Although the agricultural sector has largely been segmented in
the past, there appears to be a continued trend of consolidation in
the industry. As the global population has grown, so too has the
demand for food and associated goods. But the appetite for food is
changing rapidly and has fueled the rise of M&A activity. A
recent report by KPMG discusses the trends driving
M&A activity in agribusiness.
A notable trend involves the rise of health products, which stem
from consumer desires to seek more health conscious and
sustainability-focused options. The increased focus on health and
sustainability has begun to reach developing nations, and this
demand has necessitated that that nations without the
infrastructure to produce higher quality food be active in the
market and pursue opportunities to produce higher quality food.