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"Why investing in food security is investing in the future"

Rising commodity prices, risk of food shortages, as well as the lingering impact of the pandemic, have triggered a concern for the availability and accessibility of food around the world. To alleviate the growing threats to global food security, more food infrastructure investment that supports scale is required. While there are many routes to success, investors play an important role in providing much-needed capital that can bring down the cost of food at scale.

The entire food value chain, from farm to fork, is a significant driver of a country’s GDP, with the U.S. Department of Agriculture stating that agriculture, food and related industries contributed $1,264 trillion to U.S. GDP in 2021, or around 5.5%. Food, and specifically food prices, possibly have a bigger impact on the global economy than this figure suggests, as it tends to be a disproportionate contributor to inflation, especially in developing countries.

Certain links in the food value chain are capital-intensive to run and present an opportunity for investment to significantly enhance the efficiency, and security, of food production. According to the World Resources Institute, one-third of all food produced globally by weight is lost between farm and fork. Consequently, investors who focus on the more capital-intensive side of food investment can have a big impact on global food security and affordability for consumers.

The investment opportunity begins on the farm. Collaborating with farmers to adopt crop and regional best management practices that benefit both their operations, the planet and retailers helps balance issues of sustainability and scale.


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