AgTech Offers Potential for Canada’s Agriculture Sector to Help Economic Recovery: KPMG Report
An increase in the number of AgTech startups helps transform the industry
TORONTO, June 24, 2021 / CNW / – A new three-part report, Growth Canada: How the agro-industry is evolving, by KPMG in Canada, finds that agribusiness has the potential to help from Canada economic recovery through the adoption of agricultural technologies (AgTech).
“There has never been a more opportune time to introduce digital innovations that can help address the emerging challenges of a rapidly changing agricultural sector,” says David Guthrie, partner and national agri-food leader, KPMG in Canada. “AgTech innovations such as drones and sensors are creating opportunities to transform the agriculture and agri-food industries and alleviate the many pressures on our food system. “
For Canadian farmers, these challenges include food safety, population growth, food insecurity, sustainability expectations, labor shortages, stiff foreign competition, lack of broadband connectivity. rural and climate change.
The KPMG report notes that the sector has great potential to be an engine of economic growth. According to the Council on Economic Growth of the Federal Minister of Finance, from Canada the agricultural industry is expected to generate $ 11 billion of GDP by 2030, mainly due to population growth.
But, as the report finds, adopting AgTech innovations to automate and streamline many processes could make the industry significantly more productive and responsive to growing consumer expectations.
By leveraging data management technologies, sensors, predictive analytics and artificial intelligence, farmers can harness the information to improve irrigation and pest control, monitor severe weather, and improve productivity. , resilience and worker safety. AgTech innovations can also lead to more precise use of resources, less waste, faster time to market, improved traceability and biosecurity, the report says.
AgTech also creates opportunities for agricultural workers to learn and use new skills such as data collection and analysis. These innovations are essential to the practice of so-called controlled environment agriculture (AEC), or indoor agriculture, which makes agriculture more sustainable, adaptable and efficient.
“With all the opportunities that technology offers to tackle climate change, improve nutritional security and increase sustainability, there is no doubt that this is the way of the future for agriculture,” said M Guthrie.
Soaring AgTech start-ups
While Canadian farmers have traditionally relied heavily on federal government programs and grants to fund new technologies, another avenue has emerged to support them: private equity investors and venture capital firms.
Globally, AgTech’s venture capital funding has exploded since 2015, says Guthrie. Venture capitalists have invested US $ 4 billion in AgTech start-ups since 2019, and AgTech should be valued at US $ 729.5 billion by 2025, the report says.
At least 166 start-ups are now focusing on AgTech by Canada, helped in part by the federal government’s Canadian Agricultural Partnership program, which engages private sector venture capitalists. Mr. Guthrie says this partnership program has helped spur agricultural innovations, such as new crop varieties, livestock breeds, nutrient management practices, tillage methods and farm machinery, as well as advancements. biotechnology, precision agriculture, communications and information technology.
The complete three-part agro-food report is available here.
About KPMG in Canada
KPMG LLP, a limited liability company, is a full-service auditing, tax and advisory firm owned and operated by Canadians. For more than 150 years, our professionals have provided consulting, accounting, auditing and tax services to Canadians, inspiring confidence, fostering change and fostering innovation. Guided by our fundamental values integrity, excellence, courage, together for the better, KPMG employs nearly 8,000 people in more than 40 sites across Canada, serving private and public clients. KPMG is regularly ranked one of from Canada top employers and one of the best places to work in the country.
The company is incorporated under the laws of Ontario and is a member of KPMG’s worldwide organization of independent member firms affiliated with KPMG International, a private UK company limited by guarantee. Each KPMG firm is and describes itself as a legally distinct and separate entity. For more information, see home.kpmg/ca.
SOURCE KPMG SENCRL / srl
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