World power is shifting from west to east and the world population is shifting from rural to urban. Diets traditionally rich in cereals are shifting towards meat and dairy, which means far more land, water and energy will be needed for this type of intensive farming.
In contrast, the United Nations tells us that in 2009 a record number of people, 1.02 billion, did not have enough food to meet their needs. The UN Food and Agriculture Organisation estimates there is a need to increase global agricultural production by 70 percent and almost 100 percent in developing countries by 2050. The level of investment needed will be $83 billion per year, over 50% more than current levels.
Responsible investors look for the economic solutions and investment opportunities that will help to solve these mounting issues. This will include establishing the infrastructure for farmers to collectively store and transport their produce to market.
It will include efficiency in irrigation systems to avoid pipeline evaporation and the long haul transportation of water. Opportunities will emerge for the shift away from using oil and LNG in agricultural production to renewable energy. Investment will be made in engineering solutions and the development of innovative agriculture technologies.
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