Global agribusiness is going through a major transformation, as demand for food is expected to increase globally by 2% per annum through 2022. This is driven by long-term demographic trends and the need to feed an increasingly hungry planet. Rising awareness of these forces has triggered increased investment in agricultural biotech, farm mechanization, irrigation and other farm yield enhancement controls.
In order to meet expected demand, food growth production will need to rise and significant investment will be required in coming decades to optimize harvests. It will also be required to ensure that crops move efficiently from growth to consumption, whether destined for food, feed or fuel. In this Executive Insights, L.E.K. Consulting discusses the recent major trends in agribusiness investment as well as the most promising current agribusiness investment areas, including value chain integration and technology and biotech. The near term future is likely to be a period of great change, and many attractive opportunities exist for investors. However, the winners will be those who invest in sound, value-creating strategies given the shifting industry landscape.