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Saturday, December 17, 2011

INVESTING IN AGRICULTURE

Agrimarkets - FoodWorks Commodity Bulletin - has consistently argued that investing in agriculture and agribusiness - the "farm to fork" food supply chain - is a better option than most for a place these days to put your dollar (for that argument in full, click here).  We are putting our dollar (such as it is) where our mouth is and have embarked on an effort to build an "Agribusiness Investment Fund". 

World food security is under severe threat as the population tops 7 billion. World food prices trend upwards and governments (e.g., the G20) and international agencies (e.g. UNFAO, World Bank etc.) warn of an impending crisis. Much of the demand pressure comes from the new and growing middle-class in Asia (especially India and China). This situation presents an opportunity. As food commodity prices increase so supply is brought forwards. This means there are more folk willing to invest in agriculture, agribusiness and food processing.

Our location in Asia is opportune since gurus such as the Singapore-based Jim Rogers (click here for what he says about Myanmar) and emerging market experts like Mark Mobius have long argued that the growth area for agricultural investment is here, East of Suez (see Note 1 below).  We agree.  Of course Latin America is making great strides in agriculture, but FoodWorks' technical and geographic expertise is right here and it is here that we intend to focus, at least for the time being.

FoodWorks is currently in process of working with various clients on bankable projects in the MENA/East Africa and Asia-Pacific region. These projects will include the full agricultural-agribusiness-food value chain together with related support industries.

Project Concepts

We are on the lookout for project concepts and for experts to help us do due diligence (Note 2 below).  If readers have a well-thought out concept, then we'd be glad to consider it (see Note 3 below). As an example of the concept approach, please take a look at something we've done in Cambodia - click this link to Cambodia Corn Project.

Professional experts in agriculture and agribusiness

For experts, we need CVs (bio-data) from persons that combine their professional experience (minimum Masters degree qualified and 10 years of work in the agriculture-food value chain) with geographic experience.  We find that pure technical ability - excellent though it might be - must be grounded in cultural and linguistic understanding for it to be effective.  So you must have worked (and ideally be resident) in our geographic space.

For more information or to send your CV or project ideas and documents, please contact me, Geoffrey Quartermaine Bastin, on gqb@foodworks.ag.  All communication is in complete confidence.


NOTES

Note 1: These individuals are referenced purely because for some years they have argued generally and in public for investment in agriculture and agribusiness in emerging or frontier countries. Both are highly respected investment advisers. Neither of these persons is associated in any way with FoodWorks and neither have endorsed this particular initiative nor this company. 


Note 2: This is not an offer of employment or even a recruitment drive for specific positions. We want to build our network or database of highly experienced people and organisations so we are prepared for the due diligence feasibility and implementation work when it comes.


Note 3: We'll look carefully at your concept with no obligation at all to take it further.  It will be reviewed in complete confidence. Any concept paper can be submitted as a short (10 slide) PowerPoint or a 2-3 page written paper or both. 









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