Jim Carroll: I’ve got a number of keynotes coming up in the New Year focused on the agricultural sector, and have done quite a few in the past. I’m preparing for a series of events at the end of February, and now is a good time as ever to put up a list of what I see happening.
- Massive growth in food demand: The UK Food and Agriculture Association estimates that the world population will increase 47%, to 8.9 billion, by 2050. That’s a potentially huge food marketplace. While many growers see the world of agriculture as being full of challenges to be overcome, they should be focussed on the fact that the industry is full of opportunity.
- A continuing rampup in efficiency: Simple fact: global agriculture must double in the next 30 years to sustain this type of population growth. Add this reality check: there is little new arable land in the world. The result is that existing producers will have to continue to focus on smarter, better, more efficient growing in order to meeting demand.
- Hyper-science: One of the realities of the infinite idea loop in which we now find ourselves is this: while there are 19 million known chemical substances today, the number is constantly doubling every 13 years… with some 80 million by 2025, and 5 billion by 2100. Science is evolving at a furious pace, and with science at the root of agriculture, we will continue to see constant, relentless new methods of improving crop and livestock yield.
- Innovation defines success: The triple-feature need for growth, efficiency and ingestion of new science indicates that agricultural growers must continue to focus on efficiency: how can they continue to adopt new methodologies, products, partnerships and ideas in order to deliver.
- Retail and packaging innovation drive agricultural decisions: Do this: stare at a banana. Did you know that Chiquita banana has come up with a special membrane that doubles the shelf-life of the product, doing this regulating the flow of gases through the packaging? Take a look at Naturepops: each lollipop is wrapped in fully bio-degradable film made from plant matter, and the bags they come in are made from recycled paper, water-based ink and poly lactic acid made from cornstarch. There’s a huge amount of innovation happening with packaging companies and on the store shelf, and all of these trends have a big impact on agriculture.
- The energy opportunity: Agriculture is set to play a huge role as we wean ourselves away from our dependence on oil and natural gas. The US Department of Energy plans to see alternative fuels provide 5% of the nations energy by 2020, up from 1% today. And it is expected that there will be $1.2 billion in new income for farmers and rural landowners by getting involved with new energy sources such as windpower. Europe plans to have a market that involves at least 20% usage of bio-fuels by 2020, and Feed & Grain estimates that liquid fuels from agricultural feed could replace 25% to 30% of US petroleum imports by that time.
- Rapid preference shift: We will continue to see rapid change in consumer taste and expectations. For example, it is expected that fresh-cut snacks grew from an $8.8 billion market in 2003 to $10.5 billion by 2004, according to the International Fresh-Cut Produce Association, as part of a trend in which produce and fruit continue to compete with traditional snacks. Expect such unique trends to growth both in terms of number and rapidity.
- Hyper-connectivity: Our lives are soon to be transformed by intelligent packaging, such that ten years out, its’ role will have been transformed from being that of a "container of product" to an intelligent technology that will help us in use of the product. A key part of this trend involves connectivity: all food products are about to become linked into through intelligent connectivity technologies, in all phases of growing, shipping and sale to the consumer.
- Direct consumer-producer relationships blossom: As this technology evolves and as people become more concerned about the safety of what they eat, a natural result is a frenetic rate of growth in direct relationships between growers and consumers. Check out SouthDakotaCertifiedBeef — that type of thing defines the future of this trend!
- Generational transformation: perhaps the biggest trend is that we are about to witness a sea-change in the rate by which new ideas in the world of agriculture are accepted, as a new generation of technology-weaned, innovative younger people take over the family farm.
- Partnership defines success: If there is one trend I emphasize in every industry I’m involved with, it is that no one individual or organization can know everything there is to know. As I indicated in my I found the future in manure article, this trend is also becoming prevalent in agriculture. We will continue to see an increasing number of partnerships between growers and advisers, suppliers, buyers, retailers and just about everyone else, so that they learn to deal with the massive complexities that emerge from rapid change and innovation.
Wait — that’s 11 trends! And that’s indicative of just how rapidly this industry is set to be transformed……
