Vertical Integration, Foreign Investment & Global Supply

The global agribusiness industry has very strong fundamentals. From the global demographic growth of more than 1.0% annually, which will require additional food resources to feed a growing population, to the growing middle class demand for high quality foodstuffs throughout the developing world, agriculture will continue to be an industry central to economic development. Nevertheless, agribusiness needs more investment, larger degrees of vertical integration, and technological research in order to feed evermore people with a diminishing amount of land and resources.

Therefore, many international and foreign investors are increasingly drawn by the high growth and returns opportunities offered by the agribusiness sector. Conventional investment vehicles usually offer institutional investors the opportunity to get in on the wholesale portion, the processing step, or the distribution channels. However, it can sometimes be hard to find the right entry point along the food and agriculture supply chain. Furthermore, joining the long supply chain of the global food and agriculture industry does not necessarily offer large returns because the spread margin is diluted by a handful of intermediary companies from the aggregator to the bulk breaker.

Vertical Integration, Foreign Investment & Global Supply

Now, imagine an investment opportunity that gave you the chance to own the supply in the form of agricultural real estate. Additionally, imagine having a competitive pricing edge by skipping most of the intermediaries. Having an above average product, a competitive retail price, and keeping more of your spread as earnings: this is what Farmfolio is offering. Through its unique and sustainable agricultural projects in Latin America, Farmfolio is catering high quality products to niche markets and cutting through the global supply chain by going straight from the farm to local markets around the world.

By supporting Farmfolio’s projects, international investors are contributing to small and mid-sized family farms that are committed to the best agricultural practices, such as agroforestry, as well as to the community that they serve. Furthermore, Farmfolio seeks to empower a wider global movement engaged in shortening the distance between farms and the tables in family’s homes.

This is why, through Farmfolio’s initiatives in Colombia, our CEO Dax Cooke wants international investors to capitalize on agriculture as a unique natural resource by way of a new and innovative asset class. Farmfolio’s Farmshare offerings contribute socially and economically to the Latin American communities where they are settled by empowering them to grow and upscale their entrepreneurial vision. In this sense, Farmfolio’s investment model is unprecedented when it comes to foreign investment because it provides for innovative, sustainable, and responsible economic development in emerging markets.

(Read more about International Trade and Fruit Production in Chile)