UN: urbanization is an opportunity and a threat for agriculture
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UN: urbanization is an opportunity and a threat for agriculture

The increasing urbanization of the global population is putting more strain on poor nations’ food sources, according to the UN’s Food and Agriculture Organisation. The organization said that the movement into cities was changing people’s diets, with consumption of foods like meat, fruit and vegetables all rising.

This is problematic, as the same trend that is taking these people into cities is resulting in a lack of rural agricultural investment. City dwellers are importing more, and as poorer nations’ own agricultural sectors diminish, they will be forced to rely on these imports.

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Less developed nations are on track to deliver a further 1 billion people to the planet by 2030. The fastest increase in population will be in urban areas, which consume the bulk of our food. Yet, it is the small scale farmers in sub-Saharan Africa and Asia that produce 80% of all food supplies.

The organization said in a report: “If farming systems are able to satisfy the emerging demand, urbanization will become an opportunity for more-inclusive growth in rural areas. If not, urbanization will open the doors to increasing dependence on food imports. Urbanization thus provides a golden opportunity for agriculture. However, it also presents challenges for millions of small-scale family farmers.”

Disclosure

Dominion holds a number of companies involved in agriculture and related sectors in its Global Trends Managed Fund.


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