Expertise
Agri inputs
The success of any agribusiness hinges on correctly identifying and sourcing cost-effective quality inputs. In the agrifood industry, effective input purchasing is crucial for profitable and sustainable operations and cutting corners in this area can lead to lower quality product, health and safety concerns, and long-term impact to productivity and sustainability.
In recent years, agri input prices have fluctuated dramatically, placing increased pressure on businesses. According to the FAO’s Global Input Price Index, prices of energy, feed, fertiliser, seeds, and pesticides have reached all-time highs, with an average growth rate that far exceeds the food price index. Though this trend has been ongoing for several years, recent environmental and geopolitical shocks have exacerbated it.
With costs rising and commodity prices lowering, farmers are facing lower incomes, limited production, and food shortages. The need to source quality and cost-effective agri inputs has never been more pressing.
At Farrelly Mitchell, we understand the intense pressure that producers face to lower their costs, and we are committed to identifying sustainable and affordable agri inputs. Our consultants possess a thorough understanding of the agrifood inputs landscape, including seeds, feed, fertilisers, pesticides, machinery, and labour. We can advise on optimal input strategies to maximise yield and sustainability, and we can help navigate the regulatory and market landscape for agri inputs. We can also analyse and identify trends in input costs and help design strategies to mitigate risks.
At Farrelly Mitchell, our food and agribusiness experts have decades of experience working with clients across the entire food value chain. We have supported a wide variety of clients across the agrifood industry ranging from large scale farmers and food processors to large financial institutions. As such, our expertise is not limited by region, sector, or commodity. Whatever your strategic or operational requirements are, we have the specialised knowledge to identify cost effective and quality agri inputs that maximise productivity, and improves sustainability practices.
Some of our recent agri inputs projects includes:
A complete review of input requirements for a client seeking investment in an aquaculture farm. The project included identifying and sourcing suitable species and reviewing the availability and costs of inputs such as water sourcing, machinery, storage, packaging materials, and more.
Developing a strategic business plan for a client looking to invest in local upstream inputs trading business in Europe. We provided deep insights into regional and international supply chains through primary market research, research of commercial indicators, and international and domestic stakeholder engagement.
Agri inputs are the lifeblood of agribusiness, supplying the essential production components. However, sourcing the most effective, productive and sustainable inputs is challenging, particularly for businesses with tight profit margins.
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Essential agri inputs include high-quality seeds, animal feed, fertilisers, pesticides, herbicides, irrigation systems, and even modern machinery for land management such as tractors. More advanced agri inputs include AI and drones to assist in precision farming. Labor and energy are also vital components.
In recent years, farmers have struggled with volatility in agri input prices and availability, ultimately affecting their ability to procure inputs affordably and in a timely manner. This has led to limited production capabilities, lower incomes, and ultimately, food shortages.
Agri input availability is prone to geological, geopolitical, and supply chain disruptions, causing severe fluctuations in price. For example, Covid-19 disrupted global supply chains, escalating fertiliser and seed costs. Similarly, the Russia-Ukraine conflict affected the supply of agri inputs like gas for fertiliser production and grain, leading to marked price increases globally.
Sourcing inputs locally is a cost-effective and environmentally responsible strategy, as it lowers logistics costs and overall food milage. Circular agriculture may also prove effective – for example, livestock farmers can repurpose manure to supplement fertiliser use and lower costs.
If you are looking to optimise your input strategies, our experienced agribusiness consultants are ready to assist. Contact us today to harness our expertise and make informed agri input decisions. Let’s cultivate success together.
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