Several national companies and even the Abu Dhabi Investment Authority, the capital's sovereign fund, are planning investments in agriculture in countries as diverse as Vietnam, Cambodia, Pakistan, Australia, Romania and the United States.
More than 20 years after the fall of the Berlin Wall, a gulf still exists between farm prices in eastern and western Germany which provides a "good opportunity" for investors, a boss at KTG Agrar has said.
What started as a government drive to secure cheap food resource has now become a viable business model and many Gulf companies are venturing into agricultural investments to diversify their portfolios.
After having invested over 300 million euros for the acquisition of agricultural land alone, and another dozens of millions were invested in food industry, now Danish investors see a new opportunity on Romania’s market, namely the development of renewable energy parks
Japan is considering providing loans from a government-owned bank for companies to purchase and lease farmland abroad, Munemitsu Hirano, counsellor at the international affairs department of the Ministry of Agriculture, Forestry and Fisheries, said.
The largest fund to invest in European farmland will be launched today, signalling investors' growing appetite for alternative ways to profit from a long-term rise in agricultural commodity demand and prices. The farmland fund, set up by Germany-based Palmer Capital Partners and UK-based Bidwells, is expected to raise about €300m ($425m) to buy arable land in Poland, Hungary, Romania and the Czech Republic. It will also invest in western Europe.