Challenges and Prospects in the Agri-food Sector

Abstract

The world is facing changes that have a significant impact on the environment and every aspect of human life. Currently, 588 million of the world's 7.8 billion people live in extreme poverty, 820 million people are starving, and 2.5 billion suffer from some form of micronutrient deficiency. The population is growing, the processes of aging and migration to urban settlements are actively underway, which is reflected in agricultural production and food demand. At the same time, the impact of the effects of climate change on the state of food security in the world is noteworthy. In addition, inequality, discrimination, and human rights abuses (including the right to adequate and safe human food) exacerbate these consequences, especially for small farms. According to the FAO, 33% of world population growth is expected in the near future. The population, from the existing 7.7 billion, will reach almost 10 billion by 2050. The population growth will lead to a strong increase in food demand. By 2050, it will be necessary to produce 70 percent more than 50-types foods, while the share of agriculture in global GDP is about 4%. While investments and innovations in the agricultural sector are increasing, the growth rate of yields is quite low. The rural population is declining and the aging process is actively underway, which has a serious impact on the labor force. Added to this is the fact that the current use of natural resources is irrational and under severe pressure. Twenty-five percent of agricultural land is severely degraded and land has long been recognized as a limited resource, while water resources are under heavy strain and there is a shortage of water in the world. Food losses and waste are an inefficient side of the sector and a strong threat to the environment. Up to 33% to 50% of the world produced food is never used for food, and the cost of these products exceeds $ 1 trillion. These trends have led to the problem of food shortages. As a result, poverty and hunger have intensified in the world. Moreover, there are four main factors that put pressure on the inherited model of agricultural production, without their solution the sector will not be able to cope with future demands. They are exacerbating the problem of hunger and food shortages in the world, putting pressure on agriculture and the ability of the sector to be able to meet future needs. These factors include: demographics, scarcity of natural resources, climate change, and food losses and waste. In Summary, overcoming these challenges requires the joint efforts of governments, investors, and innovative agricultural technologies to increase productivity and support the transition to an economy based on innovation and knowledge. Modern farms and enterprises have to work differently, mainly due to the use of technological advantages. In the future, agriculture must use sophisticated technologies and advanced equipment. Precision farming and the use of robotic systems ensure more profitable, efficient, safe and environmentally friendly agricultural production. According to the FAO report, these efforts require considerable resources: to eradicate hunger by 2030 and deal with the demographic pressures that will require an annual investment of $ 265 billion. Keywords: Agri-food sector, poverty, hunger, food security, food losses and waste.