The agricultural industry is an essential component of global food production and the backbone of many national economies, as it accounts for 4% of the global Gross Domestic Product (GDP). The industry has undergone significant changes over the past few decades, with technological advances and changing consumer demands driving innovation and efficiency.
According to Statista, gross production value in the agriculture market is projected to amount to $298.30 billion in 2023. With this in mind, I think fundamentally sound agricultural stocks FMC Corporation (FMC), AGCO Corporation (AGCO), and ICL Group Ltd (ICL) could be solid additions to your portfolio.
Over the past year, the industry endured several challenges, including rising labor, packaging, and distribution costs, high rates of inflation, and lingering supply chain problems, which had a significant impact on production levels and market prices.
However, companies in this space consistently implement cost-reduction actions and pricing strategies to sustain margins while minimizing environmental impact and ensuring the sustainability of natural resources.
Despite these challenges, the long-term outlook of the agriculture market remains positive, driven by rising demand for food due to population growth and dietary changes. As per United Nations estimates, the global population will surge to 8.5 billion in 2030 and 9.7 billion in 2050. This upsurge will propel the…
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