UTRECHT (Commodity Online): Even though the worlds population has doubled since 1970, but the global funding towards agricultural research remains unchanged at $40 billion today, according to Rabo Bank.
Rabo bank, global leader in Food and Agri financing and in sustainability-oriented banking, has urged the private and public sector to invest more in sustainable agriculture to keep up with the growing demand of the world.
Farmers are able to feed the growing population but major problem faced are 1) Competition from other farmers, often in other countries, based on lowest price. 2) Large global food companies are demanding lower prices for farm produce and major industrial firms are demanding higher prices for inputs and agricultural supplies.
To solve this problem the bank has asked the agri commodity traders, food processors and retailers to take the lead in collaborating with farmers and support them with investments.
The Rabo bank suggests four ways to meet the growing demand:-
- Trigger long-term investments such as structural access to inputs such as fertilizers, machinery, seeds and crop protection chemicals and promote knowledge about best agronomic practices.
- Training for primary food producers.
- Stabilize demand by investing directly in sustainable farmers.
- Make produce more accessible by improving logistics and finance, urge governments to remove trade barriers and stimulate free trade.
