Investing in Australian agriculture can be a natural inflation hedge driven by growing non-discretionary spending. Why?
Demand for Australian grown fresh food and other quality agricultural products is forecast to increase materially over the next 10 years, driven by middle class population and income growth in both local and offshore markets.
Technology and farming practice advancements in the industry are driving labour productivity, increasing yields and decreasing wastage leading to higher revenues across the sector.
Protected cropping allows for year-round, more predictable output, mitigating key risk in farming.
High quality and reliability of Australian agricultural products has created demand in high valued global markets.
Exports forecast to increase materially led by demand for premium food products potentially to grow by 55% to 2030.
ESG opportunities within the agricultural real estate sector are disproportionately greater than other real estate asset classes.
How can Australian investors access this opportunity?
The Centuria Agriculture Fund is an open-ended unlisted property fund that aims to provide Investors with stable income returns and the potential for capital growth by investing in a diversified agricultural property portfolio. Kelvin McKeown is Centuria’s Agricultural Fund Manager, responsible for sourcing and overseeing three unlisted funds with fourteen properties ranging from fruit, nut and citrus orchards, to vineyards and glasshouses, across Australia’s eastern seaboard.
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