Increased use of autonomous machinery, artificial intelligence and on-farm biologicals are among key global trends set to impact Australian agriculture over the next five years, Rabobank says
Leading specialist food and agribusiness bank Rabobank has provided Australian farmers with a five-year outlook on some of the top global agricultural trends set to be felt in Australia to 2030.
Some of these key trends include the increased use of autonomous machinery, artificial intelligence and on-farm biologicals, as well as a higher demand for dairy products tailored to older consumers.
Potential changes in trade dynamics are also expected to be increasingly felt across the global food and agribusiness supply chain in the next five years, according to Rabobank, as the United States could implement import tariffs.
Other top trends in global food and agriculture that Rabobank have observed include a growing popularity in smaller fruit and vegetables, including berries and cocktail tomatoes, and more convenient options such as pre-cut vegetables and easy-peel fruit.
With 2030 being a key deadline for several corporate climate targets and policies, Rabobank says there is set to be a continued focus on sustainability and sustainable packaging, such as recycled-moulded fibre.
Sustainability measures can also be achieved through technological advancements, including on-farm electrical machinery.
Artificial intelligence
AI is another form of technology that is increasingly gaining prevenance across the globe, helping transform farming practices using autonomous machinery.
Farming operations around the world have already and will continue to adopt AI and autonomous machinery, leading to improved efficiency and precision.
This trend is expected to continue at speed to the end of the decade, RaboResearch Australia and New Zealand general manager Stefan Vogel says.
“The food and agriculture sector are expected to continue to adopt various innovations, especially those that improve efficiency and deliver positive economic results,” he says.
Autonomous machinery aided by AI can include everything from large drones for crop spraying and camera-based weed killers, to driverless tractors, and some of these technologies have already been adopted in Australia.
“Labour-intense sectors like fresh produce are already using these technologies and are expected to further adopt them for tasks that can reduce manual labour like spraying, planting, harvesting, processing and packaging,” Vogel says.
“Other farming sectors are also expected to increasingly adopt these technologies where they can improve efficiency, reduce labour costs and enhance precision.”
Biologicals
The on-farm usage of biologicals is expected to significantly rise in the coming years, Rabobank says, as these natural products offer enhanced plant health and growth by improving nutrient uptake, pest resistance and soil health.
Vogel expects that biologicals will become more readily accepted in traditional farming practices and be used in conjunction with other conventional farm inputs to enhance their effectiveness.
“As an example, biologicals are being used alongside nitrogen fertiliser to help take nitrogen out of the soil and fix it to the plant,” he says.
Biopesticides derived from natural sources – such as bacteria and fungi – also have the potential to control pests and diseases, with reduced impact on beneficial organisms and the environment, Vogel adds.
Dairy demographics
An ageing global population is expected to drive demand for dairy products tailored to older consumers, according to Rabobank.
“As people age, they often seek out products that support their health and wellbeing, such as protein shakes and medical nutrition,” Vogel says.
“This trend presents opportunities for the dairy industry to develop new products that cater to the needs of older consumers.
“This group of the population represents a growing category, such as China, which by 2030 is expected to have 100 million more people over the age of 55 than it did in 2020.”
The largest demand of dairy growth is seen in South East Asia, Africa and other developing countries, Vogel adds, creating opportunities for dairy-exporting nations who potentially may struggle to keep up with this pace of demand growth through to 2035.
Trade dynamics
Many exporters dealing with the United States, as well as China to face a potential trade war due to US import tariffs, Vogel says.
“Companies around the globe that are exporting to the US may need to consider strategies to mitigate the impact of tariffs, including options like lowering prices to maintain competitiveness in the US market or investing in local production facilities in the United States to avoid tariffs altogether,” he says.
“However, the uncertainty surrounding potential tariffs and trade policies makes it challenging for companies to make long-term business decisions.”
On a positive note, Vogel says a strong US dollar may mitigate some of the tariff impacts.
Australia’s food and agriculture sector is expected to closely watch these developments, especially the beef industry.
Vogel says this is because the US has been importing more beef than Australia’s traditional major markets, such as Japan, South Korea or China, in recent months.