Tuesday 22 November 2011

Back to Basics with Growth Green Agriculture

A growing number of analysts agree that the global economy is teetering on the edge of a double dip recession. Heavy debt incurred by many of the developed nations has led to imposed austerity measures that put even greater pressures on the already struggling consumers, many of whom have yet to recover from the initial bank crisis of 2008. Consumer spending drives 70% of the economy, and a decrease in purchasing power leads to a contraction in manufacturing and in turn, employment and global growth.
“Global growth worries today are even more prominent than the sovereign crisis, and that’s not because sovereign crisis risk has diminished, it’s because global growth worries have clearly increased,” said Patrick Moonen, equity strategist at ING Investment Management. The slowing global economy and ever-present sovereign debt concerns have been exacerbated by world policy makers’ inability to come to an agreement on how to resolve these serious issues. As a result, consumer/investor confidence has been profoundly shaken, which has led to one of the most volatile periods in market history. During the most recent market downturn, virtually every type of investment posted significant losses, including gold, which many people had relied on as a safe-haven investment. Companies from nearly all sectors and stages of growth saw a steep dip in their share prices. Investors’ inability to navigate market volatility has
crippled many people’s portfolios, leaving them with less money and a growing uncertainty as to where to invest what little remains.

Now is the time to focus on an Investment that will always be in demand: Agriculture “GGAgriculture”

GG Agriculture

With treasury yields at an all-time low and heavy volatility in currencies, now is the time to focus on an investment that will always be in demand: agriculture. An increase in global bio-diesel production has caused a considerable drop-off in the output of consumable crops. According to the United Nations, Global food prices set a new all-time high in January 2011, and have since risen to even higher levels. With the world population projected to exceed 9 billion over the next four decades, the demand, and consequently the price, for basic crops will continue to rise dramatically. As a result, there is a clear opportunity to profit from investments that are both lucrative and environmentally sustainable, with potential annual returns of over 12%.

“GG AGRICULTURE”: A LUCRATIVE, SAFE ANDSUSTAINABLE INVESTMENT


When choosing an investment it is important to consider the underlying trends that will help determine the future success of any venture. The recent market volatility has revealed the fragile state of the global economy, and the complex, deep-seated problems that we will be grappling with for years to come. Investors have become increasingly fearful of putting their money in the market, knowing all too well that they are potentially one negative report away from another serious financial downturn. However, the global conditions which make agricultural investment favourable are indisputable. According to the United Nations, the world population will reach 7.7 billion people by 2015. While prices may fluctuate, a growing population clearly indicates an ever-increasing demand for basic food products. In addition to a rising birth rate worldwide, technological advances combined with an improved standard of living in many emerging nations
has led to an increase in life expectancy. The UN’s prediction that population will increase by 45% over the next 40 years becomes even more dramatic when taking into account the International Grains Council’s forecast that available farmland for cereal production will fall by 0.2% to 0.5% per year over the same 40-year period. Some of the primary factors behind the alarming loss of farmland are:

• During Global Warming millions of hectares of potential farmland will be transformed into desert in both Africa and Asia.
• Increased bio-fuel production, in addition to other biological alternatives to fossil fuels, will reduce the amount of farmland available for growing food.
• As the world’s population increases, urbanization and town development will continue to encroach on existing and potential farmland.
The demand for grain production worldwide hasn’t been met since 2005. At the same time, the development of available farmland per capita has reduced by 50% over the last five decades, a trend which analysts expect will continue.


Agricultural Investments

We can show investors that socially responsible agriculture investments in the emerging markets ,can lead to both great profits and a better world for future generations.

Growth Green Agriculture Plc is a UK based agricultural investments company specialising in emerging markets offering unique opportunities to invest in Ghana. GGAgriculture acts as consultant on green and socially responsible investments to the private and institutional investor community in Europe. http://ggagriculture.com/