Food and Agri-Business

Today's dinner tables looks very different than ever before. Fueled by the demand for unique dietary needs, consumers use technology to select what they eat.

The food and agribusiness segment have a massive economic, social, and environmental footprint with an industry value of over $5 trillion. The industry represents 10 percent of global consumer spending, 40 percent of employment, and 30 percent of greenhouse-gas emissions. Although sizable productivity improvements over the past 50 years have enabled an abundant food supply in many parts of the world, feeding the global population has reemerged as a critical issue. If current trends continue, by 2050, caloric demand will increase by 70 percent, and crop demand for human consumption and animal feed will increase by at least 100 percent.

Moreover, food and energy production are competing, as corn and sugar are increasingly important for both. Agricultural technologies that raise productivity even in difficult conditions and the addition of land for cultivation in Africa, Eastern Europe, and South America may ease the burden, but meeting the entire demand will require disruption of the current trend.

Sensing an opportunity, strategic and financial investors are racing to capture value from technological innovation and discontinuities in food and agriculture. Since 2004, global investments in the food-and-agribusiness sector have grown threefold, to more than $100 billion according to McKinsey analysis. Food-and-agribusiness companies on average have demonstrated higher total returns to shareholders than many other sectors.

However, finding the right investment opportunity is not easy. Food-and-agribusiness investing requires a deep understanding of specific crops, geographies, and complex value chains that encompass seeds and other inputs, production, processing, and retailing. Many of the relevant investment opportunities are in geographies unfamiliar to some investors, and their profitability rests not only on crop yields but also on how different parts of the value chain perform.

The Dopkins accounting team have extensive experience in this critically important industry and can help you assess the opportunities and ensure peak performance.

For more information, please contact Jay McWatters at jmcwatters@dopkins.com.