Emerging Markets / March 30, 2018

Continued Growth and Strong Fundamentals at Farmfolio

Three years into Farmfolio’s operation of Ganaderia Pietrasanta (GP), agricultural real estate continues to be a unique and high-yielding investment asset. The owners of Farmshares on GP I & GP II are growing their portfolios and ensuring their future income in ways that were previously inaccessible to individual investors. Furthermore, conservative estimates during Farmfolio’s initial valuations are already yielding higher-than-expected returns for our investors. This positive trend is expected to continue as demand within the food and agriculture industry increases globally by 2% annually for years to come, with most of that growth coming from the developing world.

Continued Growth and Strong Fundamentals at Farmfolio

Consumption is expected to rise across all key food segments, as is the demand for biofuels. Therefore, in order to meet demand growth, agricultural production needs to rise. This reality has prompted research and development in biotech, farm mechanization, irrigation, and other agricultural yield enhancers. In fact, if all of humanity lived to the same lifestyle and consumption level as North America or Western Europe, the resources of 2.5 planets would be necessary. Therefore, over the last decade, agriculture has become an increasingly coveted sector for financial investment, similar to the place that was formerly occupied by the fossil fuels industry. Simultaneously, urbanization, particularly in the developing world, is increasing the number of people who depend on others to grow and produce food for them. Because of these demographic and societal dynamics, agriculture is an industry with little correlation to the rest of the investment market and the demand for high-quality foodstuffs will always be on the rise.

Similar to the energy sector, food and agriculture are indispensable goods for the world to function. However, unlike the fossil fuels market, food is not easily replaceable by alternative resources. Thus, Farmfolio’s agricultural assets diversify portfolios and provide yields even during tough economic times. At GP, we are building on more than a century of farming tradition through sustainable agricultural practices, genuine relationships with our community, and real supply chain integration.

An experienced and well-balanced management team that believes in what it is doing is one of the most telling indicators of how any project is doing. This is why Farmfolio’s GP operation has assembled an all-star lineup and has adapted its output to the needs of regional markets. Thus far, GP has wonderfully integrated into the market and optimized its cash flow through timed sales of products, such as cattle. Similarly, GP continues to dream big as it completes the planting of green coconuts destined for high-end and dynamic markets both locally and internationally. Additionally, during 2018, Farmfolio will complete its hardwood sawmill in Monteria, in order to process the teak produced in both GP and throughout the region. For more details on our exciting developments, the Farmfolio Management team hopes that its upcoming annual report on GP will prove useful and informative to our current and prospective investors.

(Read more about The Importance of Water for International Development)

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