Agribusiness refers to the production, processing, and distribution of agricultural and livestock products. The main producers of agricultural goods are China, the United States, India, and Brazil.
Trends in agriculture:
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Global population growth and increased demand for agricultural products
According to a FAO UN report, by 2050, the world’s population will reach 10 billion, increasing demand for agricultural products by 50% compared to 2013.
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Use of GMOs
Genetically modified organisms (GMOs) enhance agricultural productivity, but companies must prove their safety not only to experts but also to the general public.
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Digitalization of consumers
Modern consumers expect the same quality of experience from the agricultural industry as they do from other sectors.
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Automation of farms
Robotics is being integrated into most farming processes, from livestock breeding and crop cultivation to final logistics. An interesting example is the technology of automatic weed detection and removal.
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Remote sensing
Various remote sensing methods, including field sensors, drones, and satellite imagery, enable detailed, high-frequency monitoring of crops from different perspectives, including real-time analysis.
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Machine learning and analytics
Applied in various ways, such as predicting the optimal crop composition for specific locations and climates before planting. It also helps analyze satellite data to differentiate crops like corn and soybeans, providing valuable insights for agricultural insurance, logistics, and commodity markets.
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Blockchain in agriculture
One of the largest agricultural traders, Louis Dreyfus (HBC), conducted the first agricultural trade transaction using ING’s blockchain prototype. The deal was completed five times faster than traditional transactions and eliminated the need for paper contracts, certificates, and manual verifications.
The impact of agriculture on the global economy:
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Over 60% of countries depend on agriculture for food, income, and jobs
The rural population makes up 67% of the world, agriculture accounts for 39.4% of global GDP, and agricultural products constitute 43% of global exports.
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Agriculture is the 11th largest sector for foreign investments worldwide
The agricultural sector ranks 11th out of 39 industries in terms of foreign investments in new projects (data from FDi Markets). Since 2003, 6,729 projects have been registered.
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Agriculture plays a key role in international trade
Agribusiness is one of the most significant drivers of trade between countries, making up a large portion of export products for many nations.
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Food security as a critical element of national sovereignty
Sharp increases in food prices have historically led to civil unrest, while the risk of food blockades has triggered military conflicts. Governments are investing in ensuring stable food supplies for their populations.
