The ever-changing agribusiness industry undergoes many economic shifts that bring along advancements in the industry. As the agribusiness industry and the need for higher production increases, the world population is increasing right along side. This poses a greater demand for more resources to feed the world.

Many trends are shaping the industry, allowing farmers to increase their production and work more efficiently in order to keep up with the high demand for resources all over the world. Here’s a list of four 2016 trends that the agribusiness industry is adapting to today:

Technology is shaping the industry

Technology is no longer a trend of the future. Technological advancements in the agribusiness industry have been utilized to help bridge the gap between food demand and limited resources. More farmers are turning to mobile technology, RFID tracking and livestock biometrics, equipment telematics, and wireless crop and soil sensors in order to increase profits and efficiency, and improve day-to-day farming operations. With this advanced technology, farmers now have greater control over their resource production.

Demand increases while supply decreases

According to the United Nations Department of Economic and Social Affairs, the world population is projected to reach 9.7 billion by the year 2050. This poses a potential risk for the agribusiness industry and the fear that production won’t be able to supply enough food to meet the demands of all the individuals. According to Watt Ag Network, in order to feed a global population this high, the world will require 50 percent more energy, 40 percent more water and 35 percent more food, which seems like a daunting task for the agribusiness industry. As the population continues to grow, farmers will have to piggyback off new technology in order to produce more resources in less time.

High demand evokes higher efficiency

The projected population increase means that the agribusiness industry will need to double in production in order to sustain this type of growth. The issue with needing more food production is that this can be difficult without an increase in available land resources. As available cropland slowly diminishes, farmers will have to adopt new production techniques to be more efficient and keep up with the increasing demand for resources all over the world. The booming agribusiness industry has its arms wide open to new, potential opportunities.

Weather patterns can halt production

High precipitation and extreme temperatures can prevent crops from growing. Floods and droughts are the biggest culprit that can harm crops, affect livestock, reduce yields, and raise prices. In particular, the corn industry has suffered crop failure, resulting in a price increase for the most stable food source in South Africa. Droughts will continue to be an ongoing challenge for the agribusiness industry, and although many farmers do invest money into irrigation systems, this isn’t always an option in regions with a limited water supply.

According to The Guardian, there is some evidence that proves that climate change is already having a measurable effect on the quality and quantity of food produced globally. Although climate change is impacting the agribusiness industry, it is a relatively small amount when compared to the significant increase in global food production achieved over the past few decades.

Agriculture expertise by Gateway Globalization

With technological advancements in the agribusiness industry, our team understands the need for technical translations. We help to bridge the communication gap between those who develop agribusiness products, those who sell the products, and those who use the products. A cohesive understanding on all levels is what helps to make the agribusiness industry so efficient. As technology in the industry continues to advance, we’ll advance with you. We’re here for all your agribusiness needs. Contact us to learn more about what we can do for you in the agribusiness industry.

 

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