Robotics in food production & processing
- 24 February 2021 (5 min read)
Summary
Food is a relatively new market for robotics but is increasingly part of a trend of traditional industries seeking new innovations through automation, to reduce certain inefficiencies caused by humans doing the work. In both agriculture and food processing, robots are making gains in efficient waste management – a major problem traditionally in the food industry.
Stock examples
Marel
Company description: An Icelandic manufacturer of food processing equipment, involved in every step of the food processing chain – from raw material preparation through to the final packing of products.
Did you know: Marel’s automated machinery to process and package food has several benefits compared to traditional methods. This includes less risk of contamination as there is less human involvement; quality control due to camera and laser systems used; automated weighing and slicing for correct portions; and better waste management.
Trimble
Company description: A US company focused on software for various markets including agriculture. Its solutions include guidance and steering systems, planting and seeding, water management, and harvesting.
Did you know: Trimble are evolving location-based software and systems to automate farm machinery like tractors to map, measure and monitor land and even forecast the weather from inside the tractor.
The investment case
Food has historically seen a low level of robotic adoption with an underpenetrated market.1 However, food safety is becoming increasingly important in a post-COVID-19 world and food robotic adoption is likely to gain a significant market share over the next decade. Autonomous solutions will also likely be necessary in countries with an ageing farmer population to accommodate a shortage of labour.
Sources: All stocks mentioned are for illustrative purposes only and should not be considered as advice or a recommendation for an investment strategy.
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