South American Real Estate News

2015 Global food & agriculture investment outlook including South America

Post available in: English

2015 Global food & agriculture investment outlook including South America

We are glad to share with you the 2015 Global food & agriculture investment outlook, published by Valoral Advisors.

As the asset class goes institutional, they look at the new investors that are joining the space and the implications for asset managers.The growing allocations by family offices, pension funds and sovereign funds coincide with an increased M&A appetite by corporate ventures and trading houses. Besides bringing capital, these investors are also contributing to reshape the asset class.

Established managers and newcomers are adapting their investment strategies and capital structures. The mainstream opportunities, including North American and Australian farmland and private equity strategies continue to expand. At the other end of the spectrum, managers are also developing niche strategies, which include agricultural trade finance, agtech venture capital, aquaculture and water rights, to name a few.

All this happens at a time when the short-term outlook looks less favorable, due to a combination of lower prices across the agricultural commodity markets, increased volatility in emerging markets and uncertainty over the impact of diverging monetary policies across the developed world.

Looking at the forest for the trees, long-term investors recognize the ability of the asset class to provide diversification, enhanced returns and inflation protection to traditional portfolios. These attributes are even more relevant when we consider that despite all the recent volatility in the global financial markets, investors face the hard reality that stocks and bonds still look expensive.

The study includes also a section on South America, which is our core market and one of the major regional food & agriculture hubs with the potential to export increasing food supplies to the world.

We start 2015 actively working on several projects across the region that span the food & agriculture value chain, with particular focus on five themes: 

  1. Permanent crops & agricultural frontier development across the Pacific Alliance (Chile, Peru and Colombia)
  2. Regional production hub of high-quality beef for export markets (Uruguay, Paraguay and Argentina)
  3. Credit strategies in origination and project/equity finance(across the region)
  4. M&A opportunities in the broader food & agriculture value chain (Brazil and across the region)
  5. Market penetration of new ag technologies that sit at the confluence between hi-tech, bio-tech and renewable energies

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Contact the Gateway to South America team to learn about the best investment opportunities in the region. The company is a benchmark for foreign investors wishing to invest in Argentina, Brazil, Chile, Paraguay, Peru and Uruguay, providing expert advice on property acquisition and investment tours.

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Post available in: English


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