The 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.
While agricultural products will continue to follow commodity cycles, 101 economics tells us that where increased production does not meet increased demand, prices will only go one way. In short: while short-term price fluctuations/ volatility will continue, the underlying long-term commodity cycle trend will be upwards.
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:
- Temperate climate and reliable rainfall;
- Enviable market access:
- New Zealand’s major primary produce are currently exported to over 57 countries representing 68% of the world’s population and 87% of the world’s GDP;
- New Zealand currently has existing Free Trade Agreements with 16 WTO Members, representing over 50% of New Zealand’s primary sector exports.
- Political and economic stability.
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.
Our latest farm investment opportunities can be found at www.agrivita.co.nz