The following content is sponsored by Global X ETFs.
An Investor’s Guide to AgTech & Food Innovation
The global food system is under immense pressure due to three overarching trends:
- Population Growth
This naturally leads to an increasing demand for food. By 2060, the UN expects the global population to reach 10 billion people.
- Limited Capacity of Existing Agriculture
Existing farming methods are very resource intensive and production has already been pushed to the brink. The UN predicts that by 2050, food production will need to increase by 70%.
- Unsustainable Consumption
The world is consuming unsustainable amounts of food, particularly in terms of meat. While livestock accounts for 80% of agricultural land, it supplies just 18% of the global calorie supply.
As these trends collide, agriculture technology (AgTech) and food innovation are emerging as two possible solutions. This infographic from Global X ETFs will explain both.
The Major Themes of AgTech
AgTech is the use of technology to maximize crop yields while conserving water and land. Here is a quick explanation of its segments.
Precision agriculture is the integration of artificial intelligence (AI) and the internet of things (IoT) into traditional farming practices. These technologies can provide farmers with more data, which in turn can be used to boost efficiency.
One example is the John Deere See & Spray machine, which uses various sensors to detect where weeds are. By only spraying weeds, farmers can reduce their herbicide use by up to 77%.
Robotics & Automation
Robotics (Read more...)