He certainly wasn’t wrong. However, it could be said there is a lack of clarity when it comes to investing in agriculture today and opportunities are being missed in certain subsectors.
Need For Investment
A group of leading scientists recently stressed the urgent need for investment into the agricultural sector to avoid widespread hunger, especially if this can be done sustainably. So how can the humble investor make substantial returns while investing into a worthy global cause?There is still a wealth of opportunity in the sector that is being overlooked. Global farming remains a significantly undercapitalised sub-sector versus other agri sub-sectors, such as suppliers and packaging and distribution. To take this one step further and narrow down by country or region, it is often Emerging Markets that pose the greatest investment opportunities in this arena.
Huge Potential Returns
Undoubtedly, there are potential instabilities in the global farming sector. These can be seen in the form of global warming and turbulent weather patterns, which may seem risky to some. Also arable land per capita is shrinking as the world’s population increases; the global population is predicted to double by 2050. However, as the price of food soars due to poor weather conditions, there is an increased demand from emerging markets and heightened popularity of crop-based bio-fuels. The potential returns are too rewarding to ignore. As one of the most successful investors of our time, Soros knew what he was talking about. This is a fast and growing investment space and people should seize the opportunity.
Provided we fully understand global farming and its opportunities, we can profit from this hugely undercapitalised sector.
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