August 22, 2008


Investments in agriculture to grow as food demand continues to rise


Investments in the agriculture sector would continue to grow as demand for the four F's" - Food, Feed, Fibre and Fuel – is increasing worldwide, according to Rabobank's new report "The Boom beyond Commodities".


In addition, the Rabobank is seeing a global improvement of transport networks and more accessibility of countries previously closed to the outside world that have rich natural sources


Despite high food and ingredient prices, food companies and agricultural companies will grow in the coming years, especially those in Asia, the report said.


This is mainly due to the rapid growth in population, wealth and urbanisation of this region. Other substantial growth opportunities lay in the dairy, food processing and energy crops among others, the report said.


Industries related to the production of biofuels also need more energy crops in the future, although its future is less certain due to wobbly policies and concerns from consumer groups over its impact on food prices.

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