Food is Investable 2024 (Gullspång Re:Food)

Summary

• The agrifood sector represents 12% of global GDP, yet food wasted or lost globally amounts to an estimated annual value of around $1 trillion.p.3
• Global cereal production has expanded from around 400 million tons in the early 20th century to over 2.7 billion tons today.p.5
• Approximately 820 million people remain chronically undernourished, while 2 billion people are overweight or obese and 2 billion are micronutrient deficient.p.9
• The agrifood sector generates 26% of human-caused greenhouse gas emissions, accounts for 70% of global freshwater withdrawals, and drives 80% of deforestation.p.10
• As of 2023, agrifood accounts for only 2% ($150 billion) of private equity's total $8.2 trillion AUM, and received 5.5% of global venture capital funding.p.11
• The total funding needed by 2050 for a sustainable food system transformation is $200-$500 billion p.a., delivering economic benefits worth at least $5 trillion annually.p.11
• Agricultural and fisheries subsidies total $670 billion annually, offering a significant opportunity if redirected toward sustainable food system practices.p.13

Key insights

1. Crop yield growth rates for staples like wheat, rice, and corn have dropped from over 3% per year in the 1960s to less than 1% in recent years.p.9
2. Nutrients in garden crops have fallen by up to 38% since the mid-20th century due to changes in seed inputs and farming methods.p.9
3. By 2050, the agrifood sector has the potential to sequester 4-6 gigatons of carbon dioxide annually through practices like soil carbon sequestration and agroforestry.p.10
4. Total private capital invested in sustainable agrifood represents only 1.3% of all climate capital deployed across sectors according to FSEC.p.11
5. Around 60% of farmers in the United States and Europe report using or planning to adopt at least one novel technology within two years.p.14
6. Plant-based meat alternatives increased their share of global meat consumption from under 0.5% in 2018 to nearly 2% in 2023.p.14
7. Agrifood tech investments dropped by approximately 50% between 2022 and 2023, as part of an overall 38% decline in global venture capital investment.p.15