AgriTech, or technological solutions that can increase crop yields while reducing environmental stress, has an important role to play in improving food security, according to Frédérique Carrier, head of investment strategy in the British Isles and Asia at RBC Wealth Management.
It will also create opportunities for investors, Carrier added.
Global food security, already severely challenged by climate change, has become even more precarious following Russia’s invasion of Ukraine.
Due to the invasion’s timing, planting and harvesting seasons have been severely disrupted.
Carrier said: “Global food security, already severely challenged by climate change, has become even more precarious following Russia’s invasion of Ukraine. Sadly, there are no quick fixes. Countries with low agricultural capabilities, both in the developed and the developing world, are likely to struggle the most.
“Technological solutions will likely play an increasingly important role in ensuring more people are fed despite increasingly difficult conditions. We see several areas where investors can find investable ideas in which growth prospects are driven by the search for food security.”
The various technological solutions include precision and vertical farming, gene technology and waste reduction technologies.