As the Agri-Tech sector is expanding, this gives rise to many opportunities for the United Kingdom to expand within the global markets, where environmental, economic and social objectives are driving change. The United Kingdom have approximately 17.2 million hectares, around 70% of land area is used for agricultural activity. 36% of agricultural land is available for arable farming and the remaining is grassland, woodland or rough grazing. Agriculture technology is becoming a focus for investors globally. With limited amounts of arable land to farm on, technology can ultimately aid farmers to increase productivity of their operations.
The UK has many strengths that can build upon to become the global leaders in Agri-Tech. As it has already gained an international reputations for regulatory friendliness towards disruptive innovations. The UK spends £500 million a year on agricultural research and development, whilst in 2013; Agri-‐Tech contributed £14 billion to UK GVA. The government has set aspirations to raise R&D in the UK to match the averages of OECD.s As the UK is seeking to leave the European Union, this gives rise to several opportunities to become world leaders.
The up surge of technologies cropping up on the farm and across the supply chain stands to revolutionize the agriculture industry. It is a misconception that Agri-Tech businesses stand to disrupt the status quo. In fact agritechnologies have multiple benefits, which can aid local farmers, increase output and contribute to the national economy.
As of 2019, the UK will be leaving the EU. In 2016, when this decision was made, there was a lack of confidence amongst investors and a fall in the degree of optimism towards the UK economy, which discouraged both portfolio flows and inward investment.This was clearly indicated by the drastic fall in the value of the pound. IAG works towards a solution that can provide economic certainty in terms of investment within the farming industry due to our agri-tech being self controlled and so is not vulnerable to any structural market changes.
50% of UK’s trade is with the EU. In 2016,The UK imported £302 billion worth of goods and services from the EU, in which nearly 80%* of this trade is our food. This clearly indicates that the UK has a high marginal propensity to import, especially from the EU. IAG understands that it is important to reduce reliance on imports, by introducing technology which will make the UK self sufficient and economically sustainable within the farming industry.