A Bold New Caribbean

A griculture has always played a significant role in the Caribbean economy, providing food and jobs to the islands. According to the Food and Agriculture Organization, countries like Haiti, Dominica, Guyana, and Grenada report that agriculture makes up between 7% and 17% of their GDP. However, the industry faces challenges like climate change, increased costs, water scarcity, and increased energy demands, which create many obstacles. These obstacles include unpredictable weather patterns, extreme weather events, environmental damage, limited available land, and growing demands for water and energy. While traditional methods have been effective in the past, a new approach is needed to ensure sustainable agriculture for future generations One solution that has yet to be fully explored in the Caribbean is Agricultural Technology (AgTech), also known as Smart Agriculture. AgTech uses innovative technology to improve efficiency, profitability, safety, and sustainability while reducing traditional farming practices’ negative environmental and social im- pacts. By combining science and technology, AgTech enables farmers to collect data, analyze efficiency, monitor growth and quality, and more, resulting in cost savings and increased yields. This technology in- cludes hardware and software, business models, cutting-edge applications, advanced tools such as ro- bots, drones, temperature and moisture sensors, and data analytics. The rapidly evolving field of AgTech has the potential to transform agriculture in the Caribbean by increasing yields, conserving resources, and ensuring food security for future generations.

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The Case for AgTech Investment in the Region

Rising Demand for Food Security

Market Growth and Potential

From 2018 to 2020, the Caribbean spent an enor- mous US$13.76 billion on imported food. This makes it clear that improving the region’s food security is crucial. To do this, it’s urgent that lo- cal food production is increased. Consumers who prioritize their health prefer food that is sustain- ably and locally sourced. One way to achieve this is through AgTech, which can boost local food production, reduce reliance on imports, and en- sure a steady food supply.

The agriculture industry is growing rapidly world- wide, with the smart agriculture market in par- ticular experiencing significant growth and po- tential. In 2022, the market was valued at USD 19.91 billion, and it is expected to reach USD 43.37 billion by 2030 due to a compound annual growth rate of 10.2%. In the Caribbean, there is a strong desire to reduce food imports, which creates a demand for AgTech solutions that align with the region’s goals. This growth in the market provides an appealing opportunity for investors who are interested in investing in a sector that connects food production and consumption.