Overview
- The pilot used ten dairy cows from Fazenda Engenho Velho as collateral for a R$100,000 CPR-F loan originated by BMP, assigned to Target FIDC, and formally registered on B3 on July 23–24.
- Cowmed fitted each animal with an AI-powered smart collar that records health, behavior and location data and cryptographically hashes those readings into a tamper-resistant digital ID linked to the loan contract.
- Target FIDC said continuous tracking addresses the verification gap that has forced banks to steeply discount livestock values, and the collars include safeguards to prevent double-pledging and to substitute animals that die during the loan term.
- Cowmed currently monitors about 100,000 cows and partners estimate that roughly 20% adoption of the model among monitored producers could support hundreds of millions of reais in registered credit, though wider scale depends on data integrity, legal recognition and risk controls for disease and price swings.
- For farmers, the model offers faster access to working capital when bank lending is tight, but regulators, lenders and tech teams must still integrate processes and manage biological and market risks before the approach can move beyond proof of concept.