Agricultural Investment

Agrivita’s investment offerings are carefully designed products that enable investors unique opportunities to participate in a major sector of New Zealand’s export economy.

Farmland is increasingly seen as a mainstream investment, providing key investor benefits including:
  • Portfolio diversification
  • Low correlation with other traditional asset classes of listed equities, bonds and commercial property
  • Reduced volatility
  • An inflation hedge
  • Preservation of capital
  • Attractive and competitive investment returns from both capital growth and operating profits.

The underlying arguments supporting agricultural investment are compelling:
  • World population is forecast to reach 9.73 billion by 2050, a 32% increase from 2015¹
  • Food production needs to increase 70% to meet increased demand by 2050².
  • In order to feed a growing population, private sector agricultural investment must rise by nearly 50% to around $209 billion per year³.

The future of agriculture is exciting:
  • Quality food will be in demand.
  • Competition for scarce production resources will increase.

The above drivers underpin the expected upward commodity trends.

New Zealand agriculture is well placed to take advantage of the strong forecast growth for food demand and build on it’s competitive advantages including:
climate
Temperate climate and reliable rainfall
market
Enviable market access
  • New Zealand’s major primary products are currently exported to over 57 countries representing 68% of the world’s population and 87% of the world’s GDP;
  • New Zealand has 10 Free Trade Agreements (FTA) comprising 18 countries, representing 34% of the world’s GDP.
biosecurity
World-leading biosecurity and food quality standards
natural
Sustainable and natural production systems
stability
Political and economic stability

References:

1  United Nations Department of Economic and Social Affairs – World Population Prospects – The 2015 Revision.

2  Food and Agriculture Organisation of the United Nations (FAO) – How to Feed the World in 2050.

3  The World Bank – The World Bank Group on Land & Food Security.