This is the article my friend Kazu, CEO of Framgia, posted on his facebook “Why an agriculture that is decreasing in Japan is considered as growing industry in the world?”
http://blogos.com/outline/102779/ (The source is from Economist magazine)
As I begin to have my eyes on agriculture and investment 3 years ago, I have given opportunities to do my presentation to people. To wrap my up presentation it says that the world population is estimated to reach 10 billion but farm land to produce food (Include to produce feed grains) for such population is decreasing each year. So, it means that some investing people are already going for the position to grab farm land. My presentation say basically like that. And some datas actually shows high return in farm land investment. For example the data below. It indicate the price of farm land and the shift of real estate price in the U.S.
(Top bars shows the shift of farm land price. Bars at down shows the shift of real estate price)
In last 10 years, notorious financial crisis that caused by burst of subprime loan in the U.S occurred and effected to the world. It traced overbrilliant downfall in the shift of real estate price. However, farm land price which as well was taking a part of financial bubble that thought to go down actually kept rising. Money goes to where money is. Because the price goes up, more purchase comes in, then it increases the price more. It not only happening in the U.S but also in South America and Africa and of course in Asia where I am currently in.
The tycoon Jim Rogers once said “Must purchase the farm where has rains and let the farmers who knows the job to work. If you do so, you can double the profit since a price of crop itself are increasing”. This is exactly why we came to Cambodia and find farm land then do agriculture. Well, but as I have been writing in my blog, it just isn’t that easy to do farming in developing country though.
However in these 3 years, I have learned a lot from my experience and feel that I now could latch onto the point where I can produce the result and to do so where I need to push. And I also can see what is fatally lacking as well. While I have been working my project, agriculture sector is getting more attention and more player is coming in. It I say just the best timing for us.
In this agricultural sector that shall be much more interesting from here, I want to set my motto that I will play with the highest technology In the place where the technology is the least developed.
Well, it is not that I’m just playing with my drone all the time. Hehe! But I do not deny that I most of the time enjoy and get excited with my project as kid plays his toy, but I just kinda want to change lame and old image of agriculture. Y’all know what I’m sayin?
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