News & Analysis

Interest from institutional investors and private equity remains strong in Australian agriculture despite difficult conditions because of a belief in the asset class’ ‘long-term thesis’.

The sale of Pinnacle Agriculture followed warnings from Moody’s that the company’s leverage threatened to bring about additional restructuring or distressed debt exchange.

The experience of London-based start-up Growing Underground and the previous excitement created by its predecessors, suggests institutional capital could enter the fray sooner rather than later.

The annualized return to the end of September 2019 was 14.37% but continuing drought means that income returns are especially likely to fall further in upcoming quarters.

Cofounder Steven Dring says the start-up expects to reach its target 'pretty soon' and is working on building out a new cohort of hydroponic farms with partners.

Harvard Management Company was forced to write off $1bn of 'deeply troubled assets' in 2017 but made investments totaling $100m in its last fiscal year.

NAB and Dairy Australia said continuing high input costs, exacerbated by drought, have led to a decline in production, with further falls expected this year.

AgFunder founding partner Rob Leclerc says his firm’s dedicated alternative protein fund has attracted incumbents from the meat and dairy space who see the fledgling market as ‘a hedge’.

As one of the few companies basing its business model on initiatives designed to re-imagine ag as a solution to climate change, the fortunes of Indigo Agriculture could prove to be a timely acid test.

Federation Asset Management says it will examine vertical farming and greenhouse assets as part of the sustainable infrastructure mandate for its Sustainable Australia Real Assets Fund.