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Organic Grain Farming Global Market Report 2021: COVID 19 Growth And Change to 2030

Organic Grain Farming Global Market Report 2021: COVID 19 Growth And Change to 2030

  • May 2021
  • 175 pages
  • ID: 6070265
  • Format: PDF
  • The Business Research Company


Table of Contents

Major players in the organic grain farming market are Marroquin Organic International, Organic Partners International, Briess Malt and Ingredients Co., St. Charles Trading, International Sugars, Tate and Lyle, Ingredion Incorporated, Cargill, Roquette America and Royal Ingredients Group.

The global organic grain farming market is expected grow from $24.29 billion in 2020 to $26.09 billion in 2021 at a compound annual growth rate (CAGR) of 7.4%. The growth is mainly due to the companies resuming their operations and adapting to the new normal while recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $44 billion in 2025 at a CAGR of 14%.

The organic grain farming market consists of sales of organic grains and related services that are used in the food industry, animal husbandry and pharmaceutical industry. The production of crops without using fertilizers, toxic chemicals, productivity-enhancing enzymes and other chemicals is known as organic farming.

The increasing preference of consumers for organic food products is a key factor driving the growth of the organic grain farming market.Enhanced performance and better quality of products have driven the growth of organic products in the last five years.

For instance, According to the research institute of organic agriculture (FiBL) 2020, globally, there are more than 70 million hectares of organic farmland.Also, the rising demand has motivated manufacturers to make organic food more accessible to mainstream markets.

For example, Woolworths and Coles supermarkets in Australia now sell a broader variety of organic produce, making it more convenient to purchase organic goods.

The internet of things (IoT)-enabled smart farming is a key trend in the organic grain farming market.To collect the crop health data and moisture level, the IoT-enabled devices and sensors are installed in the field and the farmers can view these data easily through their tablets and cell phones.

For example, the farmer can deploy sensors to start irrigation if the level of soil moisture drops. Fasal, founded in 2018, is an innovative artificial intelligence IoT platform that helps farming ecosystems in weather forecasting, irrigation management, soil disease and viral breakout prediction, real-time soil and crop condition alerts, pest management and crop disease management by using data science in combination with artificial intelligence.

The organic grain farming market covered in this report is segmented by type into organic corn; organic wheat; others and by end-user into household; commercial; others.

The risks associated with the high cost of transition and uncertain market guarantee at the end of the transition period is a key factor hampering the growth of the organic grain farming market.The transition time for a farmer to switch to organic grain production is 36 months from the last prohibited product being used.

In the transition period, the farmer pays all the organic production costs but sell them to the traditional markets as they cannot be sold organically.So, the farmer may lose around $208,705 each year, with a cumulative deficit of $417,000 by year two.

The farmer can market grains for organic rates in the third year to a profit of $843,000, but it needs $417,000 in working capital to get out of years one and two. Therefore, the risks associated with the high cost of transition and uncertain market guarantee at the end of the transition period is expected to hinder the growth of the organic grain farming market.

In July 2019, Hassad Food Company, a food company owned by the Qatar Investment Authority acquired Sunshine Foods International for an undisclosed amount.Through this acquisition, Hassad Food Company made an agreement with Sunshine Foods owner to provide the Qatari market with organic food grains to meet the demand and to strengthen the country’s food security.

Sunshine Foods International is a Canada-based organic grain and oilseed company.

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