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
NEWS - Commodites, Agriculture, Green Investment - NEWS
10/27/2010
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.
_____________________________
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
Algeria seeks investment in key economic sectors
Khaleej Times | 13 October 2010 Adel Arafa
ABU DHABI — The Government of Algeria is offering huge investment opportunities in tourism, real estate, agriculture, services and banking sector to attract foreign investors especially from the UAE, Algerian Ambassador to the UAE Humaid Shibaira said.
“The government guarantees these offers and provide blanket protection to foreign investors who enjoy all rights of ownership in equal footing the native citizens,’’ the ambassador said in a statement to Khaleej Times on the occasion of visit of Speaker of the UAE Federal National Council (FNC) Abdul Aziz Al Ghurair to the Algeria.
“The trip to Algeria will have significant parliamentary, political and economic dimensions. While in Algiers, Al Ghurair will hold talks with Prime Minister of Algeria Ahmed Ouyahia and a number of ministers and top officials over prospects of joint investment and partnership,’’ the diplomat said.
He indicated that the UAE-Algeria ties have experienced unprecedented headway and qualitative leaps over the last five years through the activation of investment and partnership with the UAE investors and major firms. UAE investors are pumping huge funds into the agricultural sector given the availability of vast arable lands and water and production inputs along with a large market which can serve as a gateway to European and African markets.
He termed prospects of joint cooperation as ‘promising’ under the support of the Emarati and Algerian leadership. He added that the UAE-Algeria joint ministerial committee will meet in May 2011 in Abu Dhabi to evaluate progress of the current joint cooperation and draw a one-year action plan to clear all obstacles ahead.
“Parliamentary cooperation can be very instrumental towards achievement of these ends through bilateral consultations and exchange of know-how and successful democratic experiences,” he said. The ambassador said that the Algeria Investment Council which is headed by the Prime Minister have the nod to the Emirates International Investment Company to build $6 billion integrated city in Algeria.
The civil aviation authorities in both countries, he said, had concluded air traffic agreements granting the UAE national carriers Emirates and Etihad Airways to operate new commercial flights between the two countries. Algerian Airways is running three flights per week to passengers and freights from the UAE.
Dubai is also linked by sea with many Algerian seaports. The ambassador told the paper that Algiers and Abu Dhabi had activated two important treaties on avoidance of double taxation and encouragement and protection of investment. — adel@khalejtimes.com
ABU DHABI — The Government of Algeria is offering huge investment opportunities in tourism, real estate, agriculture, services and banking sector to attract foreign investors especially from the UAE, Algerian Ambassador to the UAE Humaid Shibaira said.
“The government guarantees these offers and provide blanket protection to foreign investors who enjoy all rights of ownership in equal footing the native citizens,’’ the ambassador said in a statement to Khaleej Times on the occasion of visit of Speaker of the UAE Federal National Council (FNC) Abdul Aziz Al Ghurair to the Algeria.
“The trip to Algeria will have significant parliamentary, political and economic dimensions. While in Algiers, Al Ghurair will hold talks with Prime Minister of Algeria Ahmed Ouyahia and a number of ministers and top officials over prospects of joint investment and partnership,’’ the diplomat said.
He indicated that the UAE-Algeria ties have experienced unprecedented headway and qualitative leaps over the last five years through the activation of investment and partnership with the UAE investors and major firms. UAE investors are pumping huge funds into the agricultural sector given the availability of vast arable lands and water and production inputs along with a large market which can serve as a gateway to European and African markets.
He termed prospects of joint cooperation as ‘promising’ under the support of the Emarati and Algerian leadership. He added that the UAE-Algeria joint ministerial committee will meet in May 2011 in Abu Dhabi to evaluate progress of the current joint cooperation and draw a one-year action plan to clear all obstacles ahead.
“Parliamentary cooperation can be very instrumental towards achievement of these ends through bilateral consultations and exchange of know-how and successful democratic experiences,” he said. The ambassador said that the Algeria Investment Council which is headed by the Prime Minister have the nod to the Emirates International Investment Company to build $6 billion integrated city in Algeria.
The civil aviation authorities in both countries, he said, had concluded air traffic agreements granting the UAE national carriers Emirates and Etihad Airways to operate new commercial flights between the two countries. Algerian Airways is running three flights per week to passengers and freights from the UAE.
Dubai is also linked by sea with many Algerian seaports. The ambassador told the paper that Algiers and Abu Dhabi had activated two important treaties on avoidance of double taxation and encouragement and protection of investment. — adel@khalejtimes.com
UAE has over 2,800 sq km in Sudan farms
Emirates 24/7 | Wed, 13 Oct 2010
The UAE controls more than 2,800 square kilometers in farms in Sudan as a result of its decision to invest in agricultural projects in fertile Arab nations to slash its soaring food import bill, according to a Sudanese official.
The farms, scattered over Khartoum, Jazeera, Nile and other arable provinces in the East African Arab country, are more than triple the area of Bahrain and account for nearly 3.5 per cent of the UAE’s total area.
Figures by the Khartoum-based Arab Organization for Agricultural Development showed those farms exceed the UAE’s total cultivated areas, estimated at around 3.1 per cent of the country’s area of 81,000 square kilometers.
Quoted by the semi official UAE daily Alittihad, a Sudanese embassy official in Abu Dhabi said the UAE is the largest Gulf investor in farm projects in Sudan, controlling around 700,000 acres (4,832 square kilometers). The farms account for nearly 58 per cent of the 1.2 million acre farming ventures owned by the Gulf Cooperation Council (GCC), which groups the UAE with five other Gulf nations.
“The UAE’s farm investments in Sudan are the largest among the GCC investments in agricultural projects,” said Muneera Abdul Halim, an economic adviser at the Sudanese Embassy in the UAE.
She said the Zayed farm project is among the first and largest agricultural venture launched by the UAE in Sudan, with investment of around $60 million.
The UAE, Saudi Arabia and other Gulf nations decided in 2008 to invest abroad in farming projects given their arid desert nature following a surge in global food prices that were among the main drivers of soaring inflation in the region.
The six members are among the largest food importers in the world, with their combined farm import bill exceeding $20 billion in 2009.
AOAD data showed the GCC’s cumulative farm imports exceeded $75 billion during 2005-2009, accounting for around 41 per cent of the total Arab food import value of $180 billion although the population of the six members of around 36 million formed only about10 per cent of the total Arab population.
GCC and other Arab officials have repeatedly voiced concern about the farm gap and growing reliance on food imports, mainly from the US and other Western countries. Some officials considered such reliance as a risk to their security.
According to AOAD, a key Arab League establishment, most regional nations are suffering from slackening farm exports and rapid growth in the population, leading to a steady increase in their imports of food products.
It said the surge in exports had created a massive food gap of more than $180 billion over the past 10 years to turn the region into the biggest single food buyer.
In a recent study, a key Saudi investment firm said the GCC’s decision to invest in farming projects in Sudan and other countries constitutes a turnaround in their policies to achieve food self sufficiency, describing it as unrealistic goal.
NCB Capital said the policy shift means the GCC nations, which control nearly 45 per cent of the world’s proven oil wealth, will rely more on food imports but such projects will allow them to overcome natural constraints at home.
“The GCC nations are shifting their agricultural policies away from the nationalistic goal of food self-sufficiency towards more flexible and broad-based efforts to ensure food security. The previous policies were ultimately undermined by acute constraints posed by the natural environment and resources on domestic agriculture,” NCB Capital said.
“This shift is translating into greater reliance on imports, outsourced agriculture and a greater focus on dry agriculture. Farming does not represent a significant component of the GCC economies as an exceptionally arid climate and low capital investments have limited its contribution to GDP and employment.”
Muneera said Sudan, long dubbed the “Arab and African food basket”, had massive arable land, estimated at nearly 100 million hectares, accounting for around 48 per cent of the total Arab cultivated areas. It also has around 130 million hectares of pasture areas and over 135 million heads of livestock.
The UAE controls more than 2,800 square kilometers in farms in Sudan as a result of its decision to invest in agricultural projects in fertile Arab nations to slash its soaring food import bill, according to a Sudanese official.
The farms, scattered over Khartoum, Jazeera, Nile and other arable provinces in the East African Arab country, are more than triple the area of Bahrain and account for nearly 3.5 per cent of the UAE’s total area.
Figures by the Khartoum-based Arab Organization for Agricultural Development showed those farms exceed the UAE’s total cultivated areas, estimated at around 3.1 per cent of the country’s area of 81,000 square kilometers.
Quoted by the semi official UAE daily Alittihad, a Sudanese embassy official in Abu Dhabi said the UAE is the largest Gulf investor in farm projects in Sudan, controlling around 700,000 acres (4,832 square kilometers). The farms account for nearly 58 per cent of the 1.2 million acre farming ventures owned by the Gulf Cooperation Council (GCC), which groups the UAE with five other Gulf nations.
“The UAE’s farm investments in Sudan are the largest among the GCC investments in agricultural projects,” said Muneera Abdul Halim, an economic adviser at the Sudanese Embassy in the UAE.
She said the Zayed farm project is among the first and largest agricultural venture launched by the UAE in Sudan, with investment of around $60 million.
The UAE, Saudi Arabia and other Gulf nations decided in 2008 to invest abroad in farming projects given their arid desert nature following a surge in global food prices that were among the main drivers of soaring inflation in the region.
The six members are among the largest food importers in the world, with their combined farm import bill exceeding $20 billion in 2009.
AOAD data showed the GCC’s cumulative farm imports exceeded $75 billion during 2005-2009, accounting for around 41 per cent of the total Arab food import value of $180 billion although the population of the six members of around 36 million formed only about10 per cent of the total Arab population.
GCC and other Arab officials have repeatedly voiced concern about the farm gap and growing reliance on food imports, mainly from the US and other Western countries. Some officials considered such reliance as a risk to their security.
According to AOAD, a key Arab League establishment, most regional nations are suffering from slackening farm exports and rapid growth in the population, leading to a steady increase in their imports of food products.
It said the surge in exports had created a massive food gap of more than $180 billion over the past 10 years to turn the region into the biggest single food buyer.
In a recent study, a key Saudi investment firm said the GCC’s decision to invest in farming projects in Sudan and other countries constitutes a turnaround in their policies to achieve food self sufficiency, describing it as unrealistic goal.
NCB Capital said the policy shift means the GCC nations, which control nearly 45 per cent of the world’s proven oil wealth, will rely more on food imports but such projects will allow them to overcome natural constraints at home.
“The GCC nations are shifting their agricultural policies away from the nationalistic goal of food self-sufficiency towards more flexible and broad-based efforts to ensure food security. The previous policies were ultimately undermined by acute constraints posed by the natural environment and resources on domestic agriculture,” NCB Capital said.
“This shift is translating into greater reliance on imports, outsourced agriculture and a greater focus on dry agriculture. Farming does not represent a significant component of the GCC economies as an exceptionally arid climate and low capital investments have limited its contribution to GDP and employment.”
Muneera said Sudan, long dubbed the “Arab and African food basket”, had massive arable land, estimated at nearly 100 million hectares, accounting for around 48 per cent of the total Arab cultivated areas. It also has around 130 million hectares of pasture areas and over 135 million heads of livestock.
10/11/2010
Hedge Fund Oil Bets Climb to Five-Month High: Energy Markets
October 11, 2010, 1:53 AM From Businessweek
Oct. 11 (Bloomberg) -- Hedge funds raised bullish bets on oil to the highest level in more than five months amid speculation that the Federal Reserve will enact further stimulus measures to keep the economic recovery on track.
Hedge funds and other large speculators increased wagers on rising crude prices by 44 percent in the seven days ended Oct. 5, according to the Commodity Futures Trading Commission’s weekly Commitments of Traders report. It was the highest level since April 23.
“The writing has been on the wall for the rally in crude oil for the last few weeks,” said Hamza Khan, an analyst with Schork Group Inc., a consulting company in Villanova, Pennsylvania.
Crude has rallied more than 13 percent since Sept. 17 amid growing evidence that the Fed will need to start debt purchases to prevent the world’s biggest economy from sliding back into a recession, weakening the U.S. currency and boosting dollar- denominated commodities. The dollar depreciated 1.1 percent last week, while crude advanced 1.3 percent.
Oil for November delivery rallied 81 cents to $83.47 a barrel in electronic trading on the New York Mercantile Exchange today, extending a 99-cent gain on Oct. 11 after the Labor Department said U.S. employers cut hiring more than forecast in September, trimming 95,000 workers. The median estimate of 87 economists surveyed by Bloomberg News was for a decline of 5,000 jobs.
‘Additional Accommodation’
The employment report increased the prospect of the Fed debt purchases, according to Andy Lipow, president of Lipow Oil Associates LLC, a Houston-based energy consultant. The Dollar Index, which tracks the U.S. currency against those of six major trading partners, has slipped more than 12 percent since this year’s peak on June 7.
The central bank bought $300 billion of Treasuries in 2009.
Deutsche Bank AG raised its fourth-quarter and first- quarter 2011 forecasts for both Nymex and Brent oil to $80 a barrel, Adam Sieminski, the bank’s Washington-based chief energy economist, said in a report last week. As recently as mid- September, the bank’s forecasts were $70 for the fourth quarter and $75 for the first.
“You look around the world and see good economic news out of China and some parts of the European Union, most notably Germany,” Lipow said. “Even here in the U.S., as bad as the perception of the economy is, total petroleum demand is up.”
The four-week average of total petroleum products supplied rose 2.2 percent from a year ago, the Energy Department reported last week.
Net Longs
Net-long positions in oil held by what the CFTC categorizes as managed money, including hedge funds, commodity pools and commodity-trading advisers, rose by 51,634 futures and options combined to 168,540, according to the CFTC report.
Bullish bets on gasoline prices more than doubled to 50,354, the fifth straight weekly increase, the data showed. Net-long positions on heating oil rose for a sixth week, advancing 21,433, or 69 percent, to 52,699.
Net-long positions in futures and options combined in four natural-gas contracts decreased by 19,828 futures equivalents to 31,479 in the week ended Oct. 5, the lowest level this year, the CFTC data showed.
The measure of natural-gas net longs includes an index of four contracts adjusted to futures equivalents: Nymex natural gas futures, Nymex Henry Hub Swaps, Nymex Henry Hub Penultimate Swaps, and ICE Henry Hub Swaps. Henry Hub in Erath, Louisiana, is the delivery point for Nymex futures, a benchmark price for the fuel.
--With assistance Margot Habiby in Houston, Christian Vits in Frankfurt and Mark Shenk in New York. Editors: Dan Stets, Bill Banker
Oct. 11 (Bloomberg) -- Hedge funds raised bullish bets on oil to the highest level in more than five months amid speculation that the Federal Reserve will enact further stimulus measures to keep the economic recovery on track.
Hedge funds and other large speculators increased wagers on rising crude prices by 44 percent in the seven days ended Oct. 5, according to the Commodity Futures Trading Commission’s weekly Commitments of Traders report. It was the highest level since April 23.
“The writing has been on the wall for the rally in crude oil for the last few weeks,” said Hamza Khan, an analyst with Schork Group Inc., a consulting company in Villanova, Pennsylvania.
Crude has rallied more than 13 percent since Sept. 17 amid growing evidence that the Fed will need to start debt purchases to prevent the world’s biggest economy from sliding back into a recession, weakening the U.S. currency and boosting dollar- denominated commodities. The dollar depreciated 1.1 percent last week, while crude advanced 1.3 percent.
Oil for November delivery rallied 81 cents to $83.47 a barrel in electronic trading on the New York Mercantile Exchange today, extending a 99-cent gain on Oct. 11 after the Labor Department said U.S. employers cut hiring more than forecast in September, trimming 95,000 workers. The median estimate of 87 economists surveyed by Bloomberg News was for a decline of 5,000 jobs.
‘Additional Accommodation’
The employment report increased the prospect of the Fed debt purchases, according to Andy Lipow, president of Lipow Oil Associates LLC, a Houston-based energy consultant. The Dollar Index, which tracks the U.S. currency against those of six major trading partners, has slipped more than 12 percent since this year’s peak on June 7.
The central bank bought $300 billion of Treasuries in 2009.
Deutsche Bank AG raised its fourth-quarter and first- quarter 2011 forecasts for both Nymex and Brent oil to $80 a barrel, Adam Sieminski, the bank’s Washington-based chief energy economist, said in a report last week. As recently as mid- September, the bank’s forecasts were $70 for the fourth quarter and $75 for the first.
“You look around the world and see good economic news out of China and some parts of the European Union, most notably Germany,” Lipow said. “Even here in the U.S., as bad as the perception of the economy is, total petroleum demand is up.”
The four-week average of total petroleum products supplied rose 2.2 percent from a year ago, the Energy Department reported last week.
Net Longs
Net-long positions in oil held by what the CFTC categorizes as managed money, including hedge funds, commodity pools and commodity-trading advisers, rose by 51,634 futures and options combined to 168,540, according to the CFTC report.
Bullish bets on gasoline prices more than doubled to 50,354, the fifth straight weekly increase, the data showed. Net-long positions on heating oil rose for a sixth week, advancing 21,433, or 69 percent, to 52,699.
Net-long positions in futures and options combined in four natural-gas contracts decreased by 19,828 futures equivalents to 31,479 in the week ended Oct. 5, the lowest level this year, the CFTC data showed.
The measure of natural-gas net longs includes an index of four contracts adjusted to futures equivalents: Nymex natural gas futures, Nymex Henry Hub Swaps, Nymex Henry Hub Penultimate Swaps, and ICE Henry Hub Swaps. Henry Hub in Erath, Louisiana, is the delivery point for Nymex futures, a benchmark price for the fuel.
--With assistance Margot Habiby in Houston, Christian Vits in Frankfurt and Mark Shenk in New York. Editors: Dan Stets, Bill Banker
U.S. Hedge Fund Third Point Accumulating Position in Potash Corp
Third Point, Dan Loeb's US$3.3-billion hedge fund, has accumulated a position in Potash Corp. of Saskatchewan Inc. (POT.TO) in recent weeks, according to a story in the Globe and Mail newspaper that in turn cites reports of a new listing of the fund's top five holdings.
Potash clocks in at No. 4 on Third Point's top positions list, according to the fund's latest disclosure of holdings, which was reported on the Market Folly blog, the Globe and Mail says. The new position is an attempt to profit should BHP Billiton Ltd. raise its hostile US$130-a-share offer for Potash, or should a bidding war erupt, it adds.
Potash clocks in at No. 4 on Third Point's top positions list, according to the fund's latest disclosure of holdings, which was reported on the Market Folly blog, the Globe and Mail says. The new position is an attempt to profit should BHP Billiton Ltd. raise its hostile US$130-a-share offer for Potash, or should a bidding war erupt, it adds.
Clive Hedge Fund Gains 6.6% in September on Agriculture, Gold Investments
By Chanyaporn Chanjaroen Bloomberg - Oct 8, 2010
Clive Capital LLP’s $4 billion commodity hedge fund returned 6.6 percent in September, the best monthly return since May 2009, according to a report to investors obtained by Bloomberg.
Clive Fund Ltd. increased 1.7 percent in the first nine months, the London-based company said in the report. The figures refer to Class B shares introduced in May 2008.
“The agriculture sector was the best performer with strong profits in corn, cotton, soybeans and the oilseeds and vegetable oil complex,” according to a commentary in the report of the fund, which is managed by Chris Levett. “The fund was profitable in precious metals on the back of our length in gold, platinum and palladium.”
Cotton futures jumped 18 percent in September and reached the highest price in 15 years on concern demand from textile mills would outstrip supply as floods destroyed crops in Pakistan, and low temperatures and rain hurt production in China, the biggest grower. Corn and soybeans advanced 13 percent and 9.6 percent, while gold climbed 4.9 percent, touching a record.
Clive beat average hedge fund returns globally of 3.4 percent last month, based on data from Chicago-based Hedge Fund Research Inc., which tracks more than 2,200 such capital pools.
Hedge funds are largely unregulated investment vehicles whose managers can trade any asset, aim to make money regardless of whether markets rise or fall and participate substantially in profits from money invested.
Clive Capital LLP’s $4 billion commodity hedge fund returned 6.6 percent in September, the best monthly return since May 2009, according to a report to investors obtained by Bloomberg.
Clive Fund Ltd. increased 1.7 percent in the first nine months, the London-based company said in the report. The figures refer to Class B shares introduced in May 2008.
“The agriculture sector was the best performer with strong profits in corn, cotton, soybeans and the oilseeds and vegetable oil complex,” according to a commentary in the report of the fund, which is managed by Chris Levett. “The fund was profitable in precious metals on the back of our length in gold, platinum and palladium.”
Cotton futures jumped 18 percent in September and reached the highest price in 15 years on concern demand from textile mills would outstrip supply as floods destroyed crops in Pakistan, and low temperatures and rain hurt production in China, the biggest grower. Corn and soybeans advanced 13 percent and 9.6 percent, while gold climbed 4.9 percent, touching a record.
Clive beat average hedge fund returns globally of 3.4 percent last month, based on data from Chicago-based Hedge Fund Research Inc., which tracks more than 2,200 such capital pools.
Hedge funds are largely unregulated investment vehicles whose managers can trade any asset, aim to make money regardless of whether markets rise or fall and participate substantially in profits from money invested.
10/06/2010
Is Zambia Africa’s next breadbasket?
Mail & Guardian | Oct 01 2010
JODY CLARK
The evening sun is setting on Francis Grogan’s Zambian farm and the combine harvesters are finishing their work for the day. Francolins scuttle in their wake and herons pick at the ground where wheat has been growing.
But instead of letting the farmland lie fallow until next season, Grogan will soon be planting again.
“The land is so good here that there’s no need for it,” says the Irishman and managing director of Zambeef, one of sub-Saharan Africa’s largest food producers.
“The sun shines all day and there is plenty of water for irrigation, which means we can double-crop. Once the wheat is harvested, we’ll plant the maize and sorghum.”
Long regarded as the poorer cousin of its Zimbabwean neighbour, Zambia is fast gaining attention as a desirable destination for agricultural investors.
International investors from Britain to South Africa have begun putting money into infrastructure development and transport, and about 200 exiled Zimbabwean farmers have taken leases from the Zambian government to develop farmland in the country.
Meanwhile, companies such as Zambeef have risen on the back of a growing Zambian middle class, whose incomes and expectations are rising.
From humble beginnings in 1991 in Lusaka, where the business started as an abattoir and two butcher shops, Zambeef is now a $200-million-a-year company. It is the largest meat producer in Zambia, slaughtering more than 60 000 head of cattle and 3,5-million chickens a year.
“We have a lot more water than Brazil, there is plenty of rainfall and solid support from the government. This is an excellent country to invest in,” Grogan said.
The question now on many people’s lips is: Could Zambia become the next breadbasket of Africa? It certainly has the potential.
Of a total land area of 752 000km2, 420 000km2 is classed as having medium to high agricultural potential. But, only 15% of arable land is cultivated, according to the World Bank.
Despite this, last season’s maize harvest satisfied domestic consumption more than twice over, according to the International Trade Centre in Geneva.
Of a total harvest of 2,7-million tonnes, only one million tonnes of maize was absorbed by the home market. The surplus will be exported, and the country is looking for buyers.
Although economic growth has averaged 5% over the past decade thanks to a roaring demand for the country’s copper, the agricultural industry has floundered. Agricultural growth has averaged less than 1% annually.
Only 1% of small farmers have access to electricity and just 28% have access to a public water supply, making irrigation all but a dream for many.
Despite the country’s potential, between 80% and 90% of its farmers still work on small-scale or subsistence operations.
Access to finance and capital is also a problem. The Zambian National Farmers’ Union has said that “Zambia’s market for agricultural finance is fundamentally dysfunctional”.
Credit is scarce and expensive for the majority of farmers and heavily skewed towards the larger corporate sector.
In addition, the union says, loan terms are often too short to accommodate the long-term nature of agriculture, and the processing of loan applications by banks frequently takes too long.
These problems make an already risky sector even more hazardous, with non-performing loans in the 0agricultural sector now exceeding 37%, against 13% across all other sectors of the economy.
Large sums of money are needed to kick-start agricultural businesses. According to Grogan, it costs $10 000 a hectare to turn bush into farmland, but even for large-scale businesses such as Zambeef, bank lending rates are about 20%.
For that reason the company has turned to international organisations, such as the European Investment Bank, which offers loans for farming operations at about 5% interest. This is not an option for most farmers in Zambia.
Despite this, the tremendous possibilities have continued to attract investors, with a delegation of Indian commercial farmers expected in December.
That could benefit both them and Zambia.
The United Nations Food and Agriculture Organisation says that if Zambia could equal agricultural activity in Kenya, a country where two-thirds of the land is semi-arid, output would amount to $1,5-billion a year –10% of Zambia’s GDP.
The sector’s current contribution is about 1%.
“The Zambian government is very supportive — and they aren’t looking for backhanders,” said Grogan. “Of course there’s a lot of red tape and bureaucracy, but that’s the same everywhere in the world.
“We came up from very humble beginnings, delivering beef to the shops in the morning in Land Rovers. Now we have a turnover of £200-million a year and we’re listed on the local exchange.”
JODY CLARK
The evening sun is setting on Francis Grogan’s Zambian farm and the combine harvesters are finishing their work for the day. Francolins scuttle in their wake and herons pick at the ground where wheat has been growing.
But instead of letting the farmland lie fallow until next season, Grogan will soon be planting again.
“The land is so good here that there’s no need for it,” says the Irishman and managing director of Zambeef, one of sub-Saharan Africa’s largest food producers.
“The sun shines all day and there is plenty of water for irrigation, which means we can double-crop. Once the wheat is harvested, we’ll plant the maize and sorghum.”
Long regarded as the poorer cousin of its Zimbabwean neighbour, Zambia is fast gaining attention as a desirable destination for agricultural investors.
International investors from Britain to South Africa have begun putting money into infrastructure development and transport, and about 200 exiled Zimbabwean farmers have taken leases from the Zambian government to develop farmland in the country.
Meanwhile, companies such as Zambeef have risen on the back of a growing Zambian middle class, whose incomes and expectations are rising.
From humble beginnings in 1991 in Lusaka, where the business started as an abattoir and two butcher shops, Zambeef is now a $200-million-a-year company. It is the largest meat producer in Zambia, slaughtering more than 60 000 head of cattle and 3,5-million chickens a year.
“We have a lot more water than Brazil, there is plenty of rainfall and solid support from the government. This is an excellent country to invest in,” Grogan said.
The question now on many people’s lips is: Could Zambia become the next breadbasket of Africa? It certainly has the potential.
Of a total land area of 752 000km2, 420 000km2 is classed as having medium to high agricultural potential. But, only 15% of arable land is cultivated, according to the World Bank.
Despite this, last season’s maize harvest satisfied domestic consumption more than twice over, according to the International Trade Centre in Geneva.
Of a total harvest of 2,7-million tonnes, only one million tonnes of maize was absorbed by the home market. The surplus will be exported, and the country is looking for buyers.
Although economic growth has averaged 5% over the past decade thanks to a roaring demand for the country’s copper, the agricultural industry has floundered. Agricultural growth has averaged less than 1% annually.
Only 1% of small farmers have access to electricity and just 28% have access to a public water supply, making irrigation all but a dream for many.
Despite the country’s potential, between 80% and 90% of its farmers still work on small-scale or subsistence operations.
Access to finance and capital is also a problem. The Zambian National Farmers’ Union has said that “Zambia’s market for agricultural finance is fundamentally dysfunctional”.
Credit is scarce and expensive for the majority of farmers and heavily skewed towards the larger corporate sector.
In addition, the union says, loan terms are often too short to accommodate the long-term nature of agriculture, and the processing of loan applications by banks frequently takes too long.
These problems make an already risky sector even more hazardous, with non-performing loans in the 0agricultural sector now exceeding 37%, against 13% across all other sectors of the economy.
Large sums of money are needed to kick-start agricultural businesses. According to Grogan, it costs $10 000 a hectare to turn bush into farmland, but even for large-scale businesses such as Zambeef, bank lending rates are about 20%.
For that reason the company has turned to international organisations, such as the European Investment Bank, which offers loans for farming operations at about 5% interest. This is not an option for most farmers in Zambia.
Despite this, the tremendous possibilities have continued to attract investors, with a delegation of Indian commercial farmers expected in December.
That could benefit both them and Zambia.
The United Nations Food and Agriculture Organisation says that if Zambia could equal agricultural activity in Kenya, a country where two-thirds of the land is semi-arid, output would amount to $1,5-billion a year –10% of Zambia’s GDP.
The sector’s current contribution is about 1%.
“The Zambian government is very supportive — and they aren’t looking for backhanders,” said Grogan. “Of course there’s a lot of red tape and bureaucracy, but that’s the same everywhere in the world.
“We came up from very humble beginnings, delivering beef to the shops in the morning in Land Rovers. Now we have a turnover of £200-million a year and we’re listed on the local exchange.”
SLC Agricola may sell stake in Brazil farmland unit this year, CEO says
Bloomberg | Oct 2, 2010
By Lucia Kassai
SLC Agricola SA, a Brazilian farm group, plans to create an agricultural-property company and sell a stake to an investor this year, Chief Executive Officer Arlindo de Azevedo Moura said.
SLC, whose crops cover an area almost as big as Jacksonville, Florida, will seek to sell a 49 percent slice of the new company, Land Co., to local or foreign investors that may included sovereign and pension funds, he said today in an interview in Sao Paulo. Porto Alegre, Brazil-based SLC would retain control of the unit and contribute farmland.
“Agricultural land prices in Brazil have a tremendous potential to increase,” said Moura, who declined to give a possible value for the stake.
SLC Agricola produces cotton, soybeans, coffee, corn and rice on about 223,000 hectares (552,000 acres) in Brazil. The company raised 308 million reais ($183 million) in an initial public offering in June 2007.
Shares fell 2 centavos, or 0.1 percent, to 18.64 reais at 2:11 p.m. New York time in Sao Paulo trading.
By Lucia Kassai
SLC Agricola SA, a Brazilian farm group, plans to create an agricultural-property company and sell a stake to an investor this year, Chief Executive Officer Arlindo de Azevedo Moura said.
SLC, whose crops cover an area almost as big as Jacksonville, Florida, will seek to sell a 49 percent slice of the new company, Land Co., to local or foreign investors that may included sovereign and pension funds, he said today in an interview in Sao Paulo. Porto Alegre, Brazil-based SLC would retain control of the unit and contribute farmland.
“Agricultural land prices in Brazil have a tremendous potential to increase,” said Moura, who declined to give a possible value for the stake.
SLC Agricola produces cotton, soybeans, coffee, corn and rice on about 223,000 hectares (552,000 acres) in Brazil. The company raised 308 million reais ($183 million) in an initial public offering in June 2007.
Shares fell 2 centavos, or 0.1 percent, to 18.64 reais at 2:11 p.m. New York time in Sao Paulo trading.
GM ‘lesser of two evils’: Olam
The Land | 04 Oct, 2010
ANDREW MARSHALL
THE Singaporean boss of fast-growing global agricultural commodities trader, Olam International, says his company won’t buy genetically modified (GM) crops, but he thinks they are an inevitable “must” to feed a hungry planet.
“Our board of directors will not be involved in GMs, but I believe one way we can meet the food challenge is to adopt GMs as one of the solutions,” says Olam’s group managing director, Sunny Verghese.
Addressing the who’s who of Australian agribusiness at this year’s Rabobank Agribusiness Leadership dinner, Mr Verghese said China alone was increasing its food consumption demand by 20 per cent every year, yet for the past 15 years Chinese food crop production had been almost flat.
“In time we will see that GMs are the lesser of two evils and the world will embrace this technology to lift agricultural production rather than opt to go hungry,” he said.
With world population numbers growing at 75 to 80 million people every year, he said the reality of food supply and demand couldn’t be ignored, nor could the need for research investment into better food production efficiency.
Mr Verghese’s 20-year-old company is the name behind a ballooning portfolio of Australian and overseas agricultural trading, farming and processing businesses, including Queensland Cotton, Western Wool in NSW, Mt Tyson Seeds in Queensland and 12,000 hectares of southern Australian almond orchards.
Olam began as a cashew trader, then moved into cocoa, coffee and spices, and now has suppliers, farms, factories and customers in 60 countries.
Mr Verghese said China was increasingly fulfilling its agricultural needs by importing more food – and saving its precious agricultural water resources.
About 20 per cent of Chinese agriculture’s water requirements were now satisfied by imports of crop and livestock products grown using another nation’s water reserves.
“China has 20pc of the world’s population, but only six per cent of its fresh water,” he said.
This year it imported soybeans for the first time – a scenario few could have imagined China doing 25 years ago.
China and India were extracting so much ground water to feed their thirsty industrial and agricultural sectors that ground water tables were dropping at the rate of three to six metres every year.
Increasingly water was also diverted to cities to supply industry and urban growth – today agriculture only accounted for 40pc of water use in China, Vietnam and India but enjoyed 80pc of water resources 30 years ago.
The emerging economies of Asia were not only eating more protein in the form of cereals, but also demanding more fat content in their diets.
Mr Verghese said Olam saw “sustainable value” in investing in agriculture.
Despite opportunities to diversify into other industries, the company maintained a strict focus on understanding and following agricultural commodities, which in turn gave it a close relationship with suppliers and the opportunity to find and support niche market opportunities paying premium prices.
He believed increasing opportunities for food and agriculture would foster a revival in research and development for the industry – including much more private capital.
ANDREW MARSHALL
THE Singaporean boss of fast-growing global agricultural commodities trader, Olam International, says his company won’t buy genetically modified (GM) crops, but he thinks they are an inevitable “must” to feed a hungry planet.
“Our board of directors will not be involved in GMs, but I believe one way we can meet the food challenge is to adopt GMs as one of the solutions,” says Olam’s group managing director, Sunny Verghese.
Addressing the who’s who of Australian agribusiness at this year’s Rabobank Agribusiness Leadership dinner, Mr Verghese said China alone was increasing its food consumption demand by 20 per cent every year, yet for the past 15 years Chinese food crop production had been almost flat.
“In time we will see that GMs are the lesser of two evils and the world will embrace this technology to lift agricultural production rather than opt to go hungry,” he said.
With world population numbers growing at 75 to 80 million people every year, he said the reality of food supply and demand couldn’t be ignored, nor could the need for research investment into better food production efficiency.
Mr Verghese’s 20-year-old company is the name behind a ballooning portfolio of Australian and overseas agricultural trading, farming and processing businesses, including Queensland Cotton, Western Wool in NSW, Mt Tyson Seeds in Queensland and 12,000 hectares of southern Australian almond orchards.
Olam began as a cashew trader, then moved into cocoa, coffee and spices, and now has suppliers, farms, factories and customers in 60 countries.
Mr Verghese said China was increasingly fulfilling its agricultural needs by importing more food – and saving its precious agricultural water resources.
About 20 per cent of Chinese agriculture’s water requirements were now satisfied by imports of crop and livestock products grown using another nation’s water reserves.
“China has 20pc of the world’s population, but only six per cent of its fresh water,” he said.
This year it imported soybeans for the first time – a scenario few could have imagined China doing 25 years ago.
China and India were extracting so much ground water to feed their thirsty industrial and agricultural sectors that ground water tables were dropping at the rate of three to six metres every year.
Increasingly water was also diverted to cities to supply industry and urban growth – today agriculture only accounted for 40pc of water use in China, Vietnam and India but enjoyed 80pc of water resources 30 years ago.
The emerging economies of Asia were not only eating more protein in the form of cereals, but also demanding more fat content in their diets.
Mr Verghese said Olam saw “sustainable value” in investing in agriculture.
Despite opportunities to diversify into other industries, the company maintained a strict focus on understanding and following agricultural commodities, which in turn gave it a close relationship with suppliers and the opportunity to find and support niche market opportunities paying premium prices.
He believed increasing opportunities for food and agriculture would foster a revival in research and development for the industry – including much more private capital.
TIAA acquires controlling interest in Westchester Group, Inc.
TIAA-CREF | October 04, 2010
Acquisition of Premier Agricultural Asset Manager Enhances Offering for Institutional Investors and Extends TIAA’s Leadership in Agricultural Investing
NEW YORK–(BUSINESS WIRE)– Teachers Insurance and Annuity Association of America (TIAA) has acquired a controlling interest in Westchester Group, Inc. (Westchester), one of the nation’s premier, independent agricultural asset managers. The transaction enhances TIAA’s agricultural investment platform for institutional investors and extends its leadership in agricultural investing. Financial terms of the transaction were not disclosed.
“TIAA and Westchester offer a fully integrated agricultural asset management platform that combines a broad global presence with world-class agricultural asset management,” said Scott C. Evans, head of asset management for TIAA-CREF. “Institutional investors will be able to tap TIAA’s expertise and prudent approach to investing and Westchester’s nearly 25 years of experience, on-the-ground presence, local knowledge and attention to quality properties in the U.S. and Australia. We invest in farmland with a long-term view that emphasizes growth through sustainable practices.”
By joining TIAA as a standalone subsidiary, Westchester remains independent and able to exercise its unique expertise and entrepreneurial approach. Randall Pope, Westchester’s president and chief operating officer, will become chief executive officer of the company. Murray Wise, Westchester’s founder and chief executive, will remain a board member and adviser. Westchester’s other investment professionals will continue with the company as well.
“TIAA and Westchester have complementary capabilities and a shared strategic focus on the future of agricultural investing,” said Mr. Pope. “Together, our experience and expertise will enable us to achieve the ownership and investment objectives of institutional clients, as well as attracting new institutional investment capital to the agricultural marketplace.”
TIAA is among the largest institutional investors in agriculture, with investments in more than 400 farms in North America, South America, Australia, and Eastern Europe as part of its General Account. Westchester, which has managed agricultural investments on behalf of TIAA since the inception of TIAA’s agricultural portfolio, manages more than $1 billion in agricultural assets and nearly 320,000 acres throughout the United States and Australia.
“We think the long-term outlook for the agricultural asset class is favorable,” said Jose Minaya, head of TIAA’s Natural Resources Group. “The scale and diversification of our holdings, and now the combined expertise of our company and Westchester will enable us to continue to identify the highest-quality investment opportunities. We also share a long-term view of agricultural investing that emphasizes responsible stewardship of farmland and a risk-managed approach.”
Farmland, with its historically stable returns, differs from other asset types in its market cycles and can potentially reduce volatility relative to a well-diversified portfolio of stocks, bonds and real estate as well as provide a hedge against inflation. TIAA employs a variety of structures in making its farmland investments, with a focus on acquiring equity ownership in the underlying land. The company employs or partners with premier agricultural asset managers to source farmland investment opportunities and then develop and manage the portfolio.
“This transaction shows that companies like Westchester can join TIAA and obtain the benefits of our integrated asset management platform while retaining their independence,” said Sheila Hooda, senior managing director of mergers & acquisitions for TIAA-CREF, who handled the transaction for the company.
Agricultural investments occur within TIAA’s General Account, an insurance company general operating account. The performance of the investments held in the TIAA General Account support the TIAA Traditional Annuity’s guarantees of principal, minimum guaranteed returns, additional amounts and payout obligations. The General Account primarily invests in corporate and government bonds, structured finance instruments, and real estate.
The TIAA General Account is an insurance company account and does not present an investment return, and is not available to investors.
About TIAA-CREF
TIAA-CREF (www.tiaa-cref.org) is a national financial services organization with $410 billion in combined assets under management (as of 6/30/10) and provides retirement services to the nonprofit and government fields.
About Westchester Group, Inc.
Westchester Group, Inc., (www.westchester-group.com), headquartered in Champaign, Illinois, is a leading agricultural asset management firm, providing a complete range of agricultural real estate and management services. The company specializes in portfolio management and acquisition of farmland for institutional and corporate clients, and individual farmers, as well as individual investors. Westchester manages a diverse range of crops for its clients, including corn, soybeans, almonds, wine grapes, apples and citrus.
Acquisition of Premier Agricultural Asset Manager Enhances Offering for Institutional Investors and Extends TIAA’s Leadership in Agricultural Investing
NEW YORK–(BUSINESS WIRE)– Teachers Insurance and Annuity Association of America (TIAA) has acquired a controlling interest in Westchester Group, Inc. (Westchester), one of the nation’s premier, independent agricultural asset managers. The transaction enhances TIAA’s agricultural investment platform for institutional investors and extends its leadership in agricultural investing. Financial terms of the transaction were not disclosed.
“TIAA and Westchester offer a fully integrated agricultural asset management platform that combines a broad global presence with world-class agricultural asset management,” said Scott C. Evans, head of asset management for TIAA-CREF. “Institutional investors will be able to tap TIAA’s expertise and prudent approach to investing and Westchester’s nearly 25 years of experience, on-the-ground presence, local knowledge and attention to quality properties in the U.S. and Australia. We invest in farmland with a long-term view that emphasizes growth through sustainable practices.”
By joining TIAA as a standalone subsidiary, Westchester remains independent and able to exercise its unique expertise and entrepreneurial approach. Randall Pope, Westchester’s president and chief operating officer, will become chief executive officer of the company. Murray Wise, Westchester’s founder and chief executive, will remain a board member and adviser. Westchester’s other investment professionals will continue with the company as well.
“TIAA and Westchester have complementary capabilities and a shared strategic focus on the future of agricultural investing,” said Mr. Pope. “Together, our experience and expertise will enable us to achieve the ownership and investment objectives of institutional clients, as well as attracting new institutional investment capital to the agricultural marketplace.”
TIAA is among the largest institutional investors in agriculture, with investments in more than 400 farms in North America, South America, Australia, and Eastern Europe as part of its General Account. Westchester, which has managed agricultural investments on behalf of TIAA since the inception of TIAA’s agricultural portfolio, manages more than $1 billion in agricultural assets and nearly 320,000 acres throughout the United States and Australia.
“We think the long-term outlook for the agricultural asset class is favorable,” said Jose Minaya, head of TIAA’s Natural Resources Group. “The scale and diversification of our holdings, and now the combined expertise of our company and Westchester will enable us to continue to identify the highest-quality investment opportunities. We also share a long-term view of agricultural investing that emphasizes responsible stewardship of farmland and a risk-managed approach.”
Farmland, with its historically stable returns, differs from other asset types in its market cycles and can potentially reduce volatility relative to a well-diversified portfolio of stocks, bonds and real estate as well as provide a hedge against inflation. TIAA employs a variety of structures in making its farmland investments, with a focus on acquiring equity ownership in the underlying land. The company employs or partners with premier agricultural asset managers to source farmland investment opportunities and then develop and manage the portfolio.
“This transaction shows that companies like Westchester can join TIAA and obtain the benefits of our integrated asset management platform while retaining their independence,” said Sheila Hooda, senior managing director of mergers & acquisitions for TIAA-CREF, who handled the transaction for the company.
Agricultural investments occur within TIAA’s General Account, an insurance company general operating account. The performance of the investments held in the TIAA General Account support the TIAA Traditional Annuity’s guarantees of principal, minimum guaranteed returns, additional amounts and payout obligations. The General Account primarily invests in corporate and government bonds, structured finance instruments, and real estate.
The TIAA General Account is an insurance company account and does not present an investment return, and is not available to investors.
About TIAA-CREF
TIAA-CREF (www.tiaa-cref.org) is a national financial services organization with $410 billion in combined assets under management (as of 6/30/10) and provides retirement services to the nonprofit and government fields.
About Westchester Group, Inc.
Westchester Group, Inc., (www.westchester-group.com), headquartered in Champaign, Illinois, is a leading agricultural asset management firm, providing a complete range of agricultural real estate and management services. The company specializes in portfolio management and acquisition of farmland for institutional and corporate clients, and individual farmers, as well as individual investors. Westchester manages a diverse range of crops for its clients, including corn, soybeans, almonds, wine grapes, apples and citrus.
Saudis to invest $500 million in Brazil agriculture
Qatar News Agency | Tuesday, 05 October 2010
Sao Paulo: Representatives of Saudi group Agro invest, a public-private agricultural investment company, are now in Brazil seeking partnerships for producing and exporting grain and poultry.
The group’s capital for investing abroad is US$ 500 million. “Brazil has lots of potential. It has good climate and good soil for grain and poultry farming. It is a good country to invest in,” said businessman Mohamed Abdullah Al-Rasheed, the president of Saudi Greenhouses, one of the companies in the Agro invest group.
Agro invest, also known as the International Agriculture and Food Investment Company, was established last year as part of a Saudi government project to ensure food security and help stabilize prices on the local market, according to Brazil-Arab News Agency.
According to Rasheed, activities should begin in 2011, and for such, we must get to know the agricultural opportunities that Brazil has to offer. “We want long-term partnerships,” he added.
Aside from Brazil, the group’s companies are eyeing African, Asian and European countries.
Agro invest’s main fields of interest are poultry, wheat, maize and soy. The group intends to establish several production-oriented partnerships both in Brazil and the Arab country.
As negotiations move forward, Rasheed claimed that the second step is sending a technical team to Brazil to assess the conditions for production and exporting.
Saudi Greenhouses is the leading greenhouse vegetable-growing enterprise in the Arab country.
“I am looking for a partner in melon production for distribution in Saudi Arabia,” said the entrepreneur, who has 74 hectares of greenhouses for growing cucumber, tomato, sweet pepper and eggplant.
The Saudi businessman met on Monday with Brazilian companies in a meeting organized by the Ministry of Agriculture, Livestock and Supply.
On the Brazilian side, the meeting was attended by the Association of Soy Growers of the State of Mato Grosso (Aprosoja), Ricardo Tomoczyk, who met with Saudis and claimed that they will do business for certain.
To the export manager of honey company Novo Mel, Carlos Rehder, and the director of trading company DGA, Gaspar Candioli, who maintain a partnership for selling soy and maize, the meetings were very good.
Both of them spoke with the president of Alsanie Trading, Abdullah Al-Sanie, who is looking for partners in the grain industry, especially soy and maize for animal feed.
The Alsanie group has four companies in Saudi Arabia. In the agricultural field, the group produces poultry and egg, and represents pharmaceutical products for animals, agricultural machinery and auto parts.
The group’s poultry company, Al-Wadi Poultry Farms, has five farms in the country and capacity for slaughtering over 35 million birds per year. Nevertheless, Sanie wants to establish a joint venture with a Brazilian company to produce more chicken and supply the Saudi market.
“The coming of the Saudi delegation was very important. High quality companies and important people have come to negotiate with Brazilian businessmen,” said the director of International Agribusiness Promotion at the Ministry of Agriculture, Eduardo Sampaio.
According to him, the soil, the climate and the abundance of water, coupled with the Brazilian technology and entrepreneurship, have led the country to become the leading producer and exporter of food, attracting investment opportunities.
Aside from purchasing land, Sampaio claimed that it is possible to invest in Brazil in different ways, such as contract farming, financial market mechanisms, stock market or partnerships.
Sao Paulo: Representatives of Saudi group Agro invest, a public-private agricultural investment company, are now in Brazil seeking partnerships for producing and exporting grain and poultry.
The group’s capital for investing abroad is US$ 500 million. “Brazil has lots of potential. It has good climate and good soil for grain and poultry farming. It is a good country to invest in,” said businessman Mohamed Abdullah Al-Rasheed, the president of Saudi Greenhouses, one of the companies in the Agro invest group.
Agro invest, also known as the International Agriculture and Food Investment Company, was established last year as part of a Saudi government project to ensure food security and help stabilize prices on the local market, according to Brazil-Arab News Agency.
According to Rasheed, activities should begin in 2011, and for such, we must get to know the agricultural opportunities that Brazil has to offer. “We want long-term partnerships,” he added.
Aside from Brazil, the group’s companies are eyeing African, Asian and European countries.
Agro invest’s main fields of interest are poultry, wheat, maize and soy. The group intends to establish several production-oriented partnerships both in Brazil and the Arab country.
As negotiations move forward, Rasheed claimed that the second step is sending a technical team to Brazil to assess the conditions for production and exporting.
Saudi Greenhouses is the leading greenhouse vegetable-growing enterprise in the Arab country.
“I am looking for a partner in melon production for distribution in Saudi Arabia,” said the entrepreneur, who has 74 hectares of greenhouses for growing cucumber, tomato, sweet pepper and eggplant.
The Saudi businessman met on Monday with Brazilian companies in a meeting organized by the Ministry of Agriculture, Livestock and Supply.
On the Brazilian side, the meeting was attended by the Association of Soy Growers of the State of Mato Grosso (Aprosoja), Ricardo Tomoczyk, who met with Saudis and claimed that they will do business for certain.
To the export manager of honey company Novo Mel, Carlos Rehder, and the director of trading company DGA, Gaspar Candioli, who maintain a partnership for selling soy and maize, the meetings were very good.
Both of them spoke with the president of Alsanie Trading, Abdullah Al-Sanie, who is looking for partners in the grain industry, especially soy and maize for animal feed.
The Alsanie group has four companies in Saudi Arabia. In the agricultural field, the group produces poultry and egg, and represents pharmaceutical products for animals, agricultural machinery and auto parts.
The group’s poultry company, Al-Wadi Poultry Farms, has five farms in the country and capacity for slaughtering over 35 million birds per year. Nevertheless, Sanie wants to establish a joint venture with a Brazilian company to produce more chicken and supply the Saudi market.
“The coming of the Saudi delegation was very important. High quality companies and important people have come to negotiate with Brazilian businessmen,” said the director of International Agribusiness Promotion at the Ministry of Agriculture, Eduardo Sampaio.
According to him, the soil, the climate and the abundance of water, coupled with the Brazilian technology and entrepreneurship, have led the country to become the leading producer and exporter of food, attracting investment opportunities.
Aside from purchasing land, Sampaio claimed that it is possible to invest in Brazil in different ways, such as contract farming, financial market mechanisms, stock market or partnerships.
Merchant Commodity Fund Swings Into Black In Sept.
Oct 6 2010 | 12:24pm ET
A commodity hedge fund managed by a pair of former Cargill traders is making a bid for a seventh-straight positive year.
The Merchant Commodity Fund erased its year-to-date loss in September, rising 12.7% on the month. The fund is now up 7.5% in 2010, Bloomberg News reports. The $1.1 billion agriculture and energy fund is headed by Michael Coleman, based out of Singapore, and Doug King, who works in Zug, Switzerland.
Merchant Commodity returned 5.2% last year and 24% in 2008.
The average hedge fund returned between 3% and 3.5% last month, according to industry indices. The Standard & Poor's 500 Index rose 8.9% in September
A commodity hedge fund managed by a pair of former Cargill traders is making a bid for a seventh-straight positive year.
The Merchant Commodity Fund erased its year-to-date loss in September, rising 12.7% on the month. The fund is now up 7.5% in 2010, Bloomberg News reports. The $1.1 billion agriculture and energy fund is headed by Michael Coleman, based out of Singapore, and Doug King, who works in Zug, Switzerland.
Merchant Commodity returned 5.2% last year and 24% in 2008.
The average hedge fund returned between 3% and 3.5% last month, according to industry indices. The Standard & Poor's 500 Index rose 8.9% in September
10/04/2010
Les terres rares deviennent une ressource indispensable
Par Nathanael Gabay*
Encore relativement méconnus, ces métaux non ferreux sont bien partis pour être le thème d’investissement des prochaines années.
Les terres rares regroupent, sous ce terme que d’aucuns jugeront inapproprié, 17 métaux non ferreux (dont le scandium, l’yttrium, le lanthane, par exemple) aux propriétés chimiques uniques et non substituables, parmi lesquelles l’amplification des couleurs, la réfrigération magnétique ou l’amélioration de la transmission des lasers. Dans les faits, ces molécules sont devenues indispensables à l’industrie de pointe et aux technologies du futur. On en trouve ainsi dans les écrans LCD et les téléphones portables, mais également dans les ampoules à basse consommation, les voitures électriques et les éoliennes. Les terres rares sont considérées comme une ressource clé dans le développement de l’industrie verte. A titre d’exemple, un véhicule hybride contient entre 15 et 16 kilos de terres rares et une éolienne offshore en nécessite plus de 600 kilos! La technologie militaire se développe également à partir des performances des terres rares. La haute précision des missiles dits «intelligents» a ainsi été possible grâce à la superpuissance des aimants composés de l’alliage samarium-cobalt. Cette dépendance des technologies civiles et militaires à l’égard des terres rares en a fait une ressource stratégique pour toutes les grandes nations industrialisées.
Le contexte économique actuel est particulièrement favorable à une envolée du prix des terres rares. En effet, l’offre actuelle (125 000 tonnes) peine à satisfaire une demande mondiale qui explose (134 000 tonnes, selon les chiffres 2009 de Lynas) et alimente la hausse des prix de la plupart des métaux rares. Ainsi le néodyme, qui est utilisé dans les moteurs hybrides et les éoliennes, a vu son prix multiplié par quatre en deux ans. Mais le principal facteur d’une explosion des prix des terres rares tient à la structure de production extrêmement concentrée. En effet, grâce à une ambitieuse politique d’investissements entamée au milieu des années 80, la Chine s’est constitué un quasi-monopole sur ce marché et fournit actuellement 95% des besoins mondiaux. Cette position dominante permet à la Chine de pousser les prix à la hausse grâce à une politique de restriction des exportations et de taxes à l’export. Et on a vu ces dernières semaines la dimension stratégique des métaux rares. En effet, lors des tensions diplomatiques entre la Chine et le Japon mi-septembre, les terres rares se sont révélé un outil de pression pour Pékin. Menace sérieuse pour l’industrie japonaise lorsqu’on sait que la Toyota Prius et les écrans LCD de Sony ne pourraient exister sans europium et thulium.
Doit-on alors craindre une bulle? Cela semble peu probable car les réserves mondiales de terres rares, estimées à près de 100 millions de tonnes (selon le US Geological Survey) et réparties sur l’ensemble du globe, sont largement suffisantes pour accompagner la progression de la demande. Malgré son leadership actuel, la Chine possède à peine 35% des terres rares extractibles et de nombreux gisements occidentaux ne sont pas exploités. Européens et Américains, principaux transformateurs de métaux rares, semblent donc attendre la montée des prix ou la nécessité de sécuriser leur approvisionnement pour lancer de vastes plans d’investissements miniers sur leur propre territoire.
Dans une situation de frictions entre l’offre et la demande et d’un producteur décidé à faire monter les prix, comment l’investisseur peut-il profiter du potentiel fortement haussier de ce marché? Contrairement à la majorité des métaux précieux tels que l’or ou l’argent, il n’existe pas pour les terres rares de marché à terme organisé tel que le Nymex. De plus, les sociétés spécialisées dans l’extraction de terres rares sont très majoritairement étrangères et non cotées sur les places boursières européennes, ce qui les rend difficiles d’accès pour les investisseurs suisses. Pour y remédier, la société Solactive® a créé un indice thématique sur les entreprises extractrices de terres rares, le Solactive® Rare Earths Performance-Index. Il suit la performance de sept à neuf valeurs parmi une liste d’une quinzaine d’entreprises dont l’activité principale est liée aux terres rares. L’indice est pondéré selon la capitalisation boursière des constituants et rebalancé tous les trimestres afin d’éviter une perte de liquidité due à un rachat ou une fusion. En Suisse, l’indice Solactive® Rare Earths Performance-Index est investissable à travers le Certificat Tracker (ISIN: CH0112278558) émis par EFG Financial Products. Il permet de suivre l’indice tant à la hausse qu’à la baisse et s’adresse donc à des investisseurs avisés en raison du risque de perte en capital. Lancé en juillet 2010, ce certificat a déjà tenu toutes ses promesses avec une progression de 83% en seulement deux mois (au 17 septembre)!
* Conseiller en investissements, EFG Financial Products AG.
Encore relativement méconnus, ces métaux non ferreux sont bien partis pour être le thème d’investissement des prochaines années.
Les terres rares regroupent, sous ce terme que d’aucuns jugeront inapproprié, 17 métaux non ferreux (dont le scandium, l’yttrium, le lanthane, par exemple) aux propriétés chimiques uniques et non substituables, parmi lesquelles l’amplification des couleurs, la réfrigération magnétique ou l’amélioration de la transmission des lasers. Dans les faits, ces molécules sont devenues indispensables à l’industrie de pointe et aux technologies du futur. On en trouve ainsi dans les écrans LCD et les téléphones portables, mais également dans les ampoules à basse consommation, les voitures électriques et les éoliennes. Les terres rares sont considérées comme une ressource clé dans le développement de l’industrie verte. A titre d’exemple, un véhicule hybride contient entre 15 et 16 kilos de terres rares et une éolienne offshore en nécessite plus de 600 kilos! La technologie militaire se développe également à partir des performances des terres rares. La haute précision des missiles dits «intelligents» a ainsi été possible grâce à la superpuissance des aimants composés de l’alliage samarium-cobalt. Cette dépendance des technologies civiles et militaires à l’égard des terres rares en a fait une ressource stratégique pour toutes les grandes nations industrialisées.
Le contexte économique actuel est particulièrement favorable à une envolée du prix des terres rares. En effet, l’offre actuelle (125 000 tonnes) peine à satisfaire une demande mondiale qui explose (134 000 tonnes, selon les chiffres 2009 de Lynas) et alimente la hausse des prix de la plupart des métaux rares. Ainsi le néodyme, qui est utilisé dans les moteurs hybrides et les éoliennes, a vu son prix multiplié par quatre en deux ans. Mais le principal facteur d’une explosion des prix des terres rares tient à la structure de production extrêmement concentrée. En effet, grâce à une ambitieuse politique d’investissements entamée au milieu des années 80, la Chine s’est constitué un quasi-monopole sur ce marché et fournit actuellement 95% des besoins mondiaux. Cette position dominante permet à la Chine de pousser les prix à la hausse grâce à une politique de restriction des exportations et de taxes à l’export. Et on a vu ces dernières semaines la dimension stratégique des métaux rares. En effet, lors des tensions diplomatiques entre la Chine et le Japon mi-septembre, les terres rares se sont révélé un outil de pression pour Pékin. Menace sérieuse pour l’industrie japonaise lorsqu’on sait que la Toyota Prius et les écrans LCD de Sony ne pourraient exister sans europium et thulium.
Doit-on alors craindre une bulle? Cela semble peu probable car les réserves mondiales de terres rares, estimées à près de 100 millions de tonnes (selon le US Geological Survey) et réparties sur l’ensemble du globe, sont largement suffisantes pour accompagner la progression de la demande. Malgré son leadership actuel, la Chine possède à peine 35% des terres rares extractibles et de nombreux gisements occidentaux ne sont pas exploités. Européens et Américains, principaux transformateurs de métaux rares, semblent donc attendre la montée des prix ou la nécessité de sécuriser leur approvisionnement pour lancer de vastes plans d’investissements miniers sur leur propre territoire.
Dans une situation de frictions entre l’offre et la demande et d’un producteur décidé à faire monter les prix, comment l’investisseur peut-il profiter du potentiel fortement haussier de ce marché? Contrairement à la majorité des métaux précieux tels que l’or ou l’argent, il n’existe pas pour les terres rares de marché à terme organisé tel que le Nymex. De plus, les sociétés spécialisées dans l’extraction de terres rares sont très majoritairement étrangères et non cotées sur les places boursières européennes, ce qui les rend difficiles d’accès pour les investisseurs suisses. Pour y remédier, la société Solactive® a créé un indice thématique sur les entreprises extractrices de terres rares, le Solactive® Rare Earths Performance-Index. Il suit la performance de sept à neuf valeurs parmi une liste d’une quinzaine d’entreprises dont l’activité principale est liée aux terres rares. L’indice est pondéré selon la capitalisation boursière des constituants et rebalancé tous les trimestres afin d’éviter une perte de liquidité due à un rachat ou une fusion. En Suisse, l’indice Solactive® Rare Earths Performance-Index est investissable à travers le Certificat Tracker (ISIN: CH0112278558) émis par EFG Financial Products. Il permet de suivre l’indice tant à la hausse qu’à la baisse et s’adresse donc à des investisseurs avisés en raison du risque de perte en capital. Lancé en juillet 2010, ce certificat a déjà tenu toutes ses promesses avec une progression de 83% en seulement deux mois (au 17 septembre)!
* Conseiller en investissements, EFG Financial Products AG.
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