Agricultural investment in the headlines
        Agricultural investment in the headlines
    Saudi Investors to Put $100m into Ethiopian Farm (Fortune, 15.4.2009)
                                     (Fortune, 15.4.2009)
    Saudi Investors to Put $100m into Ethiopian Farm 
    Saudis Set Aside $800m to Secure Overseas Food (Financial Times, 15.4.2009)
    Saudis Set Aside $800m to Secure Overseas Food (Financial Times, 15.4.2009)
    UAE Stepping Up Agricultural Investment in Sudan (Sudan Tribune, 7.8.2008)
    UAE Stepping Up Agricultural Investment in Sudan (Sudan Tribune, 7.8.2008)
    Food Is Gold So Billions Invested in Farming (New York Times, 5.6.2008)
    Food Is Gold So Billions Invested in Farming (New York Times, 5.6.2008)
    Daewoo Leases African Plantation (BBC, 19.11.2008)
    Daewoo Leases African Plantation (BBC, 19.11.2008)
    Land Leased to Secure Crops for South Korea (Financial Times, 18.11.2008)
    Land Leased to Secure Crops for South Korea (Financial Times, 18.11.2008)
    Korea’s Daewoo Logistics Leases Madagascar Land for Feed, Fuel 
    Korea’s Daewoo Logistics Leases Madagascar Land for Feed, Fuel 
      (Bloomberg, 18.11.2008)
      (Bloomberg, 18.11.2008)
    Short of Food? Rent Half a Country (New York Times, 19.11.2008)
    Short of Food? Rent Half a Country (New York Times, 19.11.2008)
    Pakistan Offers Farmland to Foreign Investors (Reuters, 20.4.2009)
    Pakistan Offers Farmland to Foreign Investors (Reuters, 20.4.2009)
    UN Warns Of Neo-Colonialism (Financial Times, 19.8.2008)
    UN Warns Of Neo-Colonialism (Financial Times, 19.8.2008)
    Manufactured Famine: A New Wave of Food Colonialism Is Snatching Food 
    Manufactured Famine: A New Wave of Food Colonialism Is Snatching Food 
      from the Mouths of The Poor (Guardian, 26.8.2008)
      from the Mouths of The Poor (Guardian, 26.8.2008)
    Dispute Erupts Over Plans to Invest Millions in Rice Farming (Economist, 
    Dispute Erupts Over Plans to Invest Millions in Rice Farming (Economist, 
      23.4.2009)
      23.4.2009)
                    Outline
                    Outline
    Recent trends and patterns in 
     Recent trends and patterns in 
     international investments in 
     international investments in 
     agriculture 
     agriculture 
    Motivations for international 
     Motivations for international 
     investments in agriculture
     investments in agriculture
    Impacts of international investments 
     Impacts of international investments 
     in agriculture
     in agriculture
    Policy implications
     Policy implications
    Outstanding issues
     Outstanding issues
         Recent investment trends and 
         Recent investment trends and 
                          patterns
                          patterns
     focus on investment for agricultural production 
       focus on investment for agricultural production 
     available information – WIR, media – plans versus 
       available information – WIR, media – plans versus 
       realized investments, inadequate national 
       realized investments, inadequate national 
       statistics
       statistics
     not a new development but is there an increasing 
       not a new development but is there an increasing 
       trend (land grab)?
       trend (land grab)?
     who are the investors? private sector 
       who are the investors? private sector 
       (agribusiness, investment companies, trading 
       (agribusiness, investment companies, trading 
       companies, mining companies), governments, 
       companies, mining companies), governments, 
       sovereign funds – Arab States, China
       sovereign funds – Arab States, China
     destinations of investment flows – Africa, S.E. Asia 
       destinations of investment flows – Africa, S.E. Asia 
       but also S. America
       but also S. America
        Recent investment trends and 
         Recent investment trends and 
                        patterns
                         patterns
     nature of investments – land acquisitions 
      nature of investments – land acquisitions 
      predominate?
      predominate?
     many land acquisitions in excess of 10 000 
      many land acquisitions in excess of 10 000 
      ha and up to 1 million ha
      ha and up to 1 million ha
     examples
      examples
       land acquisition – UAE in Pakistan
         land acquisition – UAE in Pakistan
       contract farming – horticulture in East Africa
         contract farming – horticulture in East Africa
       traditional FDI - Chiquita bananas in Mozambique
         traditional FDI - Chiquita bananas in Mozambique
       mixed models – sugar in Southern and East Africa
         mixed models – sugar in Southern and East Africa
     vertical integration against recent trends in 
      vertical integration against recent trends in 
      FDI
      FDI
      Motivations – investing countries
      Motivations – investing countries
     Motivations depends on investor – 
      Motivations depends on investor – 
      private sector, government, sovereign 
      private sector, government, sovereign 
      funds
      funds
     food security 
      food security 
      (worsening) natural resource constraints – 
        (worsening) natural resource constraints – 
        land and water
        land and water
      international trade policies and the 
        international trade policies and the 
        reliability of international markets
        reliability of international markets
     biofuel production
      biofuel production
     portfolio diversification – financial gain
      portfolio diversification – financial gain