Megatrends of the Agriculture Industry
Veggitech is an agricultural technology start-up with headquarters in Sharjah, a city in the United Arab Emirates. As per Veggitech’s About Us (n.d.) page on their website, the company’s aim is to redefine agriculture by protecting, restoring, and promoting sustainable farming methodologies with the use of technology. Pesce and Traon (2019) have identified some of the mega-trends that affect the global agricultural sector. For instance, the predicted population of 10 million people by the year 2050 and growing income per capita are to impact food consumption (Pesce and Traon, 2019). That, according to Pesce and Traon (2019), means that approximately 50% more food than now will have to be generated to meet the increased demand for it. Unfortunately, climate change is estimated to contribute to undernutrition due to production being affected by harsh climate events. However, technological change is to help improve food production practices by accommodating sustainable agriculture.
Future Scenario
DEPEST Analysis
To explore the macro environment of the agricultural business, Claessens (2021) advises turning to the DEPEST model. DEPEST stands for Demographic, Economical, Political, Ecological, Socio-Cultural, and Technological forces and presents the main forces shaping opportunities as well as posing threats in a particular industry. As it has been estimated, the growing population of people on the planet calls for an increasing generation of food. However, food insecurity is projected to rise due to the detrimental consequences of the climate change. Food supply chains of multinational companies are to become of extreme importance – especially with possible political instability in some of the poorer countries. Farmers’ race and ethnicity – and their own unique legacies – will continue to influence their approach to farming. Finally, technological innovation is to enhance efficiency and help create new agricultural business models.
Business Opportunity
SWOT Analysis
If one wants their business to move forward, one must search for new business opportunities. One of the most popular ways to identify these opportunities in a particular field is to conduct a SWOT analysis. SWOT is an acronym that stands for Strengths, Weaknesses, Opportunities, and Threats. Opportunity identification is usually step number three, after determining strengths and weaknesses — that is, helpful and harmful factors of the internal origin. Opportunities are things that are external to one’s company and might be economic trends, market changes, or target audience shifts. When it comes to Veggitech, this organization is focused on sustainability — and that is one of the biggest business opportunities today.
Sustainable Agriculture
In general, the future is seen as bright for companies that view healing society as one of their goals. First of all, according to Holt (2020), it will be easier for such organizations to attract patient investors who are willing to wait for capital return. If a company wants to create long-term value, this is crucial: with impatient capital, that is nearly impossible. Secondly, Holt (2020) argues that sustainability is an innovation source: an economically, environmentally, and socially sustainable future cannot be achieved without an unprecedented innovation volume. Finally, deeper integration of sustainability into a business strategy is an excellent way to grow at both top and bottom levels. Holt (2020) notes that, if done right, sustainability does not cost much – but it pays.
References
Claessens, M. (2021). The macro-environment – six forces to consider (DEPEST/ DESTEP). Marketing-Insider. Web.
Holt, J. (2020). Sustainability in business is more an opportunity than a threat. Forbes. Web.
Pesce, M. & Traon, D. (2019). Megatrends in the agri-food sector: Global overview and possible policy response from an EU perspective [PowerPoint Presentation]. Web.
Veggitech. (n.d.). About us. Web.