Agriculture and food supply chain are better investment than property

Table showing cattle verses property investment

Agriculture and food supply chain are better investment than property

Australia’s population is growing by an extraordinary rate. Over the next two years there will be over 1.3 mil added to the population according to government’s own stats – over 750,000 immigration and net growth after deaths of approx. 600,000 – yes, that is in excess of 1.3 mil over the next 2 years and, then 600,000+ per year following after that. The population is on a trajectory to easily reach 30 mil by 2030.

Two main markets are underpinned by these drivers: THE FOOD SUPPLY CHAIN and PROPERTY. Everyone knows about investing in property, right? But many don’t know that agriculture, a primary part of the food supply chain delivers an average of 3-9 times higher returns than property. The other factor many investors are not aware of is that cattle operations and property can be considered similar conservative risk. Or, is property more risk now?

Consider this: Building is reliant on land, tradesmen, and materials. Land can’t be exploited where there are not enough tradies or materials to complete projects as is a major problem in Australia with no end in sight. Many builders are not making money and cannot survive with either of these being scarce. Consensus data and reports are showing investors are losing in property or can’t find or complete projects. How will the burgeoning population growth further affect the building industry? These high growth population numbers add to the 400,000 houses already under-supplied, the low rental availability, and that about 85% of immigrants will want to rent. We are certainly facing a massive change and challenges in Australia’s social and economic structure.

The facts are that housing and property are actually now precarious. There are well justified question marks over the risk:return viability of investing into a market where the project cannot be realized and the environment is making it untenable for the foreseeable future.

Not so with agriculture – agriculture is booming, and in the top few sectors being the strongest and in most demand is beef cattle operations. The pinnacle of this market is ethical regenerative organic farming.

Cattle, have variables in pricing and profits, but these are offset by an incredible exponential factor, and profitability is robust. Cattle are now arguably less risky than property. What’s more, is the industry thrives on population growth because this equates to food demand.

Underpinned by these drivers, add the exponential growth of a quality breeding herd operation, and the outcomes for investors are 2-5 times over 5 years and 6-9 times better than property over 10 years. FACT!

The barrier to entry in agriculture, especially beef is high – it costs a large amount of money to be in agriculture. However, Green Agriventures has overcome these high entry barriers with our model which works for all involved: farmer, investor and end consumer.

Investors can now own their own herd that Green Agriventures manage on our farms, and access above average returns in this conservative risk profile investment.