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The global agricultural sector is rapidly evolving and developing. OECD-FAO Agricultural Outlook 2023–2032 projects food consumption increase over the next decade at an annual rate of 1.4%. There are several reasons for that and among the most crucial ones are the rapid growth of the world population and therefore the urgent need to broaden food production and supply chains.
The latest edition of the “State of Food Security and Nutrition in the World” report, released in July 2023, paints a concerning picture. It reveals that around 691 to 783 million people faced hunger in 2022. This staggering number represents a 122 million increase compared to 2019, highlighting a worrying trend of rising food insecurity across the globe. At that rate, 2030 would see over 840 million people suffering from undernourishment, and 2 billion by 2050.
The main challenges that agriculture faces today are climate change, increased input costs, growing population, volatility, and lack of agricultural equipment.
These challenges are constant and farmers will face them not only in 2024 but for several decades.
Climate change is no longer a distant threat; its impacts are being felt across the globe, and agriculture is on the frontlines. Rising temperatures, erratic rainfall patterns, and extreme weather events are disrupting food production, threatening food security, and pushing millions towards hunger.
- Rising temperatures can shorten growing seasons, stress crops, and increase water demand. Heatwaves can devastate crops, while extreme cold snaps can damage sensitive plants;
- Changes in precipitation patterns can lead to droughts in some regions and floods in others. Both extremes can damage crops, reduce yields, and contaminate water sources;
- More frequent and intense storms, hurricanes, and floods can cause widespread damage to infrastructure, crops, and livestock.
Agriculture faces a growing challenge — soaring input costs. From fertilizer and fuel to seeds and machinery, the price of essential resources is skyrocketing, putting immense pressure on farmers and threatening food security worldwide.
- The cost of fertilizer has doubled or even tripled in recent years, fueled by factors like supply chain disruptions, rising energy prices, and the war in Ukraine;
- Diesel, a crucial fuel for farm machinery, has seen significant price increases due to global market fluctuations and geopolitical tensions;
- The cost of seeds and agricultural machinery has also climbed due to increased production and transportation costs;
- Wages for agricultural workers are rising, driven by factors like inflation and competition for skilled labor.
According to the UN, the world’s population is projected to reach a staggering 9.7 billion by 2050, nearly 2 billion more than today. This rapid growth presents a monumental challenge for agriculture: producing enough food to nourish everyone sustainably.
- With more mouths to feed, global food demand is expected to increase by 70% by 2050;
- Feeding this growing population will require either significantly more land or higher yields from existing farmland;
- Water, a critical resource for agriculture, is already scarce in many regions, and climate change is expected to exacerbate the problem;
- Expanding agriculture often comes at the cost of deforestation, biodiversity loss, and soil degradation.
the harsh reality for many agricultural producers today, as volatility has become a major challenge plaguing the sector.
- Prices of agricultural commodities like corn, soybeans, and wheat can fluctuate wildly, often due to factors beyond a farmer’s control, such as weather events, geopolitical tensions, and global trade disruptions;
- This unpredictable nature of prices makes it difficult for farmers to plan their budgets, invest in their operations, and secure loans;
- When prices plummet, farmers are at the mercy of buyers who can dictate lower purchase prices, squeezing their profit margins and potentially pushing them into debt.
Lack of agricultural equipment and shipment issues pose a major threat to global food production.
- Shortages of semiconductors, steel, and other materials have led to production slowdowns and empty shelves at agricultural equipment dealerships. Farmers struggle to find essential machinery like tractors, harvesters, and irrigation systems, delaying planting and harvesting schedules;
- The COVID-19 pandemic disrupted global supply chains, causing bottlenecks at ports and delays in shipping. Containers carrying vital parts and equipment get stuck in transit, leaving farmers waiting weeks or months for repairs and upgrades;
- Even when equipment is available, skyrocketing prices due to increased demand and supply chain disruptions put a strain on farmers’ budgets, making it harder for them to invest in new machinery and maintain existing equipment.
In Atlantic Project Cargo we understand that addressing the issue of agricultural equipment shortages and shipping requires a collaborative effort from governments, manufacturers, farmers, shipping companies, and technology developers. By working together, we can cultivate a more resilient and efficient agricultural system that can withstand disruptions and ensure a stable food supply.
From our side, we are making sure that agricultural equipment is delivered on time to any destination. Our 20+ years of experience allows our team to tackle any challenges related to logistics and agricultural cargo shipping.
The top five challenges facing agriculture in 2024 paint a complex and evolving picture. From the immediate threats of climate change and rising input costs to the long-term concerns of population growth and market volatility, farmers and the global food system must navigate a multitude of obstacles. This landscape is further complicated by the critical issue of equipment shortages and shipping disruptions, highlighting the interconnectedness of the agricultural sector.
Addressing these challenges demands a multifaceted approach. Technological innovation, policy interventions, and collaborative efforts between governments, scientists, farmers, and businesses are all essential. Embracing climate-smart practices, boosting resource efficiency, and fostering fair market conditions are crucial steps towards building a more resilient and sustainable agricultural system.
