Staying the Course (a Note to the Agribusiness Community)

By Jon Rhodes, M.S.
Senior Scientific Advisor
ABC Laboratories

www.abclabs.com

Times are tough for the agribusiness community.  The pace of mergers and acquisitions is heating up in a big way and continually challenging businesses to grow their pipelines and accelerate development timelines to remain competitive.  Falling commodity prices and high inventories, coupled with slowing product sales volumes and fluctuating currency exchange rates are affecting the bottom line.  The growth in the number of herbicide resistant weed species has kicked into high gear with the United States leading the way.  Global weather patterns are becoming more variable and the continued availability of adequate water resources for agricultural use is in doubt.  Pollinators and endangered species are under pressure.  Regulatory pressures are expanding.  Crop yield enhancement technology continues to face regulatory and social obstacles to global acceptance.  Is agribusiness destined to become mired in a long and protracted slow-growth environment as a result?

Not likely.  The challenge facing humanity and the agribusiness community has never been greater.  Feeding a world population estimated at more than 9 billion people by 2050 will require a 70 to 100 percent rise in overall food production.  Rising wealth in developing countries is bringing changing dietary preferences and greater demand for food.  The total amount of arable land is shrinking.  These factors and others will put enormous pressure on social stability and global security without a concerted and collaborative effort.  The opportunities and consequences are clear and no sector is more prepared to address the challenges we’re facing than the global agribusiness community with a proven record of  investment in technological innovation and enhancement of crop production practices.