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Global Agriculture Market Analysis

The production of agriculture across the globe is predicted to expand by nearly about 1.5 percent annually in future as reported by OECD (Organization for Economic Cooperation and Development). The prices of goods are projected to diminish as compared to the year 2011 data. It will average at twenty percent or lesser than that for cereals and thirty percent or lesser than that for meats during the next decade. Owing to growing manufacturing costs, crops comprising oil seeds and coarse grains will display lesser yield. There will be less change in cattle production with per capita income set to increase greater than 0.5 percent every year.

Growing worldwide population is putting enhanced pressure on agriculture sector to fulfill the demand for food. Vital breakthroughs and significant growth in seeds, fertilizers and chemicals has assisted the agriculture industry in satisfying the demand for food. With the global population set to expand by 1.2 billion before the culmination of this decade and regular calorie consumption rising by more than 500 calories per day during the last few years, the intake of food will continue to grow and farmers will become growingly dependent on mechanization and technology to enhance food production. By end of year 2050, there will be more than three billion to be fed owing to which the demand for production of meat will increase by about three fourths and cereal output will have to be improved by one billion tons.

Industry Overview

Countries like Ukraine, Russia and Brazil are all set to join (or belong to) the group of the nations like European Union, USA and Australia who are the long standing exporters of agricultural commodities. Factors like limited cultivatable land , changing climate and growing expenditure on equipments and materials like fertilizers are some of the challenges that are faced by agricultural industry.

Today, there is 1.5 billion hectares of cultivable land in the world and it is worth 5 trillion dollars. Lesser direct factors and elements like rules, revenues and rate of interests also affect the growth of the agriculture sector. With 13 billion dollars already invested in agriculture sector or agriculture related industry since year 2007, the market is going to observe enhanced business investment. The agriculture segment is expected to focus on enhancing the production by using scientific methods of production and through technological innovations.

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