The agribusiness industry is changing across many different fronts. The effects of the COVID-19 pandemic have sped up these transformations, from shifts towards “clean label” products and change in food preferences to a rise in agritech adoption and development to sustained low commodity prices for farmers and much more. This all means we should expect significant growth in agriculture, fishery, and forestry. If you are an agricultural producer or agribusiness player, here are some trends you should be aware of in the coming years:
Agriculture Technologies
Agritech has been a major game-changer for the past five to ten years. It has transformed how farmers work in and around their fields, raise animals, and the entire demand-supply chain. A good example is crop biotech, which continues to create new seed types with different traits and provides alternatives to crop chemicals through biologic compounds.
Increased investments in agriculture technologies have brought about numerous innovations leading to advancements in agriculture over the past years. Here are a few examples:
Prescriptive/precision agricultural tech. Data from monitoring equipment such as satellites and drones give farmers information on the status of their crops and fields. Precision agriculture enables them to make informed decisions such as when and where to plant, apply fertilizers, and harvest. This will significantly decrease cost, minimize waste of resources, and increase the farms’ yield with less effort.
Indoor growing technologies. Recent innovations in controlled growing environments such as greenhouses, “vertical” farming, and next-generation hydroponics are pushing the boundaries of agriculture. Even though producing food in these systems is more costly, they are more attractive to wholesalers and retailers looking to supply products throughout the year.
Meat replacements. As many more people switch to veganism, technologies that facilitate the production of non-animal sources of protein grow in popularity. These innovations are still in their early stages, and producing meat replacements is expensive. However, leading investors are optimistic it will make a considerable part of the agriculture market in the future.
Focus on Sustainability
Agriculture has unfathomable benefits to the human population. At the same time, it also depletes natural resources and has somewhat of a negative impact on the environment. That is why people are moving to sustainable agriculture, intended to preserve the earth’s natural resources, protect the environment, and enhance soil fertility.
The importance of sustainable agriculture cannot be overstated as it has long-lasting benefits to the environment and humans:
- It ensures the production of high-quality food, fuel, and fiber to meet the demands of the rising population.
- It reduces the depletion of natural resources and pollution of the environment.
- It increases the economic value and importance of agricultural systems.
Carbon-Sequestration
This is the process of capturing and storing carbon dioxide (CO2) in agricultural soil. It is an excellent way to balance CO2 emissions brought about by human activities and climate change. A 2019 report on climate change showed that 23 percent of greenhouse emissions come from forestry and agriculture. Also, the food supply chain is responsible for about 26 percent of this emission. So, in the near future, we will see an increase in carbon-sequestration through sustainable agriculture as the fight to improve food quality, and availability continues.
Plant-based Foods
The global consumption of animal-sourced protein has steadily increased since the 60s. This is partly a result of the rising income levels in developing countries. However, this growth is not so evident in economically developed countries such as the EU, the US, and some parts of Asia. Instead, we see a rapid shift towards the consumption of non-animal proteins found in plants and insects. Lux Research predicts that meat alternatives will have a 33 percent share of the total protein market by 2054.
As more people switch to solely plant-based diets, large corporations will need to start offering vegan meals on a much larger scale to stay relevant. For example, in 2020, the Vegan Society reported that all major UK supermarket chains had their own vegan range, and most UK restaurants served plant-based meals.
Water Shortage
Desertification is slowly affecting different regions of the earth’s surface. It not only renders land barren but also brings about drought. Together with the rising threat of climate change, it poses a major threat to agriculture because over 70 percent of available freshwater is used for farming and animal husbandry. However, countries with severe water shortages, such as Israel, are developing cutting-edge technologies to combat the crisis. They also techniques such as precision drip irrigation to enhance water absorption by plants.
Final Word
These are not the only trends sending waves across the agriculture sector. Numerous factors are shaping its future and evolution. Innovations and disruptive technologies are constantly being developed, which provides agribusiness players more opportunities and ways to solve complex problems. However, like with other industries undergoing digital transformation, those who cannot adapt and accommodate new technologies will fall behind and ultimately die out.
