Why Invest in South America, Australia and New Zealand?

There are four main regions of the world which are attracting significant funding into agriculture - Eastern Europe, Africa, South America, and Australia/New Zealand. We have carefully evaluated each of these regions and arrived at two major conclusions:

It is prudent to spread investment funds across more than one region - given that the primary risk associated with agriculture is climatic variation, then it makes sense to invest in more than one climatic system.

South America and Australia/NZ have inherent advantages over Eastern Europe and Africa. The fundamental criteria where those regions come out ahead (in relative terms) include:

  • Governance - rule of law, stable government, well regulated legal and financial systems, level of corruption;
  • Quality of supply chain infrastructure for agricultural products;
  • Access to Asian markets via established supply chains;
  • Disease risk;
  • Agricultural productivity and availability of an experienced agricultural workforce;
  • Potential for improvements through irrigation.