Agribusiness

xorganic-farming-640x426-jpg-pagespeed-ic-thzrqz2irqWhen a business sector sees a rash of mergers and acquisitions, it’s for one of two reasons, growth or decay. The organic food industry has seen a lot of acquisitions by companies anxious to get in on the ground floor of the 5% annual growth rate in organic food and regenerative farming. Meanwhile, on the dark side, Monsanto is facing takeover by Bayer, not for any positive reasons, but because they are both looking into the abyss. Merger is one way to survive when the farmers they are competing for are spending less. Farmers aren’t stupid – they can do the maths. When they see diminishing returns on their investment in seeds and agrichemicals, they reduce their spending. Continue reading