A Fast Changing Food World

Urban population will bring added pressure to governments to clean the air, and food producers to install socially responsible practices such as: reduce GHG emissions and waste, and more transparency on ingredients and production practices. It could even be affirmed that positive impact will become a core value of food companies.

In the past, before social media came to life, large corporations would generate tremendous influence in how consumers viewed food/ingredients/brands thus affecting directly how and what people would eat. In a “real-time” “informed” and “omnichannel” world, these companies had the power over information to communicate with the market in their benefit. Yet evolving market dynamics threaten the traditional food industry to adjust rapidly on a constant basis in order to stay ahead of consumers. These multinationals now have a new motto: Change/adapt fast or lose attractiveness to consumers.

Spearheading this transformation is the consumer. Consumers are changing their habits and getting more demanding. They are looking for greater output traceability, compliance, and chemical-free food, leading to healthier, sustainable, functional and culture-adapted food. Awareness is growing about the significant impact on the planet and culture that the current model of agricultural production has had. The rules of the game need to change for the farmers, and they agree with it. They are the ones with the most to gain from changing agriculture system while the most to lose if the current “modus operandi” does not change.

But hope should not be lost. There is a revolution around the agribusiness value chain that is taking place right now. Emerging innovations are changing how we produce, distribute and consume what we eat, bringing a greater level of certainty to the notoriously uncertain business of growing food. There are quite a few new unique technologies aimed at increasing productivity, improving health and environmental standards, and bringing new items to deliver on dynamic consumer preferences. These include biological solutions with enhanced environmental safety and radical new methods that maximize yield and increase the resilience of plants to diseases and pests. Innovations such as vertical farming, lab-grown food and algae aquaculture, besides digital technologies such as big data, the Internet of Things and artificial intelligence are already transforming the food/agriculture supply chain.

In light of the above discussed, I see myself as an investor that can bring further change to the future of agriculture, food, health and sustainability while also looking for long term returns to my investors. I see new opportunities arise on a daily basis to back entrepreneurs/ ideas/innovations that are willing to change the current food system.