Agcapita Farmland Investment Partnership | November 19, 2008
Calgary, Alberta CANADA
Food supply, like oil, is increasingly perceived as a strategic asset that governments are becoming anxious to control. Producing nations such as Kazakhstan and Indonesia have imposed bans on agriculture exports, while Argentina and India have implemented prohibitive export tariffs. The Russian government is going even further and proposing a new state agency that would own Russia's 28 biggest grain elevators and shipping terminals, including Russia's key export terminal on the Black Sea.
An interesting development is that South Korean company Daewoo Logistics signed a 99 year lease with the government of Madagascar (at zero cost) for 1.3 million hectares of farmland. This enormous project is driven by South Korea's stated desire to ensure food security. "The pursuit of foreign farm investments is a clear sign of how countries are seeking food security following this year's crisis - which saw record prices for commodities such as wheat and rice and food riots in countries from Egypt to Haiti," the Financial Times says.
Agcapita Farmland Investment Partnership (www.farmlandinvestmentpartnership.com) expects the increasing focus on secure access to food supplies will cause a significant premium to be placed on food production infrastructure (farmland, elevators, ports etc) in politically stable regions of the world such as western Canada. Agcapita allows investors to gain direct exposure to a key part of the agriculture commodity bull market story - Canadian farmland.
Agcapita's investment team has over 40 years private equity and fund management experience and over $1 billion in total career transactions and previously managed a group of emerging market funds with almost C$500 million in assets for one of the largest banks in Europe.Agcapita's advisory Board is composed of accomplished agriculture entrepreneurs and academics, high profile political figures and investment experts including the former UK Chancellor of the Exchequer, Rt. Hon. Ken Clarke and Jim Rogers, co-founder of Quantum Fund. Our members bring a deep knowledge of the factors driving agriculture and farmland values - including rapidly growing emerging economy food demand and inflation.