Jim Rogers started trading the stock market with $600 in 1968.In 1973 he formed the Quantum Fund with the legendary investor George Soros before retiring, a multi millionaire at the age of 37. Rogers and Soros helped steer the fund to a miraculous 4,200% return over the 10 year span of the fund while the S&P 500 returned just 47%.

Tuesday, July 21, 2009

Farmland investing in South America Real Opportunities

Agricultural Outsourcing


we know that Jim Rogers is very bullish on farming and agriculture in general , the following video presents the potential of farming investments in the Mercosur countries where there is still plenty of fertile and cheap land to grab , George Soros the co founder of quantum fund with Jim Rogers is already there , this should tell you something I guess , knowing how smart Soros is and always ahead of the trends ...although the video is geared towards potential investors from the sub Indian continents , it is full of very useful data and information about the Mercosur Farmland investing Brazil Argentina Chile Paraguay and Uruguay all have plenty of cheap fertile land to sell to foreign investors ...although the crisis is hitting worldwide the price of food continue to grow and are expected to explode with huge demand coming from two big developing markets China and India ...
Latin America farmland investment highlights:
Prices have fallen due to the global crisis; good entry point in 2009 for long-term investors.
Farmland Prices are even lower than those in punjab and tamilnadu
Productivity in Argentina/Brazil/Uruguay is three times compared to that in India, in the case of some crops like soy.
No unskilled labour problem since everything is mechanized and outsourced; 1000 hectare farm can be managed by 3 to 4 subcontracted workmen.
Use of latest agricultural machines and equipment; skilled agronomists and farm managers available.
No water problem.. South America has 20% of world freshwater reserves.
Logistics, warehouse and transportation world class
Clear land titles; low population density means no land squatters.
No limits on size of foreign land holdings.

Context:
India has been importing more than billion dollar worth soy oil and sunflower oil from south America every yr
India also buys wheat and sugar from time to time
India needs to invest in farmland overseas as it is doing in the case of petroleum fields. Issue of food security.
In India, population increases by 15-18 million every year, adding a new Argentina every 32 months, new Brazil every 10 years. Farmland area is diminishing due to expanding industry, commerce and residences
Contract farming - can grow soya, wheat,sunflower, peanut, beans and pulses, sugarcane, jatropha and take output to india in raw or processed forms
Food processing - setup/acquire oilseed crushing, fruit/vegetable processing facilities
Think Agricultural Outsourcing - just like India in software, China in hardware - South America in agriculture


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Jim Rogers "the 19th century was the century of the UK , the 20th century was the century of the US , the 21 st century is going to be the century of China "
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