News 231 views last update:6 Aug 2012

Rabobank forecast: growth in food and agri

Large investments in agriculture and related sectors are to be expected states the Rabobank in its new report "The Boom beyond Commodities".

The demand for the "four F's" - Food, Feed, Fibre en Fuel – is increasing worldwide. This is putting more pressure on agriculture, which will lead to more investments, according to the report. In addition, the Rabobank sees a global improvement of transport networks and more accessibility of countries that have rich natural sources - and used to be more closed for other countries.

Growth in Asia
Despite the recent shake ups in the world economy, which resulted in high food prices, food companies and agricultural companies will grow in the coming years. Especially companies in Asia will experience a rapid growth. This is mainly due to the rapid growth in population, wealth and urbanisation of this region. Other substantial growth opportunities lay in the dairy, food processing and energy crops among others.

Bio energy crops
Industries related to the production of biofuels also need more energy crops in the future, although the authors are reserved with any predictions for the coming years. This is because the market for energy crops now has an over capacity, the policy is not clear and some consumer groups raise questions whether these industries are sustainable enough to pursue their activities in bio energy.

The 18 million tonnes of extra energy crops demanded in 2012 will come for 60% from bio fuel companies and 40% will be demanded by the feed and food industry.

Related websites:
Report The Boom beyond Commodities  

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