ALAS Group

Agriculture Can Become A Driving Force For The Green Transition

November 17th, 2022.

Agriculture is fast becoming the backbone of economic development in the Southern Hemisphere as nations are looking at diversifying their economies in preparation of an uncertain future.

Over the past past 2 years, the agricultural sector in the south has experienced a notable growth of about 10,8% point average, due to an increase in the global demand for agricultural commodities. This resulted in higher commodity prices which helped boost farmer's income and support the economy.

Positive agricultural production has also helped to mirror a significant impact on employment opportunities for the general populace thereby helping to address issues surrounding poverty.

However, the agricultural sector has experienced setbacks due to various factors that include, the effects of climate change, high input cost and biosecurity case threats which corporately have elevated commodity prices on the local and international markets. Furthermore, high grain and oilseed prices have added cost pressures on other overlapping agri-sectors, posing a threat and insecurity to the future of those sectors.

Agriculture exports and imports have also been disrupted by geo-politics and sanctions, a scenario more pronounced in the Russian-Ukrainian war, which limit the presence of commodities on those markets, hence it is imperative for agriculture based economy countries to develop and enhance alternative bilateral and multilateral trade relations within the region and internationally to reduce reliance on one or limited export mainstreams.

Given that there is a global campaign for green technology today, countries that have embraced agriculture could take advantage of the situation by producing or harnessing clean energy using agricultural energy crops(corn), as is the case in the United States of America, where farmer's harvest wind, biomass and solar energy using energy crops. This not only serves to ensure a greener environment but also ensures a long term source of income for farmers and subsequently helps support the economy.

Renewable energy produced on the farms using energy crops, can be commercialised and sold to energy companies, which is an alternative pathway to help and support the agricultural sector.

However, the aforementioned is not achievable without infrastructure and investment. Therefore there is a need for partnerships between governments, local stakeholders and international partners on Public Private Partnerships and Foreign Direct Investments, to ensure propagation and sustainability of the agricultural industry.

ALAS Group Corporation has a global responsibility to help and assist in economic turnarounds through strategic partnerships with governments and global stakeholders on diverse platforms of renewables and economics, and has expanded its global operations network into the Southern Hemisphere.

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