Duxton’s Agri Bits and Pieces – Vol. 323

 

 

QUOTE OF THE WEEK

This week’s quote comes from Michael Dean, a co-founder of the world’s largest agricultural crowd equity platform AgFunder and highlights what he feels is a current gap in Australia’s agriculture sector.

“Our farmers are among the best in the world, yet the industry isn’t getting the support and funding that it needs to drive technology innovation to boost farm efficiency and productivity…On a per capita basis, Australia spends 32 times less than the USA on agricultural venture capital.”

 

OLIVE OIL PRICES ARE GOING THROUGH THE ROOF

Hoarding oil of a new kind after terrible harvests in Italy, Spain and Greece.

Now erratic weather in Spain and Italy, the world’s biggest producers, is rippling through global olive oil markets, and it’s about to get worse. Prices for extra virgin olive oil in Italy have soared almost one-third since October to €5.75 ($6.15) a kilogram, while Spanish costs jumped about 10%, according to the International Olive Council in Madrid. The forecasters at Mintec…

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Duxton’s Agri Bits and Pieces – Special Report

S&P GSCI Agriculture Inflation-Adjusted Index

As shown in the graph below, the S&P GSCI Agriculture Inflation-Adjusted Index is currently at its lowest level since the inception of the index. Since its peak in September 1974, the index has declined 5.3% p.a.

Source: Bloomberg
Inflation Adjusted Price of Wheat

As shown in the graph below, the inflation adjusted price of wheat per tonne is currently the lowest it has been on record. As the market proverb goes “the best cure for low prices is low prices” and as such, the USDA reports that this year’s USA wheat planting will be the lowest since 1882. Driven by these dynamics, the World Bank is predicting an increase in wheat prices over the next 10 years.

Source:…

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Duxton’s Agri Bits and Pieces Vol. 322

 

QUOTE OF THE WEEK

This week’s quote comes from AgFunder’s AgTech Investing Report 2016 and provides an insight into where AgTech deals are taking place and the challenges facing AgTech start-ups.

“While there has been an increase in deal reporting from around the globe, deal activity has picked up outside of the US and 51 countries were represented in this year’s data…Accelerators around the globe will give rise to greater geographic diversity. In the past year, start-up resources launched in geographies such as Australia, Argentina/Uruguay, Brazil, and Eastern Europe to help incubate local companies, with many designed to tackle local market challenges. Scaling those companies and providing them with resources will be an obstacle, but not insurmountable…Investment activity remained local: investors tended to fund start-ups in their geographies with fewer investors stretching across borders.”

ANALYSTS FORECAST FARMER MILK PRICES WILL INCREASE NEXT SEASON

Despite a stalling world market, analysts are…

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