If you are part of an agribusiness venture, you know that food affordability, availability, safety and quality are essential to your company and the world. According to the Food and Agriculture Organization (FAO), in 2020, 28.1 percent of men and 31 percent of women experienced food insecurity. The agribusiness sector has been monitoring these trends for some time, and the trend is only worsening.
Agribusinesses play a critical role in improving food security. With DTN Content Services, agricultural businesses can keep up with the latest ag-related news, forecasts, and insights, having the tools at hand needed to keep their website dynamic and relevant.
The most critical concerns of a business engaged in agriculture range from climate change to political issues and meeting the challenge of providing food for nearly 8 billion people. In recent years, the number of people displaced due to conflict has risen dramatically. Additionally, the effect of the COVID-19 pandemic on families’ economic position and world food supply chains has had an enormous impact on food security the world over.
What can agribusinesses do to help the situation and pave the way for a sustainable and prosperous future? In this article, we will look at the principles behind security and the critical role being played by agribusinesses the world over.
3 Principles of world food security
There are three principles to improving world food security: food production, food availability, and food affordability. Let’s examine each of these principles in more detail.
Despite consistent increases in the world’s population overall, not all places are growing at the same rate. The biggest population increases are in the developing world, where family farms are the norm and access to additional food is limited. More mouths to feed means an increased demand on the food value chain and food insecurity.
Regular severe weather events also put farmlands at risk. Droughts, flooding, and other weather effects brought on by climate change impact the quality of the land and the resulting crops. This could reduce the amount of food produced, leading to further food insecurity.
Before food is produced, farmers need a reliable method to source the equipment and farming machinery required for their operations. Competent workers who can work on the farm as well as a reliable clientele to purchase the produce are also necessary.
After producing food, it must then make its way along sometimes long, complicated supply chains to reach a family. As was seen during the COVID-19 pandemic, any disruption of these large-scale supply chains puts a massive strain on global food supply and distribution.
Theoretically, to increase affordability, either the buying power of the consumers must increase, or the cost of food must decrease. Ideally, both should happen simultaneously to improve food affordability.
Statistics from the World Bank show that two-thirds of those living in poverty work in the agricultural industry. While many farmers in developed countries have benefited from adopting technological advancements such as e-commerce and precision agriculture, those in developing nations face unique challenges such as rural poverty and a lack of resources.
How agribusinesses can meet the challenge of food security
Affordably and sustainably meeting the need for nutritious food is the greatest challenge of any nation. Agribusinesses continue to be essential in making sure the needs of the world’s population are met, both today and beyond. Let’s look at how agricultural businesses can meet the challenge of food security.
In order to increase food production, it is neither practical nor sustainable to create more arable land. Instead, the key to increasing food production lies with better use of the current land available.
Agricultural businesses are adopting agriculture value chains, employing modern, efficient techniques to increase crop yields while maintaining the health of the land. By relying on the wealth of technology available and incorporating e-Agriculture methods, farmers can better allocate their resources and maximize field production. Data analytics have also proved instrumental in reducing spoilage and minimizing waste.
Along the supply chain, all ethical agribusinesses have used advancements to make food available to those in need. Certain companies have stepped in to bridge the gap between production, processing and distribution by connecting farmers with wholesale customers such as grocery and restaurant retailers.
One of the ways to improve food affordability is to increase the income of farmers in the developing world. By empowering these farmers with better agricultural production, they become able to afford the food they need to provide for their families, and even have products to sell. Agricultural development is seen as an effective way to encourage economy-wide growth and reduce extreme poverty and food insecurity.
Many agricultural businesses are in place to connect farmers with the tools and equipment they need to revolutionize their farms. This can include platforms for buying, selling, and renting farm equipment or software to automate specific processes, reducing costs.
This rise in e-commerce helps farmers reach new markets and customers, increasing prosperity and allowing operations to grow. Other companies have focused on marketing ‘ugly’ or ‘undesirable’ produce that would often be left unsold to reduce waste and get affordable food into the hands of more economically vulnerable consumers.
The power of DTN Content Services
The future of food security lies largely in the hands of agribusinesses. This is no easy task, but thankfully there are tools available to help. With DTN Content Services, your website will be equipped to engage your producers and provide them with the timely information they need.
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DTN is committed to meeting agribusinesses’ needs. From insight into the future of the agribusiness industry to relevant and accurate market and weather data, we’ve got you covered. Request a demo of DTN Content Services to see how our information and insights can make a difference for your business.