investment in agriculture sector

Published by on November 13, 2020

Nov 15, 2020, Rhian Hunt | CF earnings call for the period ending September 30, 2020. The scale required for operations to span multiple continents, account for geopolitical shortcomings, and insulate crops from the risks of weather patterns and commodity markets has created a long list of agricultural titans. The market has been challenging in recent years, but fertilizers remain an essential part of food production. Pesticides are another agricultural input that has faced challenging market conditions in recent years, and for many of the same reasons as fertilizers. Advancements in data crunching, satellite imagery, and mobile computing power have given rise to digital agriculture. For those looking for wider exposure to the agriculture sector, making equity investments in crop producers, supporting firms or ETFs could be their best option. All rights reserved. For now, investors can only watch and wait for these futuristic opportunities to become accessible to their portfolios. Biologicals are microbe-based treatments of soils or crops designed to boost yields, improve plant defenses against pests, and potentially reduce dependence on chemical inputs. How many seeds should a farmer place in each row in the northwest corner of their land? A number of agribusiness applications on the horizon aren’t quite investing opportunities yet but should be part of an agriculture investor’s watchlist in the years ahead. Thus these companies must partner with and create supply agreements with the world’s largest agriculture companies, such as Archer Daniels Midland, Bunge, and Tyson Foods. Bunge is one of the world’s largest soybean producers and processors, which could keep the company in prime position, considering soy protein is a leading source of plant-based proteins (for example, Impossible Foods uses soy). October 17, 2020 Stay up-to-date by subscribing to our newsletter: Contact | Privacy | Cookies notice | Terms & Conditions. Is your portfolio exposed to the opportunity? For the time being, vertical farming is relatively inaccessible to individual investors. Unfortunately, the recent rising trend of large-scale land acquisitions is worrying because in some cases, small-scale producers’ rights have been abused and their land taken. Vertical farming is a hyped technology, but relatively impractical at present given the scale required to make it work. Prime Minister, Dr. Ruhakana Rugunda, re-echoes Mweheire’s views saying the sector requires innovation, mechanization and other investment by farmers, agricultural input suppliers, processors, traders, storage firms, exporters, distributors, financiers and many other actors along the agricultural value chain in order to attain full commercialization. Agribusiness is a life-sustaining operation, and there are numerous ways for investors to own a piece of this action. The measures aimed at tackling the health crisis by the Government within the context of the pandemic have had short, medium and long-term impacts on food and nutrition. Flavors and fragrances are high-margin products mostly manufactured through synthetic chemistry, but specialty agriculture has a place in the market, too. In 2018, Bayer acquired Monsanto to become the most dominant player in the industry. Therefore, it is critical now more than ever to understand what types of investment in agriculture are needed, how they should be governed, and how they can be beneficial for all stakeholders—companies, governments, and farmers. As part of Oxfam’s GROW campaign, we are advocating for increasing positive investment in sustainable small-scale food production. From its acquisition of Monsanto, Bayer now has the leading biologicals brand on the market today through a partnership with Novozymes. Today agribusiness is big business, touching a large array of different market industries. See you at the top! Nov 24, 2020, Rhian Hunt | Oxfam's GROW Campaign to ensure a future where we all have enough to eat, always. And while this might be a new opportunity, hundreds of millions of acres are covered as of early 2020. Unlike consumer staples stocks, these companies tend to follow broader economic trends during times of expansion and recession. The company has invested heavily to expand its retail segment, which allows it to capture higher-margin sales by selling directly to farmers. That can make fertilizer applications more efficient or less necessary and improve overall plant health. The company expects to cross $1 billion in online sales for the first time in 2020. The expectation of the government is to become fully self-sufficient by 2025. Private sector investment can play a vital role in delivering inclusive economic growth, environmental sustainability and poverty reduction if it adheres to some key principles, such as focusing on local food markets, working with producer organisations and respecting the rights of small-scale producers, workers and communities. These companies have typically performed well for investors, but they come with risks, too. To manage this growing opportunity, Archer Daniels Midland has added a “Flexitarian Solutions” department to its company -- although management is quick to note the company developed textured vegetable proteins in 1966. When’s the optimal time to apply fertilizer this season? One focus is engineering high-protein, neutral-tasting chickpeas, which could become a next-generation plant-based protein source. And in a series of transactions from 2018 to 2019, FMC completed the spinoff of its lithium segment, sold its nutrition segment, and purchased assets from the old DuPont to become one of the largest global agrichem companies. Industrial biotechnology will need to leverage established agricultural supply chains to reduce operating costs, and the industry is still figuring out how to scale and what products to manufacture.

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