b"Navigating Unprecedented Challenges in Agriculture Adapting to rapid economic shifts and building resilience.Aimee NielsonIN THE EVER-EVOLVINGworldindustry news. Understanding regulatory of agriculture, staying ahead ofchanges, labor market trends and other the curve is crucial. Recent years haveexternal factors can help businesses make brought about unique economic shifts,informed decisions. leaving agribusinesses and the seed2. Analyze and adjust: continuously sector in a state of constant adaptation.analyze business numbers and financials. Michelle Klieger, president and founderIdentify what worked and what didn't of Stratagerm Consulting, says thatduring recent shifts and accordingly although these shifts affect agriculture,adjust strategies to address the current there are ways for businesses to navigateconditions. the challenges while building resilience.3. Foster relationships: building and Agriculture is no stranger to cycles,maintaining relationships with other but the speed and intensity of recentindustry players, suppliers and partners shifts have been remarkable, she says.can enhance resilience. These connec-From pandemic-induced supply chaintions can lead to new markets, innovative disruptions to surging interest rates, infla- problem-solving and shared resources tion and now, softer commodity prices,and solutions. agriculture has been forced to adapt at an4. Collaborate and innovate: be open unprecedented pace.Michelle Klieger to collaboration with neighboring busi-Klieger emphasizes that businessesnesses. Joint ventures, shared resources, need to be nimble and quickly adjust toand innovative solutions can help busi-todays rapid, unpredictable cycles.prices that went really high, really quickly,nesses weather economic storms and We would normally see these ebbsand they couldn't get what they needed.capitalize on opportunities. and flows in commodity cycles. AndWe saw a shift away from having thingsKlieger says adaptability is vital. depending on the crop or the animaljust in time to having inventory. But youAgriculture, with its cycles of boom in the past, farmers and agribusinessesdon't really want to be stuck with a ton ofand bust, demands a flexible approach. might have experienced seven to 10-yearinventory: that's very expensive if pricesBusinesses that can pivot swiftly in peak-to-peak cycles, but today's changesare on the way down. The environmentresponse to changing market conditions are happening much faster, often withinkeeps changing, so you can't just respondare better equipped to weather economic weeks or months, she says. to high prices.storms. She encourages a proactive An example of these extreme fluctua- Softer commodity prices are a resultstance, urging industry players to antici-tions is vegetable oil demand during theof many factors. A combination of thepate shifts rather than reacting solely to pandemic. Klieger explains that, initially,cyclical nature of agriculture, the gradualrecent events. there was a surplus of vegetable oil onadjustment of supply in response to priceThe power of collaboration and the market due to restaurant closures.signals and external influences such asinformation sharing within the agricultural However, as restrictions lifted and supplyglobal market shifts and sustainabilitycommunity is vital, Klieger adds. As the chain issues persisted, there was a suddenefforts all play a part. industry faces myriad challenges, from surge in demand for cooking oil, causingTo help businesses navigate these chal- supply chain disruptions to sustainability supply shortages and price hikes.lenges and remain resilient, Klieger pro- demands, forging connections with peers, I think the challenge for us is that wevided several valuable recommendations:suppliers and stakeholders can lead to have this recency bias, she says. Right1. Stay informed: keep on top of high- innovative solutions and newfound resil-now, I think people are still struggling withlevel macroeconomic influences andience.SW58/ SEEDWORLD.COMDECEMBER 2023"