{"id":490,"date":"2021-12-21T00:00:00","date_gmt":"2021-12-21T00:00:00","guid":{"rendered":"https:\/\/www.rbcwealthmanagement.com\/en-asia\/2021\/12\/21\/feeding-the-future-how-agritech-and-foodtech-can-power-food-sustainability\/"},"modified":"2024-02-13T13:27:33","modified_gmt":"2024-02-13T18:27:33","slug":"feeding-the-future-how-agritech-and-foodtech-can-power-food-sustainability","status":"publish","type":"post","link":"https:\/\/www.rbcwealthmanagement.com\/en-asia\/insights\/feeding-the-future-how-agritech-and-foodtech-can-power-food-sustainability","title":{"rendered":"Feeding the future: How AgriTech and FoodTech can power food sustainability"},"content":{"rendered":"\n

Food \u2013 the production, consumption and distribution of it \u2013 is generating a carbon footprint that has been overwhelming the planet. An estimated 22 percent of food produced for human consumption <\/a> is lost due to poor transportation and harvesting practices before reaching retail markets. What we eat, and how that food is produced, not only affects our health, but also has a major impact on the environment.<\/p>\n\n\n\n

And as the world population continues to grow <\/a>, amid decreasing biodiversity in our food supply and diminishing agricultural land, producing sufficient food to feed people while ensuring the process does not negatively impact the environment is a tough act to balance.<\/p>\n\n\n\n

Technology is key to a sustainable food future<\/h2>\n\n\n\n

Shen Ming Lee, author of <\/span>Hungry for Disruption: How Tech Innovations Will Nourish 10 Billion By 2050,<\/i> <\/span>says the central question we need to answer is: how do we increase food production \u2013 both quantitatively and qualitatively \u2013 in an increasingly resource-scarce future?<\/p>\n\n\n\n

“Time and time again, we’ve seen that technological innovation is a necessary path to advance an industry,” Shen points out.<\/p>\n\n\n\n

She explains that the food and agriculture industry is no different and that nourishing the global population, while meeting environmental and economic goals, requires that we “harness the power of science and technology to create a more sustainable, nutritious and innovative food future.”<\/p>\n\n\n\n

To address these challenges, the food and agriculture industry can leverage technology to create lasting solutions from fewer resources.<\/p>\n\n\n\n

While AgriTech focuses on technical solutions \u2013 from farm to table \u2013 that optimize crop yields, FoodTech points to innovation that ensures food habits are sustainable. Together, the collective industry of FoodTech and AgriTech aims to reduce the burden on the environment while creating efficiencies via technology that benefit farmers, the planet and consumers.<\/p>\n\n\n\n

Understanding the value behind AgriTech and FoodTech<\/h2>\n\n\n\n

When it comes to the opportunities these industries provide, Fr\u00e9d\u00e9rique Carrier, managing director, head of Investment Strategy at RBC Wealth Management in the British Isles and Asia, emphasizes the need to understand the underlying trends and technology that are tackling the issues of food insecurity and climate change.<\/p>\n\n\n\n

“Instead of looking at just AgriTech and FoodTech and finding companies that fit these labels, understanding the growth trends and how companies will benefit from them is very important,” Carrier says.<\/p>\n\n\n\n

She adds that the traditional ways in which the world has been producing and consuming food simply do not work anymore. “We have to factor in a growing population, less farmland due to urbanization and extreme weather patterns, which are not conducive for traditional means of food production.” All of this further highlights the importance of adopting new technologies to mitigate these problems.<\/p>\n\n\n\n

Shen points out that food and agriculture is a complex industry but one that needs more people talking and thinking about it.<\/p>\n\n\n\n

“Especially for those not yet really in the thick of food and agriculture, [investors] need to take the time to understand the nuanced issues that exist in this space,” Shen explains, adding that this will help them generate a return and make a positive social or environmental impact.<\/p>\n\n\n\n

Carrier also turns the spotlight on systems and regulatory bodies that rate companies in this space according to their credentials. She suggests relying on experts and organizations with the right resources to evaluate and conduct due diligence that individuals may not be able to do on their own.<\/p>\n\n\n\n

“You have to make sure that these ratings are not just ticking boxes, but that there’s really an understanding of how the business operates,” she explains.<\/p>\n\n\n\n

The growing appetite for innovative solutions<\/h2>\n\n\n\n

Carrier highlights <\/span>how technology can help<\/a> deliver more with less: “solutions such as precision farming and gene technology can increase yields on agricultural lands.”<\/p>\n\n\n\n

She says supply chain efficiencies are also hugely important, because more than <\/span>a third of the food <\/a> produced on a farm gets lost or wasted and these losses \u2013 due to supply chain inefficiencies \u2013 would be enough to feed three billion people. Solutions, including “cold chains” and smart packaging, can help optimize various stages along the supply chain.<\/p>\n\n\n\n

Shen also lists other AgriTech innovations worth keeping an eye out for: the digitization and automation of farms \u2013 how the Internet of Things (IoT), artificial intelligence and autonomous systems like robots and drones will revolutionize the farm \u2013 and novel farming systems in which indoor farming technologies and smart-home micro-gardens aim to change the current framework of field farming.<\/p>\n\n\n\n

In terms of FoodTech, both Carrier and Shen point to alternative proteins such as plant-based products, which have a much lower environmental impact.<\/p>\n\n\n\n

Shen says, “Advances in synthetic biology and food science have allowed us to produce plant-based, cell-based and fermentation-based sources of protein to meet our increasing protein demands.”<\/p>\n\n\n\n

According to Shen, novel food products \u2013 such as low-glycemic (low GI) products \u2013 that use biotechnology and highly functional crops, “will also bring a whole host of innovation opportunities.”<\/p>\n\n\n\n

How to reduce carbon footprint<\/h2>\n\n\n\n

Our food choices can affect the environment. The food system underpinning the world’s current dietary patterns is responsible for approximately <\/span>21 percent to 37 percent of total greenhouse gas emissions <\/a>, which is a major driver of climate change, even without considering other environmental effects.<\/p>\n\n\n\n

Below are some suggestions from Shen on what consumers can do to reduce their carbon footprint:<\/p>\n\n\n\n