29 Mar 2012As the world’s population increases, the available arable land is diminishing. Land that produces food (plants and meat) is valuable, and will become even more so. Therefore food-producing land should be in every serious, long-term investment portfolio.
This is a simplification of detailed research undertaken by London-based Absolute Return Partners .
The African continent is given as one of the many examples of regions where, in some countries, annual cash returns on farming reach 25%- 30% . This has implications for many SA companies. Setting aside the complex trade in commodity futures like maize and wheat, the JSE features a number of food- producing businesses that own land, as well as companies that supply them.
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