they aim to serve.

We are currently in the transition between a late pilot phase and early growth stage.

• We have 14 MVP (Minimum Viable Product) devices deployed with paying customers. We have secured multiple rounds of investment, including a pre-seed round and a bridges rounds.
• We have 5 different customers, all of whom have renewed their agreements after the initial 3-month trial period.
• We have received orders from Chile and Uruguay that we are not yet ready to fulfill due to capacity constraints.
• We are developing a new device that will cost 60% less to manufacture compared to the current model. This updated design is expected to be ready by September 2024 and will be much easier to scale up production.

While we do have a need for capital to complement some cash flow gaps, our primary goal is to become a globally impactful company. Engaging with MIT through the Solve program brings us closer to the markets and decision-makers where we can make the greatest difference.

Beyond just the valuable network access, there are a number of specific knowledge areas from MIT that we would be eager to leverage, as outlined further in this application.

Feedvax is the new "Netflix" of animal production.

Just as Netflix revolutionized the entertainment industry by eliminating the need to physically visit a video store, choose from limited options, wait in lines, and return rentals, Feedvax aims to simplify livestock production in an unprecedented way.

Historically, the majority of the production process has occurred in the "dark" - lacking real-time information and analytics. The mechanisms for feed, additive, and veterinary product delivery are over 200 years old and require manual, labor-intensive animal handling. Rural labor shortages also pose major challenges.

This is why a solution like Vetkiosk, which solves all of these issues through a user-friendly "pay-per-use" business model, is truly unique in the world. We will be able to generate algorithmic improvements and update the software to enhance the service with a single click, deployed across all devices. We can also help solve disease issues and assist veterinarians with diagnoses, requiring far fewer farm visits.

Moreover, the data we generate can empower the animal nutrition and veterinary industries to improve their own products and services. We are positioned to add value across the entire livestock production value chain.

This transformative, technology-driven approach to streamlining and optimizing a historically manual, information-poor industry is highly innovative. It has the potential to catalyze broader positive impacts by setting a new standard for precision, efficiency, and sustainability in animal agriculture worldwide.

For the Feedvax case, a more complete theory of change would include:

Inputs:

Vetkiosk smart automated feeding system
Data analytics and precision livestock management capabilities

Activities:

Commercializing and scaling deployment of Feedvax solutions
Educating and onboarding farmers/producers on the technology
Collecting real-world data and insights from Vetkiosk usage

Outputs:

Increased access and utilization of preventative veterinary treatments
Reduced manual animal handling and associated stress/welfare issues
Enhanced data-driven decision making for more sustainable and eficient production

Outcomes:

Reduction in livestock disease, antibiotic use, and food waste
Lower greenhouse gas emissions and carbon footprint of animal agriculture
Improved nutritional quality and sustainability of food supply

Impact:

Enabling a low-carbon, nutritious global food system that works for producers of all sizes

Zero Hunger:

• Increase Productivity and Production
  • Average daily weight gain through Vetkiosk vs. historical baseline
  • Time to detect abnormal consumption behavior (days)
  • Improvement in feed conversion ratio

Responsible Consumption and Production:

• Sustainable and Efficient Use of Natural Resources
  • Feed conversion ratio (kg feed/kg gain)
  • Reduction in feed waste (% decrease vs. baseline)
• Reduce Food Losses Along Production and Supply Chains
  • Total tonnes of feed that goes through Vetkiosk
  • Improved reproductive performance (calving rates, calf weaning weights)
  • Reduced livestock mortality and morbidity rates

Life on Land:

• Combat Desertification
  • Reduction in supplemental feed required under grazing conditions (% decrease)
  • Improved pasture utilization and soil health metrics

At the heart of the solution is a smart, connected device that functions as a robotic cattle feeder. This device is equipped with a variety of sensors and IoT (Internet of Things) hardware that enable it to perform its core functions.

The device is operated and maintained through multiple software layers:

• Embedded software running on the device itself to control the feeding mechanisms, monitor sensor data, and communicate with the cloud.
• Mobile applications that allow your team to remotely interface with the devices, monitor performance, and make adjustments.
• A software platform that aggregates data from all the deployed devices, enabling advanced analytics and remote maintenance.

Artificial intelligence (AI) and machine learning (ML) are integrated throughout the system:

• AI algorithms are used to detect any issues or anomalies with the device's performance, triggering alerts and potential remote troubleshooting.
• ML models are being developed to create a dataset of animal images, which will then be used to train computer vision capabilities for automated weight and body condition monitoring.

Additionally, the solution is being architected with blockchain technology in mind. This will provide a more secure, transparent, and tamper-resistant means of tracking the data and operations associated with each device.

The combination of robotic hardware, sensor networks, software platforms, AI/ML, and blockchain technology allows our solution to deliver the precision livestock management capabilities that are central to your value proposition. This advanced, data-driven approach to cattle feeding and health monitoring is a significant technological advancement over traditional manual methods.

Feedvax has a team of 26 persons, between part and full time.

In Vetkiosk, the solucion we are presentening here, has 12 in total. 4 full time, and the rest part time.

Luis Barletta has been working for 6 years in this project, Feedvax started in 2019.

Vetkiosk team has been working in this solucion for 4 years

At Feedvax, we value diversity and inclusion as fundamental pillars of success. While we don't have a specific policy, we have taken concrete actions to ensure an equitable and welcoming environment for all team members.

1. Diverse Leadership: Our leadership team reflects a variety of genders, cultural backgrounds, and skill sets. We believe this diversity in decision-making enriches our strategies and solutions. Our management team is composed of two women and two men.
2. Internal Goals: Though we don't have formal goals on this topic, we strive to increase diversity in our hiring. We actively seek out candidates from underrepresented groups and promote equal opportunities. Feedvax company currently has an equal number of men and women.
3. Specific Actions:

• Training and Awareness: We offer unconscious bias training and promote understanding of the importance of inclusion.
• Equal Opportunity Policies: We ensure all employees have equitable access to growth opportunities.
• Employee Support Networks: We have created employee resource groups to support women, and people with disabilities.

  4. Inclusive Environment: We foster open communication, recognition, and        prevention of harassment. We want all members to feel valued and           respected.

By embedding these principles of diversity, equity, and inclusion into our team and culture, we aim to drive more innovative and impactful solutions that serve our diverse target communities. We believe this commitment to an inclusive work environment is essential for maximizing the potential of our team and the overall success of our venture."

Our initial target customers are dairy producers in the Córdoba province, with plans to then expand across the LATAM region once we've met certain scalability parameters.

Knowing that our offering is highly novel, we're seeking a business model format that lowers all entry barriers and concerns for the producer to adopt it. Additionally, there is little to no long-term credit available in this region.

We've structured the service offering in two stages:

• The initial stage has the producer trial the methodology with a loaner equipment setup (usually two devices).
• Once they've completed this trial period, the contract is renewed with a slightly higher cost that includes amortization of the equipment. The business model here is a Robot-as-a-Service (RaaS).
• In this second stage, we'll add a commitment from the producer to acquire, through leasing or purchase, the new devices that we'll be scaling out starting in September.

Our business is centered around the service, not the device sales. This makes it more attractive for the producer, as they are paying per usage demand.

Pricing: We charge $5 per animal per month, with the current device serving up to 25 animals. The new device we're developing will accommodate 50 animals. As we add more services, the pricing can increase. The rates were set based on ROI analysis, generally aiming for Feedvax to capture around one-third of the resulting producer benefits.

This hybrid model of an initial trial period followed by a service-based, equipment-as-a-subscription approach allows us to minimize upfront costs for producers while generating recurring revenue. The clear value proposition and flexible financing options are key to driving adoption in our target markets.

To date, we have funded all of our development with venture capital (both local and international), as well as a loan that we have already paid back.

Today, we have revenue coming in and are nearing profitability.

Our path to financial sustainability is based on several key factors:

1. Product-Market Fit: We already have 5 paying customers, and they have all renewed their contracts as they've come up for renewal.
2. Large Addressable Market: One-third of the global cattle population is in Latin America. We believe we can reach 7% of that population, or 31 million animals.
3. Attractive Business Margins: We have identified the key parameters that define our business model, and we are improving on those factors faster than our initial projections. The business margins can be quite strong even with a relatively small number of deployed devices.
4. Revenue vs. Burn Rate: We are close to reaching profitability with around 50 feeders installed, which we expect to achieve by the end of this year or Q1 of next year.

The evidence supporting this plan includes:

• The recurring revenue and contract renewals from our initial paying customers
• The size of the target market in Latin America and our projections for adoption rates
• Our detailed financial modeling and continuous improvement of the key business metrics
• The capital we have raised from venture investors, which has allowed us to fund development and start generating revenue

While we cannot publicly share all the specific financial details, we have a clear path to becoming a self-sustaining, profitable business that continues to drive impact for our target customers. The combination of strong market fit, attractive economics, and early revenue traction gives us confidence in our ability to achieve long-term financial sustainability.