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Sunday Wrap-Up: A New Poll Showing Growing Interest in AgTech & New Public Fund To Further Investments in Greenhouses
Discover every Sunday a complete wrap-up of the week in the indoor farming sector.
Good morning readers, this week we have a recent poll by McKinsey & Company, showing that farmers are optimistic about their profits over the next two years, with 70% expecting to see profits rise or remain steady. Farmers in South America are adopting digital channels, while those in North America and Europe focus on innovative agtech and those in Brazil focus on biological goods.
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In addition, the new plan from the Saudi government is expected to further the expansion of greenhouses in Saudi Arabia is expected to increase efficiency and support the development and sustainability of the agriculture industry in the country.
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According to a poll of 5,500 farmers conducted by McKinsey & Company, strong crop prices are providing farmers reason for cautious optimism despite economic turbulence. Over the next two years, 70% of farmers are positive about their profits, and 80% predict that they will either rise or remain steady.
Farmers are embracing the changes head-on, experimenting in new fields, and using new tactics despite an uncertain future with supply chains affected by global crises. South America is an early adopter of digital channels, while North America and Europe take the lead in innovative agtech and Brazil in biological goods. The top three items that farmers anticipate buying online in the next two years are digital payments, farm equipment maintenance, and precision ag gear.
The expansion of the greenhouses sector is in line with Saudi Arabia’s Vision 2030 plan, which aims to achieve national food security, increase local content, and create job opportunities. Eng. Al-Fadhli emphasized the importance of the greenhouses sector in achieving these goals, stating that it is considered “one of the main sectors that are financed by the Agricultural Development Fund (ADF).” The ADF provided loans worth SAR 5 billion to productive sectors in the country in 2022.
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The expansion of the greenhouses sector is also expected to increase efficiency and support the development and sustainability of the agriculture industry in Saudi Arabia. Greenhouses have been used in the country for over 30 years and have seen significant developments in terms of technical, productive, and protective capabilities. They allow for the cultivation of crops during off-seasons and help to extend their availability. Greenhouses are also a key factor in the success of specialized agricultural production, such as organic farming, as they provide protection from various climatic conditions.
According to studies conducted by the Ministry of Environment, Water, and Agriculture, the adoption of new technologies in the agriculture sector and greenhouses has contributed to a saving of up to 60% in irrigation water. It has also helped to reduce costs, improve quality, and increase farmers’ profits. The percentage of investment profits in greenhouses has been found to range from 15% to 60%. There are currently 73,542 greenhouses in Saudi Arabia.
Agritecture announced the upcoming launch of Agritecture Designer, a first-of-its-kind online platform focused on controlled environment agriculture (CEA). As the CEA industry faces economic uncertainty, Agritecture Designer offers a data-driven solution to help those interested in entering or learning more about the sector do so with confidence.
The platform will provide users with educational resources, including multiple hours of video lessons on commercial urban farming best practices taught by the Agritecture team and some of its partners. In addition, Agritecture Designer features a farm modeling tool that allows users to create a comprehensive financial projection in seconds, which can then be continuously refined and exported to Excel. This will help users better understand the potential profitability of their farm.
The platform also includes a crop pricing tool, which calculates an appropriate sales price for the user’s selected crop based on market research they enter, including information on product price, quality, labels, and sales channel.