Advertisement
Not a member of Pastebin yet?
Sign Up,
it unlocks many cool features!
- Description of Trends
- 1. Digital Farming
- Precision location methods and data-driven (vs. experienced-based) agronomic decisions will be applied to increase crop yields in a sustainable manner
- 2. Changing Grower Buying Behaviors
- Growers will focus on maximizing operational efficiency, farm sustainability, and ROI. Farm connections will become less relationship-based and more B2B-like negotiations
- 3. Grower Consolidation
- Growers will search for greater economy of scale through land or virtual consolidation (buying pools), increasing presence of corporate farming
- 4. Integrated Solutions
- Changes in the market (e.g., digital, precision farming, commoditization) will require input suppliers and distributors to sell customized solutions beyond agronomic advice, likely involving more than one single player in the value chain
- 5. Biotechnology
- Biotechnology may make conventional models outdated by improving yield while reducing need for crop protection products or services
- 6. Credit & Financing New Models
- Digitalization and new financial players will give growers access to new credit models, making it easier, cheaper, and faster to get access to working capital
- 7. Regulatory & Consumer Trends
- Regulatory bodies (e.g., USDA, EPA) and millennial consumers will pressure the value chain to apply more sustainable practices and increase demand for transparency in agricultural production
- 8. Vertical Integration
- Role boundaries will become increasingly blurred among agribusiness players in the value chain, which are trying to expand up and down the chain
- 9. Flat Commodity Pricing
- Flat pricing will continue to create a significant squeeze on grower profitability which can place heightened pressure on the value chain players to be able to demonstrate ROI
- 10. Distributor Consolidation
- Continued distributor consolidation in the US will lead to a higher concentration of sales, more negotiating power, and decreased influence of local independents
- 11. Multichannel to Omnichannel
- Growers will demand engagement through their preferred means, whether digital channels, physical channels, or a combination, depending on their specific needs and preferences throughout the growing season
- 12. Non-Traditional Players Entry
- Powerful players from outside the agribusiness industry, such as Amazon, Uber, or Google, may begin to disrupt the industry and create new competing channels and/or offerings
Advertisement
Add Comment
Please, Sign In to add comment
Advertisement