Africa’s Market for Crops is the World’s Fastest-Growing
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The global farm-gate market for crops is worth $6.6 trillion but is growing at 7.2% year on year, so will add $2.1 trillion by 2021 to reach $8.7 trillion, a report from The Business Research Company shows. The growth rate has accelerated from an average of 6.9% a year up to 2017, which allowed the market to grow from $5 trillion in 2013 to $6.6 trillion by 2017. Crop market growth would be even higher except that yields of crops like rice and wheat have plateaued, which because the supply-side influence on the size of this market is strong, acts as a restraint on growth. Crops account for over half of the global agricultural market, which is growing at the slightly slower rate of 6.2% a year.
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Crop production is very fragmented with a large number of small players. Some consolidation is taking place: Del Monte Pacific, Cutrale Group, Sumitomo Corporation, Alico, Del Monte Foods and Safra Group are among the groups involved in merger and acquisition activity in recent years.
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