2023 Predictions for the Global Agri-Food and Agritech Sectors

2022 has been a challenging year for the global food system, writes Krishna Kumar at INDIAai. It uncovered several structural weaknesses in the wake of challenges such as extreme weather events, supply-chain disruptions, geo-political tensions, international conflicts, and growing food wastage. The year also exposed our inability to manage global hunger and food security, reversing the progress made over decades of efforts.

The enormity of the challenge is evident from the fact that food security, climate-resilient agriculture, and agri-financing were the central theme of discussions at the recent COP27 event in Egypt and the G20 Summit in Indonesia.

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In this context, we expect some significant agri-food industry trends to accelerate in 2023:

Agri-financing and sustainability investments will skyrocket

Expect investments in sustainability projects to continue to see momentum. The United Nations noted recently that the world needs to do more to help poorer nations withstand the effects of global warming. Unfortunately, climate adaptation finance has been woefully underfunded. This has started to change in 2022 and will accelerate in 2023. We will see more and more of PepsiCo’s recently announced $1.25 billion 10-year Green Bond to fund eligible Green Projects, The Bill & Melinda Gates Foundation’s pledge of $1.4 billion to help small-holder farmers in sub-Saharan Africa and Asia build climate resilience into their work practices, and the U.S. Department of Agriculture’s plans to invest up to $2.8 billion in 70 selected projects under the Partnerships for Climate-Smart Commodities plan. We expect the private sector’s contribution will see new heights in 2023.

Accelerated digitization of agriculture for maximizing visibility & transparency of food systems

Digitization of agriculture is one way to reduce the climate impact of farming and the looming economic slowdown in certain regions. Therefore, we expect enterprises and governments worldwide to accelerate technology investments in agriculture – leveraging advancements in cloud computing, earth observation, remote sensing, data, and AI/ML models – to help the sector unlock new possibilities while solving real-world agricultural problems. This can significantly boost food production, improve profitability and reduce operational costs, which are crucial in a downturn.

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