Study: Growth in Indiana agbioscience sector exceeding goals
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The results of a new study commissioned by AgriNovus Indiana, an initiative to grow the state’s agbioscience economy, show the economic impact of the agbioscience sector has undergone substantial growth in recent years. “Extraordinary. Historic, by definition,” touted Mitch Frazier, president and CEO of AgriNovus. The study revealed the value of the industry grew by $6 billion from 2018 to 2021, bringing its direct annual impact to more $58 billion. TEConomy Partners, the firm that conducted the study, says that is the fastest-growing time period since the industry started to measure results in 2012.
In an interview with Inside INdiana Business, Frazier said the industry saw growth in the face of strong headwinds, stemming from the COVID-19 pandemic and global supply chain challenges.
“What is fascinating to me, when you look at that period of time 2018 to 2021, more than half of that 36-month period was affected by the global pandemic,” said Frazier. “To see this level of growth, to see the level of economic output growth, as well as employment growth, historic record setting by every definition.”
The AgriNovus study shows gains across food, animal health, plant science, agtech and production agriculture. Frazier says the results are a reflection of investment that existing agtechnology-focused companies are making, as well as the addition of new businesses that want to grow in Indiana.
Frazier says the $6 billion growth realized in 2021 far surpassed the goal AgriNovus set to see growth of $4 billion by 2024.
“Today’s news of a $6 billion growth three years early is evidence that we have wind in the sails and Indiana’s ag bioscience economy momentum is building,” Frazier said.
According to the TEConomy study, Indiana’s agbioscience economy posted growth during the period from 2018 to 2021, including:
- Value-Added Food and Nutrition – increased 2% during the period and is the largest segment of the state’s agbioscience economy.
- Animal Health and Nutrition – increased 27.3%
- Agricultural Equipment, Technologies and Systems – increased 16.8%
- Plant Science and Crop Protection – increased 7.2%
“From a global pandemic to broken supply chains to rising inflation, Indiana’s agbioscience sector has faced many headwinds since economic progress was last measured,” said Deborah Cummings, principal and managing director for TEConomy Partners, LLC. “This update identifies sound growth across the four innovation-based platforms as well as production agriculture and should come as encouraging news as the sector continues on its upward growth trajectory.”
TEConomy says while the direct economic impact measured $58 billion, total impact, including indirect and tertiary factors, climbed from $76 million in 2018 to $91 billion in 2021.
“From a logistic standpoint, from an innovation standpoint, when you look at the assets on the balance sheet of Indiana’s ag bioscience economy, it’s extraordinary,” said Frazier, who this week is taking part in World Agri-Tech Innovation Summit in San Francisco.
He says the global gathering has presented opportunities to showcase Indiana’s strength in agbiosciences.
“We have built a really interesting, a really powerful force to connect companies to customers, to connect companies to acres in Indiana, to make Indiana’s ag bioscience a real destination for innovation for ag bioscience, and we’re seeing that pay off,” said Frazier.
Frazier says another positive measure is employment. He says the agbioscience industry saw a 7.5% increase in jobs during the 2018-2021 period, compared to employment growth of 2.4% seen throughout the rest of the state.
More than 156,000 people are employed by agbioscience companies in Indiana.
“I think the powerful story here is not only are we seeing growth, growth it’s outpacing the balance of the economy, the jobs on average are paying more than the state average wage,” said Fraizer. “So, Indiana’s agbioscience economy is growing from an economic output standpoint and growing from an employment standpoint.”
Click here to examine the report.