Why is Practice of Contract Farming Driving Agricultural Micronutrients Market?

 

According to a report by P&S Intelligence, the global agricultural micronutrients market is predicted to generate a revenue of $9,009.2 million by 2023, increasing from $5,848.0 in 2017, progressing at a 7.5% CAGR during the forecast period (2018–2023). The deficiency of micronutrients in soil & its effects on the yield, rising investments in the agricultural industry, and increasing population, need for supplement for maximizing crop, and rising requirement for food are the key factors leading to the growth of the market.

 The market is divided into manganese, boron, zinc, molybdenum, and iron, out of which, the zinc division accounted for the major revenue share of the market. Zinc is a key constituent of several enzymes and proteins in a plant and is also important for metabolic processes, such as the elongation of internodes and production of hormones. Apart from this, the molybdenum division is projected to register the fastest growth in the market during the forecast period.

 

 

 

 

 

 

 

 

 

 

 

 

 

When crop type is taken into consideration, the agricultural micronutrients market is categorized into oilseeds and pulses, cereals and grains, and fruits and vegetables. Among all these, the cereals and grains category accounted for the largest share of the market during the historical period (2013–2017). Micronutrients are utilized extensively for the proper growth of grain and cereals and for boosting the overall yield. The surging population is leading to high consumption of micronutrients for the production of cereals and grains.

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Geographically, the agricultural micronutrients market was dominated by the Asia-Pacific region during the historical period, and the region is further projected to grow at the fastest pace during the forecast period. The low biofortification of crops and high deficiency of micronutrients in the soil, owing to continuous reaping and sowing cycles, are driving the demand for agricultural micronutrients in the region. Governments are also trying to create awareness among farmers regarding the advantages of micronutrients, thereby driving the regional market.

The growing practice of contract farming in India and other such countries is opening up wide opportunities for the players operating in the agricultural micronutrients market. Governments in these countries are taking initiatives and supporting the agricultural sector. Under the practice, an agreement is made between processing firms and farmers, where supply and products of agricultural products are carried out at predetermined costs. The buyer also has to provide some kind of production support to the farmer as per the agreement.

The global population is on a rise and is resulting in the increased demand for food products, which, in turn, is leading to the growth of the agricultural micronutrients market. As per the United Nations Department of Economic and Social Affairs, the worldwide population is projected to grow to 9.8 billion by 2050, increasing from 7.6 billion in 2017. This surge in the global population is bound to create increased demand for food products, which will lead to increased adoption of agricultural micronutrients.

Hence, the market is being driven by the surging population and rising practice of contract farming.