PURSUING THE GLOBAL OPPORTUNITY IN FOOD AND AGRIBUSINESS

Food and agribusiness have a massive economic, social, and environmental footprint—the $5 trillion industry represents 10 percent of global consumer spending, 40 percent of employment, and 30 percent of greenhouse-gas emissions. Although sizable productivity improvements over the past 50 years have enabled an abundant food supply in many parts of the world, feeding the global population has reemerged as a critical issue.

 

If current trends continue, by 2050, caloric demand will increase by 70 percent, and crop demand for human consumption and animal feed will increase by at least 100 percent. At the same time, more resource constraints will emerge: for example, 40 percent of water demand in 2030 is unlikely to be met. Already, more than 20 percent of arable land is degraded. Moreover, food and energy production are competing, as corn and sugar are increasingly important for both. Such resource scarcity could lead to political unrest on a large scale if left unaddressed. Agricultural technologies that raise productivity even in difficult conditions and the addition of land for cultivation in Africa, Eastern Europe, and South America may ease the burden, but meeting the entire demand will require disruption of the current trend.

 

Sensing an opportunity, strategic and financial investors are racing to capture value from technological innovation and discontinuities in food and agriculture. Since 2004, global investments in the food-and-agribusiness sector have grown threefold, to more than $100 billion in 2013, according to McKinsey analysis. Food-and-agribusiness companies on average have demonstrated higher total returns to shareholders (TRS) than many other sectors: the TRS of more than 100 publicly traded food-and-agribusiness companies around the world increased an average of 17 percent annually between 2004 and 2013, compared with 13 percent for energy and 10 percent for information technology.

 

Georgia

It can be said that in Georgia, one of the greatest opportunities for  the economic recovery, is in agriculture , because 55 per cent  of the working population is employed in the field of agriculture , At the same time, Georgia has the ability to produce Ecologically clean agricultural products, that has great demand on the world market. However, climate change, new technologies and methodologies do not exist, the lack of qualified personnel in the agrarian sector and the absence of the accurate scientific research, cause  weakens  of agriculturer sector.

 

 

Big data and information

Expanded access to and more sophisticated use of information will play an increasingly important role in agriculture. There is exciting potential to use more granular data (for example, data for every ten-meter-by-ten-meter square of a field) and analytical capability to integrate various sources of information (such as weather, soil, and market prices) with the goal of increasing crop yield and optimizing resource usage, thus lowering cost.

In our view, however, there is still significant progress to be made on figuring out a business model that captures value from data at scale. In part, that is because the data are captured by disparate players in different parts of the value chain (for example, seed companies, equipment manufacturers, traders, and software developers). Managing and capitalizing on the critical data points is likely to require strategic partnerships and acquisitions, and potentially a reshaping of the industry structure. Monsanto’s $930 million acquisition of The Climate Corporation in 2013 was one of several moves by an agriculture giant; other companies, like Deere & Company, have announced partnerships on data with input firms. More opportunities could arise in adjacent areas once integrated, comprehensive data become available.

Meanwhile, emerging markets still lack high-quality, reliable data on production and demand. Establishing a systematic mechanism to capture the data could offer additional value-creating opportunities. In particular, rapid expansion of mobile technologies in rural populations could allow farmers in these areas to greatly improve productivity based on access to better information.

 

Source

http://agroexpo.ge/?cat=1&read_news=172

http://agroexpo.ge/?cat=1&read_news=167

The lowered productivity because of deforestation, advantage of agroforestry and the Your Forest project

 



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