South American three-year drought partly driven by ‘triple-dip’ La Niña
Southern Brazil, Paraguay and northeastern Argentina are still experiencing a severe drought affecting soybean and maize production. Brazil, Argentina and Paraguay, South America’s three major agricultural producers, are experiencing a prolonged drought and low water levels in their main rivers. This severely impacts harvests and river transport of important summer crops, with maize and soybeans the main casualties. Although conditions may improve, the grain harvests of 2022 and 2023 could result in…
The Truth Behind the Drought in Argentina, Uruguay, and Chile: Exploring the Role of Climate Change
Argentina, Uruguay, and Chile have grappled with severe drought conditions for the past few months. These countries have been experiencing the lowest levels of rainfall in 35 years, leading to crop failures and threatening food security, access to water, people’s health, and ecosystems. The big question is, what is causing these drought conditions? While some argue that climate change is to blame, others dispute this claim. In this blog post, we will explore the role of climate change in exacerbating…
As a consequence of a historic Argentine drought, it could lose its position as the world’s leading soy meal exporter
On Tuesday, the Rosario stock exchange (BCR) said that Argentina is set to lose its status as the world’s top exporter of processed soy meal due to the toll of a historic drought on the country’s main cash crop. In a report, the Rosario stock exchange (BCR) predicted that Argentina’s soy meal shipments will likely be overtaken by neighbour Brazil for the first time in a quarter century during the current harvest. The 2022/2023 national soy meal output is expected to plummet 36% from the previous…
Pioneer New Zealanders investments in Brazilian Dairy Farming pay off
Dairy Farm – Fazenda Leite Verde Investors from New Zealand are still entering with force in Brazilian, with some of the original investors farming in the southwest of the Bahia region, specifically the city of Jaborandi. Their focus was on dairy farming using high technology – especially the giant centre pivot irrigation units – and developing a new breed of cattle, a Kiwi Cross, generically called Kiwi-like fruit. There were four pivots with 425 meters radius of rotation, and each covered…
Latin America’s economic slump got you down? Get the lowdown on what may happen in 2023! Find out how these could affect your business or investments in the next year.
The global economic slowdown will dampen Latam’s growth prospects, but a reconfiguration of the global economy following the war in Ukraine may give rise to unexpected opportunities for the region. Five Facts About Latin America Economic Outlook Economic challenges faced by the world Nowadays, many countries are struggling with economic difficulties, Latin America included. The Latin American economic outlook for March 2023 shows growth during the COVID-19 pandemic. Governments use policy regularization,…
Brazil is an Agricultural Powerhouse
Brazil is the world’s largest producer and exporter of sugar, coffee and orange juice, as well as the largest exporter of beef, soybeans and poultry. One in four grains consumed in the world is produced in Brazil. More than 5 of every 10 glasses of orange juice drunk worldwide come from Brazilian oranges. Brazil’s beef cattle herd is 8 times the size of Australia’s. Brazil’s rise to agricultural superpower status has been underpinned by rapidly increasing efficiency in utilising production factors,…
What the future for Mercosur looks like?
Mercosur is a group of countries that includes about 300 million people and covers almost 15 million square kilometres. They’ve got some awesome things going for them, like tons of biodiversity, rich farmlands, and lots of energy resources. The group started in 1991 when Brazil and Argentina decided to put their differences aside and work together. They made a treaty called the Treaty of Asunción, which said that they wanted to be able to move goods, services, and production factors between countries.…
Agricultural Investment opportunities in Brazil
Brazil is the world’s largest coffee, soybeans, beef, and poultry exporter, making it an ideal location for agricultural investment. The country has abundant land resources and favourable climatic conditions, making it a top choice for agribusinesses looking to expand their operations. Investing in agricultural land in Brazil can be an excellent opportunity for individuals or companies seeking to diversify their portfolios, secure food supply chains, and generate long-term returns. This post will discuss…
Powering the Future: What changes can we expect in real estate marketing now that AI has gone mainstream
A deeper dive at the potential applications of artificial intelligence in real estate and how brokers and agents can leverage AI to enhance their business. As a result of the proptech revolution, artificial intelligence in real estate is proving to be a significant disruptor. With advancements in machine learning and the rapid evolution of AI, the real estate sector is learning how to handle the massive amounts of data that buildings produce and monitor specific KPIs to simplify operations and extract meaningful…
Vegans Nightmare: A third of global farmland at ‘high’ pesticide pollution risk
According to new research, a third of the planet’s agricultural land is at “high risk” of pesticide pollution from the lingering residue of chemical ingredients that can leach into water supplies and threaten biodiversity. According to research published Monday, a third of the planet’s agricultural land is at “high risk” of pesticide pollution from the lingering residue of chemical ingredients that can leach into water supplies and threaten biodiversity. The use of pesticides…
Investing in agriculture for 2023
Hardy investors are seeking new ways to grow their money. IN THE next 40 years, humans will need to produce more food than they did in the previous 10,000 put together. But with sprawling cities gobbling up arable land, agricultural productivity gains decreasing, and demand for biofuels increasing, supply is not keeping up with demand. Clever farmers, scientists and entrepreneurs are bursting with ideas. But they need money to make this jump. Financiers more often found buying and selling companies have cottoned…
Are Performance Fees Fair for Syndicate Investors?
The Argument Against Performance Fees If fund managers and syndicate managers do not outperform their benchmark, they continue to get their standard fee, even if they have to forego their performance fee. We like performance, but we do not like performance fees. There are fund managers, who charge a fee for management, but then on top of that, they charge another fee if they get returns above a certain level. We object to these “performance fees”. Some fund managers will say they should have a performance…
Warren Buffett’s partner Charlie Munger’s thoughts on successful investment practise
Warren Buffett, the world’s most significant investor, added two short sentences to Charlie Munger’s list that have been his decision-clinchers for decades, “Warren, think more about it. You’re smart, and I’m right.” Warren Buffett talked about his long-time friend and business partner, Charlie Munger, in his annual letter to the investors that was published along with Berkshire Hathaway’s annual report. Warren Buffett listed a few of Munger’s thoughts. He advised investors, “Find…
Climate Changes starts to bite in the nut industries
The influence of climate and weather on human societies is already apparent to the world’s rural populations: inclement weather can result in failed harvests, higher food prices, unrest, and unrest leading to revolutions. Syria is a good example. The increasing effect of climate change should be a warning to all agricultural investors. This is doubly true for climate-sensitive tree crops, most notably almonds, considered the cannery in the coal mine. Almond trees: fragile flowers Almonds are the fragile flower…
The 10 most important rules for investing in agriculture favour South America
Rule 1. Only invest in investor-friendly countries: Agricultural investments require a medium to long-term view. A typical investment in mainstream agriculture will require 70-80% of your investment to go into the land. There is no need to add to these risks by going into countries where you put your capital at risk. This rules out most of Africa, Eastern Europe and parts of Asia. Rule 2. Countries with low, preferably no, subsidies for agriculture. Subsidies can be alluring because they can be seen as underwriting…
