Agriculture as an Alternative Investment: The Status Quo and Future Perspectives

Description

Under the pressure of climate and social changes, agriculture is called to play a fundamental role in the world food challenge of the next few decades. A severe reduction of arable land and water scarcity combined with a growing food demand, changes in the dietary preferences in many countries and, more recently, a growing threat to food security and logistics from supply chains interruptions and global trade fragmentation, all require the implementation of processes, techniques, and innovations able to increase productivity and make a better use of scarce resources. Against this backdrop, a growing number of investors and asset managers have started looking at agriculture as an interesting investment theme to exploit the long-term strategic opportunities emerging from technological innovation and social changes. The industry is undergoing a process of transformation driven, on the one hand, by the emergence of new data and technologies that promise enhancing process efficiency and improve yields and, on the other hand, by an increased attention on the GHG emissions of agricultural processes and the impact of farmland on climate change, water and land scarcity. All these factors call for a radical rethinking of many agriculture business models. This book provides a detailed overview and analysis of those new technologies with the greatest potential to disrupt agriculture products and processes by improving productivity and the management of food loss and waste, making a more efficient and sustainable use of resources and enhancing food security. Then, it discusses the implications for investors and asset managers, starting with an assessment of the status quo of agriculture investing and providing a thorough description of the agriculture asset class with an emphasis on its distinctive characteristics and the innovations in the technological processes used in agriculture and farming with the greatest potential to obtain long-term sustainable returns. Foreword Foreword Introduction References Contents Chapter 1: Megatrends Affecting Agribusiness: From Challenges to Opportunities 1.1 Introduction 1.2 An Overview of Megatrends 1.2.1 Identifying Key Megatrends 1.2.2 What Will Affect Business in the Next Five to Ten Years? 1.2.3 Megatrends in the PESTLE Analysis 1.2.4 The Driving Forces 1.3 Megatrends and Challenges in the Agribusiness Industry 1.3.1 Delving into Megatrends and Challenges in Agribusiness 1.3.2 Agribusiness Megatrends Growing Demand and Changing Dietary Preferences Climate Change and Natural Resources Scarcity Technological Innovation and Hyperconnectivity Integration of Global Trade 1.3.3 Agribusiness Industry Challenges Improvement of Agriculture Productivity and Food Loss and Waste Reduction Efficient Use of Resources and Enhancement of Ecosystem Services Improvement of Public Nutrition and Health Better Distribution of Value Along the Supply Chain 1.4 Innovation Trajectories in the Agribusiness Sector 1.4.1 Spotting Agribusiness Technological Innovations 1.4.2 Renewable Energy in Agriculture Bioenergy Production Intelligent Agrivoltaics Solar Desalination for Irrigation 1.4.3 Chemistry and Biotechnology New Breeding Techniques for Plants New Breeding Techniques for Livestock New Breeding Techniques for Fish 1.4.4 Novel Farming Systems Vertical Farming Insect Farming Algae Farming 1.4.5 Innovative Aquaculture 1.4.6 Agritech 1.4.7 Alternative Proteins Cultivated Meat Fermentation-Derived Proteins Plant-Based Meat 1.4.8 Food Safety and Traceability Food Preservation Technologies Smart Packaging: Active, Intelligent, and Connected Smart Traceability 1.4.9 E-commerce Food Delivery Ecosystems 1.5 Conclusion References Megatrends Analysis: Literary Sources Agribusiness Megatrends and Challenges Analysis Literary Sources Technological Innovations Analysis Literary Sources Other References Chapter 2: Innovation Trends in the Agribusiness Supply Chain 2.1 Introduction 2.2 The Agribusiness Innovation Landscape: Who Is Innovating and Why? 2.2.1 Dissecting Technological Innovations in the Agribusiness Industry 2.2.2 Distribution of Technological Innovations Along the Supply Chain 2.2.3 Matching Innovations and Industry Challenges 2.3 Technical and Business Development of Agribusiness Innovations and Implications for Investors 2.3.1 Assessing the Potential of Technological Innovations 2.3.2 The Status of Technological Innovations in the Industry 2.3.3 Looking Forward: Perspectives Ten Years from Now 2.4 Conclusion References Chapter 3: Agriculture as an Asset Class in the Alternative Investments Space 3.1 Introduction 3.2 Agriculture Investing 3.2.1 Agriculture as an Asset Class 3.2.2 A Taxonomy of Agriculture Investors 3.2.3 A Map of Fundraising and Investment in the Agriculture Asset Class 3.3 Can Agriculture Become an Asset Class in the Infrastructure Space? 3.3.1 The Status Quo at the Intersection Between Agriculture and Infrastructure Asset Classes Asset Managers Investors Transactions and Target Companies 3.4 Conclusion References Conclusions