The report below gives a good overview of the Spring 2022 M&A activity in the Agriculture Industry Sector. The global agriculture market was valued at $9,603 billion in 2020, and is expected to increase to $13,134 billion in 2025, growing at a CAGR of 7.0%, during the period 2020-25, as per research published by the Business Research Company. The agricultural industry is recovering from the disruptions caused by the COVID-19 pandemic. The pandemic delayed seasonal labor movement, disrupted supply chains, and restricted access to traditional marketing outlets. The world's population is forecasted to increase to 9.7 billion in 2050, as per research published by Food and Agriculture Organization (FAO) and World Bank. Crop output, farming operations, and trade volumes will need to increase, to meet the food demands of a rising population in the future. It is expected that agriculture companies would expand their presence and activity to meet the increased future food demands. Global agricultural production is expected to increase by 1.4% per year over the next decade, with the additional output coming primarily from emerging economies and low-income countries, as per research published by OECD. Agricultural development is projected to be driven by productivity-enhancing investments in technology, infrastructure, and agricultural training. The countries with limited public resources and a high reliance on agriculture for economic growth, should prioritize public and private spending on agriculture to maximize the agricultural output.
Posted by Dan Halvorson.