In the next three decades, the world will be inhabited by 9.7 billion people. The increase in population threatens food security, and this highlights the need to increase food production. While the expansion of cropland and increases in yields are possible solutions, they can have irreversible adverse effects on the environment.
This is where agriculture technology, which aims to improve food production in more efficient, sustainable and environmentally friendly ways, comes in. For instance, only 40 percent of the world’s land is available for growing crops while agriculture is already utilizing 70 percent of freshwater, according to Forbes. Agritech helps farmers to increase yields with the currently available resources through their ingenious tools and processes.
One of the most innovative agritech startups is SWIIM (Sustainable Water and Innovative Irrigation Management), as listed by Forbes. It uses a patented process of monitoring water budgets and computing data to help large-scale water users manage their consumption better. Bill and Melinda Gates Foundation, Khosla Ventures, GV (formerly Google Ventures), Monsanto Ventures and Andreessen Horowitz are among its investors.
Another Forbes-listed startup is BluWrap. The company uses a patented oxygen management technique that helps extend the shelf life of fresh protein. Its technology also allows for transportation by ocean instead of by air, which cuts costs. BluWrap has raised $18.6 million in venture capital.
SWIIM and BluWrap are just two of the hundreds—or even thousands—of agriculture technology startups that are looking to be part of the $3 trillion agriculture industry. In the same manner, investors are also on the lookout for the “next big thing”, so to speak, in agritech. Another Forbes article said betting on big companies would give investors exposure to agritech because there are not many agritech firms in the public markets yet. However, large agribusinesses tend to invest in research and development internally or externally to defend their core business line, the size of which might overshadow any growth in new agritech innovations.
In line with that, here are some of the publicly traded agriculture technology companies investors may want to take a look at. These companies have established themselves as leaders in their fields and have proven innovative technologies that are changing or will change the agritech landscape.
1. Bunge Limited (NYSE:BG)
Bunge Limited is a global agribusiness company that is headquartered in White Plains, NY. It operates at every stage of the supply chain from farm to consumer. The company has a market capitalization of $9.43 billion based on its 140,625,046 shares outstanding. It produces a rather thin profit margin of 1.07 percent and an operating margin of 1.43 percent, but $745 million in net income is not an insignificant number.
Analysts’ average rating for Bunge’s stock is a “hold,” as the company’s stock has been trading around $76 a share, down slightly from a 12 month high of $83.75. BG offers a dividend yield of 2.73 percent and a five-year dividend growth rate of 10.30 percent.
2. Mosaic Company (NYSE:MOS)
One of the world’s largest crop nutrition companies, Mosaic focuses on two key crop nutrients—potash and phosphate. A balanced crop nutrition is important to help farmers maximize their yields. The company continues to innovate its products, with focus on developing premium phosphate products and providing balanced crop nutrition, among others. Mosaic’s stock is currently trading around $27, and StockNewsJournal suggests it might be a good time to look at the company’s data. Mosaic has a market capitalization of $10.3 billion and a revenue growth of 1.67 percent on a quarterly year-over-year basis.
3. NaturalShrimp, Inc. (OTCMKTS: SHMP)
NaturalShrimp is a global shrimp farming and biotechnology company that is developing a patent-pending technology to grow shrimp in an indoor, recirculating, saltwater facility. Its Vibrio Suppression Technology aims to scale up production capacity while also keeping all processes environmentally friendly, sustainable and efficient. In mid-January 2018 NaturalShrimp had a market capitalization of $11.40 million, and was trading around $0.12 which was near the low end of its 52-week range ($0.06 - $1.00).
4. Monsanto Company (NYSE:MON)
Monsanto Company is an agrochemical and agricultural biotechnology corporation headquartered in St. Louis, Missouri. Monsanto has a strong research and development pipeline and invests heavily on Internet of Things for agriculture. Despite having controversial genetically modified products, the company has a huge potential for growth and offers great returns to shareholders. As of Feb 20, it had a market capitalization of $53.78 billion and a dividend yield of 1.77 percent.
5. Yield10 Bioscience Inc (NASDAQ:YTEN)
Yield10 Bioscience Inc., based in Massachusetts, is an agricultural bioscience company that focuses on developing technology that would increase crop yields in the U.S. Through its platforms, such as the Smart Carbon Grid for Crops and T3 technology, the company aims to make step-change improvements to help address global food security. The company recently announced a $12.6 million public offering at $2.25 per unit and the trading price reflected the offering at $2.10 per share, which is near the bottom of its 52 week range of $1.82 - $9.30. Current market capitalization is $13.65 million. Per a company press release issued on 12/19/2017… Ladenburg Thalmann & Co. Inc., a subsidiary of Ladenburg Thalmann Financial Services Inc. (NYSE MKT:LTS), is a sole book-running manager in connection with the offering.