3 AgTech & Food Innovation Stocks to Buy as the Industry Evolves

At the farm level, innovation is changing how growers manage everyday operations. Precision technologies, automation, data-driven tools and advances in crop science can help improve yields while making better use of water, labor and other inputs. With costs remaining an important consideration for farmers, technologies that deliver measurable efficiency gains should remain in focus.

Food innovation is being shaped by consumers who increasingly value nutrition, convenience and quality. Manufacturers are responding with new formulations and specialty ingredients that cater to these preferences. Ingredion Incorporated INGR is part of this shift through its ingredient solutions for food and beverage manufacturers, including offerings across nutrition and plant-based applications.

Changing preferences are also influencing the protein market, prompting producers to sharpen their product mix and focus on convenient, value-added offerings. Tyson Foods, Inc. TSN has a place in this evolving landscape through its broad protein portfolio and prepared food business.

For investors, AgTech and food innovation provide exposure to the ongoing transformation of how food is grown, made and consumed. Commodity swings, weather and cost pressures can create near-term challenges, but the longer-term focus on productivity and innovation remains intact. The AgTech & Food Innovation Screen captures this broader opportunity through companies spanning the value chain, including Archer-Daniels-Midland Company ADM, Darling Ingredients Inc. DAR and Bunge Global SA BG.

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3 AgTech & Food Innovation Stocks in Focus

Archer Daniels is strengthening its presence in food innovation through investments in natural ingredients, plant proteins and emerging production technologies. The company is expanding its natural-colors footprint as food manufacturers move from artificial to natural ingredients. ADM has already signed contracts involving the conversion of artificial red, yellow and orange shades to natural alternatives across a packaged-food line and flavored beverages.

Precision fermentation represents another area of development for the Zacks Rank #1 (Strong Buy) company. ADM is building this platform around its existing fermentation capabilities and has projects with The EVERY Company for egg-replacement products and Bond Pet Foods for lamb protein used in pet food. Archer Daniels is also planning at least one natural color produced through precision fermentation. You can see the complete list of today’s Zacks #1 Rank stocks here.

Beyond these initiatives, Archer Daniels is expanding its natural-color footprint and pursuing plant-protein reformulation opportunities as part of its broader growth plan. These efforts complement its established agricultural processing operations and give ADM exposure to changing food formulation and ingredient trends.

Darling Ingredients participates in food innovation through its global ingredients platform, with Rousselot playing a central role in its Food segment. DAR is shifting its product mix toward higher-value collagen and targeted health ingredients, using its existing production infrastructure to expand these offerings.

Nextida is an important part of this strategy. Darling continues to see repeat orders for its Nextida glucose-control product, while its broader Nextida portfolio targets specialty health and wellness applications. The company has also approved a collagen spray-dryer project in Kaiping, China, and plans to add extraction and spray-drying capacity in Paraguay.

The Zacks Rank #1 company also has exposure to renewable fuels through Diamond Green Diesel. At the same time, Darling is expanding its rendering network. It acquired three Patense rendering facilities in Brazil and sees additional opportunities for organic expansion in collagen and rendering, including Brazil, where its existing rendering operations are at capacity.

Bunge is expanding its agricultural platform following its combination with Viterra. The enlarged network gives Bunge a broader presence across key origins and destinations, increases its direct farmer origination reach and adds capabilities across grains, oilseeds and related processing operations.

The Zacks Rank #1 company is also working with farmers on climate-smart agricultural practices. Its efforts include winter canola as a cover crop, testing other novel seeds and working with producers on farming practices. BG’s new Destrehan processing plant is designed to handle softseeds and has the flexibility to process other cover crops as well.

Bunge is further extending its reach into renewable-fuel feedstocks. The company has a supply agreement with Acelen to provide certified soybean oil feedstock for SAF and renewable diesel production. BG has also partnered with Petrobras and Vibra to supply certified Low-LUC CORSIA Brazil feedstock for SAF production and commercialization, deepening its participation in the renewable-fuel value chain.

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