Tuesday, August 7, 2012

Farmland Investments Driven by Countries' Concerns About Food Security

Hot dry climate drives UAE investment in farmland overseas

One thing we at GreenWorld have noticed is a trend the last several several years of countries becoming increasingly concerned with the issue of food security.  We already discussed in a previous post how China's concerns about food security are driving it to make huge purchases of farmland overseas in places like Australia (we also noted in a previous post how one of Jim Rogers" farmland investment funds focuses on Australian farmland).

Another country that is concerned about food security is the UAE in the Persian Gulf.  The amount of food consumed in the UAE is going up at a rate of 12 to 14 per cent per year, amidst rise in demand for food staples by around 30 per cent.  This makes UAE government officials extremely nervous.  The UAE is of course wealthy from its' oil reserves, but its extremely hot and dry climate is not conducive to agriculture. Hence, 80% of its' food is imported, which can put them at the mercy of geo-political events globally.  Just as an example, the UAE recently purchased 1.5 million acres of farmland in Africa in Ethiopia and Sudan and also in Eastern Europe to grow food for importation back to the UAE.

Needless to say, when huge amounts of money from countries like China and the UAE are going into purchasing agricultural land overseas, this will naturally push up the prices of farmland.  This makes GreenWorld's farmland investment in Africa and farmland investment in Europe in Lithuania a great way to allow an individual investor an opportunity to benefit from this global trend.

If you would like to discuss the opportunities open to you as a retail investor to participate in these projects, please contact us at info@greenworldbvi.com.


1 comment:

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