Great believers in the diversification of investment portfolios, Emergis invite both private and institutional investors alike to get involved in a brand new asset class.
Emergis are offering the opportunity to invest in fertile arable land used to harvest various crops in rotation for both human consumption and bio fuel production.
Investors will receive an annual income from the harvest of crops and capital gains on the increasing value of the land.
The smartest of investors are turning to this sector right now – why? Supply and demand!
- Increase in world population = increase in demand (Approximately 150 additional mouths to feed every minute)
- Global warming concerns = pressure to produce more biofuels
- Demand for soft commodities higher than ever!
- Supply remains stagnant
- Production of grains at a historical 30 year low however consumption continues to grow
- Record high of 35 million tonnes in 2008
- Significant gap between supply and demand has emerged
As a result of this gap institutions have been quick to take advantage and poured £8 billion into agricultural land despite the current economical downturn, safe in the knowledge that as with everything in life, if there is a shortage of supply and demand is high, then prices historically increase significantly!
Why Invest?
- Ukraine is known as the "bread basket of Europe" namely for the fact that 70% of its land is arable, and it has 40% of all rich black earth soil in the world
- The global wheat price reached a massive US$247 on 10th June 2009, and is projected to be US$270 per tonne by May 2011
- The price of agricultural land in the Ukraine is forecasted to double in 2009 from US$1,500 a hectare, and then continue to increase by 28% per annum (areas such as Western Europe are overpriced and offer land at around US$13,200 – US$32,200 per hectare)
- You can do your bit for the environment. Crops such as wheat and rapeseed are being used for biofuels production
- Located at the crossroads of east-west and north-south trade routes, Ukraine is an ideal platform for exporting to both Russia and the EU.
