Swell in Population Will Cause Increase of Investments in Agriculture by 2050
Specialists predict the growth of population to 9bn by year 2050 from 2.5bn in 2010 there sure will be a growing demand for agricultural products and cattle. As the population grows agricultural investment generally considered high risk investment will become stronger.
Eclectica Agriculture fund can become valuable for many investors’ portfolios. It mainly invests in protein and food, irrigation and farm machinery, nutrition and crop protection, infrastructure and such. As a rule, minimum 50% of the fund should be invested in companies with income and assets derived from agriculture.
No doubt these investments are considered of high risk given that the agriculture itself hasn't been fancied for about 30 years. The prices lost from 70% to 80% of value, making products like grains pretty cheap – this is why investors can hit the jackpot.
Grain inventories fell to thirty year lows and there’s a necessity for restocking so supplies can keep pace with the growing demand. This restocking was stopped by the poor harvest in 2009, which is why there’s little excess capacity in agricultural sector.
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