Agritech and its challenges as seen by Natixis CIB 

While the Paris International Agricultural Show is in full swing, Eric Benoist, Tech & Data research specialist at Natixis Corporate & Investment Banking, explores the answers offered by “agritech” and more specifically, satellite imagery. Faced with the major challenges facing the agricultural sector, these new technologies are highly complex and require significant funding.

With a global population expected to exceed 10 billion in 2060, food demand will increase by nearly 50% by 2050, according to the Food and Agriculture Organization of the United Nations (FAO), requiring significant adjustments in agricultural production. This, along with climate change, soil erosion and changing consumer preferences, is one of the many challenges facing the agricultural sector.

The crucial question of financing

Emerging technologies, including the use of satellites, offer promising solutions for precision agriculture and irrigation. By providing accurate information on what is happening in the field, at each stage of the growth cycle (disease detection, insect infestation, nutrient deficiencies…), these innovations can help reduce crop losses due to diseases and pests, while optimizing the use of water resources. Space-based imagery can also be used for disaster prevention and management, including forecasting and monitoring floods, droughts, storms and wildfires. FAO has set up a platform of data from major public providers (UN, NGOs, academia and private sectors, space agencies) that are already helping many industry experts, economists and farmers to derive substantial value from space.

Although geospatial data is becoming more and more accessible, Benoist points out that advanced services remain out of reach for many producers and for the agricultural sector alone. Two main sources of funding emerge: large agri-food companies and governments, which could establish public-private partnerships to support innovation in the sector. However, this requires strong political commitment, especially in an uncertain geopolitical context.

In conclusion, to address the growing challenges of the agricultural sector, a collaborative approach and increased financial support are essential in order to ensure food security while preserving natural resources.

Read the full interview with Eric Benoist, Tech & Data Research Specialist at Natixis Corporate & Investment Banking, on the Natixis CIB website.