FROM THE MD: 2016 - CHANGES FOR FOODWORKS

Last year was a watershed for FoodWorks. We firmed up our affiliation with Global Solutions Group (GSG, based in Dubai) and reached some decisions about the future of our company.

The first MAJOR decision is to re-orient our work towards private sector investing that makes an impact on development in agriculture and agriculture-based industry. 

The publicly  and donor funded development aid industry certainly has its place in our business, but we feel the thrust of rural development and human nourishment will now be taken up more by responsible private-sector companies investing directly in agriculture and agribusiness. Of course we will retain our valued core donor clients, but will focus more on impact made through profitable commercial investments that nevertheless safeguard the interests of the vulnerable stakeholders. 

In order to develop this approach we have had positive contacts with companies that channel donor funds into the private sector, for example, AgDevCo, which has a model we really like. I'd also mention Tractus-Asia, a respected management consultancy with which we have been in associated for many years; Tractus has a firm base in Asia and forms a link between the wider commercial and industrial world and our more specific activities in agriculture and food supply.

In re-focusing on impact investment we have decided to focus on our CORPORATE capacity rather than the expertise of individual experts. As a COMPANY FoodWorks has a track record of successful business since 2003 and we wish to trade on this past performance and experience rather than "sell" individuals no matter how senior they may be. Our Senior Associates and Partners will remain with us, but we will now expand the range of technical expertise and skills available to us and offer the services of the company rather more than particular experts, although individuals will still be made available on request as client's require.

Finally we have confirmed our focus on the areas where we have the greatest expertise: Sub-Saharan and Northern Africa, Central Asia and most especially South-east and East Asia. However FoodWorks' home(s) are in Hong Kong and Bangkok and we feel this link with Asia is one we should celebrate and build upon.

That said, 2015 saw the completion of work in Cambodia (ADB - rice infrastructure and policy), India (The World Bank - irrigation economics) and we are now currently working in Laos on livestock, coffee and cardamom (Northern Uplands Development Project - to complete in March this year). With our new focus  we have a private sector initiative in developing an animal feed business in Thailand based on Napier Grass and further emerging plans for horticulture development in the south of Laos. Africa retains its place however and our affiliate office with GSG in Lusaka Zambia is pursuing a bio-fuel project.

With all this in mind the next step is to upgrade our web site. The "blog", chatty style adopted here satisfied a purpose when we set out as a group of senior experts working as a cooperative, but we will now be moving to a different and modern style to reflect the corporate approach. 

For more information, please do email me: Geoff Quartermaine Bastin, gqb@foodworks.ag. I'm on skype too: geoff.q.bastin

INVESTMENT IN SOUTH-EAST ASIA

We are delighted to wish everyone a Happy New Year! 

And to mark the occasion we have launched a new study of investment in South-East Asia.  This is a FREE publication - 70 pages of analytical insights - that you can download by clicking on this link:

Agriculture and Agribusiness Investment in South-east Asia

South-east Asia is one of the best investment opportunities in the world when it comes to agriculture and the food industry. The region is one of the most productive agricultural areas of the world, the main source of rice and high value tropical fruits and vegetables together with a growing source of feed materials, fish and meat. 

The purpose of this paper is to provide general information and context. FoodWorks Co. Ltd. is an innovative consulting group of specialists in agribusiness that will provide specific analytical and technical assistance with investment feasibility, planning and implementation for individual clients. 

We look at two main sub-regions, the Greater Mekong (Burma, Cambodia, Laos, Thailand and Vietnam) and the Brunei-Indonesia-Malaysia-Philippines Economic Growth Area (BIMP-EAGA). Singapore is the outstanding business and finance hub for the region as a whole.

We say that the main drivers of economic growth in agriculture and food are:

· Growth of the middle class,

· Increased urbanization with mega cities sucking in particularly the youth,

· Related changes in the quality, quantity and type of foodstuffs, switching from staples to value-added processed food,

· Consequent changes in agriculture and marketing, food supply systems,

· Economic and physical integration along economic growth corridors

· Increased demand for food raw materials from India and China

The most immediate investment possibilities lie in the southern-most areas, especially in Mindanao in the Philippines. More established countries like Malaysia offer smaller, but perhaps more solid niche opportunities. Burma is a longer and higher risk shot but certainly has the greatest growth prospects. Laos and Cambodia are worth a look. We are more nervous of Vietnam and Thailand partly because of governance concerns in the former and because the latter is already so mature in agribusiness.

That said, none of the South-east Asian countries are near their agricultural/food production boundaries. Investors willing to bring new technology and combine it with advanced management and marketing systems in a global context will prosper by being based in the region.

For more information on our work or to comment please do contact gqb@foodworks.ag

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.