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…
“Enormous potential” for new Agro funds in South America
Buy land, said Mark Twain; they ain’t making it anymore. He also observed that one of the secrets to success in life is to eat what you like and let the food fight it out inside. These two aphorisms go a long way to explaining the appeal of investment in agriculture.The world may not be making any more land. Still, it’s undoubtedly making more people, and increasingly millions of those extra mouths are, consuming what they like – which means protein-rich meat diets that the advanced economies…
Investment in Agriculture
Investment in agriculture and food has a wide priority for the global economy, comparable only to environmental issues. Analysing the sector in 2015, [1] McKinsey determined that, “if current trends continue, by 2050, caloric demand will increase by 70%, and crop demand for human consumption and animal feed will increase by at least 100%. At the same time, more resource constraints will emerge: for example, 40% of water demand in 2030 is unlikely to be met. Already, more than 20% of arable land is degraded”.…
