The production of food must increase by 70% if we are to sustain a global population that will reach nine billion by 2050. Agribusiness, Food & Water (AF&W) aims to contribute to a sustainable solution by financing companies throughout the agribusiness value chain, pursuing investments that promote long-term food security.
We take a global value chain approach when investing in farming, processing and distribution, with the goals of improving farming practices, increasing yields and reducing waste.
All sectors have their own dilemmas and challenges, but in our experience agriculture can be particularly complex. Financing primary agriculture and livestock carries a range of risks, including pricing, seasonality and disease. Furthermore, NGOs tend to be particularly critical of the agricultural projects we finance, due to the sensitivity of issues such as animal welfare, land-grabbing, community involvement, food security, financing of large scale farming at the expense of small land owners, use of GMO seeds, usage of (scarce) water and the cultivation of food for fuel.
FMO continues to take a highly selective approach to choosing clients. We also bring much added value to deals when it comes to social and environmental issues, which can pose major challenges in the agricultural industry.