Emerging Markets

Russia’s invasion raises short, medium and long-term questions that could cement a focus on regionalization and shorter supply chains in global agriculture.

At least one LP reports intention to divest from NCH Capital’s Russia and Ukraine-focused agribusiness investments as quickly as possible.

Founder Jay Koh says investors are beginning to focus more systematically on physical climate risk to particular sectors and markets.

The firm is working on two strategies – one for institutional investors that will target farmland and timberland assets, and one that will focus on corporates and their carbon offset needs.

Sustainable Fitch director David McNeil says offsets can help 'counteract some of the drivers of deforestation and provide incentives for local long-term management.'

Principal Jean-Philippe Syed says European retailers including Carrefour, Lidl and Aldi established multi-year relationships with North African producers following covid-19-related supply disruption last year.

Eventual opening to direct farmland ownership is by no means guaranteed, but signs of growing foreign participation are visible in a Ukrainian ag market facing regulatory and climatic change.

The UN body granted its firm direct loan to Nigerian impact enterprise Babban Gona, which has since received commitments worth $23m from other senior debt lenders.

The blended-finance impact vehicle was initiated by the UN and has made five investments with underlying commodities such as cocoa, hazelnuts and timber.

Debt commitment to ETG will allow the agricultural conglomerate to strengthen its food value chains which support more than 550,000 smallholder farmers in Africa alone.