PROFITABLE AGRICULTURAL INVESTMENTS

There have been many crises in the world. We remember the financial ones that in one way or another have happened. Most recently, this global pandemic that generated death, unemployment, unproductivity, closure of many industries and loss of business value is to mention. But there is a common factor, in a particular sector, where there are assets associated with land and agricultural development, the damage is much less or not as noticeable. Without much thought, an actor appears to can trigger economic reactivation.

On the other hand, the world food problem continues. By 2050, the population will grow by approximately 9 billion inhabitants and the United Nations estimates that the food supply will have to increase by 25% to 70% to meet the demand of this population. It is to mention that some other studies indicate that food will not become scarce. Rather, they present the problem from the point of view of distribution, conservation and access. In other words, intervention must be made in the sector’s production chain, but it is clear that the availability of land and water for food production is scarce or at least limited in many countries. And, if we add to this variables, growing urbanization and climate change issues, productive land becomes an even scarcer and more valuable asset. For this reason, agricultural development and all its components have become an important focus for investment in times of difficulty or crisis. Although it is safe to assume that this will not change, at least in the short term.

The profitability of the land is significantly marked by the prices of the food they produce. The pandemic showed us that the demand for food remained stable and this sector is being viewed as strategic in many countries and this is becoming more evident in Colombia.  More and better actors in the agricultural production chains, a closer look from the governmental point of view, and more ambitious programs that bring technology to the countryside are being developed. All of the above are factors of interest for investment funds to invest in our agricultural development.

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info@growbank.com.co

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+57 (310) 873 91 03
+506 (872) 43 537

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* Bogota, Colombia
*San José de Costa Rica

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