The report below gives a good overview of the Winter 2023 M&A activity in the Agriculture Industry Sector. The global agricultural market was valued at $12.1 trillion in 2022 and is expected to reach $16.6 trillion by 2026, growing at a CAGR of 8.2%, during the period 2022-26, as per report published by The Business Research Company. In 2022, the agricultural industry encountered several challenges including supply chain constraints and soaring inflation. It is anticipated that more than 200 million people worldwide suffered from severe food insecurity in 2022 because of rising agricultural commodity prices, as per a report published by the World Bank. Worldwide agriculture production was also hampered by unstable weather conditions. For instance, US farmers faced difficulties because of weather-related crises in 2022. Due to this, there was a major decline in citrus and rice production coupled with cattle culling owing to drought. Furthermore, factors such as additional energy price hikes, covid surge in China, probable suspension of the Black Sea Grain Initiative by Russia and global recessionary concerns are expected to be the headwinds for this industry in the future. However, it is expected that the global food prices would decrease in 2023 and stabilize by 2024. Additionally, growing investment in advanced technologies such as variable rate farming is expected to act as a tailwind for this industry. Moreover, the industry is anticipated to benefit from factors such as increased food consumption, and shift towards sustainable farming.
Posted by Dan Halvorson.