FUNDAMENTALS

Irrigation increases productivity in 30% representing a margin increase of around 90%

Implying at the same time, a 30% land appreciation due to the increase in productivity. Moreover, irrigation stabilizes yields creating a more predictable cash flow in long dry periods. We call “water arbitrage” to the difference of productivity between farm with and without irrigation capacity, which increases the value.

In a world with a food demand in constant evolution and increase, markets present opportunities in the grains market.

  • Growing world population
  • Socio-economic transformation, growing middle class in emerging markets like China or India
  • Food diet modification based on greater acquisition capacity towards higher protein products
  • · With higher income a person consumes more meat Increase of calories consumed average per capita in the world:
  • 1964/66 : 2,000 calories per day
  • 1997/99 : 2,600 calories per day
  • 2030: 3,000 calories per day Increasing demand of bio-fuels contributes to an increasing demand of grain

    • Agriculture production has resisted to the latest financial crisis, demonstrating to be a safe business. New business players, growing population and limited natural resources operate as insufficient elements.

  • Increase in food prices as a consequence of world growing population and cultural change.
  • Land prices increase, as it derivatives, based on the conscience of limited resources to face a growing demand.