Market Analysis

 

The Future is in Smart Agriculture

Population Growth

By the year 2050, nearly 80% of the earth’s population will reside in urban centers. Applying the most conservative estimates to current demographic trends, the human population will increase by about 3 billion people during the interim. If traditional farming practices continue as they are practiced today, then an estimated 109 hectares of new land (about 20% more land than is represented by the country of Brazil) will be needed to grow enough food to feed them. At present, throughout the world, over 80% of the land that is suitable for raising crops is in use3. Historically, some 15% of that has been laid waste by poor management practices.
The world's population has created challenges in food security and placed pressure on natural resources. These problems can be solved through technological advancement. Alternative agricultural practices can alleviate the innate limits of conventional farming methods. As a solution, Affinor Growers Inc. offers patented agricultural technology for vertical farming and controlled environment agriculture. Compared to conventional farms, Affinor technology is significantly more efficient than other types of farming in terms of usage of space and reliance on water.

Climate Change Pressures

Due to climate change, conventional farming methods are not always a viable option. Farmable land is decreasing, and the changing weather is making growing with traditional low-tech methods, more difficult. Smart farms involve technology developed from information analysis of data acquired from the fields, and the application of inputs according to data analysis for optimal crop production.

Smart Agriculture as a solution

Vertical farming provides a solution that can be centrally located to areas of higher population density, further reducing the carbon footprint through a reduction in transportation logistics and costs. Affinor technology is well positioned to be a leader in urban agriculture initiatives.

"According to Markets and Markets, the smart agriculture market in Canada is expected to grow from CAD $10.05 billion in 2018 to CAD 18 billion by 2023, at a CAGR4 of 12.39% between 2018 and 20235."

Affinor’s vertical farming systems enable products to be grown in soils, or hydroponically, without the use of pesticides, and free from chemical contaminates. The food and cannabis markets have seen an uptake by the consumer in the desire for healthier and sustainably grown products. The technology developed by Affinor gives the Company a decided edge over its craft competitors and industrial scale growers.

Markets and Markets projects the global indoor farming technology market will be $ 40.25 billion by 20226.

Market Drivers

The key market drivers fueling the growth of indoor farming are demand for fresh and nutritious food and the economic need for higher yield per square foot. Cannabis annual sales are increasing at 34.6% CAGR. There is demand for quality in cannabis as evidenced by premium brands selling for as much as $20/gram. In the minds of consumers, higher quality is what “craft” means.