Nov 23, 2022
ANZ Agri Report: Australian agri needs to prepare for resurgence of global investment attention
2023 is likely to see a resurgence in global investment focus on food and agriculture, and the Australian agri landscape needs to be ready to reposition itself in a changing global marketplace, according to ANZ’s “Greener Pastures 2” report.
The report on global opportunities for Australian agriculture has been launched in a digital version today and highlights the need for Australia to continue to enhance the process of capital flows into agriculture.
Michael Whitehead, ANZ Executive Director of Agri Research said: “A number of factors will contribute to the renewed attention on agriculture and food investment from global players.”
“In the aftermath of major agri supply chain disruptions caused by Covid and the Ukraine conflict, there is now heightened awareness by many countries in ensuring greater reliability of food imports in future.”
“Arguably, prior to these two events, much of the world operated more on a “just in time” approach to procuring food imports, particularly in grains and oilseeds for food and feed.”
“Many countries will now be looking for greater certainty in securing agri imports, and major investors including institutional funds and sovereign wealth funds, will play a role in these strategies.”
“Australia will be a major focus for investors looking at opportunities in areas such as production agriculture, as well down the supply chain including distribution and processing assets.”
“It won’t have gone unnoticed by investors that the strong rise in Australian farmland prices appears to be coming off the boil, which could also change the economics of major farmland investments.”
“One change in the global agri investment landscape is that major importing countries may be changing their focus from relying on imports from across the globe, to reducing supply chain risk by increasing production of food within their own countries or accessing imports far closer to their location.”
“The recent acquisition of a major irrigated NSW farm by a Chinese investor is an indication that not only are investors looking for opportunities in Australia, but that processes for investments to be approved and finalised are back into post-Covid operational mode.”
“For Australian stakeholders in the agri production and across the supply chain, this heightened attention will mean a need to be aware of the new global agri investment considerations, to renew and enhance the global positioning of investment opportunities, and to be up to date on their knowledge of the new global competitors.”