By Chanyaporn Chanjaroen - Dec 13, 2010 Hedge funds and large speculators increased their bets on a commodity rally to the highest level since at least 2006 as copper and gold gained to records.
An index tracking speculative positions in 20 commodity futures in the U.S. advanced 8.4 percent from the week before to 1.54 million contracts as of Dec. 7, the highest level since at least February 2006, Commodity Futures Trading Commission data show. The gauge, compiled by Bloomberg, is derived by taking short positions, or bets on lower prices, from long positions.
Commodities tracked by the Thomson Reuters/Jefferies CRB Index advanced 11 percent this year, extending a 23 percent gain in 2009, on demand led by China and as investors bought raw materials as a store of value. Cotton soared 85 percent, silver 73 percent and arabica coffee 54 percent. Hedge funds and institutional investors will put more money in commodities next year as the world economy recovers, Barclays Capital said.
“The current economic environment is clearly positive for risk assets like commodities,” Yingxi Yu, an analyst at Barclays Capital in Singapore, said today by phone. “Talk of a double-dip or a recession seems to be fading away.”
About 76 percent of respondents surveyed at a Barclays’s conference last week in New York predicted a bigger inflow into direct commodity investments next year. New investments this year were $50 billion, the London-based bank said.
“We see most commodity prices moving higher in 2011 as global economic growth, at an above-trend 4.2 percent, bolsters demand,” Morgan Stanley analysts led by New York-based Hussein Allidina said in a report dated Dec. 10. The bank is “most constructive” on crude oil, copper, gold, corn and soy, it said.
Near-zero interest rates in the U.S. and increasing money supply in leading world economies have attracted investors to commodities, said Mark Pervan, head of commodity research at Australia & New Zealand Banking Group Ltd., by phone today from Melbourne. U.S. Treasuries returned 5.6 percent this year, according to Merrill Lynch & Co., and the MSCI World Index of equities gained 7.6 percent.
“The key driver is cheap money that’s parked in high- returning assets like commodities,” he said. “A tipping point would be when the Fed starts raising the rates. That’s when we will start to see big correction.”
Speculative long positions in New York-traded copper outnumbered shorts by 26,432 contracts in the week ended Dec. 7, a 25 percent increase from the week before, CFTC data show. Wheat speculators repositioned for a price increase, holding 8,488 net long positions, a reversal from 19,372 lots of net shorts a week before, the data show.
NEWS - Commodites, Agriculture, Green Investment - NEWS
12/03/2010
Commodities to Get Boost From New Regulation Effort, Arrowhawk's Fan Says
By Asjylyn Loder - Dec 2, 2010 The most sweeping rewrite of Wall Street rules since the 1930s will encourage traders to invest in physical commodities, potentially keeping supply off the market and affecting prices, said Jennifer Fan, a partner and senior portfolio manager with Arrowhawk Commodity Strategies, a hedge fund in Darien, Connecticut.
The Commodity Futures Trading Commission is trying to limit the impact traders have on the prices for raw materials, Fan said. Reining in futures trading won’t be effective because it will drive traders to the physical markets, she said.
“It’s driving people to invest in physical commodities and actually taking commodities that we produce and holding them off the market, not using them and just keeping them for investment purposes, and I think that’s pretty clear that that affects the price of commodities,” Fan said today at the Bloomberg Link Hedge Fund and Investor Briefing in New York during a panel titled Timing the Peak of the Global Commodities Rush.
The Dodd-Frank financial overhaul, which became law in July, gave the CFTC a year to establish rules governing the $615 trillion over-the-counter derivatives market. The commission has until January to impose limits on the number of contracts a single trader can hold for commodities including oil, natural gas and gasoline. It has until April to impose limits on agricultural products.
Chilton Reaction
“Folks are always going to try and find a way around the law, rules or regulations,” said CFTC Commissioner Bart Chilton in an e-mail. “Sometimes that is sort of like pushing on a balloon. You may make a difference in one place, but it comes out another.”
The law also includes the so-called Volcker rule barring banks from trading on their own accounts, as well as rules designed to push the over-the-counter market onto regulated clearinghouses and exchanges -- two issues that have garnered much attention from Goldman Sachs Group Inc., JPMorgan Chase & Co. and Bank of America Corp., according to meetings posted on the Web sites of the federal regulators.
The CFTC, along with the Securities and Exchange Commission, must also determine which companies will be categorized as swap dealers or major swap participants. Those are designations that entail higher capital requirements and increased scrutiny.
Dodd-Frank
The law is named for its primary authors, Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat, and House Financial Services Chairman Barney Frank, a Massachusetts Democrat. It aims to stem systemic risk by requiring most interest-rate, credit-default and other swaps be processed by clearinghouses after being traded on exchanges or swap-execution facilities.
Congress took aim at the industry after soured trades on mortgage and credit derivatives tipped the U.S. economy into the deepest recession since the 1930s.
The panel included Richard Robb, an economics professor at Columbia University and chief executive officer of Christofferson, Robb and Co., a New York- and London-based investment management firm; Mari Kooi, chief executive officer of Santa Fe, New Mexico-based Wolf Asset Management International LLC; and Tim Flannery, founder and chief investment officer of Copia Capital LLC, a Chicago-based hedge fund.
The Commodity Futures Trading Commission is trying to limit the impact traders have on the prices for raw materials, Fan said. Reining in futures trading won’t be effective because it will drive traders to the physical markets, she said.
“It’s driving people to invest in physical commodities and actually taking commodities that we produce and holding them off the market, not using them and just keeping them for investment purposes, and I think that’s pretty clear that that affects the price of commodities,” Fan said today at the Bloomberg Link Hedge Fund and Investor Briefing in New York during a panel titled Timing the Peak of the Global Commodities Rush.
The Dodd-Frank financial overhaul, which became law in July, gave the CFTC a year to establish rules governing the $615 trillion over-the-counter derivatives market. The commission has until January to impose limits on the number of contracts a single trader can hold for commodities including oil, natural gas and gasoline. It has until April to impose limits on agricultural products.
Chilton Reaction
“Folks are always going to try and find a way around the law, rules or regulations,” said CFTC Commissioner Bart Chilton in an e-mail. “Sometimes that is sort of like pushing on a balloon. You may make a difference in one place, but it comes out another.”
The law also includes the so-called Volcker rule barring banks from trading on their own accounts, as well as rules designed to push the over-the-counter market onto regulated clearinghouses and exchanges -- two issues that have garnered much attention from Goldman Sachs Group Inc., JPMorgan Chase & Co. and Bank of America Corp., according to meetings posted on the Web sites of the federal regulators.
The CFTC, along with the Securities and Exchange Commission, must also determine which companies will be categorized as swap dealers or major swap participants. Those are designations that entail higher capital requirements and increased scrutiny.
Dodd-Frank
The law is named for its primary authors, Senate Banking Committee Chairman Christopher Dodd, a Connecticut Democrat, and House Financial Services Chairman Barney Frank, a Massachusetts Democrat. It aims to stem systemic risk by requiring most interest-rate, credit-default and other swaps be processed by clearinghouses after being traded on exchanges or swap-execution facilities.
Congress took aim at the industry after soured trades on mortgage and credit derivatives tipped the U.S. economy into the deepest recession since the 1930s.
The panel included Richard Robb, an economics professor at Columbia University and chief executive officer of Christofferson, Robb and Co., a New York- and London-based investment management firm; Mari Kooi, chief executive officer of Santa Fe, New Mexico-based Wolf Asset Management International LLC; and Tim Flannery, founder and chief investment officer of Copia Capital LLC, a Chicago-based hedge fund.
12/02/2010
Saudi investors facing obstacles in Argentina
The Saudi Gazette | 30 Nov 2010
By HAZEM AL-MUTTARI
RIYADH: Dr. Fahad Balghunaim, Saudi Minister of Agriculture, said the exponentially high price of fodder is chiefly responsible for the rise in prices of imported and locally produced chickens.
He said the feed price increase is estimated at 40 percent, and noted that Saudi poultry producers have flooded the Ministry with appeals to subsidize the fodder.
“We are considering these applications,” he said.
Dr. Balghunaim commented on the matter during the visit Monday by Argentina’s Agriculture Minister Julian Dominguez and his accompanying delegation to King Abdul Aziz Center for Genuine Arab Horses in Riyadh.
He said one of the major efforts in the field of economic exchange is to translate the initiative of King Abdullah, Custodian of the Two Holy Mosques, of investing in agriculture in foreign countries into practical measures.
The King is determined to secure a stable, reasonably priced food supply for the Kingdom and the Ministry of Health has tasked the private sector with implementing this initiative, Dr. Balghunaim said.
The private sector has responded positively by entering into partnerships with multinational companies investing in agriculture and investing in countries that are rich in agricultural resources, he said.
He said a Saudi business delegation visited Argentina to explore areas of economic exchange and discovered three obstacles to investment there.
There are concerns about tax exemptions, an investment protection pact and a tax on foreign investors, but an official said efforts are underway to address them.
Argentina’s agricultural minister said “we are making intensive contacts with the Foreign Ministry in Argentina to resolve these three issues.”
There are no restrictions for Saudi investors to possess lands in his country, he said.
There are some restrictions on the purchase and lease of some projects, but they have not been implemented, he added.
In a related matter, Saad Al-Meqbl, director general of Agricultural Affairs in the Eastern Province, has announced that 12 poultry projects have been shut down because their owners failed to follow regulations.
The projects, which he described as outdated, were in the urban zone.
He said his administration gave the owners a grace period so they could rectify the shortcomings, but they took no substantive action.
Al-Meqbl said a committee of officials from the ministries of Agriculture and Municipal and Rural Affairs have been effective in conducting surprise inspection tours of unlicensed shops selling live chicken.
The inspectors have confiscated more than 15,000 live chicken and the instruments used to slaughter them, he said.
Al-Meqbl further said owners of the poultry farms who violated the regulations were fined more than SR393,000 and that one of them was fined SR184,000 for unlicensed slaughtering of chicken.
Fines will be increased to SR1 million to further deter people, he added.
--------------------------------------------------------------------------------
By HAZEM AL-MUTTARI
RIYADH: Dr. Fahad Balghunaim, Saudi Minister of Agriculture, said the exponentially high price of fodder is chiefly responsible for the rise in prices of imported and locally produced chickens.
He said the feed price increase is estimated at 40 percent, and noted that Saudi poultry producers have flooded the Ministry with appeals to subsidize the fodder.
“We are considering these applications,” he said.
Dr. Balghunaim commented on the matter during the visit Monday by Argentina’s Agriculture Minister Julian Dominguez and his accompanying delegation to King Abdul Aziz Center for Genuine Arab Horses in Riyadh.
He said one of the major efforts in the field of economic exchange is to translate the initiative of King Abdullah, Custodian of the Two Holy Mosques, of investing in agriculture in foreign countries into practical measures.
The King is determined to secure a stable, reasonably priced food supply for the Kingdom and the Ministry of Health has tasked the private sector with implementing this initiative, Dr. Balghunaim said.
The private sector has responded positively by entering into partnerships with multinational companies investing in agriculture and investing in countries that are rich in agricultural resources, he said.
He said a Saudi business delegation visited Argentina to explore areas of economic exchange and discovered three obstacles to investment there.
There are concerns about tax exemptions, an investment protection pact and a tax on foreign investors, but an official said efforts are underway to address them.
Argentina’s agricultural minister said “we are making intensive contacts with the Foreign Ministry in Argentina to resolve these three issues.”
There are no restrictions for Saudi investors to possess lands in his country, he said.
There are some restrictions on the purchase and lease of some projects, but they have not been implemented, he added.
In a related matter, Saad Al-Meqbl, director general of Agricultural Affairs in the Eastern Province, has announced that 12 poultry projects have been shut down because their owners failed to follow regulations.
The projects, which he described as outdated, were in the urban zone.
He said his administration gave the owners a grace period so they could rectify the shortcomings, but they took no substantive action.
Al-Meqbl said a committee of officials from the ministries of Agriculture and Municipal and Rural Affairs have been effective in conducting surprise inspection tours of unlicensed shops selling live chicken.
The inspectors have confiscated more than 15,000 live chicken and the instruments used to slaughter them, he said.
Al-Meqbl further said owners of the poultry farms who violated the regulations were fined more than SR393,000 and that one of them was fined SR184,000 for unlicensed slaughtering of chicken.
Fines will be increased to SR1 million to further deter people, he added.
--------------------------------------------------------------------------------
African Agriculture Fund first closing at USD135m
AAF | 29 November 2010
The African Agriculture Fund (AAF), a private equity fund designed to respond to the food crisis that severely impacted the continent in 2008 in the wake of escalating food prices, reached its first closing at USD135m in November 2010.
AAF investment thesis primarily lies in food production, processing and distribution in cereals, livestock farming, dairy, fruit and vegetables, crop protection, logistics, fertilizers, seeds, edible oils, smallholders and agri services. To achieve optimal diversification within the sector, the fund will invest across the value chain from primary production to processing and tertiary services and across the continent. The Fund will make investments of up to USD20m per portfolio company, targeting entities with robust management and growth prospects. The fund aims to support private sector companies that implement strategies to enhance and diversify food production and distribution in Africa by providing equity funding including strengthening the management and modernisation of the agricultural sector on the continent.
To enhance its impact on development, the fund has deployed two powerful instruments: a dedicated SME sub fund of a target size of USD60m (initially USD30m) and a Technical Assistance Facility (TAF) of EUR10m, to support outgrower schemes in large companies and business development services in SMEs.
The support to AAF, whose total target size is USD300m, is part of a coordinated response of a pool of European DFIs, with the Agence Française de Développement (AFD), the Spanish Agency for International Development Cooperation (AECID), Promotion et Participation pour la Coopération économique (Proparco) and International Fund for Agricultural Development (IFAD), and a number of African DFIs, including the African Development Bank (AfDB), the Development Bank of Southern Africa (DBSA), the West African Development Bank (BOAD) and the ECOWAS Bank of Investment and Development (EBID), as limited liability partner investors. The International Fund for Agricultural Development (IFAD) will manage the Technical Assistance Facility for which core funding has been committed by the European Commission with the contribution of the Alliance for a Green Revolution in Africa (AGRA) and the Italian Cooperation.
To fight African agribusiness and agriculture’s chronic undercapitalisation, the fund is equipped with an innovative mechanism designed to attract private sector capital. Lead investors such as AFD and AECID together with BOAD and EBID have pooled their shares into a first loss risk taking mechanism that will provide private investors into AAF with an accelerated return.
Fund managers Phatisa have a team of seasoned professionals with a depth of experience in private equity, fund management and the agricultural sector across Africa. Phatisa is led by Duncan Owen and Stuart Bradley, with Valentine Chitalu as its Chairman. The group has offices in Mauritius, Zambia, Kenya, South Africa and is in the process of establishing a presence in West Africa.
The fund will operate according to a Socially Responsible Investment (SRI) Manual that features an environmental and social risk management system, guidelines for an optimal use of the technical assistance facility and, for the first time in agribusiness private equity, a Code of Conduct for Land Acquisition and Land Use in agricultural and agribusiness projects to prevent unsustainable practices.
“With food security such a crucial issue across Africa, the AAF will make equity finance available for African agricultural companies,” says Valentine Chitalu, Chairman of Phatisa Group. “We welcome all the investors’ significant contributions to Africa’s economic development and long-term prosperity.”
During the first closing procedures, Duncan stressed that “the commercial success of this new African food fund is critical for both the fund’s international investors and for the future of agriculture as a whole in Africa.”
AAF Promoters were advised by a legal team led by Gide Loyrette Nouel, Stéphane Puel, partner, and Julien Vandenbussche, comprising Africa Legal, Lance Roderick, partner and Louise Campion, and Muhammad Uteem Chambers
The African Agriculture Fund (AAF), a private equity fund designed to respond to the food crisis that severely impacted the continent in 2008 in the wake of escalating food prices, reached its first closing at USD135m in November 2010.
AAF investment thesis primarily lies in food production, processing and distribution in cereals, livestock farming, dairy, fruit and vegetables, crop protection, logistics, fertilizers, seeds, edible oils, smallholders and agri services. To achieve optimal diversification within the sector, the fund will invest across the value chain from primary production to processing and tertiary services and across the continent. The Fund will make investments of up to USD20m per portfolio company, targeting entities with robust management and growth prospects. The fund aims to support private sector companies that implement strategies to enhance and diversify food production and distribution in Africa by providing equity funding including strengthening the management and modernisation of the agricultural sector on the continent.
To enhance its impact on development, the fund has deployed two powerful instruments: a dedicated SME sub fund of a target size of USD60m (initially USD30m) and a Technical Assistance Facility (TAF) of EUR10m, to support outgrower schemes in large companies and business development services in SMEs.
The support to AAF, whose total target size is USD300m, is part of a coordinated response of a pool of European DFIs, with the Agence Française de Développement (AFD), the Spanish Agency for International Development Cooperation (AECID), Promotion et Participation pour la Coopération économique (Proparco) and International Fund for Agricultural Development (IFAD), and a number of African DFIs, including the African Development Bank (AfDB), the Development Bank of Southern Africa (DBSA), the West African Development Bank (BOAD) and the ECOWAS Bank of Investment and Development (EBID), as limited liability partner investors. The International Fund for Agricultural Development (IFAD) will manage the Technical Assistance Facility for which core funding has been committed by the European Commission with the contribution of the Alliance for a Green Revolution in Africa (AGRA) and the Italian Cooperation.
To fight African agribusiness and agriculture’s chronic undercapitalisation, the fund is equipped with an innovative mechanism designed to attract private sector capital. Lead investors such as AFD and AECID together with BOAD and EBID have pooled their shares into a first loss risk taking mechanism that will provide private investors into AAF with an accelerated return.
Fund managers Phatisa have a team of seasoned professionals with a depth of experience in private equity, fund management and the agricultural sector across Africa. Phatisa is led by Duncan Owen and Stuart Bradley, with Valentine Chitalu as its Chairman. The group has offices in Mauritius, Zambia, Kenya, South Africa and is in the process of establishing a presence in West Africa.
The fund will operate according to a Socially Responsible Investment (SRI) Manual that features an environmental and social risk management system, guidelines for an optimal use of the technical assistance facility and, for the first time in agribusiness private equity, a Code of Conduct for Land Acquisition and Land Use in agricultural and agribusiness projects to prevent unsustainable practices.
“With food security such a crucial issue across Africa, the AAF will make equity finance available for African agricultural companies,” says Valentine Chitalu, Chairman of Phatisa Group. “We welcome all the investors’ significant contributions to Africa’s economic development and long-term prosperity.”
During the first closing procedures, Duncan stressed that “the commercial success of this new African food fund is critical for both the fund’s international investors and for the future of agriculture as a whole in Africa.”
AAF Promoters were advised by a legal team led by Gide Loyrette Nouel, Stéphane Puel, partner, and Julien Vandenbussche, comprising Africa Legal, Lance Roderick, partner and Louise Campion, and Muhammad Uteem Chambers
11/24/2010
Saudi's Agroinvest to raise $533m for farm investments
By Souhail Karam Monday, 12 April 2010
FARM INVESTMENTS: Saudi based Agroinvest has said that it is close to obtaining approval from the regulator to raise $533m for foreign and local farm investments. (Getty Images)
Saudi based agricultural investment firm Agroinvest is close to obtaining approval from the regulator to raise about $533 million for foreign and local farm investments, its chairman said. Agroinvest, or the International Agriculture and Food Investment Co, is the biggest of many private firms involved in foreign farm investment that were set up in the kingdom since import reliant Gulf Arab countries started buying or leasing land in developing nations to ensure food supplies.
But farmland acquisitions by foreign investors have sparked some opposition in developing nations and the United Nations last year voiced concern that farmers' rights in developing nations could be compromised.
Usamah al Kurdi, who chairs Agroinvest's founding committee, said his firm would not want to tarnish Saudi Arabia's image by buying farmlands abroad.
In a telephone interview with Reuters, he said: "Everybody is getting philosophical about this issue, but Agroinvest is not a real estate firm. We are in agriculture and we want to do this with firms and farmers unions in these countries."
He added: "The ideal scenario for Agroinvest, Kurdi said, would be to "forge partnerships with local firms or farmers unions who have a project ready. If leasing the land is an option, then we will do it with our partners."
Seeking approval from the Capital Market Authority (CMA) for the private placement "was not a legal requirement," he said.
Kurdi said: "We have taken the initiative to seek the CMA's approval to show how serious we are."
He added: "We hope to raise about $533.3 million from private and institutional investors to add to the capital raised by the founders."
He declined to say how much capital had so far been raised from Agroinvest's founders. Kurdi said in April that 25 percent of the capital will come from founding shareholders and the remainder from institutional investors and a public offering.
Several Saudi firms have already started farm investments in countries stretching from Indonesia to Ethiopia after a sharp rise in global food prices in 2008 and after authorities prioritised safeguarding water over self sufficiency in some crops such as wheat.
In addition to investments abroad that would include rice, grains, oilseeds and soybeans, Agroinvest plans to invest in grain silos and in funds with exposure to farm investments.
Kurdi declined to go into detail and said only that several propositions were being examined for investments in Australia, Romania, Senegal, Turkmenistan and Vietnam.
He said: "Foreign investments will take 60 percent of our total investments and 40 percent will be invested locally."
Kurdi added: "We plan investment in logistics through funds and Djibouti is being considered as a potential location."
The company will start announcing its foreign investments after it obtains regulatory approvals to start operations "within eight to 10 weeks," he added.
Agroinvest's most advanced plans are in Saudi Arabia where it plans to invest in shrimp farms, poultry and greenhouses, he said. (Reuters)
FARM INVESTMENTS: Saudi based Agroinvest has said that it is close to obtaining approval from the regulator to raise $533m for foreign and local farm investments. (Getty Images)
Saudi based agricultural investment firm Agroinvest is close to obtaining approval from the regulator to raise about $533 million for foreign and local farm investments, its chairman said. Agroinvest, or the International Agriculture and Food Investment Co, is the biggest of many private firms involved in foreign farm investment that were set up in the kingdom since import reliant Gulf Arab countries started buying or leasing land in developing nations to ensure food supplies.
But farmland acquisitions by foreign investors have sparked some opposition in developing nations and the United Nations last year voiced concern that farmers' rights in developing nations could be compromised.
Usamah al Kurdi, who chairs Agroinvest's founding committee, said his firm would not want to tarnish Saudi Arabia's image by buying farmlands abroad.
In a telephone interview with Reuters, he said: "Everybody is getting philosophical about this issue, but Agroinvest is not a real estate firm. We are in agriculture and we want to do this with firms and farmers unions in these countries."
He added: "The ideal scenario for Agroinvest, Kurdi said, would be to "forge partnerships with local firms or farmers unions who have a project ready. If leasing the land is an option, then we will do it with our partners."
Seeking approval from the Capital Market Authority (CMA) for the private placement "was not a legal requirement," he said.
Kurdi said: "We have taken the initiative to seek the CMA's approval to show how serious we are."
He added: "We hope to raise about $533.3 million from private and institutional investors to add to the capital raised by the founders."
He declined to say how much capital had so far been raised from Agroinvest's founders. Kurdi said in April that 25 percent of the capital will come from founding shareholders and the remainder from institutional investors and a public offering.
Several Saudi firms have already started farm investments in countries stretching from Indonesia to Ethiopia after a sharp rise in global food prices in 2008 and after authorities prioritised safeguarding water over self sufficiency in some crops such as wheat.
In addition to investments abroad that would include rice, grains, oilseeds and soybeans, Agroinvest plans to invest in grain silos and in funds with exposure to farm investments.
Kurdi declined to go into detail and said only that several propositions were being examined for investments in Australia, Romania, Senegal, Turkmenistan and Vietnam.
He said: "Foreign investments will take 60 percent of our total investments and 40 percent will be invested locally."
Kurdi added: "We plan investment in logistics through funds and Djibouti is being considered as a potential location."
The company will start announcing its foreign investments after it obtains regulatory approvals to start operations "within eight to 10 weeks," he added.
Agroinvest's most advanced plans are in Saudi Arabia where it plans to invest in shrimp farms, poultry and greenhouses, he said. (Reuters)
CalPERS invests $500 million in new environmentally-conscious strategy
November 22nd, 2010
The California Public Employees’ Retirement System (CalPERS), the largest public pension fund in the United States, recently put $500 million into a strategy that invests in environmentally-focused global public companies. The new internally-managed strategy will be modeled after HSBC’s Global Climate Change Benchmark Index (HSBC CCI). According to CalPERS, “companies must derive a material portion of their revenues from low-carbon energy production,” including alternative energies, water conservation and control, energy efficiency, and carbon trading, in order to be included in the portfolio.
“Until now, we’ve invested in external managers whose funds screen out the worst offending public companies,” commented CalPERS Board President Rob Feckner. “But this more robust, quantitative strategy will allow us on a large scale to support and become more directly involved in positive change by top performers that have improved share value and also done good for the environment.”
So although CalPERS has focused on restricting its investments in companies with negative environmental impacts in the past, their new environmental investment strategy takes a different approach. “Research shows that a positive inclusionary methodology for investing in common stock companies is more successful than a negative exclusionary approach that uses subjective rather than quantitative selection criteria,” stated George Diehr, Chair of the CalPERS Investment Committee.
CalPERS manages the retirement benefits for over 1.6 million California public employees and their families. The pension fund oversees $219 billion in assets under management.
The California Public Employees’ Retirement System (CalPERS), the largest public pension fund in the United States, recently put $500 million into a strategy that invests in environmentally-focused global public companies. The new internally-managed strategy will be modeled after HSBC’s Global Climate Change Benchmark Index (HSBC CCI). According to CalPERS, “companies must derive a material portion of their revenues from low-carbon energy production,” including alternative energies, water conservation and control, energy efficiency, and carbon trading, in order to be included in the portfolio.
“Until now, we’ve invested in external managers whose funds screen out the worst offending public companies,” commented CalPERS Board President Rob Feckner. “But this more robust, quantitative strategy will allow us on a large scale to support and become more directly involved in positive change by top performers that have improved share value and also done good for the environment.”
So although CalPERS has focused on restricting its investments in companies with negative environmental impacts in the past, their new environmental investment strategy takes a different approach. “Research shows that a positive inclusionary methodology for investing in common stock companies is more successful than a negative exclusionary approach that uses subjective rather than quantitative selection criteria,” stated George Diehr, Chair of the CalPERS Investment Committee.
CalPERS manages the retirement benefits for over 1.6 million California public employees and their families. The pension fund oversees $219 billion in assets under management.
UAE, Saudi eye more farmland leasing overseas
Foreign land acquisitions have provoked opposition from farmers in developing nations
By Reuters Tuesday, 23 November 2010 11:24 PM
FOOD PRICES: Gulf states suffered when international food prices spiked to record levels in 2008, forcing up their import bills (Getty Images)
The UAE and Saudi Arabia will continue to invest in acquiring farmland abroad as part of their strategy to secure food supplies, officials from the two Gulf states said on Tuesday.
Gulf states suffered when international food prices spiked to record levels in 2008, forcing up their import bills. They have since sought to lease and buy farmland in developing nations to improve security of food supplies.
"In Saudi we have given a priority to water security and therefore are phasing out the production of water-intensive crops and as part our security strategy we are encouraging the private sector to invest in agriculture abroad," Fahad Balghunaim, the kingdom's agriculture minister, told reporters on the sidelines of an industry event in Abu Dhabi.
He added: "We don't have one place or region we are targeting for these land leases, I can promise you that we will be everywhere in the world
By Reuters Tuesday, 23 November 2010 11:24 PM
FOOD PRICES: Gulf states suffered when international food prices spiked to record levels in 2008, forcing up their import bills (Getty Images)
The UAE and Saudi Arabia will continue to invest in acquiring farmland abroad as part of their strategy to secure food supplies, officials from the two Gulf states said on Tuesday.
Gulf states suffered when international food prices spiked to record levels in 2008, forcing up their import bills. They have since sought to lease and buy farmland in developing nations to improve security of food supplies.
"In Saudi we have given a priority to water security and therefore are phasing out the production of water-intensive crops and as part our security strategy we are encouraging the private sector to invest in agriculture abroad," Fahad Balghunaim, the kingdom's agriculture minister, told reporters on the sidelines of an industry event in Abu Dhabi.
He added: "We don't have one place or region we are targeting for these land leases, I can promise you that we will be everywhere in the world
11/21/2010
L’équation de la sécurité alimentaire
Pierre-Alexandre Sallier
L’équilibre agricole mondial en onze chiffres
■ Dans dix ans, les besoins alimentaires annuels supplémentaires de la Chine équivaudront à ceux affichés par l’Europe des 27.
■ Les importations chinoises de soja représentent 60% de la demande mondiale.
■ Si les rendements restent les mêmes, 10 millions d’hectares supplémentaires – trois fois la Suisse – devront être plantés dans le monde pour ne pas puiser dans les stocks de grains.
■ Les biocarburants brûlent 30% de l’huile de colza, 15% de celle de soja et 15% du maïs.
■ L’alimentation du bétail et les besoins «industriels» (biocarburants) dévorent 35% des céréales et 60% des oléagineux.
■ L’impact des changements de régime alimentaire sur la demande d’huiles végétales est aussi important que celui de l’accroissement de la population.
■ Les besoins en grains sont passés de 155 à 250 kg par habitant depuis 1964, les biocarburants leur faisant toucher de nouveaux sommets cette année.
■ Depuis 1964, les surfaces cultivées par habitant ont fondu, passant de 1500 à 900 m2. La hausse des rendements de 1,40 à 3 tonnes par hectare (céréales et oléagineux) a cependant permis aux récoltes d’augmenter de 210 à 280 kg par être humain.
■ 70% des champs de soja, 25% de ceux de maïs et 20% du colza sont plantés en OGM.
■ Les exportations américaines représentent 44% du commerce mondial du blé, du maïs et des oléagineux, une importance similaire à celle observée en 1966.
■ Les exportations russes de blé sont passées cette année de 18 millions à moins de 4 millions de tonnes.
L’équilibre agricole mondial en onze chiffres
■ Dans dix ans, les besoins alimentaires annuels supplémentaires de la Chine équivaudront à ceux affichés par l’Europe des 27.
■ Les importations chinoises de soja représentent 60% de la demande mondiale.
■ Si les rendements restent les mêmes, 10 millions d’hectares supplémentaires – trois fois la Suisse – devront être plantés dans le monde pour ne pas puiser dans les stocks de grains.
■ Les biocarburants brûlent 30% de l’huile de colza, 15% de celle de soja et 15% du maïs.
■ L’alimentation du bétail et les besoins «industriels» (biocarburants) dévorent 35% des céréales et 60% des oléagineux.
■ L’impact des changements de régime alimentaire sur la demande d’huiles végétales est aussi important que celui de l’accroissement de la population.
■ Les besoins en grains sont passés de 155 à 250 kg par habitant depuis 1964, les biocarburants leur faisant toucher de nouveaux sommets cette année.
■ Depuis 1964, les surfaces cultivées par habitant ont fondu, passant de 1500 à 900 m2. La hausse des rendements de 1,40 à 3 tonnes par hectare (céréales et oléagineux) a cependant permis aux récoltes d’augmenter de 210 à 280 kg par être humain.
■ 70% des champs de soja, 25% de ceux de maïs et 20% du colza sont plantés en OGM.
■ Les exportations américaines représentent 44% du commerce mondial du blé, du maïs et des oléagineux, une importance similaire à celle observée en 1966.
■ Les exportations russes de blé sont passées cette année de 18 millions à moins de 4 millions de tonnes.
11/18/2010
Ex-RBS Sempra heads to launch physical commodity fund
5:28pm EST
NEW YORK (Reuters) - The former heads of RBS Sempra Commodities will launch a physical energy and metals trading fund backed by Stone Point Capital early next year, the CEO of Stone Point told Reuters on Thursday.
David Messer and Frank Gallipoli, who started the Sempra Commodities trading unit that later established a joint venture with RBS (RBS.L: Quote, Profile, Research, Stock Buzz), will launch the fund in the first quarter of 2011 in Stamford, Connecticut.
The move is the latest evidence of private equity funds stepping in to finance proprietary trading as banks face tougher restrictions on trading for their own book.
Charles Davis, CEO of the $10 billion private equity fund, said the commodities trading fund would be seeded with "hundreds of millions of dollars" and would focus initially on energy and metals trading.
Jason Schenker, president and CEO of Prestige Economics in Austin Texas, said the move showed private equity firms are looking to diversify their investments following two years of relatively lackluster returns.
"If you invest in good people and good trading strategies you can make a lot of money trading commodities. There's still a lot of interest in this space," Schenker said.
"It has been a difficult two years for private equity firms and they're increasingly looking to invest directly into hedge funds and commodity traders to help generate better returns."
Messer and Gallipoli will be joined at the fund by former RBS-Sempra chief operating officer (COO) Rob Feilbogen, Davis said.
All three parted from RBS Sempra last spring. Sparkspread.com, which initially reported the story, said the three would be part funding the new venture.
Davis at Stone Point said the fund would trade physical oil, gas, power and base metals, adding the firm may trade other commodities depending on the eventual make-up of the team they are putting together.
David Messer was not immediately available for comment.
PRIVATE EQUITY
Banks have been changing their trading businesses to comply with the Volcker rule, part of a broader financial reform law that limits the extent to which banks can bet with their own capital.
The change in strategy has seen many physical commodity traders leave banks to join traditional energy and metal trading houses or set up their own funds.
In September, a senior Credit Suisse (CSGN.VX: Quote, Profile, Research, Stock Buzz) commodity executive and a team of traders left the bank to set up a hedge fund backed by the private-equity Blackstone Group.
RBS established the joint venture with Sempra Commodities in 2008 but was forced to slim down to appease European Union antitrust concerns just over one year later after it received billions of dollars in state aid during the financial crisis.
Most of the joint venture was sold to JPMorgan (JPM.N: Quote, Profile, Research, Stock Buzz) this year for around $1.8 billion. The exception was the retail commodity marketing operations that were sold to Noble Group Ltd (NOBG.SI: Quote, Profile, Research, Stock Buzz) in September for $317 million.
JPMorgan cut up to 50 people from its enlarged commodities trading business in July following the takeover.
The head of RBS Sempra's proprietary metals trading business left the firm with his team in September.
NEW YORK (Reuters) - The former heads of RBS Sempra Commodities will launch a physical energy and metals trading fund backed by Stone Point Capital early next year, the CEO of Stone Point told Reuters on Thursday.
David Messer and Frank Gallipoli, who started the Sempra Commodities trading unit that later established a joint venture with RBS (RBS.L: Quote, Profile, Research, Stock Buzz), will launch the fund in the first quarter of 2011 in Stamford, Connecticut.
The move is the latest evidence of private equity funds stepping in to finance proprietary trading as banks face tougher restrictions on trading for their own book.
Charles Davis, CEO of the $10 billion private equity fund, said the commodities trading fund would be seeded with "hundreds of millions of dollars" and would focus initially on energy and metals trading.
Jason Schenker, president and CEO of Prestige Economics in Austin Texas, said the move showed private equity firms are looking to diversify their investments following two years of relatively lackluster returns.
"If you invest in good people and good trading strategies you can make a lot of money trading commodities. There's still a lot of interest in this space," Schenker said.
"It has been a difficult two years for private equity firms and they're increasingly looking to invest directly into hedge funds and commodity traders to help generate better returns."
Messer and Gallipoli will be joined at the fund by former RBS-Sempra chief operating officer (COO) Rob Feilbogen, Davis said.
All three parted from RBS Sempra last spring. Sparkspread.com, which initially reported the story, said the three would be part funding the new venture.
Davis at Stone Point said the fund would trade physical oil, gas, power and base metals, adding the firm may trade other commodities depending on the eventual make-up of the team they are putting together.
David Messer was not immediately available for comment.
PRIVATE EQUITY
Banks have been changing their trading businesses to comply with the Volcker rule, part of a broader financial reform law that limits the extent to which banks can bet with their own capital.
The change in strategy has seen many physical commodity traders leave banks to join traditional energy and metal trading houses or set up their own funds.
In September, a senior Credit Suisse (CSGN.VX: Quote, Profile, Research, Stock Buzz) commodity executive and a team of traders left the bank to set up a hedge fund backed by the private-equity Blackstone Group.
RBS established the joint venture with Sempra Commodities in 2008 but was forced to slim down to appease European Union antitrust concerns just over one year later after it received billions of dollars in state aid during the financial crisis.
Most of the joint venture was sold to JPMorgan (JPM.N: Quote, Profile, Research, Stock Buzz) this year for around $1.8 billion. The exception was the retail commodity marketing operations that were sold to Noble Group Ltd (NOBG.SI: Quote, Profile, Research, Stock Buzz) in September for $317 million.
JPMorgan cut up to 50 people from its enlarged commodities trading business in July following the takeover.
The head of RBS Sempra's proprietary metals trading business left the firm with his team in September.
11/17/2010
Olam invests US$1.5b in Gabon
Channel News Asia | 15 November 2010
Olam's CEO Sunny Verghese says his company uses political risk assurance, such as that provided by the World Bank's Multilateral Investment Guranatee Agency (MIGA), for its projects in Africa.
By Travis Teo
SINGAPORE: Commodities company Olam recently announced plans to invest US$1.5 billion in the African country of Gabon.
And it said at full production, its new fertiliser plant and palm oil unit will generate a combined revenue of US$675 million annually.
This means that by 2015, one-fifth of Olam’s revenue will come from Africa, up from the current 14 to 15 per cent.
Olam is betting on Africa to double its net profit margin to 5.2 per cent in five years and analysts have said that it is an achievable target.
Demand for agricultural commodities has outstripped supply for the last 9 out of 10 years and agri-commodities companies are increasingly turning to unexplored regions like Africa for their resource needs.
But Africa is still a risky bet.
“How we manage the political and sovereign risk is to take a risk insurance cover, a political risk insurance cover call PRI, in the London Lloyd’s Market. And in addition to that for specific projects, we try to secure MIGA guarantees, the multi lateral investment guarantee agency, MIGA, which is a world bank body for project risk insurance, and by diversifying…we are able to mitigate and manage these risks,” said Sunny Verghese, Group Managing Director and CEO of Olam.
Large tracts of land and cheap manpower in the second-fastest-growing continent in the world make Africa an attractive investment for commodities companies that are increasingly seeking to attain scale.
Analysts added that the recent merger talks between Olam and Louis Dreyfus, which dominates rice imports by Africa, can potentially give the combined entities the advantage of pricing power.
James Koh, an Analyst with Kim Eng, feels that there will be a long term increase in prices of commodities.
“The long term supply demand trends points to a long term increase in prices, but I don’t think that its necessary means that every commodity related company will benefit from this boom. For one thing, I think you need to be well capitalised, you need to be a substantial player, we are already seeing a wave of consolidation in this sector. I think with the recession you are finding that people are preferring to deal with the bigger players like Olam, like Noble, because there’s less counter party risk.”
It also helps to have on-the-ground experience of doing business in Africa. And in that regard, analysts said, Olam, which started exporting cashews out of Nigeria in 1989, has a huge advantage.
Overall analysts have a positive view of commodities companies like Olam and Nobel.
“This is one sector where we see that we can still achieve growth, especially now that the risk of a double dip recession is subsiding. These are well capitalised players where they have the financial muscles to do M&A deal, identify good investment and take advantage of the low interest rate environment. That will help generate value for shareholders,” said Mr Koh.
--------------------------------------------------------------------------------
Olam's CEO Sunny Verghese says his company uses political risk assurance, such as that provided by the World Bank's Multilateral Investment Guranatee Agency (MIGA), for its projects in Africa.
By Travis Teo
SINGAPORE: Commodities company Olam recently announced plans to invest US$1.5 billion in the African country of Gabon.
And it said at full production, its new fertiliser plant and palm oil unit will generate a combined revenue of US$675 million annually.
This means that by 2015, one-fifth of Olam’s revenue will come from Africa, up from the current 14 to 15 per cent.
Olam is betting on Africa to double its net profit margin to 5.2 per cent in five years and analysts have said that it is an achievable target.
Demand for agricultural commodities has outstripped supply for the last 9 out of 10 years and agri-commodities companies are increasingly turning to unexplored regions like Africa for their resource needs.
But Africa is still a risky bet.
“How we manage the political and sovereign risk is to take a risk insurance cover, a political risk insurance cover call PRI, in the London Lloyd’s Market. And in addition to that for specific projects, we try to secure MIGA guarantees, the multi lateral investment guarantee agency, MIGA, which is a world bank body for project risk insurance, and by diversifying…we are able to mitigate and manage these risks,” said Sunny Verghese, Group Managing Director and CEO of Olam.
Large tracts of land and cheap manpower in the second-fastest-growing continent in the world make Africa an attractive investment for commodities companies that are increasingly seeking to attain scale.
Analysts added that the recent merger talks between Olam and Louis Dreyfus, which dominates rice imports by Africa, can potentially give the combined entities the advantage of pricing power.
James Koh, an Analyst with Kim Eng, feels that there will be a long term increase in prices of commodities.
“The long term supply demand trends points to a long term increase in prices, but I don’t think that its necessary means that every commodity related company will benefit from this boom. For one thing, I think you need to be well capitalised, you need to be a substantial player, we are already seeing a wave of consolidation in this sector. I think with the recession you are finding that people are preferring to deal with the bigger players like Olam, like Noble, because there’s less counter party risk.”
It also helps to have on-the-ground experience of doing business in Africa. And in that regard, analysts said, Olam, which started exporting cashews out of Nigeria in 1989, has a huge advantage.
Overall analysts have a positive view of commodities companies like Olam and Nobel.
“This is one sector where we see that we can still achieve growth, especially now that the risk of a double dip recession is subsiding. These are well capitalised players where they have the financial muscles to do M&A deal, identify good investment and take advantage of the low interest rate environment. That will help generate value for shareholders,” said Mr Koh.
--------------------------------------------------------------------------------
Abu Dhabi moves to secure food supply
Financial Times | 16 November 2010
Abu Dhabi has been working on a food security strategy and is building silos in Fujairah. "If you really want food security, either you buy a piece of farmland overseas or you build your own trading house," a London-based commodities banker told FT.
FT [1] via Zawya.com
By Javier Blas and Jack Farchy in London and Andrew England and Roula Khalaf in Abu Dhabi
Abu Dhabi is to make a bold foray into commodities with the establishment of a government-owned trading house aimed at securing food supplies for the import-dependent nation and capturing profit margins in metals and agriculture trading.
People familiar with the plans say the company, which is called Abu Dhabi Sources or ADS, is likely to be started with a capital base of several hundred millions of dollars.
ADS will be going up against well established trading houses, including Glencore, the world’s largest commodities trader, Minneapolis-based Cargill and Louis Dreyfus of France.
Bankers and traders in London and Geneva, Europe’s trading hubs, say headhunters have approached metals and agriculture traders in the past three months seeking senior staff to build up ADS. It is not clear if ADS will trade in oil.
Abu Dhabi, home of 95 per cent of the hydrocarbon reserves of the United Arab Emirates, has embarked on ambitious plans to transform itself into a global city, with infrastructure projects that could cost more than $300bn and require huge imports of raw materials.
Food security has risen to the top of the agenda in the Middle East and North Africa – the world’s biggest importer of cereals – following the food crisis of 2007-2008.
Policymakers are worried about surging prices, but more importantly about exporting countries’ trade restrictions – such as Russia’s halt on wheat shipments – which make importers vulnerable to an interruption in supplies.
Commodities prices have rocketed in the past six years on the back of strong demand from China and other emerging markets.
Copper prices hit record highs last week, becoming the first industrial commodity to break above levels set in 2008.
Abu Dhabi has been working on a food security strategy and is building silos in Fujairah, a smaller member of the UAE.
The move is designed to secure the flow of imports even in the event of a disruption in the Strait of Hormuz, the Gulf’s key waterway, which could be affected by any military confrontation with Iran.
“If you really want food security, either you buy a piece of farmland overseas or you build your own trading house,” a London-based commodities banker said.
Abu Dhabi is not the first country to build a domestic trading house, although its plans appear more ambitious than other, more limited, state-owned trading enterprises, such as Badan Urusan Logistik, or Bulog, of Indonesia.
--------------------------------------------------------------------------------
Abu Dhabi has been working on a food security strategy and is building silos in Fujairah. "If you really want food security, either you buy a piece of farmland overseas or you build your own trading house," a London-based commodities banker told FT.
FT [1] via Zawya.com
By Javier Blas and Jack Farchy in London and Andrew England and Roula Khalaf in Abu Dhabi
Abu Dhabi is to make a bold foray into commodities with the establishment of a government-owned trading house aimed at securing food supplies for the import-dependent nation and capturing profit margins in metals and agriculture trading.
People familiar with the plans say the company, which is called Abu Dhabi Sources or ADS, is likely to be started with a capital base of several hundred millions of dollars.
ADS will be going up against well established trading houses, including Glencore, the world’s largest commodities trader, Minneapolis-based Cargill and Louis Dreyfus of France.
Bankers and traders in London and Geneva, Europe’s trading hubs, say headhunters have approached metals and agriculture traders in the past three months seeking senior staff to build up ADS. It is not clear if ADS will trade in oil.
Abu Dhabi, home of 95 per cent of the hydrocarbon reserves of the United Arab Emirates, has embarked on ambitious plans to transform itself into a global city, with infrastructure projects that could cost more than $300bn and require huge imports of raw materials.
Food security has risen to the top of the agenda in the Middle East and North Africa – the world’s biggest importer of cereals – following the food crisis of 2007-2008.
Policymakers are worried about surging prices, but more importantly about exporting countries’ trade restrictions – such as Russia’s halt on wheat shipments – which make importers vulnerable to an interruption in supplies.
Commodities prices have rocketed in the past six years on the back of strong demand from China and other emerging markets.
Copper prices hit record highs last week, becoming the first industrial commodity to break above levels set in 2008.
Abu Dhabi has been working on a food security strategy and is building silos in Fujairah, a smaller member of the UAE.
The move is designed to secure the flow of imports even in the event of a disruption in the Strait of Hormuz, the Gulf’s key waterway, which could be affected by any military confrontation with Iran.
“If you really want food security, either you buy a piece of farmland overseas or you build your own trading house,” a London-based commodities banker said.
Abu Dhabi is not the first country to build a domestic trading house, although its plans appear more ambitious than other, more limited, state-owned trading enterprises, such as Badan Urusan Logistik, or Bulog, of Indonesia.
--------------------------------------------------------------------------------
11/12/2010
Gold, Agriculture Are `Safest Long Positions,' Deutsche Bank's Lewis Says
By Jae Hur and Ichiro Suzuki - Nov 11, 2010 Precious metals including gold and agricultural commodities may extend gains in the coming months as a declining dollar and tight supplies boost demand, according to Deutsche Bank AG.
A lot of agricultural commodities including corn, soybeans and wheat are “still cheap” even after recent rallies, Michael Lewis, global head of commodities research, said in an interview. The surge in gold, which touched a record this week, is not yet extreme, Lewis said yesterday in Tokyo.
Commodities have jumped this year on increased demand as the U.S. emerged from recession and China, the world’s largest metals user, led expansions in Asia. Copper, used in pipes and wires, reached an all-time high today. Grains and soybeans have rallied on higher demand, trade curbs and poor harvests.
“The safest long positions to have are in precious metals and agriculture,” Lewis said in the interview, referring to bets that prices will advance. For gold “the magnitude of this rally to us is not extreme,” Lewis said.
Immediate-delivery gold has gained 28 percent in 2010 and is set for a 10th annual gain as the dollar has dropped. The precious metal touched a record $1,424.60 an ounce on Nov. 9. Corn has gained 42 percent this year on speculation hot, dry weather in August hurt crops in the U.S., the world’s biggest exporter. Cotton reached a record $1.5195 a pound yesterday.
Gold Bulls
Lewis’s call for higher gold prices echoes forecasts from other investors and analysts including Jim Rogers, who has said it may jump to $2,000 an ounce over the long term. Myles Zyblock, chief institutional strategist at RBC Capital Markets, said last month gold may soar to $3,800 within three years as it follows the pattern of previous “investment manias.”
Gold would need to rise to more than $1,455 an ounce to surpass its all-time high in real terms as measured by producer prices, Lewis said, according to a copy of remarks to clients in Tokyo today. Adjusted for changes in consumer prices, the metal would need to advance to $1,880 an ounce to reach the level seen at the beginning of the 1980s, he wrote in the remarks.
“The gold price would need to hit $2,100 to represent the most powerful rally in percentage terms, and surpass the 1976- 1980 gold-price rally, when prices surged by just over 720 percent,” Lewis wrote in the speech.
Bond Buying
Gold has surged as the U.S. currency has dropped, investors have boosted holdings through exchange-traded products and central banks including India’s have added the metal to their reserves. The dollar has fallen as the Federal Reserve expanded a program to buy bonds to bolster growth in the largest economy.
The Dollar Index, which tracks the currency against six major counterparts including the euro and the yen, traded today at 77.625 compared with this year’s high of 88.708, which was set in June.
“We expect investors’ flows into gold exchange-traded funds will accelerate, as well as efforts by the Fed to devalue the dollar,” Lewis wrote in the speech to clients. Exchange traded funds, of ETFs, trade like stocks, enabling investors to buy precious metals and other products without taking delivery.
Central-bank gold holdings rose by about 500 metric tons last year and may rise again in 2010, the first time they have been net buyers since 1988, Lewis said in the speech. On current trends, central-bank buying in 2010 will surpass private-sector inflows into physically backed ETFs, Lewis said in the speech.
Central banks in India, Bangladesh, Sri Lanka and Mauritius have bought gold this year and in 2009 from the International Monetary Fund, which said last year it was putting 403.3 tons of bullion up for sale.
A lot of agricultural commodities including corn, soybeans and wheat are “still cheap” even after recent rallies, Michael Lewis, global head of commodities research, said in an interview. The surge in gold, which touched a record this week, is not yet extreme, Lewis said yesterday in Tokyo.
Commodities have jumped this year on increased demand as the U.S. emerged from recession and China, the world’s largest metals user, led expansions in Asia. Copper, used in pipes and wires, reached an all-time high today. Grains and soybeans have rallied on higher demand, trade curbs and poor harvests.
“The safest long positions to have are in precious metals and agriculture,” Lewis said in the interview, referring to bets that prices will advance. For gold “the magnitude of this rally to us is not extreme,” Lewis said.
Immediate-delivery gold has gained 28 percent in 2010 and is set for a 10th annual gain as the dollar has dropped. The precious metal touched a record $1,424.60 an ounce on Nov. 9. Corn has gained 42 percent this year on speculation hot, dry weather in August hurt crops in the U.S., the world’s biggest exporter. Cotton reached a record $1.5195 a pound yesterday.
Gold Bulls
Lewis’s call for higher gold prices echoes forecasts from other investors and analysts including Jim Rogers, who has said it may jump to $2,000 an ounce over the long term. Myles Zyblock, chief institutional strategist at RBC Capital Markets, said last month gold may soar to $3,800 within three years as it follows the pattern of previous “investment manias.”
Gold would need to rise to more than $1,455 an ounce to surpass its all-time high in real terms as measured by producer prices, Lewis said, according to a copy of remarks to clients in Tokyo today. Adjusted for changes in consumer prices, the metal would need to advance to $1,880 an ounce to reach the level seen at the beginning of the 1980s, he wrote in the remarks.
“The gold price would need to hit $2,100 to represent the most powerful rally in percentage terms, and surpass the 1976- 1980 gold-price rally, when prices surged by just over 720 percent,” Lewis wrote in the speech.
Bond Buying
Gold has surged as the U.S. currency has dropped, investors have boosted holdings through exchange-traded products and central banks including India’s have added the metal to their reserves. The dollar has fallen as the Federal Reserve expanded a program to buy bonds to bolster growth in the largest economy.
The Dollar Index, which tracks the currency against six major counterparts including the euro and the yen, traded today at 77.625 compared with this year’s high of 88.708, which was set in June.
“We expect investors’ flows into gold exchange-traded funds will accelerate, as well as efforts by the Fed to devalue the dollar,” Lewis wrote in the speech to clients. Exchange traded funds, of ETFs, trade like stocks, enabling investors to buy precious metals and other products without taking delivery.
Central-bank gold holdings rose by about 500 metric tons last year and may rise again in 2010, the first time they have been net buyers since 1988, Lewis said in the speech. On current trends, central-bank buying in 2010 will surpass private-sector inflows into physically backed ETFs, Lewis said in the speech.
Central banks in India, Bangladesh, Sri Lanka and Mauritius have bought gold this year and in 2009 from the International Monetary Fund, which said last year it was putting 403.3 tons of bullion up for sale.
11/11/2010
From corn to nuts, Optima plans listed farmland REIT
Reuters | 9 November 2010
Optima's Thomas Gimbel said they are exploring international agricultural investment opportunities, but currently are focusing on U.S. farmland, what he calls the "breadbasket of the globe."
By Carey Gillam
BOSTON, Nov 9 (Reuters) – U.S. investment adviser Optima Fund Management is picking up new U.S. farm properties at a brisk pace as it prepares to take public its farmland real estate investment trust, a top Optima executive said Tuesday.
“There are a lot of institutional investors who are recognizing the opportunity here,” Optima Fund Management Executive Managing Director Tom Gimbel said in a presentation Tuesday to a gathering of agricultural investors. “I think we are at an inflection point.”
Optima, a $4.5 billion private investment firm specializing in hedge funds, started investing in U.S. farmland about two years ago, but it still comprises a small percentage of its portfolio.
Optima intends to list its American Farmland Co REIT in the next three to four years, Gimbel told the Agriculture Outlook Americas conference in Boston. He said Optima has been talking with investment banks and underwriters about the prospects, which appear to be “extremely good.”
Optima is not the first to push for a public farmland REIT. Gladstone Land Corp, a REIT focused on agricultural properties, in August filed plans with U.S. regulators for an initial public offering on Nasdaq under the symbol “LAND.” [ID:nSGE6750KF]
As it prepares for its own offering, Optima’s farmland REIT is diversifying its farmland holdings across the United States, with ownership of 12 different crop varieties, including corn and soybean farms in Illinois, and a vineyard in Monterrey, California.
Optima currently is close to completing the acquisitions of a vegetable farm in Florida, a rice farm in the Mississippi Delta and a walnut grove in California, according to Gimbel.
But the fundamentals for U.S. farmland are strong and growing, Gimbel said.
In a July report, Optima said it saw a long-term, “super cycle” for agriculture continuing for many reasons, including China’s strong demand for U.S. grain, a growing world population that will continue to drive food demand, and a global scarcity for land and water for food production.
Gimbel said Optima is exploring international agricultural investment opportunities, but currently is focusing on U.S. farmland, what he called the “breadbasket of the globe.”
U.S. farmland investments are seen generating lower returns than deals many other investors are pursuing in international markets, but are seen as far less risky, he said.
“We’re starting with the U.S.,” he said. (Reporting by Carey Gillam; Editing by Lisa Shumaker and Maureen Bavdek)
Optima's Thomas Gimbel said they are exploring international agricultural investment opportunities, but currently are focusing on U.S. farmland, what he calls the "breadbasket of the globe."
By Carey Gillam
BOSTON, Nov 9 (Reuters) – U.S. investment adviser Optima Fund Management is picking up new U.S. farm properties at a brisk pace as it prepares to take public its farmland real estate investment trust, a top Optima executive said Tuesday.
“There are a lot of institutional investors who are recognizing the opportunity here,” Optima Fund Management Executive Managing Director Tom Gimbel said in a presentation Tuesday to a gathering of agricultural investors. “I think we are at an inflection point.”
Optima, a $4.5 billion private investment firm specializing in hedge funds, started investing in U.S. farmland about two years ago, but it still comprises a small percentage of its portfolio.
Optima intends to list its American Farmland Co REIT in the next three to four years, Gimbel told the Agriculture Outlook Americas conference in Boston. He said Optima has been talking with investment banks and underwriters about the prospects, which appear to be “extremely good.”
Optima is not the first to push for a public farmland REIT. Gladstone Land Corp, a REIT focused on agricultural properties, in August filed plans with U.S. regulators for an initial public offering on Nasdaq under the symbol “LAND.” [ID:nSGE6750KF]
As it prepares for its own offering, Optima’s farmland REIT is diversifying its farmland holdings across the United States, with ownership of 12 different crop varieties, including corn and soybean farms in Illinois, and a vineyard in Monterrey, California.
Optima currently is close to completing the acquisitions of a vegetable farm in Florida, a rice farm in the Mississippi Delta and a walnut grove in California, according to Gimbel.
But the fundamentals for U.S. farmland are strong and growing, Gimbel said.
In a July report, Optima said it saw a long-term, “super cycle” for agriculture continuing for many reasons, including China’s strong demand for U.S. grain, a growing world population that will continue to drive food demand, and a global scarcity for land and water for food production.
Gimbel said Optima is exploring international agricultural investment opportunities, but currently is focusing on U.S. farmland, what he called the “breadbasket of the globe.”
U.S. farmland investments are seen generating lower returns than deals many other investors are pursuing in international markets, but are seen as far less risky, he said.
“We’re starting with the U.S.,” he said. (Reporting by Carey Gillam; Editing by Lisa Shumaker and Maureen Bavdek)
Private equity sees “buckets of money” in water buys
Reuters | 9 November 2010
By Laura MacInnis
GENEVA, Nov 9 (Reuters) – Water scarcity will generate big returns for the irrigation sector once climate change and population growth take their toll on farming, private equity managers said on Tuesday.
Asked at an agriculture investing conference whether it is possible to make money from water, typically a public good rather than a bankable commodity, Judson Hill of NGP Global Adaptation Partners was unequivocal.
“Buckets, buckets of money,” he told the meeting of bankers and investors in Geneva, a leading European hub for commodity trading. “There are many ways to make a very attractive return in the water sector if you know where to go.”
Smart irrigation technology will be at a premium in arid regions and places where higher crop yields are needed to meet rising food demand, Hill said, also citing opportunities from water rights in Australia and parts of the United States.
“Irrigation is a big industry and it is growing. I think it’s going to grow dramatically,” he said, estimating the sector at $3.5 billion today. “In parts of the U.S. we still grow rice in the desert, as crazy as that is. I think that will change.”
Gary Taylor, a partner with AgriCura, a fund focused on U.S. corn, soybean, cotton, rice and wheat farming, said water was fundamental to smart agricultural land investments.
“We have done extensive work to understand the aquifer system along the Mississippi river and do believe over the term of our fund that water will become increasingly important,” Taylor, a former executive at Cargill, said.
For agricultural equipment manufacturers such as John Deere (DE.N), there are also opportunities in tailoring irrigation systems to drought-resistant seeds developed by companies such as Monsanto (MON.N), Dupont (DD.N) and Syngenta (SYNN.VX).
“There are very efficient ways to approach irrigation,” said Cory Reed, John Deere’s director of strategic marketing, describing a need to water certain commodity crops with careful volumes on a fixed schedule.
Hill also named links with communities as critical to gaining traction in the “very, very local” water sector, where investments can involve negotiations with governments amid growing awareness about scarcity risks.
“The water business is very much like the energy business was 20 or 25 years ago,” he said. “As the price of water increases we are all going to become better stewards, not because we all become environmentalists but because it will affect our pocketbooks.” (Editing by Janet Lawrence)
By Laura MacInnis
GENEVA, Nov 9 (Reuters) – Water scarcity will generate big returns for the irrigation sector once climate change and population growth take their toll on farming, private equity managers said on Tuesday.
Asked at an agriculture investing conference whether it is possible to make money from water, typically a public good rather than a bankable commodity, Judson Hill of NGP Global Adaptation Partners was unequivocal.
“Buckets, buckets of money,” he told the meeting of bankers and investors in Geneva, a leading European hub for commodity trading. “There are many ways to make a very attractive return in the water sector if you know where to go.”
Smart irrigation technology will be at a premium in arid regions and places where higher crop yields are needed to meet rising food demand, Hill said, also citing opportunities from water rights in Australia and parts of the United States.
“Irrigation is a big industry and it is growing. I think it’s going to grow dramatically,” he said, estimating the sector at $3.5 billion today. “In parts of the U.S. we still grow rice in the desert, as crazy as that is. I think that will change.”
Gary Taylor, a partner with AgriCura, a fund focused on U.S. corn, soybean, cotton, rice and wheat farming, said water was fundamental to smart agricultural land investments.
“We have done extensive work to understand the aquifer system along the Mississippi river and do believe over the term of our fund that water will become increasingly important,” Taylor, a former executive at Cargill, said.
For agricultural equipment manufacturers such as John Deere (DE.N), there are also opportunities in tailoring irrigation systems to drought-resistant seeds developed by companies such as Monsanto (MON.N), Dupont (DD.N) and Syngenta (SYNN.VX).
“There are very efficient ways to approach irrigation,” said Cory Reed, John Deere’s director of strategic marketing, describing a need to water certain commodity crops with careful volumes on a fixed schedule.
Hill also named links with communities as critical to gaining traction in the “very, very local” water sector, where investments can involve negotiations with governments amid growing awareness about scarcity risks.
“The water business is very much like the energy business was 20 or 25 years ago,” he said. “As the price of water increases we are all going to become better stewards, not because we all become environmentalists but because it will affect our pocketbooks.” (Editing by Janet Lawrence)
Bankers, funds try to cope with demand for farms
Reuters | 9 November 2010
"There aren't many Goldman Sachs bankers walking around rural China looking for dairy farms," says Rich Gammill, managing director of the Cargill unit Black River Asset Management (Photo: Xinhua).
By Laura MacInnis
GENEVA, Nov 9 (Reuters) – Bankers and fund managers are scrambling to build up rural expertise in response to rocketing investor demand to buy entire farms as an inflation hedge.
Investment funds worldwide have put an estimated $15 billion to $20 billion in agriculture globally, and interest is also growing from ultra-rich investors and pension funds, which see farmland as tangible, strategic assets.
But Rich Gammill, managing director of the Cargill unit Black River Asset Management, which manages $6 billion including in food and agriculture, said farmland investments can be tricky.
“It seems simple, but agriculture is anything but. There is a global supply chain and lots of regulation, a lot of risks and factors that I think the traditional finance people on Wall Street do not have their heads wrapped around,” he said.
Many investors also want international holdings, requiring their advisers to navigate different tax and regulatory systems, as well as rules on foreign land ownership.
“There aren’t many Goldman Sachs bankers walking around rural China looking for dairy farms,” Gammill said.
In the United States, the $1.2 trillion farming sector remains less than 1 percent institutionally owned, mainly because many investors don’t know how to get started, said Mary McNairy, a partner at International Farming Corp, an alternative investment firm.
“It is huge. The question is, how do you get into it, how do you access the market,” she said.
NEED FOR LOCAL CONTACTS
Gary Taylor, a partner with AgriCura, a fund focused on U.S. corn, soybean, cotton, rice and wheat farming, estimated that over the next decade 50 percent of U.S. farmland will change hands, mainly because of the advanced age of most farmers.
Buying agricultural lands requires local links, said Tim Hornibrook, division director of Macquarie Agricultural Funds Management.
“It is essentially a private market. That makes it hard to get access but it also presents great opportunity,” he said.
Several investment managers also described the struggle to bridge the gap “between Wall Street and the farm track”, with a search for farm managers who can deal well with investors and bankers who understand the basics of agricultural operations.
They may also need to learn to cope with farmland issues including jobs and security of food supplies.
Several dozen farmers, union members and activists protested outside the luxury Geneva hotel where the agriculture investing conference was held on Tuesday, saying foreign purchases of farmland risked choking off local food supplies.
“This is the consequence we fear from the liberalisation of agriculture,” said Rudi Berli, a Geneva-based vegetable farmer, who described risks for developing countries in particular. “The small producers are going to suffer from this.”
But Hornibrook of Macquarie said agriculture investors would tread lightly on the terrain they purchased.
“Sustainability is just part of what you do as part of good business practice,” he said. “If you manage your land in the right way, it is going to increase the viability of that land longer term.”
(Editing by Jane Baird)
"There aren't many Goldman Sachs bankers walking around rural China looking for dairy farms," says Rich Gammill, managing director of the Cargill unit Black River Asset Management (Photo: Xinhua).
By Laura MacInnis
GENEVA, Nov 9 (Reuters) – Bankers and fund managers are scrambling to build up rural expertise in response to rocketing investor demand to buy entire farms as an inflation hedge.
Investment funds worldwide have put an estimated $15 billion to $20 billion in agriculture globally, and interest is also growing from ultra-rich investors and pension funds, which see farmland as tangible, strategic assets.
But Rich Gammill, managing director of the Cargill unit Black River Asset Management, which manages $6 billion including in food and agriculture, said farmland investments can be tricky.
“It seems simple, but agriculture is anything but. There is a global supply chain and lots of regulation, a lot of risks and factors that I think the traditional finance people on Wall Street do not have their heads wrapped around,” he said.
Many investors also want international holdings, requiring their advisers to navigate different tax and regulatory systems, as well as rules on foreign land ownership.
“There aren’t many Goldman Sachs bankers walking around rural China looking for dairy farms,” Gammill said.
In the United States, the $1.2 trillion farming sector remains less than 1 percent institutionally owned, mainly because many investors don’t know how to get started, said Mary McNairy, a partner at International Farming Corp, an alternative investment firm.
“It is huge. The question is, how do you get into it, how do you access the market,” she said.
NEED FOR LOCAL CONTACTS
Gary Taylor, a partner with AgriCura, a fund focused on U.S. corn, soybean, cotton, rice and wheat farming, estimated that over the next decade 50 percent of U.S. farmland will change hands, mainly because of the advanced age of most farmers.
Buying agricultural lands requires local links, said Tim Hornibrook, division director of Macquarie Agricultural Funds Management.
“It is essentially a private market. That makes it hard to get access but it also presents great opportunity,” he said.
Several investment managers also described the struggle to bridge the gap “between Wall Street and the farm track”, with a search for farm managers who can deal well with investors and bankers who understand the basics of agricultural operations.
They may also need to learn to cope with farmland issues including jobs and security of food supplies.
Several dozen farmers, union members and activists protested outside the luxury Geneva hotel where the agriculture investing conference was held on Tuesday, saying foreign purchases of farmland risked choking off local food supplies.
“This is the consequence we fear from the liberalisation of agriculture,” said Rudi Berli, a Geneva-based vegetable farmer, who described risks for developing countries in particular. “The small producers are going to suffer from this.”
But Hornibrook of Macquarie said agriculture investors would tread lightly on the terrain they purchased.
“Sustainability is just part of what you do as part of good business practice,” he said. “If you manage your land in the right way, it is going to increase the viability of that land longer term.”
(Editing by Jane Baird)
South America tops farmland investors’ wish-list
Reuters | 10 November 2010
Black River Asset Management, part of the U.S. agri-business giant Cargill, controls 50,000 hectares of productive land in South America and is looking for more chances to strike big farmland and food production deals.
By Laura MacInnis
GENEVA, Nov 9 (Reuters) – Farmers’ fields in Brazil and Argentina are among the most prized assets in a new global market for agricultural land that has sprung up alongside soaring commodity prices.
Private equity and fund managers at a farm investing conference in Geneva named South America a top place to buy, lease and manage agricultural lands for profit.
“The South American marketplace is really booming along right now,” said Mark Zenuk, managing director of the $3 billion NGP Global Adaptation Partners fund.
Black River Asset Management, part of the U.S. agri-business giant Cargill, controls 50,000 hectares of productive land in the region and is looking for more chances to strike big farmland and food production deals.
“It’s a scale approach, for sure,” said Rich Hammill, managing director of Black River, which manages some $6 billion in assets worldwide.
Carlos Aguiar, chief executive of the Macquarie Crop Fund, told the Geneva conference there was an active market in buying and selling Brazilian land.
“There is a scarcity of food and scarcity of land and Brazil is one of the only places that you can expand drastically and have the market that has the technology and the infrastructure in place for that,” he said.
EXPORT TAXES
South America accounts for 59 percent of global exports of oilseeds, 11 percent of grains and 37 percent of meat, said Gonzalo Fernandez Castro of Lumix Capital, who invests in farming in Brazil, Paraguay, Argentina and Paraguay.
With agricultural commodity prices at multi-year highs, buying farmland is seen as a more direct way to cash in on valuable crops and to take advantage of long-term appreciation of farm property.
“For most investors, agriculture is a very, very new asset class,” said Tim Hornibrook of Macquarie Agricultural Funds Management, who said it was typical for people to invest first in domestic farming markets to avoid more complex risks.
For NGP Global Adaptation Partners, Brazil, Paraguay and Uruguay are all attractive destinations and Argentina is under review following the death of former President Nestor Kirchner, a leftist political force who was due to run again in 2011.
“Argentina is extremely interesting,” Zenuk said. “It’s a great breadbasket to the world and it has a good infrastructure system. The problem is they have an export tax regime that they mess around with all the time.”
“You don’t want to be in an asset class where you are not able to market the material on a global basis,” Zenuk continued. “It does provide some difficulty in putting our money there, in a private equity sense.”
But Mark McLornan, the chief executive of Agro Terra, an Argentine farm investment firm which has logged 53 percent net returns in the last four years, said government controls were already factored into his business plans.
“A reduction in export taxes is money straight to my bottom line,” he said. McLornan said Argentina was also appealing as a farm investment destination because of its demographics.
While the average age of farmers in the U.S., European Union and Australia is around 60, in Argentina it is 40, meaning its farm labour force is robust and knowledgeable. “In Argentina it is a sector where people want to work,” he said.
--------------------------------------------------------------------------------
Black River Asset Management, part of the U.S. agri-business giant Cargill, controls 50,000 hectares of productive land in South America and is looking for more chances to strike big farmland and food production deals.
By Laura MacInnis
GENEVA, Nov 9 (Reuters) – Farmers’ fields in Brazil and Argentina are among the most prized assets in a new global market for agricultural land that has sprung up alongside soaring commodity prices.
Private equity and fund managers at a farm investing conference in Geneva named South America a top place to buy, lease and manage agricultural lands for profit.
“The South American marketplace is really booming along right now,” said Mark Zenuk, managing director of the $3 billion NGP Global Adaptation Partners fund.
Black River Asset Management, part of the U.S. agri-business giant Cargill, controls 50,000 hectares of productive land in the region and is looking for more chances to strike big farmland and food production deals.
“It’s a scale approach, for sure,” said Rich Hammill, managing director of Black River, which manages some $6 billion in assets worldwide.
Carlos Aguiar, chief executive of the Macquarie Crop Fund, told the Geneva conference there was an active market in buying and selling Brazilian land.
“There is a scarcity of food and scarcity of land and Brazil is one of the only places that you can expand drastically and have the market that has the technology and the infrastructure in place for that,” he said.
EXPORT TAXES
South America accounts for 59 percent of global exports of oilseeds, 11 percent of grains and 37 percent of meat, said Gonzalo Fernandez Castro of Lumix Capital, who invests in farming in Brazil, Paraguay, Argentina and Paraguay.
With agricultural commodity prices at multi-year highs, buying farmland is seen as a more direct way to cash in on valuable crops and to take advantage of long-term appreciation of farm property.
“For most investors, agriculture is a very, very new asset class,” said Tim Hornibrook of Macquarie Agricultural Funds Management, who said it was typical for people to invest first in domestic farming markets to avoid more complex risks.
For NGP Global Adaptation Partners, Brazil, Paraguay and Uruguay are all attractive destinations and Argentina is under review following the death of former President Nestor Kirchner, a leftist political force who was due to run again in 2011.
“Argentina is extremely interesting,” Zenuk said. “It’s a great breadbasket to the world and it has a good infrastructure system. The problem is they have an export tax regime that they mess around with all the time.”
“You don’t want to be in an asset class where you are not able to market the material on a global basis,” Zenuk continued. “It does provide some difficulty in putting our money there, in a private equity sense.”
But Mark McLornan, the chief executive of Agro Terra, an Argentine farm investment firm which has logged 53 percent net returns in the last four years, said government controls were already factored into his business plans.
“A reduction in export taxes is money straight to my bottom line,” he said. McLornan said Argentina was also appealing as a farm investment destination because of its demographics.
While the average age of farmers in the U.S., European Union and Australia is around 60, in Argentina it is 40, meaning its farm labour force is robust and knowledgeable. “In Argentina it is a sector where people want to work,” he said.
--------------------------------------------------------------------------------
11/07/2010
Le mythe agraire de Isis & Osiris
Le mythe égyptien de Osis et Osiris a une dimension agraire. En effet on peut facilement retracer l'origine agricole de cette fable, dont les principaux personnages prennent place dans le monde naturel. Prenons d'abord le cas d'Osiris. Ce dieu est reconnu par les Egyptiens comme le Grand Constructeur, le Grand Civilisateur, celui qui permet à l'Egypte de passer du monde de la chasse à celui de l'agriculture. En fait, pour l'Egypte antique, l'épi de blé mûri au soleil représente le dieu même, un dieu gorgé de soleil et de pouvoir nourricier.
On présente également Osiris comme un grand conquérant car il a su fléchir par le pouvoir de la douceur tout le monde connu d'alors. Ici encore, il s'agit sans doute d'une métaphore évoquant le succès de la culture du blé auprès des peuples ainsi affranchis des aléas de la chasse. C'est sans doute pourquoi il est dit qu'avec Osiris "le maitre de toutes choses arrivait à la lumière". Le blé que l'on peut engranger, le blé que l'on peut moudre, le blé dont on peut faire du pain dégusté en toute saison, ce blé d'est rapidement imposé aux humains; il a joui des égards qu'on accorde à un roi.
Osiris représente également les crues du Nil, responsables de la croissance du blé. Isis, sa tendre épouse, représente la terre humide, la terre fertile, la terre créatrice, fécondée par le pouvoir générateur des crues d'Osiris. Et Seth repsérente la terre aride du désert avec son vent chaud et desséchant qui dispute sans cesse à Osiris la terre fertile.
Car Seth, le maitre des tempètes et de tous les désordres, ne représente pas uniquement le pouvoir de la sécheresse. Par extension, il devient responsable du sort que le blé va subir au cours de maintes transformations. En effet, on coupe l'épi de blé mûr et, ensuite, on sépare la partie alimentaire de l'écorce en le faisant piétiner par des taureaux. Métaphoriquement, Seth devient donc le bourreau, celui qui abat Osiris, qui le démembre, qui l'enferme et en disperse les morceaux lors des semis.
Esis entre alors en scène, elle accueille les morceaux de son mari port dans le sein de la terre. Grâce au pouvoir de féminin créateur, elle le remembre et lui redonne vie, si bien qu'il reâît pour la prochaine moisson.
10/27/2010
Le Japon, à l’origine d’une course mondiale aux ressources ?
Reuters 12-10-2010
par Natsuko Waki
LONDRES (Reuters) – L’idée qui germe au Japon de consacrer une partie des énormes réserves de change du pays à l’achat de matières premières industrielles est susceptible, si elle est appliquée, de provoquer des bouleversements économiques et financiers.
Le Parti démocrate japonais, actuellement au pouvoir, a proposé la semaine dernière de tirer parti de la vigueur du yen pour investir dans le développement de ressources naturelles à l’étranger, et en particulier dans celui des terres rares, vitales pour l’industrie électronique.
Il a également avancé l’idée de créer un fonds souverain sur le modèle de ceux existant en Chine et à Singapour.
Auquel cas, le Japon deviendrait la première grande puissance économique mondiale à investir une partie de ses réserves de change dans des coentreprises stratégiques, une pratique instaurée par des pays émergents à forte croissance comme le Qatar et la Chine.
Les pays en développement investissent massivement dans les ressources naturelles et agricoles et les pays occidentaux craignent que ces grandes manoeuvres économiques n’aient également des fins politiques.
“L’idée d’un capitalisme d’Etat se répand. C’est parti de la Chine et du Proche-Orient et ça gagne le Japon”, observe Sven Behrendt, du consultant genevois Geoeconomica. “Les réserves de change sont devenues un instrument de pouvoir”.
“Les gouvernements sont plus attentifs et innovants quant aux ressources à leur disposition à des fins d’intérêt national. L’Etat adopte une nouvelle attitude vis-à-vis des marchés internationaux en tant qu’acteur économique lui-même”.
HORS DU DOMAINE PUBLIC
La Chine assure 97% de la production mondiale de terres rares et le Japon achète la moitié environ de cette production mais un différend tenant à des îles contestées en mer de Chine méridionale ont envenimé les relations entre les deux pays.
La tension était montée d’un cran en septembre au moment de l’arrestation par Tokyo d’un capitaine d’un navire de pêche chinois qui était entré en collision avec deux patrouilleurs des garde-côtes japonaise.
Pékin avait suspendu les contacts de haut niveau avec le Japon et des sources proches du secteurs de l’industrie avaient fait état de l’arrêt d’exportations chinoises de métaux rares. Cette information a été démentie par la Chine.
Le contentieux ne s’arrête pas à ces deux pays. Brunei, la Malaisie, les Philippines, Taïwan et le Vietnam revendiquent des parties de la mer de Chine méridionale, potentiellement riche en gaz et en pétrole. La Chine revendique pour sa part la quasi-totalité de la surface maritime par laquelle transite la moitié du tonnage de pétrole mondial.
Le Japon, par ailleurs, n’a jamais possédé autant de dollars, ne serait-ce que par les efforts déployés pour contenir la hausse du yen.
Les fonds souverains gèrent pour les futures générations des revenus annuels de l’ordre de 3.000 milliards de dollars, soit le dixième environ de la capitalisation boursière mondiale.
Suivant les données du consultant spécialisé Monitor, les transactions touchant au charbon, au pétrole et au gaz naturel ont représenté 11,2 milliards de dollars en 2009, soit plus de 16% de la valeur totale des investissements répertoriés des fonds souverains. En 2008, ces transactions avaient totalisé 1,3 milliard de dollars.
Une bonne partie des transactions portant sur les ressources naturelles ou les terres arables se font en dehors du domaine public, ce qui implique que le montant réel est encore supérieur.
SUSPICION CANADIENNE
Pour beaucoup, il n’y a aucun mal à acheter des actifs dans un marché libre et de manière claire. Toutefois, l’élément “souverain” présidant à ces transactions fait craindre à certains une mainmise de certains gouvernements sur des actifs importants d’un point de vue stratégique en général et pour la sécurité nationale en particulier.
Le Canada, ainsi, ne voit pas d’un bon oeil l’intérêt manifesté par les Chinois pour le groupe minier local Potash. Il juge que les entreprises publiques doivent investir pour des motifs uniquement économiques et non pas en tant qu’agent des intérêts de leur gouvernement.
Le fonds souverain chinois CIC et son équivalent singapourien Temasek passent ainsi pour avoir Potash en ligne de mire. Le secteur de la potasse est en effet particulièrement convoité par la Chine, qui cherche à augmenter sa production alimentaire pour subvenir aux besoins de sa population.
CIC ne fait pas mystère de ses cibles: l’énergie, l’agriculture et l’électricité. Il compte investir en particulier en Russie et en Indonésie.
Suivant certains médias, le Venezuela et l’Inde avaient également envisagé de créer un fonds souverain pour se porter acquéreur en commun d’actifs énergétiques dans le monde entier.
Les pays du Golfe étendent pour leur part leurs achats de terres arables, pour s’assurer une sécurité alimentaire, à l’Europe de l’Est et l’Australie.
“Les pays à la source des fonds souverains éprouvent la nécessité de sécuriser le flux des importations alimentaires à des prix raisonnables”, expliquait le sultan bin Nasser al-Suwaidi, gouverneur de la banque centrale des Emirats arabes unis.
Les Nations unies craignent toutefois pour les droits des agriculteurs des pays en développement si les pays riches achètent massivement des surfaces cultivables pour assurer leur sécurité alimentaire.
Michael Power, stratège d’Investec Asset Management, remarque que le Japon était à la pointe des acquisitions de ressources naturelles et énergétiques pilotées par l’Etat au travers de ses conglomérats industriels et financiers d’avant-guerre.
“La bataille pour les ressources naturelle est un problème géo-économique au niveau national. Le Japon se préoccupe à nouveau de la sécurité de ses approvisionnements”, dit-il.
Wilfrid Exbrayat pour le service français, édité par Benoît Van Overstraeten
par Natsuko Waki
LONDRES (Reuters) – L’idée qui germe au Japon de consacrer une partie des énormes réserves de change du pays à l’achat de matières premières industrielles est susceptible, si elle est appliquée, de provoquer des bouleversements économiques et financiers.
Le Parti démocrate japonais, actuellement au pouvoir, a proposé la semaine dernière de tirer parti de la vigueur du yen pour investir dans le développement de ressources naturelles à l’étranger, et en particulier dans celui des terres rares, vitales pour l’industrie électronique.
Il a également avancé l’idée de créer un fonds souverain sur le modèle de ceux existant en Chine et à Singapour.
Auquel cas, le Japon deviendrait la première grande puissance économique mondiale à investir une partie de ses réserves de change dans des coentreprises stratégiques, une pratique instaurée par des pays émergents à forte croissance comme le Qatar et la Chine.
Les pays en développement investissent massivement dans les ressources naturelles et agricoles et les pays occidentaux craignent que ces grandes manoeuvres économiques n’aient également des fins politiques.
“L’idée d’un capitalisme d’Etat se répand. C’est parti de la Chine et du Proche-Orient et ça gagne le Japon”, observe Sven Behrendt, du consultant genevois Geoeconomica. “Les réserves de change sont devenues un instrument de pouvoir”.
“Les gouvernements sont plus attentifs et innovants quant aux ressources à leur disposition à des fins d’intérêt national. L’Etat adopte une nouvelle attitude vis-à-vis des marchés internationaux en tant qu’acteur économique lui-même”.
HORS DU DOMAINE PUBLIC
La Chine assure 97% de la production mondiale de terres rares et le Japon achète la moitié environ de cette production mais un différend tenant à des îles contestées en mer de Chine méridionale ont envenimé les relations entre les deux pays.
La tension était montée d’un cran en septembre au moment de l’arrestation par Tokyo d’un capitaine d’un navire de pêche chinois qui était entré en collision avec deux patrouilleurs des garde-côtes japonaise.
Pékin avait suspendu les contacts de haut niveau avec le Japon et des sources proches du secteurs de l’industrie avaient fait état de l’arrêt d’exportations chinoises de métaux rares. Cette information a été démentie par la Chine.
Le contentieux ne s’arrête pas à ces deux pays. Brunei, la Malaisie, les Philippines, Taïwan et le Vietnam revendiquent des parties de la mer de Chine méridionale, potentiellement riche en gaz et en pétrole. La Chine revendique pour sa part la quasi-totalité de la surface maritime par laquelle transite la moitié du tonnage de pétrole mondial.
Le Japon, par ailleurs, n’a jamais possédé autant de dollars, ne serait-ce que par les efforts déployés pour contenir la hausse du yen.
Les fonds souverains gèrent pour les futures générations des revenus annuels de l’ordre de 3.000 milliards de dollars, soit le dixième environ de la capitalisation boursière mondiale.
Suivant les données du consultant spécialisé Monitor, les transactions touchant au charbon, au pétrole et au gaz naturel ont représenté 11,2 milliards de dollars en 2009, soit plus de 16% de la valeur totale des investissements répertoriés des fonds souverains. En 2008, ces transactions avaient totalisé 1,3 milliard de dollars.
Une bonne partie des transactions portant sur les ressources naturelles ou les terres arables se font en dehors du domaine public, ce qui implique que le montant réel est encore supérieur.
SUSPICION CANADIENNE
Pour beaucoup, il n’y a aucun mal à acheter des actifs dans un marché libre et de manière claire. Toutefois, l’élément “souverain” présidant à ces transactions fait craindre à certains une mainmise de certains gouvernements sur des actifs importants d’un point de vue stratégique en général et pour la sécurité nationale en particulier.
Le Canada, ainsi, ne voit pas d’un bon oeil l’intérêt manifesté par les Chinois pour le groupe minier local Potash. Il juge que les entreprises publiques doivent investir pour des motifs uniquement économiques et non pas en tant qu’agent des intérêts de leur gouvernement.
Le fonds souverain chinois CIC et son équivalent singapourien Temasek passent ainsi pour avoir Potash en ligne de mire. Le secteur de la potasse est en effet particulièrement convoité par la Chine, qui cherche à augmenter sa production alimentaire pour subvenir aux besoins de sa population.
CIC ne fait pas mystère de ses cibles: l’énergie, l’agriculture et l’électricité. Il compte investir en particulier en Russie et en Indonésie.
Suivant certains médias, le Venezuela et l’Inde avaient également envisagé de créer un fonds souverain pour se porter acquéreur en commun d’actifs énergétiques dans le monde entier.
Les pays du Golfe étendent pour leur part leurs achats de terres arables, pour s’assurer une sécurité alimentaire, à l’Europe de l’Est et l’Australie.
“Les pays à la source des fonds souverains éprouvent la nécessité de sécuriser le flux des importations alimentaires à des prix raisonnables”, expliquait le sultan bin Nasser al-Suwaidi, gouverneur de la banque centrale des Emirats arabes unis.
Les Nations unies craignent toutefois pour les droits des agriculteurs des pays en développement si les pays riches achètent massivement des surfaces cultivables pour assurer leur sécurité alimentaire.
Michael Power, stratège d’Investec Asset Management, remarque que le Japon était à la pointe des acquisitions de ressources naturelles et énergétiques pilotées par l’Etat au travers de ses conglomérats industriels et financiers d’avant-guerre.
“La bataille pour les ressources naturelle est un problème géo-économique au niveau national. Le Japon se préoccupe à nouveau de la sécurité de ses approvisionnements”, dit-il.
Wilfrid Exbrayat pour le service français, édité par Benoît Van Overstraeten
Saudi Arabian company to invest $100m in agriculture in Katsina
Nigerian Compass | 22 June 2010
A SAUDI Arabian company, Foras International Investment Company, plans to invest $100 million in the agricultural sector in Katsina State.
A representative of the company, Mr Salim Lalani, made the announcement yesterday in Katsina while briefing newsmen shortly after signing a Memorandum of Understanding (MoU) with the state government.
He said that the company might go beyond the investment capital in the agricultural sector, depending on the potential on the ground.
Lalani said the company would develop large hectares of land to be provided by government to grow specific crops, which would be of interest to both the company, government and people of the state.
He said he and other officials of the company were in the state at the instance of the government, and that the company would use its experts from Australia and Asia to grow crops that would be of benefit to the people.
The Special Adviser to the Governor on Resource Development, Alhaji Musa Na-Shuni, said that under the MoU, the state would provide 1,000 hectares of land to the company.
He said the state governments would also provide other logistic support to boost the company’s investment in the agricultural sector.
The MoU also covers housing and development of infrastructure, in which the company may invest 160 million dollars and 100 million dollars respectively.
Na-Shuni signed the MoU on behalf of the government, while Lalani signed for Foras International Investment Company.
A SAUDI Arabian company, Foras International Investment Company, plans to invest $100 million in the agricultural sector in Katsina State.
A representative of the company, Mr Salim Lalani, made the announcement yesterday in Katsina while briefing newsmen shortly after signing a Memorandum of Understanding (MoU) with the state government.
He said that the company might go beyond the investment capital in the agricultural sector, depending on the potential on the ground.
Lalani said the company would develop large hectares of land to be provided by government to grow specific crops, which would be of interest to both the company, government and people of the state.
He said he and other officials of the company were in the state at the instance of the government, and that the company would use its experts from Australia and Asia to grow crops that would be of benefit to the people.
The Special Adviser to the Governor on Resource Development, Alhaji Musa Na-Shuni, said that under the MoU, the state would provide 1,000 hectares of land to the company.
He said the state governments would also provide other logistic support to boost the company’s investment in the agricultural sector.
The MoU also covers housing and development of infrastructure, in which the company may invest 160 million dollars and 100 million dollars respectively.
Na-Shuni signed the MoU on behalf of the government, while Lalani signed for Foras International Investment Company.
Prime farmland in Argentina costs almost as much as in United States
MercoPress | 21 October 2010
Prices for the best farmland in Argentina’s breadbasket, the humid Pampa have risen on average 10% this year according to registered operations reports. This means the hectare of prime agriculture land in Argentina now costs almost the same as the average price of farmland in the state of Illinois, 14.000 US dollars.
“Prices are very strong, it’s a bull market. Farmland for agriculture which is the most demanded average 14.000 US dollars the hectare in the corn hard core region, while land in the periphery of that core are in the range of 8.000 to 10.000 US dollars the hectare”, said Luis Clucellas from Bullrich Campos, one of the main companies in the business.
“Currently a hectare of some of the best farmland ranges 13.000 to 14.000 US dollars but can also reach 15.000 US dollars, which is the average price for farmland in the state of Illinois at the heart of the corn belt”, added Clucellas.
Overall the companies involved in selling Argentine farmland agree that demand remains higher than supply, but also point out to the fact that there has been a slight increase in land for sale.
Furthermore the market has yet to recover the enthusiasm and sales peak previous to the 2008 drought and the farmers’ conflict with the Argentine government over export taxes on grains and oilseeds.
Nevertheless there is a growing interest from buyers, a greater number of requests to visit potential acquisitions and the best farmland is specifically targeted.
“This has had an influence on the price of farmland, together with the recovery of grain and oilseed prices plus prospects that land remains a good investment option, given the anticipated increasing demand for food world-wide in coming years. In this context the market is more active than at the beginning of the year”, said Mariano Maurete from Alzaga Unzué and Co.
“We see a more active atmosphere, although I wouldn’t say prices have risen, but rather that they are as high as they were back in 2008; if any increase it was not above 10%”, he added.
Eduardo FitzGerald from Compañía Argentina de Tierras said the market is more active and if buyers find good quality farmland they are ready to pay, “although maybe not as much as the owner would like”.
Good farmland prices have risen 10% to 15% compared to 2009, but other lesser quality camps, half agriculture, half livestock, “owners are more prepared to talk and negotiate”. Demand is not desperate, however when it’s good farmland, “there is an interest” said Fitz Gerald.
For Marcos Lanusse an advisor in camp transactions “overall the market remains strong and stable regarding prices, with a slight increase in very specific cases such as land not further than 100 kilometres from Buenos Aires City or marginal farmland with good development potential”.
Lanusse said that when there have been price increases “they have not gone further than 10% to 15% compared to last year. Market seems to have grown in volume and number of deals, but the fact is there is not much prime farmland for sale, and there are investors on the lookout considering options”.
But, who is buying land in Argentina? According to Lanusse most are locals, and when foreigners, in very specific cases.
On the other hand farm policies implemented by the Argentina government have meant that many investment funds which originally considered Argentina as an option, “have finally decided to move to Uruguay and Brazil and in second place to Bolivia and Paraguay”.
Prices for the best farmland in Argentina’s breadbasket, the humid Pampa have risen on average 10% this year according to registered operations reports. This means the hectare of prime agriculture land in Argentina now costs almost the same as the average price of farmland in the state of Illinois, 14.000 US dollars.
“Prices are very strong, it’s a bull market. Farmland for agriculture which is the most demanded average 14.000 US dollars the hectare in the corn hard core region, while land in the periphery of that core are in the range of 8.000 to 10.000 US dollars the hectare”, said Luis Clucellas from Bullrich Campos, one of the main companies in the business.
“Currently a hectare of some of the best farmland ranges 13.000 to 14.000 US dollars but can also reach 15.000 US dollars, which is the average price for farmland in the state of Illinois at the heart of the corn belt”, added Clucellas.
Overall the companies involved in selling Argentine farmland agree that demand remains higher than supply, but also point out to the fact that there has been a slight increase in land for sale.
Furthermore the market has yet to recover the enthusiasm and sales peak previous to the 2008 drought and the farmers’ conflict with the Argentine government over export taxes on grains and oilseeds.
Nevertheless there is a growing interest from buyers, a greater number of requests to visit potential acquisitions and the best farmland is specifically targeted.
“This has had an influence on the price of farmland, together with the recovery of grain and oilseed prices plus prospects that land remains a good investment option, given the anticipated increasing demand for food world-wide in coming years. In this context the market is more active than at the beginning of the year”, said Mariano Maurete from Alzaga Unzué and Co.
“We see a more active atmosphere, although I wouldn’t say prices have risen, but rather that they are as high as they were back in 2008; if any increase it was not above 10%”, he added.
Eduardo FitzGerald from Compañía Argentina de Tierras said the market is more active and if buyers find good quality farmland they are ready to pay, “although maybe not as much as the owner would like”.
Good farmland prices have risen 10% to 15% compared to 2009, but other lesser quality camps, half agriculture, half livestock, “owners are more prepared to talk and negotiate”. Demand is not desperate, however when it’s good farmland, “there is an interest” said Fitz Gerald.
For Marcos Lanusse an advisor in camp transactions “overall the market remains strong and stable regarding prices, with a slight increase in very specific cases such as land not further than 100 kilometres from Buenos Aires City or marginal farmland with good development potential”.
Lanusse said that when there have been price increases “they have not gone further than 10% to 15% compared to last year. Market seems to have grown in volume and number of deals, but the fact is there is not much prime farmland for sale, and there are investors on the lookout considering options”.
But, who is buying land in Argentina? According to Lanusse most are locals, and when foreigners, in very specific cases.
On the other hand farm policies implemented by the Argentina government have meant that many investment funds which originally considered Argentina as an option, “have finally decided to move to Uruguay and Brazil and in second place to Bolivia and Paraguay”.
Fonds d’investissement agricole: de la terre dans le portefeuille
Fonds d’investissement agricole: de la terre dans le portefeuillePublié le 25 octobre 2010 à 06h15 | Mis à jour le 25 octobre 2010 à 06h15* Taille du texte* Imprimer* Envoyer*À lire aussi* Nouvelles règles: les banques canadiennes en bonne posture* Fin d’année anxieuse pour les détaillants en Bourse* Les profits seront au rendez-vous au troisième trimestre* Les Québécois n’épargnent pas trop pour la retraite, dit la RRQ* L’univers des fonds beaux, bons, pas chersSur le même thème* Bourse de Toronto* Cadillac* Twitter* Courtage d’actions* InvestissementsDu même auteur* Fonds d’investissement agricole: de la terre dans le portefeuille* La porcherie dont personne ne voulait* Relations publiques: l’industrie minière fourbit ses armes* Projet de loi 79: les mines échapperont encore aux municipalités* Les Canadiens perdent confiance«On pense que les terres agricoles représentent de… (Photothèque Le Soleil)AgrandirPhotothèque Le Soleil«On pense que les terres agricoles représentent de très bons actifs pour les investissements à long terme et qu’elles génèrent des rendements intéressants avec peu de volatilité», soutient Guillaume Poulin, banquier d’affaires et avocat.*Hugo FontaineLa Presse(Montréal) Des actions échangées à Toronto et des obligations américaines, certes. Et pourquoi pas quelques parcelles de terres agricoles de Saint-Narcisse pour compléter votre portefeuille? C’est ce que propose Agriterra, nouvelle société de Trois-Rivières, avec un premier fonds d’investissement québécois consacré aux terres agricoles.> Suivez Hugo Fontaine sur TwitterL’idée d’Agriterra est née quand Guillaume Poulin, banquier d’affaires et avocat, discutait Bourse avec son beau-père Roger Gauthier, qui dirige une entreprise de distribution de fertilisants. «Roger me disait que ses terres agricoles avaient toujours représenté son meilleur rendement», raconte Guillaume Poulin.Depuis 1996, la valeur des terres agricoles au Québec a doublé. La valeur a augmenté chaque année, sauf de 2003 à 2005. Dans la période de 10 ans terminée le 31 décembre 2009, les terres agricoles ont rapporté un rendement annuel composé de 6%, contre 3,4% pour le S&P/TSX.«On pense que les terres agricoles représentent de très bons actifs pour les investissements à long terme et qu’elles génèrent des rendements intéressants avec peu de volatilité, soutient Guillaume Poulin. On veut offrir cette possibilité d’investissement à des gens qui ne sont pas du milieu agricole.»Agriterra a déjà acheté une première terre, à Saint-Narcisse, en Mauricie. Et il ne devrait pas être trop difficile d’en dénicher d’autres, affirme Roger Gauthier. Avant même qu’il soit question du fonds, on lui offrait d’acheter une terre par mois, raconte-t-il.«Mais je ne vais pas acheter de bazou, je veux un Cadillac. J’ai des critères de sélection sévères. Je veux des terres rentables, pour que les gens soient intéressés à louer.»Agriterra louera les terres qu’elle possède et redistribuera les revenus de location aux porteurs de parts. Selon Guillaume Poulin, les loyers annuels sont de 2,5% à 4,5% de la valeur de la terre.Le fonds sera liquidé après cinq, sept ou neuf ans, selon la volonté des investisseurs, pour profiter de la hausse des valeurs.Réticence de l’UPAL’Union des producteurs agricoles (UPA) affiche une certaine réticence par rapport à l’arrivée de cette première société d’investissement. Le syndicat craint la spéculation et s’inquiète de la hausse des prix des terres. «Il y a donc lieu d’être extrêmement vigilant, la souveraineté alimentaire s’appuyant notamment sur l’accès à des terres agricoles fertiles et exploitées par des producteurs-propriétaires qui les cultivent pour leurs concitoyens», souligne l’UPA.Mais les dirigeants d’Agriterra se défendent de faire de la spéculation, étant donné qu’ils garderont les terres pour un minimum de cinq ans. Ils croient aussi que le fonds pourra aider certains producteurs.«J’ai sur mon bureau le dossier d’un producteur qui a acheté une terre, mais qui n’a plus les moyens de payer, raconte Roger Gauthier. On va acheter la terre et la lui louer, on va lui donner de l’oxygène en diminuant sa dette et augmenter ses liquidités.» Il perdra l’augmentation éventuelle de la valeur de sa terre, «mais au moins il ne terminera pas en faillite pour ensuite rendre sa terre à la banque».Agriterra estime aussi que les jeunes agriculteurs, incapables d’acheter des terres déjà trop chères, pourraient également être intéressés à la location d’une terre, avec une option d’achat au bout du bail.Agriterra tente actuellement d’intéresser les courtiers en valeurs mobilières au projet.L’objectif est de rassembler 3 à 5 millions de dollars dans les trois premières années, puis, si tout va bien, 10 millions au bout de cinq ans. «On ne veut pas aller trop vite, on veut pouvoir bien investir les fonds qu’on va recueillir», dit Guillaume Poulin.Il y a de moins en moins de terres agricoles pour une demande mondiale toujours plus forte, ce qui fait grimper la valeur des terres. Chaque investissement a toutefois sa part de risques. Si de nouvelles technologies provoquaient un bond substantiel de la productivité dans les 10 ou 15 prochaines années, note M. Poulin, chaque lot deviendrait un peu moins essentiel et sa valeur diminuerait.Partager «On pense que les terres agricoles représentent de très bons actifs pour les investissements à long terme et qu'elles génèrent des rendements intéressants avec peu de volatilité», soutient Guillaume Poulin, banquier d'affaires et avocat. (Photothèque Le Soleil)
La Presse Affaires | le 25 octobre 2010
Hugo Fontaine
La Presse
(Montréal) Des actions échangées à Toronto et des obligations américaines, certes. Et pourquoi pas quelques parcelles de terres agricoles de Saint-Narcisse pour compléter votre portefeuille? C’est ce que propose Agriterra, nouvelle société de Trois-Rivières, avec un premier fonds d’investissement québécois consacré aux terres agricoles.
L’idée d’Agriterra est née quand Guillaume Poulin, banquier d’affaires et avocat, discutait Bourse avec son beau-père Roger Gauthier, qui dirige une entreprise de distribution de fertilisants. «Roger me disait que ses terres agricoles avaient toujours représenté son meilleur rendement», raconte Guillaume Poulin.
Depuis 1996, la valeur des terres agricoles au Québec a doublé. La valeur a augmenté chaque année, sauf de 2003 à 2005. Dans la période de 10 ans terminée le 31 décembre 2009, les terres agricoles ont rapporté un rendement annuel composé de 6%, contre 3,4% pour le S&P/TSX.
«On pense que les terres agricoles représentent de très bons actifs pour les investissements à long terme et qu’elles génèrent des rendements intéressants avec peu de volatilité, soutient Guillaume Poulin. On veut offrir cette possibilité d’investissement à des gens qui ne sont pas du milieu agricole.»
Agriterra a déjà acheté une première terre, à Saint-Narcisse, en Mauricie. Et il ne devrait pas être trop difficile d’en dénicher d’autres, affirme Roger Gauthier. Avant même qu’il soit question du fonds, on lui offrait d’acheter une terre par mois, raconte-t-il.
«Mais je ne vais pas acheter de bazou, je veux un Cadillac. J’ai des critères de sélection sévères. Je veux des terres rentables, pour que les gens soient intéressés à louer.»
Agriterra louera les terres qu’elle possède et redistribuera les revenus de location aux porteurs de parts. Selon Guillaume Poulin, les loyers annuels sont de 2,5% à 4,5% de la valeur de la terre.
Le fonds sera liquidé après cinq, sept ou neuf ans, selon la volonté des investisseurs, pour profiter de la hausse des valeurs.
Réticence de l’UPA
L’Union des producteurs agricoles (UPA) affiche une certaine réticence par rapport à l’arrivée de cette première société d’investissement. Le syndicat craint la spéculation et s’inquiète de la hausse des prix des terres. «Il y a donc lieu d’être extrêmement vigilant, la souveraineté alimentaire s’appuyant notamment sur l’accès à des terres agricoles fertiles et exploitées par des producteurs-propriétaires qui les cultivent pour leurs concitoyens», souligne l’UPA.
Mais les dirigeants d’Agriterra se défendent de faire de la spéculation, étant donné qu’ils garderont les terres pour un minimum de cinq ans. Ils croient aussi que le fonds pourra aider certains producteurs.
«J’ai sur mon bureau le dossier d’un producteur qui a acheté une terre, mais qui n’a plus les moyens de payer, raconte Roger Gauthier. On va acheter la terre et la lui louer, on va lui donner de l’oxygène en diminuant sa dette et augmenter ses liquidités.» Il perdra l’augmentation éventuelle de la valeur de sa terre, «mais au moins il ne terminera pas en faillite pour ensuite rendre sa terre à la banque».
Agriterra estime aussi que les jeunes agriculteurs, incapables d’acheter des terres déjà trop chères, pourraient également être intéressés à la location d’une terre, avec une option d’achat au bout du bail.
Agriterra tente actuellement d’intéresser les courtiers en valeurs mobilières au projet.
L’objectif est de rassembler 3 à 5 millions de dollars dans les trois premières années, puis, si tout va bien, 10 millions au bout de cinq ans. «On ne veut pas aller trop vite, on veut pouvoir bien investir les fonds qu’on va recueillir», dit Guillaume Poulin.
Il y a de moins en moins de terres agricoles pour une demande mondiale toujours plus forte, ce qui fait grimper la valeur des terres. Chaque investissement a toutefois sa part de risques. Si de nouvelles technologies provoquaient un bond substantiel de la productivité dans les 10 ou 15 prochaines années, note M. Poulin, chaque lot deviendrait un peu moins essentiel et sa valeur diminuerait.
La Presse Affaires | le 25 octobre 2010
Hugo Fontaine
La Presse
(Montréal) Des actions échangées à Toronto et des obligations américaines, certes. Et pourquoi pas quelques parcelles de terres agricoles de Saint-Narcisse pour compléter votre portefeuille? C’est ce que propose Agriterra, nouvelle société de Trois-Rivières, avec un premier fonds d’investissement québécois consacré aux terres agricoles.
L’idée d’Agriterra est née quand Guillaume Poulin, banquier d’affaires et avocat, discutait Bourse avec son beau-père Roger Gauthier, qui dirige une entreprise de distribution de fertilisants. «Roger me disait que ses terres agricoles avaient toujours représenté son meilleur rendement», raconte Guillaume Poulin.
Depuis 1996, la valeur des terres agricoles au Québec a doublé. La valeur a augmenté chaque année, sauf de 2003 à 2005. Dans la période de 10 ans terminée le 31 décembre 2009, les terres agricoles ont rapporté un rendement annuel composé de 6%, contre 3,4% pour le S&P/TSX.
«On pense que les terres agricoles représentent de très bons actifs pour les investissements à long terme et qu’elles génèrent des rendements intéressants avec peu de volatilité, soutient Guillaume Poulin. On veut offrir cette possibilité d’investissement à des gens qui ne sont pas du milieu agricole.»
Agriterra a déjà acheté une première terre, à Saint-Narcisse, en Mauricie. Et il ne devrait pas être trop difficile d’en dénicher d’autres, affirme Roger Gauthier. Avant même qu’il soit question du fonds, on lui offrait d’acheter une terre par mois, raconte-t-il.
«Mais je ne vais pas acheter de bazou, je veux un Cadillac. J’ai des critères de sélection sévères. Je veux des terres rentables, pour que les gens soient intéressés à louer.»
Agriterra louera les terres qu’elle possède et redistribuera les revenus de location aux porteurs de parts. Selon Guillaume Poulin, les loyers annuels sont de 2,5% à 4,5% de la valeur de la terre.
Le fonds sera liquidé après cinq, sept ou neuf ans, selon la volonté des investisseurs, pour profiter de la hausse des valeurs.
Réticence de l’UPA
L’Union des producteurs agricoles (UPA) affiche une certaine réticence par rapport à l’arrivée de cette première société d’investissement. Le syndicat craint la spéculation et s’inquiète de la hausse des prix des terres. «Il y a donc lieu d’être extrêmement vigilant, la souveraineté alimentaire s’appuyant notamment sur l’accès à des terres agricoles fertiles et exploitées par des producteurs-propriétaires qui les cultivent pour leurs concitoyens», souligne l’UPA.
Mais les dirigeants d’Agriterra se défendent de faire de la spéculation, étant donné qu’ils garderont les terres pour un minimum de cinq ans. Ils croient aussi que le fonds pourra aider certains producteurs.
«J’ai sur mon bureau le dossier d’un producteur qui a acheté une terre, mais qui n’a plus les moyens de payer, raconte Roger Gauthier. On va acheter la terre et la lui louer, on va lui donner de l’oxygène en diminuant sa dette et augmenter ses liquidités.» Il perdra l’augmentation éventuelle de la valeur de sa terre, «mais au moins il ne terminera pas en faillite pour ensuite rendre sa terre à la banque».
Agriterra estime aussi que les jeunes agriculteurs, incapables d’acheter des terres déjà trop chères, pourraient également être intéressés à la location d’une terre, avec une option d’achat au bout du bail.
Agriterra tente actuellement d’intéresser les courtiers en valeurs mobilières au projet.
L’objectif est de rassembler 3 à 5 millions de dollars dans les trois premières années, puis, si tout va bien, 10 millions au bout de cinq ans. «On ne veut pas aller trop vite, on veut pouvoir bien investir les fonds qu’on va recueillir», dit Guillaume Poulin.
Il y a de moins en moins de terres agricoles pour une demande mondiale toujours plus forte, ce qui fait grimper la valeur des terres. Chaque investissement a toutefois sa part de risques. Si de nouvelles technologies provoquaient un bond substantiel de la productivité dans les 10 ou 15 prochaines années, note M. Poulin, chaque lot deviendrait un peu moins essentiel et sa valeur diminuerait.
India Billionaires Go On Buying Spree in `Last Frontier’ Africa
Bloomberg | 24 October 2010
Sai Ramakrishna Karuturi, founder and managing director of Karuturi Global Ltd. Photographer: John Sommers II/Bloomberg
By Mehul Srivastava and Subramaniam Sharma
Indian billionaire Ravi Ruia flew to Africa every month for the past 18 months, buying coal mines in Mozambique, half an oil refinery in Kenya and a call center in South Africa for his Essar Group.
This month, executives of his Essar Energy Plc. attended a conference hosted by Nigerian President Goodluck Jonathan to attract investors in the power grid. The officials, backed by $2 billion the company raised in an April listing on the London Stock Exchange, also mulled other “business opportunities” around Africa, the company said.
Ruia, who controls the $15 billion Essar Group with his older brother, Shashi, is not alone. Billionaire countrymen Sunil Mittal, chairman of India’s largest mobile phone provider, Bharti Airtel Ltd.; Adi Godrej, chairman of Godrej Consumer Products Ltd.; and Harsh Mariwala, founder of Marico Ltd., have fueled a $15.8 billion buying spree in Africa since January 2005.
“Africa looks remarkably similar to what India was 15 years ago,” said Firdhose Coovadia, director of Essar’s African operations. “We can’t lose this opportunity to replicate the low-cost, high-volume model we’ve perfected in India.”
‘Last Frontier’
Indian companies acquired or invested in at least 79 companies in Africa, chasing business in less crowded markets after growing in a home economy that expanded by an average 8.5 percent since April 2005.
Africa’s gross domestic product expanded 4.9 percent a year from 2000 to 2008, McKinsey & Co. said in a June report. The continent’s GDP will rise to $2.6 trillion by 2020 from $1.6 trillion in 2008.
Consumer spending may double to as much as $1.8 trillion by 2020 as infrastructure is built and farm output increases, the report said. That is the equivalent of adding a consumer market the size of Brazil.
“Africa is seen by the investing community as the last frontier,” said Walter Rossini, who manages $330 million in an India fund at Aletti Gestielle Sgr Spa in Milan. “There is a higher risk, but then there is greater reward if the political situation remains stable over the next 10 years.”
Africa is new territory for Bharti, which paid $9 billion in June for mobile phone operations in 15 countries and will rebrand them by year’s end.
500 Million Roses
This month, Bharti executives sought advice at the Kenya offices of Bangalore-based Karuturi Global Ltd., the world’s largest rose-grower. Sai Ramakrishna Karuturi, the managing director, said Africa is driving his company’s success.
Six years ago, as he struggled to compete against flower growers in Africa and Europe with lower freight costs and larger tracts of land, he bought a small plot in Ethiopia. Sales since have grown 11-fold to $112.7 million in the fiscal year that ended March 31.
He leases 311,000 hectares of land — larger than the U.S. state of Rhode Island — in Ethiopia and Kenya, and his company sells more than half-a-billion roses a year.
“I got in on the ground floor, others got in on the second floor, but there’s a lot of floors left to go in Africa’s economic cycle,” Karuturi said. “Africa offered us a scale we could never reach in India.”
26 Deals
Indian acquisitions in Africa peaked in 2008, when companies closed 26 deals worth $3.1 billion. Those include the state-run Indian Farmers Fertiliser Cooperative Ltd.’s $721 million purchase of Industries Chimiques du Senegal, an idle phosphates producer that once was the country’s largest industrial plant. New York-based Ernst & Young LLP handled 11 deals since 2005.
“We are seeing Indian companies look at Africa in a major way,” said Anuj Chande, the London-based head of the South Asia Group at advisory and accounting firm Grant Thornton U.K. LLP. “Compared to India, valuations are quite attractive. We’re expecting to see a lot of midsize deals across a variety of sectors.”
Apollo Tyres Ltd., India’s second-biggest tiremaker by market value, bought Durban, South Africa-based Dunlop Tyres International Pty for $62 million in April 2006. That gave Gurgaon-based Apollo two manufacturing plants and a retreading unit in South Africa and Zimbabwe, and brand rights to 32 African countries.
‘Tata, Ambani’
“If tomorrow the Indian economy was to take a U-turn, then at least you have other markets which are growing,” said Neeraj Kanwar, Apollo’s vice-chairman and managing director. “I can’t survive on the Indian market alone.”
The company aims to triple sales to $6 billion in five years, with 60 percent of revenue coming from outside India. In the fiscal year that ended March 31, 62 percent of its $1.7 billion in sales came from India.
Adi Godrej bought a hair-color company in South Africa and a soap and body-lotion maker in Nigeria. His Mumbai-based Godrej Consumer Products gets 23 percent of its total sales outside India, including Africa.
Marico paid 520 million India rupees ($12 million) to buy the consumer division of Durban-based Enaleni Pharmaceuticals Consumer Division (Pty) Ltd. in October 2007. Two months ago, it bought South African health-care brand Ingwe for an undisclosed price.
Dabur India Ltd. started shopping on the continent in 2004, when it bought a hair-care brand in Egypt and then a Nigerian cosmetics company.
“We need to now seek avenues of growth outside of India because India’s becoming saturated and hugely competitive,” Dabur Chief Executive Officer Sunil Duggal said.
One reason why smaller Indian companies ventured into Africa is that their budgets still attract attention in countries trying to woo foreign investors, Karuturi said.
“I am not even a fly on the wall in India, but in Ethiopia I am the largest investor, the second-largest employer after the government,” said Karuturi, whose company owns professional soccer and volleyball teams. “To do that in India, you have to be a Tata or an Ambani.”
To contact the reporters on this story: Mehul Srivastava in Mumbai at msrivastava6@bloomberg.net; Subramaniam Sharma in New Delhi at ssharma@bloomberg.net.
To contact the editor responsible for this story: Bret Okeson at bokeson@bloomberg.net.
Sai Ramakrishna Karuturi, founder and managing director of Karuturi Global Ltd. Photographer: John Sommers II/Bloomberg
By Mehul Srivastava and Subramaniam Sharma
Indian billionaire Ravi Ruia flew to Africa every month for the past 18 months, buying coal mines in Mozambique, half an oil refinery in Kenya and a call center in South Africa for his Essar Group.
This month, executives of his Essar Energy Plc. attended a conference hosted by Nigerian President Goodluck Jonathan to attract investors in the power grid. The officials, backed by $2 billion the company raised in an April listing on the London Stock Exchange, also mulled other “business opportunities” around Africa, the company said.
Ruia, who controls the $15 billion Essar Group with his older brother, Shashi, is not alone. Billionaire countrymen Sunil Mittal, chairman of India’s largest mobile phone provider, Bharti Airtel Ltd.; Adi Godrej, chairman of Godrej Consumer Products Ltd.; and Harsh Mariwala, founder of Marico Ltd., have fueled a $15.8 billion buying spree in Africa since January 2005.
“Africa looks remarkably similar to what India was 15 years ago,” said Firdhose Coovadia, director of Essar’s African operations. “We can’t lose this opportunity to replicate the low-cost, high-volume model we’ve perfected in India.”
‘Last Frontier’
Indian companies acquired or invested in at least 79 companies in Africa, chasing business in less crowded markets after growing in a home economy that expanded by an average 8.5 percent since April 2005.
Africa’s gross domestic product expanded 4.9 percent a year from 2000 to 2008, McKinsey & Co. said in a June report. The continent’s GDP will rise to $2.6 trillion by 2020 from $1.6 trillion in 2008.
Consumer spending may double to as much as $1.8 trillion by 2020 as infrastructure is built and farm output increases, the report said. That is the equivalent of adding a consumer market the size of Brazil.
“Africa is seen by the investing community as the last frontier,” said Walter Rossini, who manages $330 million in an India fund at Aletti Gestielle Sgr Spa in Milan. “There is a higher risk, but then there is greater reward if the political situation remains stable over the next 10 years.”
Africa is new territory for Bharti, which paid $9 billion in June for mobile phone operations in 15 countries and will rebrand them by year’s end.
500 Million Roses
This month, Bharti executives sought advice at the Kenya offices of Bangalore-based Karuturi Global Ltd., the world’s largest rose-grower. Sai Ramakrishna Karuturi, the managing director, said Africa is driving his company’s success.
Six years ago, as he struggled to compete against flower growers in Africa and Europe with lower freight costs and larger tracts of land, he bought a small plot in Ethiopia. Sales since have grown 11-fold to $112.7 million in the fiscal year that ended March 31.
He leases 311,000 hectares of land — larger than the U.S. state of Rhode Island — in Ethiopia and Kenya, and his company sells more than half-a-billion roses a year.
“I got in on the ground floor, others got in on the second floor, but there’s a lot of floors left to go in Africa’s economic cycle,” Karuturi said. “Africa offered us a scale we could never reach in India.”
26 Deals
Indian acquisitions in Africa peaked in 2008, when companies closed 26 deals worth $3.1 billion. Those include the state-run Indian Farmers Fertiliser Cooperative Ltd.’s $721 million purchase of Industries Chimiques du Senegal, an idle phosphates producer that once was the country’s largest industrial plant. New York-based Ernst & Young LLP handled 11 deals since 2005.
“We are seeing Indian companies look at Africa in a major way,” said Anuj Chande, the London-based head of the South Asia Group at advisory and accounting firm Grant Thornton U.K. LLP. “Compared to India, valuations are quite attractive. We’re expecting to see a lot of midsize deals across a variety of sectors.”
Apollo Tyres Ltd., India’s second-biggest tiremaker by market value, bought Durban, South Africa-based Dunlop Tyres International Pty for $62 million in April 2006. That gave Gurgaon-based Apollo two manufacturing plants and a retreading unit in South Africa and Zimbabwe, and brand rights to 32 African countries.
‘Tata, Ambani’
“If tomorrow the Indian economy was to take a U-turn, then at least you have other markets which are growing,” said Neeraj Kanwar, Apollo’s vice-chairman and managing director. “I can’t survive on the Indian market alone.”
The company aims to triple sales to $6 billion in five years, with 60 percent of revenue coming from outside India. In the fiscal year that ended March 31, 62 percent of its $1.7 billion in sales came from India.
Adi Godrej bought a hair-color company in South Africa and a soap and body-lotion maker in Nigeria. His Mumbai-based Godrej Consumer Products gets 23 percent of its total sales outside India, including Africa.
Marico paid 520 million India rupees ($12 million) to buy the consumer division of Durban-based Enaleni Pharmaceuticals Consumer Division (Pty) Ltd. in October 2007. Two months ago, it bought South African health-care brand Ingwe for an undisclosed price.
Dabur India Ltd. started shopping on the continent in 2004, when it bought a hair-care brand in Egypt and then a Nigerian cosmetics company.
“We need to now seek avenues of growth outside of India because India’s becoming saturated and hugely competitive,” Dabur Chief Executive Officer Sunil Duggal said.
One reason why smaller Indian companies ventured into Africa is that their budgets still attract attention in countries trying to woo foreign investors, Karuturi said.
“I am not even a fly on the wall in India, but in Ethiopia I am the largest investor, the second-largest employer after the government,” said Karuturi, whose company owns professional soccer and volleyball teams. “To do that in India, you have to be a Tata or an Ambani.”
To contact the reporters on this story: Mehul Srivastava in Mumbai at msrivastava6@bloomberg.net; Subramaniam Sharma in New Delhi at ssharma@bloomberg.net.
To contact the editor responsible for this story: Bret Okeson at bokeson@bloomberg.net.
10/19/2010
U.S. Forestry Firm Launches European Hedge Fund
Oct 19 2010 | 1:44am ET
Forestry investment firm Timberland Investment Resources has launched a European timber hedge fund.
Timberland Investment Resources Europe will offer British and other European investors access to the increasingly popular timber asset class. The new London-based subsidiary is still awaiting Financial Services Authority approval.
The fund will invest in timber resources in Europe, the U.S. and Latin America.
"The forestry asset class is gaining prominence globally because of its history of outstanding performance and its demonstrated ability to serve as a portfolio diversifier and inflation hedge," TIR founder Tom Johnson said. "We intend to make these unique attributes more accessible to European investors by offering them investments designed to meet their long-term objectives."
The new European unit is headed by managing partners Hugh Humfrey and Gian Paolo Potsios, bother formerly of Arch Financial Products
Forestry investment firm Timberland Investment Resources has launched a European timber hedge fund.
Timberland Investment Resources Europe will offer British and other European investors access to the increasingly popular timber asset class. The new London-based subsidiary is still awaiting Financial Services Authority approval.
The fund will invest in timber resources in Europe, the U.S. and Latin America.
"The forestry asset class is gaining prominence globally because of its history of outstanding performance and its demonstrated ability to serve as a portfolio diversifier and inflation hedge," TIR founder Tom Johnson said. "We intend to make these unique attributes more accessible to European investors by offering them investments designed to meet their long-term objectives."
The new European unit is headed by managing partners Hugh Humfrey and Gian Paolo Potsios, bother formerly of Arch Financial Products
10/14/2010
Les mystères de la ruée vers l’or vert africain
Jeune Afrique | 08/10/2010
Par Michael Pauron
La ruée des pays et des groupes étrangers vers l’or vert africain inquiète experts et ONG. Reste que le phénomène est difficilement quantifiable, nombre d’annonces d’accords n’étant pas suivies d’effet.
Alem a trouvé du travail depuis peu. Ce paysan éthiopien qui avait du mal à joindre les deux bouts avec son lopin de terre gagne désormais 1 euro par jour pour travailler sur les 300 000 ha du groupe indien agroalimentaire Karuturi. Maïs, riz, palmier à huile… L’arrivée des investisseurs indiens dans les plaines verdoyantes de la rivière Tekezé, dans le nord du pays, n’est pas le fruit du hasard.
L’Éthiopie est un promoteur actif : elle aurait déjà cédé 1,2 million d’hectares, selon la Banque mondiale. « Nous sommes les moins chers et les plus compétitifs », se vantent même les autorités, espérant convaincre les investisseurs de ne pas dépenser leurs dollars ailleurs. Tout comme le Soudan voisin, concurrent sérieux qui affiche presque 4 millions d’hectares de terres déjà vendues ou louées.
Les porteurs de projets n’ont pas fini d’affluer sur le continent. Ils sont asiatiques, saoudiens, maghrébins, européens, américains, privés ou étatiques, et lorgnent plus de 200 millions d’hectares cultivables et disponibles en Afrique, sur 445,6 millions dans le monde.
Mozambique, Bénin, Nigeria, Mali… Combien de terres ont déjà été acquises sur le continent ? Ce qui fait la une des journaux et qui, au nom du droit au sol des populations, anime les passions, locales et internationales, est invérifiable. Selon l’International Food Policy Research Institute (Ifpri), il s’agirait de 9 millions d’hectares depuis 2006. « On ne connaît pas la réalité », assure pour sa part Bernard Bachelier, directeur de la Fondation pour l’agriculture et la ruralité dans le monde (Farm). « Il y a beaucoup d’effets d’annonce », poursuit-il. La Banque mondiale, dans son rapport publié le 7 septembre (« Rising Global Interest in Farmland »), estime qu’à la fin de 2009 ces annonces ont concerné plus de 30 millions d’hectares. Mais « dans de nombreux cas, les accords annoncés n’ont jamais vu le jour », explique l’institution.
Manque de transparence
« Il y a d’abord la volonté des opérateurs et des gouvernements de triompher et de faire vite une annonce sur un accord, précise Bernard Bachelier. Mais après, les discussions techniques commencent avec les administrations et, bien souvent, elles s’enlisent autour de la question du droit au sol, du foncier et du cadastre. Aussi, les investissements pour la mise en culture et l’acheminement des récoltes s’annoncent fréquemment bien plus élevés que prévu. Au final, nombre d’investisseurs se retrouvent dans l’incapacité de financer le projet et abandonnent. »
Selon Bernard Bachelier, le Mali est un bon exemple. « Sur 1 million de terres irrigables, gérées par l’Office du Niger, il y a eu pour 650 000 ha de lettres d’intention. Au final, il ne reste plus que 45 000 ha de projets. » Et de citer le projet libyen : « Tripoli et Bamako ont communiqué, en grande pompe, sur un accord portant sur 100 000 ha. Le document ne donne aucune précision sur le type de contrat : bail à durée déterminée ? Propriété ? Au final, seuls 25 000 ha sont évoqués. Et jusque-là, un canal de 40 km a été construit par des Chinois, sans aucun canal secondaire pour irriguer. »
Madagascar a elle aussi vu son accord sur 1 million d’hectares tué dans l’œuf : la pression populaire a eu raison du groupe sud-coréen Daewoo, qui avait négocié un bail de… quatre-vingt-dix-neuf ans.
Le phénomène d’achat de terre sur le continent n’est pas nouveau, mais la Banque mondiale relève que la quantité de terres négociées dans chaque contrat, qui dépassait rarement quelques milliers d’hectares il y a encore cinq ans, en concerne aujourd’hui allègrement plusieurs centaines de milliers. Comme au Bénin, où Green Waves, un groupe à capitaux italiens, a obtenu l’appui du gouvernement béninois pour l’exploitation annuelle de 250 000 ha de tournesol en août 2007, essentiellement pour cultiver des agrocarburants.
Le pays de Boni Yayi entend offrir plus de 3 millions d’hectares de terres d’ici à 2011 aux groupes étrangers pour la culture et le développement des agrocarburants. Avec un prix compris entre 76 et 456 euros l’hectare (suivant le sol, la proximité d’un point d’eau…), l’opération peut être juteuse. Mais pour quelle rentabilité ? Personne ne s’avance sur cette question délicate. Beaucoup de facteurs entrent en compte : prix des produits sur le marché, fertilité des sols, coûts d’acheminement des récoltes, prix des intrants (engrais, semences…).
La Banque mondiale prévient d’emblée qu’une rentabilité de court terme est inenvisageable pour des terres à irriguer et loin des axes routiers. Mais les perspectives de retour sur investissement sont impressionnantes. Ainsi, pour la culture du sucre, une fois les obstacles dépassés et la culture lancée, 1 hectare de terre pourrait rapporter 18 500 dollars en Zambie (environ 13 850 euros), 8 000 dollars au Kenya, contre 3 750 dollars au Brésil…
Un secteur porteur
L’engouement pour les terres fertiles de l’Afrique est bien réel et, tout le monde en convient, le secteur a de l’avenir. La société Investisseur et Partenaire pour le développement (I&P) en est convaincue. Avec 14 millions d’euros engagés sur le continent, dont un bon tiers (hors microfinance) dans l’agroalimentaire, I&P considère que « le domaine agricole est un secteur clé », selon Sébastien Boyé. L’entreprise, qui investit spécifiquement dans les PME africaines, accompagne entre autres la société Sagex, qui cultive du maïs et du soja sur quelque 3 000 ha au Cameroun.
À Madagascar, I&P est actionnaire de Phileol, producteur d’huile de ricin. Ce n’est pas de tout repos : « Les risques juridiques sont importants, bien souvent le droit coutumier se superpose au droit national, les parties prenantes locales sont fortes. Il faut être souple sur le schéma de sécurisation du foncier. D’ailleurs, nous sommes rarement propriétaires des surfaces. »
Sébastien Boyé pointe en outre le manque d’initiatives africaines. « L’accaparement des terres par des étrangers est au cœur du débat. Or il faut reconnaître que nous ne sommes pas submergés par les demandes émanant d’Africains. Mais la situation va évoluer. » « Le problème de l’Afrique est l’accès au financement, privé et public », soutient ainsi Bernard Bachelier. Les compétences sont un autre obstacle. Ainsi que le résume un agriculteur éthiopien, qui appelle de ses vœux une politique d’accès aux terres de son pays : « Nous avons de l’or entre les mains, mais nous ne savons pas comment l’utiliser pour lutter contre la pauvreté. »
___________________________
Qui investit et pourquoi
Par Michael Pauron
La Banque mondiale classe les investisseurs en trois groupes. Les gouvernements d’abord : alertés par la crise alimentaire de 2008, ils sont venus trouver de l’espace pour sécuriser leurs approvisionnements alimentaires, et donc privilégier les cultures d’exportation.
Les fonds d’investissements ensuite, attirés par la rentabilité potentielle d’un secteur en pleine croissance, par des prix sur les marchés mondiaux en hausse et par un marché régional en expansion. Enfin, les agro-industriels et les traders se distinguent par la dimension des acquisitions, sans toujours proposer un projet fiable.
Les sociétés spécialisées dans les agrocarburants sont également nombreuses, et représenteraient quasiment 5 millions d’hectares. Dans une étude parue en septembre, Les Amis de la Terre Europe identifient ainsi un certain nombre de sociétés européennes : le suisse Addax Bioenergy en Sierra Leone, les britanniques Sun Biofuels en Éthiopie ou D1 Oils au Swaziland, l’italien Agroils ou encore le norvégien ScanFuel au Ghana.
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Olivier de Schutter : “Je dénonce l’iniquité des règles”
Par Michael Pauron
Olivier de Schutter est le rapporteur des Nations unies pour le droit à l’alimentation.
Spécialiste belge du droit à l’alimentation, il regrette les discours de bonnes intentions et appelle à la réforme des règles du commerce mondial, qui, par leur iniquité, écartent d’office le continent africain.
JEUNE AFRIQUE : En Afrique, plus de 200 millions d’hectares de terres cultivables sont disponibles et très convoités. Est-ce inquiétant ?
OLIVIER DE SCHUTTER : Après l’absence d’investissements depuis les années 1980, c’est vrai qu’il y a un regain d’intérêt pour les pays du Sud, là où la terre est disponible et la main-d’œuvre peu chère. Les pays de l’Organisation de coopération et de développement économiques (OCDE) craignent de ne plus avoir assez de place pour cultiver et investissent massivement dans les grandes exploitations. Mais la plupart des projets servent à développer les exportations. Les retombées pour les pays hôtes sont insignifiantes.
Comment améliorer le système ?
Les concessions faites aux investisseurs sont considérables et sans contrepartie. Regardez le Mozambique, qui, d’un côté, importe 305 000 tonnes de blé pour sa consommation – ce qui le rend vulnérable aux cours mondiaux –, et, de l’autre, offre des conditions très avantageuses aux exploitants étrangers, comme l’exonération de taxes et de droits d’entrée. Les bénéfices retirés pour le pays sont minimes. Les investisseurs pourraient s’engager, auprès des petits exploitants, à organiser des coopératives, développer les moyens de stockage. L’État pourrait de son côté acheter les récoltes et faciliter l’accès au crédit.
Pourquoi les États africains ne sont-ils pas plus fermes ?
Ils ont besoin de cet argent, et les investisseurs font de la surenchère d’un pays à l’autre. Il est très difficile pour les pays de la région de faire front commun, car le degré d’intégration régionale est insuffisant.
Le rapport de la Banque mondiale [BM] publié le 7 septembre* alerte sur les risques liés à la ruée vers l’or vert. L’institution est-elle méfiante à l’égard des fonds d’investissement ?
D’abord, le discours de la BM est contradictoire avec les actions de son bras armé pour le secteur privé, la Société financière internationale [SFI], qui encourage les États africains à limiter au maximum les contraintes qui pèsent sur les investisseurs et à leur donner des garanties juridiques fortes.
Ensuite, à la question « les investissements seront-ils bénéfiques à long terme ? », la réponse de la Banque mondiale est d’énumérer les conditions pour qu’ils le soient. Or la vraie question est de savoir si les terres disponibles doivent prioritairement bénéficier aux investisseurs étrangers ou aux paysans locaux. L’accès doit être équitable. Car l’important ce n’est pas l’investissement mais la manière de faire reculer la pauvreté dans les campagnes.
Les pays ne profiteront-ils pas de cette manne pour acquérir technique et savoir-faire, devenir plus compétitifs et faire reculer la pauvreté ?
Il ne faut pas confondre productivité et compétitivité. Dans la révolution verte opérée en Asie, la capacité de production a augmenté de 8 %, et la population malnutrie a augmenté de 9 %. En Amérique latine, la proportion est de 8 % et 17 % ! Si on laisse se développer les grandes exploitations, les petites vont disparaître, et les paysans vont rejoindre les villes. La petite agriculture préserve l’emploi, la nature limite l’exode, c’est la meilleure façon de faire baisser la pauvreté.
La petite agriculture peut-elle subsister dans la mondialisation ?
Pas dans l’économie low cost, ni avec l’iniquité des règles du commerce mondial, que je dénonce. Les pays de l’OCDE s’étaient engagés lors du sommet de l’Organisation mondiale du commerce [OMC] en 2005 à supprimer leurs subventions. En 2008, l’Union européenne les a restaurées sur le lait. Les soutiens aux producteurs et les normes faussent la concurrence. Le discours est : « Ouvrez vos marchés, vendez vos produits, on les transformera. » L’Afrique dépend des importations et est vulnérable aux prix mondiaux. Elle doit se diversifier, se protéger, ne pas se laisser enfermer dans la production de matières premières et développer son marché intérieur pour écouler sa production.
* « L’intérêt croissant pour les terres agricoles dans le monde peut-il apporter des bénéfices équitables à long terme ? »
Expert: Investors no longer believe fairytales about Ukrainian agriculture
Published: 11 October 2010
by John Marone
Following the global financial crisis of 2008, the once golden eggs of the emerging Ukrainian market – real estate, retail and banking – remain cracked, soiled and reeking with debt.
At the same time, in a world of increasingly inclement weather and billions of mouths to feed, the country’s agriculture sector has come to command center stage among foreign investors eager to get in on growth.
Yet, despite a few well-publicized share offerings on European exchanges, and some high-profile mergers and acquisitions, this year’s expected boom has still not boomed.
Alex Lissitsa, president of the Kyiv-based agricultural lobby Ukrainian Agribusiness Club, grew up in a Ukrainian village before studying agriculture in the West.
Lissitsa told the Kyiv Post in a recent interview that foreign investors are already knee deep in Ukrainian agriculture, with full or partial stakes in around half of the country’s top 60 agricultural holdings.
But the road ahead toward greater consolidation and increased export presents several challenges, such as still-cautious equity markets and more questions than answers about Ukraine’s expected cancellation of the country’s ban on the sale of agricultural land.
KP: The Ukrainian parliament has repeatedly renewed the country’s moratorium on the sale of agricultural land on a yearly basis, although many expect the moratorium to finally be lifted in 2011, when it comes up for renewal again. Large international agribusiness companies have said they welcome the end to the moratorium, but you have said you are concerned. Why? What are these concerns? And what needs to be done to allay them?
AL: It’s not so important that Ukraine will have a land market, but what kind of land market it will be. Right now, it’s a black box, and no one knows what’s inside. For example, will it be possible for legal entities or only physical entities to buy land? What will be the limit on the maximum size of land use? Who will have legal advantage in a purchase? Will it be obligatory to sell land via a state bank, or will this be possible on the free market? How will it be possible to combat parcelization of land plots? Will a minimum price on land be set? There are a lot of such questions, but the seven draft laws on the land market that have been written up over the last three years offer different answers to these questions.
From the point of view of business interests, it’s important that the decisions taken are not only sufficient but also predictable for the mid-term. Otherwise, it will be difficult for a real business to operate. Only land speculators will win, which is also a big problem. For now, the whole process of introducing a land market looks more like a slogans’ competition than a well thought out economic strategy. The inevitability, however, of introducing a land market is becoming clearer every year.
KP: What about market consolidation in the sector? Are foreign companies also getting involved in the consolidation or can we expect them to wait until the sector is already consolidated before investing? Are smaller farms being gobbled up because they lack, for instance, storage facilities, or will some survive consolidation?
AL: Consolidation in the agricultural sector is an established fact. Holdings are increasing their presence, with 60 companies cultivating more than four million hectares of land. Half of these are fully or partially owned by foreign capital. For example, these are companies that have done IPOs (initial public offerings of company shares). Foreign capital is quite interested in Ukrainian assets, so it would be senseless to wait for the consolidation process to end when no opportunities for creating new agro companies will remain on the market and when an entry ticket in the form of the purchase of an already existing business could become more expensive.
Regarding small farms, their prospects are clear. Of course, we have examples of farming companies turning into large holdings over the years, but such precedents are few. It’s not just a matter of the presence of storage facilities, processing potential, sales or access to finance. Simple calculations show that it’s not profitable to grow grain in areas of less than 3,000 to 4,000 hectares, because you cannot cover the costs of modern equipment and technology in a reasonable amount of time. And without these things, you cannot be competitive. Therefore, small companies will fall into niche production of things like vegetables.
KP: Some large Ukrainian agribusiness players, such as Avangard and Nibulon, are placing their bets on export. What are Ukraine’s chances of becoming a serious global food exporter? I know it’s already a big grain and seed-oil exporter, but is there tension between those who want Ukraine to export finished food products and those who want to export more grain, seed oil and other raw food? Is government hampering the latter, for example, by bans on exports? Is export of food Ukraine’s future?
AL: It’s clear to everyone in the world and Ukraine that Ukraine’s potential allows it not only to cover its domestic needs but to export significant volumes of agricultural products. Consolidation of the export business with production continues afoot. But this is just one of the ways toward vertical integration. Some companies are getting the most added value from the domestic market. As regards the structure of export, buyers on the world market prefer to buy raw [agricultural] materials rather than finished [food] products. This is a fact. For example, the global market for wheat is a lot higher than the global market for flour.
Of course, we need to think about how to export products with a high added value, but it’s more important not to lose the markets of food production that we already have. For example, in free-trade talks with the European Union, the Europeans insist on the cancellation of export tariffs on [Ukrainian] sunflower seeds. This would make us into a supplier of raw materials for European sunflower seed oil makers. So, Ukrainian negotiators have to expend maximum effort toward maintaining these tariffs. As regards limits on export: First of all, they are restricted by our obligations as members of the World Trade Organization. But on the other hand, the depth of our country’s economic policy doesn’t allow one to hope that the government will somehow modernize the structure of export.
KP: Lastly, we have seen some IPO activity this year, but we were promised a lot more. What is holding up more IPOs by Ukrainian companies in Europe – bad market conditions?
AL: Over the past two or three years, there have been significant country risks and a crisis. When there were serious discussions about whether the hryvnia would collapse, or when one of branch of executive authority blocked the other, it was difficult to explain to investors that Ukraine was a country to invest in. As a results Ukrainian assets were undervalued. I cannot say now that everything is ideal, but at least the edge has been taken off these and other problems. In addition, food prices have risen. Therefore, we expect the investment attractiveness of Ukrainian agro companies on world capital markets to rise in the next couple of years. Without a doubt, a lot depends on the companies themselves. The days when one could tell investors fairytales about Ukrainian agriculture are long gone.
Kyiv Post staff writer John Marone can be reached at marone@kyivpost.com
by John Marone
Following the global financial crisis of 2008, the once golden eggs of the emerging Ukrainian market – real estate, retail and banking – remain cracked, soiled and reeking with debt.
At the same time, in a world of increasingly inclement weather and billions of mouths to feed, the country’s agriculture sector has come to command center stage among foreign investors eager to get in on growth.
Yet, despite a few well-publicized share offerings on European exchanges, and some high-profile mergers and acquisitions, this year’s expected boom has still not boomed.
Alex Lissitsa, president of the Kyiv-based agricultural lobby Ukrainian Agribusiness Club, grew up in a Ukrainian village before studying agriculture in the West.
Lissitsa told the Kyiv Post in a recent interview that foreign investors are already knee deep in Ukrainian agriculture, with full or partial stakes in around half of the country’s top 60 agricultural holdings.
But the road ahead toward greater consolidation and increased export presents several challenges, such as still-cautious equity markets and more questions than answers about Ukraine’s expected cancellation of the country’s ban on the sale of agricultural land.
KP: The Ukrainian parliament has repeatedly renewed the country’s moratorium on the sale of agricultural land on a yearly basis, although many expect the moratorium to finally be lifted in 2011, when it comes up for renewal again. Large international agribusiness companies have said they welcome the end to the moratorium, but you have said you are concerned. Why? What are these concerns? And what needs to be done to allay them?
AL: It’s not so important that Ukraine will have a land market, but what kind of land market it will be. Right now, it’s a black box, and no one knows what’s inside. For example, will it be possible for legal entities or only physical entities to buy land? What will be the limit on the maximum size of land use? Who will have legal advantage in a purchase? Will it be obligatory to sell land via a state bank, or will this be possible on the free market? How will it be possible to combat parcelization of land plots? Will a minimum price on land be set? There are a lot of such questions, but the seven draft laws on the land market that have been written up over the last three years offer different answers to these questions.
From the point of view of business interests, it’s important that the decisions taken are not only sufficient but also predictable for the mid-term. Otherwise, it will be difficult for a real business to operate. Only land speculators will win, which is also a big problem. For now, the whole process of introducing a land market looks more like a slogans’ competition than a well thought out economic strategy. The inevitability, however, of introducing a land market is becoming clearer every year.
KP: What about market consolidation in the sector? Are foreign companies also getting involved in the consolidation or can we expect them to wait until the sector is already consolidated before investing? Are smaller farms being gobbled up because they lack, for instance, storage facilities, or will some survive consolidation?
AL: Consolidation in the agricultural sector is an established fact. Holdings are increasing their presence, with 60 companies cultivating more than four million hectares of land. Half of these are fully or partially owned by foreign capital. For example, these are companies that have done IPOs (initial public offerings of company shares). Foreign capital is quite interested in Ukrainian assets, so it would be senseless to wait for the consolidation process to end when no opportunities for creating new agro companies will remain on the market and when an entry ticket in the form of the purchase of an already existing business could become more expensive.
Regarding small farms, their prospects are clear. Of course, we have examples of farming companies turning into large holdings over the years, but such precedents are few. It’s not just a matter of the presence of storage facilities, processing potential, sales or access to finance. Simple calculations show that it’s not profitable to grow grain in areas of less than 3,000 to 4,000 hectares, because you cannot cover the costs of modern equipment and technology in a reasonable amount of time. And without these things, you cannot be competitive. Therefore, small companies will fall into niche production of things like vegetables.
KP: Some large Ukrainian agribusiness players, such as Avangard and Nibulon, are placing their bets on export. What are Ukraine’s chances of becoming a serious global food exporter? I know it’s already a big grain and seed-oil exporter, but is there tension between those who want Ukraine to export finished food products and those who want to export more grain, seed oil and other raw food? Is government hampering the latter, for example, by bans on exports? Is export of food Ukraine’s future?
AL: It’s clear to everyone in the world and Ukraine that Ukraine’s potential allows it not only to cover its domestic needs but to export significant volumes of agricultural products. Consolidation of the export business with production continues afoot. But this is just one of the ways toward vertical integration. Some companies are getting the most added value from the domestic market. As regards the structure of export, buyers on the world market prefer to buy raw [agricultural] materials rather than finished [food] products. This is a fact. For example, the global market for wheat is a lot higher than the global market for flour.
Of course, we need to think about how to export products with a high added value, but it’s more important not to lose the markets of food production that we already have. For example, in free-trade talks with the European Union, the Europeans insist on the cancellation of export tariffs on [Ukrainian] sunflower seeds. This would make us into a supplier of raw materials for European sunflower seed oil makers. So, Ukrainian negotiators have to expend maximum effort toward maintaining these tariffs. As regards limits on export: First of all, they are restricted by our obligations as members of the World Trade Organization. But on the other hand, the depth of our country’s economic policy doesn’t allow one to hope that the government will somehow modernize the structure of export.
KP: Lastly, we have seen some IPO activity this year, but we were promised a lot more. What is holding up more IPOs by Ukrainian companies in Europe – bad market conditions?
AL: Over the past two or three years, there have been significant country risks and a crisis. When there were serious discussions about whether the hryvnia would collapse, or when one of branch of executive authority blocked the other, it was difficult to explain to investors that Ukraine was a country to invest in. As a results Ukrainian assets were undervalued. I cannot say now that everything is ideal, but at least the edge has been taken off these and other problems. In addition, food prices have risen. Therefore, we expect the investment attractiveness of Ukrainian agro companies on world capital markets to rise in the next couple of years. Without a doubt, a lot depends on the companies themselves. The days when one could tell investors fairytales about Ukrainian agriculture are long gone.
Kyiv Post staff writer John Marone can be reached at marone@kyivpost.com
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