Global Smart Agriculture Market Expected To Reach $20 Billion By 2026

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May 18, 2022, 09:15 ET

FinancialNewsMedia.com News Commentary

PALM BEACH, Fla., May 18, 2022 /PRNewswire/ -- The smart agriculture market is expected to be driven by rising demand for sustainable farming techniques and innovations that are useful to minimize the use of non-renewable energy resources and embrace sustainable agronomic practices. Also, crops developed employing cutting-edge and environmentally responsible farming practices such as Ultra-High-Density Plantation (UHDP), optimal pesticide and fertilizer use, are also of high quality. This approach shields customers from exposure to toxins and other harmful contaminants, providing numerous health benefits which will also boost the market growth. The other factors supporting the growth of the market are rising advancement and implementation of technologies like artificial intelligence (AI) and internet of things (IoT) in agricultural industry and rising pressure on food supply system, owing to rapidly growing population. A report from Global Market Estimates projected that the global smart agriculture market is projected to grow from USD 13.1 billion in 2021 to USD $20.6 billion by 2026 at a CAGR value of 9.7%. Agricultural industry is witnessing a technological revolution, which is being backed by policymakers and launch of latest technologies all across the globe. Active Companies in the markets today include AgriFORCE Growing Systems Ltd. (NASDAQ: AGRI), Bunge Limited (NYSE: BG), The Scotts Miracle-Gro Company (NYSE: SMG), Corteva, Inc. (NYSE: CTVA), Nutrien Ltd. (NYSE: NTR).

The Global Market Estimates report said: "Precision farming and contract agriculture are models of sustainable and ethical farming approaches that assist farmers improve their economic and social status while minimising their need on subsidies and concessions to live a good life. Furthermore, rising adoption of technologies such as crop rotation, crop diversification, and the use of renewable resources all assist to the transition to sustainable farming and are prime factors driving the markets growth throughout the forecast period. Modern agricultural tools such as mapping software, variable rate technology (VRT), yield mapping software, GIS, GPS, and data management software help to improve land fertility and profitability, facilitate sustainable agriculture, increase production, and lower farming costs. Two significant aspects that promote the introduction of smart agricultural instruments are increased business efficiency through process automation and greater production with lower farming costs."

AgriFORCE Growing Systems Ltd. (NASDAQ: AGRI) BREAKING NEWS: AgriFORCE Growing Systems Completes Acquisition of Food Production & Processing IP from Manna Nutritional Group (MNG) - AgriFORCE Growing Systems Ltd. ("the Company"), an intellectual property (IP)-focused AgTech company dedicated to advancing sustainable cultivation and crop processing across multiple verticals, today announced it has completed the previously announced acquisition of the intellectual property of Manna Nutritional Group (MNG). The IP encompasses patent-pending technologies to naturally process and convert grain, pulses and root vegetables, resulting in low-starch, low-sugar, high-protein, fiber-rich baking flour products, as well as a wide range of breakfast cereals, juices, natural sweeteners and baking enhancers. The core process is covered under a pending patent application in the U.S. and key international markets.

Independent lab testing indicates that MNG's soft white wheat baking flour contains over 30 times the fiber, 3 times the protein, and more than 80% less starch than conventional flour without compromising taste, texture and quality. The Company's initial focus is on wheat, in which the flour has applications for baked goods, breads and snacks.

As further announced earlier this year, the Company is on track to pilot test its first branded product in the specialty flour category under the brand un(Think) Foods with businesses and consumers later this year. The un(Think) brand aims to evolve the way people think about their favorite foods and create a new standard for nutrition.

The Company has also completed the engineering work for small-scale manufacturing and has begun preparation for planned production in Saskatchewan, Canada, with initial operations expected to commence in second half of 2022.

"We are excited to close on the acquisition of the MNG intellectual property, as it allows us to launch innovative consumer products that leverage our broad industry expertise and expanding multinational footprint," said AgriFORCE CEO Ingo Mueller. "We have been working aggressively behind the scenes since first announcing the planned acquisition and look forward to launching our first product later this year. In addition to our own branded products, we are in discussions with food manufacturers to private label a variety of consumer products. We believe these products address a multi-billion dollar, underserved market in the all-natural flour, bakery and snack categories. Moreover, this acquisition is aligned with our broader strategy of leveraging our IP to meet the growing demand for healthy, delicious, and nutritious foods".

Dr. Stu Gordon, Board Member of Manna Nutritional Group, explained, "AgriFORCE is an ideal partner as they bring broad international capabilities and relationships across the industry to accelerate the commercialization of the MNG IP. The extensive market research conducted by AgriFORCE further validated the consumer demand for nutritious, high fiber, high protein low carbohydrate food products that do not compromise on taste consumers expect."

Additional details on the transaction are available in the Company's Form 8-K, which has been filed with the Securities and Exchange Commission and is available on the Company's website. CONTINUED… Read this full release for AgriFORCE Growing Systems at: https://ir.agriforcegs.com/

Other recent developments in the markets include:

Chevron U.S.A. Inc., a subsidiary of Chevron Corporation, and Bunge North America, Inc., a subsidiary of Bunge Limited (NYSE: BG), recently announced the creation of Bunge Chevron Ag Renewables LLC, signaling the close of their previously announced transaction. The new company will develop renewable fuel feedstocks leveraging Bunge's expertise in oilseed processing and farmer relationships and Chevron's expertise in fuels manufacturing and marketing. Read more here

The Scotts Miracle-Gro Company (NYSE: SMG) recently announced record second quarter sales in its U.S. Consumer segment driven by continued support from its major retail partners. The growth was offset by an expected decline in Hawthorne sales, leading to company-wide sales that were 8 percent lower than the same period a year ago.

For the quarter ended April 2, 2022, GAAP earnings from continuing operations were $4.94 per diluted share compared with $5.44 per diluted share in the prior year. Non-GAAP adjusted earnings, which exclude impairment, restructuring and other non-recurring items, and are the basis of the Company's financial guidance, were $5.03 per diluted share compared with $5.64 a year ago.

On a fiscal year-to-date basis entering May, consumer purchases of the Company's lawn and garden products at its largest four retailers in the U.S. are down 12 percent from the same period a year ago. The Company said the category gained significant momentum in recent weeks after a late break to spring and planned delays of promotional activity until after the Easter holiday.

Corteva, Inc. (NYSE: CTVA) recently reported financial results for the three months ended March 31, 2022.

Organic sales increased 16% in the same period with double-digit gains in all regions; Seed net sales grew 1% and organic1 sales increased 7% year over year, with notable gains in both EMEA and Latin America, partially offset by the seasonal timing of seed deliveries in North America. Price was up 8% globally, led by continued execution on the company's price for value strategy and recovery of higher input costs; Crop Protection net sales grew 23% and organic1sales increased 29%, led by North America. Volume gains were driven by early demand and continued penetration of new products, including EnlistTM and RinskorTM herbicides and ZorvecTM fungicide. Price gains reflected strong execution across all regions in response to cost inflation; GAAP income and earnings per share (EPS) from continuing operations were $577 million and $0.79per share for the first quarter 2022, respectively. Operating EBITDA was $1.04 billion, a 15% improvement over prior year on strong price execution and volume gains in all regions, partially offset by inflation and currency headwinds. Operating EPS1 was $0.97 per share, up 23% compared to the same period last year; and Management affirmed full year 2022 net sales and Operating EBITDA guidance. The Company expects net sales to be in the range of $16.7 billion to $17.0 billion and Operating EBITDA in the range of $2.8 billion to $3.0 billion. The Company adjusted its expectations for Operating EPS for 2022, which is now expected to be in the range of $2.35 to $2.55 per share, reflecting lower average share count.

Nutrien Ltd. (NYSE: NTR) recently announced its first quarter 2022 results, with net earnings of $1.4 billion ($2.49 diluted net earnings per share). First quarter adjusted net earnings per share were $2.70 and adjusted EBITDA was $2.6 billion.

"Global agriculture and crop input markets are being impacted by a number of unprecedented supply disruptions that have contributed to higher commodity prices and escalated concerns for global food security. The situation emphasizes the need for long-term solutions that support a sustainable increase in global crop production," commented Ken Seitz, Nutrien's Interim President and CEO.

"Nutrien is responding by safely increasing potash production and utilizing our global supply chain to provide customers with the crop inputs and services they need for this critical growing season. We expect to generate higher earnings and cash flows in 2022, which provides an opportunity to accelerate our strategic initiatives that we believe will advance sustainable agriculture practices and create long-term value for all our stakeholders. This includes the potential to expand our low-cost fertilizer production capability, enhance our leading global distribution network and proprietary products business, and return additional cash to our shareholders," added Mr. Seitz.

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