It might seem like a lofty number, but considering the future needs of the planet’s population and the dire situation already present, a valuation of almost a trillion dollars is as real as it gets.
That’s the latest projection by Switzerland’s
UBS, in a report that estimated the agriculture innovation market
could grow to US $700 billion by 2030.
And that projection isn’t a one-off. The market for just the agriculture IoT (Internet of Things) sector, which includes systems-driven precision farming, A.I, and electronic systems, is
expected to grow to US $20.9 billion by 2024 from US $11.2 billion in 2018.
With the pressures of climate change and global hunger overlapping on the industry, part of that drive is coming
directly from the agriculture sector. A recent report by Canada’s National Farmers Union highlighted that current practices
need to change, as farmers need to find ways to
reduce emissions and grow more consistently.
So what farming innovations are governments, farmers, and investors looking at to deliver the change? One of the biggest drivers is precision farming, which looks to reduce inefficiencies in the system. Some like US-based
Hylio are looking to
apply crop-spraying drones, while Canada-based
Bee Vectoring Technologies International Inc. (
TSX-V:BEE) made
headlines with its system of
delivering organic pesticide through bees.
In fact, every part of the agriculture chain has trends and innovations that are driving interest. One play to increase efficiency is by controlling more of the process by
embracing indoor farming, as demonstrated by
Gotham Greens. Another is to look for organic fertilizers that
improve yields of plants, such as those offered by
EarthRenew Inc. (
CSE:ERTH).
But the biggest takeaway for investors looking at agriculture technology is that the money is flowing into innovations. In Canada alone, the federal government recently teamed up with the government of Ontario to announce
$1.85 million dedicated for boosting innovation in agri-food research, and the government of Nova Scotia
just launched an initiative offering capital for innovations for the blueberry market.
Right now those offerings are small, but these are just a small sampling of the large-scale push for agriculture innovations. The US recently announced that it has a tentative deal with China for
double the US $24 billion of agricultural products exported to the country last year. That much food, and the systems that make it possible, has to come from somewhere.
FULL DISCLOSURE: EarthRenew Inc. and Bee Vectoring Technologies International Inc. are clients of Stockhouse Publishing.