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Technological Advancements To Be A Stumbling Block To The Specialty Crops Market

Technological Advancements To Be A Stumbling Block To

Persistence Market Research (PMR) has published a new research report on the specialty crops market titled “Specialty Crops Market: Global Industry Analysis 2012–2016 and Forecast 2017–2025.” Specialty crops are plants that are intensively cultivated. There are many plants that are specialty crops when cultivated but are also collected from wild plantations. Wild plants are not considered specialty crops even though they may be used for the same purpose as cultivated plants. Eligible plants must be cultivated or managed and used by people for food, medicinal purposes, and aesthetic gratification to be considered as specialty crops.

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Farmers across the globe are facing several issues relating to cropping and farming. Production risks relate to the possibility that the yield or output levels will be lower than projected. Chief sources of production risks ascend from adverse weather conditions such as drought, freezing, or excessive rainfall during the harvest or planting season. Production risks may also result from damage due to insect pests and disease despite control measures employed, as well as from failure of equipment and machinery like irrigation pumps.

Similarly, financial risks lead to not having sufficient cash to meet expected obligations, generating lower than expected profits, and losing equity in the farm. Sources of financial risk commonly result from production and marketing risks described earlier. In addition, financial risks may also be caused by augmented input costs, advanced interest rates, excessive borrowing, higher cash demand for family needs, lack of adequate cash or credit reserves, and negative changes in exchange rates. There are other risks available as well such as marketing risks, legal and environmental risks, and human resource management risks. In order to address these risks, the adoption of specialty crops has emerged as a potential option in this scenario.

According to the report, the global specialty crops market is expected to witness a CAGR of 3.7%. From a valuation of US$ 1,382.3 Bn in 2017, the market is projected to touch a valuation of US$ 1,842.3 Bn by the end of 2025.

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Growing Free Trade to Augment Market Growth
Free trade has facilitated in the integration of the supply chain, which results in increasing trade activities and trade volumes between countries. Free trade has increased access to higher-quality, lower-priced goods. Cheaper imports, particularly from countries such as China and India, have also eased inflationary pressure in Latin America. Specialty crops producers are now getting easy access to other countries in the Latin American region, which is anticipated to aid in the growth of the specialty crops market over the forecast period. In developed markets, organic vegetables and fruits are preferred over the conventional types as consumers are choosing products that are natural with fewer chemicals and additives. Organic food products do not have chemicals or additives and offer the required nutrients, and thus are gaining higher trust than conventional food products. Even though high prices of these specialized products are restricting product acceptance by the middle class population, growing disposable income and swelling focus on healthy living will support demand for these products in the long run.

Crop Adulteration to Challenge Market Growth
Owing to the growing demand for specialty crops, adulteration has become a trending practice to increase supply quantities. Though there are strict regulations for food products in North America, producers engage in adulteration in order to obtain financial gain, which is anticipated to restrain revenue growth of the specialty crops market significantly.

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Read More Trending “PMR Exclusive Article”
• Global Market Study on Organic Honey: https://www.persistencemarketresearch.com/market-research/organic-honey-market.asp
• Market Study on Organic Oats: https://www.persistencemarketresearch.com/market-research/organic-oats-market.asp

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