Examining the Biggest Trends in the Agribusiness in 2016
The world’s population depends on the agricultural sector for food security. However, some individuals and companies depend on agriculture as their primary source of income. The agriculture business has experienced tremendous changes over the years as producers respond to new global trends and an increasing demand for food. Some of the biggest trends in the sector are discussed below.
Data analytics has become popular in all sectors, including agriculture. Many business owners are choosing to enroll in an online MBA program, as most certified online MBA programs provide the tools necessary to collect and analyze big data in their businesses.
Producers and suppliers in the agricultural sector use big data to determine the best products to supply. As the world’s population gains more knowledge about healthy foods, its food choices are changing. Consequently, producers have to adjust their farming practices to suit their clients’ preferences. Data analytics helps producers keep track of changes in preferences.
Modern technology is now part of agriculture. Producers have adopted new farming technologies to meet the rising demand for food. Technology is also used to record and analyze the production process. Producers increase their efficiency and speed in supplying food products to the market with current technology. Suppliers, on the other hand, use technology to eliminate unnecessary delays and failures in their supply chains. Modern technology has also enabled consumers to order for fresh produce online and receive it at their doorstep. Social platforms have linked producers to new consumers and suppliers.
The increasing demand for food in the world has attracted new players in the agriculture business. At the same time, many governments have introduced stringent new measures to ensure that consumers get safe and quality products from producers. New regulations in the industry are a burden to farmers. Farmers are expected to track the source and contents of their inputs. In addition, some countries have raised the minimum standards for their imports.
The world population is expected to increase to 9 billion by 2050. An increase in population leads to an increase in the demand for food. However, the projected increase in the demand for food is higher than the expected increase in the global population. The population will grow by 18% while the demand will increase by 35%. Another demographic change that will affect the agriculture business is the increase in the purchasing power of the middle class. The change in their buying power will influence their food choices, which will in turn influence farming practices.
More than half of the global population lives in urban areas. The number of people living in cities is expected to double in the coming years. An online MBA equips players in the agricultural sector with statistics that have a significant impact on their processes and operations. Producers and suppliers have been adjusting their distribution channels to meet the rising demand for food in urban areas. Farmers have also adopted new methods of farming that suit urban areas. For instance, hydroponics has become popular among urban farmers.
Global changes such as new technologies, increased urbanization, and the increase in the world’s population have had a significant effect on the agriculture business. Players in the sector have to adjust their processes and practices to remain competitive and relevant. The rising demand for food has caused most of the new trends in agriculture.