By 2050, the world’s population will reach 9.1 billion, 34% higher than today and food production is to increase by around 70% for an additional 2.3 billion people by 2050, as per the Food and Agriculture Organization (FAO) of the United Nations. With the increasing population, the demand for food is also going to increase in the agriculture sector. The ongoing integration of technology and smart farming equipment can live up to the expectations of providing essential food in the coming years.
Agribusiness is one of the essential factors of the agriculture industry as it deals with the various agricultural products as an integrated system. Manufacturers are developing increasingly new advanced machines that can help in improving efficiency and deliver sustainable products.
Why agribusiness is important?
Agribusiness is the sector that deals with farming and farming-related commercial activities such as production, processing, market fit product, and distribution. Agriculture-related commercial activities include a wide range of companies right from small companies to large conglomerates producing food and agricultural food products.
Governments across the globe are taking new initiatives for the agriculture sector such as favorable Free Trade Agreements (FTA). FTAs have a large impact on the agriculture sector as they help expand global market opportunities for U.S. producers and exporters. With the favorable agreements, the increasing adoption of smart agriculture techniques for
How technology can change the overall course of the agriculture sector?
Agriculture plays a very important role in the economy of any country. The demand for food is rapidly increasing but the lands are constantly shrinking with the decrease in the rate of crop yield every year. The integration of advanced technologies such as the Internet of Things (IoT) and Artificial Intelligence in agriculture can help in increasing crop yield.
New technology is continuously integrated into agribusiness as it helps in helping farmers with advanced features for better results. AI-enabled soil health tracking system is one of the prominent technologies used to examine soil health. This technology helps to examine soil and delivers an in-depth analysis of soil fertility levels and provides nutrient management solutions.
New drone technology has gained a lot of traction in recent years as it offers several advantages to farmers. This technology is used for soil and field analysis, planting, and crop monitoring.
What is the future of Agribusiness?
With the increasing adoption of AI-enabled technologies such as machine learning (ML) and the Internet of Things (IoT), the agriculture sector is expected to grow at a rapid pace. Controlled Environment Agriculture (CEA) is going to make a big change in farming.
Controlled Environment Agriculture is the production of plants and their products such as vegetables, fruits, and flowers inside a controlled environment structure such as growth chambers, vertical forms, and a greenhouse. With the help of CEA, farmers can produce high-value crops at maximum productivity in an environmentally friendly and efficient way.
With the use of CEA, farmers can grow crops in all seasons as seasonality does not matter as the farmer can control the light cycle, humidity, and temperature of crops. Indoor farming allows the farmer to grow their popular crops all around the year. Another advantage of CEA is the minimality of crop damage. As the crops are grown indoors, the risk of crops getting damaged due to pollution, bad weather, pests, and drought.
Companies such as Bayer CropScience, LLC; Cargill, Inc.; The Monsanto Company; Syngenta Crop Protection; Nestlé S.A.; Wilmer International Limited; Associated British Foods PLC; Brasil Agro; Bunge Limited; Cairo Poultry Company; CHS, Inc.; LT Foods, Ltd.; Nutrien; Deere & Company; BASF SE; CNH Industrial N. V.; The Archer-Daniels-Midland Company; and Others offer various agribusiness services and solutions
New and innovative technological developments are estimated to bring efficiency to agribusiness and create lucrative opportunities for key market players in the coming years. The global agribusiness market size was valued at around USD 3 trillion in 2021 and is expected to expand at a high CAGR during the forecast period, 2022 – 2030.
The rising demand for developing and launching innovative technologies such as sensors, drones, and others can open up new opportunities for the market players in the coming years.