|
MCSFarmlandProposal2012
A Multi-Client Study Proposal
Farmland Dynamics in Brazil ~ July 2012
Background
Since the turn of the
century, investors have given considerable attention to farmland (both crop and
pasture). Most recently, global investors have taken a different
posture regarding investments due to the financial crisis of 2008 and 2009 with
farmland playing a more important role in many investment portfolios. The
situation – as of July 2012 – also is alarming for investors in that many of the
conventional financial investment portfolios are showing signs of
fatigue/stress. Many of the traditional investments are becoming more risky and
are leading many investors to re-examine farmland as a viable investment
opportunity.
Historically, farm and
pasture land has always been viewed as a food production resource and much has
been written in recent years regarding the increasing global demand for food as
developing countries create middle class consumers that have growing middle
class demands for food products. Added to this are new demands such
as biofuels which have made their entrance into the agricultural sector, now
accounting for an estimated 16 million hectares on a global basis. Furthermore,
environmental concern has added another hurdle to land availability. All of
these factors tend to point in the direction that farmlands are and will
continue to be a sustainable and profitable investment opportunity.
In the context described above, Brazil is
considered one of the main sources of arable lands. Currently,
the country is the third largest producer of food in the world with output
at 160 million tons of grains and oilseeds and another 24 million tons of
meat protein. Brazil is exporting an average 46% of soybeans produced and
another 24% of beef output with these percentages increasing over the past
decade. Aside from current farm and pasture land output, the potential for
expansion is huge. As will be detailed in this report, Brazil has some 90
million arable hectares still available to be opened of which, if correctly
and wisely utilized, could enable the country to expand crop and livestock
production by a factor of three.
While there are
numerous drivers for an expansion of farmed land in Brazil, a few barriers
need to be addressed. Current legislation restricts foreign
investment in farmland use and the forestry code – under discussion in
Congress – will have an important impact on further use of virgin lands and
farmlands. As of July, the forestry code is still under evaluation in
Congress with at least 15 issues still to be negotiated.
The entire prospectus and
enrollment in pdf form
To obtain
additional information or to enroll, please contact:
Mr. Thomas P. Scott
President and COO
Informa Economics, Inc.
775 Ridge Lake Blvd., Suite 400
Memphis, TN 38120
Phone: 901.766.4586
Fax: 901.766.8158
Email: tom.scott@informaecon.com |
Mr. Richard Brostowicz
Business Intelligence Lead
Informa Economics FNP
Rua Bela Cintra, 967 – 11th
Floor
01415-000 São Paulo SP Brazil
Phone: + 55 11 4504-1414
Fax: + 55 11 4504-1411
Email:
richard.brostowicz@informaecon-fnp.com |
|
