Agriculture

As countries set ESG initiatives throughout the globe, transforming food systems is essential to meeting net-zero goals by 2030. New technology and practices can help producers increase efficiency while minimizing their impacts on the climate.

The global smart agriculture market size is anticipated to reach USD 35.98 billion by 2030, expanding at a CAGR of 10.8%. With advancements, such as LED indoor farming, vertical farming, and greenhouse monitoring systems, we are seeing this market grow.

The industry offers attractive opportunities for investors. Many companies operating in this space are involved in large, established markets with significant growth potential, particularly in emerging markets. This stability has been tested by the Covid-19 pandemic and, more recently, the invasion of Ukraine; while supply chains remain strong, there is a growing demand for self-sufficiency through domestically produced goods, another emerging market for the canny investor.

Those that invest in technology to increase yields, reduce the environmental impact and manage production will thrive, be they traditional or organic. We have worked with a number of producers to move the business through the generations at fair value. Suppliers of services such as software, energy or hardware are well placed for investment and exit.