Consumer demand for regenerative and organic agriculture is surging and the grass-fed and organic beef niche is the highest growth market.
After the recent drought conditions the Australian herd is still being rebuilt which contributed to higher prices and demand. Many cattle are withheld from sales so farmers can increase their herds. There are more lot-fed animals available because they are quicker to grow – the goal is get the animals fat on any modified product or medication that achieves this. However, there is under supply for the demand for grass-fed and finished cattle which are raised in a different value system – the goal is ethical, quality and health.
Beef farming across the board has proven to be viable, profitable, and economically resilient – it is underpinned by very strong market drivers. One of these is that consumers are becoming more health conscious and wanting to be connected to authentic holistic food sources.
The growth in the population of Australia is well over 400,000 per year to reach 30 million by 2030. In addition, the rise of middle class consists of 41% in Asia which has close proximity to Australian product. These are only some of the key factors directly relating to the burgeoning growth in consumption and sales of beef which is the preferential source of protein worldwide.
Australian livestock farms are either booming or doing very well. The average income on Aussie livestock farms has increased by over 50% since 2019-2022 and profitability by over 100%. Returns for cattle are matching or beating increases in costs and this is opening the door for solid profitability over long term. High prices for beef at sales and to consumers offsets increase in production costs.
These solid returns are forecast to continue beyond 2023. And for the next 8 years to 2030, the industry leaders are anticipating the industry will grow by over 70%.
Smaller operators who are positioned to ramp up to exploit and participate in meeting market demand are looking for support to build larger herds – and this is where Green AGriVentures has found a lucrative and meaningful niche. Adding land ownership which increases in value as the herd does, brings in even more value to the already valuable enterprise.
Demand is exceeding supply across all sectors of regenerative and organic agri-foods markets: meats, poultry, veges, fruit, dairy, and value add products. Green Agriventures is increasing its involvement in grass-fed ethical beef markets which produces superior product and higher yields. The timing is ripe to support regenerative and organic farmers who can exploit and develop this market further with their existing infrastructure, equipment, and land.
Green Agriventures have established ethical relationships with experienced and passionate operators who share our vision to add value and impact through conversion to regenerative management. Emerging from what has been a challenging investment environment in many sectors, we offer opportunities with resilience that can lead because of the stable high demand and profitable growth markets we are aligned with. These can achieve 20-30+% pa returns and unmatched capital growth for investors with conservative risk.
We work directly with our farmers with strong relationships and opportunities. Green Agriventures brings resources to the operation and remains actively involved throughout the life of the project. Our farmers are committed to improve soil health, water quality and providing habitat to promote biodiversity in flora and fauna.
By improving the environment and economic performance of the agricultural land, we are expanding and strengthening local food projects that provide healthy food and economic opportunities. Practising regenerative farming, higher profits can be achieved by sharply reducing costs as well as producing superior products.
At Green Agriventures we start with the consumer end-market demand drivers – that’s you. We
work upstream to supply – that’s everyone else in the chain – processors, distributors & farmers. To underpin our mission to build food security and a great provenance story, we impact these areas.