Land may become the world’s biggest asset class, and listed farm operators win an upward rerating, Hardman & Co has said in a report identifying agriculture services groups as the next focus of sector investment.

Farmland prices have, in doubling in the UK and US over the last decade, made shares look “an embarrassingly inept bet”, the London broker said. Stocks have fallen by 10-20% during the same period. Farmland, whose $5,000bn value equates to about 7-10% of the value of world equity markets, could be worth 15-25% of share values by 2020.

“By 2050, it is possible to argue that food producing land might have a superior value to all other asset classes,” Hardman analyst Doug Hawkins said, noting forecasts of rising global populations.
“This land is feeding over 6bn people and is being pressed into feed a further 3bn by 2050.”

The broker noted the growth of funds dedicated to investing in farmland, with Emergent Asset Management proposing to invest some $4bn in farms in sub-Saharan Africa, where land is reportedly available for less than $200 an acre, compared with a global average of $1,350 per acre.

The area also being targeted by private equity group Silverlands, which is seeking $300m for its scheme, while Dubai-based peer Pharos Miro has already raised $350m to invest in Africa and Black Sea states.

However, land was not the only way for investors to ride the industry’s rising tide, with the agriculture sector likely to account for a greater chunk of stockmarket values as its growing importance raises its economic contribution. Agriculture accounts for 2% or less of economic output in most developed countries.

“But the outlook for these companies to increase their share of domestic and global GDP is significant, as the world grapples with the need to increase food production,” Mr Hawkins said.“This suggests a strong basis for a rerating of agriculture-related investments and assets.”

“The next phase… will be for investors to focus on the value-adding scientific, infrastructure and management assets needed to generate the extra productivity required from… arable land,” Mr Hawkins said. Genus, the genetic group, and seeds and sprays giants Monsanto and Syngenta were “already proven models”.

“We will focus on soil science, water management, land management, plant and animal genetics, crop handling technologies and environmental management.”

Via: http://www.agfood.net/2010/07/experts-forecast-rerating-of-ag-related.html

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Posted: 11 August 2010 under Agri solutions, Agribusiness worldwide.
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TRACTOR drivers may be familiar with the trend towards higher road speeds, but the latest tyre technology continues to take the industry to the next level.In the eyes of Sydney-based Tyres4U national manager, Robert Kovacs, tractor tyres are “very technical pieces of equipment,” allowing modern-day farm workhorses “to do what they need to do”.

With a wealth of experience under his belt he makes the point that tyres remain one of the most important features on any tractor, requiring attention to detail when optimising the in-paddock performance of any tractor/implement combination.

“Not only do you have to bear in mind ground compaction but also wheel-slip and driver comfort - to name but a few issues,” Mr Kovacs said, adding that not every tyre suits every application.

“While a big 500hp 4WD tractor would be equipped with specialist broadacre tyres they would be entirely unsuitable for more arduous land-planing work being better off with forestry-style tyres,” he said.

It was all about minimising farm input costs by getting the most of the tyres fitted to, perhaps, a medium horsepower 190kilowatt (250 horsepower) tractor which can each cost in the order of $2500.

In Australia the trend towards lifting tyre performance is often associated with the North Queensland cane harvesting industry.

The need is for tyres to perform at slow speeds in paddocks before being asked to travel at higher speeds on roads when delivering to cane trains.

With British tractor maker JCB scheduling the release of a 100 kilometre an hour capability Fastrac tractor, it is tyre suppliers like Tyres4U which must keep abreast of the constantly changing tyre design goal posts.

Mr Kovacs said advances being made by Firestone’s IF tyre range would lift load carrying capacity by up to 20 per cent but with no change in air pressure.

The move was logical since increasing air pressures to carry heavier loads usually delivered more ground compaction and an associated harsher ride.

But cleverly redesigning the carcase walls on these new tyres had allowed Firestone’s designers to deliver higher load-bearing tyres at traditional air pressures, thereby not increasing ground compaction levels.

“The tyre industry is becoming increasingly technical,” Mr Kovacs said.

Source: http://fw.farmonline.com.au/news/nationalrural/machinery-and-equipment/general/tyres-key-to-efficiency/1868724.aspx?src=enews

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Posted: 28 June 2010 under Agri solutions, Agribusiness worldwide.
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Excellent opportunity in Niculitel area (Tulcea county) for:

•    Vineyard farm
•    Grapes collection
•    Wine storage (large capacity barrels)
•    Warehouse and office building

Niculitel is one of the most famous vineyards areas of Romania. Remember we are in Northern Dobrogea, very old land of mankind (Macin Mountains the oldest in the world). The landscape is beautiful and at every pace you meet nice people, old women dressed in popular costumes and tradition.

The varieties of grapes in this area are for white wines : Aligote, Riesling italian, Feteasca alba etc and for red wines: Feteasca neagra, Merlot, Cabernet Sauvignon, Pinot Noir etc.

Have a look at the large capacity barrels, they are in good condition and ready to be used.

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Posted: 25 June 2010 under Agri solutions, Romania, Vineyards Romania.
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