Agriculture
Benefiting from long-term trends along with portfolio diversification
Johannes Baare
Head Investment Management Agriculture & Timber
Aquila Capital Hamburg
Population growth and a decline in usable land make the production of agricultural products through sustainable land use combined with intelligent management necessary. This results in attractive investment opportunities with low correlation to other asset classes.
412m EUR
transaction volume
38,076 ha
total area
12,000
dairy cows
as at: 30.09.2019

Investments in sustainable agriculture

After periods of high volatility, the milk price in New Zealand has stabilised again, yet without reaching historical highs. In contrast, the market for organic food is recording robust growth rates. Against this background, investments in sustainably produced, organic food, such as organic milk, represent an interesting investment opportunity, offering higher margins and a certain degree of protection against volatile commodity prices through production according to defined standards (production to specifications).

We are building on the potential added value of the New Zealand dairy industry and are making targeted investments in sustainably managed, pasture-based dairy farms. A part of agriculture investments constitutes a familiar and value-securing asset class: land and property. Our portfolio comprises eight farms, six of which are certified as organic. With certification according to the EU Organic Directive, we produce according to the highest standards in the food sector worldwide. The result: a certified, highly in-demand product for a high-priced market segment. The organic dairy industry therefore offers institutional investors interesting investment opportunities.

Team

Our international agricultural team combines agricultural expertise with complementary skills of business economists and legal consultants. With a production volume of 23 million litres p.a., we currently manage the largest cluster of organic milk producing farms in New Zealand.

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