The report below gives a good overview of the Fall 2024 M&A activity in the Agriculture Industry Sector. The Global Agriculture Market in Q3 2024 showed mixed trends during July, August, and September, after one of the most notable increases for key commodities such as wheat, corn, rice, and soybeans. In September, the FAO Food Price Index averaged 124.4 points, an increase of 3.0% from August and 2.1% from last year. The FAO Sugar Price Index accelerated by 10.4% during the month due to extremely bad crop conditions in Brazil and changes in policies regarding Indian sugar exports. The FAO Vegetable Oil Price Index strengthened by 4.6 percent while the Dairy Price Index improved by 3.8 percent. Global cereal production is forecast at 2,853 million tonnes in 2024, boosted by higher rice and wheat production volumes, particularly a 0.5% rise in the wheat crop under favorable conditions in Australia. Growth in Asia's emerging economies, especially India and Southeast Asia, would be the principal drivers of global agricultural growth by 2033, accounting for 31 percent of the world's consumption growth. Ongoing climatic dynamics have significantly impacted agriculture output; at a new record high, global temperatures greatly impacted productivity. Heavy rains in Canada prevented some harvests, and logistical operations concerning maize and soybean exports were affected by disruptions in the Mississippi River. Prices of major commodities were increasing but rice was subdued. The OECD projects growth in agricultural and fisheries consumption to be at 1.1% annually over the next decade, with nearly all additional consumption accruing in low- and middle-income countries. However, in low-income countries, calorie intake growth is expected to be only 4%, which falls short of the attainment of the Sustainable Development Goal of zero hunger by 2030. In addition, agriculture's greenhouse gas emissions are likely to increase by 5 percent, further underscoring the need for sustainable practices and an urgent mitigation of climate impact.
Posted by Dan Halvorson.