Digging into Agriculture’s Growth: A Lot below the Surface

Abstract

Strong underpinnings for sustained growth in demand for agricultural products are enticing private equity firms to seek exposure to the industry. But the opportunities among geographic markets globally are uneven, with a variety of competitive dynamics, local wealth and tastes, infrastructure, and government policies all combining to create wide variations in attractiveness among potential geographic markets. With so many countervailing factors at work, it’s tough to make informed judgments about which ventures are most likely to succeed and which are not. This article seeks to put some structure around this evaluation, outlining key factors that should be considered.

TOPICS: Private equity, commodities, global, fundamental equity analysis