AGRIBUSINESS
The growth of the world’s population, the increase of the personal income of the people of emerging markets and oil-exporters countries, the migration to the cities and the progressive trade liberalization are some of the factors behind the big changes in the world’s food demand. These has push agricultural commodity’s prices up to record levels and has placed agri-business as one of the more profitable sectors, stimulating the supply, investments and technological development throughout the whole value chain.
This international food supply and demand dynamic is generating significant changes, projecting a favorable price scenario for the agri-business sector even in 2015. According to international specialists and specialized organizations like FAO, OECD and USDA, basic product prices in the medium term would have average levels considerable higher than those observed in the last ten years. However, in the long run, it is expected that the underlying forces pressing on the agricultural supply would have more weight on the demand. Therefore, at that future moment, price levels would tend to stabilize at historical levels.
The market’s tendencies show an increased importance of the consumer’s preferences for better food standards, quality, services and certifications related to origins and processes, environmental aspects and animal wellbeing. More and more, product differentiation is based in value added: packaging, quality assurance systems, products characteristics like natural, organic, vitamins added and nutrients.
Consumer’s changing patterns towards a healthier diet and more nutritional food will continue to strengthen vegetable oil and beef demand. Primary products conversion into processed food is one of the more interesting and profitable businesses at the world level.
These new forms to organize production provides an incentive to develop a dynamic system that combines agricultural and industrial products to transform in a profitable manner lands products into final goods of higher value added. These permits and require at the same time an efficient technical and economic coordination of the activities involved throughout the productive process, creating progressive productive linkages with positive effects for the whole economy. Together, they generate strong externalities with increasing demands for innovation and qualify employment.
This international food supply and demand dynamic is generating significant changes, projecting a favorable price scenario for the agri-business sector even in 2015. According to international specialists and specialized organizations like FAO, OECD and USDA, basic product prices in the medium term would have average levels considerable higher than those observed in the last ten years. However, in the long run, it is expected that the underlying forces pressing on the agricultural supply would have more weight on the demand. Therefore, at that future moment, price levels would tend to stabilize at historical levels.
The market’s tendencies show an increased importance of the consumer’s preferences for better food standards, quality, services and certifications related to origins and processes, environmental aspects and animal wellbeing. More and more, product differentiation is based in value added: packaging, quality assurance systems, products characteristics like natural, organic, vitamins added and nutrients.
Consumer’s changing patterns towards a healthier diet and more nutritional food will continue to strengthen vegetable oil and beef demand. Primary products conversion into processed food is one of the more interesting and profitable businesses at the world level.
These new forms to organize production provides an incentive to develop a dynamic system that combines agricultural and industrial products to transform in a profitable manner lands products into final goods of higher value added. These permits and require at the same time an efficient technical and economic coordination of the activities involved throughout the productive process, creating progressive productive linkages with positive effects for the whole economy. Together, they generate strong externalities with increasing demands for innovation and qualify employment.
