A slice of bread we eat connects a global web of farmers, seed companies, pesticide retailers, shipping services, storage, food processing, bakery, and many other people involved in getting food from farm to table. However, people usually take it for granted and hardly think about the stories behind food, the basic necessity of human existence.

Agriculture plays an essential role in the global economic system. In addition to providing food and cloth, agriculture is an important source of livelihood, a substantial contribution to national revenue and international trade.

The labor force is an important factor contributing to the country’s development. China is one of the world’s largest agricultural countries by GDP. It uses 7% of the world’s arable land to feed 20% of the world’s population. The number of total employed people in the country was 750 million, of which 190 million jobs were related to the agriculture sector, that’s 25% of total employment. The rest 28% workforce is related to the industrial sector and 47% is in the service sector. To secure domestic food security, China is virtually self-sufficient in producing rice and wheat, which are the staple food for the majority of the population. China is also a leading producer and exporter of cotton.

According to open data from the World Bank, the average global Agriculture, forestry, and fishing as a share of gross domestic product (GDP) was reported at 4.3% in 2021. For high-income countries, agriculture accounts for 1.3% of GDP. For middle-income countries, the number is 8.8%. However, for some low-income countries, the share of agriculture in GDP is more than 25%, which plays a predominant role in the economy.

Agriculture plays different roles at different stages of national development. With the progress of the economy, the proportion of agriculture in the GDP gradually declines. Japan is the world’s third-largest economy by GDP after the United States and China. Japan is known for its small-scale, high-quality, and high-value-added farming. As a high-income country, farming only accounts for one percent of the country’s GDP. In contrast, Indonesia is the largest economy in Southeast Asia and the world’s fourth most populous nation. It is categorized as a middle-income country. Its agriculture sector is much more important to the national economy compared to its rich neighbor. Indonesia’s agricultural sector comprises 13.3% of the country’s GDP. Rice, corn, cassava, soybeans, and peanuts are the major food crops planted in the country. Rubber, palm oil, cocoa, and spices are the significant exports for Indonesia. 

The challenges for agriculture are to ensure global food security for a growing population and provide a livelihood for farmers while mitigating the negative impact on the environment and preserving natural resources for the future generation.

Food is a trivial thing for some people, but for others, it is a matter of life. The global food supply chain is supposed to feed a population of 7.5 billion today, to around 10 billion by 2050. Farming often represents the most important economic sector for vulnerable households in emerging and developing countries, who rely upon farming to provide food and support for their families.

Hunger is not evenly distributed around the world. According to World Bank statistics, more than 700 million people, or 10 percent of the world population, are living in extreme poverty and undernourished, despite the fact that there is enough food to feed everyone. The primary reason for hunger is rooted in fragility, conflict, and violence in particular country areas and regions.

The agricultural land area is approximately five billion hectares, which occupies nearly 40% of the earth’s surface. Only 12% of this is used as cropland, while the remaining others are used for livestock farming. Agricultural water is used for irrigation, fertilizer, and pesticide applications, and comprises about 70% of global freshwater withdrawals.

Policymakers have put forward higher requirements and expectations for the planting industry:

• Improve land productivity to combat hunger
• Boost farmer income
• Set up a system of farming standards
• Enhance farming management practices
• Minimize pollution discharges
• Curtail damages to biodiversity

Consumers also raise standards and expect to have:

• Easy food accessibility with reasonable prices
• Better food quality and taste
• Green and more sustainable diet

Land ownership is a determinant of agricultural income. In more developed counties, large-scale farming allows farmers to take advantage of economies of scale. While in emerging and developing countries, fragmented landownership often results in unprofitability for small farmers.

Here are four classic agricultural production modes in the world:

• Large-scale agriculture with mechanized farming, typical countries include United States, Canada, Australia, Brazil, etc.;
• High-quality agriculture with a certain degree of scale, especially those with branding strength of local landmarks, such as Spain, Italy, France, Germany, etc.;
• High-value agriculture with an elongated value chain based on agriculture and related industry development, like tourism. Typical representatives include Japan, South Korea, etc.;
• Small-scale agriculture with unstable output and low profit. Half of the developing countries still belong to this stage. 

Farmers are expected to meet the higher demand of the government and consumers, but there is still a gap between reality and expectations. Farmers at different stages of agricultural development will encounter different problems. The disparity in basic conditions listed below will result in problems vary from small to big, easy to difficult:

• Nature resources, like suitable climate, arable land, water resources for irrigation;
• Demographic factors, like population growth or distribution in different regions;
• Social economic factors. Urbanization usually results in higher demand and lower local supply of food because the labor force shifts from agriculture to industry and service sectors;
• Science and innovation. Modern technology like digital agriculture and drones allow farmers to use resources more wisely and efficiently;
• Government infrastructure, like water reservoir, warehouse, electricity, transportation;
• Politics, like globalization, international trade and most importantly, political stability.

Despite all the factors that disrupted food production and distribution systems, jeopardize people's access to sufficient, safe, and nutritious food, and affect the livelihood of farmers and others working along the supply chain, as practitioners in the agricultural industry, whether from seeds, fertilizers, or pesticides industry, we have the responsibility and obligation to provide the bottom-up innovations coupled with top-down policy support to help farmers improve crop yields and production efficiency.