BCFTA: A Strong Push For The Agricultural Sector To Invest In Technology

Primetics are proud members of the British Corn & Feed Trade Association and we were delighted to write a piece for their 2022 annual review discussing the strong push for the Agricultural Industry to invest in technology.

2022 was undeniably marked by uncertainty. Global commodity markets were constrained at the start of the year as regions battled drought, rising fertiliser costs, and declining yields and acreage. Poor wheat harvests combined with rising demand placed pressure on the market, as did rising prices for other ingredients like soya. Then, in February, Russia’s invasion of Ukraine shook global supply chains, limiting exports of key feed ingredients like wheat and maize from Ukrainian ports. In July, the Black Sea Grain Initiative saw grain leave Ukrainian ports for the first time since February, but grain exports were down 1 million tonnes from October due to fewer checks and subsequent port backlogs.

Uncertainty surrounding Ukrainian exports was exacerbated by the impact of weather on international crop yields, rising energy costs, and volatile currency exchange rates. With little to no change on this front, the animal feed market is likely to remain volatile in the coming months. What is clear is that the events of 2022 are likely to ripple into 2023. Many in the industry, however, are turning to technology to provide a sense of security and dependability.

In recent years, there has been a strong push for the agricultural sector to invest in technology. Indeed, the UK government is taking a proactive approach by providing a wide range of financial assistance to those in the industry looking to invest in technology that can streamline processes and increase productivity, and it appears to be working. Feed producers are increasingly interested in software solutions that can improve, streamline, and increase production efficiency and productivity, according to industry software suppliers. Modern feed management solutions include many features such as raw material procurement, product traceability, formulation management, prescription control, and shipping to significantly improve feed mill operations, increase efficiency, and provide additional protection against risk and future uncertainty.

The animal feed sector continues to face new challenges year after year, and as this year draws to a close, how 2023 will unfold remains unknown. Droughts caused by climate change continue to have an impact on yields and key ingredient prices, and the ongoing conflict in Ukraine means that key exports cannot be guaranteed in the required volumes, or at all, beyond the 120-day extension of the Black Sea Grain Initiative. Where market conditions and global events are beyond our control, technology can provide the dependability and protection that our businesses require in these difficult times.