Global Agriculture Market Analysis
The production of agriculture across the globe is predicted to expand by nearly about 1.5 percent annually in future as reported by OECD (Organization for Economic Cooperation and Development). The prices of goods are projected to diminish as compared to the year 2011 data. It will average at twenty percent or lesser than that for cereals and thirty percent or lesser than that for meats during the next decade. Owing to growing manufacturing costs, crops comprising oil seeds and coarse grains will display lesser yield. There will be less change in cattle production with per capita income set to increase greater than 0.5 percent every year.
Growing worldwide population is putting enhanced pressure on agriculture sector to fulfill the demand for food. Vital breakthroughs and significant growth in seeds, fertilizers and chemicals has assisted the agriculture industry in satisfying the demand for food. With the global population set to expand by 1.2 billion before the culmination of this decade and regular calorie consumption rising by more than 500 calories per day during the last few years, the intake of food will continue to grow and farmers will become growingly dependent on mechanization and technology to enhance food production. By end of year 2050, there will be more than three billion to be fed owing to which the demand for production of meat will increase by about three fourths and cereal output will have to be improved by one billion tons.
Key Market Sections
The global demand for agricultural devices was predicted to increase at approximately about five percent each year commencing from year 2014 to touch 123 billion dollar mark in future as per the reports provided by a reputed market research firm. Market expansion will be propelled by automation of evolving agriculture market sector. The market growth is predicted to be strong specifically in countries like China and India owing to growing population, fiscal growth and increased consumption of food.
Government investment in agriculture automation to increase crop production will assist growth of the agriculture industry. Many of the best agricultural instrument producers of the world have the headquarters of their business in developed countries. China surpassed USA in year 2009 as number one shipment dealer supplying shipments worth 17 billion dollars.
The global seeds industry was expected to touch 47 billion dollar mark by end of year 2015 as per the reports provided by global market analysts. Growing population along with greater demand for food combined with high standards of farming and utilization of biotechnology in producing seeds are propelling the growth of agriculture industry globally. Breakthroughs, developments and innovations in seed production like biotech crops, hybrid seeds and pest resistant seeds are propelling the demand of agriculture sector worldwide.
Demand for agriculture items like fertilizers is predicted to expand at 3% per year through 2014 to 380 million metric tons as per the reports provided by a reputed market research agency. Under constant stress to create better crops owing to factors such as lower availability of cultivable land area, rising population and high demand of protein products, farmers have become growingly dependant on fertilizers.
Demand for fertilizers is also stimulated by the golf sector developing more golf courses around industrializing countries where middle income groups are increasing. Fertilizer is used by both the professional gardeners as well as domestic gardeners to enhance the health of lawns specifically.
The global pesticide market is predicted to expand, grow and develop again after the economic recession of year 2009. The market evaluated at 45 billion dollars is projected to rally and display some level of development and expansion as reported by a reputed market research firm. But the profits will be shaped by industry maturity and challenging costing practices. Owing to industrial maturity in old markets of North America and Western Europe, these regions are expected to observe under average development in future. On other hand markets of APAC zone are predicted to observe a good level of growth and expansion. Particularly countries like Thailand, Indonesia and China of APAC zone are predicted to witness good pesticide market growth and market expansion. Developing economies which traditionally do not make use of pesticides are not accepting the practice. There is a rising demand for pesticides from many regions of India .
The pesticide market of South America and Central are expected to witness strongest market growth. Brazil which is already surpassing the global average and belonging to the sub continent of South America is expected to record above average growth. Industry growth will also be registered in some Middle East regions and some regions of Africa.
Countries like Ukraine, Russia and Brazil are all set to join (or belong to) the group of the nations like European Union, USA and Australia who are the long standing exporters of agricultural commodities. Factors like limited cultivatable land , changing climate and growing expenditure on equipments and materials like fertilizers are some of the challenges that are faced by agricultural industry.
Today, there is 1.5 billion hectares of cultivable land in the world and it is worth 5 trillion dollars. Lesser direct factors and elements like rules, revenues and rate of interests also affect the growth of the agriculture sector. With 13 billion dollars already invested in agriculture sector or agriculture related industry since year 2007, the market is going to observe enhanced business investment. The agriculture segment is expected to focus on enhancing the production by using scientific methods of production and through technological innovations.