Japanese food corporations are stepping up their diversification and security of food sources, in particular taking ownership of the entire supply chain, from owning the farms in other countries, through to the processing and distribution of the food stuffs.
China is looking at the Philippines to meet its domestic food and energy requirements even as the Chinese economy is being restructured into an enormous assembly hub of manufactured goods for the American, Japanese and European markets.
Agrowill Group AB, the largest agricultural investment company in the Baltic States, intends to sell all land owned by the Group in Lithuania to the Land Fund that will be established.
Cru Investment Management, the UK-based $800 million absolute return investment company, yesterday announced targeting the region and unveiled its plans to offer its new Africa Agriculture Fund in the Middle East early next year .This fund will invest in commercial agriculture in Sub-Saharan Africa, with the aim of helping to alleviate poverty in the region, while not compromising returns for investors.
Lured by soaring food prices, corporations - both domestic and foreign - have been snapping up land in this fertile region the size of France, replacing inefficient Soviet-style collective farming with modern farming techniques and economies of scale.
“Foreigners who come here get astonished at the gleaming black earth,” said Viktor Karnushin, head of a local subsidiary of Sweden’s Black Earth Farming corporation, one of the biggest foreign players in Russian farming.
"In a wide-ranging conversation, Sudanese business magnate Osama Daoud outlined a project to gradually develop as much as 1.26 million acres in northern Sudan for agricultural production," reports the US Embassy in Khartoum
As with timberland, while direct ownership and management (i.e., being a farmer), is a possibility, such a route is similarly fraught with difficulties. One of the most significant of these is the issue of diversification in the farmland itself - especially with a single investment. A well-diversified holding of farmland (row crop, permanent crop, pasture and even timber) will, therefore, not only require a significant investment, but may also involve land holdings in a number of different locations.
Saudi Arabia is interested in investment in grain and cattle-breeding in Kazakhstan, said agency reports referring to the press service of Akmola oblast akim.
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.
The fund will invest 70 percent of its money in agricultural companies that make fertilizers, forest products or biofuels. Commodities such as corn and soybeans will account for 15 percent, with the remainder in farmland.
Pakistan’s minister for privatization and investment, at a recently held forum in Dubai, announced that Pakistan was willing to provide land with 100 per cent ownership rights and that the buyers would be free in importing the agri-produce to their country as well.
